慈星股份(300307) - 2018 Q3 - 季度财报

Important Notice This section confirms the accuracy and completeness of the quarterly report by the board, supervisors, and senior management Statement by the Board of Directors and Senior Management The company's board, supervisory board, and all senior executives guarantee the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility for its content - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report and assume corresponding legal responsibilities[4] - Sun Pingfan, the company's head, Zou Jinzhou, the person in charge of accounting, and Dong Yunyan, the head of the accounting department, declare that the financial statements in the quarterly report are true, accurate, and complete[5] - Director Sun Rongfei, due to a business trip, could not personally attend the board meeting to review this quarterly report and authorized Sun Pingfan to attend on his behalf[6] Company Profile This section provides an overview of the company's key financial data, indicators, and shareholder information for the reporting period Key Accounting Data and Financial Indicators In the first three quarters of 2018, the company's operating revenue increased by 31.18%, but net profit attributable to shareholders decreased by 24.67%, with a 95.98% drop in net cash flow from operating activities Key Financial Indicators for Q3 2018 | Indicator | Year-to-Date as of Report Period End | Year-to-Date Change vs. Prior Year (%) | | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,387,122,485.61 | 31.18% | | Net Profit Attributable to Shareholders (CNY) | 153,444,579.20 | -24.67% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (CNY) | 79,946,918.34 | -36.39% | | Net Cash Flow from Operating Activities (CNY) | 6,203,290.76 | -95.98% | | Basic Earnings Per Share (CNY/share) | 0.19 | -24.00% | | Weighted Average Return on Net Assets | 3.78% | -1.35% | Non-Recurring Gains and Losses for the First Three Quarters of 2018 | Item | Year-to-Date Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 37,505,862.40 | | Government Grants | 12,297,078.98 | | Fair Value Changes of Trading Financial Assets/Liabilities and Investment Income | 32,771,855.51 | | Other Non-Operating Income and Expenses | 1,952,632.78 | | Less: Income Tax Impact | 10,549,177.65 | | Less: Impact on Minority Interests (After Tax) | 480,591.16 | | Total | 73,502,660.86 | Shareholder Information As of the end of the reporting period, the company had 42,298 common shareholders, with major shareholders Ningbo Yuren Investment and Yuren Enterprise holding significant stakes, some of which are pledged - As of the end of the reporting period, the company had a total of 42,298 common shareholders[12] Top Ten Shareholders' Shareholding Information | Shareholder Name | Shareholding Percentage | Number of Shares Held | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | | Ningbo Yuren Investment Co., Ltd. | 30.24% | 242,485,016 | Pledged 30,000,000 | | Yuren Enterprise Co., Ltd. | 25.74% | 206,464,996 | Pledged 90,000,000 | | Ningbo Chuangfu Investment Partnership (Limited Partnership) | 3.67% | 29,402,806 | - | | Ningbo Fuyu Investment Partnership (Limited Partnership) | 2.12% | 16,999,972 | - | | Sun Pingfan | 1.46% | 11,700,056 | - | | Ningbo Cixing Co., Ltd. - First Employee Stock Ownership Plan | 0.82% | 6,600,000 | - | | Ningbo Cixing Co., Ltd. - Second Employee Stock Ownership Plan | 0.72% | 5,750,000 | - | - Controlling shareholder Ningbo Yuren Investment Co., Ltd., shareholder Yuren Enterprise Co., Ltd., and several other shareholders (Ningbo Chuangfu, Ningbo Fuyu, Ningbo Pingfang) have associated relationships or act in concert[13] Significant Events This section details major changes in financial data and indicators, along with the fulfillment of commitments by the company and related parties Significant Changes in Key Financial Data and Their Reasons The company experienced significant changes in financial metrics, including a 57.29% increase in accounts receivable due to higher sales, a 190.53% surge in investment income from a subsidiary transfer, and a 95.98% drop in operating cash flow Significant Changes in Balance Sheet Items | Item | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | 48.64% | Decrease in investment in bank wealth management products | | Notes and Accounts Receivable | 57.29% | Increase in accounts receivable from customers due to higher sales | | Prepayments | 182.68% | Increase in prepayments for raw material purchases and various expenses | | Other Current Assets | -30.62% | Maturity and recovery of bank wealth management products | | Other Comprehensive Income | 300.64% | Significant foreign exchange rate fluctuations leading to larger foreign currency translation amounts | Significant Changes in Income Statement Items | Item | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 31.18% | Increase in sales volume of shoe upper knitting machines | | Operating