PIESAT(SH:688066)2023-10-27 16:00Major Financial Data Major Accounting Data and Financial Indicators The company's Q3 2023 saw revenue decline and net loss, while year-to-date revenue grew 13.93% but net profit turned negative, with R&D investment increasing 40.05% Key Income Statement Indicators for Q3 and YTD 2023 | Item | Current Period (Q3) (Yuan) | YoY Change (%) | Year-to-Date (YTD) (Yuan) | YTD YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 562,736,323.20 | -7.93 | 1,586,468,955.23 | 13.93 | | Net Profit Attributable to Shareholders | -51,369,359.26 | -168.92 | -40,496,458.42 | -148.75 | | Net Profit Attributable to Shareholders (Excl. Non-recurring) | -74,342,909.24 | -203.46 | -103,341,863.21 | -229.64 | | Basic EPS (Yuan/share) | -0.20 | -168.97 | -0.16 | -150.00 | Assets and R&D Investment | Item | End of Current Period (Yuan) | End of Prior Year (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 6,314,635,725.94 | 5,968,600,071.25 | 5.80 | | Shareholders' Equity Attributable to Shareholders | 2,685,051,633.33 | 2,695,699,896.56 | -0.40 | | Item | Year-to-Date (YTD) (Yuan) | YoY Change (%) | Notes | | Total R&D Investment | 274,564,541.77 | 40.05 | - | | R&D Investment as % of Operating Revenue (%) | 17.31% | Increased by 3.23 percentage points | - | Non-recurring Gains and Losses and Amounts Year-to-date non-recurring gains and losses totaled 62.85 million Yuan, primarily from government grants, significantly impacting profit and widening the net loss after exclusion Major Non-recurring Gains and Losses for Q1-Q3 2023 | Item | Amount Year-to-Date (Yuan) | | :--- | :--- | | Government Grants Recognized in Current Period P&L | 75,286,750.74 | | Other Non-operating Income and Expenses | -8,447,170.99 | | Less: Income Tax Impact | 8,780,371.51 | | Total | 62,845,404.79 | Analysis of Major Financial Indicator Changes Significant declines in net profit and EPS are attributed to slower revenue growth and increased expenses, while a 40.05% year-to-date increase in R&D investment reflects enhanced innovation - Net profit attributable to shareholders (current period and YTD) significantly decreased, primarily due to the sustained macro environment impact, slower operating revenue growth, and increased expenses10 - Total R&D investment (current period and YTD) increased by 46.21% and 40.05% respectively, primarily due to strengthening innovation capabilities and continuous R&D investment in core products1011 Shareholder Information Shareholder Equity Holdings As of the reporting period end, the company had 9,423 common shareholders, with Zhang Yan as the largest at 18.63%, and key individuals/entities identified as parties acting in concert - As of the reporting period end, the company had 9,423 common shareholders13 Top Five Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Zhang Yan | 48,649,024 | 18.63 | | Beijing Hangxing Yingchuang Technology Center (Limited Partnership) | 19,437,706 | 7.44 | | Schroders Investment Management (Hong Kong) Limited | 9,568,474 | 3.66 | | Wang Yuxiang | 7,552,881 | 2.89 | | Sanya Qifu Venture Capital Fund Partnership | 7,099,387 | 2.72 | - Mr. Wang Yuxiang, Ms. Zhang Yan, and Beijing Hangxing Yingchuang Technology Center (Limited Partnership) are identified as parties acting in concert14 Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2023, total assets grew 5.80% to 6.315 billion Yuan, total liabilities reached 3.610 billion Yuan, with significant increases in accounts receivable and