Report Cover and Important Notice This section presents Kunshan Huguang Auto Electric Co., Ltd.'s Q3 2023 report, with the Board, Supervisory Board, and senior management guaranteeing its accuracy and unaudited status Important Content Notice This report is Kunshan Huguang Auto Electric Co., Ltd.'s Q3 2023 report, with the Board, Supervisory Board, and senior management guaranteeing its truthfulness, accuracy, and completeness, and stating that the financial statements are unaudited - Kunshan Huguang Auto Electric Co., Ltd. released its 2023 third-quarter report1 - The company's Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness2 - The third-quarter financial statements are unaudited2 Major Financial Data This section details the company's key accounting data, financial indicators, non-recurring gains and losses, and explanations for significant financial changes during the reporting period Key Accounting Data and Financial Indicators In the first three quarters of 2023, operating revenue slightly grew, but net profit attributable to shareholders, non-recurring net profit, basic EPS, and weighted average ROE significantly declined, while total assets and shareholders' equity also changed Key Financial Indicators for the First Three Quarters of 2023 | Item | Current Period (Q3) (yuan) | Year-on-Year Change (%) | Year-to-Date (YTD) (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 954,799,769.40 | 1.02 | 2,367,014,703.76 | 1.71 | | Net Profit Attributable to Listed Company Shareholders | 18,306,435.15 | -6.38 | -22,713,908.85 | -235.64 | | Net Profit Attributable to Listed Company Shareholders Excluding Non-Recurring Gains and Losses | 14,448,879.79 | -21.32 | -32,114,533.45 | -386.98 | | Net Cash Flow from Operating Activities | Not Applicable | Not Applicable | 84,241,915.84 | Not Applicable | | Basic Earnings Per Share (yuan/share) | 0.04 | -20 | -0.05 | -225.00 | | Diluted Earnings Per Share (yuan/share) | 0.04 | -20 | -0.05 | -225.00 | | Weighted Average Return on Net Assets (%) | 1.26 | Decreased by 0.80 percentage points | -1.54 | Decreased by 3.23 percentage points | Balance Sheet Indicators as of September 30, 2023 | Item | End of Current Period (2023.9.30) (yuan) | End of Prior Year (2022.12.31) (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,878,770,382.42 | 4,484,859,067.95 | 8.78 | | Owners' Equity Attributable to Listed Company Shareholders | 1,464,936,602.15 | 1,485,900,771.09 | -1.41 | Non-Recurring Gains and Losses Items and Amounts During the reporting period, total non-recurring gains and losses amounted to 3.86 million yuan, with a cumulative 9.40 million yuan year-to-date, primarily from non-current asset disposal, tax refunds, and other non-operating items Non-Recurring Gains and Losses Items and Amounts | Item | Amount for Current Period (yuan) | Amount from Year-Beginning to End of Reporting Period (yuan) | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 1,487,562.77 | 1,216,360.51 | | Tax Refunds or Reductions Due to Over-Approval, Lack of Formal Approval Documents, or Incidental Events | 3,668,002.22 | 9,713,099.93 | | Other Non-Operating Income and Expenses Apart from the Above | -295,276.73 | 541,843.03 | | Income Tax Impact | -1,002,732.90 | -2,070,623.05 | | Total | 3,857,555.36 | 9,400,680.42 | Changes and Reasons for Major Accounting Data and Financial Indicators Net profit attributable to shareholders and non-recurring net profit significantly declined due to lower-than-expected customer orders, reduced labor efficiency, increased unit costs, and higher period expenses, while net cash flow from operating activities turned positive due to strengthened sales collection management - Net profit attributable to listed company shareholders decreased by 235.64% year-on-year from the beginning of the year to the end of the reporting period, and net profit excluding non-recurring gains and losses decreased by 386.98% year-on-year7 - The primary reasons for the decline in net profit were lower-than-expected and volatile customer orders, reduced labor efficiency, and increased unit costs in the first half of 2023, along with a faster year-on-year increase in period expenses due to increased talent reserves in the second half of 20227 - Net cash flow from operating activities from the beginning of the year to the end of the reporting period was 84,241,915.84 yuan, primarily due to the company strengthening sales collection management and improving collection quality27 Shareholder Information This section presents the total number of common shareholders and the detailed holdings of the top