海南瑞泽(002596) - 2020 Q3 - 季度财报

Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume legal responsibility[3] - All directors attended the board meeting to review this quarterly report[4] - Company负责人 Zhang Hailin, chief accountant Wu Yueliang, and head of accounting department Zhang Guiyang declare that the financial statements in the quarterly report are true, accurate, and complete[4] Company Profile Key Accounting Data and Financial Indicators As of Q3 2020, total assets and net assets attributable to shareholders showed slight growth, with current period revenue up 25.92% and net profit up 98.79%, while year-to-date cumulative figures and operating cash flow decreased significantly Key Accounting Data and Financial Indicators (Consolidated) | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 6,283,776,402.47 | 6,160,992,143.84 | 1.99% | | Net Assets Attributable to Shareholders | 3,130,447,199.18 | 3,111,819,194.85 | 0.60% | | Indicator | Current Period (RMB) | Current Period vs Prior Year Change (%) | Year-to-Date (RMB) | Year-to-Date vs Prior Year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 739,459,323.31 | 25.92% | 1,722,901,663.81 | -5.25% | | Net Profit Attributable to Shareholders | 21,295,298.23 | 98.79% | 30,869,845.33 | -45.45% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 19,317,262.05 | 52.18% | 9,182,376.86 | -79.77% | | Net Cash Flow from Operating Activities | 34,041,175.10 | -90.96% | 149,055,000.84 | -55.66% | | Basic Earnings Per Share (RMB/share) | 0.02 | 100.00% | 0.03 | -40.00% | | Diluted Earnings Per Share (RMB/share) | 0.02 | 100.00% | 0.03 | -40.00% | | Weighted Average Return on Net Assets | 0.68% | 0.38% | 0.99% | -0.59% | Non-Recurring Gains and Losses Items and Amounts | Item | Year-to-Date Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -257,884.98 | | | Government Subsidies Included in Current Profit/Loss | 3,296,703.72 | | | Reversal of Impairment Provisions for Receivables and Contract Assets Subject to Separate Impairment Testing | 9,500,000.00 | Recovery of individually provided accounts receivable, reversal of corresponding bad debt provisions | | Other Non-Operating Income and Expenses Apart from the Above | 11,847,770.71 | Mainly government awards and compensation | | Less: Income Tax Impact | 2,699,267.98 | | | Minority Interest Impact (After Tax) | -147.00 | | | Total | 21,687,468.47 | -- | Total Shareholders and Top Ten Holdings at Period End As of the end of the reporting period, the company had 71,605 common shareholders, with key shareholders including Zhang Hailin, Feng Huoling, Sanya Daxing Group, and Zhang Yilin, who are acting in concert, and some shares are pledged - Total common shareholders at period end: 71,605[11] Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held (Shares) | Number of Restricted Shares Held (Shares) | Pledge or Freeze Status (Share Status/Number) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Hailin | Domestic Natural Person | 12.18% | 139,920,000 | 111,740,325 | Pledged/135,590,800 | | Feng Huoling | Domestic Natural Person | 11.27% | 129,510,000 | 0 | Pledged/60,924,000 | | Sanya Daxing Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 8.28% | 95,132,742 | 0 | Pledged/95,130,000 | | Zhang Yilin | Domestic Natural Person | 4.63% | 53,249,900 | 0 | Pledged/53,249,900 | | Xu Zhanyuan | Domestic Natural Person | 2.66% | 30,594,019 | 9,238,382 | | | Deng Yandong | Domestic Natural Person | 2.00% | 22,937,745 | 8,787,730 | | | China International Capital Corporation Limited | State-Owned Legal Person | 1.68% | 19,346,846 | 0 | | | Li Zhijie | Domestic Natural Person | 1.31% | 15,058,074 | 0 | | | Liang Zhaojian | Domestic Natural Person | 1.08% | 12,368,832 | 0 | | | Sanya Houde Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.96% | 11,061,948 | 0 | Pledged/11,040,000 | - Zhang Hailin, Zhang Yilin, and Feng Huoling are acting in concert; Zhang Hailin and Zhang Yilin are brothers, Feng Huoling is their brother-in-law; Sanya Daxing Group Co., Ltd. and