Workflow
中公教育(002607) - 2022 Q1 - 季度财报
OFFCN EDUOFFCN EDU(SZ:002607)2022-04-28 16:00

Report Overview Important Notice The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities, while the company principal, head of accounting, and head of accounting department declare the financial information is true, accurate, and complete - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false statements, misleading representations, or material omissions, and assume individual and joint legal liabilities1 - The company principal, head of accounting, and head of accounting department declare that the financial information in the quarterly report is true, accurate, and complete1 Audit Status This first-quarter report has not been audited - The first-quarter report is unaudited117 Key Financial Data and Indicators Key Accounting Data and Financial Indicators In Q1 2022, operating revenue significantly decreased by 40.89% year-on-year, net profit attributable to shareholders turned from profit to loss, decreasing by 429.59%, with basic EPS of -0.08 yuan, while net cash flow from operating activities significantly improved, turning positive with a 342.74% increase, and total assets and owners' equity attributable to shareholders both declined Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (Yuan) | Prior Year (Yuan) | Year-on-Year Change (%) | | :--------------------------------------------------- | :----------------------- | :------------------- | :---------------------- | | Operating Revenue | 1,212,740,311.93 | 2,051,691,383.47 | -40.89% | | Net Profit Attributable to Shareholders | -463,824,594.93 | 140,729,639.84 | -429.59% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | -469,727,159.08 | 92,213,329.43 | -609.39% | | Net Cash Flow from Operating Activities | 598,889,061.73 | -246,724,873.67 | 342.74% | | Basic Earnings Per Share (Yuan/share) | -0.08 | 0.02 | -500.00% | | Diluted Earnings Per Share (Yuan/share) | -0.08 | 0.02 | -500.00% | | Weighted Average Return on Net Assets | -27.99% | 3.24% | -31.23% | Key Accounting Data and Financial Indicators (Period-end vs. Year-end) | Indicator | Period-end (Yuan) | Year-end (Yuan) | Change (%) | | :--------------------------------------- | :----------------- | :----------------- | :--------- | | Total Assets | 9,200,482,823.27 | 10,305,183,525.70 | -10.72% | | Owners' Equity Attributable to Shareholders | 1,424,994,159.27 | 1,888,818,754.20 | -24.56% | Non-recurring Gains and Losses Total non-recurring gains and losses for the period were 5.90 million yuan, primarily including government subsidies, gains/losses from entrusted investments, and fair value changes of financial assets Non-recurring Gains and Losses Items | Item | Current Period Amount (Yuan) | | :--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :--------------------------- | | Government subsidies included in current profit and loss (excluding those closely related to the company's normal operations, compliant with national policies, and continuously enjoyed at fixed or quantitative standards) | 1,220,048.81 | | Gains and losses from entrusted investments or asset management | 2,749,712.23 | | Gains and losses from changes in fair value of trading financial assets, trading financial liabilities, and investment income from disposal of trading financial assets, trading financial liabilities, and available-for-sale financial assets (excluding effective hedge accounting related to normal business operations) | 2,674,975.31 | | Other non-operating income and expenses apart from the above | -152,921.74 | | Less: Income tax impact | 589,250.46 | | Total | 5,902,564.15 | Analysis of Financial Data Changes The company's balance sheet, income statement, and cash flow statement show significant changes in key indicators, with monetary funds, trading financial assets, and short-term borrowings decreasing due to loan repayments and wealth management product redemptions, while contract liabilities and taxes payable increased due to seasonal collections and VAT accruals, and operating