润泽科技(300442) - 2021 Q1 - 季度财报

Section I Important Notice This section provides the legal declaration, ensuring the quarterly report's truthfulness, accuracy, and completeness by the company's management and directors Section II Company Profile This section presents the company's key financial data, indicators, and shareholder structure, highlighting operational improvements and ownership details I. Key Accounting Data and Financial Indicators Q1 2021 saw significant growth in key financial indicators, including operating revenue, net profit, and positive operating cash flow, reflecting improved operations Key Accounting Data and Financial Indicators for Q1 2021 | Indicator | Current Reporting Period (Jan-Mar 2021) (CNY) | Prior Year Period (Jan-Mar 2020) (CNY) | Current Period vs. Prior Year Period Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 149,048,347.51 | 86,670,787.31 | 71.97% | | Net Profit Attributable to Shareholders of Listed Company | 3,412,091.80 | -14,868,170.50 | 122.95% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 3,768,812.65 | -15,006,398.29 | 125.11% | | Net Cash Flow from Operating Activities | 4,305,643.74 | -20,675,272.09 | 120.83% | | Basic Earnings Per Share (CNY/share) | 0.03 | -0.15 | 120.00% | | Diluted Earnings Per Share (CNY/share) | 0.03 | -0.15 | 120.00% | | Weighted Average Return on Net Assets | 0.70% | -2.06% | 133.98% | | Indicator | End of Current Reporting Period (Mar 31, 2021) (CNY) | End of Prior Year (Dec 31, 2020) (CNY) | End of Current Period vs. End of Prior Year Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,330,768,366.91 | 1,351,040,892.50 | -1.50% | | Net Assets Attributable to Shareholders of Listed Company | 513,953,247.18 | 509,451,502.28 | 0.88% | Non-recurring Gains and Losses from Year-Beginning to End of Reporting Period | Item | Amount from Year-Beginning to End of Reporting Period (CNY) | | :--- | :--- | | Gains/losses from disposal of non-current assets | -468,547.36 | | Tax refunds or reductions due to unauthorized approvals or lack of formal approval documents | 3,835.46 | | Government grants recognized in current profit or loss | 66,010.23 | | Other non-operating income and expenses apart from the above | -122,265.06 | | Less: Income tax impact | -180,716.06 | | Minority interest impact (after tax) | 16,470.18 | | Total | -356,720.85 | II. Total Number of Shareholders and Top Ten Shareholders' Holdings at Period-End At period-end, the company had 6,392 common shareholders, with Xinjiang Darong Minsheng Investment as the largest, holding 27.80% of shares, some pledged - At the end of the reporting period, the total number of common shareholders was 6,392, with no preferred shareholders with restored voting rights[6] Top 10 Shareholders' Holdings at Period-End | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledged or Frozen Status (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Darong Minsheng Investment Partnership | Domestic Non-state-owned Legal Person | 27.80% | 27,795,000 | 0 | Pledged: 14,904,873 | | Suzhou Industrial Park Hejie Venture Capital Center (Limited Partnership) | Domestic Non-state-owned Legal Person | 5.25% | 5,250,000 | 0 | Pledged: 2,750,000 | | Wang Fengfei | Domestic Natural Person | 4.34% | 4,340,000 | 0 | - | | Jiang Weidong | Domestic Natural Person | 1.07% | 1,072,500 | 804,375 | Pledged: 1,072,500 | - Xinjiang Darong Minsheng Investment Partnership and Suzhou Industrial Park Hejie Venture Capital Center (Limited Partnership) are jointly controlled by Jiang Weidong, Shu Shiquan, Jiang Xiaowei, and Zhang Siliang[7] 1. Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top 10 Shareholders' Holdings This section details common shareholder numbers and top 10 holdings, including restricted and pledged shares, and major shareholder relationships - At the end of the reporting period, the total number of common shareholders was 6,392. Among the top 10 shareholders, Xinjiang Darong Minsheng Investment Partnership held 27.80% as the largest shareholder, with 14,904,873 shares pledged[6] - The company is unaware if other shareholders have related party relationships or are concerted parties, but Xinjiang Darong Minsheng Investment Partnership and Suzhou Industrial Park Hejie Venture Capital Center (Limited Partnership) are jointly controlled by Jiang Weidong and three others[7] 2. Total Number of Preferred Shareholders and Top 10 Preferred Shareholders' Holdings The company had no preferred shareholders during the reporting period - The company had no preferred shareholders during the reporting period[8] 3. Changes in Restricted Shares Restricted shares, mainly executive lock-ups, remained unchanged for Jiang Weidong, with 804,375 shares to be unlocked at 25% annually Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period-Beginning (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at Period-End (shares) | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiang Weidong | 804,375 | 0 | 0 | 804,375 | Executive Lock-up | Will be unlocked at 25% of the shares held by the end of the previous year's last trading day annually | | Total | 804,375 | 0 | 0 | 804,375 | -- | -- | Section III Significant Events This section covers significant financial changes, operational improvements, various risks including asset restructuring and accounts receivable, and unfulfilled performance commitments