世纪华通(002602) - 2021 Q3 - 季度财报

Report Overview This report provides an unaudited overview of Zhejiang Century Huatong Group Co., Ltd.'s third-quarter 2021 performance, with management assuring its accuracy Important Notes This report is Zhejiang Century Huatong Group Co., Ltd.'s unaudited third-quarter 2021 report, with the board, supervisory board, and senior management guaranteeing its truthfulness, accuracy, and completeness - This report is Zhejiang Century Huatong Group Co., Ltd.'s Q3 2021 report[1] - The report is unaudited[2] - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[2] Key Financial Data and Indicators This section details the company's key financial performance, including revenue, net profit, and cash flow, for the third quarter and year-to-date 2021 Key Accounting Data and Financial Indicators The company's Q3 2021 operating revenue decreased by 13.12% year-on-year, with net profit attributable to shareholders down 66.91%; year-to-date operating revenue decreased by 8.35%, but net profit attributable to shareholders increased by 11.58%; net cash flow from operating activities decreased by 46.20% 2021 Q3 and Year-to-Date Key Financial Indicators | Indicator | Current Period (CNY) | YoY Change | Year-to-Date (CNY) | YoY Change (YTD) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,476,456,054.16 | -13.12% | 10,785,984,774.83 | -8.35% | | Net Profit Attributable to Shareholders | 279,071,099.58 | -66.91% | 2,729,001,690.29 | 11.58% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 234,977,734.24 | -66.04% | 1,002,751,003.84 | -54.61% | | Net Cash Flow from Operating Activities | —— | —— | 1,022,894,311.85 | -46.20% | | Basic Earnings Per Share (CNY/share) | 0.04 | -67.38% | 0.37 | 8.82% | | Diluted Earnings Per Share (CNY/share) | 0.04 | -67.38% | 0.37 | 8.82% | | Weighted Average Return on Net Assets | 0.89% | -69.26% | 9.02% | -2.02% | | Balance Sheet (Period-end): | | | | | | Total Assets | 40,254,661,440.21 | -5.83% (vs. end of prior year) | | | | Total Equity Attributable to Shareholders | 31,566,959,798.27 | 9.16% (vs. end of prior year) | | | Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled CNY 44.09 million for the current quarter and CNY 1.73 billion year-to-date, primarily driven by non-current asset disposal gains of CNY 1.99 billion year-to-date from long-term equity investment disposals Non-recurring Gains and Losses Items and Amounts (Unit: CNY) | Item | Current Period Amount | Year-to-Date Amount | Notes | | :--- | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 40,307,898.71 | 1,994,949,121.31 | Mainly from disposal gains of long-term equity investments | | Government Grants Recognized in Current P&L | 30,537,487.46 | 83,845,844.05 | | | Fund Occupation Fees from Non-financial Enterprises Recognized in Current P&L | 4,377,650.91 | 13,922,169.47 | | | Fair Value Change Gains/Losses and Investment Income | 15,134,037.47 | 174,868,589.45 | | | Other Non-operating Income and Expenses | -3,771,389.64 | -7,764,080.37 | | | Less: Income Tax Impact | 14,933,009.94 | 482,701,365.79 | | | Impact on Minority Interests (After Tax) | 27,559,309.63 | 50,869,591.67 | | | Total | 44,093,365.34 | 1,726,250,686.45 | | - Non-current asset disposal gains were the primary contributor to year-to-date non-recurring gains and losses, reaching CNY 1.99 billion, mainly from long-term equity investment disposal gains[4] Analysis of Changes in Key Accounting Data and Financial Indicators Net profit attributable to shareholders (excluding non-recurring items) decreased by 54.61% year-on-year due to lower revenue, increased personnel costs from R&D projects, and higher marketing expenses for new games; net cash flow from operating activities decreased by 46.20% due to reduced operating profit - Net profit attributable to shareholders (excluding non-recurring items) decreased by 54.61% year-on-year[5] - Main reasons include: 1) Operating revenue decreased by 8% year-on-year, leading to a decline in profitability; 2) Increased personnel for game R&D projects led to higher labor costs; 3) Increased market advertising and promotion expenses for new game product launches[5] - Net cash flow from operating activities decreased by 