SGC(SH:603269)2021-10-27 16:00Major Financial Data Key Accounting Data and Financial Indicators The company achieved strong performance in Q3 and the first three quarters of 2021, though operating cash flow turned negative Key Financial Indicators for the First Three Quarters of 2021 | Indicator | Year-to-Date | YTD YoY Change (%) | Current Quarter (Q3) | Q3 YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 714,383,754.19 CNY | 78.21% | 291,807,730.68 CNY | 71.22% | | Net Profit Attributable to Shareholders | 34,301,284.15 CNY | 856.60% | 14,192,142.33 CNY | 491.60% | | Net Profit Attributable to Shareholders (Non-recurring items deducted) | 29,467,196.68 CNY | 6,376.43% | 10,752,905.43 CNY | 542.51% | | Net Cash Flow from Operating Activities | -69,662,584.87 CNY | -342.53% | N/A | N/A | | Basic Earnings Per Share | 0.30 CNY/Share | 650.00% | 0.12 CNY/Share | 300.00% | | Total Assets (End of Period) | 2,337,193,319.58 CNY | 10.57% (vs Year-End) | - | - | | Equity Attributable to Parent (End of Period) | 866,020,233.57 CNY | 0.87% (vs Year-End) | - | - | Non-recurring Profit and Loss Items and Amounts Non-recurring profit for the first three quarters of 2021 totaled CNY 4.83 million, primarily from government grants Details of Non-recurring Profit and Loss for the First Three Quarters of 2021 | Item | Year-to-Date Amount (CNY) | Current Quarter Amount (CNY) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -219,563.04 | -3,209.36 | | Government Grants Recognized in Current Profit/Loss | 5,204,309.22 | 3,499,137.84 | | Gains/Losses from Fair Value Changes of Financial Assets, etc. | 499,996.72 | 434,976.45 | | Other Non-operating Income and Expenses | 769,762.54 | 634,459.35 | | Less: Income Tax Effect | 1,277,596.25 | 983,157.79 | | Less: Effect on Minority Interests (After Tax) | 144,400.80 | 142,969.59 | | Total | 4,834,087.47 | 3,439,236.90 | Analysis of Changes in Key Financial Data and Indicators Profit growth was driven by business expansion and acquisitions, while operating cash flow declined due to increased project-related payments - Operating revenue growth (+78.21%) was driven by substantial growth in the main business and the addition of new market operations from acquisitions9 - Net profit attributable to shareholders growth (+856.60%) was due to revenue growth outpacing the increase in expenses9 - Net cash flow from operating activities decreased (-342.53%) primarily due to a CNY 182 million increase (+59.55%) in payments for goods and a CNY 82 million increase (+75.89%) in payments for deposits and other operating activities10 Shareholder Information Shareholder Holdings The company had 7,021 common shareholders, with the top two acting as joint actual controllers under a concerted action agreement - The total number of common shareholders was 7,021 at the end of the reporting period12 Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Ratio (%) | Number of Shares | | :--- | :--- | :--- | | Jin Aoda | 16.47% | 18,530,773 | | Wu Zhuping | 13.16% | 14,812,500 | | Yang Hua | 4.76% | 5,354,519 | | Jiangsu Gaojin Venture Capital Co., Ltd. | 3.23% | 3,636,625 | | Gongqingcheng Tianbaoxing Investment Partnership | 3.00% | 3,375,577 | | Changzhou Southern Investment Co., Ltd. | 2.60% | 2,925,000 | | Zhang Zhongxie | 2.54% | 2,856,525 | | Jiang Renxi | 2.09% | 2,350,000 | | Xu Zhijun | 1.19% | 1,334,437 | | Liu Zhizheng | 1.16% | 1,308,250 | - Shareholders Jin Aoda and Wu Zhuping are parties acting in concert under a "Concerted Action Agreement," with Wu Zhuping's opinion prevailing in