I. Significant Changes in Key Financial Data and Indicators During the Reporting Period and Their Causes Key financial indicators across all statements changed significantly due to reduced COVID-19 impact and increased sales, improving revenue, profit, and cash flow (I) Significant Changes in Balance Sheet Items Balance sheet changes include decreased cash, increased other receivables and taxes payable, and decreased other current assets - Cash and cash equivalents decreased by 78.63%, primarily due to a reduction in the company's bank deposit balance at the end of the reporting period[10] - Other receivables increased by 36.24%, mainly due to increased payments for various deposits during the reporting period[10] - Taxes payable increased by 43.17%, primarily due to an increase in the parent company's VAT payable at the end of the reporting period compared to the beginning of the period[11] (II) Significant Changes in Income Statement Items Income statement items, including revenue, cost of sales, credit impairment, and operating profit, significantly improved due to reduced COVID-19 impact and sales recovery - Operating revenue increased by 71.97% year-on-year, primarily due to reduced impact from the COVID-19 pandemic and a substantial increase in the company's sales business compared to the prior year period[12] - Cost of sales increased by 78.62% year-on-year, primarily due to increased costs corresponding to higher sales volumes[13] - Credit impairment loss increased by 140.76% year-on-year, primarily due to reduced impact from the COVID-19 pandemic and improved accounts receivable collection during the reporting period[14] - Operating profit increased by 118.92% year-on-year, primarily due to a substantial increase in sales business[14] (III) Significant Changes in Cash Flow Statement Items Cash flow changes include increased operating cash inflows, decreased tax payments, and increased debt repayments - Cash paid for goods and services increased by 42.21% year-on-year, primarily due to a substantial increase in sales orders and higher production procurement payments[16] - Cash paid for taxes and fees decreased by 62.86% year-on-year, primarily due to lower VAT payments in the current reporting period compared to the prior year period[16] - Cash paid for debt repayment increased by 46.33% year-on-year, primarily due to higher repayment of matured loans during the reporting period compared to the prior year period[16] II. Business Review and Outlook Business revenue grew significantly due to reduced pandemic impact and order settlements, with operations on track, while major risks and countermeasures were identified Specific Factors Driving Changes in Business Revenue During the Reporting Period Operating revenue and net profit grew substantially, driven by reduced COVID-19 impact and Q4 2020 order settlements in the current period - During the reporting period, the company achieved operating revenue of CNY 149.05 million, a year-on-year increase of 71.97%[17] - Net profit attributable to shareholders was CNY 3.41 million, a year-on-year increase of 122.95%[17] - The primary drivers for business revenue growth were the diminishing impact of the global COVID-19 pandemic and increased settlements from equipment and engineering orders shipped in Q4 2020[17] Significant Signed Orders and Progress No significant signed orders or progress occurred during the reporting period - The company had no significant signed orders or progress during the reporting period[17] Dispersed Orders No dispersed orders occurred during the reporting period - The company had no dispersed orders during the reporting period[17] Significant Changes or Adjustments to the Company's Products or Services During the Reporting Period No significant changes or adjustments to products or services occurred during the reporting period - The company's products or services did not undergo significant changes or adjustments during the reporting period[17] Progress and Impact of Key R&D Projects No progress or impact from key R&D projects occurred during the reporting period - The company had no progress or impact from key R&D projects during the reporting period[17] Impact of Significant Changes in the Company's Intangible Assets, Core Competencies, Core Technical Team, or Key Technical Personnel (Non-Directors, Supervisors, Senior Management) During the Reporting Period and Countermeasures No significant changes occurred in intangible assets, core competencies, or key technical personnel during the reporting period - The company's intangible assets, core competencies, core technical team, or key technical personnel did not undergo significant changes during the reporting period[17] Changes and Impact of the Company's Top 5 Suppliers During the Reporting Period Top five supplier procurement increased, but their proportion of total procurement decreased, suggesting expanded scale and diversified suppliers Comparison of Top 5 Supplier Procurement | Indicator | Jan-Mar 2021 Procurement Amount (CNY 10,000) | Proportion of Total Procurement | Jan-Mar 2020 Procurement Amount (CNY 10,000) | Proportion of Total Procurement | | :--- | :--- | :--- | :--- | :--- | | Total Top Five Suppliers | 2,943.02 | 33.22% | 1,503.42 | 44.38% | Changes and Impact of the Company's Top 5 Customers During the Reporting Period Top five customer sales