46.20% year-on-year, primarily due to reduced operating profit[5] Shareholder Information This section provides details on the company's common shareholders, including total numbers, top ten holders, and related party relationships Common Shareholder Holdings and Top Ten Shareholders As of the reporting period end, the company had 136,090 common shareholders; top shareholders include Wang Ji (10.28%), Linzhi Tencent Technology Co., Ltd. (10.00%), and Shanghai Yaoquru Network Technology Partnership (Limited Partnership) (6.38%), with some major shareholders having pledged or frozen shares - Total common shareholders at the end of the reporting period were 136,090[6] Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Ji | Domestic Natural Person | 10.28% | 765,945,523 | 574,459,142 | Pledged | 721,977,993 | | | | | | | Frozen | 23,054,830 | | Linzhi Tencent Technology Co., Ltd. | Domestic Non-state-owned Legal Person | 10.00% | 745,255,696 | | | | | Shanghai Yaoquru Network Technology Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 6.38% | 475,813,861 | 475,813,861 | Pledged | 475,813,861 | | Shao Heng | Domestic Natural Person | 4.58% | 341,652,847 | 341,652,847 | Pledged | 307,261,311 | | | | | | | Frozen | 34,391,536 | | Shenzhen Overseas Chinese Town Capital Investment Management Co., Ltd. | State-owned Legal Person | 2.74% | 204,053,215 | 204,053,215 | | | | Shaoxing Shangyu Jiyunsheng Business Information Consulting Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.63% | 196,057,127 | 148,539,578 | Pledged | 196,057,126 | | Shanghai Daoying Investment Management Center (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.59% | 192,867,807 | | | | | Ningbo Qudian Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.27% | 169,127,321 | | | | | Shaoxing Shangyu Jiren Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.01% | 149,886,298 | 149,886,298 | | | | Shaoxing Shangyu Yicheng Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.01% | 149,886,298 | 149,886,298 | | | Top Ten Shareholders with Unrestricted Shares Linzhi Tencent Technology Co., Ltd. is the largest unrestricted shareholder with 745.26 million shares, and the company's share repurchase account holds 97.43 million shares Top Ten Shareholders with Unrestricted Shares (Unit: shares) | Shareholder Name | Number of Unrestricted Shares Held | Share Type | | :--- | :--- | :--- | | Linzhi Tencent Technology Co., Ltd. | 745,255,696 | RMB Common Stock | | Shanghai Daoying Investment Management Center (Limited Partnership) | 192,867,807 | RMB Common Stock | | Wang Ji | 191,486,381 | RMB Common Stock | | Ningbo Qudian Enterprise Management Consulting Partnership (Limited Partnership) | 169,127,321 | RMB Common Stock | | Hong Kong Securities Clearing Company Limited | 110,199,087 | RMB Common Stock | | Zhejiang Century Huatong Group Co., Ltd. Repurchase Special Securities Account | 97,434,120 | RMB Common Stock | | Zhejiang Huatong Holdings Group Co., Ltd. | 96,336,067 | RMB Common Stock | | Shanghai Huacan Equity Investment Fund Partnership (Limited Partnership) | 94,993,330 | RMB Common Stock | | Yongfeng International Group (Hong Kong) Co., Ltd. | 81,518,103 | RMB Common Stock | | National Social Security Fund 504 Portfolio | 73,054,884 | RMB Common Stock | Explanation of Shareholder Related Party Relationships Mr. Wang Ji is the actual controller of Shaoxing Shangyu Jiyunsheng Business Information Consulting Partnership (Limited Partnership) and Shaoxing Shangyu Jiren Enterprise Management Consulting Partnership (Limited Partnership); Mr. Wang Miaotong is the actual controller of Zhejiang Huatong Holdings Group Co., Ltd. and Shanghai Yaoquru Network Technology Partnership (Limited Partnership) - Mr. Wang Ji is the actual controller of Shaoxing Shangyu Jiyunsheng Business Information Consulting Partnership (Limited Partnership) and Shaoxing Shangyu Jiren Enterprise Management Consulting Partnership (Limited Partnership)[8] - Mr. Wang Miaotong is the actual controller of Zhejiang Huatong Holdings Group Co., Ltd. and Shanghai Yaoquru Network Technology Partnership (Limited Partnership)[8] Other Important Matters The company has no other important matters to disclose in this reporting