锦富技术(300128) - 2018 Q3 - 季度财报

Part I Important Notice This section confirms the accuracy and completeness of the quarterly report and highlights the absence of non-standard audit opinions Board of Directors' Statement The company's Board of Directors, Supervisory Board, and senior management affirm the truthfulness, accuracy, and completeness of this quarterly report - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content[5] - All directors personally attended the Board meeting to review this quarterly report[6] - Company head Xiao Peng, chief accountant Deng Hao, and head of accounting department Sheng Chenglin declare and guarantee the truthfulness, accuracy, and completeness of the financial statements[6] Non-Standard Audit Opinion Disclosure The company has no non-standard audit opinions for this reporting period - The company has no non-standard audit opinions for this reporting period[7] Part II Company Profile This section provides an overview of the company's key financial data, indicators, and shareholder information I. Key Accounting Data and Financial Indicators The company experienced significant declines in revenue, net profit, and operating cash flow, with total assets growing but net assets attributable to shareholders decreasing Non-Recurring Gains and Losses Year-to-date, non-recurring gains and losses totaled 3.63 million yuan, primarily from asset disposal, government grants, and other non-operating income/expenses Year-to-Date Non-Recurring Gains and Losses | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 944,756.79 | | Government grants recognized in current profit or loss | 2,844,867.92 | | Other non-operating income and expenses apart from the above | 1,788,704.33 | | Less: Income tax impact | 1,348,965.11 | | Minority interest impact (after tax) | 600,115.86 | | Total | 3,629,248.07 | - The company did not classify non-recurring gains and losses as recurring gains and losses during the reporting period[11] Overview of Key Accounting Data and Financial Indicators | Indicator | Current Period End / Current Period | Change (%) (YoY / Period-end vs. Previous Year-end) | | :--- | :--- | :--- | | Total Assets | 4,185,527,623.43 yuan | 6.79% | | Net Assets Attributable to Shareholders of Listed Company | 2,006,089,606.11 yuan | -1.40% | | Operating Revenue (Current Period) | 558,164,022.46 yuan | -26.44% | | Operating Revenue (Year-to-Date) | 2,057,508,669.83 yuan | -0.47% | | Net Profit Attributable to Shareholders of Listed Company (Current Period) | -16,514,466.94 yuan | -186.06% | | Net Profit Attributable to Shareholders of Listed Company (Year-to-Date) | -15,247,432.60 yuan | -145.99% | | Net Cash Flow from Operating Activities (Year-to-Date) | -423,845,595.78 yuan | -381.62% | | Basic Earnings Per Share (Current Period) | -0.0151 yuan/share | -186.78% | | Basic Earnings Per Share (Year-to-Date) | -0.0139 yuan/share | -146.18% | - The company's share capital did not change due to new share issuance, additional issuance, rights issue, equity incentive exercise, or share repurchase, which would affect owner's equity, from the end of the reporting period to the disclosure date of the quarterly report[9] II. Total Shareholders and Top Ten Shareholders at Period End As of the reporting period end, the company had 28,810 common shareholders, with significant portions of top shareholders' holdings pledged - The total number of common shareholders at the end of the reporting period was 28,810, with no preferred shareholders whose voting rights have been restored[13] Top 10 Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held (shares) | Pledged or Frozen Status (shares) | | :--- | :--- | :--- | :--- | :--- | | Fu Guoping | Domestic Natural Person | 11.25% | 123,118,460 | Pledged 123,051,160 | | Shanghai Ruiwei Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 10.01% | 109,471,279 | Pledged 109,470,000 | | Yang Xiaowei | Domestic Natural Person | 8.39% | 91,845,000 | Pledged 91,844,637 | | Li Ji | Domestic Natural Person | 6.22% | 68,105,488 | Pledged 68,103,007 | | Huang Yafu | Domestic Natural Person | 2.60% | 28,465,919 | Pledged 24,636,785 | | Sun Haizhen | Domestic Natural Person | 2.23% | 24,385,846 | No Pledge or Freeze | | Yunnan International Trust Co., Ltd. - Yunnan Trust - Jinfu Technology Phase 2 Employee Stock Ownership Plan Collective Fund Trust Plan | Fund, Wealth Management