IECHO(SH:688092)2022-10-30 16:00Financial Summary and Highlights Core Financial Indicators The company reported RMB 82.15 million in Q3 2022 operating revenue, a 3.76% decrease, while net profit attributable to shareholders increased by 4.82% to RMB 20.87 million, alongside a 23.35% rise in R&D investment Key Financial Metrics (Q3 2022 and YTD) | Indicator | 2022 Q3 | YoY Change (%) | 2022 YTD | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 82,154,814.38 | -3.76 | 212,408,048.46 | -6.15 | | Net Profit Attributable to Shareholders (RMB) | 20,867,142.81 | 4.82 | 41,220,677.37 | -4.53 | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (RMB) | 19,590,816.93 | 1.12 | 36,200,882.16 | -11.86 | | Basic Earnings Per Share (RMB/share) | 0.35 | 2.94 | 0.70 | -12.50 | | Total R&D Investment (RMB) | 6,654,884.13 | 10.19 | 24,001,466.93 | 23.35 | | R&D Investment as % of Revenue (%) | 8.10 | Increased by 1.03 percentage points | 11.30 | Increased by 2.70 percentage points | 56 Key Financial Position Metrics | Indicator | September 30, 2022 (RMB) | Change from Year-End (%) | | :--- | :--- | :--- | | Total Assets (RMB) | 639,205,123.82 | 2.02 | | Owner's Equity Attributable to Shareholders (RMB) | 527,858,578.97 | 1.25 | 6 Analysis of Non-Recurring Gains and Losses Non-recurring gains and losses totaled RMB 5.02 million from year-to-date, primarily from government grants and entrusted investment income, contributing to net profit Non-Recurring Gains and Losses (YTD) | Item (YTD) | Amount (RMB) | | :--- | :--- | | Government Grants Included in Current Profit/Loss | 3,682,018.23 | | Gains/Losses from Entrusted Investments or Asset Management | 2,054,900.99 | | Fair Value Change Gains/Losses and Investment Income | 172,334.13 | | Less: Income Tax Impact | 885,846.21 | | Total | 5,019,795.21 | 8910 Changes and Reasons for Key Financial Indicators Operating revenue decline was attributed to reduced sales from external factors, with management noting performance improvement and increased R&D investment for technological leadership - Operating revenue decreased primarily due to reduced sales impacted by the COVID-19 pandemic and the Russia-Ukraine war, but the company states that operating performance has improved, with the decline in revenue and profit narrowing compared to the half-year period10 - R&D investment increased by 23.35% year-over-year from the beginning of the year to the end of the reporting period, mainly because the company increased R&D investment in areas such as laser cutting and new energy to maintain technological leadership10 - Net cash flow from operating activities turned positive, primarily because cash paid for goods in the prior year's corresponding period was significantly higher due to strategic inventory stocking10 Shareholder Structure Analysis Major Shareholders and Shareholding Status As of the reporting period, the company had 3,537 common shareholders, with a concentrated equity structure where the top four shareholders held over 54%, and the actual controller and key shareholders have a concerted action relationship - As of the end of the reporting period, the company had 3,537 common shareholders12 Top Five Shareholders | Shareholder Name | Shareholding Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | | Hangzhou Aike Computer Technology Co., Ltd. | 37.28 | Domestic Non-State-Owned Legal Person | | Fang Yunke | 7.99 | Domestic Natural Person | | Hangzhou Ruibu Investment Management Partnership (Limited Partnership) | 5.33 | Other | | Hangzhou Ruisong Investment Management Partnership (Limited Partnership) | 4.32 | Other | | Suzhou Qilin Equity Investment Center (Limited Partnership) | 3.73 | Other | 13 - The company's controlling shareholder is Hangzhou Aike Computer Technology Co., Ltd., and the actual controller Fang Xiaowei and shareholder Fang Yunke are father and son; Fang Yunke is also the executive partner of Hangzhou Ruibu and Hangzhou Ruisong, indicating an associated relationship or concerted action14 Financial Statement Highlights Balance Sheet Analysis As of September 30, 2022, total assets increased by 2.02% to RMB 639 million, with inventory growth and new short-term borrowings, while owner's equity slightly increased, indicating a stable financial structure Consolidated Balance Sheet Summary | Balance Sheet Item | September 30, 2022 (RMB) | December 31, 2021 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 639,205,123.82 | 626,565,890.74 | +2.02% | | Cash and Cash Equivalents | 223,015,649.52 | 214,490,470.47 | +4.0% | | Inventories | 117,778,363.78 | 101,435,578.78 | +16.1% | | Total Liabilities | 111,346,544.85 | 105,239,389.19 | +5.8% | | Short-Term Borrowings | 20,000,000.00 | 0.00 | New | | Accounts Payable | 32,485,609.16 | 44,425,944.41 | -26.9% | | Owner's Equity | 527,858,578.97 | 521,326,501.55 | +1.25% | 161718 Income Statement Analysis In the first three quarters of 2022, operating revenue decreased by 6.15% to RMB 212 million, while selling and R&D expenses increased, resulting in a 4.53% decline in net profit attributable to the parent company Consolidated Income Statement Summary | Income Statement Item | 2022 YTD (RMB) | 2021 YTD (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 212,408,048.46 | 226,322,093.82 | -6.15 | | Operating Costs | 121,663,482.87 | 125,032,808.99 | -2.70 | | Selling Expenses | 32,006,814.49 | 28,987,054.64 | 10.42 | | Administrative Expenses | 9,217,976.66 | 7,776,510.09 | 18.54 | | R&D Expenses | 24,001,466.93 | 19,458,229.59 | 23.35 | | Operating Profit | 42,927,659.26 | 49,030,344.44 | -12.45 | | Net Profit | 41,220,677.37 | 43,178,611.26 | -4.53 | 202122 Cash Flow Statement Analysis Net cash flow from operating activities significantly improved to RMB 6.54 million in the first three quarters of 2022, with net investing cash inflow and net financing cash outflow, increasing period-end cash and cash equivalents to RMB 223 million Consolidated Cash Flow Statement Summary | Cash Flow Statement Item | 2022 YTD (RMB) | 2021 YTD (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 6,544,807.84 | -5,932,161.26 | | Net Cash Flow from Investing Activities | 11,685,414.66 | -137,462,958.85 | | Net Cash Flow from Financing Activities | -18,181,929.71 | 220,926,100.08 | | Net Increase in Cash and Cash Equivalents | 8,525,179.05 | 76,740,269.45 | 25 Other Important Matters Other Reminders The report indicates no other significant operating information requiring special investor attention during the reporting period - The company has no other important operating information in this reporting period that requires special attention from investors15