period - The company has no other important matters[9] Quarterly Financial Statements This section presents the company's consolidated financial statements, including the balance sheet, income statement, and cash flow statement, along with explanations for any adjustments Financial Statements This section includes the company's consolidated balance sheet, consolidated year-to-date income statement, and consolidated year-to-date cash flow statement, reflecting its financial position, operating results, and cash flows as of September 30, 2021 Consolidated Balance Sheet As of September 30, 2021, total assets were CNY 40.25 billion, a 5.83% decrease from the end of the prior year; total equity attributable to shareholders was CNY 31.57 billion, a 9.16% increase; goodwill remains the largest component of non-current assets but decreased from the prior year-end Consolidated Balance Sheet Key Items (Unit: CNY) | Item | September 30, 2021 | December 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 3,049,007,738.55 | 3,708,091,682.13 | -17.77% | | Financial Assets Held for Trading | 408,408,871.96 | 177,942,151.18 | +129.52% | | Other Receivables | 1,003,824,027.30 | 1,972,222,593.87 | -49.10% | | Total Current Assets | 9,899,766,108.33 | 11,151,107,203.28 | -11.13% | | Long-term Equity Investments | 2,883,751,109.03 | 2,516,433,994.49 | +14.60% | | Other Non-current Financial Assets | 5,869,599,878.87 | 1,576,644,432.40 | +272.30% | | Goodwill | 16,530,351,747.16 | 22,050,368,374.95 | -25.04% | | Total Non-current Assets | 30,354,895,331.88 | 31,595,727,374.31 | -3.93% | | Total Assets | 40,254,661,440.21 | 42,746,834,577.59 | -5.83% | | Short-term Borrowings | 761,419,667.50 | 652,207,728.66 | +16.74% | | Other Payables | 776,203,438.87 | 1,587,022,168.70 | -51.09% | | Non-current Liabilities Due Within One Year | 2,574,317,781.09 | 3,244,601,751.12 | -20.66% | | Total Current Liabilities | 7,060,888,013.27 | 8,490,482,346.25 | -16.84% | | Long-term Borrowings | 16,034,850.00 | 4,019,735,200.00 | -99.60% | | Total Non-current Liabilities | 962,814,714.89 | 4,308,437,499.18 | -77.65% | | Total Liabilities | 8,023,702,728.16 | 12,798,919,845.43 | -37.31% | | Total Equity Attributable to Parent Company Shareholders | 31,566,959,798.27 | 28,918,874,828.18 | +9.16% | | Total Equity | 32,230,958,712.05 | 29,947,914,732.16 | +7.63% | - Goodwill remains the largest component of the company's non-current assets, but decreased by 25.04% from the end of the prior year[12] - Long-term borrowings significantly decreased by 99.60%, leading to a substantial decline in total non-current liabilities[12] Consolidated Year-to-Date Income Statement Year-to-date, total operating revenue decreased by 8.35% to CNY 10.79 billion; operating profit increased by 32.18% to CNY 3.74 billion; net profit increased by 17.97% to CNY 2.91 billion; net profit attributable to parent company shareholders increased by 11.58% to CNY 2.73 billion; both selling and R&D expenses saw significant increases Consolidated Year-to-Date Income Statement Key Items (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 10,785,984,774.83 | 11,769,278,408.57 | -8.35% | | Operating Costs | 4,682,125,637.81 | 5,589,156,115.70 | -16.23% | | Selling Expenses | 2,392,183,348.39 | 1,808,347,820.37 | +32.28% | | Administrative Expenses | 1,042,538,277.25 | 562,925,422.62 | +85.19% | | R&D Expenses | 1,349,001,898.86 | 1,027,486,187.40 | +31.30% | | Investment Income | 2,524,618,509.57 | 261,653,677.87 | +864.80% | | Gains from Changes in Fair Value | 145,264,818.72 | -2,264,789.69 | From negative to positive | | Operating Profit | 3,741,358,330.92 | 2,831,996,249.89 | +32.18% | | Total Profit | 3,733,352,001.97 | 2,855,284,688.78 | +30.75% | | Income Tax Expense | 823,075,758.25 | 388,317,201.89 | +111.96% | | Net Profit | 2,910,276,243.72 | 2,466,967,486.89 | +17.97% | | Net Profit Attributable to Parent Company Shareholders | 2,729,001,690.29 | 2,445,846,879.63 | +11.58% | | Minority Interests | 181,274,553.43 | 21,120,607.26 | +758.38% | | Basic Earnings Per Share (CNY) | 0.37 | 0.34 | +8.82% | - Investment income significantly increased by 864.80%, serving as a major driver of profit growth[15] - Selling