Product, etc. | 2.21% | 24,232,330 | No Pledge or Freeze | | Li Lin | Domestic Natural Person | 2.17% | 23,716,430 | No Pledge or Freeze | | Wang Jianjun | Domestic Natural Person | 2.11% | 23,108,945 | No Pledge or Freeze | | National Social Security Fund 116 Portfolio | Fund, Wealth Management Product, etc. | 1.83% | 20,000,000 | No Pledge or Freeze | - Fu Guoping and Yang Xiaowei, a married couple, are the company's controlling shareholders and actual controllers, and they form a concerted action with Shanghai Ruiwei Investment Management Co., Ltd[14] 3. Changes in Restricted Shares Restricted shares totaled 28.40 million shares at period end, with changes due to executive lock-up and release of initial public offering restrictions Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released from Restriction in Current Period (shares) | Shares Increased in Restriction in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Huang Yafu | 29,121,373 | 29,121,373 | 28,398,730 | 28,398,730 | Executive Lock-up | | Chen Qixiang | 7,280,343 | 7,280,343 | 0 | 0 | -- | | Total | 36,401,716 | 36,401,716 | 28,398,730 | 28,398,730 | -- | - In June 2018, the company implemented its 2017 equity distribution plan, converting capital reserves into shares at a ratio of 3 shares for every 10 shares held, leading to a corresponding increase in shareholders' restricted shares[17] - Huang Yafu's initial public offering restricted shares were fully released on January 8, 2018, but 75% of his shares remain locked up due to his director status[17] Part III Significant Events This section details major changes in financial data, ongoing significant events, unfulfilled commitments, cash dividend policy, profit forecasts, and compliance I. Significant Changes and Reasons in Key Financial Data and Indicators The company experienced major shifts in its balance sheet, income statement, and cash flow, driven by increased borrowing, operational changes, and external factors Balance Sheet Item Changes Significant increases in accounts receivable, prepayments, fixed assets, and short-term borrowings, alongside changes in equity due to capital reserve transfers - Accounts receivable and notes at period end were 885 million yuan, an increase of 6.98% from the beginning of the period; accounts receivable notes increased by 81.89%, primarily due to an increase in customers settling with notes in the current period[20] - Prepayments at period end were 361 million yuan, an increase of 56.95% from the beginning of the period, mainly due to increased prepayments for outsourced manufacturing of new smart system products (Private Message Pass) and material procurement[20] - Fixed assets at period end were 617 million yuan, an increase of 34.67% from the beginning of the period, primarily due to the transfer of Nantong Qiyun IDC and Suzhou Jinfu Phase II factory construction in progress to fixed assets[20] - Short-term borrowings at period end were 1.11 billion yuan, an increase of 98.10% from the beginning of the period, mainly due to increased working capital demand and investment in long-term assets such as fixed assets[20] - Share capital at period end was 1.09 billion yuan, an increase of 30.00% from the beginning of the period, primarily due to the company's implementation of the 2017 equity distribution plan, converting capital reserves into shares at a ratio of 3 shares for every 10 shares held by all shareholders[20] Income Statement Item Changes Financial expenses and investment losses significantly impacted profitability, leading to a substantial decline in total profit - Financial expenses from year-beginning to period end were 40.77 million yuan, an increase of 170.23% compared to the same period last year, mainly due to increased interest expenses from higher borrowings and increased exchange losses in the current period[22] - Investment income from year-beginning to period end was -2.69 million yuan, a decrease of 1036.09% compared to the same period last year, mainly due to increased losses from associate companies accounted for under the equity method in the current reporting period[22] - Asset disposal income from year-beginning to period end was 961,247.61 yuan, a decrease of 96.66% compared to the same period last year, mainly due to the disposal of factory land in Dongguan in the prior year[22] - Total profit from year-beginning to period