九洲集团(300040) - 2017 Q3 - 季度财报

Section I Important Notice The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and its financial statements Important Notice The company's board of directors, supervisory board, and senior management declare the quarterly report's content is true, accurate, and complete, with all directors attending the review meeting - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions[4] - All directors attended the board meeting to review this quarterly report[5] - Company head Li Yin, chief accountant Li Bin, and head of accounting department Liu Zhenxin declare and guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[5] Section II Company Profile This section details the company's key financial performance, shareholder structure, and changes in restricted shares during the reporting period Key Accounting Data and Financial Indicators As of the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased, with year-to-date net profit growing by 138.52% Key Accounting Data and Financial Indicators (As of September 30, 2017) | Indicator | End of Current Period (CNY) | End of Prior Year (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,918,566,024.09 | 2,832,535,366.46 | 3.04% | | Net Assets Attributable to Shareholders of Listed Companies | 1,863,516,507.78 | 1,784,363,558.35 | 4.44% | | Indicator | Current Period (CNY) | YoY Change (%) | Year-to-Date (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 263,959,072.94 | 38.54% | 988,769,661.95 | 88.55% | | Net Profit Attributable to Shareholders of Listed Companies | 22,327,434.00 | 23.98% | 98,924,333.83 | 138.52% | | Net Profit Attributable to Shareholders of Listed Companies (Excluding Non-Recurring Gains/Losses) | 19,628,163.33 | 33.24% | 91,158,850.02 | 189.99% | | Net Cash Flow from Operating Activities | -- | -- | -129,696,258.06 | -158.27% | | Basic Earnings Per Share (CNY/share) | 0.07 | 40.00% | 0.29 | 141.67% | | Diluted Earnings Per Share (CNY/share) | 0.07 | 40.00% | 0.29 | 141.67% | | Weighted Average Return on Net Assets | 1.21% | -25.77% | 5.41% | 118.15% | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 72,805.65 | Gains on disposal of fixed assets | | Government Subsidies Included in Current Profit/Loss | 9,385,354.12 | Government subsidies | | Gains/Losses from Entrusted Investment or Asset Management | 45,044.00 | Investment income | | Other Non-Operating Income and Expenses Apart from the Above | -367,341.64 | | | Less: Income Tax Impact | 1,370,378.32 | | | Total | 7,765,483.81 | -- | - The company had no instances of reclassifying non-recurring gains and losses as recurring gains and losses during the reporting period[10] Total Shareholders and Top Ten Shareholders' Holdings at Period End As of the reporting period end, the company had 22,029 common shareholders, with significant pledged holdings among top shareholders Li Yin and Zhao Xiaohong, who are parties acting in concert - The total number of common shareholders at the end of the reporting period was 22,029[12] Top 10 Shareholders' Holdings (As of September 30, 2017) | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held (Shares) | Number of Restricted Shares Held (Shares) | Pledged or Frozen Shares (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yin | Domestic Natural Person | 19.75% | 68,370,602 | 51,277,951 | Pledged 42,083,541 | | Zhao Xiaohong | Domestic Natural Person | 15.65% | 54,170,602 | 40,627,951 | Pledged 28,627,949 | | Heilongjiang Chenneng Harbin Institute of Technology High-Tech Venture Capital Co., Ltd. | State-Owned Legal Person | 3.36% | 11,622,240 | 0 | - | | Li Changhe | Domestic Natural Person | 2.26% | 7,835,173 | 5,135,888 | Pledged 2,980,000 | | Li Wendong | Domestic Natural Person | 2.16% | 7,463,257 | 5,634,615 | Pledged 3,150,000 | | Beijing Zhicheng Shengjing Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 1.00% | 3,463,979 | 1,793,979 | - | | Harbin Science and Technology Venture Capital Center | State-Owned Legal Person | 0.73% | 2,538,460 | 0 | - | | Beijing Zhongdian Xinneng Investment Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.68% | 2,344,613 | 1,380,692 | - | | Ningbo Huajian Huifu Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.65% | 2,249,724 | 200,835 | - | | Lu Jianfeng | Domestic Natural Person | 0.65% | 2,240,000 | 0 | - | - Among the company's top 10 shareholders, Li Yin and Zhao Xiaohong are parties acting in concert, and Li Wendong and Li Changhe are uncle and