Sinoma-ec/SEC(SH:603126)2020-10-29 16:00Financial Performance - Operating revenue for the first nine months reached CNY 1,859,062,966.17, a 19.84% increase year-on-year, driven by higher contract amounts for engineering projects and boiler equipment [7]. - Net profit attributable to shareholders decreased by 27.34% to CNY 48,783,610.72, primarily due to lower gross margins on engineering projects and a decline in the fair value of held stocks [7]. - The company experienced a strong recovery in net profit for the third quarter compared to both the previous quarter and the same period last year [7]. - Total operating revenue for Q3 2020 reached ¥713,045,968.61, a 36.7% increase from ¥521,755,250.99 in Q3 2019 [28]. - Net profit for Q3 2020 was ¥46,436,269.19, compared to ¥24,252,901.36 in Q3 2019, representing an increase of 92.1% [29]. - The total comprehensive income attributable to the parent company for Q3 2020 was ¥38,400,170.65, up from ¥20,631,457.03 in Q3 2019, reflecting an increase of approximately 86.1% [31]. Cash Flow - Net cash flow from operating activities surged by 1,082.84% to CNY 168,705,409.49, attributed to reduced cash payments for goods and services [7]. - The net cash flow from operating activities for Q3 2020 was CNY 168,705,409.49, a significant increase from CNY 14,262,714.51 in Q3 2019, reflecting improved operational efficiency [37]. - The company reported a total cash inflow from operating activities of CNY 829,527,212.93 for the first nine months of 2020, compared to CNY 363,703,714.09 in the previous year, marking a growth of 128.3% [39]. - The net cash flow from investing activities for Q3 2020 was CNY 6,264,865.42, a recovery from a negative cash flow of CNY 15,118,702.32 in Q3 2019, showing a positive trend in investment returns [37]. - The company achieved a net increase in cash and cash equivalents of CNY 180,748,488.08 in Q3 2020, contrasting with a decrease of CNY 48,922,163.59 in Q3 2019, highlighting improved cash management [38]. Assets and Liabilities - Total assets increased by 13.48% to CNY 4,371,363,137.42 compared to the end of the previous year [6]. - Total liabilities reached RMB 2,353,230,163.94, compared to RMB 1,846,131,250.94, marking an increase of around 27.5% [22]. - Current assets totaled RMB 3,377,909,253.94, up from RMB 2,794,199,973.96, indicating a rise of about 21% year-over-year [20]. - The company's inventory and contract assets amounted to CNY 1,020,682,489.31, an increase of 20.59% compared to the beginning of the period [15]. - Total liabilities increased to ¥698,689,808.19 in Q3 2020 from ¥579,702,113.26 in Q3 2019, reflecting a growth of 20.5% [25]. Shareholder Information - As of September 30, 2020, the total number of shareholders is 40,287 [13]. - The top ten shareholders hold a total of 365,000,000 shares, representing 61.88% of the total shares [13]. - The total equity attributable to shareholders was RMB 1,754,977,547.27, slightly up from RMB 1,747,572,275.68, indicating a marginal increase of about 0.4% [22]. Research and Development - Research and development expenses for Q3 2020 were ¥22,742,989.22, an increase of 16.4% compared to ¥19,544,416.03 in Q3 2019 [28]. - Research and development expenses for Q3 2020 were ¥6,279,621.32, slightly down from ¥6,661,617.81 in Q3 2019, indicating a decrease of about 5.7% [32]. Accounting and Reporting Changes - The company adjusted its accounting for contract liabilities, reflecting a shift in revenue recognition practices [43]. - The company implemented new revenue recognition standards, adjusting previously received payments from "prepayments" to "contract liabilities" [48]. - The company continues to monitor and adjust its financial reporting in accordance with new accounting standards [48].