浙富控股(002266) - 2020 Q3 - 季度财报

Part I Important Notice Important Notice The company ensures the quarterly report's truthfulness, accuracy, and completeness, with all directors attending the review meeting Report on Truthfulness Statement The board, supervisory board, and senior management guarantee the quarterly report's accuracy and completeness, assuming legal responsibility - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility[2] - Company head Sun Yi, chief accountant Li Juan, and head of accounting Yang Zonglin declare the financial statements in the quarterly report are true, accurate, and complete[2] - All directors attended the board meeting that reviewed this quarterly report[2] Part II Company Profile Company Profile This section details key financial metrics, shareholder information, and significant changes in the company's financial position Key Accounting Data and Financial Indicators Total assets and net assets attributable to shareholders significantly grew, while operating cash flow substantially decreased Key Accounting Data and Financial Indicators (Adjusted) | Indicator | Current Period End/Year-to-Date (RMB) | Prior Year End/Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Balance Sheet | | | | | Total Assets | 17,762,324,433.57 | 16,823,902,402.24 | 5.58% | | Net Assets Attributable to Shareholders | 7,181,753,820.48 | 5,011,435,467.09 | 43.31% | | Income Statement (Year-to-Date) | | | | | Operating Revenue | 5,627,268,409.77 | 4,632,779,166.20 | 21.47% | | Net Profit Attributable to Shareholders | 786,821,260.55 | 344,471,277.02 | 128.41% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 420,000,734.44 | 49,482,109.05 | 748.79% | | Cash Flow Statement (Year-to-Date) | | | | | Net Cash Flow from Operating Activities | 46,633,875.62 | 1,389,612,072.31 | -96.64% | | Earnings Per Share (Year-to-Date) | | | | | Basic Earnings Per Share (RMB/share) | 0.1954 | 0.1027 | 90.26% | | Diluted Earnings Per Share (RMB/share) | 0.1954 | 0.1027 | 90.26% | | Return on Net Assets (Year-to-Date) | | | | | Weighted Average Return on Net Assets | 13.45% | 7.30% | 6.15% | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off of impairment provisions) | 292,282,063.15 | | Government grants recognized in current profit or loss (excluding those closely related to the company's business and enjoyed at fixed or quantitative standards) | 89,169,795.26 | | Gains or losses from entrusted investments or asset management | 5,224,831.75 | | Net profit or loss of subsidiaries from the beginning of the period to the date of merger under common control | 370,158,948.87 | | Fair value changes and investment income from holding or disposing of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other debt investments (excluding effective hedge accounting related to normal business operations) | -30,633,232.28 | | Other non-operating income and expenses apart from the above | -153,444.27 | | Other profit and loss items that meet the definition of non-recurring gains and losses | 8,705,576.08 | | Less: Income tax impact | 130,772,392.08 | | Minority interest impact (after tax) | 237,161,620.37 | | Total | 366,820,526.11 | Total Shareholders and Top Ten Shareholders' Holdings at Period End As of the reporting period end, the company had 92,403 common shareholders, with Tonglu Yuantong Industrial Co., Ltd. as the controlling shareholder at 25.62% holding, largely pledged, and several major shareholders having concerted action relationships - Total common shareholders at the end of the reporting period: 92,403[6] Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held (Shares) | Number of Restricted Shares Held (Shares) | Share Status | Number (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tonglu Yuantong Industrial Co., Ltd. | Domestic Non-State-Owned Legal Person | 25.62% | 1,375,667,422 | 1,375,667,422 | Pledged | 853,196,000 | | Ye Biao | Domestic Natural Person | 17.57% | 943,674,298 | 943,674,298 | | | | Pingtan Fengshi Hengda Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 11.87% | 637,504,415 | 637,504,415 | Pledged | 144,999,999 | | Sun Yi | Domestic Natural Person | 7.90% | 424,015,664 | 318,011,748 | Pledged | 280,570,229 | | Zhejiang Shenlian Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.91% | 209,705,399 | 209,705,399 | | | | Hu Jinlian | Domestic Natural Person | 3.51% | 188,734,859 | 188,734,859 | | | | Bank of China Co., Ltd. - Guotai Zhiyuan Advantage Mixed Securities Investment Fund | Domestic Non-State-Owned Legal Person | 1.08% | 57,993,122 | 0 | | | | Zhu Jianxing | Domestic Natural Person | 0.77% | 41,222,012 | 0 | | | | Chen Guoping | Domestic Natural Person | 0.72% | 38,800,000 | 0 | | | | Ningbo Fengneng Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.67% | 35,789,720 | 35,789,720 | | | - Key shareholders' related party or concerted action explanation: Tonglu Yuantong Industrial Co., Ltd., Mr. Sun Yi, and Tibet Trust Co., Ltd. – Tibet Trust – Zhiang No. 6 Collective Fund Trust Plan are concerted parties; Mr. Ye Biao, Ms. Hu Jinlian, and Zhejiang Shenlian Investment Management Co., Ltd. are concerted parties; Pingtan Fengshi Hengda Investment Management Partnership (Limited Partnership) and Ningbo Fengneng Investment Management Partnership (Limited Partnership) are concerted parties[7][10] Part III Significant Events Significant Events This section covers major asset restructuring, financial performance forecasts, and other key operational and governance updates Changes and Reasons for Major Financial Data and Indicators Significant changes occurred across balance sheet, income statement, and cash flow items, driven by operational investments and financing activities Balance Sheet Item Changes and Reasons | Item | Period-End Balance (RMB) | Prior Year-End Balance (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Prepayments | 424,120,105.67 | 183,747,842.66 | 130.82% | Primarily due to increased prepayments for production materials procurement in the current period | | Other Current Assets | 334,487,449.94 | 123,418,773.04 | 171.02% | Primarily due to increased deductible VAT | | Contract Assets | 628,017,699.42 | - | - | Primarily due to the company's adoption of new revenue standards from January 1, 2020 | | Construction in Progress | 4,066,781,666.94 | 2,856,666,124.92 | 42.36% | Primarily due to increased investment in NSHE hydropower construction projects and industrial waste comprehensive utilization projects | | Taxes Payable | 340,913,317.87 | 214,565,106.84 | 58.89% | Primarily due to increased accrued taxes payable at period-end | | Long-Term Borrowings | 1,557,697,815.97 | 887,516,639.55 | 75.51% | Primarily due to new special long-term borrowings in the current period | Income Statement Item Changes and Reasons (Year-to-Date) | Item | Year-to-Date (RMB) | Prior Period (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Taxes and Surcharges | 54,901,896.62 | 37,576,198.77 | 46.11% | Primarily due to increased taxes paid for major asset restructuring transactions in the current period | | Investment Income | 163,148,663.21 | 118,159,558.43 | 38.07% | Primarily due to investment income from associates accounted for using the equity method and gains from disposal of trading financial assets and long-term equity investments | | Income Tax Expense | 220,886,892.28 | 122,986,385.97 | 79.60% | Primarily due to the combined effect of increased current income tax expense and decreased deferred income tax expense in the current period | Cash Flow Statement Item Changes and Reasons (Year-to-Date) | Item | Year-to-Date (RMB) | Prior Period (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 46,633,875.62 | 1,389,612,072.31 | -96.64% | Primarily due to increased cash paid for goods purchased and services received compared to the prior period | | Net Cash Flow from Investing Activities | -1,035,915,596.18 | -1,349,470,201.08 | 23.24% | Primarily due to new cash received from the disposal of 2345 shares compared to the prior period | | Net Cash Flow from Financing Activities | 307,276,235.82 | -217,117,039.94 | 241.53% | Primarily due to increased net cash flow from borrowings and debt repayments compared to the prior period | Progress, Impact, and Solutions for Significant Events The company completed a major asset restructuring, acquired additional equity to avoid competition, and underwent board and management elections - The major asset restructuring was unconditionally approved by the M&A and Restructuring Committee on January 16, 2020, and the China Securities Regulatory Commission's approval was received on January 21[14] - To avoid horizontal competition, the company acquired 60% equity of Jingfeng Environmental held by controlling shareholder Sun Yi for RMB 37.20 million on April 3, 2020, and completed the industrial and commercial change registration[14] - On June 2, 2020, the company completed the delivery and transfer of the target assets involved in the major asset restructuring (100% equity of Shenlian Environmental Group and 40% equity of Shenneng Environmental), with 3,391,076,113 new shares listed on the Shenzhen Stock Exchange on June 12, 2020[14] - During the reporting period, the company sold 275,958,376 shares of 2345 stock through centralized bidding and block trading, including 39,762,690 shares sold in Q3 2020[15] - The company's fourth Board of Directors and Supervisory Board terms expired, and new elections were completed in April 2020, appointing the Chairman and Vice Chairman of the fifth Board of Directors, Chairman of the fifth Supervisory Board, members of various Board committees, senior management, internal audit head, and securities affairs representative[16] Overdue Unfulfilled Commitments by