Cost | 47.61% | Increase in costs corresponding to higher sales volume | | Selling Expenses | 43.00% | Increase in commissions, freight, and after-sales personnel salaries due to higher sales volume | | Investment Income | 190.53% | Transfer of equity in subsidiary Suzhou Dingna | | Gains on Asset Disposal | -99.40% | Transfer of industrial land and factory buildings in the prior period, no such item in current period | | Other Income | 117.59% | Increase in government grants received | Significant Changes in Cash Flow Statement Items | Item | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -95.98% | Decrease in cash received from goods sold and increase in employee wages, taxes, and various expenses paid | | Net Cash Flow from Investing Activities | 145.95% | Increase in amounts recovered from wealth management products | | Net Cash Flow from Financing Activities | -283.88% | Decrease in bank borrowings and increase in cash dividends distributed | Fulfillment of Commitments The company and related parties, including employee stock ownership plans and the controlling shareholder, strictly fulfilled all commitments during the reporting period, with no overdue unfulfilled commitments - The company's first and second employee stock ownership plans strictly fulfilled their commitments regarding share reduction and lock-up during the reporting period[17] - The company's controlling shareholder and actual controller strictly fulfilled their commitment to avoid horizontal competition during the reporting period[18] - The company confirms that all commitments have been fulfilled on time[19] Financial Statements This section presents the company's consolidated balance sheet, income statements, and cash flow statement for the reporting period Consolidated Balance Sheet As of September 30, 2018, the company's total assets were 5.34 billion CNY, a 2.11% increase from the beginning of the year, with a stable asset-liability structure Consolidated Balance Sheet Summary (September 30, 2018) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Assets | | | | Total Current Assets | 3,209,571,088.38 | 3,101,140,490.35 | | Total Non-Current Assets | 2,126,529,880.20 | 2,124,947,834.52 | | Total Assets | 5,336,100,968.58 | 5,226,088,324.87 | | Liabilities and Owners' Equity | | | | Total Current Liabilities | 977,528,945.80 | 882,017,401.13 | | Total Non-Current Liabilities | 270,541,021.10 | 271,129,623.69 | | Total Liabilities | 1,248,069,966.90 | 1,153,147,024.82 | | Total Owners' Equity Attributable to Parent Company | 4,064,490,572.74 | 4,053,097,941.19 | | Total Liabilities and Owners' Equity | 5,336,100,968.58 | 5,226,088,324.87 | Consolidated Income Statement (Q3) In Q3 2018, the company's total operating revenue grew by 19.24% to 385.37 million CNY, but operating profit declined by 41.48% to 19.60 million CNY, resulting in a 35.52% decrease in net profit attributable to the parent Consolidated Income Statement Summary (Q3 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 385,370,673.44 | 323,175,688.14 | | II. Total Operating Costs | 374,334,450.37 | 297,045,336.63 | | III. Operating Profit | 19,597,506.06 | 33,489,927.52 | | IV. Total Profit | 20,061,056.26 | 33,308,063.25 | | Net Profit Attributable to Parent Company Owners | 19,771,117.09 | 30,661,851.21 | Consolidated Income Statement (Year-to-Date) For the first three quarters of 2018, total operating revenue reached 1.39 billion CNY, up 31.18%, but operating profit decreased by 25.27% due to a 47.61% increase in operating costs, leading to a 24.67% drop in net profit attributable to the parent Consolidated Income Statement Summary (First Three Quarters of 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 1,387,122,485.61 | 1,057,397,292.26 | | II. Total Operating Costs | 1,301,282,922.24 | 929,568,057.83 | | III. Operating Profit | 167,030,804.69 | 223,524,440.18 | | IV. Total Profit | 168,987,711.82 | 225,473,312.62 | | Net Profit Attributable to Parent Company Owners | 153,444,579.20 | 203,696,064.82 | Consolidated Cash Flow Statement (Year-to-Date) For the first three quarters of 2018, net cash flow from operating activities significantly decreased by 95.98% to 6.20 million CNY, while investing activities turned positive due to recovered wealth management products, and financing activities saw a net outflow Consolidated Cash Flow Statement Summary (First Three Quarters of 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 6,203,290.76 | 154,393,094.15 | | Net Cash Flow from Investing Activities | 132,267,161.63 | -287,855,772.78 | | Net Cash Flow from Financing Activities | -149,157,230.98 | 81,118,370.84 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 20,970,510.57 | -4,216,057.12 | | Net Increase in Cash and Cash Equivalents | 10,283,731.98 | -56,560,364.91 | Audit Opinion The company's 2018 third-quarter report is unaudited - The company's third-quarter report for 2018 is unaudited[55]