SPAS(SH:603168)2020-10-28 16:00Financial Performance - Operating revenue for the first nine months was CNY 240,193,945.35, down 40.61% year-on-year[5] - Net profit attributable to shareholders was a loss of CNY 28,056,470.86, representing a decline of 171.65% compared to the same period last year[5] - Basic earnings per share were CNY -0.09, down 175.00% from CNY 0.12 in the previous year[5] - The weighted average return on net assets was -1.90%, a decrease of 4.51 percentage points compared to the previous year[5] - Total profit for the first three quarters of 2020 was a loss of approximately 28.52 million, compared to a profit of 48.48 million in the same period of 2019[39] - Net profit for Q3 2020 was a loss of approximately 13.50 million, compared to a profit of 13.46 million in Q3 2019, representing a significant decline[39] - The company reported a significant increase in financial expenses, with a net financial expense of approximately -4.48 million in Q3 2020, compared to -0.73 million in Q3 2019[38] - The company reported an investment loss of approximately 688,783 in Q3 2020, compared to a profit of 7.74 million in Q3 2019[38] Cash Flow and Assets - The net cash flow from operating activities was CNY 22,959,883.89, a decrease of 56.66% year-on-year[5] - The company reported a significant decrease in cash flow due to a reduction in financial products[11] - The cash flow from operating activities for the first three quarters of 2020 was approximately ¥22.96 million, down from ¥52.97 million in the same period of 2019, indicating a decline of 56.5%[45] - The company reported a net cash flow from investment activities of CNY 131,912,815.23, a significant improvement compared to a net outflow of CNY 19,986,203.16 in the previous year[48] - Total cash and cash equivalents at the end of Q3 2020 reached CNY 380,948,972.71, an increase from CNY 186,203,697.24 at the end of Q3 2019[49] - The company's cash inflow from other operating activities increased to CNY 11,638,351.95, compared to CNY 2,116,153.93 in the same period of 2019[48] - The company's cash flow from investment activities showed a net inflow of CNY 139,545,699.76 in Q3 2020, contrasting with a net outflow of CNY 8,257,373.11 in Q3 2019[46] Shareholder Information - The total number of shareholders at the end of the reporting period was 21,866[8] - The largest shareholder, Chen Dekang, held 70,096,671 shares, accounting for 21.73% of the total shares[9] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,543,104,317.62, a decrease of 2.91% compared to the end of the previous year[5] - Current liabilities totaled CNY 81,592,968.01, down from CNY 95,979,193.75, indicating a reduction of about 14.9%[31] - The total liabilities decreased to CNY 85,672,968.01 from CNY 100,284,193.75, indicating a decline of about 14.6%[32] - The total equity attributable to shareholders decreased to CNY 1,457,431,349.61 from CNY 1,489,036,337.96, a decline of about 2.1%[32] - The company's retained earnings decreased to CNY 405,320,079.19 from CNY 436,925,067.54, reflecting a decline of approximately 7.2%[32] - The total current liabilities were CNY 77,900,186.06, with accounts payable at CNY 23,102,004.25[57] Operational Challenges - The company is facing potential risks regarding the consistency evaluation of its core product, the benzalkonium chloride eye drops, which may impact production and sales[17] - The company has applied for an extension to complete the consistency evaluation of its eye drops due to delays caused by the COVID-19 pandemic[16] - The company anticipates a potential cumulative net profit loss for the year due to declining revenues from key products like eye drops and cephalosporins, alongside expected losses from its subsidiary[26] - The company is actively addressing the challenges posed by economic instability and is implementing measures to enhance operational efficiency[26] Management and Governance - The company has undergone significant management changes, including the appointment of new non-independent and independent directors as well as a new general manager[23] - The company has proposed new candidates for its board of directors and supervisory board, indicating a strategic shift in governance[21] Research and Development - Research and development expenses for Q3 2020 were approximately 5.05 million, a decrease of 41.5% from 8.56 million in Q3 2019[38] - The company's R&D expenses in the first three quarters of 2020 were approximately ¥13.94 million, representing a decrease of 25.8% from ¥18.79 million in the same period of 2019[42]