中国重工(601989) - 2021 Q3 - 季度财报

Major Financial Data Key Accounting Data and Financial Indicators Q3 net profit recorded a 103 million yuan loss, while year-to-date net profit turned positive despite high raw material costs and significant operating cash outflow 2021 Q3 and Year-to-Date Major Financial Indicators | Item | Current Period (Q3) | Year-to-Date (YTD) | YTD YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8.645 billion yuan | 24.847 billion yuan | 0.31% | | Net Profit Attributable to Shareholders | -103 million yuan | 55 million yuan | N/A (Turned Profitable) | | Net Profit Attributable to Shareholders (Excluding Non-recurring) | -163 million yuan | -168 million yuan | N/A | | Net Cash Flow from Operating Activities | N/A | -4.300 billion yuan | N/A | | Total Assets (Period-end) | 184.797 billion yuan | 184.797 billion yuan | 7.19% (vs. prior year-end) | | Equity Attributable to Shareholders (Period-end) | 85.301 billion yuan | 85.301 billion yuan | 0.11% (vs. prior year-end) | - Despite the recovery in the shipping market and increased new vessel orders, the company faces significant operational pressure from global pandemics, trade frictions, and high raw material and equipment prices[6] - The company improved economic efficiency and achieved year-to-date net profit attributable to shareholders turning profitable by implementing cost engineering and strengthening cost governance in procurement and outsourcing[6] - Year-to-date net cash flow from operating activities was -4.30 billion yuan, primarily due to a significant year-on-year increase in procurement expenditures for materials and equipment based on production schedules[6] Non-recurring Gains and Losses Items and Amounts Year-to-date non-recurring gains and losses totaled 223.06 million yuan, primarily from government subsidies recognized in current profit or loss Year-to-Date Major Non-recurring Gains and Losses Items | Item | Amount (Million Yuan) | | :--- | :--- | | Government Subsidies Recognized in Current Profit or Loss | 218.9991 million yuan | | Disposal Gains/Losses on Non-current Assets | 14.2174 million yuan | | Gains/Losses from Financial Assets | 18.2350 million yuan | | Reversal of Impairment Provisions for Individually Assessed Receivables | 42.4699 million yuan | | Other Non-operating Income and Expenses | -36.8952 million yuan | | Total | 223.0616 million yuan | Analysis of Major Financial Indicator Changes Several financial indicators changed significantly, with net profit attributable to shareholders turning profitable due to cost control, despite substantial operating cash outflow - Net profit attributable to shareholders in Q3 recorded a loss, mainly due to uneven distribution of product construction milestones, leading to the recognition of more revenue from previously undertaken low-margin orders in this period[11] - Year-to-date net profit attributable to shareholders and non-recurring net profit turned profitable, primarily because the company continuously improved management efficiency through cost engineering and enhanced cost governance in key areas to counter adverse factors like rising raw material prices[11][12] - Year-to-date net cash flow from operating activities saw an increased outflow year-on-year, mainly due to a significant increase in procurement expenditures for materials and equipment based on production schedules[12] Shareholder Information Shareholding Status of Shareholders As of the reporting period end, the company had 657,836 common shareholders, with the controlling shareholder and its concerted parties holding significant stakes - As of the end of the reporting period, the company had 657,836 common shareholders[13] Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding (%) | Number of Shares | | :--- | :--- | :--- | :--- | | China Shipbuilding Industry Corporation | State-owned Legal Entity | 34.53 | 7,872,473,398 | | Dalian Shipbuilding Investment Holding Co., Ltd. | State-owned Legal Entity | 7.94 | 1,810,936,360 | | China State-owned Capital Venture Capital Fund Co., Ltd. | State-owned Legal Entity | 6.10 | 1,390,285,391 | | China Cinda Asset Management Co., Ltd. | State-owned Legal Entity | 3.83 | 873,430,059 | | Bohai Shipbuilding Group Co., Ltd. | State-owned Legal Entity | 2.24 | 511,832,746 | - Dalian Shipbuilding Investment, Bohai Shipbuilding Group, and Wuchuan Investment are wholly-owned subsidiaries of controlling shareholder CSIC, forming concerted parties, while concerted action agreements with several other state-owned legal entity shareholders expired on March 1, 2021[14] Other Reminders Analysis of Major Income Statement Item Changes Q1-Q3 2021 saw slight revenue growth, improved gross profit margin, and increased other income, while investment income decreased due to a high prior-year base - The year-to-date gross profit margin was 7.23%, an increase of 0.35 percentage points year-on-year, primarily due to enhanced refined management and cost engineering, improving profitability[16] - Other income increased by 61.39% year-on-year, mainly due to subsidiaries receiving industrial support