LSHEC(SH:603169)2016-10-27 16:00Financial Performance - Operating revenue for the first nine months dropped by 40.77% to CNY 1,235,607,721.07 year-on-year[7] - Net profit attributable to shareholders fell by 96.32% to CNY 24,358,294.42 compared to the same period last year[7] - Basic earnings per share decreased by 96.60% to CNY 0.0238[7] - The weighted average return on net assets decreased by 98.07 percentage points to 0.79%[7] - The company reported a profit from operating activities of CNY 22,736,696.12 for the first three quarters, a significant decrease from CNY 778,219,533.95 in the previous year[39] - The company reported a gross profit margin of approximately 0.1% for the third quarter of 2016, compared to 1.5% in the same quarter of the previous year[39] - Total operating revenue for the first three quarters of 2016 was CNY 1,235,607,721.07, a decrease of 40.9% compared to CNY 2,086,136,517.42 in the same period last year[38] - Net profit attributable to shareholders for the first three quarters of 2016 was CNY 24,358,294.42, down 63.3% from CNY 662,165,059.99 in the previous year[39] Cash Flow and Assets - The net cash flow from operating activities for the first nine months was negative at CNY -401,906,115.66, a decline of 1,032.44% year-on-year[7] - Cash and cash equivalents decreased by 76.45% to ¥396,714,260.17 from ¥1,684,852,085.68 due to early repayment of bank loans and dividend payments[15] - Cash flow from operating activities worsened by 1032.44% to -¥401,906,115.66 from -¥35,490,323.64, mainly due to increased EPC project orders and procurement[16] - Cash flow from financing activities decreased by 192.51% to -¥483,970,494.31 from ¥523,166,523.04, reflecting increased dividend distribution and loan repayments[16] - The company reported a total cash outflow of CNY 1,884,559,010.53 from operating activities, which is a substantial increase from CNY 988,106,396.6 in the previous year, representing an increase of approximately 91%[50] - The ending balance of cash and cash equivalents was CNY 151,895,955.54, a decrease from CNY 280,573,766.72 at the end of the same period last year, representing a decline of about 46%[51] Shareholder Information - The company had a total of 66,664 shareholders at the end of the reporting period[11] - The largest shareholder, Lanzhou Lanshi Group Co., Ltd., held 53.22% of the shares, with 235 million shares pledged[11] - Lanzhou Lanshi Heavy Equipment Co., Ltd. committed to not transferring or entrusting the management of its shares for 36 months post-listing, with a lock-up period of 34,946.5260 shares[19] - The controlling shareholder, Lanshi Group, will not reduce its holdings by more than 10% of the total share capital within two years after the lock-up period expires[20] - Gansu Guotou committed to a maximum annual reduction of 10% of its shares within two years after the lock-up period ends, with a minimum selling price not lower than the IPO price[21] Operational Changes and Commitments - The company has committed to not engaging in competitive businesses with its parent company, ensuring operational independence[18] - The company plans to continue significant investments in new projects, including nuclear equipment manufacturing facilities and energy engineering projects[16] - The company has established an independent foreign trade department to handle its import needs, effective from August 1, 2016[21] - The company has completed the commitment to not accept import agency and related foreign trade business from Lanzhou Lanshi Heavy Equipment after establishing its own foreign trade capabilities[21] - Lanshi Group will bear all legal responsibilities for any financial losses incurred by Lanzhou Lanshi Heavy Equipment due to fund occupation by its affiliates[20] - The company has implemented a strict compliance policy with the Company Law and Securities Law of the People's Republic of China to protect the rights of minority shareholders[19] Changes in Assets and Liabilities - Total assets decreased by 11.17% to CNY 6,964,870,439.22 compared to the end of the previous year[7] - The company's current assets totaled RMB 4.25 billion, down from RMB 5.35 billion at the beginning of the year, indicating a decline of approximately 20.5%[27] - The company's total equity as of September 30, 2016, was RMB 3.04 billion, down from RMB 3.12 billion at the beginning of the year, a decrease of about 2.5%[30] - Current liabilities decreased to RMB 3.52 billion from RMB 4.27 billion, a reduction of approximately 17.5%[29] - The company’s total liabilities decreased to CNY 2,870,271,081.65 from CNY 3,610,110,037.95, a reduction of 20.5% year-over-year[35] Investment and Financing Activities - The company raised approximately RMB 1.25 billion through a private placement of 79,567,154 shares at a price of RMB 15.71 per share in December 2015[22] - The company raised ¥1,649,500,000 through financing activities in the first nine months of 2016, compared to ¥1,737,581,210.80 in the previous year[49] - Cash inflow from financing activities was CNY 1,179,500,000, slightly down from CNY 1,332,000,000 in the previous year, reflecting a decrease of approximately 11%[51]