EmbedWay(SH:603496)2020-10-29 16:00Financial Performance - Net profit attributable to shareholders decreased by 90.71% to CNY 6,634,844.88 year-on-year [8]. - Operating revenue declined by 7.10% to CNY 309,279,492.37 for the first nine months of the year [8]. - The weighted average return on equity decreased by 8.26 percentage points to 0.83% [8]. - Basic earnings per share dropped by 90.16% to CNY 0.0345 [8]. - Other income decreased by 78.66%, from 19,803,314.58 to 4,225,303.24, primarily due to a reduction in software product refunds [22]. Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of CNY 83,432,166.59, worsening from a net outflow of CNY 35,349,385.20 in the same period last year [8]. - Net cash flow from operating activities decreased significantly, resulting in a net outflow of 83,432,166.59 compared to -35,349,385.20 in the previous year [22]. - Cash and cash equivalents increased by 74.06%, reaching 128,526,709.82 from 73,842,084.03, primarily due to the redemption of structured deposits during the reporting period [16]. Assets and Liabilities - Total assets increased by 12.30% to CNY 1,081,906,909.70 compared to the end of the previous year [8]. - Accounts receivable decreased by 32.10%, from 89,066,033.37 to 60,476,015.27, mainly due to the maturity of notes receivable [20]. - Inventory decreased by 44.13%, from 3,295,815.26 to 1,841,243.78, attributed to increased procurement of raw materials for orders [20]. - Short-term borrowings increased by 150.00%, from 15,000,000.00 to 37,500,000.00, primarily due to new bank loans [20]. - Accounts payable increased by 99.71%, from 63,804,070.17 to 127,426,230.18, mainly due to increased material procurement for stock [20]. - The company reported a significant increase in deferred income by 41.67%, from 1,200,000.00 to 1,700,000.00, mainly due to government subsidies received [20]. Shareholder Information - The total number of shareholders reached 17,213 by the end of the reporting period [12]. - Major shareholder Shen Zhenyu holds 19.36% of the shares, with 3,340,000 shares pledged [12]. Corporate Strategy and Developments - The company has not disclosed any new product developments or market expansion strategies in this report [8]. - The company plans to raise up to RMB 600 million through a non-public offering of A-shares, approved by the board and the supervisory board [23]. - The company received approval from the China Securities Regulatory Commission for the non-public issuance of shares on August 25, 2020 [23]. Non-Recurring Items - Non-recurring gains and losses amounted to CNY 4,832.79 for the third quarter [10].