ECH(SH:603200)2019-10-28 16:00Financial Performance - Operating revenue for the first nine months rose by 40.07% to CNY 382,467,889.97 year-on-year[6] - Net profit attributable to shareholders decreased by 12.14% to CNY 52,070,135.91 compared to the same period last year[6] - Basic and diluted earnings per share fell by 13.56% to CNY 0.51[7] - The weighted average return on equity decreased by 1.31 percentage points to 6.78%[7] - The decline in net profit was attributed to decreased performance in the automotive manufacturing sector and increased interest expenses[8] - The company reported a decrease in net profit after excluding non-recurring gains and losses, primarily due to increased labor and R&D costs[8] - The company reported a significant increase in goodwill, which rose by 122.67% to RMB 13,403,083.12 following the acquisition of Jiangsu Kangspai[15] - The company reported a total profit of ¥11,634,667.85 in Q3 2019, compared to ¥12,522,595.83 in Q3 2018[34] - The net profit attributable to shareholders was ¥10,890,382.73, down 20.5% from ¥13,693,714.86 in the same quarter last year[30] Cash Flow and Liquidity - Net cash flow from operating activities decreased by 126.22% to -CNY 2,448,408.93, primarily due to increased procurement expenses and accounts receivable[7] - Operating cash flow for the period was CNY 395.71 million, an increase of 26.85% compared to the previous period due to revenue growth[16] - Cash outflow from operating activities totaled CNY 398,155,715.83, up from CNY 302,612,724.48 in the previous year, indicating a rise of 31.6%[38] - Net cash flow from investing activities was negative CNY 77,278,941.27 for the first three quarters of 2019, an improvement from negative CNY 113,548,383.18 in the same period of 2018[39] - Net cash flow from financing activities was positive CNY 47,282,495.71 in the first three quarters of 2019, compared to negative CNY 44,446,122.69 in the same period of 2018[39] - The ending balance of cash and cash equivalents as of Q3 2019 was CNY 336,896,073.14, significantly higher than CNY 122,182,815.06 at the end of Q3 2018[39] - The company's cash and cash equivalents decreased significantly, impacting liquidity management[15] Assets and Liabilities - Total assets increased by 13.31% to CNY 1,045,236,055.31 compared to the end of the previous year[6] - Current liabilities increased to CNY 220.46 million from CNY 168.53 million, reflecting a rise in short-term borrowings[23] - Long-term receivables increased by 33.92% to RMB 41,246,935.47, primarily due to increased expenses related to the Xiamen Lehong PPP project[14] - The total amount of prepayments increased by 69.04% to RMB 78,346,462.66, attributed to project payments and equipment procurement for the Hebei Steel EPC project and the newly acquired Jiangsu Kangspai[14] - The company’s total liabilities increased to ¥234,454,428.99 from ¥168,786,038.24, representing a 38.8% rise[27] Research and Development - R&D expenses rose by 67.83% to RMB 25,067,073.37 due to the initiation of new research projects[15] - Research and development expenses for the first three quarters of 2019 were ¥25,067,073.37, compared to ¥14,935,901.40 in the same period of 2018, marking a 67.5% increase[29] - R&D expenses for Q3 2019 were ¥7,763,074.41, representing a 70.5% increase compared to ¥4,549,817.50 in Q3 2018[33] Market and Strategic Developments - The company plans to continue expanding its market presence through strategic acquisitions and new project developments[15] - The company established a wholly-owned subsidiary in London, UK, for overseas investment, registered on October 8, 2019[16] - The company has invested CNY 14 million in a private equity fund, which may pose significant risks affecting future profits[18] - The company is involved in a lawsuit that may impact profits significantly, with potential losses exceeding 10% of the most recent audited net profit[18] Sector Performance - The company experienced growth in the steel metallurgy sector, particularly from the new Hebei Steel EPC project[8] - Operating costs increased by 56.65% to RMB 251,764,669.22, driven by the growth in operating revenue[15] - The gross profit margin for Q3 2019 was approximately 33.5%, compared to 39.6% in Q3 2018[33]