华宏科技(002645) - 2022 Q3 - 季度财报

Key Financial Data Key Accounting Data and Financial Indicators YTD operating revenue grew 33.58%, but Q3 net profit attributable to shareholders fell sharply by 89.43% Key Financial Indicators for Q3 2022 and Year-to-Date | Indicator | Current Period (Q3) | YoY Change | Year-to-Date (YTD) | YTD YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,887,409,919.40 | 8.25% | 6,546,292,068.70 | 33.58% | | Net Profit Attributable to Shareholders (RMB) | 14,160,120.34 | -89.43% | 401,862,561.07 | 2.89% | | Net Profit Attributable to Shareholders (Non-recurring Items Excluded) (RMB) | -26,346,635.59 | -120.62% | 330,016,032.83 | -10.27% | | Net Cash Flow from Operating Activities (RMB) | — | — | -66,321,358.59 | -122.78% | | Basic Earnings Per Share (RMB/Share) | 0.0243 | -89.43% | 0.6905 | 2.72% | | Total Assets (RMB) | 5,890,574,946.16 | 14.13% (vs. End of Prior Year) | 5,890,574,946.16 | 14.13% (vs. End of Prior Year) | | Equity Attributable to Shareholders (RMB) | 3,879,234,039.76 | 11.27% (vs. End of Prior Year) | 3,879,234,039.76 | 11.27% (vs. End of Prior Year) | Non-recurring Profit and Loss Items and Amounts YTD non-recurring profit and loss totaled RMB 71.85 million, primarily driven by government subsidies YTD 2022 Non-recurring Profit and Loss Items | Item | YTD Amount (RMB) | | :--- | :--- | | Government Subsidies Recognized in Current Profit or Loss | 82,305,301.29 | | Other Non-operating Income and Expenses | 3,719,011.60 | | Gains/Losses on Disposal of Non-current Assets | 493,385.65 | | Total | 71,846,528.24 | Analysis of Changes in Key Financial Indicators Significant financial indicator changes were driven by business expansion, leading to revenue growth but declining profitability - Operating revenue increased by 33.58% YoY, driven by the continued growth of the rare earth recycling and comprehensive utilization business[10] - Operating cost grew by 40.09% YoY, outpacing revenue growth, primarily due to increased business volume[12] - Impairment losses on assets surged by 678.17% YoY, mainly from increased provisions for inventory write-downs[12] - Financial expenses rose significantly by 249.82% YoY due to higher interest expenses from increased financing for business expansion[12] - Net cash flow from operating activities decreased by 122.78% YoY, turning negative due to increased cash payments for goods and services as business scaled[12] - Construction in progress increased by 98.41% YoY, mainly due to the construction phase of subsidiary Ganzhou Huazhuo and expansion projects of the parent company and Beijing Huahong[10] - Short-term and long-term borrowings surged by 156.61% and 2193.33% respectively, reflecting a substantial increase in bank financing to support business expansion[10] Shareholder Information Common Stock Shareholder Information The company had 24,890 common shareholders, with the largest shareholder's entire 34.52% stake pledged - Total number of common stock shareholders was 24,890 at the end of the reporting period[13] Top Five Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | | :--- | :--- | :--- | | Jiangsu Huahong Industrial Group Co., Ltd. | Domestic Non-State-Owned Legal Entity | 34.52% | | Zhou Jingcheng | Domestic Natural Person | 6.87% | | Zibo Qinying Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Entity | 5.00% | | Hu Shiyong | Domestic Natural Person | 3.47% | | Zhou Shijie | Domestic Natural Person | 2.33% | - The largest shareholder, Jiangsu Huahong Industrial Group Co., Ltd., has pledged all of its 200,884,632 shares[13] - The actual controllers of the company are the four brothers: Hu Shiyong, Hu Shiqing, Hu Shifa, and Hu Shiqin[16] Preferred Stock Shareholder Information The company had no preferred stock shareholders during the reporting period Other Important Matters The company received approval for a public offering of convertible bonds and plans a RMB 250 million investment in a new project - The company's application for a public offering of convertible corporate bonds was approved by the CSRC on June 8, 2022[17][21] - The company plans to invest RMB 250 million to build a "4,000-ton annual capacity high-performance magnetic materials project" through a new wholly-owned subsidiary[21] Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2022, total assets and liabilities grew due to business expansion and related financing activities Key Balance Sheet Items | Item | Sep 30, 2022 (RMB) | Jan 1, 2022 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,890,574,946.16 | 5,161,188,431.08 | +14.13% | | Total Liabilities | 1,894,313,131.66 | 1,562,473,152.50 | +21.24% | | Equity Attributable to Parent Company | 3,879,234,039.76 | 3,486,432,122.75 | +11.27% | Consolidated Income Statement For the first three quarters of 2022, strong revenue growth was offset by higher costs, resulting in minimal profit growth Key Income Statement Items (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 6,546,292,068.70 | 4,900,627,291.45 | +33.58% | | Total Operating Cost | 6,260,917,111.73 | 4,521,774,622.58 | +38.46% | | Net Profit Attributable to Parent Company Shareholders | 401,862,561.07 | 390,570,922.88 | +2.89% | | Basic Earnings Per Share | 0.6905 | 0.6722 | +2.72% | Consolidated Cash Flow Statement YTD operating cash flow turned negative, while financing cash flow surged to support business expansion Key Cash Flow Statement Items (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -66,321,358.59 | 291,202,443.62 | -122.78% | | Net Cash Flow from Investing Activities | -312,268,612.37 | -270,937,921.55 | -15.25% | | Net Cash Flow from Financing Activities | 411,710,333.48 | 20,642,785.07 | +1894.45% | | Cash and Cash Equivalents at End of Period | 379,102,620.08 | 337,060,189.13 | +12.47% | Audit Report The company's third-quarter 2022 report is unaudited - The third quarter report has not been audited[40]