Sanya Houde Investment Management Co., Ltd. are controlled by Zhang Hailin and Zhang Yilin[12] Significant Events Changes and Reasons for Key Financial Data and Indicators During the reporting period, the company experienced significant changes across its balance sheet, income statement, and cash flow statement, driven by business development, accounting policy adjustments, and specific transactions like subsidiary disposals and increased borrowings Balance Sheet Item Changes (Partial) | Item | September 30, 2020 (RMB) | December 31, 2019 (RMB) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | - | 10,680,800.00 | -100.00% | Mainly due to the cancellation of performance compensation shares of former shareholders of Guangdong Lurun | | Receivables Financing | 4,273,184.34 | 23,855,782.43 | -82.09% | Mainly due to a decrease in bank acceptance bill balance | | Prepayments | 39,451,586.02 | 15,259,634.17 | 158.54% | Mainly due to an increase in prepaid material costs | | Other Receivables | 210,940,325.13 | 140,518,755.90 | 50.12% | Mainly due to an increase in performance bonds paid and receivables from equity transfer | | Inventories | 433,054,174.87 | 325,772,085.07 | 32.93% | Mainly due to an increase in unsettled engineering projects | | Contract Assets | 212,130,565.40 | - | 100.00% | Mainly due to changes in accounting policies, reclassified from original accounts receivable to this item | | Assets Held for Sale | - | 72,229,997.55 | -100.00% | Mainly due to the company's disposal of subsidiary equity | | Construction in Progress | 49,274,039.25 | 29,570,629.66 | 66.63% | Mainly due to increased investment in environmental sanitation projects | | Prepayments Received | - | 31,878,284.05 | -100.00% | Mainly due to changes in accounting standards, reclassified to contract liabilities, resulting in a decrease | | Contract Liabilities | 24,970,483.61 | - | 100.00% | Mainly due to changes in accounting standards, reclassified from original prepayments received to this item | | Non-Current Liabilities Due Within One Year | 197,434,091.95 | 473,075,967.76 | -58.27% | Mainly due to a decrease in long-term payables due within one year | | Long-Term Borrowings | 1,404,732,555.28 | 879,498,711.21 | 59.72% | Mainly due to an increase in long-term bank borrowings obtained | | Long-Term Payables | 119,758,539.69 | 38,415,935.95 | 211.74% | Mainly due to an increase in long-term payables due within one year | Income Statement Item Changes (Year-to-Date) | Item | Jan-Sep 2020 (RMB) | Jan-Sep 2019 (RMB) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 4,761,213.34 | -1,080,909.60 | 540.48% | Mainly due to an increase in investment income from associates | | Gains/Losses from Asset Disposal | 949,628.52 | 14,137,050.27 | -93.28% | Mainly due to a decrease in gains from disposal of fixed assets | Cash Flow Statement Item Changes (Year-to-Date) | Item | Jan-Sep 2020 (RMB) | Jan-Sep 2019 (RMB) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash Paid for Investments | - | 276,600,000.00 | -100.00% | Mainly due to a decrease in payments for equity acquisition from former shareholders of Guangdong Lurun | | Cash Received from Investments | 10,000.00 | 469,099,989.36 | -100.00% | Mainly due to a decrease in cash received from non-public issuance of shares | | Cash Received from Borrowings | 659,049,566.64 | 879,010,000.00 | -25.02% | Mainly due to a decrease in short-term borrowings obtained | | Cash Received Related to Other Financing Activities | - | 71,561,709.60 | -100.00% | Mainly due to a decrease in cash received from finance leases and shareholder loans | | Cash Paid Related to Other Financing Activities | 100,748,496.98 | 149,809,968.60 | -32.75% | Mainly due to a decrease in payments for other borrowings and finance leases | Progress, Impact, and Solutions for Significant Events The company addressed share repurchase and cancellation, saw its bond issuance approval expire, strategically expanded into the cruise tourism industry, benefited from Hainan