SCMC(SH:600984)2022-10-28 16:00Financial Summary Key Financial Data The company experienced a significant performance decline in Q3 and the first three quarters of 2022, with revenue decreasing by 17.93% and net profit attributable to shareholders turning into a loss of RMB 46.18 million * Key Financial Data (Year-to-Date) | Item | Year-to-Date (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 2,869,165,649.96 | -17.93% | | Net Profit Attributable to Shareholders | -46,184,202.86 | -110.67% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -58,195,334.57 | -113.63% | | Net Cash Flow from Operating Activities | -201,956,639.37 | -13.63% | | Basic Earnings Per Share (RMB/share) | -0.0367 | -108.20% | | Total Assets (End of Reporting Period) | 18,144,781,702.77 | 3.08% (vs. end of prior year) | | Owners' Equity Attributable to Shareholders (End of Reporting Period) | 6,007,078,822.18 | -1.47% (vs. end of prior year) | * Non-Recurring Gains and Losses | Non-Recurring Item | Amount (RMB) | | :--- | :--- | | Government Grants | 9,425,673.52 | | Reversal of Impairment Provisions for Accounts Receivable and Contract Assets | 5,406,097.14 | | Other Non-Operating Income and Expenses | 1,420,035.58 | | Gains/Losses from Disposal of Non-Current Assets | -1,572,862.06 | | Total | 12,011,131.71 | Analysis of Key Financial Indicators Changes The significant decline in net profit and EPS is primarily attributed to reduced revenue and increased operating costs due to external environmental factors, particularly the pandemic - The company's net profit attributable to shareholders, non-recurring net profit, and basic earnings per share all decreased by over 100% year-on-year, mainly due to reduced revenue and increased operating costs impacted by the pandemic6 Shareholder Information Shareholding of Major Shareholders As of the reporting period end, the company had 44,011 common shareholders, with Shaanxi Coal and Chemical Industry Group Co., Ltd. as the controlling shareholder holding 29.58% - As of the end of the reporting period, the company had 44,011 common shareholders8 - Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Ratio (%) | Number of Shares Held | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shaanxi Coal and Chemical Industry Group Co., Ltd. | 29.58 | 371,842,572 | State-owned Legal Person | | Chai Zhaoyi | 8.64 | 108,625,920 | Domestic Natural Person | | Shaanxi Construction Machinery (Group) Co., Ltd. | 4.00 | 50,287,251 | State-owned Legal Person | | Fu Weiping | 1.60 | 20,112,756 | Domestic Natural Person | | Taikang Life Insurance Co., Ltd. - Dividend - Individual Dividend | 1.26 | 15,837,335 | Unknown | Discussion and Analysis of Operations Analysis of Significant Changes in Financial Statement Items Multiple financial statement items showed over 30% variation, reflecting expanded financing activities, reduced income tax expenses due to lower profits, and increased cash inflows from financing - The company analyzed the reasons for over 30% changes in balance sheet, income statement, and cash flow statement items, primarily involving financing structure adjustments, asset disposals, government grants, and the impact of the pandemic on operations91014 - Balance Sheet and Income Statement Items with Significant Changes | Account | Increase/Decrease (%) | Primary Reason | | :--- | :--- | :--- | | Bonds Payable | 294.74 | Due to bond issuance in current period | | Long-term Borrowings | 55.78 | Due to increase in long-term borrowings in current period | | Right-of-Use Assets | -68.59 | Due to transfer of finance lease assets to fixed assets upon maturity | | Notes Payable | -51.49 | Due to decrease in bill financing in current period | | Income Tax Expense | -110.38 | Due to decrease in total profit in current period | - Cash Flow Statement Items with Significant Changes | Account | Increase/Decrease (%) | Primary Reason | | :--- | :--- | :--- | | Cash Received from Borrowings | 83.12 | Due to increased cash from bond issuance in current period | | Cash Paid for Debt Repayment | 148.72 | Due to repayment of matured borrowings in current period | | Other Cash Paid Related to Financing Activities | 128.59 | Due to increased repayment of finance lease and sale-leaseback rentals and fees in current period | Raised Funds and Shareholder Increase The company utilized RMB 1.327 billion from 2020 non-public offering for equipment expansion, and the controlling shareholder completed a share increase plan, demonstrating confidence in the company - Use of Raised Funds | Item | Amount (RMB) | | :--- | :--- | | Net Proceeds from Raised Funds | 1,457,794,440.81 | | Cumulative Investment in Raised Fund Projects | 1,326,521,941.98 | | Balance of Raised Funds at Period End | 148,706,982.01 | - The company's actual controller, Shaanxi Coal and Chemical Industry Group, completed a share increase plan, acquiring 19,339,067 shares, representing 1.5385% of total share capital, with an investment of approximately RMB 129 million1920 Issuance of Asset-Backed Notes The company plans to issue up to RMB 2 billion in asset-backed notes (ABN) to enhance asset utilization and diversify financing, with the first RMB 1 billion tranche successfully established - The company plans to issue asset-backed notes (ABN) with a registered size of up to RMB 2 billion in the interbank market, based on accounts receivable as underlying assets21 - The first tranche of targeted asset-backed notes was officially established on July 28, 2022, reaching the target fundraising scale22 Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2022, total assets were RMB 18.145 billion, total liabilities RMB 12.135 billion (up 5.50% due to increased borrowings), and owners' equity RMB 6.007 billion (down 1.47%) - Consolidated Balance Sheet Summary | Item | September 30, 2022 (RMB) | December 31, 2021 (RMB) | | :--- | :--- | :--- | | Total Assets | 18,144,781,702.77 | 17,602,567,240.94 | | Total Liabilities | 12,134,501,226.00 | 11,502,596,094.47 | | Total Owners' Equity Attributable to Parent Company | 6,007,078,822.18 | 6,096,678,060.54 | Consolidated Income Statement For the first three quarters of 2022, operating revenue declined by 17.93% to RMB 2.869 billion, resulting in an operating loss of RMB 58 million and a net loss of RMB 46.18 million attributable to parent company shareholders - Consolidated Income Statement Summary | Item | First Three Quarters 2022 (RMB) | First Three Quarters 2021 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 2,869,165,649.96 | 3,496,047,374.32 | | Total Operating Costs | 2,803,047,239.53 | 2,849,999,687.05 | | Operating Profit | -58,004,407.86 | 512,783,496.40 | | Net Profit Attributable to Parent Company Shareholders | -46,184,202.86 | 433,001,054.02 | | Basic Earnings Per Share (RMB/share) | -0.0367 | 0.4478 | Consolidated Cash Flow Statement In the first three quarters of 2022, operating cash flow remained negative at RMB -202 million, investment activities resulted in a net outflow of RMB 1.104 billion, while financing activities provided a net inflow of RMB 1.350 billion - Consolidated Cash Flow Statement Summary | Item | First Three Quarters 2022 (RMB) | First Three Quarters 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -201,956,639.37 | -177,726,040.48 | | Net Cash Flow from Investing Activities | -1,104,262,875.27 | -1,839,819,010.80 | | Net Cash Flow from Financing Activities | 1,349,867,381.48 | 1,443,023,073.53 | | Net Increase in Cash and Cash Equivalents | 43,636,476.56 | -574,605,059.66 |