Appo(SH:688007)2022-10-28 16:00Financial Performance - The company's revenue for Q3 2022 was CNY 606.48 million, representing a year-over-year increase of 9.09%[4] - The net profit attributable to shareholders for Q3 2022 was CNY 45.39 million, a decrease of 24.27% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 32.17 million, down 21.71% year-over-year[4] - Total revenue for the first three quarters of 2022 reached ¥1,875,806,319.07, an increase of 12.93% compared to ¥1,660,621,770.06 in the same period of 2021[32] - The net profit for Q3 2022 was CNY 36,118,652.04, a significant decrease of 84% compared to CNY 225,520,259.47 in Q3 2021[33] - The total profit for Q3 2022 was CNY 58,536,323.61, down 78% from CNY 270,807,710.98 in the same period last year[33] - The company's operating profit for Q3 2022 was CNY 60,073,154.60, a decline of 76% from CNY 249,122,040.28 in Q3 2021[33] - The comprehensive income total for Q3 2022 was CNY 55,944,364.40, compared to CNY 220,858,762.03 in Q3 2021, reflecting a decrease of 75%[35] - Basic earnings per share for Q3 2022 were CNY 0.20, down from CNY 0.47 in Q3 2021[35] Research and Development - R&D investment totaled CNY 59.29 million in Q3 2022, accounting for 9.78% of revenue, a decrease of 1.14 percentage points from the previous year[4] - Research and development expenses increased to ¥174,246,551.26 in the first three quarters of 2022, compared to ¥155,853,227.70 in 2021, reflecting a growth of 11.76%[32] Cash Flow and Liquidity - The company achieved a net cash flow from operating activities of CNY 11.22 million year-to-date, showing improvement compared to the previous year[10] - Cash flow from operating activities for the first nine months of 2022 was CNY 11,219,837.41, a recovery from a negative cash flow of CNY -20,916,883.81 in the same period last year[38] - Cash and cash equivalents as of September 30, 2022, were ¥1,320,582,344.29, up 37.88% from ¥957,729,831.15 at the end of 2021[27] - Cash and cash equivalents at the end of Q3 2022 totaled CNY 1,222,424,423.57, an increase from CNY 638,095,379.48 at the end of Q3 2021[39] - The company reported cash inflow from investment activities of CNY 1,598,044,340.83 in the first nine months of 2022, up from CNY 1,268,930,082.29 in the same period last year[38] - The net cash flow from financing activities in Q3 2022 was CNY 137,793,952.44, compared to CNY 247,027,673.06 in Q3 2021, indicating a decrease[39] Assets and Liabilities - The total assets at the end of Q3 2022 were CNY 4.19 billion, an increase of 2.18% from the end of the previous year[6] - Cash and cash equivalents as of September 30, 2022, were ¥1,320,582,344.29, up 37.88% from ¥957,729,831.15 at the end of 2021[27] - Inventory increased to ¥841,315,691.78 as of September 30, 2022, compared to ¥769,621,133.00 at the end of 2021, representing a growth of 9.31%[27] - Total liabilities decreased slightly to ¥1,458,733,046.50 as of September 30, 2022, from ¥1,473,994,276.52 at the end of 2021[30] - The company's equity attributable to shareholders increased to ¥2,593,553,081.32 as of September 30, 2022, compared to ¥2,438,064,581.44 at the end of 2021, reflecting a growth of 6.36%[30] - Short-term borrowings rose significantly to ¥123,042,777.78 as of September 30, 2022, compared to only ¥5,570,878.11 at the end of 2021[29] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,608[18] - The largest shareholder, Shenzhen Guangfeng Holdings Co., Ltd., held 79,762,679 shares, accounting for 17.51% of total shares[20] - The second-largest shareholder, Shenzhen Yuanshi Laser Industry Investment Consulting Partnership, held 24,139,500 shares, representing 5.30%[20] Legal Matters - The company is involved in several legal matters, including a civil ruling allowing the withdrawal of a lawsuit against Delta Electronics[23] - The company has filed invalidation requests against patents held by Delta Electronics, with cases currently under review by the National Intellectual Property Administration[24] - The company’s subsidiary received an arbitration ruling requiring a payment of RMB 215,900 related to a sales contract dispute[23] Business Strategy and Market Performance - The household core component business saw revenue growth of over 140% year-over-year in the first three quarters of 2022, with over 90% growth in Q3 alone[12] - The C-end self-owned brand business accounted for over 50% of the total revenue of the subsidiary Fengmi Technology, with over 70% in Q3[13] - The overseas ODM and brand sales in the professional display market grew nearly 160% year-over-year in the first three quarters of 2022[14] - The company plans to leverage upcoming shopping festivals to boost performance in the household core component business[12] - Sales expenses increased by RMB 24.0783 million, a year-on-year growth of 43.09%, primarily due to increased marketing investments in the C-end market[16] - Management expenses included share-based payment costs of nearly RMB 26 million, up over 8% year-on-year, aimed at incentivizing key personnel for future growth[16] - The company is focusing on expanding its self-owned brand business and enhancing market investments[16]