GACO(SH:600523)2021-10-22 16:00Major Financial Data Key Accounting Data and Financial Indicators In Q3 2021, the company's operating revenue decreased by 7.99% year-on-year, while year-to-date revenue grew by 12.79%; net profit attributable to shareholders decreased by 9.68% in Q3 but increased by 27.16% year-to-date, showing quarterly volatility versus annual growth; net cash flow from operating activities significantly increased by 174.78% year-to-date Key Financial Indicators for Q3 2021 and Year-to-Date | Item | Current Period (Q3) | YoY Change (%) in Current Period | Year-to-Date (YTD) | YoY Change (%) Year-to-Date | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 549,285,771.97 | -7.99 | 1,749,189,164.31 | 12.79 | | Net Profit Attributable to Shareholders (Yuan) | 42,774,954.72 | -9.68 | 128,963,573.26 | 27.16 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | 52,570,612.26 | 19.49 | 128,253,050.90 | 44.39 | | Net Cash Flow from Operating Activities (Yuan) | N/A | N/A | 179,553,856.98 | 174.78 | | Basic Earnings Per Share (Yuan/Share) | 0.11 | -8.33 | 0.32 | 28.00 | | Total Assets (Period-end) (Yuan) | 3,376,050,878.81 | 3.63 (vs. end of prior year) | | | | Shareholders' Equity Attributable to Listed Company (Period-end) (Yuan) | 2,674,862,156.40 | 1.90 (vs. end of prior year) | | | Non-recurring Gains and Losses Items and Amounts In the current period, total non-recurring gains and losses amounted to -9.80 million Yuan, primarily due to a -13.42 million Yuan loss from fair value changes in financial assets, partially offset by 2.31 million Yuan in government grants; year-to-date, total non-recurring gains and losses were 0.71 million Yuan, mainly from 6.94 million Yuan in government grants and -4.28 million Yuan in fair value changes of financial assets Details of Non-recurring Gains and Losses Items | Item | Current Period Amount (Yuan) | Year-to-Date Amount (Yuan) | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -341,780.90 | -1,024,430.71 | | Government Grants Included in Current Period P&L | 2,307,347.84 | 6,935,897.24 | | Fair Value Change Gains/Losses, etc | -13,419,127.48 | -4,279,541.04 | | Other Non-operating Income and Expenses | -30,762.29 | -490,207.96 | | Total | -9,795,657.53 | 710,522.37 | Analysis of Significant Changes in Key Financial Indicators Several key financial indicators experienced significant year-on-year changes during the reporting period; contract liabilities surged by 1348.62% due to increased advance product payments, directly driving a 174.78% increase in net cash flow from operating activities; construction in progress grew by 102.81% due to new project investments, and investment income soared by 11216.54% from recognized dividends from associate companies Significant Changes in Key Financial Indicators and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Contract Liabilities | 1,348.62 | Increase in advance product payments | | Net Cash Flow from Operating Activities | 174.78 | Increase in advance product payments in current period | | Other Receivables | 158.77 | Dividends receivable from associate companies by Huayang Electric Co | | Construction in Progress | 102.81 | Increase in new projects | | Investment Income | 11,216.54 | Recognition of dividends from associate companies in current period | | Fair Value Change Gains | -130.27 | Decrease in fair value of associate companies recognized in current period | Shareholder Information Shareholding Status of Shareholders As of the end of the reporting period, the company had 15,347 common shareholders; the top two shareholders, China Aviation Automobile Systems Holding Co., Ltd. and China Guizhou Aviation Industry (Group) Co., Ltd., are state-owned legal entities under the same ultimate controller, holding a combined 46.29%, indicating a relatively concentrated equity structure - As of the end of the reporting period, the company had 15,347 common shareholders10 Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held | | :--- | :--- | :--- | :--- | | China Aviation Automobile Systems Holding Co., Ltd | State-owned Legal Entity | 37.01 | 149,623,188 | | China Guizhou Aviation Industry (Group) Co., Ltd | State-owned Legal Entity | 9.28 | 37,524,155 | | Guiyang Industrial Investment Group Co., Ltd | State-owned Legal Entity | 6.24 | 25,234,177 | | Linglong Group Co., Ltd | Unknown | 3.09 | 12,492,400 | - The top two shareholders are under the same ultimate controller, with no associated relationship with other shareholders11 Other Significant Matters Other Significant Matters During the reporting period, the company actively pursued several equity and organizational structure adjustments, including the conversion of Hongyang Sealing Company into a wholly-owned subsidiary (completed and consolidated in May), the acquisition of a 5.96% minority stake in controlling subsidiary Tianjin Daqi Company (state-owned asset filing completed), and plans to inject equity from two sealing subsidiaries into an associated party (asset appraisal filing in progress) - The