国瓷材料(300285) - 2021 Q1 - 季度财报

Important Notice This section provides essential declarations regarding the quarterly report's integrity and the responsibilities of the company's leadership Board of Directors' Statement The company's Board of Directors, Supervisory Committee, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities, with key executives guaranteeing the financial statements' authenticity - The company's Board of Directors, Supervisory Committee, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions[2] - Company head Zhang Xi, chief accountant Xiao Qiang, and head of accounting department Wang Lianzhen declare that the financial statements in the quarterly report are true, accurate, and complete[2] Company Profile This section details the company's fundamental information, including key financial performance indicators and shareholder structure Key Accounting Data and Financial Indicators In Q1 2021, the company achieved operating revenue of CNY 621 million, a 27.55% increase, and net profit attributable to shareholders of CNY 186 million, up 61.62%, with basic EPS at CNY 0.19 and operating cash flow at -CNY 77 million Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 620,675,361.53 | 486,614,841.13 | 27.55% | | Net Profit Attributable to Shareholders (CNY) | 185,967,992.97 | 115,063,108.27 | 61.62% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | 162,941,769.51 | 107,707,455.69 | 51.28% | | Net Cash Flow from Operating Activities (CNY) | -77,328,098.09 | 49,065,168.90 | -257.60% | | Basic Earnings Per Share (CNY/share) | 0.190 | 0.110 | 72.73% | | Weighted Average Return on Net Assets | 3.65% | 3.10% | Increased by 0.55 percentage points | | Total Assets (CNY) | 6,250,282,845.72 | - | Increased by 3.74% from end of prior year | | Net Assets Attributable to Shareholders (CNY) | 5,181,192,056.58 | - | Increased by 3.72% from end of prior year | Details of Non-recurring Gains and Losses | Item | Amount from Year-Beginning to End of Reporting Period (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 58,858.71 | | Government Grants Recognized in Current Profit/Loss | 14,805,972.69 | | Gains/Losses from Entrusted Investments or Asset Management | 4,757,221.17 | | Other Non-operating Income/Expenses and Capital Occupation Fees | 8,605,368.51 | | Less: Income Tax and Minority Interest Impact | 5,201,197.62 | | Total | 23,026,223.46 | Shareholder Information As of the end of the reporting period, the company had 40,383 common shareholders, with controlling shareholder Zhang Xi holding 23.19% and Hong Kong Securities Clearing Company Limited holding 22.29% Total Common Shareholders and Top Ten Shareholders' Holdings As of the reporting period end, the company had 40,383 common shareholders, with Zhang Xi as the largest shareholder at 23.19% and Hong Kong Securities Clearing Company Limited at 22.29% - The total number of common shareholders at the end of the reporting period was 40,383[6] Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held (shares) | | :--- | :--- | :--- | :--- | | Zhang Xi | Domestic Natural Person | 23.19% | 232,736,041 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 22.29% | 223,796,571 | | Dongying Aoyuan Industry and Trade Co., Ltd. | Domestic Non-state-owned Legal Person | 4.28% | 42,984,569 | | Ruoyuan Growth Value Mixed Securities Investment Fund | Domestic Non-state-owned Legal Person | 2.83% | 28,452,872 | | Fullgoal Tianhui Selected Growth Mixed Securities Investment Fund (LOF) | Domestic Non-state-owned Legal Person | 2.49% | 25,000,000 | Changes in Restricted Shares During the period, total restricted shares decreased from 247 million to 237 million, primarily due to Zhang Xi lifting restrictions on 10,117,319 shares Restricted Share Movement Details | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released This Period (shares) | Restricted Shares at End of Period (shares) | | :--- | :--- | :--- | :--- | | Zhang Xi | 184,669,350 | 10,117,319 | 174,552,031 | | Total | 246,915,271 | 10,117,319 | 236,797,952 | Important Matters This section outlines significant events and their impact on the company's operations and financial position Explanation of Significant Changes in Key Financial Data During the period, significant changes occurred across financial items, including a 264% increase in trading financial assets, a substantial decrease in financial expenses, a 439.51% rise in investment income, and a 257.60% decrease in operating cash flow Significant Changes in Balance Sheet Items | Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Trading Financial Assets | 264.00% | Purchase of wealth management products this period | | Prepayments | 78.20% | Increase in prepayments for raw materials | | Other Receivables | 325.92% | Increase in government subsidies receivable | | Other Non-current Assets | 231.57% | Increase in prepaid engineering and equipment costs this period | Significant Changes in Income Statement Items | Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Financial Expenses | -1154.79% | Increase in deposit interest income and decrease in borrowing interest expense this period | | Other Income | 212.32% | Increase in government grants received this period | | Investment Income | 439.51% | Increase in wealth management income from temporarily idle raised funds | | Non-operating Expenses | -93.28% | Donations for epidemic in the same period last year | | Income Tax Expense | 79.32% | Increase in taxable income this period | Significant Changes in Cash Flow Statement Items | Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -257.60% | Increase in raw material purchases and employee bonus payments this period | | Net Cash Flow from Investing Activities | -783.24% | Increase in wealth management product purchases this period | | Net Cash Flow from Financing Activities | -41.14% | Increase in cash dividends paid this period | Business Review and Outlook In Q1 2021, stable operations and strong demand for honeycomb ceramics and electronic materials drove significant revenue and profit growth, while the company identified and addressed five key risks including COVID-19, raw material prices, and exchange rate fluctuations Operating Performance Review Q1 2021 performance