Related Parties During the reporting period, the company had no overdue unfulfilled commitments from controlling shareholders, related parties, or the company itself - The company had no overdue unfulfilled commitments from controlling shareholders, shareholders, related parties, acquirers, or the company itself during the reporting period[19] Financial Asset Investments The company had no securities investments during the reporting period, but engaged in derivative investments including futures and forward foreign exchange contracts, incurring a net loss of RMB 31.83 million (July-September) primarily from futures, with a management system in place to control related risks - The company had no securities investments during the reporting period[20] Derivative Investment Status (July-September) | Derivative Investment Operator Name | Derivative Investment Type | Actual Gain/Loss (July-September) (RMB million) | | :--- | :--- | :--- | | Zhejiang Nanhua Capital Management Co., Ltd. | Futures Contracts | -32.13 | | Industrial and Commercial Bank of China | Forward Foreign Exchange Contracts | -0.09 | | China Minsheng Bank Hangzhou Branch | Forward Foreign Exchange Contracts | 0.40 | | Total | | -31.83 | - Derivative investment funds originated from self-owned capital. The company has established a "Securities Investment and Derivative Transaction Management System" and related risk control measures, approved by independent directors, to mitigate exchange rate and interest rate fluctuation risks and enhance financial stability[21][22] Progress of Fundraising Investment Projects The company had no fundraising investment projects during the reporting period - The company had no fundraising investment projects during the reporting period[23] Forecast of 2020 Annual Operating Performance The company anticipates a significant year-on-year increase in 2020 net profit, primarily due to the major asset restructuring - The company expects its 2020 annual operating performance to increase year-on-year[23] 2020 Annual Operating Performance Forecast | Indicator | Estimated Amount Year-to-Next Reporting Period End (RMB million) | Prior Year Period (Post-Restructuring) (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cumulative Net Profit Attributable to Parent Company | 1,145.04 - 1,309.24 | 469.56 | 143.85% - 178.82% | | Basic Earnings Per Share (RMB/share) | 0.2625 - 0.3001 | 0.1400 | 87.50% - 114.36% | - The performance growth is primarily due to the completion of the major asset restructuring and the inclusion of the target companies into the company's consolidated financial statements[24] Significant Contracts in Ordinary Course of Business The company had no significant contracts in its ordinary course of business during the reporting period - The company had no significant contracts in its ordinary course of business during the reporting period[25] Entrusted Wealth Management During the reporting period, the company engaged in entrusted wealth management with its own funds, investing RMB 264.78 million in bank wealth management products, with an outstanding balance of RMB 19.68 million and no overdue unrecovered amounts Entrusted Wealth Management Status (July-September 2020) | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (July-September 2020) (RMB million) | Unexpired Balance (RMB million) | Overdue Unrecovered Amount (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Self-owned Funds | 264.78 | 19.68 | 0 | - The company had no significant, low-safety, poor-liquidity, non-principal-guaranteed high-risk entrusted wealth management products, nor any situations where principal was expected to be unrecoverable or other impairment risks existed during the reporting period[25] Illegal External Guarantees The company had no instances of illegal external guarantees during the reporting period - The company had no instances of illegal external guarantees during the reporting period[26] Non-Operating Funds Occupied by Controlling Shareholders and Related Parties During the reporting period, there were no non-operating funds occupied by controlling shareholders or their related parties from the listed company - The company had no non-operating funds occupied by controlling shareholders or their related parties from the listed company during the reporting period[26] Registration Form for Research, Communication, and Interview Activities The company hosted 9 institutional investor activities, discussing its development, core businesses, and future plans - During the reporting period, the company hosted 9 institutional investor research, communication, and interview activities[28][29] - Reception objects included Huatai Securities, Dongwu Securities, GF Securities, Guohai Securities, Haitong Securities, Caitong Securities, E Fund Asset Management, Galaxy Fund, Shanghai Zesheng Investment, Changjiang