revenue declined significantly due to the pandemic, leading to a deterioration in profit and loss indicators, and operating cash flow turning positive despite increased investment and financing outflows Balance Sheet Item Changes Cash and cash equivalents and trading financial assets significantly decreased due to loan repayments and redemption of wealth management products, while short-term borrowings declined, and contract liabilities and taxes payable increased due to seasonal collections and VAT accruals Balance Sheet Item Changes | Balance Sheet Item | Period-end Amount (Yuan) | Period-start Amount (Yuan) | Change (%) | Explanation | | :----------------------- | :----------------------- | :------------------------- | :--------- | :------------------------------------------------------------------------------------------------------- | | Cash and Cash Equivalents | 1,129,779,804.27 | 1,970,361,272.64 | -42.66% | Primarily due to repayment of short-term borrowings in the current period | | Trading Financial Assets | 118,374,738.18 | 346,726,621.74 | -65.86% | Primarily due to redemption of matured wealth management products | | Other Current Assets | 22,946,171.86 | 36,959,129.80 | -37.91% | Primarily due to a decrease in unsettled payments in the current period | | Short-term Borrowings | 1,651,209,492.99 | 3,152,945,812.59 | -47.63% | Primarily due to repayment of short-term borrowings in the current period | | Contract Liabilities | 4,034,759,242.27 | 3,063,721,290.28 | 31.69% | Primarily due to increased seasonal collections for civil servant and postgraduate entrance examinations in Q1 2022 | | Taxes Payable | 28,432,694.84 | 12,566,751.84 | 126.25% | Primarily due to accrual of VAT and surcharges on Q1 2022 revenue | | Other Current Liabilities | 121,042,777.27 | 91,925,853.39 | 31.67% | Primarily due to an increase in contract liabilities balance at the end of Q1 2022 compared to the beginning of the year | - Cash and cash equivalents decreased by 42.66%, primarily due to repayment of short-term borrowings in the current period4 Income Statement Item Changes Operating revenue significantly decreased by 40.89% due to the pandemic, while taxes and surcharges and credit impairment losses significantly increased, and financial expenses, other income, and investment income substantially decreased, with income tax expense turning negative, reflecting a deterioration in the company's profitability Income Statement Item Changes | Income Statement Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | Explanation | | :---------------------- | :--------------------------- | :------------------------- | :--------- | :--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Operating Revenue | 1,212,740,311.93 | 2,051,691,383.47 | -40.89% | Primarily due to the impact of epidemic prevention and control, resulting in fewer in-person classes and delayed provincial joint examinations in Q1 2022 compared to the prior year | | Taxes and Surcharges | 8,798,438.13 | 3,125,104.09 | 181.54% | Primarily due to tax benefits enjoyed in the prior year | | Financial Expenses | 69,571,481.28 | 108,656,990.19 | -35.97% | Primarily due to reduced interest expenses on short-term borrowings in the current period | | Other Income | 8,268,197.61 | 60,454,036.43 | -86.32% | Primarily due to tax benefits included in other income in the prior year | | Investment Income | 2,755,592.22 | 32,350,483.88 | -91.48% | Primarily due to reduced income from redemption of wealth management products and time deposits | | Credit Impairment Losses | -1,005,625.25 | -239,123.84 | 320.55% | Primarily due to increased accounts receivable and higher bad debt provisions | | Income Tax Expense | -81,122,491.94 | 24,090,187.92 | -436.74% | Primarily due to accrual of deferred income tax assets in the current period | - Operating revenue declined by 40.89%, primarily due to the impact of epidemic prevention and control measures, leading to fewer in-person classes and delayed provincial examinations4 Cash Flow Statement Item Changes