NCPC(SH:600812)2021-10-22 16:00Major Financial Data and Indicators The company experienced significant year-over-year declines in key financial metrics for Q3 and year-to-date 2021, primarily due to a high comparative base from prior-year government subsidies and increased expenses from the COVID-19 pandemic, despite positive contributions from non-recurring gains Key Accounting Data and Financial Indicators In Q3 2021 and year-to-date, the company experienced year-over-year declines in several key financial metrics, with Q3 revenue down 17.26% and net profit attributable to shareholders down 27.62%; year-to-date, revenue decreased by 9.68%, while net profit attributable to shareholders plummeted by 87.58%, and non-recurring net profit turned from profit to loss, decreasing by 370.39% 2021 Q3 and Year-to-Date Key Financial Indicators | Indicator | Current Period (Q3) | Year-to-Date | Year-to-Date YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 2,603,693,576.29 | 8,186,782,145.76 | -9.68% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | 16,772,829.00 | 17,777,880.20 | -87.58% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses (Yuan) | 6,331,731.45 | -23,675,722.76 | -370.39% | | Net Cash Flow from Operating Activities (Yuan) | Not Applicable | 642,462,705.46 | -3.02% | | Basic Earnings Per Share (Yuan/share) | 0.010 | 0.011 | -87.50% | | Weighted Average Return on Net Assets (%) | 0.28% | 0.29% | Decreased 2.20 percentage points | | Total Assets (Yuan) | 25,598,267,567.80 | 25,598,267,567.80 | 6.96% (vs. end of prior year) | | Owners' Equity Attributable to Shareholders of Listed Company (Yuan) | 6,096,618,653.83 | 6,096,618,653.83 | -0.45% (vs. end of prior year) | - Due to the company's acquisition of 51% equity in Ainuo Company, 100% equity in Dongbao Company, and related trademark assets in 2020, which constituted a business combination under common control, prior-year comparative data was retrospectively adjusted9 Non-Recurring Gains and Losses During the reporting period, non-recurring gains and losses significantly positively impacted the company's net profit, totaling 41.45 million Yuan year-to-date, primarily from government subsidies of 39.48 million Yuan recognized in current profit or loss Year-to-Date Non-Recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 39,479,468.60 | | Gains or losses on disposal of non-current assets | 2,090,332.20 | | Other non-operating income and expenses and other profit/loss items that meet the definition | 3,113,727.61 | | Debt restructuring gains or losses | -460,829.27 | | Total | 41,453,602.96 | Analysis of Changes in Key Financial Data and Indicators The company explained the significant year-to-date decline in net profit and non-recurring net profit, attributing the 87.58% drop in net profit attributable to shareholders to a high base from large employment stabilization funds received last year and increased expenses due to the Shijiazhuang COVID-19 outbreak this year, which also caused the 370.39% decrease in non-recurring net profit - Net profit attributable to shareholders of the listed company decreased by 87.58% year-over-year, primarily due to: 1. 79.44 million Yuan in employment stabilization funds received in the prior-year period, recognized as other income; 2. Increased expenses resulting from the COVID-19 outbreak in Shijiazhuang at the beginning of the year14 - Net profit attributable to shareholders of the listed company excluding non-recurring gains and losses decreased by 370.39% year-over-year, primarily due to increased expenses resulting from the COVID-19 outbreak in Shijiazhuang at the beginning of the year14 Shareholder Information As of the reporting period, the company had 88,441 common shareholders, with a concentrated equity structure where the top three shareholders, including related parties, collectively hold over 55% of shares, with significant portions pledged or frozen Total Number of Shareholders and Top Ten Shareholders' Holdings As of the end of the reporting period, the company had 88,441 common shareholders, with the top three shareholders, Jizhong Energy Co., Ltd., North China Pharmaceutical Group Co., Ltd., and Jizhong Energy Group Co., Ltd., collectively holding over 55%, indicating a relatively concentrated equity structure, with significant shares pledged or frozen for North China Pharmaceutical Group and Jizhong Energy Group - As of the end of the reporting period, the company had 88,441 common shareholders15 Top Three Shareholders' Holdings | Shareholder Name | Holding Percentage (%) | Share Status | | :--- | :--- | :--- | | Jizhong Energy Co., Ltd. | 24.08% | None | | North China Pharmaceutical Group Co., Ltd. | 19.90% | Pledged 110,000,000 shares | | Jizhong Energy Group Co., Ltd. | 11.02% | Pledged 90,000,000 shares, Frozen 180,869,298 shares | - The top three shareholders have related party relationships: North China Pharmaceutical Group is a wholly-owned subsidiary of Jizhong Energy Group, and Jizhong Energy Co., Ltd. is a controlling subsidiary of Jizhong Energy Group, forming parties acting in concert20 Other Important Reminders The company reported no other significant operating