Securities, Noah Fund, Guotai Junan Securities, Boshi Fund, Shenwan Hongyuan, Bank of China Fund, Changxin Fund, Taiping Pension Insurance, Guotai Fund, Guolian'an Fund, HSBC Jintrust, Dongwu Fund, BOCOM Schroders Fund, ABC-CA Fund, Huachuang Securities, China Merchants Securities, and others[28][29] - Key discussion topics covered the company's development history, main businesses before and after restructuring, an overview of the hazardous waste industry, highlights of the company's hazardous waste disposal business, and future development plans[28][29] Part IV Financial Statements Financial Statements This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements Financial Statements This section provides detailed consolidated and parent company financial statements as of September 30, 2020, and for the current period and year-to-date Consolidated Balance Sheet Consolidated total assets reached RMB 17.76 billion, with owner's equity attributable to the parent company increasing by 43.31% Consolidated Balance Sheet Major Data (September 30, 2020) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 17,762,324,433.57 | | Total Current Assets | 7,288,807,970.21 | | Total Non-Current Assets | 10,473,516,463.36 | | Total Liabilities | 9,319,979,751.39 | | Total Current Liabilities | 7,513,431,302.24 | | Total Non-Current Liabilities | 1,806,548,449.15 | | Total Owner's Equity | 8,442,344,682.18 | | Total Owner's Equity Attributable to Parent Company | 7,181,753,820.48 | | Minority Interests | 1,260,590,861.70 | - Compared to December 31, 2019, total assets increased by 5.58%, and net assets attributable to listed company shareholders increased by 43.31%[4] Parent Company Balance Sheet Parent company total assets significantly increased to RMB 17.89 billion, with long-term equity investments being a major component Parent Company Balance Sheet Major Data (September 30, 2020) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 17,889,634,739.09 | | Total Current Assets | 1,216,324,774.78 | | Total Non-Current Assets | 16,673,309,964.31 | | Long-Term Equity Investments | 16,465,217,537.24 | | Total Liabilities | 4,212,312,617.84 | | Total Current Liabilities | 3,548,341,756.16 | | Total Non-Current Liabilities | 663,970,861.68 | | Total Owner's Equity | 13,677,322,121.25 | - Compared to December 31, 2019, parent company total assets increased from RMB 6.64 billion to RMB 17.89 billion, and owner's equity increased from RMB 3.51 billion to RMB 13.68 billion[37] Consolidated Income Statement for the Current Period In Q3 2020, the company achieved total operating revenue of RMB 2.49 billion, a 52.38% year-on-year increase, with net profit attributable to parent company owners at RMB 414 million, up 304.93%; operating profit and total profit significantly grew, while minority interest income decreased substantially Consolidated Income Statement Major Data (July-September 2020) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,486,405,461.95 | 1,631,672,451.67 | 52.38% | | Total Operating Costs | 2,122,279,412.53 | 1,402,360,834.98 | 51.34% | | Operating Profit | 506,770,680.78 | 280,775,452.70 | 80.50% | | Total Profit | 505,589,926.31 | 282,549,494.90 | 78.94% | | Net Profit | 416,233,720.01 | 264,430,634.50 | 57.49% | | Net Profit Attributable to Parent Company Owners | 413,692,306.25 | 102,164,238.46 | 304.93% | | Minority Interest Income | 2,541,413.76 | 162,266,396.04 | -98.43% | | Basic Earnings Per Share (RMB/share) | 0.0770 | 0.0305 | 152.46% | - Net profit realized by the merged entity before the merger under common control was RMB 0.00 for the current period, compared to RMB 241.37 million for the prior period[41] Parent Company Income Statement for the Current Period In Q3 2020, the parent company's operating revenue was RMB 176 million, a year-on-year decrease, while net profit reached RMB 43.21 million, a significant increase from RMB 0.80 million in the prior year, primarily driven by investment income Parent Company Income Statement Major Data (July-September 2020) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | | Operating Revenue | 175,661,187.37 | 234,046,542.41 | | Operating Profit | 79,183,576.66 | 751,241.80 | | Total Profit | 79,181,286.66 | 775,453.19 | | Net Profit | 43,212,184.99 | 799,517.53 | | Investment Income | 97,072,212.07 | 20,414,451.01 | Consolidated Income Statement Year-to-Date As of September 30, 2020, the company's total operating revenue reached RMB 5.63 billion, a 21.47% year-on-year increase, with net profit attributable to parent company owners at RMB 787 million, up 128.41%; total profit and net profit significantly grew, while minority interest income decreased Consolidated Income Statement Major Data (January-September 2020) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,627,268,409.77 | 4,632,779,166.20 | 21.47% | | Total Operating Costs | 4,807,325,237.35 | 3,943,679,741.30 | 21.90% | | Operating Profit | 1,250,535,423.17 | 997,322,586.57 | 25.39% | | Total Profit | 1,247,585,057.68 | 989,419,361.82 | 26.09% | | Net Profit | 1,026,698,165.40 | 866,432,975.85 | 18.50% | | Net Profit Attributable to Parent Company Owners | 786,821,260.55 | 344,471,277.02 | 128.41% | | Minority Interest Income | 239,876,904.85 | 521,961,698.83 | -54.05% | | Basic Earnings Per Share (RMB/share) | 0.1954 | 0.1027 | 90.26% | - Net profit realized by the merged entity before the merger under common control was RMB 370.16 million for the current period, compared to RMB 770.60 million for the prior period[47][48] Parent Company Income Statement Year-to-Date Year-to-date parent company operating revenue decreased, but net profit significantly increased, primarily due to investment income Parent Company Income Statement Major Data (January-September 2020) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | | Operating Revenue | 437,537,769.70 | 618,728,657.75 | | Operating Profit | 290,547,273.45 | 44,996,717.46 | | Total Profit | 290,590,725.75 | 44,934,491.85 | | Net Profit | 184,580,056.85 | 46,069,376.08 | | Investment Income | 375,411,713.54 | 121,279,798.04 | Consolidated Cash Flow Statement Year-to-Date Operating cash flow significantly decreased, while financing cash flow substantially increased, and investing cash flow outflow narrowed Consolidated Cash Flow Statement Major Data (January-September 2020) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 46,633,875.62 | 1,389,612,072.31 | -96.64% | | Net Cash Flow from Investing Activities | -1,035,915,596.18 | -1,349,470,201.08 | 23.24% (Outflow Reduction) | | Net Cash Flow from Financing Activities | 307,276,235.82 | -217,117,039.94 | 241.53% | | Net Increase in Cash and Cash Equivalents | -689,682,430.67 | -165,455,288.21 | -316.84% | | Cash and Cash Equivalents at Period End | 1,045,656,552.27 | 1,213,513,039.33 | -13.70% | Parent Company Cash Flow Statement Year-to-Date Parent company operating and financing cash flows turned positive, while investing cash flow significantly decreased Parent Company Cash Flow Statement Major Data (January-September 2020) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 152,850,825.60 | -154,146,820.89 | | Net Cash Flow from Investing Activities | 257,734.29 | 207,918,832.00 | | Net Cash Flow from Financing Activities | 42,642,384.79 | -36,502,638.48 | | Cash and Cash Equivalents at Period End | 231,115,610.96 | 81,491,020.34 | Explanation of Financial Statement Adjustments The company retrospectively adjusted opening balance sheet items due to the initial adoption of new revenue and lease accounting standards Adjustments to Opening Financial Statements from Initial Adoption of New Revenue and Lease Standards in 2020 Initial adoption of new revenue and lease standards led to reclassifications and adjustments in consolidated and parent company balance sheets Consolidated Balance Sheet Major Adjustments (January 1, 2020) | Item | December 31, 2019 (RMB) | January 1, 2020 (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Inventory | 3,486,538,139.62 | 2,657,683,775.04 | -828,854,364.58 | | Contract Assets | - | 662,093,385.15 | 662,093,385.15 | | Other Current Assets | 123,418,773.04 | 183,258,799.10 | 59,840,026.06 | | Advances from Customers | 87,768,079.44 | 2,490,573.57 | -85,277,505.87 | | Contract Liabilities | - | 181,048,455.59 | 181,048,455.59 | | Taxes Payable | 214,565,106.84 | 169,854,015.70 | -44,711,091.14 | | Deferred Income | 210,364,409.54 | 112,663,819.81 | -97,700,589.73 | | Surplus Reserves | 165,394,257.98 | 163,084,398.53 | -2,309,859.45 | | Retained Earnings | 1,689,201,727.12 | 1,661,930,309.95 | -27,271,417.17 | Parent Company Balance Sheet Major Adjustments (January 1, 2020) | Item | December 31, 2019 (RMB) | January 1, 2020 (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Inventory | 621,635,312.52 | 1,916,172.36 | -619,719,140.16 | | Contract Assets | - | 555,937,523.69 | 555,937,523.69 | | Advances from Customers | 61,943,863.33 | - | -61,943,863.33 | | Contract Liabilities | - | 61,943,863.33 | 61,943,863.33 | | Surplus Reserves | 165,394,257.98 | 163,084,398.53 | -2,309,859.45 | | Retained Earnings | 1,196,991,032.70 | 1,176,202,297.61 | -20,788,735.09 | Explanation of Retrospective Adjustments to Prior Period Comparative Data from Initial Adoption of New Revenue and Lease Standards in 2020 The company had no retrospective adjustments to prior period comparative data due to the initial adoption of new revenue and lease accounting standards - The company had no retrospective adjustments to prior period comparative data due to the initial adoption of new revenue and lease accounting standards from 2020[64] Audit Report The company's Q3 2020 report is unaudited - The company's third-quarter report is unaudited[64]