Cash inflow from operating activities increased due to deposit recovery, but cash outflows for purchasing goods, paying employee compensation, and taxes all significantly decreased, leading to a positive net cash flow from operating activities, while investment cash outflow decreased due to reduced wealth management product redemptions and land use right purchases, and financing cash outflow significantly decreased due to no new short-term borrowings and reduced housing lease payments Cash Flow Statement Item Changes | Cash Flow Statement Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | Explanation | | :--------------------------------------- | :--------------------------- | :------------------------- | :--------- | :--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Cash received from other operating activities | 22,063,195.70 | 8,365,632.60 | 163.74% | Primarily due to deposit recovery in the current period | | Cash paid for goods and services | 210,528,840.27 | 389,263,578.68 | -45.92% | Primarily due to the impact of the epidemic in multiple provinces and cities in the current quarter, resulting in fewer in-person classes and a corresponding reduction in operating costs | | Cash paid to and on behalf of employees | 1,224,818,887.78 | 1,788,537,241.10 | -31.52% | Primarily due to a reduction in company personnel and lower employee performance due to operating losses | | Taxes paid | 25,331,722.29 | 81,728,859.56 | -69.01% | Primarily due to no corporate income tax payment in the current quarter due to losses in Q4 of the prior year | | Cash received from investment redemption | 344,776,858.87 | 4,234,310,000.00 | -91.86% | Primarily due to reduced purchases of short-term wealth management products and corresponding reduction in redemptions in the current period | | Cash received from investment income | 2,764,585.77 | 11,192,589.09 | -75.30% | Primarily due to reduced purchases of wealth management products and corresponding reduction in wealth management income in the current period | | Cash paid for fixed, intangible, and other long-term assets | 8,768,861.04 | 2,774,248,578.57 | -99.68% | Primarily due to the purchase of land use rights in the prior year | | Cash paid for investments | 116,700,000.00 | 4,226,550,000.00 | -97.24% | Primarily due to reduced purchases of short-term wealth management products in the current period | | Cash received from borrowings | - | 2,670,000,000.00 | -100.00% | Primarily due to no new short-term borrowings in the current period | | Cash paid for dividends, profits, or interest | 26,787,416.64 | 46,324,162.51 | -42.17% | Primarily due to reduced interest expenses on short-term borrowings in the current period | | Cash paid for other financing activities | 134,755,697.06 | 354,129,507.17 | -61.95% | Primarily due to reduced housing lease payments in the current period | - Net cash flow from operating activities increased by 342.74%, primarily due to reduced operating costs from fewer in-person classes and lower employee compensation due to the pandemic and reduced performance4516 Shareholder Information Total Number of Common Shareholders and Top Ten Shareholders' Holdings As of the end of the reporting period, the company had 153,843 common shareholders, with the top three shareholders, Lu Zhongfang, Li Yongxin, and Wang Zhendong, collectively holding over 73% of shares, and all having significant portions of their shares pledged - The total number of common shareholders at the end of the reporting period was 153,8436 Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Share Status | Number (shares) | | :----------------------------------------- | :----------------- | :---------------------- | :----------------------------- | :---------------------------------------- | :----------- | :-------------- | | Lu Zhongfang | Domestic Natural Person | 41.36% | 2,550,549,260 | 2,550,549,260 | Pledged | 1,157,543,359 | | Li Yongxin | Domestic Natural Person | 18.35% | 1,131,415,121 | 1,131,070,121 | Pledged | 543,150,000 | | Wang Zhendong | Domestic