information requiring special attention from investors during the reporting period Other Important Operating Information During the reporting period, the company had no other significant operating information requiring special attention from investors - The company has no other important operating information requiring special attention from investors in this reporting period21 Quarterly Financial Statements The company's quarterly financial statements for Q3 2021 show increased assets and liabilities, significant declines in revenue and net profit, stable operating cash flow, and adjustments due to the adoption of new lease accounting standards Consolidated Balance Sheet As of September 30, 2021, the company's total assets were 25.60 billion Yuan, a 6.96% increase from the beginning of the year, while total liabilities reached 18.58 billion Yuan, up 10.1%, raising the asset-liability ratio from 70.5% to 72.6%, driven by notable increases in monetary funds, accounts receivable, and long-term equity investments on the asset side, and significant growth in short-term borrowings and non-current liabilities due within one year on the liability side Consolidated Balance Sheet Major Item Changes (2021-09-30 vs 2020-12-31) | Item | September 30, 2021 (Yuan) | December 31, 2020 (Yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Total Assets | 25,598,267,567.80 | 23,931,716,749.91 | 6.96% | | Monetary Funds | 5,845,974,918.55 | 4,907,510,588.71 | 19.12% | | Accounts Receivable | 2,073,262,442.93 | 1,734,216,115.27 | 19.55% | | Total Liabilities | 18,579,995,482.86 | 16,876,151,195.01 | 10.10% | | Short-term Borrowings | 7,946,687,951.59 | 6,825,624,792.05 | 16.42% | | Non-current Liabilities Due Within One Year | 2,257,703,870.40 | 1,353,400,000.00 | 66.82% | | Total Owners' Equity Attributable to Parent Company | 6,096,618,653.83 | 6,124,327,255.79 | -0.45% | Consolidated Income Statement In the first three quarters of 2021, the company's total operating revenue was 8.19 billion Yuan, a 9.68% year-over-year decrease, and net profit attributable to parent company shareholders was 17.78 million Yuan, a significant 87.58% year-over-year decline, while operating costs decreased by 8.05% and selling expenses by 19.56%, management and R&D expenses increased by 17.45% and 9.80% respectively Consolidated Income Statement Major Items (First Three Quarters 2021 vs First Three Quarters 2020) | Item | First Three Quarters 2021 (Yuan) | First Three Quarters 2020 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 8,186,782,145.76 | 9,064,019,110.04 | -9.68% | | Total Operating Costs | 8,142,397,986.03 | 8,965,371,145.87 | -9.18% | | Selling Expenses | 1,665,993,967.27 | 2,071,191,727.55 | -19.56% | | Administrative Expenses | 433,521,844.68 | 369,097,137.59 | 17.45% | | Research and Development Expenses | 98,653,868.02 | 89,851,673.95 | 9.80% | | Operating Profit | 87,313,546.10 | 192,318,031.63 | -54.60% | | Net Profit Attributable to Parent Company Shareholders | 17,777,880.20 | 143,196,748.55 | -87.58% | Consolidated Cash Flow Statement In the first three quarters of 2021, net cash flow from operating activities was 642 million Yuan, largely stable year-over-year, indicating consistent cash recovery from core operations; net cash outflow from investing activities expanded by 22.62% to 647 million Yuan due to increased investment payments; and net cash inflow from financing activities significantly decreased by 54.28% to 1.06 billion Yuan, primarily due to the absence of large capital contributions from last year's fundraising Consolidated Cash Flow Statement Major Items (First Three Quarters 2021 vs First Three Quarters 2020) | Item | First Three Quarters 2021 (Yuan) | First Three Quarters 2020 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 642,462,705.46 | 662,500,819.49 | -3.02% | | Net Cash Flow from Investing Activities | -647,109,559.22 | -527,735,005.93 | -22.62% | | Net Cash Flow from Financing Activities | 1,058,725,941.38 | 2,315,618,169.50 | -54.28% | | Net Increase in Cash and Cash Equivalents | 1,052,860,235.56 | 2,446,541,015.71 | -56.97% | Adoption of New Lease Standards and Financial Statement Adjustments Effective January 1, 2021, the company adopted new lease standards, adjusting its opening financial statements without restating prior-year comparative data, primarily impacting non-current assets and liabilities by recognizing 865 million Yuan in right-of-use assets and 468 million Yuan in lease liabilities, while reducing fixed assets by 830 million Yuan and long-term payables by 456 million Yuan - The company adopted new lease standards effective January 1, 2021, and adjusted its opening financial statements without adjusting prior-year-end figures49 Major Impact of Adopting New Lease Standards on January 1, 2021 Balance Sheet | Statement Item | Adjustment Amount (Yuan) | | :--- | :--- | | Assets | | | Right-of-use assets | +865,412,596.78 | | Fixed assets | -830,320,642.38 | | Long-term prepaid expenses | -18,194,285.76 | | Liabilities | | | Lease liabilities | +467,942,572.46 | | Non-current liabilities due within one year | +4,472,166.81 | | Long-term payables | -455,517,070.63 |