AISINO CO.LTD.(SH:600271)2022-10-28 16:00Main Financial Data The company experienced significant declines in revenue and net profit in Q3 and YTD 2022 due to policy changes and pandemic impacts, while increasing R&D investment and optimizing cash flow management Key Accounting Data and Financial Indicators In Q3 and the first three quarters of 2022, the company faced performance pressure with a 17.61% decrease in Q3 operating revenue and a 59.30% decline in net profit attributable to parent company shareholders, while year-to-date operating revenue decreased by 6.11% and net profit by 32.02% Key Financial Indicators for Q1-Q3 2022 | Indicator | Current Period (Q3) (Billion yuan) | Year-to-Date (YTD) (Billion yuan) | YTD YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4.09 | 13.29 | -6.11% | | Net Profit Attributable to Shareholders | 0.069 | 0.360 | -32.02% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 0.175 | 0.547 | -32.06% | | Net Cash Flow from Operating Activities | N/A | -0.512 | 49.41% | | Basic Earnings Per Share (yuan/share) | 0.0370 | 0.1944 | -32.03% | | Weighted Average Return on Net Assets (%) | 0.51% | 2.70% | Decreased by 1.45 percentage points | Key Balance Sheet Indicators at Period End | Indicator | End of Current Period (Billion yuan) | End of Last Year (Billion yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 22.16 | 22.80 | -2.84% | | Owners' Equity Attributable to Shareholders | 13.44 | 13.35 | 0.67% | Non-recurring Gains and Losses Items and Amounts In the first three quarters of 2022, the company's non-recurring gains and losses totaled -186.62 million yuan, negatively impacting net profit, primarily due to fair value change losses from trading financial assets, partially offset by government grants Details of Non-recurring Gains and Losses for Q1-Q3 2022 | Item | Year-to-Date Amount (Million yuan) | | :--- | :--- | | Fair Value Change Gains/Losses from Trading Financial Assets, etc. | -226.70 | | Government Grants Included in Current Profit/Loss | 63.42 | | Gains/Losses from Disposal of Non-current Assets | 1.77 | | Other Gains/Losses Meeting the Definition of Non-recurring Items | 2.20 | | Other Non-operating Income and Expenses | -0.33 | | Total | -186.62 | Analysis of Changes in Key Financial Indicators The company's net profit decline is primarily attributed to policy changes affecting core tax control products and project delays due to the pandemic, while increased R&D investment and optimized procurement settlement methods aim to accelerate transformation and improve cash flow - Net profit attributable to shareholders decreased by 32.02% year-on-year, mainly due to changes in national anti-counterfeiting tax control policies impacting sales and service fees for Golden Tax Disk devices, and project slowdowns in smart and cybersecurity industries due to the pandemic8 Explanation of Significant Changes in Certain Financial Indicators | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Development Expenditures | 353.65% | The company accelerated transformation and upgrading, continuously increasing R&D investment | | Notes Payable | 144.87% | More procurement transactions utilized bill settlements | | Short-term Borrowings | -84.11% | Reduced credit borrowings by the parent company and subsidiaries | | Financial Expenses | -114.39% | The prior year included convertible bond interest payments, which are absent in the current period | | Net Cash Flow from Operating Activities | 49.41% | Increased use of notes payable for settlements reduced cash outflow from procurement activities | Shareholder Information As of the reporting period end, the company had 88,753 shareholders with a highly concentrated ownership structure, dominated by state-owned entities led by China Aerospace Science and Industry Corporation Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings As of the reporting period end, the company had 88,753 shareholders, with a highly concentrated equity structure where the largest shareholder, China Aerospace Science and Industry Corporation, held 40.02% of shares, and most top ten shareholders were state-owned entities - As of the end