华统股份(002840) - 2019 Q3 - 季度财报

Important Notice Management Statement The company's management guarantees the truthfulness and completeness of the quarterly report, with all directors attending the review meeting - Management declares the financial statements in the quarterly report are true, accurate, and complete[5] - All directors attended the board meeting reviewing this quarterly report[5] Company Profile Key Accounting Data and Financial Indicators The company experienced significant revenue growth but a decline in net profit and negative operating cash flow, with prior year data adjusted for accounting policy changes Key Financial Indicators for Q1-Q3 2019 | Indicator | Year-to-Date (2019) | Prior Year Period (2018) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 5,394,086,369.48 | 3,671,042,539.93 | 46.94% | | Net Profit Attributable to Shareholders (CNY) | 89,663,188.95 | 98,828,897.02 | -9.27% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | 58,892,450.57 | 67,098,644.66 | -12.23% | | Net Cash Flow from Operating Activities (CNY) | -52,968,721.83 | 52,155,360.28 | -201.56% | | Basic Earnings Per Share (CNY/share) | 0.33 | 0.37 | -10.81% | | Weighted Average Return on Net Assets | 6.57% | 8.15% | -1.58% | Asset Status at Period End | Indicator | Current Period End (2019-09-30) | Prior Year End (2018-12-31) | Change | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 2,746,106,410.70 | 2,175,629,248.29 | 26.22% | | Net Assets Attributable to Shareholders (CNY) | 1,426,451,793.99 | 1,297,867,905.04 | 9.91% | - From the beginning of the year to the end of the reporting period, non-recurring gains and losses totaled CNY 30.77 million, primarily comprising government subsidies of CNY 27.25 million[13] Shareholder Information The company had 13,381 shareholders, with the controlling shareholder holding 41.46% of shares, and some top shareholders having related party relationships Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Huatong Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 41.46% | 115,000,378 | | Jiatong Enterprise Co., Ltd. | Overseas Legal Person | 9.08% | 25,191,253 | | Wens (Shenzhen) Equity Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.23% | 8,962,331 | | Yiwu Huachen Investment Consulting Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.86% | 7,945,632 | | ContiFeed (China) Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.83% | 7,862,931 | - Controlling shareholder Huatong Group Co., Ltd. has a related party relationship with the fourth largest shareholder Yiwu Huachen Investment Consulting Co., Ltd. ContiFeed (China) Co., Ltd. and ContiFeed Additives (Beijing) Co., Ltd. are under common control[17] Significant Matters Analysis of Changes in Key Financial Data Significant changes in financial indicators include increased inventory and prepayments, a surge in short-term borrowings, revenue growth offset by rising costs, and negative operating cash flow due to inventory increases Balance Sheet Key Item Changes and Reasons | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | Prepayments | 536.24% | Increase in advance payments for goods in the current period | | Inventory | 159.63% | Increase in product inventory in the current period | | Short-term Borrowings | 203.33% | Increase in bank borrowings in the current period | | Other Payables | 170.82% | Receipt of employee equity incentive restricted stock subscription funds | Income Statement Key Item Changes and Reasons | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 46.94% | Increase in sales price of fresh pork products | | Operating Cost | 47.07% | Increase in purchase price of live hogs and fresh pork | | Administrative Expenses | 86.70% | Recognition of equity incentive expenses in the current period | | Financial Expenses | 200.39% | Increase in bank borrowings in the current period | Cash Flow Statement Key Item Changes and Reasons | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -201.56% | Increase in product inventory in the current period | | Net Cash Flow from Investing Activities | -32.39% | Increase in new subsidiary acquisitions and subsidiary project investments in the current period | | Net Cash Flow from Financing Activities | 34.22% | Increase in bank borrowings and receipt of employee equity incentive subscription funds in the current period | Progress of Major Investment Projects The company is advancing integrated hog industry chain projects in multiple locations, expected to boost output by 2020, and has a strategic partnership with Wens Foodstuff Group - The first phase of the Jiangsu Xinghua integrated hog industry chain project (total investment approximately CNY 2 billion) is under construction, with the breeding farm expected to be operational by H1 2020, capable of producing about 200,000 commercial hogs annually[28] - The Zhejiang Xianju Huatong Agricultural Complex project (total investment CNY 350 million) is under construction, with the breeding farm expected to be operational by the end of 2019[31] - In March 2019, the company signed a Strategic Cooperation Framework Agreement with Wens Foodstuff Group Co., Ltd., establishing a strategic partnership for hog breeding and slaughtering businesses[33] Investor Relations Activities The company hosted an institutional site visit on September 20, 2019, with details disclosed on the SZSE Interactive Easy platform - The company hosted an institutional investor site visit on September 20, 2019[43] Financial Statements Consolidated Balance Sheet As of September 30, 2019, total assets increased by 26.22%, total liabilities surged by 54.53% due to short-term borrowings, and equity attributable to owners of the parent company grew by 9.91% Consolidated Balance Sheet Key Items (Unit: CNY) | Item | September 30, 2019 | December 31, 2018 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,746,106,410.70 | 2,175,629,248.29 | 26.22% | | Total Liabilities | 1,138,055,811.68 | 736,479,089.94 | 54.53% | | Total Equity Attributable to Owners of Parent Company | 1,426,451,793.99 | 1,297,867,905.04 | 9.91% | | Total Equity | 1,608,050,599.02 | 1,439,150,158.35 | 11.74% | Consolidated Income Statement Q1-Q3 2019 saw operating revenue grow by 46.94% to CNY 5.39 billion, but net profit attributable to owners of the parent company declined by 9.27% due to rising costs Consolidated Income Statement - Q3 2019 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,019,617,167.91 | 1,267,589,798.91 | 59.33% | | Operating Profit | 16,614,419.40 | 24,733,777.42 | -32.83% | | Net Profit Attributable to Owners of Parent Company | 15,341,212.96 | 25,822,589.93 | -40.59% | Consolidated Income Statement - Year-to-Date Q3 2019 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,394,086,369.48 | 3,671,042,539.93 | 46.94% | | Operating Profit | 111,699,629.28 | 105,177,667.82 | 6.20% | | Net Profit Attributable to Owners of Parent Company | 89,663,188.95 | 98,828,897.02 | -9.27% | Consolidated Cash Flow Statement Q1-Q3 2019 saw negative operating cash flow due to increased purchases, significant investing outflows for asset acquisition, and financing inflows from new borrowings and investments Consolidated Cash Flow Statement Summary (YTD Q3 2019) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -52,968,721.83 | 52,155,360.28 | | Net Cash Flow from Investing Activities | -365,716,140.72 | -276,249,351.09 | | Net Cash Flow from Financing Activities | 358,177,816.13 | 266,861,923.52 | | Net Increase in Cash and Cash Equivalents | -60,507,046.43 | 42,766,279.17 | Audit Report The company's third-quarter 2019 report remains unaudited - The company's third-quarter report is unaudited[111]