ZNGF(SZ:000717)2017-10-27 16:00Financial Performance - Total assets at the end of the reporting period reached ¥15,031,430,824.34, an increase of 0.37% compared to the end of the previous year[8]. - Net assets attributable to shareholders of the listed company surged to ¥2,209,346,783.28, reflecting a significant increase of 381.87% year-on-year[8]. - Operating revenue for the reporting period was ¥7,197,527,758.94, representing a growth of 97.53% compared to the same period last year[8]. - Net profit attributable to shareholders of the listed company was ¥1,100,614,593.84, marking an impressive increase of 847.90% year-on-year[8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses reached ¥1,296,695,443.75, up by 1,049.05% compared to the same period last year[8]. - The basic earnings per share for the reporting period was ¥0.4549, an increase of 847.71% year-on-year[8]. - The weighted average return on equity was 66.34%, a significant rise from 3.28% in the previous year[8]. - The net cash flow from operating activities for the year-to-date was ¥1,412,453,394.66, reflecting a substantial increase of 572.86%[8]. Revenue and Profitability - Total revenue for the third quarter reached ¥1,853,417.54 million, a 96.60% increase compared to ¥942,715.57 million in the previous year, driven by higher sales volume and prices of finished steel[18]. - Gross profit margin improved significantly, with total costs rising to ¥1,592,007.23 million, reflecting a 77.45% increase due to higher production and raw material costs[18]. - Net profit for the period was ¥175,026.24 million, a remarkable turnaround from a net loss of ¥11,271.33 million in the same period last year, marking a 1652.84% increase in profitability[18]. Asset Management - Accounts receivable increased by 32.79% to ¥30,735.07 million, attributed to higher sales volume[16]. - Prepayments surged by 460.41% to ¥65,917.06 million, primarily due to increased advance payments for raw material purchases[16]. - The company's total assets increased significantly, with total equity attributable to shareholders rising by 381.87% to ¥220,934.68 million, reflecting improved profitability[16]. - Cash inflow from operating activities totaled ¥1,927,170.94 million, an 84.71% increase year-on-year, driven by higher steel sales revenue[18]. - Investment activity cash outflow increased by 368.87% to ¥39,717.07 million, mainly due to higher cash payments for asset acquisitions[18]. Government and Legal Matters - The company reported non-operating income from government subsidies amounting to ¥52,778,861.72, primarily from resource utilization tax refunds and financial subsidies[9]. - The company is actively managing risks related to ongoing litigation and has disclosed updates regarding its stock trading status[20]. - The company reported a significant lawsuit involving BoFeng Power against Shaogang International Trade, with updates provided on March 9, 2017[21]. - The company announced the withdrawal of the delisting risk warning for its stock on March 31, 2017, indicating improved financial stability[21]. - There were no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[22]. Future Outlook and Investments - The company does not anticipate a significant change in net profit for the year compared to the same period last year[23]. - The company engaged in derivative investments, with a total investment amount of 131,118,000 CNY in forward contracts as of the reporting period[25]. - The company reported a net investment amount of 131,325,000 CNY in the same forward contracts during the reporting period[25]. - The company recorded a loss of 583,570 CNY from derivative investments in the reporting period[25]. - The company has no securities investment during the reporting period, indicating a focus on core operations[23]. - The company’s controlling shareholder planned a non-public issuance of exchangeable bonds, reflecting a strategy to raise capital[21]. Risk Management and Compliance - The company has established a risk warning mechanism and improved internal control systems for financial derivatives, aligning with prudent risk management principles[27]. - The company conducted multiple investor communications, including site visits from various institutional investors throughout July to September 2017[28]. - There were no instances of non-compliance regarding external guarantees during the reporting period[29]. - The company’s derivative investment activities are closely related to its daily operations and comply with relevant laws and regulations[27]. - The company has implemented strict authorization and job balance systems to manage risks associated with derivative investments[26]. - The fair value of the company's held futures contracts is based on the settlement prices published by the Shanghai Futures Exchange[26]. - The company aims to lock in profits and mitigate risks associated with price declines through its derivative hedging activities[27]. - The accounting policies for derivatives remain consistent with those of the previous reporting period, indicating stability in financial reporting practices[26]. Joint Ventures and Non-Operating Activities - Baosteel Special Steel Shaoguan Co., Ltd. sold special steel assets for a total amount of 5,120.18 million, with cash settlement completed by March 2017[31]. - The company has no new non-operating fund occupation during the reporting period[31]. - The total amount of non-operating fund occupation at the end of the period accounted for 0.00% of the most recent audited net assets[31]. - The company established a joint venture, Baosteel Special Steel Long Product Co., Ltd., with a 49% stake approved by the board in December 2015[31]. - The company has not initiated any targeted poverty alleviation work in the third quarter and has no subsequent plans[32].