WLGF(SH:603779)2020-10-28 16:00Financial Performance - Operating revenue for the first nine months was CNY 263,750,396.04, a decrease of 47.62% year-on-year[6] - Net profit attributable to shareholders was a loss of CNY 164,094,963.17, compared to a profit of CNY 22,467,768.37 in the same period last year[6] - The company reported a total comprehensive loss of ¥26,609,268.34 for Q3 2020, compared to a comprehensive income of ¥695,709.58 in Q3 2019[29] - The company experienced a total loss of ¥186,651,190.43 for the first three quarters of 2020, compared to a profit of ¥33,582,198.00 in the same period of 2019[28] - The gross profit margin for Q3 2020 was -31.5%, compared to 0.7% in Q3 2019, indicating a substantial deterioration in profitability[28] Assets and Liabilities - Total assets decreased by 11.17% to CNY 1,826,993,500.11 compared to the end of the previous year[6] - Current assets totaled CNY 885,356,944.65, down from CNY 1,054,527,038.20, indicating a decrease of about 16%[21] - Total liabilities decreased to CNY 635,015,502.41 from CNY 696,954,475.99, reflecting a decline of around 8.8%[23] - Current liabilities totaled CNY 604,709,735.39, down from CNY 680,815,116.35, a decrease of about 11.2%[22] - The company's equity decreased to CNY 1,191,977,997.70 from CNY 1,359,746,617.96, a decline of approximately 12.3%[23] Cash Flow - Net cash flow from operating activities decreased by 94.03% to CNY 6,360,203.18 compared to the same period last year[6] - Cash received from operating activities decreased by 37.29% to $301,304,298.57, reflecting the decline in revenue during the reporting period[14] - Cash flow from operating activities for the first three quarters of 2020 was 6,360,203.18, a decrease of 94.0% from 106,551,058.21 in 2019[34] - Cash inflow from financing activities was CNY 161.51 million, a decrease of 38.8% from CNY 263.93 million in 2019[38] Shareholder Information - The number of shareholders at the end of the reporting period was 10,824[10] - The largest shareholder, Wang Zhenhai, holds 25.30% of the shares, totaling 84,184,129 shares[10] Regulatory and Legal Issues - The company is currently under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure regulations[16] - The company’s controlling shareholder's shares are subject to judicial auction, which may lead to changes in control[15] - The company has appealed against court rulings related to non-compliant guarantees, seeking to avoid compensation liabilities[17] Impact of COVID-19 - The company's operating revenue for the first three quarters was $263,750,396.04, a decrease of 47.62% compared to the same period last year, primarily due to the impact of the pandemic on consumer demand and sales channels[13] - The company anticipates a potential cumulative net loss for the year due to ongoing pressures from the COVID-19 pandemic and macroeconomic conditions[18] Deferred Tax Assets and Liabilities - Deferred tax assets increased by 86.57% to CNY 48,713,494.05, primarily due to increased losses from subsidiaries affected by the pandemic[12] - Deferred income tax liabilities were reported at approximately ¥2.33 billion[42] Research and Development - Research and development expenses for Q3 2020 were ¥839,055.81, a decrease of 8.7% from ¥918,835.25 in Q3 2019[28] - Research and development expenses for the first three quarters of 2020 were 1,493,532.03, a decrease of 30.4% from 2,147,235.44 in 2019[31] Other Income and Expenses - Other income rose significantly by 171.51% to $6,036,685.06, attributed to increased government subsidies received[13] - Management expenses increased by 59.12% to $53,759,593.93, mainly due to normal inventory write-offs during the reporting period[13]