SSI(SZ:002742)2021-10-22 16:00Financial Performance - The company's revenue for Q3 2021 was ¥569,396,259.96, a decrease of 19.67% compared to the same period last year[3]. - The net profit attributable to shareholders was -¥26,937,583.85, representing a significant decline of 1,365.06% year-on-year[3]. - The basic earnings per share were -¥0.0623, reflecting a decline of 1,346.17% compared to the same period last year[3]. - Total operating revenue for Q3 2021 was CNY 1,789,651,999.87, a decrease of 2.7% compared to CNY 1,839,114,496.46 in the same period last year[22]. - Net profit for Q3 2021 was a loss of CNY 20,787,859.47, compared to a profit of CNY 67,775,680.76 in Q3 2020, marking a significant decline[23]. - The company reported a basic and diluted earnings per share of -0.0994, a decline from 0.1107 in the same quarter last year[24]. - Other comprehensive income after tax was a loss of CNY 57,255,975.16, compared to a loss of CNY 69,867,194.08 in the previous year[23]. Cash Flow and Assets - The net cash flow from operating activities was -¥25,165,735.87, down 66.62% year-to-date[3]. - The cash flow from operating activities was CNY 1,481,304,876.44, compared to CNY 1,674,913,996.86 in the previous period[26]. - The net cash flow from operating activities for Q3 2021 was -25,165,735.87 CNY, an improvement from -75,391,345.76 CNY in Q3 2020[27]. - Total assets at the end of the reporting period were ¥4,318,229,013.65, a decrease of 11.47% from the previous year[4]. - The company's total assets decreased to CNY 4,318,229,013.65 from CNY 4,877,608,615.06, reflecting a reduction of approximately 11.5%[20]. - The ending balance of cash and cash equivalents was 32,937,767.53 CNY, a decrease from 93,973,708.20 CNY at the end of Q3 2020[28]. - The company experienced a 32.82% decrease in cash and cash equivalents, totaling ¥232,230,745.89, primarily due to concentrated payments during the Spring Festival[8]. - As of September 30, 2021, the company's cash and cash equivalents decreased to ¥232,230,745.89 from ¥345,678,809.61 at the end of 2020, representing a decline of approximately 32.7%[18]. Liabilities and Equity - Total liabilities decreased to CNY 2,649,485,900.54, down from CNY 3,121,460,928.61, indicating a reduction of about 15.1%[20]. - The total equity attributable to shareholders decreased by 5.48% to ¥1,432,837,177.18[4]. - The company has pledged 100% of its equity in Liaoyuan Baikang Pharmaceutical Co., Ltd. for loans totaling ¥66,961,511.27, with the last loan due on November 22, 2021[15]. - The company has also pledged 72% of its equity in Chongqing Chunrui Pharmaceutical Chemical Co., Ltd. for loans totaling ¥409,000,000.00, with the last loan due on May 20, 2023[15]. - The first major shareholder, Mr. Pan Xianwen, has pledged 165,934,132 shares, which is 97.69% of his holdings, and 35,036,472 shares are frozen, accounting for 20.63% of his total shares[14]. - The actual controller and his associates have cumulatively reduced their holdings by 78,197,572 shares, which is 18.10% of the total share capital[14]. Operational Changes and Future Outlook - The company expects to obtain the gypsum mining license and resume mining operations by the end of 2021, following the approval from the Chongqing Municipal Government[13]. - The company is actively communicating with government departments to restore its gypsum mining rights, which have been suspended since July 2018 due to regulatory restrictions[12]. - The company has undergone changes in its board of directors and supervisory board, with several resignations and new appointments made in September 2021[14]. Expenses - The company reported a significant increase in sales expenses, which rose by 54.95% to ¥18,894,744.14, aimed at maintaining sales volume[8]. - Total operating costs increased to CNY 1,842,094,776.80, up 4.2% from CNY 1,768,551,127.11 year-on-year[22]. - Research and development expenses for the quarter were CNY 20,996,221.29, slightly down from CNY 21,867,690.38 year-on-year[22]. Investment Activities - Cash inflow from investment activities was 239,940,174.00 CNY, significantly higher than 15,401,820.00 CNY in the same period last year[27]. - The net cash flow from investment activities was 77,789,019.63 CNY, compared to -64,306,350.45 CNY in Q3 2020[27].