nephew[13] Changes in Restricted Shares During the reporting period, the company's total restricted shares slightly decreased to 117,013,272 shares, primarily comprising executive lock-up, post-IPO, and equity incentive shares Changes in Restricted Shares (As of September 30, 2017) | Shareholder Name | Restricted Shares at Period Start (Shares) | Shares Released from Restriction in Current Period (Shares) | Shares Added to Restriction in Current Period (Shares) | Restricted Shares at Period End (Shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yin | 42,907,349 | 0 | 0 | 42,907,349 | Executive Lock-up Shares | Annual transfer not to exceed 25% of total shares held | | Li Yin | 8,370,602 | 0 | 0 | 8,370,602 | Post-IPO Individual Restricted Shares | Unlocked as per commitment | | Zhao Xiaohong | 34,000,000 | 1,742,651 | 0 | 32,257,349 | Executive Lock-up Shares | Annual transfer not to exceed 25% of total shares held | | Zhao Xiaohong | 8,370,602 | 0 | 0 | 8,370,602 | Post-IPO Individual Restricted Shares | Unlocked as per commitment | | Equity Incentive Restricted Shares | 7,984,000 | 2,442,800 | 0 | 5,541,200 | Equity Incentive Restricted Shares | Unlocked as per equity incentive plan | | Total | 121,134,223 | 4,185,451 | 64,500 | 117,013,272 | -- | -- | Section III Significant Matters This section outlines major financial data fluctuations, significant business developments, and confirms the absence of unfulfilled commitments or irregular financial activities Significant Changes in Key Financial Data and Indicators and Their Causes During the reporting period, several financial data points underwent significant changes, including substantial increases in notes receivable and short-term borrowings, and a negative shift in operating cash flow Significant Balance Sheet Item Changes and Causes (Period-End vs. Period-Start) | Balance Sheet Item | End of Reporting Period (CNY) | Beginning Balance (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Cash | 266,755,147.16 | 438,248,215.63 | -39.13% | Primarily due to increased contracts and advances for sales and engineering in the current period | | Notes Receivable | 161,523,943.14 | 18,482,751.30 | 773.92% | Primarily due to increased collections via acceptance bills from sales in the current period | | Prepayments | 33,069,284.32 | 18,938,422.68 | 74.61% | Primarily due to increased advance payments for engineering and purchases | | Other Receivables | 175,142,068.82 | 70,224,982.25 | 149.40% | Primarily due to increased upfront expenditures for general contracting and engineering deposits | | Other Current Assets | 96,806,553.84 | 14,870,827.02 | 550.98% | Primarily due to increased wealth management products compared to the beginning of the period | | Short-Term Borrowings | 131,500,000.00 | 61,500,000.00 | 113.82% | Primarily due to receipt of bank loans in the current period | | Notes Payable | 163,345,430.90 | 273,119,842.35 | -40.19% | Primarily due to maturity and acceptance of some acceptance bills from the end of the prior period | | Dividends Payable | 10,808,240.40 | - | 100.00% | Unpaid dividends at the end of the current period | | Long-Term Payables | 99,315,823.64 | - | 100.00% | Primarily due to receipt of finance lease payments in the current period | | Treasury Stock | 36,584,184.00 | 52,755,520.00 | -30.65% | Primarily due to initial restricted stock reaching unlock conditions in the current period | Significant Income Statement Item Changes and Causes (Year-to-Date vs. Prior Year Period) | Income Statement Item | Year-to-Date (CNY) | Prior Year Period (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 988,769,661.95 | 524,418,572.61 | 88.55% | Revenue recognized from grid-connected photovoltaic power station general contracting projects and partial engineering revenue from wind power general contracting projects in the current period | | Cost of Sales | 768,488,884.74 | 385,231,018.41 | 99.49% | Costs recognized from grid-connected photovoltaic power station general contracting projects and partial engineering costs from wind power general contracting projects in the current period | | Taxes and Surcharges | 8,073,349.81 | 951,140.11 | 748.81% | Primarily due to reclassification of property tax and land use tax to taxes and surcharges in the current period, previously classified as administrative expenses in the prior year period | | Asset Impairment Losses | 13,521,359.59 | -8,149,783.37 | -265.91% | Primarily due to increased provision