Natural Person | 13.83% | 852,885,418 | 639,664,063 | Pledged | 328,193,884 | | Beijing Aerospace Industry Investment Fund (Limited Partnership) | Domestic Non-State-owned Legal Person | 3.24% | 199,611,483 | 0 | | | | Beijing Zhonggong Future Information Consulting Center (Limited Partnership) | Domestic Non-State-owned Legal Person | 1.30% | 80,000,000 | 0 | | | | Zhou Xiayun | Domestic Natural Person | 1.28% | 78,848,640 | 0 | Pledged | 69,000,000 | | Zhou Hui | Domestic Natural Person | 1.17% | 72,277,920 | 0 | Pledged | 26,490,000 | | Beijing Jirui Kechuang Investment Center (Limited Partnership) | Domestic Non-State-owned Legal Person | 1.04% | 64,100,323 | 0 | | | | Zhou Li | Domestic Natural Person | 0.78% | 48,185,280 | 0 | | | | Beijing Guangyin Venture Capital Center (Limited Partnership) | Domestic Non-State-owned Legal Person | 0.71% | 43,750,952 | 0 | | | Related Party Relationships and Concerted Action Explanation The company's controlling shareholder and actual controller, Lu Zhongfang and Li Yongxin, are mother and son, while Wang Zhendong and Wang Zhenhua are brothers, and Zhou Xiayun and Zhou Li are father and daughter, with the existence of related party relationships or concerted action among other shareholders remaining unknown - The company's controlling shareholder and actual controller, Lu Zhongfang and Li Yongxin, are mother and son6 - Wang Zhendong and Wang Zhenhua are brothers, and Zhou Xiayun and Zhou Li are father and daughter7 Other Significant Matters Overview of Q1 2022 Business Discussion In Q1 2022, the company faced severe pandemic challenges, leading to class suspensions and exam delays, impacting enrollment and revenue, but actively implemented an Amoeba management reform, reducing costs and expenses, resulting in a year-on-year decrease in total operating costs and improved cost control, and by adjusting product structure and reducing high-refund products, net operating cash flow turned positive quarter-on-quarter, with the company continuing prudent and stable operations, enhancing efficiency through internal optimization, product adjustments, and new business development - The persistent and escalating COVID-19 pandemic control measures created a more severe external operating environment in Q1 2022 compared to 2021, leading to phased class suspensions at hundreds of direct branches and delays in provincial civil service, national civil service interview, and public institution examinations, significantly disrupting enrollment and teaching8 - The company implemented an Amoeba management reform plan internally, striving to reduce costs and expenses, resulting in a year-on-year decrease in total operating costs and demonstrating effective lean cost control8 - By adjusting its product structure and continuously reducing high-refund products, the company's cash received from sales of goods and services remained largely flat year-on-year, and net operating cash flow turned positive quarter-on-quarter8 Progress of CSRC Investigation The company was investigated by the CSRC in December 2021 for alleged failure to disclose related party transactions, and in April 2022, the company and relevant parties received administrative penalty decisions, confirming the non-disclosure of 1.232 billion yuan in related party transactions in 2019 and 2020, representing 6.65% and 30.19% of the latest net assets, constituting a material omission, leading to rectification orders, warnings, and fines Background and Progress of Investigation The company was investigated by the China Securities Regulatory Commission in December 2021 for alleged failure to disclose related party transactions and received administrative penalty notices and decisions in April 2022 - On December 15, 2021, the company received a "Notice of Case Filing" from the China Securities Regulatory Commission (CSRC) (No. ZJLAZ0232021010), due to suspected violations in disclosing related party transactions9 - On April 24, 2022, the company and relevant parties received the "Advance Notice of Administrative