Hongfa(SH:600885)2020-10-29 16:00Important Notice Board Statement and Report Audit Status The company's management affirms the report's accuracy and completeness, noting that this third-quarter report is unaudited - Company management confirmed the truthfulness, accuracy, and completeness of the quarterly report content4 - This company's 2020 third-quarter report is unaudited4 Company Basic Information Key Financial Data As of September 30, 2020, total assets grew 9.51% to 11.17 billion yuan, while Q3 revenue increased 5.62% to 5.44 billion yuan, and net profit rose 7.45% to 597 million yuan, despite a 58.43% decline in operating cash flow 2020 First Three Quarters Key Financial Data | Item | First Three Quarters 2020 | First Three Quarters 2019 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 5,437,361,108.68 | 5,147,872,784.55 | 5.62% | | Net Profit Attributable to Shareholders (Yuan) | 597,236,131.99 | 555,822,408.62 | 7.45% | | Net Profit Attributable to Shareholders Excluding Non-recurring Gains/Losses (Yuan) | 564,330,653.91 | 526,299,479.04 | 7.23% | | Net Cash Flow from Operating Activities (Yuan) | 645,460,840.88 | 1,552,539,485.20 | -58.43% | | Basic Earnings Per Share (Yuan/Share) | 0.8019 | 0.7463 | 7.45% | | Weighted Average Return on Net Assets (%) | 11.13% | 11.45% | Decrease of 0.32 percentage points | - In the first three quarters of 2020, the company's total non-recurring gains and losses amounted to 32.905 million yuan, primarily from government subsidies and fair value changes in financial assets78 Shareholder Information As of the reporting period end, the company had 17,069 shareholders, with Youge Investment Co., Ltd. as the largest shareholder at 28.65%, alongside various institutional investors in the top ten - As of the end of the reporting period, the company had a total of 17,069 shareholders9 Top Ten Shareholders' Shareholding | Shareholder Name | Number of Shares Held | Proportion (%) | | :--- | :--- | :--- | | Youge Investment Co., Ltd. | 213,377,011 | 28.65 | | Hong Kong Securities Clearing Company Limited | 97,781,924 | 13.13 | | Lianfa Group Co., Ltd. | 71,934,814 | 9.66 | | Central Huijin Asset Management Co., Ltd. | 13,552,980 | 1.82 | | Shanghai Gaoyi Asset Management Partnership (Limited Partnership) - Gaoyi Xiaofeng No. 2 Zhixin Fund | 11,781,234 | 1.58 | | Norges Bank - Own Funds | 10,339,261 | 1.39 | | CITIC Trust Co., Ltd. - CITIC Trust Ruijin 43rd Gaoyi Xiaofeng Investment Collective Fund Trust Plan | 8,825,500 | 1.19 | | Agricultural Bank of China Co., Ltd. - Guotai Smart Car Stock Investment Fund | 8,294,360 | 1.11 | | Bank of China Co., Ltd. - ChinaAMC CSI New Energy Vehicle ETF | 6,953,466 | 0.93 | | National Council for Social Security Fund 406 Portfolio | 6,942,478 | 0.93 | Significant Events Analysis of Significant Changes in Key Accounting Statement Items and Financial Indicators During the reporting period, significant financial changes included a 27.23% rise in accounts receivable, a 1598.21% surge in long-term borrowings, increased financial expenses and investment losses due to exchange rate fluctuations, substantial fair value gains, and a 58.43% drop in operating cash flow Financial Indicators with Significant Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Other Receivables | 53.88% | Due to increase in other receivables | | Taxes Payable | 56.05% | Due to increase in income tax and VAT payable | | Long-term Borrowings | 1598.21% | Due to increase in bank borrowings | | Other Comprehensive Income | -44.53% | Due to exchange rate fluctuations | | Financial Expenses | 227.39% | Due to exchange rate fluctuations, increased exchange losses | | Gains from Fair Value Changes | 171.76% | Due to exchange rate fluctuations, month-end valuation gains from forward foreign exchange settlements | | Investment Income | -470.01% | Due to exchange rate fluctuations, actual settlement losses from forward foreign exchange settlements | | Net Cash Flow from Operating Activities | -58.43% | Due to maturing notes payable and increased cash payments during the reporting period | | Net Cash Flow from Financing Activities | 236.50% | Due to increased bank borrowings obtained during the reporting period | Appendix Financial Statements This section presents the company's unaudited consolidated and parent financial statements, including the balance sheet, income statement, and cash flow statement, for the period ending September 30, 2020 Consolidated Balance Sheet As of September 30, 2020, total assets reached 11.17 billion yuan (+9.51%), total liabilities 4.03 billion yuan (+11.68%) driven by long-term borrowings, and equity attributable to parent company owners 5.30 billion yuan (+7.54%) Consolidated Balance Sheet Key Items (Unit: Billion Yuan) | Item | September 30, 2020 | December 31, 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 11.17 | 10.20 | +9.51% | | Total Liabilities | 4.03 | 3.61 | +11.68% | | Equity Attributable to Parent Company Owners | 5.30 | 4.92 | +7.54% | Consolidated Income Statement For the first three quarters of 2020, total operating revenue grew 5.62% to 5.44 billion yuan, total operating costs increased 6.74% to 4.52 billion yuan, and net profit attributable to parent company shareholders rose 7.45% to 597 million yuan Consolidated Income Statement Key Items (Unit: Billion Yuan) | Item | First Three Quarters 2020 | First Three Quarters 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5.44 | 5.15 | +5.62% | | Total Operating Costs | 4.52 | 4.24 | +6.74% | | Operating Profit | 9.79 | 8.97 | +9.07% | | Net Profit | 8.15 | 7.59 | +7.37% | | Net Profit Attributable to Parent Company Shareholders | 5.97 | 5.56 | +7.45% | Consolidated Cash Flow Statement For the first three quarters of 2020, net cash flow from operating activities significantly decreased by 58.43% to 645 million yuan, while net cash outflow from investing activities narrowed to 501 million yuan, and net cash flow from financing activities turned positive at 61 million yuan due to increased borrowings Consolidated Cash Flow Statement Overview (Unit: Billion Yuan) | Item | First Three Quarters 2020 | First Three Quarters 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 0.65 | 1.55 | -58.43% | | Net Cash Flow from Investing Activities | -0.50 | -0.77 | N/A | | Net Cash Flow from Financing Activities | 0.06 | -0.05 | N/A | | Net Increase in Cash and Cash Equivalents | 0.20 | 0.77 | -73.33% |