恒信东方(300081) - 2018 Q3 - 季度财报

Section I Important Notice Important Notice Statement The Board of Directors, Supervisory Board, and senior management affirm the quarterly report's truthfulness, accuracy, and completeness, assuming legal responsibility - The Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[3] - Company's principal, Meng Xianmin, chief financial officer, Chen Wei, and head of accounting department, Wang Linhai, declare that the financial statements in the quarterly report are true, accurate, and complete[4] Section II Company Profile I. Key Accounting Data and Financial Indicators Total assets and net assets attributable to shareholders increased, with significant growth in revenue and net profit, largely due to investment income from the acquisition of Anhui Saida Key Accounting Data and Financial Indicators | Indicator | Period-End/Year-to-Date (CNY) | Prior Year-End/Prior Year-to-Date (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Balance Sheet (Period-End): | | | | | Total Assets | 2,755,270,316.16 | 2,361,675,636.33 | 16.67% | | Net Assets Attributable to Listed Company Shareholders | 2,443,077,529.02 | 2,256,213,858.46 | 8.28% | | Income Statement (Year-to-Date): | | | | | Operating Revenue | 484,916,388.68 | 284,928,578.80 | 70.19% | | Net Profit Attributable to Listed Company Shareholders | 206,112,356.43 | 78,687,479.73 | 161.94% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | 103,764,428.81 | 32,300,000.00 (Estimated) | 221.18% | | Net Cash Flow from Operating Activities | -86,467,470.55 | -59,154,991.60 | -46.17% | | Basic Earnings Per Share (CNY/share) | 0.39 | 0.16 | 143.75% | | Weighted Average Return on Net Assets | 8.76% | 4.34% (Estimated) | 4.42% | Non-Recurring Gains and Losses from Year-Beginning to Period-End | Item | Year-to-Date Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -200,910.99 | | | Government Grants Recognized in Current Profit/Loss | 2,214,160.25 | Primarily tax refunds and Guangzhou service trade demonstration subsidies | | Enterprise Restructuring Expenses | -14,850,857.39 | Primarily resettlement expenses and cleanup losses | | Other Non-Operating Income and Expenses | -72,283.46 | Primarily liquidated damages expenses | | Other Non-Recurring Gains and Losses | 115,658,318.56 | Primarily investment income from the re-measurement of the original long-term equity investment's fair value due to the non-same-control acquisition of Anhui Saida | | Less: Income Tax Impact | 384,058.63 | | | Minority Interest Impact (After Tax) | 16,440.72 | | | Total | 102,347,927.62 | -- | II. Total Shareholders at Period End and Top Ten Shareholders' Holdings As of the period end, the company had 529,657,876 common shares, with the largest shareholder, Meng Xianmin, holding 27.43% of shares, mostly pledged - The total number of common shareholders at the end of the reporting period was 529,657,876 shares, with no preferred shareholders whose voting rights have been restored[11] Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledge or Freeze Status (Status/Number of Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Meng Xianmin | Domestic Natural Person | 27.43% | 145,272,966 | 108,954,724 | Pledged 89,130,000 | | Wang Bing | Domestic Natural Person | 6.85% | 36,278,366 | 36,278,366 | Pledged 27,950,000 | | Pei Jun | Domestic Natural Person | 3.53% | 18,670,810 | 14,003,107 | Pledged 6,060,000 | | China Merchants Bank Co., Ltd. - Jiutai Jiuli Flexible Allocation Mixed Securities Investment Fund | Other | 3.37% | 17,826,086 | 0 | | | Xiamen Rongxinbo Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3.17% | 16,776,123 | 16,776,123 | Pledged 6,070,200 | | Shenyang Zhengli Investment Co., Ltd. | State-Owned Legal Person | 2.69% | 14,255,167 | 0 | | | Ningbo Meishan Bonded Port Area Dongli Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.66% | 14,112,615 | 0 | | | Golden Eagle Fund - ICBC - Wanxiang Trust - Wanxiang Trust - Xingchen No. 50 Single Fund Trust for Business Management | Other | 2.33% | 12,323,595 | 0 | | | Zhou Jie | Domestic Natural Person | 1.99% | 10,525,030 | 0 | | | Industrial and Commercial Bank of China Co., Ltd. - CCB Preferred Growth Mixed Securities Investment Fund | Other | 1.55% | 8,220,213 | 0 | | - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[12] III. Changes in Restricted Shares During the period, several institutional shareholders' non-publicly issued shares became unrestricted, totaling 71,233,934 shares, while a former executive's restricted shares increased due to resignation Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Beginning (shares) | Shares Unrestricted This Period (shares) | Shares Added to Restriction This Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | Proposed Unrestriction Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Caitong