of the reporting period, the company had 88,753 common shareholders10 Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Number of Shares Held | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | China Aerospace Science and Industry Corporation | State-owned Legal Person | 741,448,172 | 40.02 | | China Aerospace Science and Industry Flight Technology Research Institute | State-owned Legal Person | 61,816,878 | 3.34 | | Beijing Aerospace AVIC Electronic Technology Co., Ltd. | State-owned Legal Person | 51,495,024 | 2.78 | | China Securities Finance Corporation Limited | Other | 39,598,918 | 2.14 | | Beijing Electromechanical Engineering General Design Department | State-owned Legal Person | 16,516,320 | 0.89 | | China Great Wall Industry Corporation | State-owned Legal Person | 14,817,400 | 0.80 | | Dacheng Fund - Agricultural Bank of China - Dacheng CSI Financial Asset Management Plan | Other | 14,794,566 | 0.80 | | GF Fund - Agricultural Bank of China - GF CSI Financial Asset Management Plan | Other | 14,794,566 | 0.80 | | Southern Fund - Agricultural Bank of China - Southern CSI Financial Asset Management Plan | Other | 14,794,566 | 0.80 | | Yinhua Fund - Agricultural Bank of China - Yinhua CSI Financial Asset Management Plan | Other | 14,792,906 | 0.80 | Quarterly Financial Statements The company's Q3 2022 financial statements show a slight decrease in total assets, a decline in revenue and net profit, and an improved operating cash flow despite overall net outflows Consolidated Balance Sheet As of September 30, 2022, the company's total assets were 22.16 billion yuan, a slight decrease of 2.84% from the end of the previous year, with significant increases in inventories and prepayments, a decrease in monetary funds, and notable shifts in short-term borrowings and notes payable on the liability side Consolidated Balance Sheet Key Items (Unit: Billion yuan) | Item | Sep 30, 2022 (Billion yuan) | Dec 31, 2021 (Billion yuan) | Change (Billion yuan) | | :--- | :--- | :--- | :--- | | Assets | | | | | Monetary Funds | 5.57 | 7.96 | -2.39 | | Inventories | 2.32 | 1.24 | +1.08 | | Accounts Receivable | 3.23 | 3.15 | +0.08 | | Total Assets | 22.16 | 22.80 | -0.64 | | Liabilities | | | | | Short-term Borrowings | 0.15 | 0.91 | -0.76 | | Notes Payable | 0.70 | 0.29 | +0.41 | | Accounts Payable | 2.08 | 2.21 | -0.13 | | Total Liabilities | 5.51 | 6.04 | -0.53 | | Owners' Equity | | | | | Owners' Equity Attributable to Parent Company | 13.44 | 13.35 | +0.09 | | Total Owners' Equity | 16.65 | 16.77 | -0.12 | Consolidated Income Statement In the first three quarters of 2022, the company's total operating revenue decreased by 6.11% to 13.29 billion yuan, leading to a 21.26% decline in operating profit and a 32.02% drop in net profit attributable to parent company shareholders despite controlled expenses Consolidated Income Statement Key Items (Unit: Billion yuan) | Item | Q1-Q3 2022 (Billion yuan) | Q1-Q3 2021 (Billion yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 13.29 | 14.16 | -6.11% | | Total Operating Cost | 11.98 | 12.40 | -3.36% | | Operating Cost | 9.87 | 10.26 | -3.75% | | R&D Expenses | 0.70 | 0.60 | +17.14% | | Financial Expenses | -0.02 | 0.11 | -114.68% | | Operating Profit | 1.19 | 1.51 | -21.26% | | Total Profit | 1.18 | 1.53 | -22.46% | | Net Profit Attributable to Parent Company Shareholders | 0.36 | 0.53 | -32.08% | Consolidated Cash Flow Statement In the first three quarters of 2022, the company's cash flow showed mixed trends, with operating cash flow improving to -0.51 billion yuan despite being a net outflow, while investment and financing activities also resulted in net outflows, ending the period with 5.39 billion yuan in cash and cash equivalents Consolidated Cash Flow Statement Key Items (Unit: Billion yuan) | Item | Q1-Q3 2022 (Billion yuan) | Q1-Q3 2021 (Billion yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -0.51 | -1.01 | | Net Cash Flow from Investing Activities | -0.14 | -0.33 | | Net Cash Flow from Financing Activities | -1.74 | -3.32 | | Net Increase in Cash and Cash Equivalents | -2.38 | -4.66 | | Cash and Cash Equivalents at Period End | 5.39 | 5.40 |