ELLASSAY(SH:603808)2021-10-29 16:00Financial Performance - The company's operating revenue for Q3 2021 was ¥573,327,701.40, representing a year-on-year increase of 7.75%[4] - The net profit attributable to shareholders decreased by 27.76% to ¥57,277,715.89 in Q3 2021[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥51,164,081.74, down 31.27% year-on-year[4] - Year-to-date revenue reached ¥1,672,763,560.93, an increase of 24.24% compared to the same period last year[4] - The basic earnings per share for Q3 2021 was ¥0.16, a decrease of 33.33% from the previous year[5] - Total profit for Q3 2021 was CNY 321,763,576.12, down from CNY 420,330,354.96 in Q3 2020, representing a decrease of about 23.4%[25] - Net profit attributable to shareholders for Q3 2021 was CNY 243,708,572.83, compared to CNY 341,550,846.16 in Q3 2020, indicating a decline of approximately 28.7%[26] - Basic and diluted earnings per share for Q3 2021 were CNY 0.72, down from CNY 1.03 in Q3 2020, indicating a decrease of approximately 30.1%[26] - The company recorded a total comprehensive income of CNY 258,035,106.68 for Q3 2021, compared to CNY 351,598,435.52 in Q3 2020, reflecting a decline of about 26.6%[26] Revenue and Sales - ELLASSAY reported a main business revenue of 69,004.67 million RMB, with a gross margin of 72.56%, reflecting a year-on-year increase of 11.68% in revenue[11] - The total main business revenue for the company reached 165,085.56 million RMB in the first nine months of 2021, representing a 29.05% increase compared to the same period last year[11] - Direct sales contributed 123,160.38 million RMB to the main business revenue, with a gross margin of 70.33%, up from 69.84% in the previous year[11] - Online sales accounted for 10.98% of the total main business revenue, generating 18,118.80 million RMB with a gross margin of 47.95%[12] - The company achieved total revenue from sales of goods and services of CNY 1,731,339,253.56 for the first three quarters of 2021, compared to CNY 1,425,213,901.63 in the same period of 2020, representing a growth of about 21.5%[28] Assets and Liabilities - The total assets at the end of Q3 2021 were ¥4,290,975,546.67, reflecting a 19.98% increase from the end of the previous year[5] - The company's net assets increased to RMB 2,864,977,759.98 as of September 30, 2021, compared to RMB 2,251,444,643.04 at the end of 2020, reflecting a growth of 27.2%[22] - The company's cash and cash equivalents amounted to RMB 979,300,382.03 as of September 30, 2021, compared to RMB 757,703,347.39 at the end of 2020, indicating a 29.2% increase[19] - The total liabilities as of September 30, 2021, were RMB 1,425,997,786.69, compared to RMB 1,325,066,512.47 at the end of 2020, reflecting an increase of 7.6%[21] - The company's inventory as of September 30, 2021, was RMB 669,383,443.88, an increase of 25.7% from RMB 532,472,624.98 at the end of 2020[20] - Total current liabilities increased to approximately 799.93 million, up by 9.93%[33] - Total liabilities rose to approximately 1.33 billion, marking an increase of 17.92%[33] Operational Costs - The increase in operating expenses was attributed to a recovery in store personnel and operational costs, which rose by 23.85% in Q3 2021[9] - The main business cost for the company was 54,580.32 million RMB, which is a 28.23% increase year-on-year[11] - The total operating costs for the first three quarters of 2021 were RMB 1,394,628,017.68, up 19.4% from RMB 1,167,778,706.70 in the previous year[24] Shareholder Information - The top shareholder, Shenzhen Ge Li Si Investment Management Co., Ltd., holds 55.06% of the shares, indicating strong institutional support[14] - The company completed a non-public offering of shares during the reporting period, enhancing its capital structure[16] - The company has canceled 5,992,800 stock options from the 2019 stock option incentive plan due to not meeting performance targets[18] Future Plans and Strategies - The company plans to enhance brand marketing and customer acquisition strategies, including investments in social media platforms and offline promotional events[9] - The company has plans for market expansion and new product development, although specific figures were not disclosed[35] - The company is focusing on enhancing its technological capabilities and exploring potential mergers and acquisitions[35] - The company plans to issue bonds up to RMB 500 million to professional investors, with a term not exceeding 5 years[17] Cash Flow and Financial Health - The company reported a net cash flow from operating activities of CNY 128,056,895.04 for the first three quarters of 2021, an increase from CNY 118,457,096.81 in the same period of 2020, reflecting a growth of about 5.4%[28] - Cash and cash equivalents at the end of Q3 2021 totaled CNY 950,459,983.21, up from CNY 840,389,432.78 at the end of Q3 2020, marking an increase of approximately 13.1%[29] - The company reported a net cash outflow from investing activities of CNY 80,512,873.28 for the first three quarters of 2021, a significant decrease from a net inflow of CNY 266,578,347.17 in the same period of 2020[29] - The company reported a financial expense of RMB -3,698,945.71 for the first three quarters of 2021, a significant improvement compared to RMB 8,310,105.88 in the same period of 2020[24] Credit Quality - The company reported a decrease in credit impairment losses from CNY 2,048,887.00 in Q3 2021 compared to a loss of CNY 7,894,628.86 in Q3 2020, indicating an improvement in credit quality[25]