SSI(SZ:002742)2020-10-22 16:00Financial Performance - Operating revenue for the reporting period was CNY 708,821,299.62, a decrease of 1.68% year-on-year, while year-to-date revenue fell by 16.68% to CNY 1,839,114,496.46[7] - Net profit attributable to shareholders decreased by 57.30% to CNY 2,129,346.74 for the reporting period, and year-to-date net profit decreased by 40.98% to CNY 47,801,178.82[7] - Basic earnings per share dropped by 56.52% to CNY 0.0050, with diluted earnings per share showing the same decline[7] - The total operating revenue for the third quarter was CNY 320,570,948.97, a decrease of 15% compared to CNY 377,054,296.51 in the same period last year[44] - The net profit for the third quarter was CNY 10,510,040.61, compared to CNY 5,163,044.75 in the previous year, representing a year-over-year increase of 103%[42] - The total profit for the third quarter was CNY 15,542,620.77, compared to CNY 6,279,263.96 in the same period last year, showing an increase of 147%[41] Cash Flow - Net cash flow from operating activities was negative at CNY -42,575,575.13, a decline of 322.25% compared to the previous period[7] - The company experienced a decrease in cash flow from operating activities, indicating potential challenges in revenue generation[58] - Cash flow from operating activities for Q3 2020 was CNY -75.39 million, compared to CNY 74.46 million in Q3 2019, indicating a significant decline[53] - Cash flow from investing activities showed a net outflow of CNY 71,689,797.98, a decrease from a net inflow of CNY 118,367,027.64 in the previous year[58] - Cash flow from financing activities generated a net inflow of CNY 145,422,220.75, compared to a net outflow of CNY 111,957,076.81 in the same period last year[58] Assets and Liabilities - Total assets decreased by 5.76% to CNY 4,735,658,361.22 compared to the end of the previous year[7] - Total liabilities decreased to CNY 2,947,642,559.89 from CNY 3,218,181,891.86, a decline of about 8.4%[33] - Current liabilities decreased to CNY 2,544,686,508.68 from CNY 3,044,873,646.32, a reduction of approximately 16.4%[33] - Long-term borrowings increased significantly to CNY 365,300,000.00 from CNY 68,000,000.00, marking an increase of over 436%[33] - The company reported a total asset value of CNY 5,025,238,817.68 as of the end of the reporting period[61] Investments and Acquisitions - The subsidiary, Chongqing Yubei Sansheng Building Materials Co., Ltd., acquired a state-owned land use right of 95,282 square meters to build a green circular building materials industrial base, enhancing the company's competitive edge[16] - The company has ongoing investments in fixed assets amounting to CNY 1,336,314,178.83, which is a decrease from CNY 1,450,795,964.48[32] Shareholder Information - The company plans to issue up to 12,960,000 A-shares through a private placement, not exceeding 30% of the total share capital prior to the issuance[17] - The largest shareholder, Mr. Pan Xianwen, has pledged 98.88% of his shares, which constitutes 41.13% of the company's total share capital[18] - As of October 17, 2020, the largest shareholder has reduced his holdings by 33,600,000 shares, accounting for 7.78% of the total share capital[18] Government Support and Subsidies - The company reported a significant increase in government subsidies, with other income rising by 77.33% to CNY 8,265,089.26[15] Risk Factors - The company faces a risk of not obtaining the renewal of its gypsum mining license, which could lead to increased production costs if gypsum needs to be purchased externally[16] Research and Development - Research and development expenses were CNY 9,040,010.78, slightly up from CNY 8,508,394.18, reflecting a 6.2% increase year-over-year[41] - Research and development expenses decreased to CNY 21.87 million in Q3 2020 from CNY 24.99 million in Q3 2019, a reduction of 12.5%[48]