ARTS GROUP(SH:603017)2021-10-27 16:00Financial Performance - The company's operating revenue for Q3 2021 was ¥357,592,936.06, a decrease of 13.53% compared to the same period last year[3]. - The net profit attributable to shareholders for Q3 2021 was ¥17,406,120.22, down 61.80% year-on-year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥18,827,768.66, a decrease of 60.31% compared to the previous year[3]. - The basic earnings per share for Q3 2021 was ¥0.0632, reflecting a decline of 61.70% year-on-year[4]. - Total operating revenue for the first three quarters of 2021 was approximately ¥992.07 million, a decrease of 6.5% compared to ¥1,061.61 million in the same period of 2020[20]. - Net profit for the third quarter of 2021 was approximately ¥94.91 million, a decline of 36.1% from ¥149.03 million in the same quarter of 2020[21]. - Basic and diluted earnings per share for the third quarter of 2021 were both ¥0.3499, down from ¥0.5380 in the same quarter of 2020[22]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,567,128,458.13, a decrease of 4.04% from the end of the previous year[4]. - The company's total assets amounted to approximately 3.567 billion yuan, a decrease from 3.717 billion yuan at the end of 2020[16]. - The company's current liabilities totaled approximately 1.574 billion yuan, down from 1.680 billion yuan at the end of 2020[16]. - The total liabilities rose to CNY 1,741,280,332.81 in Q3 2021, compared to CNY 1,692,820,479.63 in the previous year[29]. - The company's accounts receivable stood at CNY 1,019,747,076.24 in Q3 2021, indicating a stable collection period[28]. - The company's inventory was reported at CNY 4,301,859.80, reflecting effective inventory management[28]. Shareholder Equity - The equity attributable to shareholders at the end of the reporting period was ¥1,922,630,824.83, down 3.53% from the previous year[4]. - The company's equity attributable to shareholders decreased from approximately 1.993 billion yuan at the end of 2020 to about 1.923 billion yuan as of September 30, 2021[17]. - The company’s equity attributable to shareholders remained stable at CNY 1,993,070,305.50 as of Q3 2021[30]. Cash Flow - The company reported a net cash flow from operating activities of ¥14,922,899.52 for the year-to-date[3]. - Cash flow from operating activities for the first three quarters of 2021 was approximately ¥14.92 million, a significant improvement from a negative cash flow of ¥45.36 million in the same period of 2020[25]. - The company incurred cash outflows for financing activities totaling CNY 25,757,908.22 in Q3 2021, an improvement from CNY 124,621,275.79 in Q3 2020[26]. Non-Recurring Items and Challenges - Non-recurring gains and losses for Q3 2021 totaled -¥1,421,648.44, significantly impacted by the decrease in fair value gains from investments[5]. - The company faced challenges due to overdue commercial bills and increased bad debt provisions, particularly in the real estate design business[6]. - The company's net profit attributable to shareholders decreased by 35% year-on-year for the first nine months of 2021, primarily due to the impact of overdue bills and a decline in real estate design contracts[12]. - The company has stopped undertaking projects for Evergrande Group and is actively discussing solutions to address overdue bills[11]. Contracts and Business Development - Non-real estate design contracts signed by the company increased by 39% year-on-year to 768 million yuan in the first nine months of 2021, effectively offsetting the decline in real estate design projects[13]. - The total new contracts signed by the company reached 3.042 billion yuan in the first nine months of 2021, representing a year-on-year growth of 147.11%[13]. - The company plans to cooperate with local governments to promote the resumption and delivery of Evergrande's ongoing projects while safeguarding its legal rights[11]. Expenses and Investments - Research and development expenses for the third quarter of 2021 were approximately ¥60.70 million, an increase of 8.5% compared to ¥56.17 million in the same quarter of 2020[21]. - Management expenses for the third quarter of 2021 were approximately ¥101.03 million, up 6.4% from ¥94.70 million in the same quarter of 2020[21]. - Other income for the third quarter of 2021 was approximately ¥9.59 million, a decrease of 10.0% from ¥10.66 million in the same quarter of 2020[21]. - Investment income for the third quarter of 2021 was approximately ¥6.85 million, an increase of 19.2% compared to ¥5.75 million in the same quarter of 2020[21]. - The total cash inflow from investment activities for the first three quarters of 2021 was approximately ¥153.73 million, a decrease of 60.0% from ¥384.84 million in the same period of 2020[25]. - In Q3 2021, the company reported a net cash outflow from investing activities of CNY 63,544,710.67, compared to a net inflow of CNY 91,087,930.19 in Q3 2020[26]. - The company’s long-term equity investments were valued at CNY 48,510,359.38, showing a commitment to strategic investments[28]. Accounting Standards - The company has adopted new leasing standards effective from January 1, 2021, impacting its financial reporting[30].