Original(SH:603991)2020-10-28 16:00Financial Performance - Revenue for the period from January to September decreased by 26.35% to CNY 238,752,834.92 compared to the same period last year[5]. - Net profit attributable to shareholders was a loss of CNY 35,779,752.51, compared to a loss of CNY 9,075,026.20 in the same period last year[5]. - Basic and diluted earnings per share were both -CNY 0.48, compared to -CNY 0.12 in the same period last year[6]. - The weighted average return on net assets decreased by 7.04 percentage points to -8.92%[6]. - The company reported a net loss of RMB 35,779,752.51, a significant decline compared to the previous year's loss of RMB 9,075,026.20[13]. - The company anticipates a potential cumulative net loss for the year due to macroeconomic factors and industry competition, which may lead to a significant decline in revenue and profit compared to the previous year[17]. - The net loss for Q3 2020 was CNY 9,694,105.38, an improvement from a net loss of CNY 15,663,402.84 in Q3 2019, indicating a reduction in losses by approximately 38.5%[32]. - The company reported a total comprehensive loss of CNY 9,694,105.38 for Q3 2020, compared to a comprehensive loss of CNY 15,663,402.84 in Q3 2019[32]. - The total operating profit for the first three quarters of 2020 was a loss of ¥35,441,260.11, which is a reduction from a loss of ¥8,976,460.85 in the same period of 2019[34]. Assets and Liabilities - Total assets decreased by 13.51% to CNY 596,653,108.46 compared to the end of the previous year[5]. - The company's current assets totaled CNY 330,389,747.38, down 20.3% from CNY 414,390,882.37 at the end of 2019[21][22]. - The total liabilities decreased to CNY 213,338,042.95, down 21.3% from CNY 270,750,760.32 at the end of 2019[23][24]. - Total liabilities amounted to CNY 145,134,176.41, while total equity was CNY 384,706,837.56 as of the end of Q3 2020[27]. - The total cash inflow from operating activities for the first three quarters was ¥260,004,260.97, down from ¥304,203,169.27 in the previous year, representing a decrease of about 14.6%[37]. - The total cash outflow for purchasing goods and services in the first three quarters of 2020 was ¥160,945,838.52, down from ¥196,752,221.82 in the same period of 2019, reflecting a decrease of 18.2%[35]. Shareholder Information - The total number of shareholders at the end of the reporting period was 4,479[11]. - The top shareholder, Shenzhen Zhengxin Tongchuang Investment Development Co., Ltd., holds 27.00% of the shares[11]. - The company's equity attributable to shareholders decreased to CNY 383,315,065.51, a decline of 8.5% from CNY 419,094,818.02 at the end of 2019[24]. Cash Flow - Operating cash flow increased by 118.62% to CNY 51,879,733.65 for the period from January to September[5]. - Cash and cash equivalents decreased by 68.02% to RMB 5,976,762.32 due to reduced accounts receivable collections and repayment of due borrowings[12]. - The cash flow from operating activities for Q3 2020 was ¥51,879,733.65, compared to ¥23,730,794.22 in Q3 2019, marking an increase of approximately 118.5%[36]. - The company received cash from borrowings amounting to ¥127,910,000.00, a decrease from ¥204,800,000.00 in the previous year, representing a decline of about 37.5%[37]. Business Strategy and Operations - The company plans to transfer its underperforming optical communication cable business to a wholly-owned subsidiary, which is expected to constitute a major asset restructuring[16]. - The company has appointed various advisory firms for the asset transfer, including financial, auditing, and legal advisors[15]. - The company has not disclosed any new product developments or market expansion strategies during the conference call[20]. - The company is focusing on cost reduction strategies, as evidenced by the significant decrease in operating costs compared to the previous year[30]. Research and Development - Research and development expenses for Q3 2020 were CNY 6,539,902.69, down from CNY 9,262,477.59 in Q3 2019, a decrease of approximately 29.4%[30]. - Research and development expenses for the first three quarters of 2020 amounted to ¥12,999,122.06, down from ¥18,665,496.58 in the same period of 2019, reflecting a 30.2% decrease[33]. Accounting and Financial Reporting - The company has implemented new revenue recognition standards effective January 1, 2020, impacting the presentation of contract assets and liabilities[42]. - The company has made adjustments to accounting policies in accordance with the revised accounting standards[45]. - The company is not applying retrospective adjustments for prior comparative data under the new revenue and leasing standards[47]. - The company has not issued an audit report for this period[47].