ST康美(600518) - 2022 Q3 - 季度财报

Major Financial Data The company experienced a significant decline in financial performance in the first three quarters of 2022, marked by revenue decrease, substantial net losses, and adverse changes in key financial indicators due to major litigation and operational factors Key Accounting Data and Financial Indicators In the first three quarters of 2022, the company's operating performance declined, with revenue decreasing by 11.80% year-on-year and net profit attributable to shareholders recording a significant loss of CNY 885.77 million, while total assets and shareholders' equity also decreased from the end of the previous year Key Financial Indicators for the First Three Quarters of 2022 | Indicator | Year-to-Date (YTD) | YTD Change vs. Prior Period (%) | | :--- | :--- | :--- | | Operating Revenue | CNY 2,721,807,708.62 | -11.80% | | Net Profit Attributable to Shareholders | CNY -885,770,196.43 | N/A | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | CNY -322,030,545.55 | N/A | | Net Cash Flow from Operating Activities | CNY -336,964,904.38 | -410.31% | | Basic Earnings Per Share (CNY/share) | -0.064 | N/A | | Indicator | As of Report Period End | Change vs. Prior Year-End (%) | | Total Assets | CNY 15,562,044,201.81 | -3.07% | | Shareholders' Equity Attributable to Listed Company | CNY 9,032,649,451.71 | -9.01% | Non-Recurring Gains and Losses Items and Amounts During the reporting period, non-recurring gains and losses significantly impacted net profit, totaling a loss of CNY 564 million year-to-date, primarily due to provisions for liabilities from a financial loan contract dispute case, resulting in approximately CNY 600 million in contingent losses - The company recognized approximately CNY 600 million in provisions for liabilities due to the first-instance judgment in a financial loan contract dispute case, which is the primary reason for the substantial non-recurring loss[7] Major Non-Recurring Gains and Losses Items (Year-to-Date) | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains and losses from contingent events unrelated to normal business operations | -600,447,962.18 | Primarily provisions for liabilities from financial loan contract dispute case | | Government grants recognized in current profit or loss | 29,077,387.06 | Government grants | | Debt restructuring gains and losses | -11,255,061.29 | - | | Other non-operating income and expenses not listed above | 22,042,276.94 | - | | Total | -563,739,650.88 | - | Analysis of Major Financial Indicator Changes Several financial indicators experienced significant fluctuations, with other current liabilities and non-operating expenses surging due to provisions for major litigation, while finance costs sharply decreased following bankruptcy reorganization, and operating cash flow significantly deteriorated due to reduced sales collections and prior-year tax payments - Finance costs decreased by 102.29% year-on-year, primarily due to a significant reduction in interest-bearing debt after the company's bankruptcy reorganization[9] - Other current liabilities and non-operating expenses surged by 358.45% and 32945.70% respectively, mainly due to provisions for liabilities related to the Bohai International Trust financial loan contract dispute case based on the first-instance court judgment during the reporting period[9][11] - Net cash flow from operating activities decreased by 410.31% year-on-year, primarily due to reduced cash received from sales of goods and the payment of prior-year income tax arising from bankruptcy reorganization gains[11] - Research and development expenses increased by 70.48% year-on-year, indicating increased investment in R&D projects during the reporting period[9] Shareholder Information As of the reporting period end, the company had 177,922 common shareholders, with Guangdong Shennongshi Enterprise Management Partnership as the largest shareholder, while the former controlling shareholder's shares are fully pledged Shareholding of Shareholders As of the reporting period end, the company had 177,922 common shareholders, with Guangdong Shennongshi Enterprise Management Partnership (Limited Partnership) as the largest shareholder at 25.31%, and former controlling shareholder Kangmei Industrial Investment Holding Co., Ltd. holding 5.21% as the second largest, with all its shares pledged - As of the end of the reporting period, the company had a total of 177,922 common shareholders[12] Top Three Shareholders' Shareholding | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Guangdong Shennongshi Enterprise Management Partnership (Limited Partnership) | 3,509,413,788 | 25.31 | | Kangmei Industrial Investment Holding Co., Ltd. | 723,176,677 | 5.21 | | China Construction Bank Corporation Guangdong Branch | 653,206,909 | 4.71 | - The 723,176,677 shares held by the second largest shareholder, Kangmei Industrial Investment Holding Co., Ltd., have all been pledged[12] Other Important Matters The company completed preferred share redemption and delisting, disclosed progress on major litigations including a significant provision for liabilities, and noted the expiration of a voting rights entrustment and the bankruptcy liquidation of its former controlling shareholder Redemption and Delisting of Preferred Shares The company completed the full redemption and cancellation of its non-publicly issued preferred shares 'Kangmei You 1' on July 13, 2022, terminating their transfer service on the Shanghai