Fortune(SH:600965)2020-10-29 16:00Financial Performance - Net profit attributable to shareholders decreased by 45.58% to CNY 87,098,288.18 for the period from January to September[6] - Operating revenue for the first nine months was CNY 764,764,623.34, down 31.85% year-on-year[6] - Basic earnings per share decreased by 45.58% to CNY 0.1064[8] - The company experienced a significant decline in net profit due to market conditions and operational challenges[6] - The company's total revenue for the first three quarters was approximately 764.76 million RMB, a decrease of 31.85% compared to the previous year due to the impact of COVID-19[17] - Net profit attributable to shareholders was 87.10 million RMB, down 45.58% year-on-year, reflecting the decline in revenue[17] - Total revenue for Q3 2020 was CNY 308,053,122.72, a decrease of 23.2% compared to CNY 401,330,669.89 in Q3 2019[31] - Net profit for Q3 2020 was CNY 41,907,921.36, a decline of 43.3% from CNY 73,757,996.57 in Q3 2019[32] - The company's total profit for the first three quarters of 2020 was ¥287,454,069.15, down from ¥345,561,160.71 in the same period of 2019, a decrease of 16.8%[36] Assets and Liabilities - Total assets decreased by 9.74% to CNY 2,471,946,505.94 compared to the end of the previous year[6] - The company reported a decrease in net assets attributable to shareholders by 1.75% to CNY 2,007,767,850.88 compared to the end of the previous year[6] - The company's current assets decreased to CNY 1,781,417,204.17 from CNY 2,020,843,384.23, reflecting a reduction of about 11.8%[24] - Total liabilities decreased to CNY 410,072,439.06 from CNY 603,228,998.84, marking a reduction of about 32.1%[25] - The company's equity attributable to shareholders decreased to CNY 2,007,767,850.88 from CNY 2,043,474,705.95, a decline of approximately 1.7%[25] - The total current liabilities decreased to CNY 384,124,737.29 from CNY 579,075,265.80, a decline of approximately 33.7%[25] - The total liabilities to equity ratio is approximately 0.28, indicating a relatively low leverage position[46] Cash Flow - The net cash flow from operating activities increased by 18.56% to CNY 141,808,779.36 compared to the same period last year[6] - In the first three quarters of 2020, the company's cash inflow from operating activities was CNY 876,571,614.60, a decrease of 42% compared to CNY 1,505,138,956.13 in the same period of 2019[39] - The net cash flow from operating activities increased to CNY 141,808,779.36, up by 18.5% from CNY 119,612,269.97 in the previous year[39] - The cash outflow for purchasing goods and services was CNY 483,923,172.82, down 36.4% from CNY 761,101,903.68 in the same period last year[39] - The net cash flow from investing activities was negative CNY 7,490,906.89, a decline from a positive CNY 20,945,382.12 in the previous year[40] - Cash inflow from financing activities was CNY 134,018,361.12, a decrease of 62.4% compared to CNY 355,875,263.75 in the same period of 2019[40] - The net cash flow from financing activities was negative CNY 255,084,763.26, worsening from negative CNY 127,046,485.70 in the previous year[40] Market and Strategy - The company is focusing on improving cash flow management and exploring new market opportunities[6] - The company adjusted its marketing strategy to focus on TOC business models, expanding sales channels and launching over a hundred new food products[16] - The company aims to enhance market expansion and product development strategies in the upcoming quarters[30] Shareholder Information - The number of shareholders reached 24,883, with the top ten shareholders holding a combined 73.26% of the shares[14] Research and Development - Research and development expenses for the first three quarters of 2020 were CNY 22,465,212.23, indicating ongoing investment in innovation[31] - Research and development expenses for Q3 2020 amounted to ¥9,180,754.90, compared to ¥0.00 in Q3 2019, indicating a new investment in R&D[36] Regulatory and Compliance - The company is actively cooperating with law enforcement regarding an ongoing investigation into a contract fraud case[19] - The company implemented the new revenue recognition standard starting January 1, 2020, adjusting the beginning balance of advance receipts to contract liabilities[51] - The new revenue recognition standard did not have a significant impact on the company's financial statement presentation[51] - The company will adopt the new lease standard starting January 1, 2021[51]