inventories, and a 65.1% decrease in cash Major Consolidated Balance Sheet Item Changes | Item | September 30, 2023 (Yuan) | December 31, 2022 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 599,177,856.66 | 1,718,570,605.31 | -65.1 | | Accounts Receivable | 2,525,332,529.57 | 2,038,668,996.67 | 23.9 | | Inventories | 1,509,613,177.02 | 839,341,883.93 | 79.9 | | Total Assets | 6,314,635,725.94 | 5,968,600,071.25 | 5.8 | | Short-term Borrowings | 1,174,096,767.00 | 869,053,261.09 | 35.1 | | Total Liabilities | 3,610,474,645.55 | 3,259,231,365.70 | 10.8 | | Total Equity Attributable to Parent Company | 2,685,051,633.33 | 2,695,699,896.56 | -0.4 | | Total Shareholders' Equity | 2,704,161,080.39 | 2,709,368,705.55 | -0.2 | Consolidated Income Statement In Q1-Q3 2023, operating revenue grew 13.93% to 1.586 billion Yuan, but total operating costs increased 30.87% to 1.665 billion Yuan, leading to a net loss of 40.50 million Yuan Major Consolidated Income Statement Items (Q1-Q3 2023 vs Q1-Q3 2022) | Item | Q1-Q3 2023 (Yuan) | Q1-Q3 2022 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,586,468,955.23 | 1,392,482,363.80 | 13.93 | | Total Operating Costs | 1,665,214,433.21 | 1,272,493,732.07 | 30.87 | | Including: R&D Expenses | 274,564,541.77 | 196,042,221.97 | 40.05 | | Financial Expenses | 69,737,567.94 | 24,316,288.94 | 186.8 | | Operating Profit | -35,766,074.25 | 90,920,807.12 | -139.3 | | Total Profit | -44,213,245.24 | 87,543,999.63 | -150.5 | | Net Profit Attributable to Parent Company Shareholders | -40,496,458.42 | 83,068,845.22 | -148.7 | | Basic EPS (Yuan/share) | -0.16 | 0.32 | -150.0 | Consolidated Cash Flow Statement In Q1-Q3 2023, net cash outflow from operating activities increased 49.5% to 1.146 billion Yuan, with investing and financing activities showing net outflows and inflows respectively, leading to a significant decrease in period-end cash Major Consolidated Cash Flow Statement Items (Q1-Q3 2023 vs Q1-Q3 2022) | Item | Q1-Q3 2023 (Yuan) | Q1-Q3 2022 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,146,433,606.13 | -760,169,482.85 | -50.8 | | Net Cash Flow from Investing Activities | -196,814,131.08 | -196,566,081.33 | -0.1 | | Net Cash Flow from Financing Activities | 194,639,154.05 | 316,493,801.31 | -38.5 | | Net Increase in Cash and Cash Equivalents | -1,148,558,498.34 | -639,899,419.38 | -79.5 | | Cash and Cash Equivalents at Period End | 546,958,840.34 | 355,218,802.40 | 54.0 | Accounting Standard Changes and Impact From 2023, the company adopted "Interpretation No. 16" for deferred tax treatment, retrospectively adjusting opening financial statements, increasing deferred tax assets by 21.93 million Yuan and liabilities by 21.42 million Yuan - The company adopted "Interpretation No. 16 of Accounting Standards for Business Enterprises" from 2023, concerning deferred income tax treatment for single transactions, and adjusted applicable transactions from the earliest presented period's beginning to the initial adoption date25 Impact of Accounting Standard Change on Consolidated Balance Sheet as of January 1, 2023 | Item | Before Adjustment (Yuan) | After Adjustment (Yuan) | Adjustment Amount (Yuan) | | :--- | :--- | :--- | :--- | | Deferred Tax Assets | 43,254,082.10 | 65,186,317.76 | 21,932,235.66 | | Deferred Tax Liabilities | 8,910,801.62 | 30,327,696.11 | 21,416,894.49 | | Surplus Reserve | 84,901,085.86 | 84,912,332.07 | 11,246.21 | | Retained Earnings | 693,038,826.72 | 693,542,921.68 | 504,094.96 |