金力永磁(300748) - 2023 Q3 - 季度财报

Report Overview This section presents the unaudited status of the quarterly report and the assurance of its truthfulness and completeness by the board and management Important Notice The board, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, with financial officers confirming financial information integrity; this quarterly report is unaudited - The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[2] - The company's principal, chief financial officer, and head of the accounting department declare that the financial information in the quarterly report is true, accurate, and complete[2] - The third-quarter report is unaudited[2][25] Key Financial Data This section presents key accounting data and financial indicators for the quarter and year-to-date, including non-recurring items and explanations for significant changes in financial statement line items Key Accounting Data and Financial Indicators Q3 2023 saw a 15.15% revenue decline and 27.47% net profit decrease, while year-to-date revenue fell 3.13% and net profit dropped 28.03%, with operating cash flow surging 297.77% | Indicator | Current Reporting Period (Q3 2023) | YoY Change (Adjusted) | Year-to-Date (YTD 2023) | YoY Change (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,620,367,043.75 | -15.15% | 5,050,397,446.30 | -3.13% | | Net Profit Attributable to Shareholders (RMB) | 161,663,200.56 | -27.47% | 494,265,422.45 | -28.03% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains and Losses (RMB) | 150,329,333.96 | -28.10% | 438,033,309.57 | -34.67% | | Net Cash Flow from Operating Activities (RMB) | - | - | 817,005,984.24 | 297.77% | | Basic Earnings Per Share (RMB/share) | 0.1204 | -27.73% | 0.3683 | -29.42% | | Diluted Earnings Per Share (RMB/share) | 0.1204 | -27.73% | 0.3683 | -29.42% | | Weighted Average Return on Net Assets | 2.31% | Decreased by 1.02 percentage points | 7.09% | Decreased by 4.11 percentage points | | Total Assets (RMB) | 11,396,576,497.07 | 1.57% (compared to end of previous year) | 11,396,576,497.07 | 1.57% (compared to end of previous year) | | Owners' Equity Attributable to Shareholders (RMB) | 7,077,907,416.44 | 4.32% (compared to end of previous year) | 7,077,907,416.44 | 4.32% (compared to end of previous year) | - From the end of the reporting period to the disclosure date of the quarterly report, the company's share capital did not change due to new share issuance, additional issuance, rights issue, equity incentive exercise, or repurchases, nor did it affect the amount of owners' equity[4] Non-Recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled RMB 11.33 million for the quarter and RMB 56.23 million year-to-date, mainly from government grants and fair value changes in financial assets | Item | Amount for Current Period (RMB) | Amount Year-to-Date (RMB) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 848,636.09 | -311,743.98 | | Government Grants Included in Current Profit/Loss | 5,086,898.93 | 60,823,435.06 | | Gains/Losses from Entrusted Investments or Asset Management | -4,928,662.07 | -4,928,662.07 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities Held for Trading, and Investment Income from Disposal of Financial Assets/Liabilities Held for Trading and Available-for-Sale Financial Assets, excluding effective hedge accounting related to normal business operations | 13,180,360.90 | 10,442,592.50 | | Other Non-Operating Income and Expenses Apart from the Above | -1,577,661.43 | -1,713,005.03 | | Less: Income Tax Impact | 1,275,705.82 | 8,080,503.60 | | Total | 11,333,866.60 | 56,232,112.88 | - The company has not classified any non-recurring gains and losses items listed in 'Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public – Non-Recurring Gains and Losses' as recurring gains and losses[7] Changes and Reasons for Key Accounting Data and Financial Indicators Notes receivable decreased by 74.11%, while accounts receivable financing and prepayments increased; short-term borrowings and current non-current liabilities significantly reduced, and financial expenses dropped 73.58% due to exchange gains, with fair value change gains up 678.33% from forward exchange contracts Balance Sheet Item Changes | Balance Sheet Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | Change Rate | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 142,055,199.17 | 548,735,528.96 | -74.11% | Primarily due to a decrease in notes held to maturity at the end of the reporting period | | Accounts Receivable Financing | 225,177,440.28 | 97,088,156.37 | 131.93% | Primarily due to an increase in reclassified notes held for financing purposes at the end of the reporting period | | Prepayments | 254,797,884.07 | 36,721,034.81 | 593.87% | Primarily due to an increase in prepaid material costs at the end of the reporting period | | Other Receivables | 206,349,081.76 | 10,182,239.39 | 1926.56% | Primarily due to subsidiary payments for land deposits from the beginning of the year to the end of the reporting period | | Construction in Progress | 561,942,533.18 | 394,763,067.34 | 42.35% | Primarily due to subsidiary project investments from the beginning of the year to the end of the reporting period | | Deferred Income Tax Assets | 2,694,749.87 | 1,738,314.70 | 55.02% | Primarily due to an increase in impairment provisions at the end of the reporting period | | Short-term Borrowings | 458,462,626.58 | 945,495,381.04 | -51.51% | Primarily due to the company repaying some matured loans from the beginning of the year to the end of the reporting period | | Financial Liabilities Held for Trading | 0.00 | 3,219,800.00 | -100.00% | Primarily due to reclassification adjustment from floating gains on forward exchange contracts at the end of the reporting period | | Contract Liabilities | 165,418,769.16 | 23,895,384.93 | 592.26% | Primarily due to increased customer prepayments from the beginning of the year to the end of the reporting period | | Employee Benefits Payable | 33,152,475.62 | 70,165,733.81 | -52.75% | Primarily due to a decrease in accrued wages from the beginning of the year to the end of the reporting period | | Taxes Payable | 19,841,224.14 | 9,223,910.53 | 115.11% | Primarily due to an increase in taxes payable at the end of the reporting period | | Non-Current Liabilities Due Within One Year | 2,392,108.12 | 304,675,370.52 | -99.21% | Primarily due to repayment of some matured loans from the beginning of the year to the end of the reporting period | | Other Current Liabilities | 22,993,833.35 | 2,713,158.29 | 747.49% | Primarily due to an increase in unearned output VAT at the end of the reporting period | | Long-term Borrowings | 500,000,000.00 | 200,000,000.00 | 150.00% | Primarily due to an increase in two-year working capital loans from the beginning of the year to the end of the reporting period | | Share Capital | 1,342,540,451.00 | 837,956,198.00 | 60.22% | Primarily due to a capital reserve capitalization of 6 shares for every 10 shares to all shareholders from the beginning of the year to the end of the reporting period | | Other Comprehensive Income | 1,750,767.71 | 5,274,306.50 | -66.81% | Primarily due to a decrease in foreign currency financial statement translation differences from the beginning of the year to the end of the reporting period | | Minority Interests | 5,102,321.88 | 2,924,455.32 | 74.47% | Primarily due to profits from non-wholly owned subsidiaries from the beginning of the year to the end of the reporting period | Profit Statement Item Changes | Profit Statement Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | Change Rate | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | -42,062,411.54 | -159,235,531.04 | -73.58% | Primarily due to a significant increase in exchange gains/losses in the prior year from the appreciation of USD and HKD (approximately RMB 135 million realized from H-share offering proceeds settlement) | | Other Income | 60,823,435.06 | 31,969,563.41 | 90.25% | Primarily due to an increase in government grants received from the beginning of the year to the end of the reporting period | | Investment Income | -4,617,108.54 | -10,628,128.41 | 56.56% | Primarily due to larger exchange losses from forward exchange contracts in the prior year | | Gains from Fair Value Changes | 10,442,592.50 | -1,805,660.00 | 678.33% | Primarily due to floating gains on forward exchange contracts at the end of the reporting period | | Credit Impairment Losses | 726,037.68 | -14,820,537.08 | -104.90% | Primarily due to a decrease in impairment provisions at the end of the reporting period | | Asset Impairment Losses | -21,530,601.44 | -6,896,747.21 | 212.18% | Primarily due to an increase in inventory write-down provisions at the end of the reporting period | | Gains from Asset Disposal | -311,743.98 | 401,723.20 | -177.60% | Primarily due to losses from disposal of fixed assets from the beginning of the year to the end of the reporting period | | Non-Operating Expenses | 1,789,771.75 | 746,301.99 | 139.82% | Primarily due to an increase in fixed asset disposal losses from the beginning of the year to the end of the reporting period | | Income Tax Expense | 38,374,257.56 | 55,191,156.04 | -30.47% | Primarily due to a decrease in profit from the beginning of the year to the end of the reporting period | Shareholder Information This section provides an overview of the company's common shareholders, including the total number, top ten shareholders' holdings, and changes in restricted shares Total Common Shareholders, Number of Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings As of the reporting period end, the company had 61,665 common shareholders, with Jiangxi Ruide Venture Capital Co., Ltd. holding the largest stake at 28.83% and acting in concert with actual controllers - Total common shareholders at the end of the reporting period were 61,665 households[10] Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangxi Ruide Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 28.83% | 387,100,160 | Pledged | 16,000,000 | | HKSCC NOMINEES LIMITED | Overseas Legal Person | 14.95% | 200,745,600 | - | - | | Ganzhou Industrial Investment Holding Group Co., Ltd. | State-Owned Legal Person | 5.15% | 69,120,000 | - | - | | Goldwind Investment Holding Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.99% | 67,036,352 | - | - | | Shaanxi Coal Industry Co., Ltd. | State-Owned Legal Person | 3.99% | 53,631,950 | - | - | | Ganzhou Xinsheng Investment Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 1.75% | 23,536,435 | - | - | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.54% | 20,724,693 | - | - | | Tianan Life Insurance Co., Ltd. - Dividend Product | Other | 0.77% | 10,367,500 | - | - | | Huatai-PineBridge Fund Management Co., Ltd. - Social Security Fund 17022 Portfolio | Other | 0.67% | 8,997,280 | - | - | | Ganzhou Geshuo Investment Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.64% | 8,603,174 | Pledged | 3,504,000 | - Jiangxi Ruide Venture Capital Co., Ltd., the company's actual controllers Cai Baogui, Hu Zhibin, Li Xinnong, and Ganzhou Xinsheng Investment Management Center (Limited Partnership), Ganzhou Geshuo Investment Management Center (Limited Partnership) are concerted parties[11] Changes in Restricted Shares Restricted shares of executives and equity incentive recipients changed, with some released due to unlocking conditions or resignation, and others increased due to capital reserve capitalization Restricted Shares Changes | Shareholder Name | Restricted Shares at Period Beginning (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Cai Baogui | 480,000 | 0 | 288,000 | 768,000 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Hu Zhibin | 720,000 | 0 | 432,000 | 1,152,000 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Mao Huayun | 1,440,600 | 360,150 | 832,590 | 1,913,040 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Lv Feng | 968,160 | 174,450 | 793,026 | 1,586,736 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Huang Changyuan | 630,600 | 0 | 378,360 | 1,008,960 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Lu Ming | 626,160 | 0 | 560,016 | 1,186,176 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Yu Han | 723,000 | 0 | 618,120 | 1,341,120 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Xie Hui | 623,760 | 107,175 | 448,191 | 964,776 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Yi Pengpeng | 153,600 | 19,200 | 176,640 | 311,040 | Executive restriction, equity incentive restricted shares, restricted shares from capital reserve capitalization | | Other Equity Incentive Recipients | 523,488 | 14,016 | 305,683 | 815,155 | Equity incentive restricted shares, restricted shares from capital reserve capitalization | | Total | 6,889,368 | 674,991 | 4,832,626 | 11,047,003 | -- | - Reasons for restriction include executive restrictions, equity incentive restricted shares, and restricted shares from capital reserve