ten shareholders, including their family relationships Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings As of the end of the reporting period, the company had 18,394 common shareholders, with Cheng Sanrong and Jin Chengcheng holding 59.98% and 15.00% respectively among the top ten, indicating major shareholders with related party relationships - The total number of common shareholders at the end of the reporting period was 18,39410 Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Number of Shares Held (shares) | Shareholding Ratio (%) | Share Status | Pledged, Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cheng Sanrong | Domestic Natural Person | 262,000,000 | 59.98 | None | 0 | | Jin Chengcheng | Domestic Natural Person | 65,500,000 | 15.00 | None | 0 | | Bank of China Co., Ltd. - E Fund Supply-Side Reform Flexible Allocation Mixed Securities Investment Fund | Other | 10,011,227 | 2.29 | None | 0 | | Kunshan Detai Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3,925,700 | 0.90 | None | 0 | | Kunshan Detian Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3,780,882 | 0.87 | None | 0 | | Kunshan Yuanhai Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3,620,500 | 0.83 | None | 0 | | Cheng Feng | Domestic Natural Person | 3,500,000 | 0.80 | None | 0 | | Cheng Guohua | Domestic Natural Person | 3,100,000 | 0.71 | None | 0 | | Cheng Lei | Domestic Natural Person | 2,630,000 | 0.60 | None | 0 | | China Construction Bank Co., Ltd. - E Fund New Silk Road Flexible Allocation Mixed Securities Investment Fund | Other | 2,370,928 | 0.54 | None | 0 | - Jin Chengcheng is Cheng Sanrong's son, Cheng Feng is Cheng Sanrong's elder brother, Cheng Guohua is Cheng Sanrong's elder brother's son, and Cheng Lei is Cheng Feng's son, indicating family relationships among major shareholders11 Other Reminders This section addresses any other important operational information during the reporting period that investors should be aware of Other Important Information Regarding the Company's Operating Performance During the Reporting Period Requiring Investor Attention During the reporting period, the company had no other important operating information requiring special attention from investors - The company states there is no other important operating information during the reporting period that requires investor attention12 Quarterly Financial Statements This section includes the unaudited consolidated balance sheet, income statement, and cash flow statement, reflecting the company's financial position, operating results, and cash flows for the first three quarters of 2023 Type of Audit Opinion These quarterly financial statements are unaudited - These quarterly financial statements are unaudited13 Financial Statements This section presents the company's unaudited consolidated balance sheet, consolidated income statement, and consolidated cash flow statement, reflecting its financial position, operating results, and cash flows for the first three quarters of 2023 Consolidated Balance Sheet As of September 30, 2023, total assets increased by 8.78% from the previous year-end, with both current and non-current assets rising, and total liabilities significantly grew, particularly short-term and long-term borrowings Major Balance Sheet Item Changes (September 30, 2023 vs December 31, 2022) | Item | September 30, 2023 (yuan) | December 31, 2022 (yuan) | Change Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 379,928,795.29 | 272,896,205.79 | 107,032,589.50 | 39.22 | | Notes Receivable | 184,222,300.59 | 37,381,054.53 | 146,841,246.06 | 392.81 | | Inventories | 613,240,122.98 | 749,319,760.42 | -136,079,637.44 | -18.16 | | Fixed Assets | 1,440,785,789.04 | 1,238,532,573.37 | 202,253,215.67 | 16.33 | | Construction in Progress | 251,480,426.76 | 189,871,362.06 | 61,609,064.70 | 32.45 | | Short-Term Borrowings | 851,574,213.89 | 680,632,513.89 | 170,941,700.00 | 25.11 | | Long-Term Borrowings | 727,700,000.00 | 483,000,000.00 | 244,700,000.00 | 50.66 | | Total Liabilities | 3,413,833,780.27 | 2,998,958,296.86 | 414,875,483.41 | 13.83 | | Total Owners' Equity Attributable to Parent Company | 1,464,936,602.15 | 1,485,900,771.09 | -20,964,168.94 | -1.41 | | Total Assets | 4,878,770,382.42 | 4,484,859,067.95 | 393,911,314.47 | 8.78 | Consolidated Income Statement In the first three quarters of 2023, total operating revenue grew by 1.71% year-on-year, but total operating costs increased more rapidly, leading to a shift from operating profit to loss, with both net profit and net profit attributable to parent company shareholders showing