STS(SH:603322)2021-04-21 16:00Financial Performance - Operating revenue for the first nine months was CNY 933,823,903.07, a slight decrease of 0.11% year-on-year[7] - Net profit attributable to shareholders of the listed company was CNY -2,688,341.70, compared to CNY -55,591,598.77 in the same period last year, indicating an improvement[7] - The weighted average return on net assets improved to 8.20% from -10.41% year-on-year[7] - The basic earnings per share for the reporting period was CNY 0.21, compared to CNY -0.36 in the same period last year[7] - The company reported a total non-recurring gains and losses of CNY 22,671,662.51 for the first nine months[10] - Operating profit was ¥61,283,611.50, a significant improvement compared to the previous loss of ¥28,060,197.81, driven by cost control and increased government subsidies[17] - Total profit amounted to ¥62,355,860.63, a turnaround from a loss of ¥28,966,671.08 in the prior period[17] - Net profit for the third quarter was CNY 50,659,707.90, a decrease of 35.7% compared to the previous year[18] - The net profit attributable to the parent company was ¥24,308,464.03, compared to a net loss of ¥47,745,798.03 in the same period last year[33] - The total profit for Q3 2020 was ¥41,651,421.02, while the total profit for Q3 2019 was a loss of ¥28,966,671.08[32] Cash Flow - The net cash flow from operating activities for the first nine months was CNY 13,882,704.62, a significant recovery from CNY -209,559,071.19 in the previous year[7] - The company's cash flow from operating activities increased by 35.77% to CNY 87,852,890.84, primarily due to an increase in government subsidies received[19] - Total cash inflow from operating activities reached CNY 1,034,531,101.10, up from CNY 902,751,883.24 in the first nine months of 2019[39] - Cash outflow from operating activities decreased to CNY 1,020,648,396.48 from CNY 1,112,310,954.43 year-on-year[39] - The company reported a net cash outflow from investing activities of CNY 24,168,319.21, an improvement from CNY 38,162,488.61 in the previous year[40] - Cash inflow from financing activities totaled CNY 394,081,171.07, down from CNY 573,335,152.47 in the same period last year[40] - The net cash flow from financing activities was negative at CNY -123,687,813.62, compared to a positive CNY 23,632,698.06 in the previous year[40] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,213,858,344.89, a decrease of 0.87% compared to the end of the previous year[7] - The total number of shareholders at the end of the reporting period was 16,447[11] - The largest shareholder, Liang Jianhua, holds 41.77% of the shares, with 38,948,000 shares pledged[12] - Accounts receivable decreased by 25.36% to ¥915,999,467.98 due to the implementation of new revenue standards[15] - Contract assets reached ¥317,129,165.71, reflecting the new revenue recognition policy[15] - Total current liabilities decreased to CNY 1,383,403,371.04 from CNY 1,428,814,288.06, reflecting improved financial management[25] - Total liabilities as of September 30, 2020, were CNY 1,454,997,736.70, compared to CNY 1,393,137,643.46 at the end of 2019[29] - The company reported a negative retained earnings of approximately -$8.98 million[50] Government Subsidies - The company received government subsidies amounting to CNY 8,241,498.41 during the reporting period, contributing to its financial performance[9] - The company received government subsidies that increased other income by 147.09% to ¥17,127,937.77[17] - The company received CNY 87,852,890.84 in government subsidies, which is a significant increase compared to the previous year[19] Cost Management - The company reported a significant reduction in employee compensation payments, down 31.88% to CNY 126,483,970.05, due to resource adjustments and personnel streamlining[19] - The company achieved a gross profit margin of approximately 5.8% in Q3 2020, down from 13.7% in Q3 2019[36] - The company's R&D expenses for Q3 2020 were ¥6,115,165.68, down from ¥7,807,235.23 in Q3 2019, indicating a reduction of approximately 21.6%[36] - The financial expenses for Q3 2020 were ¥5,702,096.63, a decrease from ¥8,110,724.92 in Q3 2019, reflecting a reduction of about 29.5%[36] Future Outlook - The company expects to turn a profit for the year compared to the previous year's loss, based on the operating conditions and contracts signed[20] - The company has initiated new projects in communication equipment production and cloud computing centers, contributing to significant capital expenditures[16] - The company has adopted new revenue and lease standards starting from 2020, which may impact future financial reporting and performance metrics[42]