Penalty", and on April 27, 2022, received the "Administrative Penalty Decision" issued by the Anhui Regulatory Bureau9 Determination of Related Party Transaction Disclosure Violations The administrative penalty decision found that Zhonggong Education and its subsidiaries failed to disclose 1.232 billion yuan in related party transactions with associated entities, constituting a material omission - The decision determined that Zhonggong Education and its subsidiaries Beijing Zhonggong, Zhongcheng Zhidi had undisclosed related party transactions totaling 1.232 billion yuan with related parties Shaanxi Guancheng, Beijing Chuangsheng, Shanghai Beiding, Ji'an Lixiangxue, and Liaoning Hanhui9 - These transactions amounted to 196.34 million yuan in 2019 and 1.036 billion yuan in 2020, accounting for 6.65% and 30.19% of Zhonggong Education's latest net assets, respectively9 - The company's failure to disclose these matters as required constituted a material omission9 Details of Related Party Transactions Undisclosed related party transactions primarily involved accepting entrusted decoration, accepting asset transfers from related parties, and purchasing products/goods from related parties, totaling 1.415 billion yuan between 2019 and 2021 Undisclosed Related Party Transaction Details | Related Party Transaction Category | Related Party | Transaction Content | 2019 Contract Amount (Yuan) | 2020 Contract Amount (Yuan) | 2021 Contract Amount (Yuan) | Total (Yuan) | | :-------------------------------- | :---------------------------------------------------------- | :------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :--------------- | | Accepting entrusted decoration | Beijing Chuangsheng Architectural Decoration Engineering Co., Ltd. | Decoration Fees | 161,747,000.00 | 242,000,000.00 | 0 | 403,747,000.00 | | Accepting asset transfer from related party | Shaanxi Guancheng Industrial Co., Ltd. | Asset Purchase | 0 | 383,060,000.00 | 0 | 383,060,000.00 | | Accepting asset transfer from related party | Liaoning Hanhui Industrial Co., Ltd. | Asset Purchase | 0 | 200,000,000.00 | 0 | 200,000,000.00 | | Purchasing products/goods from related party | Ji'an Jingkai District Lixiangxue Financial Information Service Co., Ltd. / Shanghai Beiding Network Technology Co., Ltd. | Service Fees | 34,588,038.03 | 210,728,611.86 | 183,144,220.00 | 428,460,869.89 | | Total | | | 196,335,038.03 | 1,035,788,611.86 | 183,144,220.00 | 1,415,267,869.89 | - On December 15, 2021, the company received a "Notice of Case Filing" from the China Securities Regulatory Commission (CSRC) due to suspected violations in disclosing related party transactions9 - On April 27, 2022, the company and relevant parties received the "Administrative Penalty Decision" from the Anhui Regulatory Bureau, which determined that Zhonggong Education and its subsidiaries had undisclosed related party transactions totaling 1.232 billion yuan, with 196.34 million yuan in 2019 and 1.036 billion yuan in 2020, representing 6.65% and 30.19% of the company's latest net assets, respectively, constituting a material omission9 - The company and relevant responsible persons were ordered to rectify, issued warnings, and fined9 Financial Statements Consolidated Balance Sheet As of March 31, 2022, total assets were 9.20 billion yuan, a 10.72% decrease from the beginning of the year, with total current assets at 1.53 billion yuan and total non-current assets at 7.67 billion yuan, while total liabilities were 7.78 billion yuan, including 7.30 billion yuan in current liabilities, and owners' equity attributable to the parent company was 1.42 billion yuan, a 24.56% decrease from the beginning of the year - As of March 31, 2022, the company's total assets were 9.20 billion yuan, a 10.72% decrease from the beginning of the year13 - Owners' equity attributable to the parent company was 1.42 billion yuan, a 24.56% decrease from the beginning of the year14 Consolidated Balance Sheet | Project | Period-end Balance (Yuan) | Year-start Balance (Yuan) | | :---------------------- | :------------------------ | :------------------------ | | Current Assets: | | | | Cash and Cash Equivalents | 1,129,779,804.27 | 1,970,361,272.64 | | Trading Financial Assets | 118,374,738.18 | 346,726,621.74 | | Accounts Receivable | 39,875,287.62 | 40,374,842.27 | | Other Receivables | 216,682,824.68 | 219,501,061.83 | | Other Current Assets | 22,946,171.86 | 36,959,129.80 | | Total Current Assets | 1,528,896,928.61 | 2,615,361,278.28 | | Non-current Assets: | | | | Debt Investments | 10,000,000.00 | 7,058,993.55 | | Long-term Equity Investments | 46,850,364.40 | 46,850,364.40 | | Investment Properties | 639,856,778.18 | 644,936,541.46 | | Fixed Assets | 1,745,084,201.78 | 1,770,372,338.85 | | Right-of-use Assets | 1,291,850,352.33 | 1,342,280,387.08 | | Intangible Assets | 859,956,886.83 | 866,627,549.85 | | Deferred Tax Assets | 505,810,798.69 | 424,027,271.38 | | Other Non-current Assets | 1,654,777,770.41 | 1,652,164,395.78 | | Total Non-current Assets | 7,671,585,894.66 | 7,689,822,247.42 | | Total Assets | 9,200,482,823.27 | 10,305,183,525.70 | | Current Liabilities: | | | | Short-term Borrowings | 1,651,209,492.99 | 3,152,945,812.59 | | Contract Liabilities | 4,034,759,242.27 | 3,063,721,290.28 | | Employee Compensation Payable | 357,995,173.17 | 422,886,856.60 | | Taxes Payable | 28,432,694.84 | 12,566,751.84 | | Non-current Liabilities Due Within One Year | 739,942,968.01 | 531,876,007.31 | | Other Current Liabilities | 121,042,777.27 | 91,925,853.39 | | Total Current Liabilities | 7,303,007,566.85 | 7,686,999,087.75 | | Non-current Liabilities: | | | | Lease Liabilities | 379,061,479.40 | 635,691,184.87 | | Deferred Tax Liabilities | 93,458,605.44 | 93,712,172.62 | | Total Non-current Liabilities | 472,520,084.84 | 729,403,357.49 | | Total Liabilities | 7,775,527,651.69 | 8,416,402,445.24 | | Owners' Equity: | | | | Share Capital | 103,807,623.00 | 103,807,623.00 | | Capital Reserve | 1,225,481,049.50 | 1,225,481,049.50 | | Retained Earnings | 37,505,486.77 | 501,330,081.70 | | Total Owners' Equity Attributable to Parent Company | 1,424,994,159.27 | 1,888,818,754.20 | | Total Owners' Equity | 1,424,955,171.58 | 1,888,781,080.46 | | Total Liabilities and Owners' Equity | 9,200,482,823.27 | 10,305,183,525.70 | Consolidated Income Statement In Q1 2022, total operating revenue was 1.21 billion yuan, a 40.89% year-on-year decrease, with total operating costs at 1.77 billion yuan, and the company turned from profit to loss, reporting a net profit of -463.83 million yuan, with net profit attributable to parent company owners of -463.82 million yuan, and basic EPS of -0.08 yuan - In Q1 2022, total operating revenue was 1.21 billion yuan, a 40.89% year-on-year decrease15 - Net profit was -463.83 million yuan, and net profit attributable to parent company owners was -463.82 million yuan15 - Basic earnings per share was -0.08 yuan16 Consolidated Income Statement | Project | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :----------------------------------------- | :--------------------------- | :------------------------- | | I. Total Operating Revenue | 1,212,740,311.93 | 2,051,691,383.47 | | Including: Operating Revenue | 1,212,740,311.93 | 2,051,691,383.47 | | II. Total Operating Costs | 1,770,228,930.90 | 1,979,436,277.98 | | Including: Operating Costs | 749,351,241.84 | 824,615,510.04 | | Taxes and Surcharges | 8,798,438.13 | 3,125,104.09 | | Selling Expenses | 396,015,900.26 | 435,647,726.75 | | Administrative Expenses | 320,087,116.49 | 340,240,393.35 | | Research and Development Expenses | 226,404,752.90 | 267,150,553.55 | | Financial Expenses | 69,571,481.28 | 108,656,990.19 | | Add: Other Income | 8,268,197.61 | 60,454,036.43 | | Investment Income (Losses indicated by "-") | 2,755,592.22 | 32,350,483.88 | | Gains from Changes in Fair Value (Losses indicated by "-") | 2,674,975.31 | 12,156.21 | | Credit Impairment Losses (Losses indicated by "-") | -1,005,625.25 | -239,123.84 | | III. Operating Profit (Loss indicated by "-") | -544,795,479.08 | 164,888,914.29 | | Less: Non-operating Expenses | 152,921.74 | 69,002.90 | | IV. Total Profit (Total Loss indicated by "-") | -544,948,400.82 | 164,819,911.39 | | Less: Income Tax Expense | -81,122,491.94 | 24,090,187.92 | | V. Net Profit (Net Loss indicated by "-") | -463,825,908.88 | 140,729,723.47 | | Net Profit Attributable to Parent Company Owners | -463,824,594.93 | 140,729,639.84 | | VII. Total Comprehensive Income | -463,825,908.88 | 140,729,723.47 | | Total Comprehensive Income Attributable to Parent Company Owners | -463,824,594.93 | 140,729,639.84 | | VIII. Earnings Per Share: | | | | (I) Basic Earnings Per Share | -0.08 | 0.02 | | (II) Diluted Earnings Per Share | -0.08 | 0.02 | Consolidated Cash Flow Statement In Q1 2022, net cash flow from operating activities was 598.89 million yuan, a significant improvement from -246.72 million yuan in the prior year, while net cash flow from investing activities was 222.07 million yuan, turning positive, and net cash flow from financing activities was -1.66 billion yuan, mainly due to no new short-term borrowings and debt repayment, resulting in a net increase in cash and cash equivalents of -840.58 million yuan - Net cash flow from operating activities was 598.89 million yuan, a significant improvement from -246.72 million yuan in the prior year16 - Net cash flow from investing activities was 222.07 million yuan, turning positive from -2.76 billion yuan in the prior year17 - Net cash flow from financing activities was -1.66 billion yuan, primarily due to no new short-term borrowings and debt repayment17 Consolidated Cash Flow Statement | Project | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :------------------------------------- | :--------------------------- | :------------------------- | | I. Cash Flows from Operating Activities: | | | | Cash received from sales of goods and services | 2,249,268,010.73 | 2,257,705,337.11 | | Cash received from other operating activities | 22,063,195.70 | 8,365,632.60 | | Subtotal of Cash Inflows from Operating Activities | 2,271,331,206.43 | 2,266,070,969.71 | | Cash paid for goods and services | 210,528,840.27 | 389,263,578.68 | | Cash paid to and on behalf of employees | 1,224,818,887.78 | 1,788,537,241.10 | | Taxes paid | 25,331,722.29 | 81,728,859.56 | | Cash paid for other operating activities | 211,762,694.36 | 253,266,164.04 | | Subtotal of Cash Outflows from Operating Activities | 1,672,442,144.70 | 2,512,795,843.38 | | Net Cash Flow from Operating Activities | 598,889,061.73 | -246,724,873.67 | | II. Cash Flows from Investing Activities: | | | | Cash received from investment redemption | 344,776,858.87 | 4,234,310,000.00 | | Cash received from investment income | 2,764,585.77 | 11,192,589.09 | | Subtotal of Cash Inflows from Investing Activities | 347,541,444.64 | 4,245,558,845.21 | | Cash paid for acquisition of fixed assets, intangible assets, and other long-term assets | 8,768,861.04 | 2,774,248,578.57 | | Cash paid for investments | 116,700,000.00 | 4,226,550,000.00 | | Subtotal of Cash Outflows from Investing Activities | 125,468,861.04 | 7,000,798,578.57 | | Net Cash Flow from Investing Activities | 222,072,583.60 | -2,755,239,733.36 | | III. Cash Flows from Financing Activities: | | | | Cash received from borrowings | | 2,670,000,000.00 | | Subtotal of Cash Inflows from Financing Activities | 0.00 | 2,670,000,000.00 | | Cash paid for debt repayment | 1,500,000,000.00 | 2,090,000,000.00 | | Cash paid for dividends, profits, or interest | 26,787,416.64 | 46,324,162.51 | | Cash paid for other financing activities | 134,755,697.06 | 354,129,507.17 | | Subtotal of Cash Outflows from Financing Activities | 1,661,543,113.70 | 2,490,453,669.68 | | Net Cash Flow from Financing Activities | -1,661,543,113.70 | 179,546,330.32 | | V. Net Increase in Cash and Cash Equivalents | -840,581,468.37 | -2,822,418,276.71 | | Add: Beginning Balance of Cash and Cash Equivalents | 1,969,806,009.56 | 5,950,395,089.12 | | VI. Ending Balance of Cash and Cash Equivalents | 1,129,224,541.19 | 3,127,976,812.41 |