Free Trade Port tax incentives, and secured new environmental sanitation and landscaping projects - Equity incentive plan: The company plans to repurchase and cancel 1.439 million restricted shares granted to 81 incentive recipients who failed to meet the third unlocking conditions due to not achieving 2019 performance targets[19] - Corporate bonds: The original approval for public issuance of corporate bonds with a total face value not exceeding RMB 930 million has expired and become invalid, as it could not be implemented within 12 months due to changes in capital market conditions[21] - Cruise tourism industry layout: Wholly-owned subsidiary Ruize Tourism established wholly-owned subsidiary Ruize Cruise, and jointly with Sanya Zhongqin Shipping Services Co., Ltd., established Sansha Hongyang Cruise Development Co., Ltd. (Ruize Cruise holds 30% equity) to integrate regional and industrial advantages for cruise tourism comprehensive projects[21][22] - Tax incentives: Production enterprises in the company's concrete segment, such as Hainan Ruize Shuanglin Building Materials Co., Ltd., qualify as encouraged industries in the Hainan Free Trade Port, enjoying a 15% corporate income tax preferential rate, positively impacting future performance[22] Projects Awarded During the Reporting Period | Project Name | Awarded Company | Awarded Amount/Service Period | Impact | | :--- | :--- | :--- | :--- | | Xinhui District Main Urban Area Environmental Sanitation Integration and Market-Oriented Operation Project | Guangdong Lurun Environmental Technology Co., Ltd. | Total bid price RMB 1,565,226,046.67, service period 8 years | Conducive to expanding municipal environmental sanitation business scale and regional reach, positively impacting company operating performance | | Chencun Town 2020-2023 Village (Community) Greening Management and Road Cleaning Project | Guangdong Lurun Environmental Technology Co., Ltd. | RMB 39,866,588.28, contract performance period until August 31, 2023 | Same as above | | Longbiao Town 2020-2023 Municipal Main Road Environmental Sanitation and Greening Integration and Waste Collection and Transportation Operation Project (Section 3) | Guangdong Lurun Environmental Technology Co., Ltd. | RMB 11,862,400/year, total RMB 35,587,200 for three years, service period 3 years | Same as above | Unfulfilled Commitments by Related Parties During the reporting period, there were no overdue unfulfilled commitments by the company's controlling shareholder, shareholders, related parties, acquirers, or the company itself - The company had no overdue unfulfilled commitments by its controlling shareholder, shareholders, related parties, acquirers, or the company itself during the reporting period[26] Financial Asset Investments During the reporting period, the company had no securities or derivative investments - The company had no securities investments during the reporting period[27] - The company had no derivative investments during the reporting period[28] Progress of Fund-Raising Investment Projects During the reporting period, the company had no fund-raising investment projects - The company had no fund-raising investment projects during the reporting period[29] Forecast of 2020 Operating Performance The company did not issue any warnings or explanations regarding projected losses or significant changes in its 2020 operating performance - The company did not issue any warnings or explanations regarding projected losses or significant changes in its 2020 operating performance compared to the previous year[29] Significant Daily Operating Contracts The company continued to advance several significant daily operating contracts in ecological landscaping, tourism poverty alleviation infrastructure, PPP projects, and environmental sanitation engineering, with substantial contract values and ongoing revenue recognition and collections Progress of Significant Daily Operating Contracts (Partial) | Contract Party Name | Contract Subject | Total Contract Amount (RMB 