funds and major technical equipment insurance subsidies[16] - Investment income decreased by 46.55% year-on-year, primarily due to a high base from a 100 million yuan investment gain from the disposal of China Shipbuilding Diesel Engine Co equity in the prior year[16] Analysis of Other Major Financial Item Changes Significant changes occurred in balance sheet and cash flow items, including increased prepayments, contract assets, and short-term borrowings, alongside shifts in investing and financing cash flows Balance Sheet and Cash Flow Statement Major Item Changes | Item Name | YoY/Period-end Change (%) | Primary Reason | | :--- | :--- | :--- | | Prepayments | 38.26% | Subsidiaries increased large-scale procurement based on production schedules | | Contract Assets | 97.01% | Performance progress of some vessel contracts exceeded settlement payments and increased quality assurance deposits | | Short-term Borrowings | 210.38% | Significant increase in short-term borrowings by subsidiaries | | Net Cash Flow from Investing Activities | -144.09% | Significant year-on-year increase in net deposits into time deposits by subsidiaries | | Net Cash Flow from Financing Activities | N/A (Turned from negative to positive) | Significant year-on-year increase in net borrowings by subsidiaries to meet operational needs | - Effective January 1, 2021, the company adopted new lease standards, resulting in new right-of-use assets of 934 million yuan and lease liabilities of 412 million yuan[18] Quarterly Financial Statements Type of Audit Opinion The company's Q3 2021 financial statements are unaudited - The third-quarter financial statements are unaudited[3][19] Financial Statements The financial statements present the company's financial position, operating results, and cash flows, showing asset growth, net profit turning positive, and shifts in cash flow activities Consolidated Balance Sheet As of September 30, 2021, total assets increased by 7.19% to 184.797 billion yuan, driven by current assets, while total liabilities grew by 14.34% due to increased borrowings and contract liabilities Consolidated Balance Sheet Major Items | Item | Sep 30, 2021 (Billion Yuan) | Dec 31, 2020 (Billion Yuan) | | :--- | :--- | :--- | | Assets | | | | Cash and Bank Balances | 64.013 billion yuan | 62.422 billion yuan | | Prepayments | 15.212 billion yuan | 11.002 billion yuan | | Inventories | 30.434 billion yuan | 26.722 billion yuan | | Total Assets | 184.797 billion yuan | 172.407 billion yuan | | Liabilities and Owners' Equity | | | | Short-term Borrowings | 7.275 billion yuan | 2.344 billion yuan | | Contract Liabilities | 34.114 billion yuan | 28.019 billion yuan | | Total Liabilities | 98.627 billion yuan | 86.256 billion yuan | | Equity Attributable to Parent Company Owners | 85.301 billion yuan | 85.204 billion yuan | | Total Liabilities and Owners' Equity | 184.797 billion yuan | 172.407 billion yuan | Consolidated Income Statement Q1-Q3 2021 total operating revenue remained stable, and net profit attributable to parent company shareholders turned profitable at 55 million yuan due to effective cost control Consolidated Income Statement Major Items | Item | Q1-Q3 2021 (Billion Yuan) | Q1-Q3 2020 (Billion Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 24.847 billion yuan | 24.770 billion yuan | | Total Operating Costs | 25.186 billion yuan | 25.248 billion yuan | | Operating Profit | 150 million yuan | -40 million yuan | | Total Profit | 113 million yuan | -31 million yuan | | Net Profit | 19 million yuan | -114 million yuan | | Net Profit Attributable to Parent Company Shareholders | 55 million yuan | -112 million yuan | | Basic EPS (Yuan/Share) | 0.002 yuan/share | -0.005 yuan/share | Consolidated Cash Flow Statement Net cash flow from operating activities was a significant outflow of 4.30 billion yuan, while investing activities also saw a large outflow, and financing activities turned positive due to increased borrowings Consolidated Cash Flow Statement Major Items | Item | Q1-Q3 2021 (Billion Yuan) | Q1-Q3 2020 (Billion Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4.300 billion yuan | -208 million yuan | | Net Cash Flow from Investing Activities | -6.631 billion yuan | 15.040 billion yuan | | Net Cash Flow from Financing Activities | 5.540 billion yuan | -11.807 billion yuan | | Net Increase in Cash and Cash Equivalents | -5.244 billion yuan | 2.884 billion yuan | First-Time Adoption Adjustments for New Lease Standards Effective January 1, 2021, the company adopted new lease standards, leading to retrospective adjustments including recognition of right-of-use assets and lease liabilities Major Impacts of New Lease Standards on Opening Balance Sheet | Adjustment Item | Adjustment Amount (Billion Yuan) | | :--- | :--- | | Assets | | | Right-of-Use Assets | +1.088 billion yuan | | Fixed Assets | -921 million yuan | | Liabilities | | | Lease Liabilities | +490 million yuan | | Non-current Liabilities Due Within One Year | +41 million yuan | | Long-term Payables | -316 million yuan | | Equity | | | Retained Earnings | -48 million yuan |