NJEC(SH:600699)2022-10-24 16:00Main Financial Data Key Accounting Data and Financial Indicators The company demonstrated strong performance in Q3 2022 with a 22.63% year-on-year increase in single-quarter operating revenue and a turnaround to net profit attributable to shareholders, while year-to-date operating revenue grew 4.80% and net profit attributable to shareholders surged 625.56%, with slight increases in total assets and shareholder equity at period-end Key Financial Indicators for Q3 2022 and Year-to-Date | Indicator | Current Period (Q3 2022) | Year-to-Date (Q1-Q3 2022) | Year-to-Date YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12.823 billion RMB | 35.743 billion RMB | 4.80% | | Net Profit Attributable to Shareholders of the Listed Company | 0.236 billion RMB | 0.131 billion RMB | 625.56% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-Recurring Gains and Losses) | 0.171 billion RMB | 0.253 billion RMB | 132.80% | | Net Cash Flow from Operating Activities | Not Applicable | 0.818 billion RMB | -23.89% | | Basic Earnings Per Share (Yuan/share) | 0.17 | 0.10 | 625.56% | Key Balance Sheet Data as of September 30, 2022 | Indicator | End of Current Period (2022-09-30) | End of Prior Year (2021-12-31) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 52.999 billion RMB | 51.327 billion RMB | 3.26% | | Total Equity Attributable to Shareholders of the Listed Company | 11.842 billion RMB | 11.373 billion RMB | 4.12% | Non-recurring Gains and Losses Items and Amounts The company's third-quarter non-recurring gains and losses totaled 64.98 million RMB, primarily from government grants and fair value changes in financial assets, while year-to-date non-recurring gains and losses amounted to -122 million RMB, negatively impacted by enterprise restructuring expenses (-207 million RMB) and other items (-147 million RMB) Details of Non-recurring Gains and Losses Items (Unit: RMB) | Item | Amount for Current Period | Amount Year-to-Date | | :--- | :--- | :--- | | Government Grants | 21,988,661.54 | 96,774,893.86 | | Gains and Losses from Changes in Fair Value of Financial Instruments | 28,422,738.07 | 32,829,841.60 | | Enterprise Restructuring Expenses | -5,633,456.98 | -207,232,285.00 | | Other Income/Expenses Meeting the Definition of Non-recurring Gains and Losses | 7,303,913.45 | -146,714,793.91 | | Total | 64,980,310.72 | -122,264,257.01 | Analysis of Changes in Financial Indicators The company's significant net profit growth is primarily attributed to the new energy and intelligent trends in the automotive industry, strong recovery in the Chinese market, high growth in both automotive electronics and safety businesses in Q3, continuous gross margin improvement, and robust new order acquisition, especially in the new energy vehicle sector - Third-quarter performance growth drivers include automotive electronics business with single-quarter revenue of approximately 4.1 billion RMB, a 30% year-on-year increase, and gross margin improving to approximately 21.3%, alongside automotive safety business with single-quarter revenue of approximately 8.7 billion RMB, a 19% year-on-year increase, and gross margin improving to approximately 10.5%, achieving a turnaround to profit9 - The company effectively controlled management and sales expenses through measures such as stabilizing supply, controlling expenditures, improving efficiency, and cost shifting, driving continuous improvement in single-quarter gross margin9 - Since 2022, the company has accumulated new orders exceeding 70 billion RMB, with new orders in the new energy vehicle sector accounting for over 50%, demonstrating rapid growth11 Shareholder Information Shareholding Status of Shareholders As of the end of Q3 2022, the company had 102,196 common shareholders, with Joyson Group Co Ltd as the controlling shareholder holding 34.85% and Mr Wang Jianfeng as the actual controller, while Joyson Group Co Ltd and Zhejiang Rongzhen Asset Management Co Ltd among the top ten shareholders had pledged shares - The total number of common shareholders at the end of the reporting period was 102,19612 Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholding Ratio (%) | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | | Joyson Group Co Ltd | 34.85 | 476,840,782 | Pledged | | Hong Kong Securities Clearing Company Limited | 4.05 | 55,427,978 | Unpledged | | Wang Jianfeng | 2.49 | 34,056,959 | Unpledged | | Zhejiang Rongzhen Asset Management Co Ltd | 2.26 | 30,950,963 | Pledged | | Golden Eagle Fund -...- Joyson No 2...Trust | 1.79 | 24,472,245 | Unpledged | - The company's controlling shareholder is Joyson Group Co Ltd, and the actual controller is Mr Wang Jianfeng14 Other Reminders Other Important Information During the reporting period, the company had no other significant operational information requiring special attention from investors - The company states in this report that there is no other significant operational information requiring special attention from investors15 Quarterly Financial Statements Financial Statements As of September 30, 2022, the company's total assets were 53 billion RMB and total liabilities were 35.75 billion RMB, with year-to-date operating revenue of 35.74 billion RMB, a 4.8% increase, and net profit attributable to shareholders turning profitable at 0.131 billion RMB, while net cash flow from operating activities was 0.818 billion RMB, a slight decrease year-on-year Consolidated Balance Sheet As of September 30, 2022, the company's total assets were 53 billion RMB, a 3.26% increase from the beginning of the year, comprising 24.97 billion RMB in current assets and 28.03 billion RMB in non-current assets, with total liabilities of 35.75 billion RMB, a debt-to-asset ratio of 67.5%, and equity attributable to parent company owners of 11.84 billion RMB, up 4.12% from the beginning of the year Key Balance Sheet Items (Unit: Billion RMB) | Item | Sep 30, 2022 | Dec 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 52.999 | 51.327 | +3.26% | | Total Liabilities | 35.749 | 34.472 | +3.71% | | Total Equity Attributable to Parent Company Owners | 11.842 | 11.373 | +4.12% | | Non-controlling Interests | 5.408 | 5.481 | -1.34% | Consolidated Income Statement In the first three quarters of 2022, the company achieved total operating revenue of 35.74 billion RMB, a 4.8% year-on-year increase, with total operating costs of 35.77 billion RMB, largely in line with revenue, and thanks to expense control (especially a 51% year-on-year decrease in financial expenses) and non-operating income, the company turned profitable with net profit attributable to parent company shareholders reaching 0.131 billion RMB, compared to 18.05 million RMB in the same period last year Key Income Statement Items (Q1-Q3 2022, Unit: Billion RMB) | Item | Jan-Sep 2022 | Jan-Sep 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 35.743 | 34.107 | +4.80% | | Total Operating Costs | 35.774 | 34.456 | +3.82% | | Operating Profit | 0.210 | -0.211 | Turnaround to Profit | | Total Profit | 0.212 | -0.212 | Turnaround to Profit | | Net Profit Attributable to Parent Company Shareholders | 0.131 | 0.018 | +625.56% | Consolidated Cash Flow Statement In the first three quarters of 2022, net cash flow from operating activities was 0.818 billion RMB, a 23.89% year-on-year decrease, while net cash outflow from investing activities significantly narrowed to 1.919 billion RMB from 2.778 billion RMB in the prior year, and net cash flow from financing activities turned positive at 0.537 billion RMB, with cash and cash equivalents balance at period-end of 3.952 billion RMB Key Cash Flow Statement Items (Q1-Q3 2022, Unit: Billion RMB) | Item | Jan-Sep 2022 | Jan-Sep 2021 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 0.818 | 1.075 | | Net Cash Flow from Investing Activities | -1.919 | -2.778 | | Net Cash Flow from Financing Activities | 0.537 | -2.204 | | Net Increase in Cash and Cash Equivalents | -0.597 | -3.943 |