DEREN(SZ:002055)2023-10-26 16:00Key Financial Data Key Accounting Data and Financial Indicators The company's YTD net profit turned positive despite a Q3 revenue decline and a sharp drop in operating cash flow Key Financial Indicators | Indicator | Current Period (Q3) | Year-to-Date (YTD) | YTD YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,668,543,454.34 | 5,037,363,307.82 | -10.54% | | Net Profit Attributable to Parent Company Shareholders (Yuan) | 1,148,135.65 | 8,148,214.77 | 114.77% | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) (Yuan) | -8,888,443.74 | -22,430,349.52 | 65.53% | | Net Cash Flow from Operating Activities (Yuan) | — | -79,330,694.77 | -149.13% | | Basic Earnings Per Share (Yuan/Share) | 0.0019 | 0.0135 | 114.79% | | Total Assets (Yuan) | 7,933,548,607.42 | 7,933,548,607.42 | -15.20% (vs. Beginning of Year) | | Equity Attributable to Parent Company Shareholders (Yuan) | 2,837,004,742.31 | 2,837,004,742.31 | 0.26% (vs. Beginning of Year) | - Despite a 72.58% YoY decline in Q3 net profit, the cumulative YTD net profit grew significantly and turned positive, mainly due to non-recurring gains and losses4 Non-recurring Profit and Loss Items and Amounts YTD non-recurring gains totaled 30.58 million Yuan, driven by government subsidies, which was key to achieving profitability YTD Non-recurring Profit and Loss Items | Item | YTD Amount (Yuan) | | :--- | :--- | | Government Subsidies | 29,893,814.39 | | Other Items Defined as Non-recurring P&L | 11,946,594.28 | | Other Non-operating Income and Expenses | -5,641,529.33 | | Total | 30,578,564.29 | Analysis of Major Financial Indicator Changes Significant financial indicator changes were driven by asset structure adjustments and shifts in cash flow activities - Key drivers for balance sheet changes: - Changes in consolidation scope: Affected multiple items including financing receivables, inventory, and notes payable - Asset structure adjustments: Construction in progress (-86.05%) was largely transferred to fixed assets (+37.28%) upon plant completion - Cash management: Use of idle raised funds for wealth management products decreased cash and cash equivalents (-65.11%) and increased trading financial assets (+439.32%) - R&D investment: Continued R&D spending led to a 55.57% increase in development expenditures78 - Key drivers for income statement and cash flow changes: - Investment income: Grew 68.82% YoY due to gains from the disposal of partial subsidiary equity - Operating cash flow: Decreased by 149.13% YoY, mainly due to reduced tax refunds and changes in accounting for notes discounting - Investing cash flow: Net outflow decreased by 39.53%, primarily from cash received from subsidiary disposals - Financing cash flow: Net outflow decreased by 92.03%, mainly due to reduced cash outflow for debt repayment8 Shareholder Information Common Shareholder Holdings The company had 52,158 common shareholders, with the largest shareholder's entire stake pledged and frozen - Total number of common shareholders was 52,158 at the end of the reporting period10 Top Shareholders and Holdings | Shareholder Name | Shareholding Ratio | Number of Shares | Share Status | | :--- | :--- | :--- | :--- | | Shenzhen Desheng Asset Management Co., Ltd. | 16.54% | 99,962,615 | Pledged and Frozen | | Qiu Jianmin | 2.90% | 17,511,017 | Pledged and Frozen | | Yang Hua | 2.02% | 12,200,033 | - | | Su Jin | 1.78% | 10,762,200 | Pledged | - A potential associated relationship and concerted action may exist between the largest shareholder, Shenzhen Desheng Asset Management Co., Ltd., and shareholders Qiu Jianmin and Yang Hua11 Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2023, both total assets and liabilities decreased due to changes in the scope of consolidation Key Balance Sheet Items | Item | Sep 30, 2023 (Yuan) | Jan 1, 2023 (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 7,933,548,607.42 | 9,355,367,829.92 | -15.20% | | Total Liabilities | 5,128,135,420.71 | 6,152,592,426.32 | -16.65% | | Total Equity Attributable to Parent Company Shareholders | 2,837,004,742.31 | 2,829,634,240.36 | 0.26% | Consolidated Income Statement (YTD) In the first three quarters of 2023, the company achieved profitability despite a 10.54% YoY revenue decline Key Income Statement Items (YTD) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,037,363,307.82 | 5,630,546,470.70 | -10.54% | | Operating Profit | 10,557,839.03 | -23,559,613.04 | Turnaround to Profit | | Total Profit | 4,489,006.00 | -61,427,098.37 | Turnaround to Profit | | Net Profit Attributable to Parent Company Shareholders | 8,148,214.77 | -55,175,302.91 | 114.77% | Consolidated Cash Flow Statement (YTD) YTD operating cash flow turned negative, while net cash outflows from investing and financing activities narrowed Key Cash Flow Items (YTD) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -79,330,694.77 | 161,484,855.96 | -149.13% | | Net Cash Flow from Investing Activities | -520,132,957.63 | -860,125,274.03 | Net outflow decreased 39.53% | | Net Cash Flow from Financing Activities | -48,555,468.84 | -609,605,279.08 | Net outflow decreased 92.03% | | Net Increase in Cash and Cash Equivalents | -639,949,935.55 | -1,306,207,449.75 | Net decrease narrowed |