ArcSoft(SH:688088)2021-10-28 16:00Financial Performance - Q3 2021 revenue was CNY 145,911,962.60, a decrease of 20.80% year-over-year [5]. - Net profit attributable to shareholders was CNY 36,536,679.58, down 60.02% compared to the same period last year [5]. - Basic and diluted earnings per share were both CNY 0.09, reflecting a decline of 60.87% from the previous year [7]. - Total operating revenue for the first three quarters of 2021 was CNY 446,553,450.50, a decrease of 10.7% compared to CNY 500,297,291.80 in the same period of 2020 [40]. - Net profit for the first three quarters of 2021 was CNY 120,574,036.91, down 42.5% from CNY 209,828,217.45 in the same period of 2020 [42]. - The total comprehensive income for the third quarter was CNY 115,249,847.02, down from CNY 203,265,761.09 in the same period of 2020 [45]. Research and Development - R&D expenses totaled CNY 69,314,967.58, an increase of 25.55% year-over-year, representing 47.50% of revenue [7]. - Research and development expenses rose significantly to CNY 202,835,637.97, an increase of 23.2% from CNY 164,549,825.76 in the previous year [40]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,865,993,222.67, a decrease of 4.70% from the end of the previous year [7]. - The company's current assets totaled CNY 2,450,921,257.95, down from CNY 2,821,176,682.88 in the previous year, indicating a decline of approximately 13.1% [31]. - Total liabilities reached CNY 337,146,777.52, compared to CNY 312,438,047.44 in the previous year, marking an increase of about 7.9% [36]. - The company's equity attributable to shareholders was CNY 2,527,954,278.83, down from CNY 2,694,956,073.63, indicating a decrease of approximately 6.2% [36]. - The total assets, calculated as the sum of total liabilities and total equity, were 3,007,394,121.07, a slight decrease from 3,034,721,642.13 [55]. Cash Flow - Cash flow from operating activities for the year-to-date was CNY 123,977,440.99, an increase of 4.06% [5]. - Cash inflow from operating activities totaled CNY 538,478,232.59, an increase from CNY 506,607,510.93 in the same period of 2020 [46]. - The net cash flow from operating activities was $123,977,440.99, an increase from $119,145,812.43 in the previous period, reflecting a growth of approximately 3.2% [48]. - Cash outflow from financing activities was $329,850,514.99, compared to $43,416,792.13 in the previous period, showing a significant increase in cash outflows [48]. Market and Business Impact - The company experienced a significant decline in revenue from its smartphone vision solutions and intelligent driving businesses due to market fluctuations and chip shortages [14]. - The global smartphone shipment volume decreased by 6% in Q3 2021 due to the impact of the pandemic and chip shortages [23]. - The company has increased investment in technology and talent for smart driving, with new projects involving multiple automakers including Great Wall and SAIC [23]. Shareholder Information - The company has a total of 15,392 common shareholders at the end of the reporting period [15]. - The largest shareholder, Hongrun Capital Management Co., Ltd., holds 118,698,800 shares, accounting for 29.24% of the total shares [15]. Legal Matters - The company is currently involved in a lawsuit related to its subsidiary, ArcSoft Inc., which is in the pre-trial motion stage [27]. - The company is involved in a legal dispute with Spreadtrum Communications (Shanghai) Co., Ltd. regarding a software copyright licensing contract, which is currently under court review [28]. Other Financial Metrics - Non-recurring gains and losses for the reporting period amounted to CNY 11,306,869.77 [11]. - The company reported investment income of CNY 38,694,894.31, up from CNY 23,476,141.96 year-over-year [40]. - Other income decreased to CNY 19,308,754.47 from CNY 24,668,424.81 in the previous year [40]. - The company experienced a net loss from fair value changes of CNY -3,794,878.27, compared to a gain of CNY 9,019,099.90 in the previous year [40].