HPEC(SH:600312)2021-10-20 16:00Major Financial Data Key Accounting Data and Financial Indicators Q3 2021 revenue slightly decreased by 3.13% with net profit attributable to parent company shareholders down 20.83%, while year-to-date core net profit (excluding non-recurring items) increased by 50.39% Key Financial Indicators for Q3 and YTD 2021 | Indicator | Current Period (Q3) | Q3 YoY Change (%) | YTD (Q1-Q3) | Q1-Q3 YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Billion CNY) | 2.38 | -3.13% | 5.90 | 3.94% | | Net Profit Attributable to Parent Company Shareholders (Million CNY) | 48.24 | -20.83% | 104.42 | -9.73% | | Net Profit Attributable to Parent Company Shareholders Excluding Non-Recurring Gains and Losses (Million CNY) | 38.45 | 247.45% | 78.46 | 50.39% | | Net Cash Flow from Operating Activities (Million CNY) | Not Applicable | Not Applicable | -43.71 | -215.48% | | Basic EPS (CNY/share) | 0.0356 | -20.71% | 0.0770 | -9.62% | Key Balance Sheet Indicators as of September 30, 2021 | Indicator | As of Current Period End (Sep 30, 2021) | As of Prior Year End (Dec 31, 2020) | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | | Total Assets (Billion CNY) | 20.53 | 20.75 | -1.09% | | Total Equity Attributable to Parent Company Shareholders (Billion CNY) | 9.16 | 9.08 | 0.93% | Non-Recurring Gains and Losses Items and Amounts Non-recurring gains and losses for the first three quarters of 2021 totaled approximately 25.96 million CNY, primarily from government grants, significantly impacting the difference between reported and core net profit Non-Recurring Gains and Losses Items for YTD 2021 | Item | YTD Amount (Million CNY) | | :--- | :--- | | Government Grants Recognized in Current Period Profit/Loss | 18.51 | | Other Non-Operating Income and Expenses | 12.77 | | Total | 25.96 | Changes and Reasons for Major Accounting Data and Financial Indicators Significant changes in core net profit and operating cash flow are explained by a low prior-year base due to non-recurring items and temporary pandemic-related expense reductions, respectively - Net profit attributable to parent company shareholders excluding non-recurring gains and losses (current period) significantly increased by 247.45% year-on-year, primarily because the prior period included substantial non-recurring gains and losses from stability subsidies, resulting in a lower comparative base7 - Net cash flow from operating activities decreased by 215.48% year-on-year, mainly due to reduced expenditures such as travel and labor costs in the prior period caused by the pandemic, leading to lower cash outflows7 Shareholder Information Shareholder Status As of the reporting period end, the company had 63,462 common shareholders, with Pinggao Group Co., Ltd. as the controlling shareholder (40.50%), and a stable equity structure featuring prominent state-owned and asset management entities - As of the reporting period end, the company had a total of 63,462 common shareholders8 Top Five Shareholders' Shareholding Information | Shareholder Name | Shareholder Type | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | :--- | | Pinggao Group Co., Ltd. | State-owned Legal Entity | 549,497,573 | 40.50 | | China Great Wall Asset Management Co., Ltd. | State-owned Legal Entity | 34,000,000 | 2.51 | | Qingdao Urban Investment Financial Holdings Group Co., Ltd. | State-owned Legal Entity | 27,000,000 | 1.99 | | HuaAn Fund - ICBC - Guomin Trust | Other | 25,881,427 | 1.91 | | Shandong Hi-Speed Investment Holdings Co., Ltd. | State-owned Legal Entity | 22,000,000 | 1.62 | Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2021, total assets were 20.53 billion CNY (down 1.09%), with total liabilities at 11.02 billion CNY (debt-to-asset ratio 53.7%), and key components like accounts receivable and accounts payable remaining significant Key Balance Sheet Items (Billion CNY) | Item | Sep 30, 2021 | Dec 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and Cash Equivalents | 2.25 | 2.34 | -3.8% | | Accounts Receivable | 7.34 | 8.35 | -12.1% | | Inventories | 2.44 | 1.88 | +29.7% | | Total Assets | 20.53 | 20.75 | -1.1% | | Liabilities | | | | | Short-term Borrowings | 1.37 | 1.27 | +8.5% | | Notes Payable | 1.62 | 1.95 | -17.3% | | Accounts Payable | 6.22 | 6.45 | -3.7% | | Total Liabilities | 11.02 | 11.37 | -3.0% | | Shareholders' Equity | | | | | Equity Attributable to Parent Company | 9.16 | 9.08 | +0.9% | Consolidated Income Statement YTD 2021, total operating revenue grew 3.94% to 5.90 billion CNY, R&D expenses increased 20.62% to 150 million CNY, while financial expenses significantly decreased, resulting in a 9.73% decline in net profit attributable to parent company shareholders Key Income Statement Items (YTD 2021) | Item | Jan-Sep 2021 (Million CNY) | Jan-Sep 2020 (Million CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,903.24 | 5,679.59 | +3.94% | | Operating Cost | 5,177.79 | 5,007.45 | +3.40% | | R&D Expenses | 149.87 | 124.24 | +20.62% | | Financial Expenses | 23.24 | 43.08 | -46.05% | | Total Profit | 155.97 | 182.00 | -14.30% | | Net Profit Attributable to Parent Company Shareholders | 104.42 | 115.67 | -9.73% | Consolidated Cash Flow Statement YTD 2021, net cash flow from operating activities significantly decreased to -43.71 million CNY, while investing outflows expanded, and financing activities shifted to a net inflow due to reduced debt repayments, indicating operational pressure Key Cash Flow Statement Items (YTD 2021) | Item | Jan-Sep 2021 (Million CNY) | Jan-Sep 2020 (Million CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -43.71 | 37.85 | From positive to negative | | Net Cash Flow from Investing Activities | -42.24 | -31.82 | Net outflow increased | | Net Cash Flow from Financing Activities | 68.87 | -484.58 | From negative to positive | | Net Increase in Cash and Cash Equivalents | -18.49 | -478.72 | Net decrease narrowed | | Cash and Cash Equivalents at Period End (Billion CNY) | 1.62 | 1.07 | +50.9% | Adjustments for First-Time Adoption of New Lease Standards Effective January 1, 2021, the company adopted new lease standards, retrospectively recognizing 5.35 million CNY in "Right-of-Use Assets" and "Lease Liabilities," impacting total assets and liabilities equally - Due to the adoption of new lease standards, the company's balance sheet as of January 1, 2021, recognized new "Right-of-Use Assets" of 5.35 million CNY and new "Lease Liabilities" of 5.35 million CNY2324