华宏科技(002645) - 2018 Q1 - 季度财报

Part I Important Notice Important Notice The company's board, supervisory board, and management guarantee the truthfulness and completeness of this quarterly report and its financial statements - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report and assume individual and joint legal responsibility[4] - Company head Hu Shiyong, chief financial officer Zhu Dayong, and head of accounting Cao Wujuan affirm the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[5] Part II Company Profile Key Accounting Data and Financial Indicators Q1 2018 revenue and net profit grew substantially, but net cash flow from operations turned negative, decreasing 161.96% Key Accounting Data and Financial Indicators for Q1 2018 | Indicator | Current Period (CNY) | Prior Year Same Period (CNY) | YoY Change | End of Current Period (CNY) | End of Prior Year (CNY) | Period-end Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 330,284,051.22 | 252,788,580.68 | 30.66% | | | | | Net Profit Attributable to Shareholders | 29,741,842.66 | 12,298,603.62 | 141.83% | | | | | Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses) | 26,199,041.87 | 10,700,785.75 | 144.83% | | | | | Net Cash Flow from Operating Activities | -24,738,504.07 | 39,926,033.57 | -161.96% | | | | | Basic Earnings Per Share (CNY/share) | 0.1420 | 0.0587 | 141.91% | | | | | Diluted Earnings Per Share (CNY/share) | 0.1420 | 0.0587 | 141.91% | | | | | Weighted Average Return on Net Assets | 1.72% | 0.79% | 0.93% | | | | | Total Assets | | | | 2,414,026,046.92 | 2,235,551,600.85 | 7.98% | | Net Assets Attributable to Shareholders | | | | 1,704,364,938.62 | 1,674,150,925.10 | 1.80% | Non-recurring Gains and Losses Items and Amounts | Item | Amount from Year-Start to End of Reporting Period (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 44,580.11 | | | Government Grants Recognized in Current Profit/Loss | 2,859,244.86 | | | Gains/Losses from Entrusted Investments or Asset Management | 915,818.05 | Wealth Management Income | | Other Non-operating Income and Expenses Apart from the Above | 453,579.70 | | | Less: Income Tax Impact | 728,871.35 | | | Impact on Minority Interests (After Tax) | 1,550.58 | | | Total | 3,542,800.79 | -- | - During the reporting period, the company did not classify any non-recurring gains and losses, as defined and listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public – Non-recurring Gains and Losses," as recurring gains and losses[10] Total Shareholders and Top Ten Shareholders' Holdings at Period-End At period-end, the company had 14,100 common shareholders; the largest shareholder held 49.69% (mostly pledged), with the Hu brothers as actual controllers - Total common shareholders at period-end: 14,100; total preferred shareholders with restored voting rights at period-end: 0[12] Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | Number of Restricted Shares Held | Pledge or Freeze Status - Share Status | Pledge or Freeze Status - Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Huahong Industrial Group Co., Ltd. | Domestic Non-state-owned Legal Person | 49.69% | 104,067,293 | 13,392,293 | Pledged | 78,000,000 | | Zhou Jingcheng | Domestic Natural Person | 8.64% | 18,090,371 | 18,090,371 | | | | Hu Shiyong | Domestic Natural Person | 4.36% | 9,126,000 | 6,844,500 | | | | Zheng Yu | Domestic Natural Person | 3.02% | 6,317,119 | 6,317,119 | Pledged | 5,680,000 | | Zhou Shijie | Domestic Natural Person | 2.93% | 6,132,329 | 6,132,329 | | | | Nantong Suhai Investment Management Center (Limited Partnership) | Domestic Non-state-owned Legal Person | 1.76% | 3,679,397 | 3,679,397 | | | | Hu Pinlong | Domestic Natural Person | 1.68% | 3,510,000 | 2,632,500 | | | | Hu Shiqing | Domestic Natural Person | 1.68% | 3,510,000 | 2,632,500 | | | | Hu Shiqin | Domestic Natural Person | 1.68% | 3,510,000 | 0 | | | | Hu Shifa | Domestic Natural Person | 1.68% | 3,510,000 | 0 | | | Top 10 Unrestricted Shareholders' Holdings | Shareholder Name | Number of Unrestricted Shares Held | Share Type - Type | Share Type - Quantity | | :--- | :--- | :--- | :--- | | Jiangsu Huahong Industrial Group Co., Ltd. | 90,675,000 | RMB Common Stock | 90,675,000 | | Hu Shiqin | 3,510,000 | RMB Common Stock | 3,510,000 | | Hu Shifa | 3,510,000 | RMB Common Stock | 3,510,000 | | China Merchants Bank Co., Ltd. - China-Europe Hengli Three-Year Fixed Open-end Mixed Securities Investment Fund | 2,410,256 | RMB Common Stock | 2,410,256 | | Hu Shiyong | 2,281,500 | RMB Common Stock | 2,281,500 | | Bao Lijuan | 1,341,998 | RMB Common Stock | 1,341,998 | | Industrial and Commercial Bank of China Co., Ltd. - China-Europe Potential Value Flexible Allocation Mixed Securities Investment Fund | 1,196,351 | RMB Common Stock | 1,196,351 | | Central Huijin Asset Management Co., Ltd. | 1,011,300 | RMB Common Stock | 1,011,300 | | China Merchants Bank Co., Ltd. - China-Europe Ruihong Fixed Open-end Flexible Allocation Mixed Securities Investment Fund | 896,939 | RMB Common Stock | 896,939 | | Hu Pinlong | 877,500 | RMB Common Stock | 877,500 | - The company's actual controllers are the four Hu brothers: Hu Shiyong, Hu Shiqing, Hu Shifa, and Hu Shiqin; Zhou Jingcheng, Zhou Shijie, and Nantong Suhai Investment Management Center (Limited Partnership) are parties acting in concert[13] - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period, and there are no preferred shareholders[13][14] Part III Significant Events Changes and Reasons for Key Financial Data and Indicators Financial statements showed notable changes, primarily