HZIS(SH:600126)2025-10-24 08:15Financial Performance - The company's operating revenue for the third quarter reached ¥15,848,193,594.78, an increase of 7.70% compared to the same period last year[5] - The net profit attributable to shareholders was ¥214,828,464.98, with a year-to-date net profit of ¥100,602,297.73, reflecting a decrease of 5.67% compared to the previous year[5] - The net cash flow from operating activities was ¥2,442,474,967.10, showing a significant increase of 30.97% year-on-year[5] - The weighted average return on equity increased by 3.17 percentage points to 1.11% compared to the previous year[6] - The total profit and net profit attributable to the parent company saw significant improvement, driven by Ningbo Steel's turnaround and investment income from the transfer of recycling resources and technology equity[11] - Operating profit for the first three quarters of 2025 was CNY 124.03 million, a significant improvement from a loss of CNY 372.24 million in the same period of 2024[22] - Net profit for the first three quarters of 2025 reached CNY 110.90 million, compared to a loss of CNY 374.46 million in the previous year[22] - The net profit for the first three quarters of 2025 is CNY 99,678,352.45, a significant recovery from a net loss of CNY 446,827,946.42 in the same period of 2024[23] - The total comprehensive income for the first three quarters of 2025 is CNY 98,166,629.96, compared to a total comprehensive loss of CNY 455,206,869.01 in 2024[23] - The company reported investment income of CNY 181,670,358.65 for the first three quarters of 2025, compared to CNY 135,852,668.72 in 2024, an increase of 33.73%[32] Assets and Liabilities - Total assets at the end of the reporting period were ¥33,667,909,363.65, representing a 1.97% increase from the end of the previous year[6] - Total assets as of September 30, 2025, amounted to CNY 33.67 billion, an increase from CNY 33.02 billion at the end of 2024[19] - Total liabilities as of September 30, 2025, were CNY 13.92 billion, compared to CNY 13.42 billion at the end of 2024, reflecting a 3.7% increase[19] - The company’s total current assets as of September 30, 2025, are CNY 7,572,543,969.02, an increase from CNY 7,064,997,814.49 at the end of 2024[27] - Total liabilities amounted to CNY 4,665,087,302.14, up from CNY 4,312,816,209.94, indicating an increase of 8.16%[29] Cash Flow - The total net cash flow from operating activities increased to 1,089.81 million RMB, primarily due to a 16.08% increase in cash received from sales of goods and services[11] - Cash and cash equivalents increased to CNY 9.03 billion as of September 30, 2025, up 34.4% from CNY 6.73 billion at the end of 2024[18] - Cash flow from operating activities showed a net outflow of CNY -5,033,374.69, contrasting with a net inflow of CNY 119,036,660.47 in the previous year[35] - Investment activities generated a net cash inflow of CNY 1,003,196,664.84, compared to a net outflow of CNY -1,854,886,683.25 in the same period last year[35] - The net cash flow from investing activities for the first three quarters of 2025 is -CNY 463,304,332.13, an improvement from -CNY 2,554,880,020.90 in 2024[26] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 218,814[13] - The largest shareholder, Hangzhou Steel Group Co., Ltd., holds 1,527,508,156 shares, representing 45.23% of the total shares[14] Investments and Equity - The company made a significant investment of ¥500 million in a resource recycling company during the reporting period, leading to a 3,593.06% increase in long-term equity investments[10] - The company recognized an investment income increase of 485.88% due to the transfer of equity in the recycling resource and technology companies[10] - The company experienced a 30.31% increase in minority shareholders' equity, influenced by the transfer of 97% equity in a recycling resource company[10] - The company completed the transfer of 97% equity in its subsidiary Zhejiang New Century Recycling Development Co., Ltd. for 220,975,403.05 RMB and 100% equity in Zhejiang Deqing Hangang Fuchun Recycling Technology Co., Ltd. for 287,213,507.51 RMB[16] Expenses and Income - The company experienced a significant increase in non-operating expenses, totaling 267.55 million RMB, primarily due to litigation losses recognized by its recycling subsidiary[11] - The company reported a decrease of 44.62% in other income, mainly due to reduced government subsidies received by its subsidiaries[10] - The company’s income tax expense decreased by 84.49 million RMB compared to the same period last year[11] - The company reported an increase in asset impairment losses, totaling 283.63 million RMB, mainly due to higher inventory write-downs[11] - The company’s financial expenses included interest expenses of CNY 36,346,212.43, down from CNY 90,400,157.76 in the previous year, showing a decrease of 59.83%[31] Future Outlook - The company aims to optimize its asset structure and focus on its core steel business and digital economy by divesting from non-core subsidiaries[16] - The new accounting standards or interpretations will be implemented starting from 2025, affecting the financial statements at the beginning of the year[36] - The announcement was made by the Board of Directors of Hangzhou Iron & Steel Co., Ltd. on October 23, 2025[37]