capitalization; proposed release dates are typically 25% market circulation annually during tenure or upon meeting equity incentive unlocking conditions[12] Other Significant Matters In Q1-Q3 2023, the rare earth permanent magnet industry faced price volatility and competition; the company responded by optimizing procurement, R&D, and formulations, leading to a 15.18% increase in high-performance material output and 26.19% revenue growth in new energy vehicles - In the first three quarters of 2023, the rare earth permanent magnet industry was affected by fluctuations in rare earth raw material prices (average price of praseodymium-neodymium metal decreased by approximately 39% year-over-year) and intensified industry competition[13][14] - Company management promptly adopted a more cautious rare earth raw material procurement and inventory strategy, continuously increasing R&D investment and optimizing formulations to achieve cost reduction and efficiency improvement[14] Key Performance Indicators (Q1-Q3 2023) | Indicator | Amount/Percentage | YoY Change | Remarks | | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 5.05 billion | Decreased by 3.13% | | | R&D Expense Investment | RMB 256 million | Increased by 15.99% | Proportion of operating revenue increased from 4.24% to 5.08% | | Net Profit Attributable to Shareholders | RMB 494 million | Decreased by 28.03% | | | Net Cash Flow from Operating Activities | RMB 817 million | Significant increase | | | Total Output of High-Performance Rare Earth Permanent Magnet Materials | 10,965 tons | Increased by 15.18% | | | Output of Products Using Grain Boundary Diffusion Technology | 9,364 tons | Increased by 36.20% | Accounts for 85.40% of total output, an increase of 13.19 percentage points | | Revenue from New Energy Vehicles and Automotive Components | RMB 2.41 billion | Increased by 26.19% | | | Revenue from Energy-Saving Inverter Air Conditioners | RMB 1.058 billion | - | | | Revenue from Wind Power Generation | RMB 444 million | - | | | Revenue from Robotics and Industrial Servo Motors | RMB 165 million | - | | - The company received an A-grade (Excellent) assessment result for the fourth consecutive year in the Shenzhen Stock Exchange ChiNext Board listed companies' 2022 annual information disclosure assessment, indicating continuous improvement and optimization of corporate governance[14] Quarterly Financial Statements This section presents the consolidated balance sheet, income statement, and cash flow statement for the period, along with explanations of accounting policy changes and the unaudited status of the report Consolidated Balance Sheet As of September 30, 2023, total assets reached RMB 11.397 billion, up 1.57%; notes receivable decreased significantly, while accounts receivable financing and prepayments increased, and long-term borrowings surged 150% Consolidated Balance Sheet (as of September 30, 2023) | Item | September 30, 2023 (RMB) | January 1, 2023 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 11,396,576,497.07 | 11,220,455,751.51 | 1.57% | | Cash and Cash Equivalents | 3,961,648,385.36 | 4,130,247,580.42 | -4.08% | | Notes Receivable | 142,055,199.17 | 548,735,528.96 | -74.11% | | Accounts Receivable Financing | 225,177,440.28 | 97,088,156.37 | 131.93% | | Prepayments | 254,797,884.07 | 36,721,034.81 | 593.87% | | Other Receivables | 206,349,081.76 | 10,182,239.39 | 1926.56% | | Construction in Progress | 561,942,533.18 | 394,763,067.34 | 42.35% | | Total Liabilities | 4,313,566,758.75 | 4,432,680,970.12 | -2.70% | | Short-term Borrowings | 458,462,626.58 | 945,495,381.04 | -51.51% | | Contract Liabilities | 165,418,769.16 | 23,895,384.93 | 592.26% | | Long-term Borrowings | 500,000,000.00 | 200,000,000.00 | 150.00% | | Total Owners' Equity | 7,083,009,738.32 | 6,787,774,781.39 | 4.35% | | Share Capital | 1,342,540,451.00 | 837,956,198.00 | 60.22% | | Capital Reserve | 3,992,128,401.05 | 4,474,713,262.18 | -10.80% | Consolidated Income Statement Year-to-Date Year-to-date, total operating revenue decreased by 3.13%, operating profit by 27.79%, and net profit by 27.76%; financial expenses significantly reduced by 73.58%, while other income and fair value change gains notably increased Consolidated Income Statement (Year-to-Date) | Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 