end was -28.74 million yuan, a decrease of 158.22% compared to the same period last year, mainly due to increased financial expenses and decreased asset disposal income in the current period[22] Cash Flow Statement Item Changes Operating cash flow saw a significant outflow due to prepayments and note settlements, while financing cash flow increased substantially from new borrowings - Net cash flow from operating activities from year-beginning to period end was -424 million yuan, a decrease of 381.62% compared to the same period last year, mainly due to increased prepayments for outsourced manufacturing of new smart system products (Private Message Pass) and a significant increase in the proportion of accounts receivable collected via notes, which had not yet matured for payment at period end[23] - Cash received from borrowings from year-beginning to period end was 1.11 billion yuan, an increase of 59.83% compared to the same period last year, mainly due to increased short-term borrowings in the current period[23] - Net cash flow from financing activities from year-beginning to period end was 457 million yuan, an increase of 1245.13% compared to the same period last year, mainly due to increased borrowings in the current period[23] - Impact of exchange rate changes on cash and cash equivalents from year-beginning to period end was 16.57 million yuan, an increase of 263.90% compared to the same period last year, mainly due to increased exchange gains in the current period[23] II. Progress, Impact, and Solutions for Significant Events Ongoing significant events include multiple lawsuits, strategic cooperation with JD.com, employee stock ownership plan status, termination of bond issuance, and a proposed change in controlling shareholder Litigation Matters The company is involved in several lawsuits, with varying stages of progress, including ongoing trials, appraisals, and collection challenges - The lawsuit of Dongguan Jinfu against Dongguan Sofitel for outstanding payments (involved amount 2.2964 million yuan) was filed in July 2018, heard on September 14, and is awaiting judgment[26] - The lawsuit of Xiamen Puteng against the company for product quality issues (involved amount 7.5489 million yuan) is currently undergoing appraisal, awaiting a second hearing[26] - The lawsuit of Dongguan Jinfu against Shenzhen Fuxiang for outstanding payments (involved amount 1.3070 million yuan) resulted in a first-instance victory, with the second-instance appeal rejected and the original judgment upheld, but there are currently no executable assets[26] Strategic Agreements A strategic cooperation with Beijing Zhihuichengxun Information Technology Co., Ltd. to establish JD.com offline smart retail stores has seen its first demonstration store enter trial operation - The strategic cooperation framework agreement between the company and Beijing Zhihuichengxun Information Technology Co., Ltd. (valid for three years from April 9, 2018) aims to establish JD.com offline smart retail stores[28] - As of the disclosure date of this report, the first demonstration store for JD.com offline smart retail, jointly developed by both parties, has entered trial operation[28] Other Significant Matters Key developments include the conclusion of the first employee stock ownership plan's lock-up, the ongoing lock-up of the second plan, termination of a bond issuance, and a proposed change in the controlling shareholder - The lock-up period for the company's first employee stock ownership plan ended on May 17, 2018, and the company will choose an opportune time to exit during its existence period[29] - The lock-up period for the company's second employee stock ownership plan is from January 16, 2018, to January 15, 2019, and is currently still within the lock-up period[29] - The company has terminated the non-public issuance of innovation and entrepreneurship corporate bonds, which was originally planned for no more than 1 billion yuan[29] - The company's actual controllers, Fu Guoping and Yang Xiaowei, intend to transfer shares via agreement to Taixing Zhicheng Industrial Investment Fund (Limited Partnership), which is expected to become the company's largest shareholder, with the transferee currently conducting due diligence on the listed company[29][30] - Mr. Huang Yafu and Mr. Li Lei, directors of the company, resigned from their positions as directors