LSHEC(SH:603169)2018-10-26 16:00Financial Performance - Net profit attributable to shareholders decreased by 1,105.65% to a loss of CNY 160,698,073.62 compared to the same period last year[7] - The company faced a decline in gross profit margin due to industry overcapacity and irrational price competition[7] - The company expects a significant decline in revenue for 2018 compared to 2017, primarily due to slow project progress and increased material costs[16] - Total operating revenue for Q3 2018 was approximately $796.05 million, a decrease of 2.1% compared to $820.23 million in Q3 2017[30] - Net profit for Q3 2018 was a loss of approximately $106.04 million, compared to a profit of $3.77 million in Q3 2017, indicating a significant decline in profitability[31] - The company reported a total loss of approximately $142.10 million for the first nine months of 2018, compared to a profit of $15.98 million in the same period of 2017[32] - Basic earnings per share for Q3 2018 was -0.1070 yuan, compared to 0.0037 yuan in Q3 2017, indicating a negative shift in earnings performance[32] - The company reported a total comprehensive loss of approximately $106.04 million for Q3 2018, compared to a comprehensive income of $3.77 million in Q3 2017[32] Revenue and Costs - Operating revenue increased by 0.89% to CNY 2,160,249,995.12 year-to-date[7] - Total operating costs increased to approximately $905.37 million in Q3 2018, up 10.1% from $822.45 million in Q3 2017[30] - The cost of sales for Q3 2018 was approximately ¥702.41 million, slightly down from ¥729.06 million in Q3 2017[35] Assets and Liabilities - Total assets increased by 8.87% to CNY 11,873,907,074.69 compared to the end of the previous year[7] - The total liabilities increased by 45.00% to 3,113,514,038.55 RMB due to increased financing through bills and higher operational funding needs[16] - The company's total liabilities reached CNY 8,603,213,772.52, up from CNY 7,478,569,210.35, marking an increase of around 15.1%[22] - Current liabilities rose to CNY 7,764,099,281.94 from CNY 6,836,782,972.38, an increase of about 13.6%[21] - Non-current liabilities increased to CNY 839,114,490.58 from CNY 641,786,237.97, reflecting a growth of approximately 30.7%[22] Cash Flow - Cash flow from operating activities improved by 60.82%, resulting in a net outflow of CNY 370,047,226.53[7] - The company's operating cash flow net amount for the first nine months of 2018 was -370,047,226.53 RMB, an improvement of 60.82% compared to -944,516,646.43 RMB in the same period last year[16] - Cash inflow from operating activities totaled 1,786,767,503.49 RMB, compared to 1,676,426,735.89 RMB in the previous year[43] - The net cash flow from operating activities for the first nine months was -505,113,324.00 RMB, an improvement from -1,155,144,175.65 RMB in the same period last year[43] - Cash flow from financing activities decreased by 88.57% to 94,625,880.68 RMB, mainly due to loan repayments and interest payments[16] Investments and Expenses - Research and development expenses surged by 105.40% to 21,854,001.96 RMB, primarily due to the R&D costs of the newly acquired subsidiary, Ruize Petrochemical[15] - The financial expenses increased significantly to approximately ¥127.25 million for the first nine months, up from ¥68.99 million in the previous year, primarily due to increased interest expenses[35] - The company incurred financial expenses of approximately $64.83 million in Q3 2018, significantly higher than $23.34 million in Q3 2017, indicating increased borrowing costs[30] Shareholder Information - The number of shareholders reached 52,583, with the largest shareholder holding 54.59% of the shares[10] - The total equity attributable to shareholders decreased to CNY 3,116,421,327.33 from CNY 3,285,965,448.19, a decline of about 5.1%[22] Future Outlook - The company has not provided specific guidance for future performance, indicating uncertainty in market conditions and operational challenges[36]