KNT(SZ:300225)2021-10-26 16:00Financial Performance - Revenue for Q3 2021 was CNY 183,678,265.51, a decrease of 28.63% compared to the same period last year[3]. - Net profit attributable to shareholders was CNY -41,392,001.89, a decline of 182.37% year-on-year[3]. - Basic earnings per share were CNY -0.0846, down 179.21% from the previous year[3]. - The net profit for Q3 2021 was -64,045,521.06 CNY, a significant decline compared to the net profit of 65,566,004.47 CNY in the same period last year, representing a year-over-year decrease of approximately 197.6%[34]. - Operating profit for Q3 2021 was -72,513,935.46 CNY, compared to an operating profit of 67,774,868.42 CNY in Q3 2020, indicating a decline of around 207.2%[34]. - The total comprehensive income for Q3 2021 was -64,045,521.06 CNY, compared to 65,566,004.47 CNY in Q3 2020, reflecting a decrease of around 197.6%[35]. Assets and Liabilities - Total assets at the end of the period were CNY 1,380,207,334.38, a decrease of 3.44% from the end of the previous year[4]. - As of September 30, 2021, the company's total assets amounted to CNY 1,380,207,334.38, a decrease from CNY 1,429,321,443.08 at the end of 2020[29][31]. - The company's total liabilities as of September 30, 2021, were CNY 389,915,107.06, down from CNY 398,628,311.97 at the end of 2020[31]. - Total current assets amounted to approximately CNY 1,071,022,061.98, with a decrease of CNY 909,877.03 compared to the previous period[42]. - The total non-current assets increased to CNY 358,299,381.10, reflecting an increase of CNY 8,888,623.30[43]. - Total current liabilities were CNY 391,289,385.20, remaining unchanged from the previous period[43]. Cash Flow - Cash flow from operating activities was CNY -215,357,431.00, a decline of 281.30% year-on-year[3]. - The net cash flow from operating activities decreased significantly to -215,357,431.00 RMB, a change of 281.30% compared to the previous year, primarily due to the expansion of trade operations by a subsidiary[11]. - The cash flow from operating activities showed a net outflow of -215,357,431.00 CNY, worsening from -56,479,183.02 CNY in the same quarter last year[38]. - Investment activities generated a net cash inflow of 33,207,203.70 CNY, a recovery from a net outflow of -115,172,419.48 CNY in Q3 2020[38]. Costs and Expenses - Operating costs increased by 37.48% to CNY 568,703,211.14, primarily due to rising raw material prices[9]. - The total operating costs for the current period were CNY 733,266,204.70, which is a significant increase from CNY 552,030,984.23 in the previous period[33]. - Research and development expenses rose by 20.76% to CNY 26,554,948.40, reflecting increased investment in core technologies[9]. - Research and development expenses increased to 26,554,948.40 CNY in Q3 2021 from 21,989,875.52 CNY in Q3 2020, reflecting a growth of about 20.5%[34]. - The company reported a credit impairment loss of -5,014,081.87 RMB, an increase of 396.93% compared to the previous period, attributed to extended aging of receivables and higher provisions for bad debts[10]. - The income tax expense was -4,367,132.66 RMB, a decrease of 173.65% year-on-year, primarily due to a significant reduction in taxable income compared to the same period last year[10]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,019, with no preferred shareholders[13]. - The largest shareholder, Hainan Dahe Enterprise Management Co., Ltd., holds 15.04% of the shares, amounting to 73,576,600 shares, with 26,543,000 shares frozen[13]. Strategic Initiatives - The company plans to invest 50 million yuan to establish a wholly-owned subsidiary to develop the passenger vehicle original paint market, enhancing its product offerings and market presence[21]. - The company is focused on expanding its presence in the passenger vehicle original paint market as a key component of its current and future development strategy[21]. - The company is actively pursuing certification work with passenger vehicle manufacturers to expand its market share in the passenger vehicle original paint sector[20]. - The company has significantly increased its investment in R&D and core technical personnel to support its dual strategy of "automotive coatings + high-tech new materials"[20]. - The company announced a price increase of 10%-20% for its cathodic electrophoretic paint products starting from September 1, 2021, due to cost pressures and long-term customer relationships[25]. - The company is implementing strict cost control measures across all departments and strengthening strategic cooperation with core raw material suppliers to reduce product costs[26]. Management Changes - The company appointed several senior executives to strengthen talent empowerment and management, including Ma Xin as the Chief Executive Officer, who has over 20 years of human resources management experience[23]. - The company appointed Ms. Sui Jingyuan as Chief Financial Officer to enhance the financial management system and promote a transition to a performance-oriented financial model[24]. - The company appointed Mr. Ge Lefan as Vice President to enhance market development and management in the industrial sector, focusing on powder coatings, engineering machinery, and commercial vehicle coatings[24]. Market Conditions - In Q3 2021, the commercial vehicle production and sales decreased by 33.2% and 30.2% in July, 46.2% and 42.8% in August, and 35.2% and 33.6% in September year-on-year, significantly impacting the company's performance[18]. - From January to September 2021, the company's raw material procurement costs increased by approximately 120 million yuan compared to the same period last year, primarily due to rising global chemical raw material prices[18]. - The average market price of epoxy resin rose by 67.96% year-on-year to 31.56 yuan/kg, and bisphenol A increased by 133.82% to 23.99 yuan/kg in the same period[19]. Other Information - The company did not report any new product or technology developments during the quarter[10]. - There were no significant mergers or acquisitions reported in the current period[10]. - The company has not provided specific future guidance or market expansion strategies in the current report[10]. - The company incurred financial expenses of 527,970.30 CNY in Q3 2021, compared to a financial income of -444,967.54 CNY in the same period last year[34]. - The third quarter report was not audited, indicating preliminary financial results[46].