Bestlink Technologies (SH:603206)2023-10-25 16:00Major Financial Data Key Accounting Data and Financial Indicators In the first three quarters of 2023, the company achieved 12.35% revenue growth, but net profit attributable to parent company shareholders slightly decreased by 1.04%, with net operating cash flow at -762.3 million CNY Key Financial Performance Indicators | Indicator | YTD (2023 Q1-Q3) | YoY Change (%) | Current Period (2023 Q3) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,749,958,107.76 CNY | 12.35% | 868,611,739.95 CNY | 7.43% | | Net Profit Attributable to Parent Company Shareholders | 110,709,462.81 CNY | -1.04% | 31,156,138.03 CNY | -8.52% | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) | 93,401,111.90 CNY | 0.83% | 25,187,969.88 CNY | 5.13% | | Net Cash Flow from Operating Activities | -762,303,924.06 CNY | N/A | N/A | N/A | | Basic Earnings Per Share (CNY/share) | 0.36 CNY | -12.20% | 0.10 CNY | -9.09% | Key Financial Position Indicators | Indicator | As of Report Period End (2023-09-30) | As of Prior Year End (2022-12-31) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,160,153,233.60 CNY | 4,521,489,630.53 CNY | 14.13% | | Total Equity Attributable to Parent Company Shareholders | 2,127,127,466.83 CNY | 2,084,266,361.55 CNY | 2.06% | Non-recurring Gains and Losses and Amounts In the first three quarters of 2023, the company's total non-recurring gains and losses amounted to 17.31 million CNY, primarily comprising government grants of 13.40 million CNY and fair value changes and investment income from transactional financial assets totaling 2.30 million CNY Non-recurring Gains and Losses Details | Item | YTD Amount (CNY) | Current Period Amount (CNY) | | :--- | :--- | :--- | | Total Non-recurring Gains and Losses | 17,308,350.91 | 5,968,168.15 | | Government Grants | 13,397,115.76 | 4,626,228.39 | | Gains/Losses from Transactional Financial Assets and Related Items | 2,300,652.57 | 7,240,767.21 | | Net Non-operating Income and Expenses | -704,649.00 | 136,152.15 | | Gains/Losses from Disposal of Non-current Assets | -83,464.78 | -43,105.24 | Shareholder Information Shareholding Status As of the report period end, the company had 30,854 common shareholders, with a highly concentrated equity structure where the top two shareholders, Zong Yan and Qin Weizhong, collectively hold over 59% and act in concert with Nanjing Huanzhi, Nanjing Yuanyihe, and Nanjing Changshengxing, significantly influencing the company - As of the report period end, the total number of common shareholders was 30,85413 Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage (%) | Nature of Shareholding | | :--- | :--- | :--- | | Zong Yan | 29.60% | Domestic Individual | | Qin Weizhong | 29.59% | Domestic Individual | | Nanjing Huanzhi Investment Management Partnership (Limited Partnership) | 6.34% | Other | | Nanjing Yuanyihe Equity Investment Partnership (Limited Partnership) | 2.95% | Other | | Nanjing Changshengxing Equity Investment Partnership (Limited Partnership) | 2.95% | Other | - Shareholders Zong Yan, Qin Weizhong, and entities like Nanjing Huanzhi, Yuanyihe, and Changshengxing are concerted parties, holding a high combined stake, indicating concentrated control14 Quarterly Financial Statements Consolidated Financial Statements Consolidated statements show an expansion in both total assets and liabilities, with revenue growth but a slight profit decline and significantly increased operating cash outflow pressure, indicating challenges in profitability and cash flow management amidst business expansion Consolidated Balance Sheet As of September 30, 2023, total assets reached 5.16 billion CNY, a 14.13% increase from the year-start, driven mainly by inventories (up 789 million CNY) and short-term borrowings (up 529 million CNY), while total liabilities grew 24.42% to 3.03 billion CNY, raising the asset-liability ratio from 53.9% to 58.8% Consolidated Balance Sheet Highlights | Key Asset Items | 2023-09-30 (CNY) | 2022-12-31 (CNY) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 285,962,471.68 | 536,726,978.52 | -46.7% | | Inventories | 2,486,525,506.75 | 1,697,609,526.62 | +46.5% | | Total Assets | 5,160,153,233.60 | 4,521,489,630.53 | +14.1% | | | | | | | Key Liability Items | 2023-09-30 (CNY) | 2022-12-31 (CNY) | Change | | Short-term Borrowings | 749,414,886.12 | 220,670,623.64 | +239.6% | | Accounts Payable | 1,566,952,200.84 | 1,757,377,849.17 | -10.8% | | Contract Liabilities | 400,397,471.51 | 182,934,618.60 | +118.9% | | Total Liabilities | 3,032,505,183.85 | 2,437,223,268.98 | +24.4% | Consolidated Income Statement In the first three quarters of 2023, the company's total operating revenue reached 2.75 billion CNY, up 12.35% year-on-year, but total operating costs increased by 13.15%, outpacing revenue growth, leading to a 4.12% year-on-year decline in operating profit and a slight 1.04% decrease in net profit attributable to parent company shareholders to 111 million CNY Consolidated Income Statement Highlights | Item | 2023 YTD (CNY) | 2022 YTD (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,749,958,107.76 | 2,447,745,849.35 | +12.35% | | Total Operating Costs | 2,645,243,558.07 | 2,337,799,002.40 | +13.15% | | Of which: Operating Costs | 2,362,249,249.25 | 2,077,505,679.69 | +13.71% | | Research and Development Expenses | 100,940,922.50 | 90,165,405.41 | +11.95% | | Operating Profit | 119,506,018.41 | 124,648,043.81 | -4.12% | | Total Profit | 118,703,643.95 | 124,192,051.74 | -4.42% | | Net Profit Attributable to Parent Company Shareholders | 110,709,462.81 | 111,868,075.92 | -1.04% | Consolidated Cash Flow Statement In the first three quarters of 2023, net cash flow from operating activities worsened to -762 million CNY from -603 million CNY in the prior year, primarily due to increased payments for goods and services, while investing activities turned positive with a net inflow of 60 million CNY, and financing activities provided a net inflow of 449 million CNY, offering necessary funding support for company operations Consolidated Cash Flow Statement Highlights | Item | 2023 YTD (CNY) | 2022 YTD (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -762,303,924.06 | -603,326,716.79 | | Net Cash Flow from Investing Activities | 59,576,075.80 | -410,013,978.75 | | Net Cash Flow from Financing Activities | 449,029,611.02 | 864,808,978.79 | | Net Increase in Cash and Cash Equivalents | -253,698,237.24 | -148,531,716.75 | Parent Company Financial Statements Parent company statements reflect the core business status, showing similar trends to consolidated reports with slight revenue growth, declining profit, and negative operating cash flow, indicating a need to strengthen core business profitability and cash generation capabilities Parent Company Balance Sheet Parent company total assets reached 4.75 billion CNY, an 11.43% increase from the year-start, with asset structure changes mirroring consolidated reports, notably significant increases in inventories and short-term borrowings, and other receivables growing from 389 million CNY to 444 million CNY, warranting attention Parent Company Balance Sheet Highlights | Key Asset Items | 2023-09-30 (CNY) | 2022-12-31 (CNY) | Change | | :--- | :--- | :--- | :--- | | Inventories | 1,850,688,089.28 | 1,223,611,942.26 | +51.3% | | Total Assets | 4,751,916,200.45 | 4,264,518,898.36 | +11.4% | | | | | | | Key Liability Items | 2023-09-30 (CNY) | 2022-12-31 (CNY) | Change | | Short-term Borrowings | 710,418,477.05 | 210,647,706.87 | +237.2% | | Total Liabilities | 2,689,517,417.89 | 2,229,161,388.82 | +20.7% | Parent Company Income Statement Parent company operating revenue for the first three quarters was 2.27 billion CNY, a slight 1.34% year-on-year increase, while net profit was 94.87 million CNY, a 4.82% year-on-year decrease, with a larger profit decline than consolidated reports, suggesting some subsidiaries may positively contribute to overall profit Parent Company Income Statement Highlights | Item | 2023 YTD (CNY) | 2022 YTD (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,272,273,930.57 | 2,242,234,330.87 | +1.34% | | Operating Profit | 97,063,484.48 | 108,232,762.41 | -10.32% | | Net Profit | 94,873,635.95 | 99,675,268.32 | -4.82% | Parent Company Cash Flow Statement Parent company net cash flow from operating activities was a severe -713 million CNY, consistent with consolidated trends, while financing activities provided a net inflow of 421 million CNY, offering necessary funding support for company operations Parent Company Cash Flow Statement Highlights | Item | 2023 YTD (CNY) | 2022 YTD (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -712,653,605.63 | -594,384,836.96 | | Net Cash Flow from Investing Activities | 45,043,387.38 | -416,633,682.75 | | Net Cash Flow from Financing Activities | 421,258,141.30 | 865,106,325.99 | Accounting Standard Changes and Financial Statement Adjustments Effective January 1, 2023, the company adopted Interpretation No. 16 of Accounting Standards for Business Enterprises, requiring recognition of deferred income tax on assets and liabilities from single transactions, leading to retrospective adjustments for deferred tax related to lease liabilities and right-of-use assets, impacting opening deferred tax assets, liabilities, and retained earnings - The company retrospectively adjusted its financial statements as of January 1, 2023, due to the adoption of Interpretation No. 16 of Accounting Standards for Business Enterprises, primarily involving the recognition of deferred income tax for temporary differences arising from lease liabilities and right-of-use assets36 Impact of Accounting Standard Changes on Consolidated Financial Statements | Consolidated Statement Item | Before Adjustment (CNY) | After Adjustment (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Deferred Income Tax Assets | 25,314,483.23 | 27,063,623.23 | +1,749,140.00 | | Deferred Income Tax Liabilities | 152,280.67 | 2,350,970.33 | +2,198,689.66 | | Retained Earnings | 462,885,799.02 | 462,436,249.36 | -449,549.66 |