5,050,397,446.30 | 5,213,439,457.10 | -3.13% | | Operating Cost | 4,212,581,133.37 | 4,244,820,838.99 | -0.76% | | Selling Expenses | 21,233,426.19 | 26,124,387.26 | -18.72% | | Administrative Expenses | 92,647,753.10 | 116,644,584.51 | -20.57% | | R&D Expenses | 256,427,987.21 | 221,078,951.52 | 15.99% | | Financial Expenses | -42,062,411.54 | -159,235,531.04 | -73.58% | | Other Income | 60,823,435.06 | 31,969,563.41 | 90.25% | | Investment Income | -4,617,108.54 | -10,628,128.41 | 56.56% | | Gains from Fair Value Changes | 10,442,592.50 | -1,805,660.00 | 678.33% | | Credit Impairment Losses | 726,037.68 | -14,820,537.08 | -104.90% | | Asset Impairment Losses | -21,530,601.44 | -6,896,747.21 | 212.18% | | III. Operating Profit | 537,073,231.22 | 743,752,661.10 | -27.79% | | V. Net Profit | 496,985,968.63 | 687,862,534.06 | -27.76% | | Net Profit Attributable to Parent Company Shareholders | 494,265,422.45 | 686,732,677.01 | -28.03% | | Basic Earnings Per Share | 0.3683 | 0.5218 | -29.42% | Consolidated Cash Flow Statement Year-to-Date Year-to-date, net operating cash flow surged 297.77% to RMB 817 million due to increased sales; investing cash outflow decreased, but financing cash inflow dropped significantly, turning net financing cash flow negative Consolidated Cash Flow Statement (Year-to-Date) | Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 5,624,297,171.82 | 4,081,748,934.70 | 37.78% | | Cash Received Relating to Other Operating Activities | 204,230,803.84 | 143,347,901.28 | 42.48% | | Cash Paid for Goods and Services | 4,363,629,214.17 | 4,191,157,448.03 | 4.11% | | Cash Paid to and on Behalf of Employees | 435,569,355.58 | 359,340,713.93 | 21.21% | | Net Cash Flow from Operating Activities | 817,005,984.24 | -413,113,053.92 | 297.77% | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-term Assets | 366,815,585.16 | 427,408,748.09 | -14.29% | | Cash Paid for Investments | 32,493,041.42 | 294,596,850.89 | -88.99% | | Net Cash Flow from Investing Activities | -397,732,235.40 | -632,588,927.81 | 37.13% (Outflow decreased) | | Cash Received from Investments | 14,889,710.13 | 3,349,064,462.13 | -99.56% | | Cash Received from Borrowings | 724,045,196.27 | 912,179,308.31 | -20.62% | | Cash Paid for Repayment of Debts | 1,332,678,391.83 | 1,149,532,001.20 | 15.93% | | Net Cash Flow from Financing Activities | -632,439,062.02 | 2,793,933,430.54 | -122.60% (Turned from positive to negative) | | Net Increase in Cash and Cash Equivalents | -213,930,280.44 | 1,910,158,223.80 | -111.20% | Adjustments to Financial Statement Items at the Beginning of the First Year of Adopting New Accounting Standards from 2023 Effective January 1, 2023, the company adopted 'Interpretation No. 16 of Accounting Standards' for deferred income tax on single transactions, which had no net impact on the consolidated balance sheet after offsetting - Effective January 1, 2023, the company adopted the Ministry of Finance's 'Interpretation No. 16 of Accounting Standards for Business Enterprises' regarding the accounting treatment that deferred income tax related to assets and liabilities arising from a single transaction is not exempt from initial recognition[22] - This accounting policy change led to the separate recognition of deferred income tax assets and liabilities for lease liabilities and right-of-use assets involved in single transactions at the beginning of the first year of adoption; however, the net amount after offsetting deferred tax assets and liabilities was equal to the amount originally recognized on a net basis, thus having no impact on consolidated balance sheet items[22][23] Deferred Income Tax Impact | Item | Before Policy Change (RMB) | Impact of Change (RMB) | After Policy Change (RMB) | | :--- | :--- | :--- | :--- | | Deferred Income Tax Assets Before Offsetting | 25,930,062.84 | 1,185,295.64 | 27,115,358.48 | | Deferred Income Tax Liabilities Before Offsetting | 55,807,343.20 | 1,185,295.64 | 56,992,638.84 | | Offset Amount | 24,191,748.14 | 1,185,295.64 | 25,377,043.78 | | Deferred Income Tax Assets After Offsetting | 1,738,314.70 | - | 1,738,314.70 | | Deferred Income Tax Liabilities After Offsetting | 31,615,595.06 | - | 31,615,595.06 | Audit Report The company's 2023 third-quarter report is unaudited - The company's third-quarter report is unaudited[25]