increased, but their proportion of total sales decreased significantly, indicating diversified customer structure and reduced reliance Comparison of Top 5 Customer Sales | Indicator | Jan-Mar 2021 Sales Amount (CNY 10,000) | Proportion of Total Sales | Jan-Mar 2020 Sales Amount (CNY 10,000) | Proportion of Total Sales | | :--- | :--- | :--- | :--- | :--- | | Total Top Five Customers | 6,548.02 | 35.69% | 5,294.57 | 61.09% | Significant Risk Factors Adversely Affecting the Company's Future Operations, Major Operational Difficulties, and Proposed Countermeasures The company faces risks from asset restructuring, accounts receivable, market competition, raw material prices, technology secrecy, and external investments, with countermeasures in place - Major asset restructuring risk: The company is planning a major asset swap, issuance of shares to acquire 100% equity of Runze Technology, and raising supporting funds, which requires multiple reviews and regulatory approvals, thus presenting uncertainties[20] - Bad debt and cash flow risk due to increased accounts receivable: Accounts receivable remained high at period-end, posing bad debt risk and cash flow pressure. The company will strengthen credit rating, collection efforts, and expand financing channels[20] - Market competition risk: The company must maintain its industry-leading position through independent innovation; otherwise, it may be at a disadvantage in increasingly fierce market competition. The company will closely monitor industry changes and adjust its strategy[21] - Raw material price fluctuation risk: Prices of major raw materials (such as steel, electrical components, plastic particles) fluctuate, and some imported raw materials are affected by the pandemic, which may impact the company's operating performance. The company has taken measures to address this but cannot completely eliminate the impact[22] - Loss of core technology secrecy risk: The company possesses multiple patented technologies, but the risk of core technology leakage or theft cannot be entirely ruled out. The company has implemented protection through patent applications and confidentiality systems and will pursue legal action in case of leakage[23] - External investment risk: Newly established subsidiaries and the acquisition of Italian COMAN company face integration risks in corporate culture, team management, customer resources, and project management, which may lead to underperformance. The company will strengthen subsidiary integration, management system alignment, and talent development[24] III. Analysis and Explanation of Progress, Impact, and Solutions for Significant Events No progress on share repurchases or reductions of repurchased shares occurred during the reporting period - The company had no progress on share repurchases during the reporting period[25] - The company had no progress on reducing repurchased shares through centralized bidding during the reporting period[25] IV. Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period Gu Kailun's performance compensation commitments for Jiangsu Puhuasheng for 2018-2020 are overdue and unfulfilled, leading to a lawsuit for 2018 and planned litigation for subsequent years - Gu Kailun, the commitment party, has not fully fulfilled performance commitments for Jiangsu Puhuasheng Packaging Technology Co., Ltd. (Puhuasheng) from 2017 to 2020, which are now overdue[26] - Puhuasheng's net profit after deducting non-recurring gains and losses for 2018, 2019, and 2020 did not meet the committed targets. Gu Kailun should pay equity transfer and cash compensation to the company, but both parties have different interpretations of the specific compensation amount[27] - The company filed a lawsuit with the Shanghai Jinshan District People's Court in April 2020 regarding the 2018 performance compensation and plans to continue litigation for the 2019 and 2020 performance compensation matters based on the judgment[27] V. Comparison Table of Raised Funds Utilization No comparison table of raised funds utilization was available during the reporting period - The company had no comparison table of raised funds utilization during the reporting period[28] VI. Warning and Explanation for Potential Cumulative Net Loss or Significant Change in Cumulative Net Profit from Year-Beginning to End of Next Reporting Period Compared to Prior Year Period No warning or explanation was provided for potential cumulative net loss or significant net profit change for the next reporting period - The company had no warning or explanation regarding potential cumulative net loss or significant change in cumulative net profit from the year-beginning to the end of the next reporting period compared to the prior year period[28] VII. Irregular External Guarantees No irregular external guarantees occurred during the reporting period - The company had no irregular external guarantees during the reporting period[29] VIII. Non-operating Fund Occupation by Controlling Shareholder and Related Parties No non-operating fund occupation by controlling shareholders or related parties occurred during the reporting period - The company had no non-operating fund occupation by controlling shareholders or their related parties during the reporting period[29] IX. Registration Form for Investor Relations Activities During the Reporting Period No investor