10,000) | Contract Performance Progress | Sales Revenue Recognized (Current Period & Cumulative, RMB 10,000) | Accounts Receivable Collection (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sanya Xindaxing Landscape Ecology Co., Ltd. | Sinan County Haojiawan Ancient Village Tourism Poverty Alleviation Infrastructure Construction Project | 35,600 | Cumulative project progress completed RMB 29,638.27 million, currently under construction | Current period revenue 0, cumulative revenue 28,775.02 | Cumulative collection 980 | | Sanya Xindaxing Landscape Ecology Co., Ltd. | Luodian County Tourism Infrastructure Construction PPP Project | 69,000 | Cumulative project progress completed RMB 44,609 million, currently under construction | Current period revenue 5,093.58, cumulative revenue 40,848.67 | Cumulative collection 44,948.81 | | Sanya Xindaxing Landscape Ecology Co., Ltd. | Yongjiang Comprehensive Improvement and Utilization Project PPP Project | 84,675.85 | Completed and accepted, settlement procedures in progress, cumulative project progress completed RMB 11,555.66 million | Current period revenue 291.77, cumulative revenue 10,548.42 | Cumulative collection 9,134.86 | | Heshan Lusheng Environmental Engineering Co., Ltd. | Heshan Mashan Landfill Reduction PPP Project | 49,300 | Service period completed 2 years and 5 months (cooperation period 20 years) | Current period revenue 757.5, cumulative revenue 2,356.86 | Cumulative collection 550 | | Guangdong Lurun Environmental Technology Co., Ltd. | Zhaoqing Duanzhou District Environmental Sanitation Cleaning and Maintenance Service New Area Project | 6,438 | Service period completed 3 years and 6 months (cooperation period 8 years and 9 months) | Current period revenue 2,700.33, cumulative revenue 12,150.74 | Cumulative collection 11,716.22 | | Guangdong Lurun Environmental Technology Co., Ltd. | Zhuhai Doumen District Water Bureau Jing'an Urban Area and Xinquing Area Drainage Pipe Network Desilting and Inspection Project Procurement | 6,173 | Service period completed 332 calendar days (contract period 180 calendar days) | Current period revenue 1,127, cumulative revenue 3,153 | Cumulative collection 1,012 | - During the reporting period, there were no significant discrepancies in the progress of major contracts that affected the contract amount by more than 30%[31] Wealth Management During the reporting period, the company had no wealth management activities - The company had no wealth management activities during the reporting period[32] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[33] Non-Operating Funds Occupied by Controlling Shareholder and Related Parties During the reporting period, there were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company - The company had no non-operating funds occupied by its controlling shareholder or related parties during the reporting period[34] Investor Relations Activities Registration During the reporting period, the company did not engage in any investor relations activities such as research visits, communications, or interviews - The company did not engage in any investor relations activities such as research visits, communications, or interviews during the reporting period[35] Financial Statements Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, and cash flow statements, covering the current reporting period and year-to-date, highlighting adjustments in asset structure, liabilities, and profit/cash flow variances Consolidated Balance Sheet As of September 30, 2020, consolidated total assets were RMB 6.284 billion, a 1.99% increase from year-end, with notable changes in accounts receivable, contract assets, long-term borrowings, and long-term payables Consolidated Balance Sheet Key Items (September 30, 2020 vs December 31, 2019) | Item | September 30, 2020 (RMB) | December 31, 2019 (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 350,049,307.07 | 362,977,994.19 | | Accounts Receivable | 1,691,182,459.94 | 1,978,128,454.30 | | Contract Assets | 212,130,565.40 | - | | Total Current Assets | 3,127,114,451.62 | 3,072,897,867.94 | | Long-Term Borrowings | 1,404,732,555.28 | 879,498,711.21 | | Long-Term Payables | 119,758,539.69 | 38,415,935.95 | | Total Liabilities | 3,078,834,043.88 | 2,976,321,739.09 | | Total Equity Attributable to Parent Company Owners | 3,130,447,199.18 | 3,111,819,194.85 | | Total Assets | 6,283,776,402.47 | 6,160,992,143.84 | Parent Company Balance Sheet As of September 30, 2020, parent company total assets were RMB 4.377 billion, showing growth from year-end, with significant changes in cash, other receivables, and long-term borrowings Parent Company Balance Sheet Key Items (September 30, 2020 vs December 31, 2019) | Item | September 30, 2020 (RMB) | December 31, 2019 (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,961,912.34 | 51,879,283.68 | | Other Receivables | 697,341,148.76 | 328,353,878.71 | | Long-Term Equity Investments | 3,577,962,542.72 | 3,574,253,308.29 | | Total Assets | 4,376,505,071.27 | 4,113,458,678.88 | | Other Payables | 549,900,567.44 | 296,685,183.18 | | Non-Current Liabilities Due Within One Year | 125,898,133.33 | 415,269,907.18 | | Long-Term Borrowings | 276,000,000.00 | 58,000,000.00 | | Total Liabilities | 1,079,919,764.64 | 779,612,687.09 | | Total Owners' Equity | 3,296,585,306.63 | 3,333,845,991.79 | Consolidated Income Statement for the Current Period In Q3 2020, consolidated total operating revenue was RMB 739.46 million, up 25.92% year-on-year, with net profit attributable to parent company owners at RMB 21.30 million, a 98.79% increase, influenced by higher credit impairment losses and income tax expenses Consolidated Income Statement Key Items for the Current Period (Q3 2020 vs Q3 2019) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 739,459,323.31 | 587,232,262.88 | | Total Operating Costs | 664,217,991.26 | 562,338,398.30 | | Investment Income | 3,949,518.19 | -343,586.38 | | Credit Impairment Losses | -38,962,049.17 | -3,088,920.67 | | Total Profit | 44,701,514.78 | 22,369,281.04 | | Income Tax Expense | 23,778,189.22 | 10,869,592.92 | | Net Profit | 20,923,325.56 | 11,499,688.12 | | Net Profit Attributable to Parent Company Owners | 21,295,298.23 | 10,712,712.93 | | Basic Earnings Per Share | 0.02 | 0.01 | Parent Company Income Statement for the Current Period In Q3 2020, parent company operating revenue was RMB 7.11 million, resulting in a net loss of RMB 4.73 million, a narrower loss compared to the prior year, with investment income and credit impairment losses significantly impacting profitability Parent Company Income Statement Key Items for the Current Period (Q3 2020 vs Q3 2019) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 7,107,315.58 | 6,285,582.06 | | Financial Expenses | 10,547,225.63 | 11,797,560.83 | | Investment Income | 3,949,794.10 | -344,252.62 | | Credit Impairment Losses | -861,473.08 | 2,516,793.11 | | Net Profit | -4,733,310.31 | -4,969,270.88 | | Basic Earnings Per Share | -0.0041 | -0.0043 | Consolidated Income Statement Year-to-Date As of September 2020, consolidated total operating revenue was RMB 1.723 billion, down 5.25% year-on-year, with net profit attributable to parent company owners at RMB 30.87 million, a 45.45% decrease, primarily due to a significant increase in credit impairment losses Consolidated Income Statement Key Items Year-to-Date (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,722,901,663.81 | 1,818,362,653.35 | | Total Operating Costs | 1,590,313,294.74 | 1,711,632,714.58 | | Investment Income | 4,761,213.34 | -1,080,909.60 | | Credit Impairment Losses | -77,026,868.64 | -35,521,017.18 | | Operating Profit | 73,169,332.37 | 94,648,651.03 | | Total Profit | 82,486,198.80 | 93,857,369.66 | | Income Tax Expense | 47,132,894.63 | 35,132,739.58 | | Net Profit | 35,353,304.17 | 58,724,630.08 | | Net Profit Attributable to Parent Company Owners | 30,869,845.33 | 56,586,092.59 | | Basic Earnings Per Share | 0.03 | 0.050 | Parent Company Income Statement Year-to-Date As