driven by evolving business operations and increased volume in renewable resources equipment Balance Sheet Item Changes and Reasons (March 31, 2018 vs. December 31, 2017) | Balance Sheet Item | March 31, 2018 (CNY) | December 31, 2017 (CNY) | Change Amount (CNY) | Change Percentage | Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 37,363,834.12 | 11,578,258.91 | 25,785,575.21 | 222.71% | Due to changes in business settlement methods | | Prepayments | 160,364,401.55 | 90,302,927.43 | 70,061,474.12 | 77.58% | Primarily due to changes in procurement payment methods | | Interest Receivable | 51,378.52 | 226,667.31 | -175,288.79 | -77.33% | Due to decrease in notice deposits | | Inventories | 467,718,333.17 | 343,720,475.05 | 123,997,858.12 | 36.08% | Due to increase in inventory goods | | Long-term Deferred Expenses | 105,796.24 | 55,394.42 | 50,401.82 | 91.00% | Due to increase in public platform systems | | Accounts Payable | 352,392,850.97 | 250,305,689.56 | 102,087,161.41 | 40.78% | Due to increased procurement volume for renewable resources equipment | | Employee Compensation Payable | 12,249,980.71 | 24,636,035.23 | -12,386,054.52 | -50.28% | Due to payment of employee compensation accrued at the end of the previous year | | Interest Payable | 36,199.74 | 98,956.47 | -62,756.73 | -63.42% | Due to decrease in original bank loans | | Other Payables | 3,138,415.78 | 5,940,241.96 | -2,801,826.18 | -47.17% | Due to payment of expenses accrued at the end of the previous year | Income Statement Item Changes and Reasons (January-March 2018 vs. January-March 2017) | Income Statement Item | Jan-Mar 2018 (CNY) | Jan-Mar 2017 (CNY) | Change Amount (CNY) | Change Percentage | Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 330,284,051.22 | 252,788,580.68 | 77,495,470.54 | 30.66% | Due to increased business volume for renewable resources equipment | | Selling Expenses | 16,558,904.54 | 7,451,050.06 | 9,107,854.48 | 122.24% | Due to increased transportation costs | | Administrative Expenses | 29,241,672.80 | 20,810,144.49 | 8,431,528.31 | 40.52% | Due to increased R&D expenses and consolidation of Suzhou Nifeng Hangzhi | | Financial Expenses | 631,096.31 | -22,962.68 | 654,058.99 | 2848.36% | Due to changes in foreign exchange rates | | Asset Impairment Losses | -65,703.74 | 354,871.52 | -420,575.26 | -118.51% | Recovery of receivables from Longhangtou | | Non-operating Income | 195,705.27 | 1,210,312.61 | -1,014,607.34 | -83.83% | Due to increased government subsidies | Cash Flow Statement Item Changes and Reasons (January-March 2018 vs. January-March 2017) | Cash Flow Statement Item | Jan-Mar 2018 (CNY) | Jan-Mar 2017 (CNY) | Change Amount (CNY) | Change Percentage | Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -24,738,504.07 | 39,926,033.57 | -64,664,537.64 | -161.96% | Due to increased procurement volume for renewable resources equipment | | Net Cash Flow from Investing Activities | -56,556,001.31 | 34,918,986.84 | -91,474,988.15 | -261.96% | Due to decrease in matured wealth management products | | Net Cash Flow from Financing Activities | -229,440.60 | -15,483,624.41 | 15,254,183.81 | 98.52% | Due to decreased repayment of bank loans | Progress of Significant Events During the reporting period, there were no significant events requiring explanation regarding their progress, impact, or solutions - The company had no significant events requiring analysis of their progress, impact, or solutions during the reporting period[17] Unfulfilled Commitments No overdue unfulfilled commitments by the company, its actual controllers, shareholders, or related parties were reported during the period - During the reporting period, there were no overdue unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself[18] H1 2018 Operating Performance Forecast The company projects H1 2018 net profit attributable to shareholders to increase 114.96% to 152.90%, driven by market recovery and surging renewable resources orders Forecast of Net Profit Attributable to Shareholders for Jan-Jun 2018 | Indicator | Range | | :--- | :--- | | Change in Net Profit Attributable to Shareholders for Jan-Jun 2018 | 114.96% to 152.90% | | Net Profit Attributable to Shareholders for Jan-Jun 2018 (CNY 10,000) | 8,500 to 10,000 | | Net Profit Attributable to Shareholders for Jan-Jun 2017 (CNY 10,000) | 3,954.21 | - The performance change is attributed to the market recovery in the renewable resources sector, leading to a surge in company orders and ample backlog, with a large volume of orders entering the delivery period during the reporting period, significantly increasing net profit attributable to shareholders compared to the prior year[19] Financial Assets Measured at Fair Value During the reporting period, the company held no financial assets measured at fair value - The company had no financial assets measured at fair value during the reporting period[20] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[20] Non-operating Fund Occupation by Controlling Shareholder and Related Parties No non-operating fund occupation by the controlling shareholder or related parties from the listed company occurred during the period - During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or its related parties from the listed company[21] Registration of Research, Communication, and Interview Activities During the reporting period, the company did not engage in any research, communication, or interview activities - The company did not engage in any research, communication, or interview activities during the reporting period[22]