Chahua(SH:603615)2023-10-24 16:00Key Financial Data Key Accounting Data and Financial Indicators In Q3 2023, operating revenue declined 3.67% with a net loss, but year-to-date, revenue decline narrowed to 1.41%, and net profit attributable to parent company shareholders turned profitable at 3.24 million Yuan, with total assets increasing 6.61% and parent equity slightly decreasing Key Financial Indicators for Q3 and First Three Quarters of 2023 | Indicator | Current Reporting Period (Q3) | Year-to-date (YTD) | Year-over-year change (%) (YTD) | | :--- | :--- | :--- | :--- | | Operating Revenue | 165 million Yuan | 491 million Yuan | -1.41% | | Net profit attributable to listed company shareholders | -1.02 million Yuan | 3.24 million Yuan | Not applicable (turned loss into profit) | | Net profit attributable to listed company shareholders after deducting non-recurring gains and losses | -1.602 million Yuan | -0.232 million Yuan | Not applicable (turned loss into profit) | | Net cash flow from operating activities | Not applicable | 54.035 million Yuan | -55.28% | | Basic earnings per share (Yuan/share) | -0.0042 | 0.0134 | Not applicable (turned loss into profit) | Key Balance Sheet Indicators as of Reporting Period End | Indicator | As of Current Reporting Period End (2023-09-30) | As of Previous Year End (2022-12-31) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1.461 billion Yuan | 1.371 billion Yuan | 6.61% | | Total equity attributable to listed company shareholders | 1.186 billion Yuan | 1.205 billion Yuan | -1.60% | Non-recurring Gains and Losses Items and Amounts In the first three quarters of 2023, the company's total non-recurring gains and losses amounted to 3.472 million Yuan, positively contributing to current profit, primarily from government grants totaling 2.861 million Yuan Details of Non-recurring Gains and Losses (Year-to-Date) | Item | Amount (Yuan) | | :--- | :--- | | Government grants recognized in current profit or loss | 2,860,580.19 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 704,009.87 | | Other non-operating income and expenses | 669,748.13 | | Gains and losses on disposal of non-current assets | 388,002.54 | | Total | 3,472,121.34 | Explanation of Key Financial Indicator Changes The company attributes the significant year-to-date improvement in net profit (turning loss into profit) to increased gross margin from lower raw material costs and enhanced capacity utilization, while net cash flow from operating activities decreased 55.28% year-over-year primarily due to increased cash payments for goods and services from higher capacity utilization - Net profit attributable to parent company shareholders and earnings per share turned profitable, primarily due to decreased raw material procurement costs and increased capacity utilization, which boosted gross margin and net profit1011 - Net cash flow from operating activities decreased by 55.28% year-over-year, mainly due to increased cash payments for goods and services resulting from higher capacity utilization10 Shareholder Information Shareholder Ownership As of the reporting period end, the company had 13,538 shareholders; the equity structure is highly concentrated and stable, with the Chen family members and related parties, as actual controllers, holding over 60% of shares, and shareholder Lin Shifu having some pledged shares - As of the reporting period end, the company had a total of 13,538 common shareholders13 - The company's actual controllers, Chen Kuisheng, Chen Guanyu, Chen Mingsheng, Lin Shifu, Chen Fusheng, and their related parties, hold a high combined stake, indicating a concentrated and stable equity structure1314 Top Five Shareholders' Holdings | Shareholder Name | Number of Shares | Shareholding Percentage (%) | | :--- | :--- | :--- | | Chen Guanyu | 61,062,111 | 25.25 | | Chen Kuisheng | 31,922,312 | 13.20 | | Chen Mingsheng | 25,910,826 | 10.71 | | Lin Shifu | 16,155,413 | 6.68 | | Chen Fusheng | 12,930,275 | 5.35 | Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2023, total assets increased by 6.61% to 1.461 billion Yuan, driven by cash growth, while total liabilities rose significantly from 165 million Yuan to 275 million Yuan due to increased short-term borrowings, and parent equity slightly decreased by 1.60% to 1.186 billion Yuan Balance Sheet Key Item Changes (September 30, 2023 vs December 31, 2022) | Item | September 30, 2023 (Yuan) | December 31, 2022 (Yuan) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 541,984,942.67 | 399,264,855.22 | ▲ Increased by 143 million Yuan | | Short-term borrowings | 140,000,000.00 | 20,000,000.00 | ▲ Increased by 120 million Yuan | | Total Assets | 1,461,035,908.29 | 1,370,508,034.79 | ▲ Increased by 6.61% | | Total Liabilities | 274,774,026.77 | 165,008,615.16 | ▲ Increased by 66.52% | | Equity attributable to parent company owners | 1,186,261,881.52 | 1,205,499,419.63 | ▼ Decreased by 1.60% | Consolidated Income Statement In the first three quarters of 2023, operating revenue slightly decreased by 1.41% to 491 million Yuan, but a 7.26% reduction in operating costs improved gross margin, turning operating profit from a -12.2 million Yuan loss to a 5.94 million Yuan profit, and achieving a net profit attributable to parent company shareholders of 3.24 million Yuan, successfully turning loss into profit Income Statement Key Items (First Three Quarters of 2023 vs First Three Quarters of 2022) | Item | First Three Quarters of 2023 (Yuan) | First Three Quarters of 2022 (Yuan) | Year-over-year change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 490,633,065.51 | 497,640,241.24 | -1.41% | | Operating Cost | 369,746,267.19 | 398,671,872.69 | -7.26% | | Operating Profit | 5,942,304.48 | -12,196,071.76 | Turned loss into profit | | Total Profit | 6,548,961.99 | -12,179,175.46 | Turned loss into profit | | Net Profit Attributable to Parent Company Shareholders | 3,240,461.12 | -9,419,630.42 | Turned loss into profit | Consolidated Cash Flow Statement In the first three quarters of 2023, net cash flow from operating activities significantly decreased by 55.28% to 54.03 million Yuan; net cash outflow from investing activities was 112 million Yuan, largely flat; financing activities turned positive with a net inflow of 85.74 million Yuan from new bank borrowings, resulting in a net increase of 28.48 million Yuan in cash and equivalents Cash Flow Statement Summary (First Three Quarters of 2023 vs First Three Quarters of 2022) | Item | First Three Quarters of 2023 (Yuan) | First Three Quarters of 2022 (Yuan) | | :--- | :--- | :--- | | Net cash flow from operating activities | 54,034,859.81 | 120,829,931.61 | | Net cash flow from investing activities | -112,188,186.45 | -102,786,525.96 | | Net cash flow from financing activities | 85,737,517.99 | -7,062,599.23 | | Net increase in cash and cash equivalents | 28,484,159.27 | 12,897,338.11 | - Cash inflow from financing activities primarily stemmed from 159 million Yuan in borrowings received, while 40 million Yuan was paid for debt repayment27 Impact of Accounting Standard Changes Effective 2023, the company adopted Ministry of Finance's "Interpretation No. 16 of Accounting Standards for Business Enterprises," requiring recognition of deferred income tax on assets and liabilities from specific single transactions, leading to retrospective adjustments that increased beginning deferred income tax assets and retained earnings by 311,183.27 Yuan each - The company adjusted its beginning-of-year financial statements 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 assets28 Impact of Accounting Standard Changes on Beginning-of-Year Financial Statement Items | Adjustment Item | Adjustment Amount (Yuan) | | :--- | :--- | | Deferred income tax assets | +311,183.27 | | Retained earnings | +311,183.27 | | Total Owners' Equity | +311,183.27 |