and members of special committees of the fourth Board of Directors due to personal reasons[30] III. Overdue Unfulfilled Commitments by Controlling Shareholders, Shareholders, Related Parties, Acquirers, and the Company There were no overdue unfulfilled commitments by controlling shareholders, shareholders, related parties, acquirers, or the company during the reporting period - The company had no overdue unfulfilled commitments during the reporting period[31] IV. Execution of Cash Dividend Policy During the Reporting Period The company's cash dividend policy was not applicable during the reporting period - The company's cash dividend policy was not applicable during the reporting period[31] V. Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Year-Ago Period The company forecasts a potential cumulative net profit loss for the next reporting period due to reduced solar business orders, increased data center depreciation, higher interest expenses, and potential goodwill impairment - Cumulative net profit from year-beginning to the end of the next reporting period is predicted to be a loss[31] - Reasons for the loss include: the "531 New Policy" for photovoltaics led to a significant reduction in solar business orders and an increased risk of related asset impairment losses[31] - Reasons for the loss include: Phase I of the wholly-owned subsidiary Nantong Qiyun Data Center project was transferred to fixed assets and depreciation was accrued, and if cabinet sales fall below expectations, losses will continue[31] - Reasons for the loss include: a significant increase in the company's borrowings during the year led to a substantial increase in interest expenses[31] - Reasons for the loss include: affected by factors such as the sluggish domestic and international economy, there may be a risk of goodwill impairment in the company's consolidated financial statements[31] VI. Irregular External Guarantees There were no irregular external guarantees by the company during the reporting period - The company had no irregular external guarantees during the reporting period[33] VII. Non-Operating Funds Occupied by Controlling Shareholders and Related Parties There were no non-operating funds occupied by controlling shareholders or their related parties from the listed company during the reporting period - The company had no non-operating funds occupied by controlling shareholders or their related parties during the reporting period[34] Part IV Financial Statements This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements 1. Consolidated Balance Sheet As of September 30, 2018, consolidated assets increased by 6.79% to 4.19 billion yuan, while short-term borrowings nearly doubled, and net assets attributable to the parent company slightly decreased Consolidated Balance Sheet Key Data (Period End) | Item | Period-end Balance (yuan) | Beginning-of-period Balance (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,185,527,623.43 | 3,919,511,947.72 | 6.79% | | Total Current Assets | 2,252,541,216.75 | 2,010,567,828.30 | 12.04% | | Total Non-Current Assets | 1,932,986,406.68 | 1,908,944,119.42 | 1.26% | | Total Liabilities | 2,057,061,763.25 | 1,761,995,869.39 | 16.75% | | Short-term Borrowings | 1,105,669,004.11 | 558,133,148.30 | 98.10% | | Total Owner's Equity Attributable to Parent Company | 2,006,089,606.11 | 2,034,674,700.82 | -1.40% | 2. Parent Company Balance Sheet As of September 30, 2018, parent company assets increased by 5.35% to 2.61 billion yuan, with short-term borrowings significantly rising and owner's equity slightly decreasing Parent Company Balance Sheet Key Data (Period End) | Item | Period-end Balance (yuan) | Beginning-of-period Balance (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,612,298,560.03 | 2,479,528,047.84 | 5.35% | | Total Current Assets | 1,032,971,575.43 | 898,815,891.65 | 14.92% | | Total Non-Current Assets | 1,579,326,984.60 | 1,580,712,156.19 | -0.09% | | Total Liabilities | 574,320,435.26 | 407,495,508.08 | 40.94% | | Short-term Borrowings | 339,044,240.95 | 179,634,877.94 | 88.74% | | Total Owner's Equity | 2,037,978,124.77 | 2,072,032,539.76 | -1.64% | 3. Consolidated Income Statement for the Current Period In Q3 2018, consolidated revenue decreased by 26.44% to 558.16 million yuan, and the company reported a net loss of 16.51 million yuan due to increased costs, financial expenses, and