Fund Management Co., Ltd. | 12,045,616 | 12,045,616 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Golden Eagle Fund Management Co., Ltd. | 12,323,595 | 12,323,595 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Shenyang Zhengli Investment Co., Ltd. | 14,255,167 | 14,255,167 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Jiutai Fund Management Co., Ltd. | 17,826,086 | 17,826,086 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Ningbo Meishan Bonded Port Area Dongli Investment | 14,112,615 | 14,112,615 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Duan Zhaodong | 2,012,561 | 670,855 | 670,855 | 2,012,561 | Executive resignation | August 1, 2018 | | Total | 72,575,640 | 71,233,934 | 670,855 | 2,012,561 | -- | -- | Section III Significant Events I. Significant Changes and Reasons in Key Financial Data and Indicators for the Reporting Period Multiple balance sheet, income statement, and cash flow items experienced significant changes due to acquisitions, business expansion, and shifts in funding strategies 1. Significant Changes and Reasons in Balance Sheet Items Key balance sheet items, including cash, receivables, inventory, and goodwill, saw substantial changes driven by investment activities, acquisitions, and business growth Significant Changes in Balance Sheet Items | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 716,251,636.26 | 1,241,160,676.40 | -42.29% | Primarily due to significant investment expenditures in the current reporting period | | Notes and Accounts Receivable | 325,225,650.92 | 111,126,228.12 | 192.66% | Primarily due to a significant increase in accounts receivable from the non-same-control acquisition of Anhui Saida, and an increase in accounts receivable as the business scale of wholly-owned subsidiary Oriental DreamWorks Cultural Industry Investment Co., Ltd. expanded | | Prepayments | 99,107,701.71 | 49,277,742.49 | 101.12% | Primarily due to the expansion of Oriental DreamWorks and its subsidiaries' business scale, leading to increased operating costs and prepayments due to delayed invoice settlement | | Other Receivables | 44,536,947.08 | 98,384,157.75 | -54.73% | Primarily due to the recovery of performance compensation from Zhou Jie, the original shareholder of Anhui Saida Technology Co., Ltd. in the current period | | Inventories | 242,000,446.29 | 137,198,861.46 | 76.39% | Primarily due to a significant increase in inventories from the non-same-control acquisition of Anhui Saida in the current reporting period, and a corresponding increase in inventories with the development of the company's business scale | | Other Current Assets | 14,919,050.16 | 7,217,939.25 | 106.69% | Primarily due to Oriental DreamWorks, Beijing Huakai Film and Television Production Co., Ltd., and Hengxin Oriental Children (Guangzhou) Cultural Industry Development Co., Ltd. being recognized as animation enterprises in 2017, allowing them to enjoy corporate income tax exemption under animation enterprise tax preferential policies, leading to the reversal of corporate income tax provisioned in 2017 | | Available-for-Sale Financial Assets | 207,432,967.28 | 109,496,620.28 | 89.44% | Primarily due to increased external investments by the company in the current reporting period | | Intangible Assets | 53,593,572.92 | 39,574,635.88 | 35.42% | Primarily due to the purchase of a significant amount of copyrights in the current reporting period, increasing intangible assets | | Development Expenditures | 35,073,890.90 | 7,391,454.14 | 374.52% | Primarily due to increased R&D investment in the company's fundraising projects - "VR Film and Television Promotion Platform" and "Family Entertainment Platform" in the current reporting period | | Goodwill | 470,632,207.59 | 35,317,662.58 | 1,232.57% | Primarily due to significant goodwill generated from the non-same-control acquisitions of Anhui Saida and Hangzhou Xiayi Cultural Creative Co., Ltd. in the current reporting period | | Long-Term Deferred Expenses | 58,741,423.36 | 40,248,073.25 | 45.95% | Primarily due to a significant increase in long-term deferred expenses from the non-same-control acquisition of Anhui Saida in the current reporting period, and increased long-term deferred expenses from new children's venue renovations | | Other Non-Current Assets | 30,000,000.00 | - | 100% | Primarily due to the equity investment in Zhongke Beiying (Beijing) Technology Media Co., Ltd. not yet completing industrial and commercial change procedures, temporarily listed under other non-current assets | | Short-Term Borrowings | 179,450,000.00 | 30,000,000.00 | 498.17% | Primarily due to the company increasing short-term loans based on funding arrangements | | Notes and Accounts Payable | 82,717,745.66 | 33,620,025.88 | 146.04% | Primarily due to the expansion of