expenses and administrative expenses increased by 32.28% and 85.19% respectively, while R&D expenses increased by 31.30%, reflecting increased company investment in market promotion, operations, and R&D[15] Consolidated Year-to-Date Cash Flow Statement Year-to-date, net cash flow from operating activities was CNY 1.02 billion, a 46.20% year-on-year decrease; net cash flow from investing activities was negative CNY 922.86 million, a significant narrowing of outflow from the prior year; net cash flow from financing activities was negative CNY 643.45 million, shifting from a net inflow to a net outflow Consolidated Year-to-Date Cash Flow Statement Key Items (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | Change | | :--- | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 10,950,082,786.38 | 11,319,028,294.60 | -3.26% | | Subtotal of Cash Outflows from Operating Activities | 9,927,188,474.53 | 9,417,778,687.60 | +5.41% | | Net Cash Flow from Operating Activities | 1,022,894,311.85 | 1,901,249,607.00 | -46.20% | | Subtotal of Cash Inflows from Investing Activities | 3,016,231,580.04 | 2,978,617,661.83 | +1.26% | | Subtotal of Cash Outflows from Investing Activities | 3,939,086,968.65 | 10,777,652,205.96 | -63.45% | | Net Cash Flow from Investing Activities | -922,855,388.61 | -7,799,034,544.13 | Shifted from significant outflow to minor outflow | | Subtotal of Cash Inflows from Financing Activities | 941,007,424.17 | 7,495,545,644.43 | -87.44% | | Subtotal of Cash Outflows from Financing Activities | 1,584,456,823.77 | 553,334,089.44 | +186.35% | | Net Cash Flow from Financing Activities | -643,449,399.60 | 6,942,211,554.99 | Shifted from net inflow to net outflow | | Net Increase in Cash and Cash Equivalents | -552,778,396.09 | 1,033,623,275.32 | Shifted from net increase to net decrease | - Cash outflow from investing activities significantly decreased, mainly due to a substantial reduction in cash paid for acquiring subsidiaries and other business units[18] - Cash inflow from financing activities significantly decreased, while cash paid for debt repayment and distribution of dividends, profits, or interest increased, leading to a shift in net cash flow from financing activities from positive to negative[18] Explanation of Financial Statement Adjustments The company adopted new leasing standards starting in 2021, leading to adjustments in the opening financial statements for January 1, 2021, primarily affecting right-of-use assets and lease liabilities New Leasing Standards Adjustment Explanation The initial adoption of new leasing standards resulted in a CNY 386.78 million increase in both total assets and total liabilities as of January 1, 2021, primarily due to new right-of-use assets of CNY 397.37 million and lease liabilities of CNY 291.42 million, with corresponding adjustments to other accounts - The company began implementing new leasing standards in 2021[19] Impact of New Leasing Standards Adjustments on Opening Balance Sheet (Unit: CNY) | Item | December 31, 2020 | January 1, 2021 | Adjustment Amount | | :--- | :--- | :--- | :--- | | Prepayments | 160,425,098.70 | 150,671,926.45 | -9,753,172.25 | | Other Current Assets | 212,911,898.74 | 212,190,454.86 | -721,443.88 | | Total Current Assets | 11,151,107,203.28 | 11,140,632,587.15 | -10,474,616.13 | | Right-of-Use Assets | | 397,367,517.16 | 397,367,517.16 | | Long-term Deferred Expenses | 431,639,633.99 | 431,521,776.81 | -117,857.18 | | Total Non-current Assets | 31,595,727,374.31 | 31,992,977,034.29 | 397,249,659.98 | | Total Assets | 42,746,834,577.59 | 43,133,609,621.44 | 386,775,043.85 | | Other Payables | 1,587,022,168.70 | 1,580,053,909.88 | -6,968,258.82 | | Non-current Liabilities Due Within One Year | 3,244,601,751.12 | 3,346,921,336.23 | 102,319,585.11 | | Total Current Liabilities | 8,490,482,346.25 | 8,585,833,672.54 | 95,351,326.29 | | Lease Liabilities | | 291,423,717.56 | 291,423,717.56 | | Total Non-current Liabilities | 4,308,437,499.18 | 4,599,861,216.74 | 291,423,717.56 | | Total Liabilities | 12,798,919,845.43 | 13,185,694,889.28 | 386,775,043.85 | Audit Report The company's 2021 third-quarter report is unaudited - The company's third-quarter report is unaudited[23]