of September 2020, parent company operating revenue was RMB 13.46 million, resulting in a net loss of RMB 25.02 million, a shift from profit to loss, mainly driven by a substantial decrease in investment income Parent Company Income Statement Key Items Year-to-Date (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 13,455,984.77 | 20,173,511.23 | | Administrative Expenses | 14,168,847.05 | 7,470,717.11 | | Financial Expenses | 33,561,713.09 | 40,565,971.13 | | Investment Income | 4,412,867.20 | 199,197,106.26 | | Operating Profit | -26,958,137.24 | 184,461,106.66 | | Net Profit | -25,018,844.16 | 188,602,769.56 | | Basic Earnings Per Share | -0.02 | 0.160 | Consolidated Cash Flow Statement Year-to-Date As of September 2020, consolidated net cash flow from operating activities was RMB 149.06 million, a 55.66% year-on-year decrease, with significant reductions in both investing and financing cash inflows Consolidated Cash Flow Statement Key Items Year-to-Date (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 149,055,000.84 | 336,188,042.95 | | Subtotal Cash Inflows from Investing Activities | 6,384,716.28 | 28,226,011.26 | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 122,885,718.49 | 355,336,615.09 | | Cash Paid for Investments | - | 276,600,000.00 | | Net Cash Flow from Investing Activities | -146,583,230.16 | -603,710,603.83 | | Cash Received from Investments | 10,000.00 | 469,099,989.36 | | Cash Received from Borrowings | 659,049,566.64 | 879,010,000.00 | | Net Cash Flow from Financing Activities | -31,401,945.99 | 483,621,815.40 | | Net Increase in Cash and Cash Equivalents | -28,930,175.31 | 216,099,254.52 | Parent Company Cash Flow Statement Year-to-Date As of September 2020, parent company net cash flow from operating activities was -RMB 59.00 million, a narrower loss, with significant reductions in both investing and financing cash inflows Parent Company Cash Flow Statement Key Items Year-to-Date (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -59,001,738.53 | -85,260,751.76 | | Subtotal Cash Inflows from Investing Activities | 5,000,000.00 | 225,174,197.56 | | Net Cash Flow from Investing Activities | 5,000,000.00 | -58,455,329.99 | | Cash Received from Investments | - | 464,999,989.36 | | Cash Received from Borrowings | 250,000,000.00 | 50,000,000.00 | | Net Cash Flow from Financing Activities | 7,193,811.62 | 141,773,833.90 | | Net Increase in Cash and Cash Equivalents | -46,807,926.91 | -1,942,247.85 | Explanation of Financial Statement Adjustments The company adopted new revenue recognition standards from 2020, adjusting initial financial statements by reclassifying accounts receivable to contract assets and prepayments to contract liabilities, reflecting the impact of new accounting policies on revenue and contract obligations Adjustments for New Revenue and Lease Standards from 2020 Effective January 1, 2020, the company adjusted its consolidated and parent company balance sheets under new revenue standards, reclassifying RMB 234.50 million from accounts receivable to contract assets and RMB 31.88 million from prepayments to contract liabilities in the consolidated statement Consolidated Balance Sheet Adjustments (December 31, 2019 vs January 1, 2020) | Item | December 31, 2019 (RMB) | January 1, 2020 (RMB) | Adjustment (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 1,978,128,454.30 | 1,743,624,732.49 | -234,503,721.81 | | Contract Assets | - | 234,503,721.81 | 234,503,721.81 | | Prepayments Received | 31,878,284.05 | 0.00 | -31,878,284.05 | | Contract Liabilities | - | 31,878,284.05 | 31,878,284.05 | Parent Company Balance Sheet Adjustments (December 31, 2019 vs January 1, 2020) | Item | December 31, 2019 (RMB) | January 1, 2020 (RMB) | Adjustment (RMB) | | :--- | :--- | :--- | :--- | | Prepayments Received | 149,085.51 | 0.00 | -149,085.51 | | Contract Liabilities | - | 149,085.51 | 149,085.51 | Audit Report The company's 2020 third-quarter report is unaudited - The company's third-quarter report is unaudited[82]