Oriental DreamWorks' business scale, leading to a corresponding increase in accounts payable | | Advances from Customers | 9,452,469.41 | 5,359,207.42 | 76.38% | Primarily due to the increased business scale of wholly-owned sub-subsidiary Hengxin Oriental Children, leading to a corresponding increase in advances from customers | | Taxes Payable | 10,331,707.18 | 16,010,356.15 | -35.47% | Primarily due to Oriental DreamWorks, Huakai Film and Television, and Hengxin Oriental Children being recognized as animation enterprises in 2017, allowing them to enjoy corporate income tax exemption under animation enterprise tax preferential policies, leading to the reversal of corporate income tax provisioned in 2017 | | Deferred Income | - | 58,333.21 | -100.00% | Primarily due to deferred income being transferred to current profit/loss periodically in accordance with Accounting Standards for Business Enterprises | | Minority Interests | 18,602,698.36 | 8,301,092.42 | 124.10% | Primarily due to minority shareholder contributions and increased minority interests from the non-same-control acquisition of Xiayi Culture in the current reporting period | 2. Significant Changes and Reasons in Income Statement Items Operating revenue, cost, and investment income significantly increased, primarily due to business growth and the acquisition of Anhui Saida, while asset impairment losses decreased Significant Changes in Income Statement Items (Jan-Sep 2018 vs Jan-Sep 2017) | Item | Jan-Sep 2018 (CNY) | Jan-Sep 2017 (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 484,916,388.68 | 284,928,578.80 | 70.19% | Primarily due to the continued growth of Oriental DreamWorks' business in the current reporting period, and increased operating revenue from the non-same-control acquisition of Anhui Saida | | Operating Cost | 298,287,476.49 | 161,341,576.94 | 84.88% | Primarily due to the continued growth of Oriental DreamWorks' business in the current reporting period, leading to a corresponding increase in costs with revenue growth, and increased operating costs from the non-same-control acquisition of Anhui Saida | | Administrative Expenses | 73,451,128.32 | 46,635,232.02 | 57.50% | Primarily due to increased recognition of share-based payment expenses and employee severance compensation in the current period compared to the prior year | | Financial Expenses | -6,015,395.67 | -4,089,615.15 | 47.09% | Primarily due to increased interest income in the current reporting period compared to the prior year | | Asset Impairment Losses | 183,954.41 | 7,635,859.02 | -97.59% | Primarily due to a shortened overall aging of accounts and inventory in the current reporting period, leading to a significant decrease in asset impairment losses | | Other Income | 2,687,927.43 | 1,615,299.22 | 66.40% | Primarily due to increased software tax refunds from the non-same-control acquisition of Anhui Saida in the current reporting period compared to the prior year | | Investment Income | 130,115,669.70 | 80,808,361.54 | 61.02% | Primarily due to significant investment income generated from the re-measurement of the original equity's fair value during the non-same-control acquisition of Anhui Saida in the current reporting period | | Gains/Losses on Asset Disposal | -200,910.99 | -5,465,561.57 | -96.32% | Primarily due to the disposal of a batch of intangible assets related to businesses planned for contraction in the prior period | | Non-Operating Income | 3,154,368.06 | 319,232.11 | 888.11% | Primarily due to the non-same-control acquisition of Anhui Saida in the current period, which had a higher amount of tax refunds | | Non-Operating Expenses | 451,923.59 | 4,933,302.00 | -90.84% | Primarily due to monetary and inventory donations for public welfare in the prior period | | Income Tax Expense | 4,099,457.71 | 12,920,493.02 | -68.27% | Primarily due to Oriental DreamWorks, Huakai Film and Television, and Hengxin Oriental Children being recognized as animation enterprises in 2017, allowing them to enjoy corporate income tax exemption under animation enterprise tax preferential policies, leading to the reversal of corporate income tax provisioned in 2017 | 3. Significant Changes and Reasons in Cash Flow Statement Items Operating cash outflow increased due to business expansion and longer collection cycles, while investment cash outflow surged from acquisitions and increased financial investments Significant Changes in Cash Flow Statement Items (Jan-Sep 2018 vs Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 392,567,742.96 | 263,775,047.23 | 48.83% | Primarily due to the expansion of the company's business scale, cash received from sales of goods and services increased correspondingly with the increase in revenue compared to the prior year | | Cash Received from Interest, Fees, and Commissions | 16,729,375.65 | 10,735,764.12 | 55.83% | Primarily due to increased interest income from the company's pawn business in the current reporting period | | Tax Refunds Received | 8,671,816.75 | 2,070,128.21 | 318.90% | Primarily due to increased software tax refunds and other tax refunds from the newly acquired subsidiary Anhui Saida in the current period | | Other Cash Received Related to Operating Activities | 184,740,228.19 | 335,181,936.89 | -44.88% | Primarily due to a decrease in "real-time deduction" business in traditional operations during the reporting period | | Cash Paid for Goods and Services | 402,361,312.06 | 208,745,280.83 | 92.75% | Primarily due to the expansion of the company's business scale, cash paid for purchases increased correspondingly with the increase in cash received from sales compared to the prior year | | Taxes Paid | 34,091,224.07 | 25,054,675.82 | 36.07% | Primarily due to the expansion of the company's business scale, leading to a corresponding increase in taxes paid | | Other Cash Paid Related to Operating Activities | 164,006,610.10 | 366,710,424.77 | -55.28% | Primarily due to a decrease in "real-time deduction" business in traditional operations during the reporting period | | Net Cash Flow from Operating Activities | -86,467,470.55 | -59,154,991.60 | -46.17% | Primarily due to: 1. Significant changes in the company's business structure compared to the prior period, with a continuous decrease in revenue from mobile information sales and services to individual cash-and-carry customers, and a gradual increase in revenue from industry clients, extending the sales collection cycle; 2. With the continuous expansion of revenue scale in the reporting period, cash paid for goods and services increased significantly compared to the prior year, thus leading to a decrease in net cash flow from operating activities compared to the prior year | | Cash Received from Disposal of Investments | 709,280,000.00 | 55,965,870.00 | 1,167.34% | Primarily due to increased recovery of wealth management products in the current reporting period | | Cash Received from Investment Income | 6,425,809.52 | 4,310,356.19 | 49.08% | Primarily due to increased investment income from wealth management products compared to the prior period | | Net Cash Received from Disposal of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 57,552.73 | 780,409.46 | -92.63% | Primarily due to more fixed assets and intangible assets disposed of in the prior period, resulting in higher cash receipts | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 76,014,270.71 | 15,060,378.43 | 404.73% | Primarily due to increased investment in long-term assets such as copyright purchases and construction in progress in the current reporting period | | Cash Paid for Investments | 959,057,288.57 | 107,000,000.00 | 796.32% | Primarily due to increased investment in wealth management products and significant investment payments for equity in Zishuiniao Image Limited Partnership, Zishuiniao Image General Partnership Co., Ltd., Zhongke Beiying, and other companies in the current reporting period | | Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 244,248,524.62 | 178,696.08 | 136,583.76% | Primarily due to investment payments for the non-same-control acquisition of Anhui Saida in the current reporting period | | Other Cash Paid Related to Investing Activities | 3,193,380.76 | 21,633.59 | 14,661.22% | Primarily due to monetary funds no longer consolidated upon disposal of part of the equity in sub-subsidiary Oriental DreamWorks (Chengdu) Cultural Arts Development Co., Ltd. | | Net Cash Flow from Investing Activities | -565,518,911.41 | -61,204,072.45 | 823.99% | Primarily due to significant investment in wealth management products, the non-same-control acquisition of Anhui Saida, and investment payments for equity in Zishuiniao Image Company, Zhongke Beiying, and other companies in the current reporting period | | Cash Received from Capital Contributions | 2,835,085.00 | 981,519,998.37 | -99.71% | Primarily due to the receipt of funds raised for major asset restructuring in the prior period | | Cash Received from Borrowings | 179,450,000.00 | 30,000,000.00 | 498.17% | Primarily due to increased short-term borrowings as the company adjusted its capital structure and increased funding needs in the current reporting period | | Cash Paid for Debt Repayment | 30,000,000.00 | 50,000,000.00 | -40.00% | Primarily due to a decrease in short-term debt repayment in the current reporting period compared to the prior year-beginning | | Cash Paid for Dividends, Profits, or Interest | 29,435,064.64 | 6,278,241.48 | 368.84% | Primarily due to increased dividend distribution in the current reporting period compared to the prior period | | Other Cash Paid Related to Financing Activities | 6,756,207.54 | 70,563.08 | 9,474.71% | Primarily due to the company's share repurchase in the current reporting period | | Net Cash Flow from Financing Activities | 116,093,812.82 | 955,171,193.81 | -87.85% | Primarily due to the receipt of funds raised for major asset restructuring in the prior period | II. Progress, Impact, and Solutions for Significant Events The company completed the acquisition of Anhui Saida's remaining 49% equity, adjusted the use of raised funds for new acquisitions and IP, and approved a share repurchase plan - The company completed the acquisition of the remaining 49% equity in Anhui Saida Technology Co., Ltd., with a total transaction consideration of CNY 294 million, adjusted to CNY 248.5077 million after deductions[24][27] - The counterparty, Zhou Jie, fulfilled his commitment by using CNY 120 million of the transaction proceeds (after tax) to increase his holdings in the company's shares, acquiring 10,525,030 shares, representing 1.99% of the total share capital, with an investment of CNY 120,096,125.17[24][27] - The company reallocated CNY 101.5 million from the original CNY 131.5 million designated for copyright film and television production to acquire and increase capital in Hangzhou Xiayi Cultural Creative Co., Ltd., and to purchase Jin Yong's literary copyrights for future development, production, and operation[25][27] - As of the end of the reporting period, the company completed the acquisition and capital increase in Hangzhou Xiayi Cultural Creative Co., Ltd., holding a 51% equity stake[25][27] - The company approved a share repurchase plan, intending to use its own and self-raised funds to repurchase shares for future equity incentive plans or legal cancellation[26][28] - The total repurchase amount will be between CNY 150 million and CNY 200 million, at a price not exceeding CNY 12 per share, with an implementation period of no more than 12 months[26][28] - A dedicated securities account for share repurchases has been opened[26][28] III. Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company No overdue unfulfilled commitments by the controlling shareholder, shareholders, related parties, acquirers, or the company were identified during the reporting period - The company had no overdue unfulfilled commitments from its controlling shareholder, shareholders, related parties, acquirers, or the company itself during the reporting period[29] IV. Execution of Cash Dividend Policy During the Reporting Period The company did not implement any cash dividend policy during the reporting period - The company had no execution of cash dividend policy during the reporting period[30] V. Warning and Explanation for Potential Cumulative Net Profit Loss or Significant Change from Year-Ago Period The company did not issue any warning regarding potential cumulative net profit loss or significant changes for the period from year-beginning to the end of the next reporting period - The company did not issue any warning or explanation regarding a potential cumulative net profit loss or significant change compared to the prior year-ago period from year-beginning to the end of the next reporting period[30] VI. Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[30] VII. Non-Operating Funds Occupied by Controlling Shareholder and Related Parties There were no instances of non-operating funds being occupied by the controlling shareholder or its related parties during the reporting period - The company had no non-operating funds occupied by the controlling shareholder or its related parties during the reporting period[31] Section IV Financial Statements I. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the reporting period, offering a comprehensive view of financial performance 1. Consolidated Balance Sheet This table presents the consolidated financial position of the company and its subsidiaries as of September 30, 2018, and the beginning of the year Consolidated Balance Sheet (September 30, 2018) | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 1,442,041,432.42 | 1,644,365,605.47 | | Total Non-Current Assets | 1,313,228,883.74 | 717,310,030.86 | | Total Assets | 2,755,270,316.16 | 2,361,675,636.33 | | Total Current Liabilities | 293,590,088.79 | 97,102,352.24 | | Total Non-Current Liabilities | - | 58,333.21 | | Total Liabilities | 293,590,088.79 | 97,160,685.45 | | Total Equity Attributable to Parent Company Shareholders | 2,443,077,529.02 | 2,256,213,858.46 | | Minority Interests | 18,602,698.35 | 8,301,092.42 | | Total Shareholders' Equity | 2,461,680,227.37 | 2,264,514,950.88 | | Total Liabilities and Shareholders' Equity | 2,755,270,316.16 | 2,361,675,636.33 | 2. Parent Company Balance Sheet This table details the financial position of the parent company as of September 30, 2018, and the beginning of