for bad debts in the current period compared to the prior year period | | Investment Income | 45,044.00 | 2,215,195.34 | -97.97% | Primarily due to reduced investment in wealth management products compared to the prior year period | | Income Tax Expense | 19,597,577.46 | 5,888,983.49 | 232.78% | Primarily due to a significant increase in total profit in the current period and corresponding income tax expense recognition | Significant Cash Flow Statement Item Changes and Causes (Year-to-Date vs. Prior Year Period) | Cash Flow Statement Item | Year-to-Date (CNY) | Prior Year Period (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -129,696,258.06 | 222,586,524.12 | -158.27% | Primarily due to the dual factors of increased upfront expenditures for BT projects and increased collections via acceptance bills from sales in the current period | | Net Cash Flow from Investing Activities | 40,038,839.72 | -243,005,030.49 | -116.48% | Primarily due to more time deposits recovered than placed in the current period, while in the prior year period, time deposits recovered were less than placed | | Net Cash Flow from Financing Activities | 61,876,360.89 | -14,782,817.68 | 518.57% | Primarily due to receipt of finance lease payments and bank loans in the current period | Progress of Significant Matters During the reporting period, the company signed several key agreements and investment plans to expand its business and financing channels, including a wind farm general contracting project and strategic cooperation agreements Overview of Significant Matters | Overview of Significant Matters | Disclosure Date | Index for Temporary Report Disclosure Website Query | | :--- | :--- | :--- | | Signing of "Dingbian Tianchitang Wind Farm BT General Contracting Project" | July 31, 2017 | http://www.cninfo.com.cn/ | | Investment and establishment of wholly-owned subsidiary China Jiuzhou International Energy Investment in Hong Kong | September 15, 2017 | http://www.cninfo.com.cn/ | | Signing of "Strategic Cooperation Framework Agreement" with China Kangfu International Leasing Co., Ltd. | September 19, 2017 | http://www.cninfo.com.cn/ | | Signing of "Clean Energy Heating Strategic Cooperation Framework Agreement" with the People's Government of Meilisi Daur District, Qiqihar City | September 28, 2017 | http://www.cninfo.com.cn/ | Unfulfilled Commitments The company confirms no overdue unfulfilled commitments from the actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period - The company had no overdue unfulfilled commitments from the actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period[23] Execution of Cash Dividend Policy 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[24] Cumulative Net Profit Forecast Warning The company had no warning regarding a potential cumulative net profit loss or significant change from the beginning of the year to the end of the next reporting period - The company had no warning regarding a potential cumulative net profit loss or significant change from the beginning of the year to the end of the next reporting period[25] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[25] Non-Operating Funds Occupied by Controlling Shareholder During the reporting period, there were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company - There were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company during the reporting period[26] Section IV Financial Statements This section presents the consolidated and parent company balance sheets, income statements, and cash flow statements for the reporting period, along with an audit status Consolidated Balance Sheet As of September 30, 2017, the company's consolidated total assets amounted to CNY 2.919 billion, a 3.04% increase, with significant changes in cash, notes receivable, and short-term borrowings Consolidated Balance Sheet Key Items (As of September 30, 2017) | Item | Period-End Balance (CNY) | Period-Start Balance (CNY) | | :--- | :--- | :--- | | Cash | 266,755,147.16 | 438,248,215.63 | | Notes Receivable | 161,523,943.14 | 18,482,751.30 | | Accounts Receivable | 847,482,200.11 | 1,023,498,644.10 | | Prepayments | 33,069,284.32 | 18,938,422.68 | | Other Receivables | 175,142,068.82 | 70,224,982.25 | | Inventories | 373,493,039.50 | 310,998,424.19 | | Other Current Assets | 96,806,553.84 | 14,870,827.02 | | Total Current Assets | 1,955,625,931.45 | 1,896,161,407.37 | | Fixed Assets | 503,588,316.38 | 471,194,544.99 | | Intangible