CHERVON-AUTO(SH:603982)2023-10-27 16:00Financial Performance - In Q3 2023, the company achieved operating revenue of CNY 568.13 million, an increase of 18.93% year-on-year, marking a new high for quarterly revenue[7]. - For the first three quarters of 2023, the total operating revenue reached CNY 1.51 billion, up 23.56% compared to the same period last year[7]. - The company's net profit attributable to shareholders was a loss of CNY 145.31 million in Q3 2023, with a cumulative loss of CNY 379.03 million for the year[5]. - The basic and diluted earnings per share for Q3 2023 were both CNY -0.5536, with a year-to-date figure of CNY -1.4390[6]. - The net profit for Q3 2023 was -379,026,341.80 RMB, compared to -56,087,631.88 RMB in Q3 2022, indicating a significant increase in losses[25]. - Operating profit for Q3 2023 was -404,287,621.65 RMB, compared to -75,324,444.12 RMB in the same period last year, reflecting a worsening operational performance[25]. - The company reported a total comprehensive loss of -377,269,046.92 RMB for Q3 2023, compared to -55,933,116.93 RMB in Q3 2022, indicating a substantial increase in overall losses[26]. - Basic earnings per share for Q3 2023 was -1.4390 RMB, compared to -0.2798 RMB in Q3 2022, reflecting a deterioration in earnings performance[26]. Assets and Liabilities - Total assets at the end of Q3 2023 were CNY 6.75 billion, reflecting a 7.23% increase from the end of the previous year[6]. - The company's total equity decreased to ¥2,483,442,122.40 in Q3 2023 from ¥2,852,474,612.28 in Q3 2022, indicating a decline of about 12.9%[21]. - Total liabilities as of Q3 2023 were ¥4,262,757,427.89, compared to ¥3,438,572,761.91 in the same period last year, reflecting an increase of approximately 24%[20]. - Short-term borrowings increased to ¥1,112,193,635.52 in Q3 2023 from ¥884,552,672.78 in the previous year, representing a rise of approximately 25.8%[20]. - The company's inventory decreased to ¥764,151,802.08 in Q3 2023 from ¥789,344,974.13 in Q3 2022, showing a decline of about 3.2%[21]. - The total amount of accounts receivable increased to ¥722,706,661.19 in Q3 2023 from ¥649,263,448.85 in the previous year, reflecting an increase of approximately 11%[20]. Operational Challenges - The company is currently in a transition phase from traditional automotive parts to new energy vehicle components, which has led to higher variable costs due to initial production inefficiencies[8]. - The efficiency of new product production is currently in a ramp-up stage, contributing to the overall financial performance challenges[12]. - The cash flow from operating activities has been adversely affected by increased working capital requirements and an expansion of operational losses[12]. - The company is in a phase of scaling up operations, which has led to increased management expenses and higher borrowing costs[12]. - The company's net profit attributable to shareholders for the current reporting period is significantly impacted by rapid capacity expansion, leading to a substantial increase in fixed costs and production of numerous new products[12]. Revenue Sources and Growth - The new energy business generated CNY 807 million in revenue for the first three quarters, accounting for 53.51% of total revenue[7]. - Total operating revenue for the first three quarters of 2023 reached ¥1,507,375,379.98, a significant increase from ¥1,219,934,216.76 in the same period of 2022, representing a growth of approximately 23.5%[24]. - Total operating costs for the first three quarters of 2023 amounted to ¥1,908,739,896.34, compared to ¥1,331,150,495.41 in 2022, indicating an increase of about 43.3%[24]. - Research and development expenses for the first three quarters of 2023 were ¥132,687,947.94, slightly up from ¥128,820,184.01 in the previous year[24]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 29,840[14]. - The largest shareholder, 泉峰精密技術控股有限公司, holds 27.5% of the shares, amounting to 72,000,000 shares[15]. - The second-largest shareholder, 泉峰(中国)投资有限公司, owns 24.7% of the shares, totaling 64,671,000 shares[15]. Future Outlook and Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2024[31]. - New product development includes the launch of an advanced automotive sensor line, expected to generate an additional 300 million RMB in revenue next year[31]. - The company has allocated 100 million RMB for R&D in new technologies, focusing on electric vehicle components[31]. - Future guidance indicates a projected revenue growth of 18% for Q4 2023, driven by increased demand in the automotive sector[31]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of 500 million RMB for strategic investments[31]. Cost Management and Efficiency - The company is implementing cost reduction and efficiency improvement measures, which have resulted in a positive gross margin in Q3 2023[8]. - The gross margin improved to 30%, up from 28% in the previous quarter, due to cost optimization strategies[31]. - The company is actively expanding its production capacity with new factories in Anhui and Hungary, which has led to increased fixed costs during the ramp-up period[8]. - The company incurred financial expenses of 75,431,047.03 RMB in Q3 2023, compared to 28,773,742.04 RMB in Q3 2022, highlighting increased borrowing costs[25].