growth was primarily driven by robust downstream customer demand and ample orders in honeycomb ceramics and electronic materials, leading to a 27.55% increase in sales revenue - Performance growth was primarily driven by strong downstream customer product demand and ample orders in the company's honeycomb ceramic and electronic material businesses[15] - The company holds approximately CNY 640 million in ongoing dispersed orders[15] Risk Factors and Countermeasures The company identified five key risks: recurring COVID-19 impacts, rising raw material costs, accounts receivable collection, M&A integration, and exchange rate fluctuations, for which corresponding mitigation strategies have been developed - COVID-19 recurrence risk: Addressed by internal epidemic prevention measures (e.g., vaccination) and seizing import substitution opportunities to expand the domestic market[17] - Raw material price fluctuation risk: Managed by expanding supplier resources and securing key suppliers through equity participation or joint ventures to control costs and ensure supply[18] - Accounts receivable collection risk: Mitigated by strengthening customer credit management, engaging China Export & Credit Insurance Corporation for background checks, and utilizing letters of credit or insurance for some clients[19][20] - Merger and acquisition and goodwill impairment risk: Addressed by integrating acquired entities into the company's business system (CBS) for rapid synergy and conducting annual goodwill impairment tests[21] - Exchange rate fluctuation risk: Mitigated by improving foreign exchange hedging, adopting diverse settlement methods, and agreeing on price adjustment mechanisms with clients[22][23] Progress of Important Matters The company completed its 2020 equity distribution in April 2021, paying a cash dividend of CNY 1.00 per 10 shares based on a total share capital of 1,003,810,338 shares - The company implemented its 2020 annual equity distribution plan, paying a cash dividend of CNY 1.00 per 10 shares, with the record date on April 15, 2021, and ex-dividend date on April 16, 2021[24] Use of Raised Funds The company disclosed the use of raised funds, with a revised committed investment of CNY 822 million for projects like MLCC dielectric materials and automotive honeycomb ceramics, having cumulatively invested CNY 143 million by period-end Progress of Raised Fund Investment Projects | Committed Investment Project | Adjusted Total Investment (CNY million) | Cumulative Investment as of Period-End (CNY million) | Investment Progress | | :--- | :--- | :--- | :--- | | Dielectric Materials for Ultra-miniature Multilayer Ceramic Capacitors (MLCC) | 200.00 | 38.02 | 10.60% | | Automotive Honeycomb Ceramic Manufacturing Project | 170.00 | 21.34 | 11.94% | | Annual Production of 3,000 Tons of High-Performance Rare Earth Functional Materials | 228.00 | 3.71 | 2.69% | | Replenishment of Working Capital | 224.30 | 80.32 | 36.63% | | Total | 822.30 | 143.39 | - | - Unused raised funds are held in the company's dedicated raised funds account[32] Financial Statements This section presents the company's financial performance and position through its consolidated and parent company financial statements Financial Statements This section presents the company's unaudited consolidated and parent company financial statements for Q1 2021, including the balance sheet, income statement, and cash flow statement Consolidated Balance Sheet As of March 31, 2021, total assets were CNY 6.25 billion, up 3.74% from year-start, and equity attributable to parent company owners was CNY 5.18 billion, up 3.72% Consolidated Balance Sheet Key Items (March 31, 2021) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 6,250,282,845.72 | | Total Current Assets | 3,234,848,542.70 | | Total Non-current Assets | 3,015,434,303.02 | | Total Liabilities | 708,218,715.01 | | Total Owners' Equity | 5,542,064,130.71 | | Owners' Equity Attributable to Parent Company | 5,181,192,056.58 | Consolidated Income Statement In Q1 2021, the company achieved total operating revenue of CNY 621 million, a 27.55% increase, and net profit attributable to parent company shareholders of CNY 186 million, up 61.62%, with basic EPS at CNY 0.19 Consolidated Income Statement Key Items (Q1 2021) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 620,675,361.53 | 486,614,841.13 | | Operating Profit | 207,338,599.55 | 126,722,253.09 | | Total Profit | 217,157,010.53 | 132,479,424.23 | | Net Profit | 192,907,261.05 | 118,956,630.20 | | Net Profit Attributable to Parent Company Shareholders | 185,967,992.97 | 115,063,108.27 | | Basic Earnings Per Share (CNY/share) | 0.190 | 0.110 | Consolidated Cash Flow Statement In Q1 2021, net cash flow from operating activities was -CNY 77.33 million, a significant decrease due to increased raw material purchases and employee bonuses, while investing cash flow was -CNY 492 million due to wealth management product purchases Consolidated Cash Flow Statement Key Items (Q1 2021) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -77,328,098.09 | 49,065,168.90 | | Net Cash Flow from Investing Activities | -492,441,280.62 | -55,754,269.24 | | Net Cash Flow from Financing Activities | -20,998,012.06 | -14,877,913.33 | | Net Increase in Cash and Cash Equivalents | -589,706,742.11 | -20,971,599.31 | | Cash and Cash Equivalents at Period-End | 510,621,926.76 | 198,037,284.68 | Explanation of Financial Statement Adjustments Effective January 1, 2021, the company adopted new lease accounting standards, adjusting opening financial statements to recognize right-of-use assets, lease liabilities, and current non-current liabilities, with no impact on owners' equity - The company first adopted new lease accounting standards effective January 1, 2021, and retrospectively adjusted the opening financial statements for the current period[58] Consolidated Balance Sheet Opening Adjustments | Adjusted Item | Adjustment Amount (CNY) | | :--- | :--- | | Right-of-Use Assets | +13,156,057.35 | | Non-current Liabilities Due Within One Year | +6,723,995.66 | | Lease Liabilities | +6,432,061.69 | Audit Report Explanation The company's Q1 2021 report is unaudited - The company's first-quarter report is unaudited[66]