Assets | 181,440,425.10 | 192,188,695.00 | | Total Assets | 2,918,566,024.09 | 2,832,535,366.46 | | Short-Term Borrowings | 131,500,000.00 | 61,500,000.00 | | Notes Payable | 163,345,430.90 | 273,119,842.35 | | Accounts Payable | 447,569,504.94 | 440,525,623.21 | | Dividends Payable | 10,808,240.40 | 0 | | Long-Term Payables | 99,315,823.64 | 0 | | Total Liabilities | 1,055,049,516.31 | 1,048,171,808.11 | | Total Owners' Equity Attributable to Parent Company | 1,863,516,507.78 | 1,784,363,558.35 | | Total Owners' Equity | 1,863,516,507.78 | 1,784,363,558.35 | Parent Company Balance Sheet As of September 30, 2017, the parent company's total assets were CNY 2.576 billion, with notable increases in notes receivable and short-term borrowings, and decreases in cash and notes payable Parent Company Balance Sheet Key Items (As of September 30, 2017) | Item | Period-End Balance (CNY) | Period-Start Balance (CNY) | | :--- | :--- | :--- | | Cash | 188,629,332.54 | 358,367,053.33 | | Notes Receivable | 158,213,943.14 | 7,207,949.00 | | Accounts Receivable | 679,886,717.25 | 854,078,895.40 | | Prepayments | 41,598,045.84 | 15,737,366.11 | | Other Receivables | 170,521,282.38 | 83,752,391.90 | | Other Current Assets | 69,102,471.23 | 139,961.26 | | Total Current Assets | 1,537,260,056.38 | 1,540,189,677.69 | | Long-Term Equity Investments | 899,212,880.41 | 899,212,880.41 | | Total Assets | 2,576,134,199.26 | 2,588,493,131.73 | | Short-Term Borrowings | 100,000,000.00 | 50,000,000.00 | | Notes Payable | 111,095,907.50 | 253,666,936.31 | | Accounts Payable | 319,781,162.46 | 269,555,883.51 | | Other Payables | 233,921,232.04 | 231,388,310.16 | | Total Liabilities | 886,411,732.72 | 949,036,012.95 | | Total Owners' Equity | 1,689,722,466.54 | 1,639,457,118.78 | Consolidated Income Statement for the Current Period In Q3 2017, the company achieved total operating revenue of CNY 264 million, a 38.54% year-on-year increase, with net profit attributable to parent company owners at CNY 22.33 million Consolidated Income Statement Key Items for Q3 2017 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 263,959,072.94 | 190,534,937.11 | | Cost of Sales | 211,247,251.80 | 140,291,071.21 | | Taxes and Surcharges | 122,610.02 | 538,107.34 | | Selling Expenses | 12,645,228.74 | 15,342,126.66 | | Administrative Expenses | 17,579,489.57 | 29,802,948.02 | | Finance Expenses | 1,195,823.65 | -191,736.08 | | Asset Impairment Losses | -1,770,742.35 | -11,075,786.44 | | Operating Profit | 26,780,377.98 | 20,290,220.68 | | Total Profit | 26,546,271.66 | 19,624,004.95 | | Income Tax Expense | 4,218,837.66 | 1,614,907.64 | | Net Profit | 22,327,434.00 | 18,009,097.31 | | Net Profit Attributable to Parent Company Owners | 22,327,434.00 | 18,009,604.86 | | Basic Earnings Per Share (CNY/share) | 0.07 | 0.05 | | Diluted Earnings Per Share (CNY/share) | 0.07 | 0.05 | Parent Company Income Statement for the Current Period In Q3 2017, the parent company's operating revenue reached CNY 198 million, a significant increase from the prior period, with net profit substantially growing to CNY 17.28 million Parent Company Income Statement Key Items for Q3 2017 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 197,626,800.39 | 112,409,853.85 | | Cost of Sales | 167,128,850.84 | 95,222,734.21 | | Taxes and Surcharges | -1,534,202.37 | 12,470.01 | | Selling Expenses | 7,393,597.75 | 8,881,450.15 | | Administrative Expenses | 7,479,274.06 | 18,375,541.83 | | Finance Expenses | -517,028.36 | -679,355.59 | | Asset Impairment Losses | -2,189,682.74 | -11,771,429.09 | | Operating Profit | 20,609,907.88 | 4,328,817.47 | | Total Profit | 20,380,360.68 | 4,565,537.72 | | Income Tax Expense | 3,101,489.42 | -681,107.24 | | Net Profit | 17,278,871.26 | 5,246,644.96 | Consolidated Income Statement Year-to-Date As of September 30, 2017, the company's consolidated total operating revenue reached CNY 989 million, an 88.55% year-on-year increase, with net profit attributable to parent company owners growing by 138.52% Consolidated Income Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 988,769,661.95 | 524,418,572.61 | | Cost of Sales | 768,488,884.74 | 385,231,018.41 | | Taxes and Surcharges | 8,073,349.81 | 951,140.11 | | Selling Expenses | 35,135,580.48 | 42,165,142.89 | | Administrative Expenses | 57,592,003.79 | 69,405,719.80 | | Finance Expenses | -498,334.79 | -912,303.37 | | Asset Impairment Losses | 13,521,359.59 | -8,149,783.37 | | Operating Profit | 