Stock Exchange as part of its reorganization plan - In accordance with the company's reorganization plan, the full redemption and delisting of non-publicly issued preferred shares 'Kangmei You 1' have been completed, with the redeemed shares cancelled on July 13, 2022[14] Progress of Major Litigation The company disclosed progress on two major litigations involving Bohai International Trust, with one ordinary bankruptcy claim confirmation dispute case reaching a final judgment upholding the original verdict, and another financial loan contract dispute case resulting in an unfavorable first-instance judgment, leading the company to appeal and prudently recognize approximately CNY 605 million in provisions for liabilities, significantly impacting current year net profit - Regarding the ordinary bankruptcy claim confirmation dispute between Bohai Trust and the company, the Guangdong Provincial High People's Court issued a final judgment, rejecting Bohai Trust's appeal and upholding the original verdict[16] - In another financial loan contract dispute case with Bohai Trust, the first-instance judgment required the company's related parties to repay a substantial principal and interest amount; the company has appealed, but based on prudence, has recognized provisions for liabilities of CNY 604.99 million according to the first-instance judgment[18] - This provision for liabilities is expected to reduce the company's net profit attributable to shareholders by CNY 604.99 million for the current year[18] Shareholders' Equity Change The 'Voting Rights Transfer Agreement' signed between Kangmei Industrial and its concerted parties and Yilin Pharmaceutical expired on September 18, 2022, restoring the voting rights corresponding to the 1.005 billion shares held by Kangmei Industrial and its concerted parties - The voting rights transfer agreement between Kangmei Industrial and its concerted parties and Jieyang Yilin Pharmaceutical Investment Co., Ltd. expired, restoring the voting rights for the 1,005,120,793 shares held by Kangmei Industrial and its concerted parties[19] Kangmei Industrial Bankruptcy Liquidation The company's former controlling shareholder, Kangmei Industrial Investment Holding Co., Ltd., was ruled by the Jieyang Intermediate People's Court of Guangdong Province to accept its bankruptcy liquidation application due to inability to repay due debts and insolvency, with an administrator already appointed - Due to its inability to repay due debts and insolvency, Kangmei Industrial Investment Holding Co., Ltd. was ruled by the Jieyang Intermediate People's Court to accept its bankruptcy liquidation application[20][21] Quarterly Financial Statements The quarterly financial statements reveal a decline in total assets and shareholders' equity, significant net losses driven by increased non-operating expenses, and negative operating cash flow due to reduced sales and increased tax payments Consolidated Balance Sheet As of September 30, 2022, the company's total assets were CNY 15.56 billion, a 3.07% decrease from the prior year-end; total liabilities were CNY 6.49 billion; and total equity attributable to owners of the parent company was CNY 9.03 billion, a 9.01% decrease from the prior year-end, indicating a relatively stable asset-liability structure but reduced shareholders' equity due to losses Key Items from Consolidated Balance Sheet (Unit: CNY) | Item | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Assets | 15,562,044,201.81 | 16,054,259,253.19 | | Total Liabilities | 6,487,608,266.88 | 6,085,784,787.38 | | Total Equity Attributable to Owners of Parent Company | 9,032,649,451.71 | 9,926,555,018.46 | | Total Shareholders' Equity | 9,074,435,934.93 | 9,968,474,465.81 | Consolidated Income Statement In the first three quarters of 2022, the company achieved operating revenue of CNY 2.72 billion, a 11.80% year-on-year decrease; due to a surge in non-operating expenses from provisions for major litigation, total profit was CNY -877 million, and net loss attributable to parent company shareholders reached CNY 886 million Key Items from Consolidated Income Statement (Unit: CNY) | Item | First Three Quarters of 2022 (Jan-Sep) | First Three Quarters of 2021 (Jan-Sep) | | :--- | :--- | :--- | | Total Operating Revenue | 2,721,807,708.62 | 3,086,034,284.80 | | Operating Profit | -296,886,015.90 | -1,003,730,820.89 | | Non-Operating Expenses | 608,744,991.25 | 1,842,130.46 | | Total Profit | -876,727,472.61 | -998,477,197.48 | | Net Profit Attributable to Owners of Parent Company | -885,770,196.43 | -1,024,589,865.52 | Consolidated Cash Flow Statement In the first three quarters of 2022, the company's cash flow was unfavorable, with net cash flow from operating activities at CNY -337 million, turning negative year-on-year due to reduced sales collections and increased tax payments, while both investing and financing activities resulted in net cash outflows, leading to a CNY 405 million decrease in cash and cash equivalents from the beginning of the period Key Items from Consolidated Cash Flow Statement (Unit: CNY) | Item | First Three Quarters of 2022 (Jan-Sep) | First Three Quarters of 2021 (Jan-Sep) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -336,964,904.38 | 108,590,934.19 | | Net Cash Flow from Investing Activities | -12,766,125.95 | 975,992,806.16 | | Net Cash Flow from Financing Activities | -55,656,906.48 | -915,042,844.55 | | Net Increase in Cash and Cash Equivalents | -405,384,999.53 | 169,558,739.67 |