HPGC(SH:600664)2022-10-26 16:00Main Financial Data Core Financial Indicators The company's net profit attributable to shareholders significantly declined by 67.85% to RMB 156 million in the first three quarters of 2022, despite a slight revenue increase, primarily due to non-recurring items Key Financial Data for the First Three Quarters of 2022 | Indicator | Year-to-Date (RMB) | Y-o-Y Change (%) | Current Period (RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 9.99 billion | 2.58% | 3.57 billion | 7.24% | | Net Profit Attributable to Shareholders of Listed Company | 156.42 million | -67.85% | 34.39 million | -76.19% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 123.72 million | -62.96% | 13.67 million | -89.81% | | Net Cash Flow from Operating Activities | 143.77 million | Not applicable | - | Not applicable | | Basic Earnings Per Share (RMB/share) | 0.06 | -68.42% | 0.01 | -83.33% | | Total Assets (Period-End) | 13.03 billion | 1.46% (vs. prior year-end) | - | - | Non-Recurring Gains and Losses for the First Three Quarters of 2022 | Item | Year-to-Date Amount (RMB) | Current Period Amount (RMB) | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 8.95 million | 7.46 million | | Government Grants | 32.13 million | 11.58 million | | Other Non-operating Income/Expenses | 1.55 million | 9.20 million | | Total | 32.70 million | 20.72 million | Analysis of Key Financial Indicator Changes Significant changes in financial indicators include a 77.36% increase in prepayments and a 35.57% rise in selling expenses, while net profit attributable to the parent company sharply declined by 67.85% due to pandemic impacts and a high prior-year base Reasons for Changes in Key Accounting Data and Financial Indicators | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Prepayments | 77.36 | Due to increased advance payments for goods in the current period | | Selling Expenses | 35.57 | Increased investment in selling expenses in the current period due to new business segments added in H2 2021 | | Non-operating Income | 329.64 | Due to subsidiary's cleanup of unpayable accounts | | Net Cash Flow from Investing Activities | -94.86 | Due to reduced disposal of idle assets and increased cash outflow for purchasing fixed and intangible assets compared to the prior period | | Net Profit Attributable to Shareholders of Listed Company | -67.85 | Main business sales decreased due to pandemic; non-operating gains/losses included asset disposal gains and employment stabilization subsidies in the prior period | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | -62.96 | Mainly due to restricted shipments during the pandemic, leading to decreased sales in the industrial sector | Shareholder Information Shareholding Status of Shareholders As of Q3 2022, the company had 113,055 common shareholders, with controlling shareholder Harbin Pharmaceutical Group Co., Ltd. holding 46.47% of shares, of which approximately 79% are pledged - As of the end of the reporting period, the company had a total of 113,055 common shareholders13 Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholding Ratio (%) | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | | Harbin Pharmaceutical Group Co., Ltd. | 46.47 | 1,173,237,023 | Pledged 926,857,248 shares | | China Securities Investor Protection Fund Co., Ltd. | 2.21 | 55,725,125 | None | | Xia Chongyang | 1.40 | 35,300,000 | None | | Zhejiang Provincial Financial Development Co., Ltd. | 0.95 | 23,883,418 | None | | Sun Kun | 0.91 | 23,000,000 | None | | Harbin Tianxiang Weiye Investment Co., Ltd. | 0.46 | 11,700,000 | Frozen 11,700,000 shares | Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2022, total assets reached RMB 13.03 billion (up 1.46%), total liabilities were RMB 8.39 billion, and equity attributable to parent company owners increased by 4.55% to RMB 4.02 billion Key Items of Consolidated Balance Sheet (Unit: RMB) | Item | September 30, 2022 | December 31, 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 13.03 billion | 12.84 billion | 1.46% | | Total Current Assets | 9.07 billion | 8.73 billion | 3.83% | | Total Non-current Assets | 3.96 billion | 4.11 billion | -3.57% | | Total Liabilities | 8.39 billion | 8.42 billion | -0.35% | | Total Current Liabilities | 7.85 billion | 7.85 billion | -0.10% | | Total Equity Attributable to Parent Company Owners | 4.02 billion | 3.85 billion | 4.55% | Consolidated Income Statement In the first three quarters of 2022, total operating revenue grew by 2.58% to RMB 9.99 billion, but a 35.57% increase in selling expenses and significantly lower asset disposal gains led to a 67.85% decline in net profit attributable to the parent company to RMB 156 million Key Items of Consolidated Income Statement (Unit: RMB) | Item | First Three Quarters of 2022 | First Three Quarters of 2021 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 9.99 billion | 9.74 billion | 2.58% | | Total Operating Costs | 9.68 billion | 9.17 billion | 5.54% | | Of which: Selling Expenses | 1.20 billion | 881.81 million | 35.57% | | Asset Disposal Gains | 9.36 million | 139.05 million | -93.27% | | Operating Profit | 320.47 million | 700.67 million | -54.27% | | Total Profit | 322.02 million | 685.06 million | -53.00% | | Net Profit | 197.87 million | 529.22 million | -62.61% | | Net Profit Attributable to Parent Company Shareholders | 156.42 million | 486.51 million | -67.85% | Consolidated Cash Flow Statement In the first three quarters of 2022, operating cash flow improved from a RMB 156 million net outflow to a RMB 144 million net inflow, while investing cash flow significantly decreased by 94.86%, and financing cash flow turned positive due to increased borrowings Key Items of Consolidated Cash Flow Statement (Unit: RMB) | Item | First Three Quarters of 2022 | First Three Quarters of 2021 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 143.77 million | -156.13 million | | Net Cash Flow from Investing Activities | 4.98 million | 96.97 million | | Net Cash Flow from Financing Activities | 144.69 million | -9.36 million | | Net Increase in Cash and Cash Equivalents | 298.04 million | -69.30 million | | Cash and Cash Equivalents at Period-End | 1.49 billion | 827.70 million | - The improvement in operating cash flow is attributed to the company's enhanced inventory control, integrated management of collections and payments, and optimized allocation of receipts and disbursements, improving cash flow management quality12