Wuhan Lin(SH:688667)2022-10-27 16:00Key Financial Data Key Accounting Data and Financial Indicators The company experienced a YoY decline in operating revenue and net profit attributable to shareholders in Q3 2022 and YTD, with Q3 net profit turning to a loss of RMB 4.91 million, despite R&D investment increasing over 100% Key Financial Indicators for Q3 2022 and Year-to-Date | Indicator | Current Period (Q3) (RMB million) | YoY Change (Q3) | Year-to-Date (YTD) (RMB million) | YoY Change (YTD) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 170.00 | -2.41% | 530.00 | -11.36% | | Net Profit Attributable to Shareholders | -4.91 | -113.43% | 53.61 | -53.63% | | Net Profit Attributable to Shareholders Excluding Non-recurring Items | -9.17 | -132.73% | 33.58 | -65.63% | | Basic Earnings Per Share (RMB/share) | -0.10 | -114.08% | 1.04 | -57.45% | | Total R&D Investment | 52.72 | 118.99% | 138.00 | 137.16% | Key Balance Sheet Indicators at Period End | Indicator | End of Current Period (RMB billion) | Change from End of Previous Year | | :--- | :--- | :--- | | Total Assets | 1.87 | +5.56% | | Total Equity Attributable to Shareholders | 1.51 | +7.66% | Non-recurring Gains and Losses and Amounts In the first three quarters of 2022, the company's total non-recurring gains and losses amounted to RMB 20.03 million, significantly contributing to net profit, primarily from fair value changes and investment income (RMB 15.21 million) and government grants (RMB 8.55 million) Major Non-recurring Gains and Losses for the First Three Quarters of 2022 | Item | Year-to-Date Amount (RMB) | | :--- | :--- | | Government Grants | 8,553,060.84 | | Fair Value Changes and Investment Income from Financial Assets Held for Trading | 15,205,022.08 | | Other Non-operating Income and Expenses | -58,101.67 | | Income Tax Impact | -3,541,188.67 | | Total | 20,028,059.76 | Analysis of Changes in Key Financial Indicators and Their Causes Profitability indicators like net profit and EPS significantly declined YoY during the reporting period due to decreased revenue from a sluggish commercial vehicle market, substantial increases in R&D expenses for new energy and passenger vehicle transformation, and a sharp rise in share-based payment expenses from the 2021 equity incentive plan - Reasons for Decline in Net Profit Attributable to Shareholders: * Revenue Side: Company revenue decreased YoY due to the sluggish commercial vehicle market * Cost and Expense Side: R&D expenses significantly increased due to the introduction of high-end R&D talent and increased external testing costs for new energy and passenger vehicle transformation * Share-based Payments: Accrued share-based payment expenses (RMB 45.19 million) from the equity incentive plan were significantly higher than the same period last year (RMB 5.98 million)1112 - R&D investment surged by 137.16% YoY, primarily due to: * Increased employee compensation and benefits from the introduction of a large number of R&D personnel * Increased testing and R&D material costs due to new passenger vehicle and new energy development projects * Significant increase in R&D expenses due to accrued share-based payment expenses12 Shareholder Information Common Shareholder Holdings As of the end of the reporting period, the company had 4,325 common shareholders, with a relatively concentrated equity structure where the top two shareholders, Wang Heping and Gong Benhe, acting in concert, collectively held 49.63% of shares, and the top ten also included Dajia Life, Beijing Yuyuan Asset, and multiple Xingquan and Huaan funds - As of the end of the reporting period, the company had a total of 4,325 common shareholders14 - Shareholders Wang Heping and Gong Benhe are parties acting in concert, with a combined shareholding of 49.63% (25.86% + 23.77%), serving as the company's actual controllers1416 Top Ten Shareholder Holdings | Shareholder Name | Number of Shares Held (shares) | Shareholding Percentage (%) | | :--- | :--- | :--- | | Wang Heping | 13,397,369 | 25.86 | | Gong Benhe | 12,313,579 | 23.77 | | Ningbo Meishan Bonded Port Area Lingkong Investment Partnership (Limited Partnership) | 2,706,000 | 5.22 | | Wu Zhanghua | 2,703,474 | 5.22 | | Tan Chun | 2,579,984 | 4.98 | | Dajia Life Insurance Co., Ltd. - Universal Product | 1,354,440 | 2.61 | | Beijing Yuyuan Asset Management Co., Ltd. | 679,850 | 1.31 | | Yu Junfa | 526,789 | 1.02 | | China Merchants Bank - Xingquan Herun Mixed Securities Investment Fund | 513,477 | 0.99 | | Industrial and Commercial Bank of China - Huaan Ankang Flexible Allocation Mixed Fund | 351,236 | 0.68 | Other Reminders Other Reminders There is no other significant operating information requiring special attention from investors during the current reporting period - The company has no other significant operating information requiring special attention from investors during the current reporting period17 Quarterly Financial Statements Type of Audit Opinion The financial statements for this quarter are unaudited - The company's Q3 2022 financial statements are unaudited417 Financial Statements This section presents the company's consolidated balance sheet as of September 30, 2022, and the consolidated income statement and cash flow statement for January-September 2022 Consolidated Balance Sheet As of September 30, 2022, total assets reached RMB 1.87 billion (+5.56% YoY) and equity attributable to shareholders RMB 1.51 billion (+7.66% YoY), primarily driven by increased construction in progress and inventories, with liabilities remaining stable Key Items from Consolidated Balance Sheet (Unit: RMB) | Item | September 30, 2022 (RMB) | December 31, 2021 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,864,780,825.86 | 1,766,621,195.58 | +5.56% | | Inventories | 331,807,739.02 | 172,573,410.04 | +92.27% | | Construction in Progress | 153,761,150.43 | 25,640,944.73 | +499.67% | | Total Liabilities | 350,596,386.37 | 360,198,600.02 | -2.67% | | Total Equity Attributable to Shareholders | 1,514,184,439.49 | 1,406,422,595.56 | +7.66% | Consolidated Income Statement In the first three quarters of 2022, operating revenue was RMB 530 million (-11.36% YoY) and net profit attributable to shareholders was RMB 53.61 million (-53.63% YoY), primarily due to operating cost reduction (-21.06%) not offsetting revenue decline, coupled with significant increases in R&D (+137.16%), selling (+27.36%), and administrative expenses (+58.67%) Key Items from Consolidated Income Statement (Q1-Q3 2022 vs Q1-Q3 2021) | Item | Jan-Sep 2022 (RMB) | Jan-Sep 2021 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 530,276,188.94 | 598,224,346.21 | -11.36% | | Operating Cost | 329,841,040.79 | 417,863,481.86 | -21.06% | | R&D Expenses | 138,319,662.52 | 58,323,396.39 | +137.16% | | Operating Profit | 45,320,977.21 | 122,810,783.75 | -63.09% | | Net Profit Attributable to Shareholders | 53,609,545.27 | 115,613,292.39 | -53.63% | Consolidated Cash Flow Statement In the first three quarters of 2022, net cash flow from operating activities was RMB -4.54 million, remaining weak; net cash flow from investing activities significantly turned positive to RMB 99 million, mainly from increased cash received from investment disposals; and net cash flow from financing activities was RMB -24.95 million due to reduced debt repayment and capital contributions Key Items from Consolidated Cash Flow Statement (Q1-Q3 2022 vs Q1-Q3 2021) | Item | Jan-Sep 2022 (RMB) | Jan-Sep 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4,541,182.97 | -5,206,207.37 | | Net Cash Flow from Investing Activities | 99,078,171.11 | -784,906,001.82 | | Net Cash Flow from Financing Activities | -24,950,500.34 | 842,571,585.35 | | Net Increase in Cash and Cash Equivalents | 69,586,487.80 | 52,459,359.23 | - Cash inflow from investing activities primarily stemmed from RMB 2.418 billion received from investment disposals, while RMB 2.176 billion was paid for investments27