RED SUN(SZ:000525)2020-10-29 16:00Financial Performance - Operating revenue for the current period was CNY 969,027,045.67, a decrease of 36.96% year-on-year[8]. - Net profit attributable to shareholders was CNY 29,158,872.07, down 28.80% compared to the same period last year[8]. - Basic earnings per share were CNY 0.0502, a decline of 28.79% year-on-year[8]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of CNY 26,861,103.16, down 24.19% year-on-year[8]. - Operating profit fell by 64.67% to ¥122,756,294.46 from ¥347,481,729.75, reflecting a decline in sales[16]. - The net profit attributable to the parent company dropped by 67.10% to ¥95,814,159.58 from ¥291,236,838.06, largely impacted by reduced sales revenue and gross profit due to the pandemic[16]. - Net profit for the third quarter was CNY 28,414,824.68, a decline of 28.1% from CNY 39,540,079.75 in the previous year[50]. - The total profit for Q3 2020 was CNY 118,208,322.25, compared to CNY 346,543,124.28 in Q3 2019, marking a decline of 65.9%[58]. Cash Flow - Net cash flow from operating activities decreased by 63.17% to CNY 35,886,191.33[8]. - The net cash flow from operating activities decreased by 40.16% to ¥121,955,423.39 from ¥203,785,720.55, attributed to lower sales revenue[16]. - The cash flow from operating activities was CNY 3,177,698,881.77, down from CNY 4,441,110,291.14 in the previous year, indicating a decline of 28.5%[64]. - The net cash flow from investment activities was 1,765,305,926.20 CNY, a significant increase compared to -238,061,030.05 CNY in the previous period[66]. - The net cash flow from financing activities was -1,886,165,394.70 CNY, worsening from -160,798,850.86 CNY in the previous period[66]. Assets and Liabilities - Total assets decreased by 11.85% to CNY 12,165,539,561.94 compared to the end of the previous year[8]. - The total current assets as of September 30, 2020, amounted to ¥6,091,142,378.73, a decrease from ¥7,622,721,714.66 at the end of 2019[39]. - Current liabilities totaled CNY 6,110,936,609.03, down from CNY 8,133,202,100.50, representing a reduction of approximately 25%[41]. - Total liabilities decreased to CNY 7,478,391,954.86 from CNY 9,209,006,059.63, a decline of approximately 18.8%[41]. - The total liabilities to assets ratio is approximately 66.7%, indicating a leveraged position[74]. Shareholder Information - The total number of shareholders at the end of the reporting period was 43,937[12]. - The largest shareholder, Nanjing First Pesticide Group Co., Ltd., held 45.70% of the shares, with 265,430,531 shares pledged[12]. - The company has not made any repurchase transactions among the top 10 shareholders during the reporting period[15]. Regulatory and Compliance Issues - The company is currently under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[4]. - The company received a notice from the China Securities Regulatory Commission (CSRC) regarding an investigation for suspected violations of information disclosure laws, with the investigation still ongoing[20]. Investment and Growth - The company signed a framework agreement for exclusive agency of 75% ethanol disinfectant products with Jiangsu Zhongbang Pharmaceutical[21]. - The company established a wholly-owned subsidiary, Anhui Huazhou Pharmaceutical Co., Ltd., with a registered capital of 50 million yuan on May 11, 2020[22]. - The company has ongoing construction projects valued at CNY 629.28 million, reflecting investment in future capacity[73]. Research and Development - Research and development expenses increased to CNY 30,125,584.34, up from CNY 27,888,867.76, reflecting a focus on innovation[50]. - Research and development expenses increased to CNY 99,176,140.67, up from CNY 80,730,857.59, reflecting a growth of 22.5% year-over-year[58].