relations activities, including research visits or interviews, occurred during the reporting period - The company did not conduct any investor relations activities such as research visits, communications, or interviews during the reporting period[29] Section IV Financial Statements This section presents the detailed consolidated and parent company financial statements for Q1 2021, including adjustments and audit status I. Financial Statements This part presents the consolidated and parent company financial statements for Q1 2021, detailing financial position, operating results, and cash flow 1. Consolidated Balance Sheet Consolidated total assets were CNY 1.331 billion, liabilities CNY 841 million, and parent equity CNY 514 million, showing slight changes from prior year-end Key Data from Consolidated Balance Sheet | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | Total Assets | 1,330,768,366.91 | 1,351,040,892.50 | | Total Liabilities | 841,477,140.52 | 865,567,194.71 | | Total Equity Attributable to Parent Company Owners | 513,953,247.18 | 509,451,502.28 | 2. Parent Company Balance Sheet Parent company total assets were CNY 1.359 billion, liabilities CNY 844 million, and owner's equity CNY 515 million, showing slight increases from prior year-end Key Data from Parent Company Balance Sheet | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | Total Assets | 1,358,579,548.43 | 1,335,398,516.59 | | Total Liabilities | 843,818,985.53 | 820,960,113.35 | | Total Owner's Equity | 514,760,562.90 | 514,438,403.24 | 3. Consolidated Income Statement Q1 2021 consolidated operating revenue was CNY 149 million, with operating profit and net profit turning profitable, and basic EPS at CNY 0.03 Key Data from Consolidated Income Statement | Item | Current Period Amount (Jan-Mar 2021) (CNY) | Prior Period Amount (Jan-Mar 2020) (CNY) | | :--- | :--- | :--- | | Operating Revenue | 149,048,347.51 | 86,670,787.31 | | Operating Profit | 2,976,240.21 | -15,734,600.69 | | Total Profit | 3,555,288.70 | -15,580,694.03 | | Net Profit | 2,731,341.35 | -16,320,875.19 | | Net Profit Attributable to Parent Company Shareholders | 3,412,091.80 | -14,868,170.50 | | Basic Earnings Per Share | 0.03 | -0.15 | 4. Parent Company Income Statement Q1 2021 parent company operating revenue was CNY 30.32 million, with net profit of CNY 0.32 million and basic EPS of CNY 0.00, improving from a prior year loss Key Data from Parent Company Income Statement | Item | Current Period Amount (Jan-Mar 2021) (CNY) | Prior Period Amount (Jan-Mar 2020) (CNY) | | :--- | :--- | :--- | | Operating Revenue | 30,320,753.94 | 16,396,159.34 | | Operating Profit | -167,840.34 | -6,756,232.18 | | Total Profit | 322,159.66 | -6,738,077.53 | | Net Profit | 322,159.66 | -6,738,077.53 | | Basic Earnings Per Share | 0.00 | -0.07 | 5. Consolidated Cash Flow Statement Q1 2021 consolidated net operating cash flow was positive, investing and financing cash flows were negative, with period-end cash at CNY 2.38 million Key Data from Consolidated Cash Flow Statement | Item | Current Period Amount (Jan-Mar 2021) (CNY) | Prior Period Amount (Jan-Mar 2020) (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,305,643.74 | -20,675,272.09 | | Net Cash Flow from Investing Activities | -4,752,151.36 | -6,938,453.04 | | Net Cash Flow from Financing Activities | -16,722,908.70 | 21,841,531.16 | | Net Increase in Cash and Cash Equivalents | -17,189,376.96 | -5,772,845.52 | | Cash and Cash Equivalents at Period-End | 2,379,913.80 | 7,218,410.61 | 6. Parent Company Cash Flow Statement Q1 2021 parent company net operating cash flow was positive, investing and financing cash flows were negative, with period-end cash at CNY 0.99 million Key Data from Parent Company Cash Flow Statement | Item | Current Period Amount (Jan-Mar 2021) (CNY) | Prior Period Amount (Jan-Mar 2020) (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 44,716,738.63 | -34,396,512.63 | | Net Cash Flow from Investing Activities | -4,064,996.63 | -5,120,390.80 | | Net Cash Flow from Financing Activities | -40,329,493.58 | 34,973,777.77 | | Net Increase in Cash and Cash Equivalents | 322,248.42 | -4,543,125.66 | | Cash and Cash Equivalents at Period-End | 990,073.32 | 1,990,534.18 | II. Explanation of Financial Statement Adjustments The company did not need to adjust its opening balance sheet for 2021 upon first adopting the new lease standards, as the standard was already first implemented in 2020, and no retrospective adjustments were made to prior comparative data 1. Adjustments to Opening Financial Statements for the First-Time Adoption of New Lease Standards from 2021 No opening balance sheet adjustments were required for 2021 as new lease standards were adopted in 2020 - The company did not need to adjust its opening balance sheet accounts because the new lease standards were already first adopted in 2020[50] 2. Explanation of Retrospective Adjustment of Prior Comparative Data for First-Time Adoption of New Lease Standards from 2021 No retrospective adjustments were made to prior comparative data for the first-time adoption of new lease standards from 2021 - The company did not retrospectively adjust prior comparative data for the first-time adoption of new lease standards from 2021[50] III. Audit Report The company's Q1 2021 report was unaudited - The company's first quarter report was unaudited[50]