losses, and R&D and financial expenses significantly increasing Major Income Statement Item Changes (First Three Quarters of 2023 vs First Three Quarters of 2022) | Item | First Three Quarters of 2023 (yuan) | First Three Quarters of 2022 (yuan) | Change Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,367,014,703.76 | 2,327,295,657.20 | 39,719,046.56 | 1.71 | | Total Operating Costs | 2,412,550,922.21 | 2,324,882,197.15 | 87,668,725.06 | 3.77 | | Selling Expenses | 12,234,342.11 | 8,687,290.07 | 3,547,052.04 | 40.83 | | Administrative Expenses | 106,769,977.09 | 84,377,107.55 | 22,392,869.54 | 26.54 | | Research and Development Expenses | 151,425,014.41 | 113,268,077.44 | 38,156,936.97 | 33.69 | | Financial Expenses | 40,920,267.95 | 34,832,926.52 | 6,087,341.43 | 17.48 | | Operating Profit | -27,854,615.82 | 18,788,970.00 | -46,643,585.82 | -248.26 | | Net Profit | -22,713,908.85 | 16,746,092.71 | -39,460,001.56 | -235.64 | | Net Profit Attributable to Parent Company Shareholders | -22,713,908.85 | 16,746,092.71 | -39,460,001.56 | -235.64 | | Basic Earnings Per Share (yuan/share) | -0.05 | 0.04 | -0.09 | -225.00 | Consolidated Cash Flow Statement In the first three quarters of 2023, net cash flow from operating activities turned positive due to increased sales collections, while net cash outflow from investing activities decreased, and net cash inflow from financing activities significantly declined, mainly impacted by reduced capital contributions Major Cash Flow Statement Item Changes (First Three Quarters of 2023 vs First Three Quarters of 2022) | Item | First Three Quarters of 2023 (yuan) | First Three Quarters of 2022 (yuan) | Change Amount (yuan) | | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Provision of Services | 2,490,255,887.01 | 2,072,448,758.20 | 417,807,128.81 | | Net Cash Flow from Operating Activities | 84,241,915.84 | -221,886,453.72 | 306,128,369.56 | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 364,351,396.70 | (Not Listed) | (Cannot Calculate) | | Net Cash Flow from Investing Activities | -353,677,416.36 | -553,795,945.23 | 200,118,528.87 | | Cash Received from Capital Contributions | 0 | 693,051,878.56 | -693,051,878.56 | | Cash Received from Borrowings | 1,027,000,000.00 | 784,000,000.00 | 243,000,000.00 | | Net Cash Flow from Financing Activities | 324,196,203.58 | 938,948,651.71 | -614,752,448.13 | | Net Increase in Cash and Cash Equivalents | 54,754,847.28 | 163,198,649.44 | -108,443,802.16 | Adjustments for First-Time Adoption of New Accounting Standards This section explains the adjustments made to the financial statements at the beginning of the year due to the first-time adoption of new accounting standards Explanation of Reasons for Adjusting Financial Statements at the Beginning of the Year The company adopted the provisions of Interpretation No. 16 of Accounting Standards for Business Enterprises issued by the Ministry of Finance starting from January 1, 2023 - The company adopted Interpretation No. 16 of Accounting Standards for Business Enterprises issued by the Ministry of Finance starting from January 1, 202322 Consolidated Balance Sheet (Adjusted) The first-time adoption of new accounting standards resulted in an increase of 287,410.40 yuan in deferred income tax assets, 110,718.67 yuan in deferred income tax liabilities, and 176,691.73 yuan in retained earnings on the consolidated balance sheet as of January 1, 2023, with total assets and total liabilities and owners' equity increasing by 287,410.40 yuan accordingly Impact of First-Time Adoption of New Accounting Standards on Consolidated Balance Sheet (January 1, 2023) | Item | December 31, 2022 (yuan) | January 1, 2023 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | Deferred Income Tax Assets | 44,263,933.08 | 44,551,343.48 | 287,410.40 | | Deferred Income Tax Liabilities | 0 | 110,718.67 | 110,718.67 | | Retained Earnings | 223,551,015.17 | 223,727,706.90 | 176,691.73 | | Total Owners' Equity Attributable to Parent Company | 1,485,900,771.09 | 1,486,077,462.82 | 176,691.73 | | Total Assets | 4,484,859,067.95 | 4,485,146,478.35 | 287,410.40 | | Total Liabilities and Owners' Equity | 4,484,859,067.95 | 4,485,146,478.35 | 287,410.40 | Special Announcement This section formally announces the release of the report by the company's Board of Directors Announcement Release This report was released by the Board of Directors of Kunshan Huguang Auto Electric Co., Ltd. on October 26, 2023 - The Board of Directors of Kunshan Huguang Auto Electric Co., Ltd. released this report on October 26, 202326
沪光股份(605333) - 2023 Q3 - 季度财报