Wencan(SH:603348)2021-10-27 16:00Key Financial Data This section provides an overview of the company's key financial performance and position for the current period and year-to-date Key Accounting Data and Financial Indicators In Q3 2021, operating revenue increased by 14.88% year-on-year, but net profit attributable to parent company shareholders turned to a loss of RMB 4.46 million, a significant decrease of 111.23% 2021 Q3 and Year-to-Date Key Financial Indicators | Indicator | Current Period (Q3) | YoY Change (%) | Year-to-Date (YTD) | YTD YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 932,625,189.60 | 14.88 | 2,965,129,842.69 | 103.60 | | Net Profit Attributable to Shareholders of the Listed Company (RMB) | -4,461,334.11 | -111.23 | 68,826,008.96 | -7.17 | | Net Profit Attributable to Shareholders Excluding Non-recurring Items (RMB) | -5,899,507.90 | -114.56 | 64,275,806.96 | -0.95 | | Net Cash Flow from Operating Activities (RMB) | N/A | N/A | 368,506,681.21 | -19.02 | | Basic Earnings Per Share (RMB/share) | -0.0174 | -109.88 | 0.2676 | -18.90 | End of Period Key Assets and Equity Data | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,674,152,052.22 | 5,600,601,266.66 | 1.31 | | Total Equity Attributable to Shareholders of the Listed Company | 2,660,151,186.05 | 2,580,795,781.84 | 3.07 | Non-recurring Gains and Losses Items and Amounts The company's non-recurring gains and losses totaled RMB 1.44 million for the current period and RMB 4.55 million year-to-date, primarily from government grants offset by restructuring expenses Non-recurring Gains and Losses Details | Item | Amount for Current Period (RMB) | Amount Year-to-Date (RMB) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -144,565.55 | -3,034,545.05 | | Government Grants Recognized in Current Profit/Loss | 3,082,439.66 | 13,187,183.23 | | Enterprise Restructuring Expenses | -1,743,239.41 | -4,226,085.53 | | Other Non-operating Income and Expenses | 664,221.65 | -146,807.17 | | Less: Income Tax Impact | 420,682.56 | 1,229,543.48 | | Total | 1,438,173.79 | 4,550,202.00 | Analysis of Changes in Key Financial Data and Indicators Year-to-date operating revenue surged by 103.60% due to the consolidation of French Balian Group, while Q3 net profit declined 111.23% due to customer production cuts and rising raw material costs - Year-to-date operating revenue increased by 103.60%, primarily due to the consolidation of French Balian Group into the financial statements910 - Net profit attributable to parent company shareholders in Q3 decreased by 111.23% year-on-year, mainly due to: - Production cuts by some customers due to chip shortages and pandemic impacts, affecting company orders - Rapid increase in aluminum raw material prices, with product price adjustments lagging, impacting operating profit10 Shareholder Information This section details the company's shareholder structure, including the total number of shareholders and the top five shareholdings Total Number of Common Shareholders and Top Ten Shareholders' Shareholding Information As of the end of the reporting period, the company had 14,292 common shareholders, with the top five shareholders collectively holding 57.2% - As of the end of the reporting period, the company had 14,292 common shareholders11 Top Five Shareholders' Shareholding Information | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Tang Jiexiong | 30,000,000 | 11.44 | | Tang Jiebang | 30,000,000 | 11.44 | | Tang Jiewei | 30,000,000 | 11.44 | | Tang Jiecao | 30,000,000 | 11.44 | | Foshan Shengdezhi Investment Co., Ltd. | 30,000,000 | 11.44 | - The company's controlling shareholders and actual controllers are Tang Jiexiong and Tang Jiebang, who are cousins and parties acting in concert; Tang Jiewei and Tang Jiecao are the siblings of Tang Jiexiong and Tang Jiebang, respectively, indicating related party relationships among these shareholders13 Other Reminders This section highlights other significant matters, including the progress of asset transfers to a wholly-owned subsidiary Progress of Asset Transfer to Wholly-Owned Subsidiary The company is transferring its Foshan factory's casting business to Guangdong Wencan Die Casting Technology Co., Ltd. to separate production and management functions, with most assets and personnel already transferred - The company plans to transfer assets and liabilities related to the Foshan factory's casting business to its wholly-owned subsidiary, Guangdong Wencan Die Casting Technology Co., Ltd., to clarify responsibilities between the group and its factories and separate production from management functions15 - The asset transfer involves RMB 361.70 million in assets and RMB 227.37 million in liabilities; all assets and personnel, except for buildings, have been transferred15 Quarterly Financial Statements This section presents the company's consolidated financial statements for the quarter, including the balance sheet, income statement, and cash flow statement Consolidated Balance Sheet As of September 30, 2021, total assets were RMB 5.67 billion, a slight increase of 1.31% from year-end, with total liabilities remaining stable at RMB 3.01 billion and equity attributable to shareholders growing by 3.07% Balance Sheet Key Items | Item | September 30, 2021 (RMB) | December 31, 2020 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,674,152,052.22 | 5,600,601,266.66 | +1.31% | | Total Liabilities | 3,014,000,866.17 | 3,019,805,484.82 | -0.19% | | Total Equity Attributable to Parent Company Shareholders | 2,660,151,186.05 | 2,580,795,781.84 | +3.07% | Consolidated Income Statement For the first three quarters of 2021, total operating revenue reached RMB 2.97 billion, a 103.60% increase driven by consolidation, but total operating costs grew faster at 110.8%, leading to a 24.78% decline in operating profit 2021 First Three Quarters Income Statement Key Items | Item | 2021 First Three Quarters (RMB) | 2020 First Three Quarters (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 2,965,129,842.69 | 1,456,332,800.04 | +103.60% | | II. Total Operating Costs | 2,852,481,229.08 | 1,353,307,357.18 | +110.8% | | III. Operating Profit | 72,434,400.66 | 96,304,918.59 | -24.78% | | IV. Total Profit | 70,106,009.65 | 88,054,346.25 | -20.38% | | Net Profit Attributable to Parent Company Shareholders | 68,826,008.96 | 74,143,299.34 | -7.17% | Consolidated Cash Flow Statement In the first three quarters of 2021, net cash flow from operating activities decreased by 19.02% to RMB 368.51 million, while investment and financing activities resulted in net cash outflows, leading to a net decrease in cash and cash equivalents of RMB 218.76 million 2021 First Three Quarters Cash Flow Statement Key Items | Item | 2021 First Three Quarters (RMB) | 2020 First Three Quarters (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 368,506,681.21 | 455,063,004.09 | | Net Cash Flow from Investing Activities | -394,853,120.27 | -565,099,897.22 | | Net Cash Flow from Financing Activities | -178,022,935.20 | 698,452,680.70 | | Net Increase/Decrease in Cash and Cash Equivalents | -218,761,597.14 | 586,123,219.64 | Adoption and Adjustment of New Lease Standards from 2021 Effective January 1, 2021, the company adopted new lease standards, adjusting the opening balance sheet by recognizing right-of-use assets and lease liabilities while reclassifying certain fixed assets and long-term payables - In accordance with Ministry of Finance regulations, the company adopted new lease standards effective January 1, 2021, and adjusted relevant financial statement accounts41 New Lease Standards' Major Impact on January 1, 2021 Balance Sheet | Item | Adjustment Amount (RMB) | | :--- | :--- | | Assets | | | Fixed Assets | -15,408,000.00 | | Right-of-Use Assets | +25,623,825.00 | | Liabilities and Equity | | | Lease Liabilities | +15,030,825.00 | | Long-term Payables | -4,317,450.00 | | Retained Earnings | -497,550.00 |