the year Parent Company Balance Sheet (September 30, 2018) | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 902,436,212.29 | 1,295,750,393.98 | | Total Non-Current Assets | 1,474,213,792.33 | 983,022,362.21 | | Total Assets | 2,376,650,004.62 | 2,278,772,756.19 | | Total Current Liabilities | 225,610,676.33 | 113,175,039.69 | | Total Non-Current Liabilities | - | - | | Total Liabilities | 225,610,676.33 | 113,175,039.69 | | Total Shareholders' Equity | 2,151,039,328.29 | 2,165,597,716.50 | | Total Liabilities and Shareholders' Equity | 2,376,650,004.62 | 2,278,772,756.19 | 3. Consolidated Income Statement for the Current Period This table presents the consolidated financial performance of the company and its subsidiaries for the current reporting period Consolidated Income Statement for the Current Period (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 178,559,325.49 | 98,986,664.20 | | II. Total Operating Costs | 147,732,286.16 | 87,233,983.04 | | III. Operating Profit | 31,063,354.05 | 25,434,097.19 | | IV. Total Profit | 31,078,170.43 | 21,586,193.67 | | V. Net Profit | 20,065,952.50 | 15,559,068.88 | | Net Profit Attributable to Parent Company Shareholders | 18,367,567.32 | 17,371,341.80 | | Minority Interest Income/Loss | 1,698,385.18 | -1,812,272.92 | | VII. Total Comprehensive Income | 20,065,952.50 | 15,559,068.88 | | VIII. Earnings Per Share (Basic/Diluted) | 0.035 | 0.034 | 4. Parent Company Income Statement for the Current Period This table outlines the financial performance of the parent company for the current reporting period Parent Company Income Statement for the Current Period (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Operating Revenue | 16,564,393.63 | 29,133,638.04 | | II. Operating Profit | -12,997,686.71 | -4,212,890.50 | | III. Total Profit | -13,012,310.03 | -8,269,289.63 | | IV. Net Profit | -13,012,310.03 | -8,269,289.63 | | VI. Total Comprehensive Income | -13,012,310.03 | -8,269,289.63 | 5. Consolidated Income Statement from Year-Beginning to Period End This table presents the consolidated financial performance of the company and its subsidiaries from the beginning of the year to the end of the reporting period Consolidated Income Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 498,877,437.77 | 296,570,475.63 | | II. Total Operating Costs | 422,763,162.61 | 280,376,609.56 | | III. Operating Profit | 208,716,961.30 | 93,151,965.26 | | IV. Total Profit | 211,419,405.77 | 88,537,895.37 | | V. Net Profit | 207,319,948.06 | 75,617,402.35 | | Net Profit Attributable to Parent Company Shareholders | 206,112,356.43 | 78,687,479.73 | | Minority Interest Income/Loss | 1,207,591.63 | -3,070,077.38 | | VII. Total Comprehensive Income | 207,319,948.06 | 75,617,402.35 | | VIII. Earnings Per Share (Basic/Diluted) | 0.39 | 0.16 | 6. Parent Company Income Statement from Year-Beginning to Period End This table details the financial performance of the parent company from the beginning of the year to the end of the reporting period Parent Company Income Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Operating Revenue | 106,340,807.73 | 118,223,154.23 | | II. Operating Profit | 4,532,742.95 | 24,088,053.94 | | III. Total Profit | 4,464,858.28 | 19,406,579.81 | | IV. Net Profit | 4,464,858.28 | 19,406,579.81 | | VI. Total Comprehensive Income | 4,464,858.28 | 19,406,579.81 | 7. Consolidated Cash Flow Statement from Year-Beginning to Period End This table presents the consolidated cash flow activities of the company and its subsidiaries from the beginning of the year to the end of the reporting period Consolidated Cash Flow Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -86,467,470.55 | -59,154,991.60 | | II. Net Cash Flow from Investing Activities | -565,518,911.41 | -61,204,072.45 | | III. Net Cash Flow from Financing Activities | 116,093,812.82 | 955,171,193.81 | | V. Net Increase in Cash and Cash Equivalents | -535,892,569.14 | 834,812,129.76 | | Add: Cash and Cash Equivalents at Year-Beginning | 1,211,160,676.40 | 292,469,421.36 | 8. Parent Company Cash Flow Statement from Year-Beginning to Period End This table outlines the cash flow activities of the parent company from the beginning of the year to the end of the reporting period Parent Company Cash Flow Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 197,438,143.14 | -722,551,665.42 | | II. Net Cash Flow from Investing Activities | -420,501,729.57 | -36,519,243.14 | | III. Net Cash Flow from Financing Activities | 83,881,227.82 | 950,271,193.81 | | V. Net Increase in Cash and Cash Equivalents | -139,182,358.61 | 191,200,285.25 | | VI. Cash and Cash Equivalents at Period End | 186,790,372.70 | 262,041,454.68 | II. Audit Report The company's third-quarter report for 2018 was not audited - The company's third-quarter report was unaudited[66]