XLKG(SZ:000955)2024-04-29 11:25Important Content Disclosure Statement by the Board of Directors, Supervisory Board, and Management The company's board, supervisory board, and management declare the quarterly report's content is true, accurate, and complete, assuming legal responsibility - The Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report and assume legal responsibility3 - The company's principal, head of accounting, and head of accounting department declare to ensure the truthfulness, accuracy, and completeness of financial information3 Key Financial Data Key Accounting Data and Financial Indicators The company experienced a significant year-over-year decline in Q3 and YTD 2023 operating revenue, but net loss attributable to shareholders narrowed substantially due to non-recurring gains and reduced asset impairment losses Key Financial Indicators for Q3 2023 and Year-to-Date | Indicator | Current Period (2023 Q3, RMB) | Prior Year Period (2022 Q3, RMB) | YoY Change | Year-to-Date (2023 YTD, RMB) | Prior Year Period (2022 YTD, RMB) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 147.21 million | 211.43 million | -30.37% | 409.11 million | 591.10 million | -30.79% | | Net Profit Attributable to Shareholders | -7.83 million | -94.50 million | 91.71% | -11.20 million | -115.12 million | 90.27% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Gains/Losses) | -9.67 million | -95.45 million | 89.87% | -26.65 million | -118.75 million | 77.56% | | Net Cash Flow from Operating Activities | — | — | — | -1.05 million | -13.37 million | 92.18% | | Basic Earnings Per Share (RMB/share) | -0.0145 | -0.1755 | 91.74% | -0.0208 | -0.2138 | 90.27% | | Diluted Earnings Per Share (RMB/share) | -0.0145 | -0.1755 | 91.74% | -0.0208 | -0.2138 | 90.27% | | Weighted Average Return on Net Assets | -1.14% | -12.67% | 11.53% | -1.63% | -15.22% | 13.59% | | Period-End Indicators | Current Period End (RMB) | Prior Year End (RMB) | Change vs. Prior Year End | | | | | Total Assets | 961.50 million | 1,057.90 million | -9.11% | | | | | Owners' Equity Attributable to Shareholders | 682.25 million | 693.44 million | -1.61% | | | | - The company retrospectively adjusted prior-period comparative data due to the implementation of 'Interpretation No. 15 of Accounting Standards for Business Enterprises,' resulting in an increase of 13.90 million RMB in operating costs and a decrease of 13.90 million RMB in R&D expenses5 Non-Recurring Gains and Losses Items and Amounts Year-to-date non-recurring gains and losses totaled 15.45 million RMB, primarily from disposal of non-current assets, government grants, and fair value changes and investment income from financial assets Non-Recurring Gains and Losses Items and Amounts (Year-to-Date) | Item | Current Period Amount (RMB) | Year-to-Date Amount (RMB) | | :--- | :--- | :--- | | Non-current asset disposal gains and losses | -8.00 thousand | 10.80 million | | Government grants recognized in current profit or loss | 0.67 million | 2.55 million | | Fair value change gains and losses from transactional financial assets and investment income | 1.36 million | 3.25 million | | Other non-operating income and expenses | 76.31 thousand | -0.26 million | | Less: Income tax impact | 43.11 thousand | 0.18 million | | Minority interest impact (after tax) | 0.22 million | 0.71 million | | Total | 1.84 million | 15.45 million | - 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 – Non-Recurring Gains and Losses' as recurring gains and losses items78 Changes and Reasons for Key Accounting Data and Financial Indicators The company experienced significant changes across its balance sheet, income statement, and cash flow statement, with revenue declining over 30% but net loss narrowing due to increased investment income, fair value gains, and reduced asset impairment Balance Sheet Item Changes and Reasons (Period-End vs. Year-Beginning) | Balance Sheet Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Monetary Funds | -18.50% | Primarily due to repayment of matured bank loans | | Transactional Financial Assets | -14.15% | Primarily due to decrease in wealth management product balances | | Prepayments | 69.60% | Primarily due to higher prepayments for procurement during the interim reporting period | | Short-term Borrowings | -66.01% | Primarily due to repayment of matured short-term borrowings | | Contract Liabilities | -53.98% | Primarily due to decrease in advance receipts for goods | | Long-term Borrowings | -41.20% | Primarily due to repayment of matured long-term borrowings | Income Statement Item Changes and Reasons (Current Period vs. Prior Year Period) | Income Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | -30.79% | Weak macroeconomic recovery, unclear domestic demand, and weakening external demand leading to order decline; cessation of some inefficient businesses; adjustment of revenue recognition for some bulk trade businesses from "gross method" to "net method" | | Operating Costs | -31.83% | Consistent with the decrease in operating revenue | | Selling Expenses | -25.38% | Primarily due to decreased sales expenses resulting from lower revenue | | Administrative Expenses | -11.20% | Primarily due to reduced payroll expenses from business and personnel optimization | | Financial Expenses | -24.02% | Primarily due to decreased borrowing scale in the current period | | Investment Income | 459.72% | Primarily due to recovery of principal from Hongmian Fund investment in the current period | | Fair Value Change Gains | 349.53% | Primarily due to fair value changes in equity and other financial asset investments | | Asset Impairment Losses | 99.20% | Primarily due to asset impairment provisions for Yichang production base asset group and Hunan production base asset group in the prior period | | Income Tax Expense | -42.80% | Primarily due to decreased taxable income in the current period | Cash Flow Statement Item Changes and Reasons (Current Period vs. Prior Year Period) | Cash Flow Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 92.18% | Primarily due to reduced payroll expenses compared to the prior period | | Net Cash Flow from Investing Activities | 286.39% | Primarily due to reduced wealth management products for bank loan repayment based on overall fund arrangements in the current period | | Net Cash Flow from Financing Activities | -465.69% | Primarily due to overall decrease in bank borrowing scale in the current period | Shareholder Information Total Number of Common Shareholders and Top Ten Shareholders' Holdings As of the reporting period end, the company had 40,217 common shareholders, with Jiaxing Tiantang Silicon Valley Equity Investment Co., Ltd. as the largest shareholder at 10.24% - As of the end of the reporting period, the total number of common shareholders was 40,21712 Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiaxing Tiantang Silicon Valley Equity Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 10.24% | 55.14 million | None | 0 | | Hainan Zhuhua Ke Gongmao Co., Ltd. | Domestic Non-State-Owned Legal Person | 8.45% | 45.51 million | Pledged, Frozen | 45.51 million | | Jiaxing Silicon Valley Tiantang Yingyang Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.25% | 33.63 million | None | 0 | - Jiaxing Tiantang Silicon Valley Equity Investment Co., Ltd. and Jiaxing Silicon Valley Tiantang Yingyang Investment Partnership (Limited Partnership) are both controlled by Silicon Valley Tiantang Industrial Group Co., Ltd., forming a concerted action relationship