reduced investment income Consolidated Income Statement Key Data (Current Period) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 558,164,022.46 | 758,786,930.86 | -26.44% | | Total Operating Costs | 584,169,098.86 | 738,473,476.45 | -20.90% | | Financial Expenses | 16,801,106.72 | 4,918,623.34 | 241.61% | | Investment Income | -2,331,289.05 | -268,986.73 | -766.76% | | Total Profit | -27,434,331.40 | 30,754,116.17 | -189.20% | | Net Profit Attributable to Parent Company Owners | -16,514,466.94 | 19,189,738.65 | -186.06% | | Basic Earnings Per Share | -0.0151 | 0.0174 | -186.78% | 4. Parent Company Income Statement for the Current Period In Q3 2018, parent company revenue increased by 33.49% to 96.58 million yuan, but a significant rise in financial expenses and negative investment income led to a net loss of 8.85 million yuan Parent Company Income Statement Key Data (Current Period) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 96,584,774.65 | 72,356,619.95 | 33.49% | | Financial Expenses | 1,645,689.53 | 620,709.97 | 165.14% | | Investment Income | -1,405,756.08 | 83,034,310.74 | -1016.32% | | Total Profit | -11,031,486.97 | 71,953,941.02 | -115.33% | | Net Profit | -8,845,543.90 | 73,234,149.03 | -112.08% | | Basic Earnings Per Share | -0.0081 | 0.0665 | -112.18% | 5. Consolidated Income Statement from Year-Beginning to Period End Year-to-date, consolidated revenue slightly decreased by 0.47% to 2.06 billion yuan, but a substantial increase in financial expenses and a sharp decline in investment income resulted in a net loss of 15.25 million yuan Consolidated Income Statement Key Data (Year-Beginning to Period End) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,057,508,669.83 | 2,067,321,624.51 | -0.47% | | Financial Expenses | 40,767,645.06 | 15,086,302.82 | 170.23% | | Investment Income | -2,689,095.51 | -236,697.87 | -1036.09% | | Asset Disposal Income | 961,247.61 | 28,771,342.54 | -96.66% | | Total Profit | -28,735,196.01 | 49,355,690.11 | -158.22% | | Net Profit Attributable to Parent Company Owners | -15,247,432.60 | 33,154,353.51 | -145.99% | | Basic Earnings Per Share | -0.0139 | 0.0301 | -146.18% | 6. Parent Company Income Statement from Year-Beginning to Period End Year-to-date, parent company revenue increased by 20.28% to 235.29 million yuan, but negative impacts from financial expenses and investment income led to a net loss of 25.64 million yuan Parent Company Income Statement Key Data (Year-Beginning to Period End) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 235,289,476.29 | 195,629,300.03 | 20.28% | | Financial Expenses | 5,936,144.61 | 4,927,787.59 | 20.46% | | Investment Income | -509,003.85 | 142,387,905.42 | -100.36% | | Total Profit | -33,348,080.38 | 105,723,293.76 | -131.54% | | Net Profit | -25,638,792.56 | 111,068,289.19 | -123.08% | | Basic Earnings Per Share | -0.0234 | 0.1009 | -123.20% | 7. Consolidated Cash Flow Statement from Year-Beginning to Period End Year-to-date, consolidated operating cash flow showed a significant outflow of 423.85 million yuan, while financing cash flow substantially increased by 1245.13% due to new borrowings Consolidated Cash Flow Statement Key Data (Year-Beginning to Period End) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -423,845,595.78 | -88,004,588.18 | -381.62% | | Net Cash Flow from Investing Activities | -79,063,111.36 | -64,343,687.22 | -22.88% | | Net Cash Flow from Financing Activities | 457,486,153.25 | 34,010,458.06 | 1245.13% | | Net Increase in Cash and Cash Equivalents | -28,854,215.22 | -128,446,599.93 | 77.55% | 8. Parent Company Cash Flow Statement from Year-Beginning to Period End Year-to-date, parent company operating cash flow showed a significant outflow of 304.79 million yuan, while both investing and financing cash flows saw substantial inflows Parent Company Cash Flow Statement Key Data (Year-Beginning to Period End) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -304,788,176.16 | -73,192,473.32 | -316.47% | | Net Cash Flow from Investing Activities | 114,668,638.58 | 46,367,732.52 | 147.33% | | Net Cash Flow from Financing Activities | 142,738,790.85 | 68,001,320.51 | 109.90% | | Net Increase in Cash and Cash Equivalents | -45,297,890.64 | 39,306,987.86 | -215.24% | II. Audit Report The company's 2018 third-quarter report is unaudited - The company's third-quarter report is unaudited[67]