118,816,447.28 | 47,790,502.99 | | Total Profit | 118,521,911.29 | 47,364,181.59 | | Income Tax Expense | 19,597,577.46 | 5,888,983.49 | | Net Profit | 98,924,333.83 | 41,475,198.10 | | Net Profit Attributable to Parent Company Owners | 98,924,333.83 | 41,473,382.86 | | Basic Earnings Per Share (CNY/share) | 0.29 | 0.12 | | Diluted Earnings Per Share (CNY/share) | 0.29 | 0.12 | Parent Company Income Statement Year-to-Date As of September 30, 2017, the parent company's operating revenue reached CNY 711 million, a significant increase from the prior year, with net profit substantially growing to CNY 70.04 million Parent Company Income Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 710,800,565.06 | 283,426,199.54 | | Cost of Sales | 572,713,251.50 | 230,509,168.65 | | Taxes and Surcharges | 2,709,605.76 | -908,236.58 | | Selling Expenses | 20,967,267.63 | 23,954,189.09 | | Administrative Expenses | 25,322,942.55 | 35,749,847.14 | | Finance Expenses | -3,497,797.27 | -2,137,270.95 | | Asset Impairment Losses | 11,855,181.74 | -11,769,821.15 | | Operating Profit | 82,961,863.16 | 12,846,388.42 | | Total Profit | 82,689,021.08 | 13,222,660.70 | | Income Tax Expense | 12,652,288.92 | 529,900.40 | | Net Profit | 70,036,732.16 | 12,692,760.30 | Consolidated Cash Flow Statement Year-to-Date As of September 30, 2017, consolidated net cash flow from operating activities turned significantly negative to CNY -130 million, while investing and financing cash flows showed notable improvements or increases Consolidated Cash Flow Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 932,221,628.28 | 929,189,703.24 | | Subtotal of Cash Outflows from Operating Activities | 1,061,917,886.34 | 706,603,179.12 | | Net Cash Flow from Operating Activities | -129,696,258.06 | 222,586,524.12 | | Subtotal of Cash Inflows from Investing Activities | 304,311,904.16 | 632,308,269.74 | | Subtotal of Cash Outflows from Investing Activities | 264,273,064.44 | 875,313,300.23 | | Net Cash Flow from Investing Activities | 40,038,839.72 | -243,005,030.49 | | Subtotal of Cash Inflows from Financing Activities | 138,500,000.00 | 46,500,000.00 | | Subtotal of Cash Outflows from Financing Activities | 76,623,639.11 | 61,282,817.68 | | Net Cash Flow from Financing Activities | 61,876,360.89 | -14,782,817.68 | | Net Increase in Cash and Cash Equivalents | -27,781,057.45 | -35,201,324.05 | | Cash and Cash Equivalents at Period End | 115,844,716.57 | 31,913,013.45 | Parent Company Cash Flow Statement Year-to-Date As of September 30, 2017, parent company net cash flow from operating activities turned significantly negative to CNY -114 million, while investing cash flow improved and financing cash flow further decreased Parent Company Cash Flow Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 730,301,248.41 | 689,644,108.51 | | Subtotal of Cash Outflows from Operating Activities | 844,769,192.39 | 447,451,205.51 | | Net Cash Flow from Operating Activities | -114,467,943.98 | 242,192,903.00 | | Subtotal of Cash Inflows from Investing Activities | 302,227,815.55 | 367,076,408.97 | | Subtotal of Cash Outflows from Investing Activities | 194,620,350.00 | 602,759,396.86 | | Net Cash Flow from Investing Activities | 107,607,465.55 | -235,682,987.89 | | Subtotal of Cash Inflows from Financing Activities | 50,000,000.00 | 0 | | Subtotal of Cash Outflows from Financing Activities | 60,346,230.79 | 7,916,792.90 | | Net Cash Flow from Financing Activities | -10,346,230.79 | -7,916,792.90 | | Net Increase in Cash and Cash Equivalents | -17,206,709.22 | -1,406,877.79 | | Cash and Cash Equivalents at Period End | 68,846,652.90 | 18,849,947.12 | Audit Report The company's Q3 2017 report was unaudited - The company's third-quarter report was unaudited[58] Section XI Reference Documents This section lists the official documents available for reference, including the signed financial report and publicly disclosed company filings Reference Documents List At the end of the reporting period, the company's reference documents include the signed financial report, publicly disclosed company filings, and the original Q3 2017 report - Financial report text signed and sealed by the company's legal representative Mr. Li Yin, chief accountant Mr. Li Bin, and head of accounting department Ms. Liu Zhenxin[61] - Original copies of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period[62] - Original Q3 2017 report signed by the company's legal representative Mr. Li Yin[63]