case of disagreement15 Other Matters for Attention Other Important Information No other significant operational information requires special investor attention for the reporting period - The company has no other important information requiring investor attention for this reporting period16 Quarterly Financial Statements Audit Opinion Type The company's financial statements for the third quarter of 2021 are unaudited - The third-quarter financial statements are unaudited417 Financial Statements As of Q3 2021, total assets grew to CNY 2.34 billion, with significant year-to-date revenue and profit growth but negative operating cash flow Consolidated Balance Sheet Total assets reached CNY 2.34 billion, up 10.57%, driven by inventory growth, while total liabilities increased by 17.30% to CNY 1.46 billion Key Items of the Balance Sheet (Sep 30, 2021 vs Dec 31, 2020) | Item | Sep 30, 2021 (CNY) | Dec 31, 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,337,193,319.58 | 2,113,748,196.61 | +10.57% | | Inventories | 908,520,898.34 | 662,837,076.91 | +37.07% | | Accounts Receivable | 425,714,504.46 | 447,215,700.29 | -4.81% | | Total Liabilities | 1,457,106,291.11 | 1,242,173,108.37 | +17.30% | | Short-term Borrowings | 303,197,066.33 | 227,620,316.56 | +33.20% | | Contract Liabilities | 558,436,216.73 | 471,914,943.25 | +18.33% | | Equity Attributable to Parent | 866,020,233.57 | 858,575,361.87 | +0.87% | Consolidated Income Statement For the first three quarters of 2021, total operating revenue grew 78.21% to CNY 714 million, leading to a significant 856.60% increase in net profit Key Items of the Income Statement (Q1-Q3 2021 vs Q1-Q3 2020) | Item | Jan-Sep 2021 (CNY) | Jan-Sep 2020 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 714,383,754.19 | 400,875,032.97 | +78.21% | | Total Operating Costs | 666,195,375.63 | 390,657,877.23 | +70.53% | | Cost of Revenue | 502,460,449.23 | 274,139,694.99 | +83.29% | | Selling Expenses | 64,661,901.22 | 47,008,330.16 | +37.55% | | General & Administrative Expenses | 73,942,495.76 | 46,371,196.69 | +59.45% | | R&D Expenses | 15,498,502.92 | 9,647,473.87 | +60.65% | | Operating Profit | 43,647,305.95 | 7,047,079.73 | +519.36% | | Net Profit Attributable to Parent | 34,301,284.15 | 3,585,740.60 | +856.60% | Consolidated Statement of Cash Flows Net operating cash flow was negative CNY 69.66 million due to increased payments for goods, with the period-end cash balance at CNY 135 million Key Items of the Statement of Cash Flows (Q1-Q3 2021 vs Q1-Q3 2020) | Item | Jan-Sep 2021 (CNY) | Jan-Sep 2020 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -69,662,584.87 | 28,723,245.95 | | Net Cash Flow from Investing Activities | -49,012,766.13 | -89,503,342.72 | | Net Cash Flow from Financing Activities | 42,109,350.33 | 107,439,634.76 | | Net Increase in Cash & Cash Equivalents | -80,065,133.97 | 46,504,989.09 | | Cash & Cash Equivalents at End of Period | 135,029,054.11 | 209,063,036.12 | Adjustments for First-time Adoption of the New Lease Standard Adoption of the new lease standard on January 1, 2021, resulted in the recognition of right-of-use assets and lease liabilities Key Adjustments to the Jan 1, 2021 Financial Statements for Adopting the New Lease Standard | Adjusted Item | Adjustment Amount (CNY) | | :--- | :--- | | Assets | | | Fixed Assets | -7,096,309.31 | | Right-of-use Assets | +12,765,730.42 | | Liabilities | | | Non-current Liabilities Due within One Year | +3,976,199.45 | | Lease Liabilities | +2,603,334.16 | | Equity | | | Retained Earnings | -910,112.50 |