company is undergoing a series of organizational structure and equity adjustments, primarily involving subsidiaries12 - Hongyang Sealing Company Restructuring: Converted into a wholly-owned subsidiary and consolidated in May 2021 - Acquisition of Minority Stake: State-owned asset filing completed for the acquisition of a 5.96% stake in controlling subsidiary Tianjin Daqi Company - Capital Increase for Associated Party: Plans to inject equity from Guizhou Hongyang and Shanghai Hongyang, two sealing subsidiaries, into an associated party; asset appraisal filing is in progress Quarterly Financial Statements Audit Opinion The quarterly financial statements are unaudited - The quarterly financial statements are unaudited313 Financial Statements This section presents core data from the consolidated balance sheet as of September 30, 2021, and the consolidated income statement and consolidated cash flow statement for January-September 2021 Consolidated Balance Sheet As of September 30, 2021, total assets were 3.38 billion Yuan, up 3.63% from the prior year-end; total liabilities were 0.55 billion Yuan, up 14.40%, primarily driven by a significant increase in contract liabilities; shareholders' equity attributable to the listed company was 2.67 billion Yuan, up 1.90% from the prior year-end Key Items from Consolidated Balance Sheet | Item | September 30, 2021 (Yuan) | December 31, 2020 (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,376,050,878.81 | 3,257,885,054.37 | +3.63% | | Total Current Assets | 2,067,824,210.70 | 1,943,831,255.55 | +6.38% | | Total Non-current Assets | 1,308,226,668.11 | 1,314,053,798.82 | -0.44% | | Total Liabilities | 546,735,137.99 | 477,920,838.88 | +14.40% | | Total Current Liabilities | 519,249,065.21 | 452,802,421.20 | +14.68% | | Total Owners' Equity | 2,829,315,740.82 | 2,779,964,215.49 | +1.78% | | Owners' Equity Attributable to Parent Company | 2,674,862,156.40 | 2,624,867,567.92 | +1.90% | Consolidated Income Statement For the first three quarters of 2021, the company achieved operating revenue of 1.75 billion Yuan, a 12.79% year-on-year increase; operating costs increased by 11.37%, with a slight improvement in gross margin; during the period, administrative expenses and R&D expenses grew by 14.6% and 21.2% respectively; ultimately, net profit attributable to shareholders reached 0.13 billion Yuan, up 27.16% year-on-year Key Items from Consolidated Income Statement (Q1-Q3 2021) | Item | Jan-Sep 2021 (Yuan) | Jan-Sep 2020 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,749,189,164.31 | 1,550,900,741.80 | +12.79% | | Total Operating Costs | 1,604,233,632.54 | 1,435,549,171.98 | +11.75% | | Operating Profit | 159,694,216.61 | 124,460,640.62 | +28.31% | | Total Profit | 159,204,008.65 | 121,440,165.75 | +31.10% | | Net Profit | 134,406,707.85 | 106,701,310.45 | +25.97% | | Net Profit Attributable to Parent Company Shareholders | 128,963,573.26 | 101,415,418.03 | +27.16% | | Basic Earnings Per Share (Yuan/Share) | 0.32 | 0.25 | +28.00% | Consolidated Cash Flow Statement For the first three quarters of 2021, net cash flow from operating activities was 0.18 billion Yuan, a significant 174.78% year-on-year increase, primarily due to increased cash received from sales; net cash outflow from investing activities was 64.42 million Yuan, driven by increased expenditures on fixed asset purchases; net cash outflow from financing activities was 94.86 million Yuan, mainly for dividend distribution; cash and cash equivalents balance at period-end was 0.62 billion Yuan Key Items from Consolidated Cash Flow Statement (Q1-Q3 2021) | Item | Jan-Sep 2021 (Yuan) | Jan-Sep 2020 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 179,553,856.98 | 65,343,658.02 | +174.78% | | Net Cash Flow from Investing Activities | -64,417,684.97 | -50,956,819.88 | -26.42% | | Net Cash Flow from Financing Activities | -94,861,804.34 | -72,686,182.09 | -30.51% | | Net Increase in Cash and Cash Equivalents | 20,025,828.71 | -58,262,117.97 | N/A | | Cash and Cash Equivalents at Period-end | 620,099,656.12 | 447,731,139.08 | +38.50% | Impact of Initial Adoption of New Lease Standards The company adopted new lease standards from January 1, 2021, retrospectively adjusting the financial statements at the date of initial application (January 1, 2021) by recognizing 1.56 million Yuan in 'right-of-use assets' and corresponding liabilities of 1.07 million Yuan in 'non-current liabilities due within one year' and 0.49 million Yuan in 'lease liabilities', with no impact on owners' equity - The company adopted the new Lease Standard (CAS 21 – Leases) issued by the Ministry of Finance, effective January 1, 20212627 Adjustments on Initial Adoption Date of New Lease Standards | Adjustment Item | Adjusted Amount (Yuan) | | :--- | :--- | | Assets | | | Right-of-use Assets | +1,557,775.33 | | Liabilities | | | Non-current Liabilities Due Within One Year | +1,065,891.54 | | Lease Liabilities | +491,883.79 | | Total Impact | Assets and Liabilities both increased by 1,557,775.33 Yuan |