Financial Performance - For the nine months ended September 30, 2022, the company's revenue was RMB 470,361,000, an increase of 21.6% compared to RMB 386,823,000 for the same period in 2021[6] - The cost of sales for the same period was RMB 483,254,000, resulting in a gross loss of RMB 12,893,000, compared to a gross profit of RMB 7,065,000 in 2021[6] - The company reported a net loss of RMB 24,868,000 for the nine months ended September 30, 2022, compared to a net loss of RMB 6,947,000 for the same period in 2021[6] - The basic and diluted loss per share for the nine months was RMB 2.28, compared to RMB 0.76 for the same period in 2021[8] - The total comprehensive loss for the period was RMB 24,938,000, compared to RMB 7,062,000 in the same period last year[8] - The company incurred a loss of RMB 21,006,000 during the nine months ended September 30, 2022, compared to a loss of RMB 6,451,000 for the same period in 2021, reflecting increased operational challenges[10] - The group reported a loss attributable to owners of the company of RMB 21,062,000 for the nine months ended September 30, 2022, compared to a loss of RMB 6,451,000 for the same period in 2021[34] Revenue and Sales - The revenue from wire and cable production and sales was RMB 171,857,000, while aluminum product sales generated RMB 298,504,000, indicating strong performance in both segments[21] - The group's revenue for the nine months ended September 30, 2022, was approximately RMB 470.4 million, an increase of about 21.6% compared to the same period in 2021[43] Costs and Expenses - Financing costs increased to RMB 10,527,000 from RMB 6,601,000, representing a rise of 59.5% year-on-year[6] - The company incurred administrative and other expenses of RMB 16,201,000, slightly up from RMB 15,957,000 in the previous year[6] - Sales costs increased from RMB 379.8 million for the nine months ended September 30, 2021, to RMB 483.3 million for the same period in 2022, an increase of RMB 103.5 million or 27.3%[44] - The cost of inventory recognized as an expense for the nine months ended September 30, 2022, was RMB 483,254,000, up 27% from RMB 379,758,000 in the same period of 2021[27] Other Income and Gains - Other income and gains for the nine months were RMB 15,422,000, up from RMB 9,349,000 in the previous year, reflecting a growth of 65.5%[6] - Other income and gains totaled RMB 15,422,000 for the nine months ended September 30, 2022, compared to RMB 9,349,000 in the previous year, driven by government grants and interest income[23] - Other income and gains increased from approximately RMB 9.3 million for the nine months ended September 30, 2021, to about RMB 15.4 million for the same period in 2022[47] Shareholder Information - As of September 30, 2022, the company’s major shareholder, Red Fly Investment Limited, holds 351,280,000 shares, representing 38.18% of the total shares[64] - The company’s director, Mr. Dang Fei, holds 351,280,000 shares through controlled entities, equating to 38.18% ownership[65] - Mr. Wang Xiaozhong holds 99,760,000 shares, which is 10.84% of the total shares[64] Governance and Compliance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15, except for the separation of roles between the Chairman and CEO, which is deemed appropriate by the board[59] - The company has appointed a compliance advisor in accordance with GEM Listing Rules, ensuring adherence to regulatory requirements[62] - The company has maintained full compliance with the trading code for directors, with no reported breaches[61] - The board consists of experienced members, including three independent non-executive directors, ensuring a balance of power and authority[59] Future Outlook and Strategies - The company aims to enhance its market presence and is exploring new strategies for expansion, although specific details were not disclosed in the report[6] - The management is focused on improving operational efficiency and reducing costs to mitigate losses in future quarters[6] - The group is actively seeking opportunities to expand its influence in Southwest China and reduce regional concentration, potentially including expansion into other segments of the aluminum industry[38] - The group is evaluating various opportunities for business expansion and will notify investors and shareholders upon any actionable opportunities[38] Production and Operations - The company experienced a temporary production halt due to energy shortages caused by severe heatwaves and droughts in Central and Western China during July to September 2022[45] - The company’s operational focus remains on the production and sales of wires, cables, and aluminum products, with no separate reporting segments due to resource integration[17] - The company’s main operational base is located in Guangyuan, Sichuan Province, China, emphasizing its regional manufacturing capabilities[12] Dividends and Investments - The group has not declared an interim dividend for the nine months ended September 30, 2022[33] - The company did not declare any dividends for the nine months ended September 30, 2022, consistent with the previous year[57] - There were no significant investments, acquisitions, or disposals of subsidiaries or joint ventures during the nine months ended September 30, 2022[55] Accounting and Audit - The company's financial statements for the nine months ending September 30, 2022, were not audited but were reviewed by the audit committee, confirming compliance with applicable accounting standards and GEM listing rules[74] - The audit committee was established on June 10, 2020, consisting of three independent non-executive directors, with Mr. Chen Aifa serving as the chairman[74] Market Conditions - The average price of aluminum increased significantly during the period, impacting material costs, with the London Metal Exchange reporting an international aluminum price of approximately USD 2,800 per ton at the end of 2021, peaking at about USD 4,000 per ton in March 2022[44] - The group anticipates a gradual decline in raw material costs, benefiting from a 30% VAT refund and subsidies from the Ya'an local government[38] Miscellaneous - The company is currently evaluating the impact of new accounting standards but has not identified any significant financial impact on its operations[16] - The company has not disclosed any new product developments or market expansion strategies in the current report[68] - No significant events requiring disclosure occurred after September 30, 2022, up to the report date[72] - The report will be available on the Hong Kong Stock Exchange website and the company's website for at least 7 days from the publication date[76]
中国蜀塔(08623) - 2022 Q3 - 季度财报