CSN(600029)2018-10-30 16:00Financial Performance - Operating revenue for the first nine months reached RMB 108,889 million, up 13.27% year-on-year[6] - Net profit attributable to shareholders decreased by 40.78% to RMB 4,175 million compared to the same period last year[7] - Basic earnings per share fell by 43.66% to RMB 0.40[7] - Total operating revenue for Q3 2018 reached 41,334 million RMB, an increase of 15% compared to 35,805 million RMB in Q3 2017[32] - Net profit for Q3 2018 was 2,452 million RMB, a decrease of 51% from 5,010 million RMB in Q3 2017[33] - Total profit for Q3 2018 was 3,291 million RMB, a decline of 49% compared to 6,454 million RMB in Q3 2017[33] - Operating profit for Q3 2018 was 1,781 million RMB, a decrease from 4,067 million RMB in the same period last year[35] - The company reported a net profit margin improvement, with retained earnings rising to RMB 25,396 million from RMB 21,664 million, an increase of 17%[27] Assets and Liabilities - Total assets increased by 14.02% year-on-year to RMB 248,935 million[6] - Total liabilities increased to RMB 169,319 million from RMB 156,164 million, an increase of 8%[27] - Current assets rose significantly to RMB 32,239 million, up from RMB 17,884 million, marking an increase of 80%[25] - Cash and cash equivalents increased to RMB 15,852 million from RMB 7,250 million, a growth of 118%[25] - Current liabilities rose to RMB 85,984 million from RMB 69,577 million, a growth of 23%[26] - Long-term investments increased to RMB 6,048 million from RMB 4,045 million, a growth of 49%[25] - Fixed assets increased to RMB 167,427 million from RMB 158,255 million, reflecting a growth of 6%[26] Shareholder Information - Net assets attributable to shareholders rose by 33.49% to RMB 66,201 million compared to the end of the previous year[6] - The number of shareholders reached 243,032 by the end of the reporting period[9] - The top shareholder, China Southern Airlines Group, holds 36.92% of the shares[10] - The company did not pay dividends to minority shareholders during the reporting period, resulting in a decrease in cash outflow for dividends[16] - The company reaffirmed its commitment to shareholder returns, announcing a dividend of 0.50 per share for Q3 2018[43] Cash Flow - Cash flow from operating activities for the first nine months was RMB 16,457 million, down 3.90% year-on-year[6] - Cash inflow from operating activities totaled 121,941 million RMB, an increase of 17.2% from 104,208 million RMB in the same period last year[38] - Cash outflow from operating activities was 105,484 million RMB, up from 87,084 million RMB year-over-year[38] - Cash inflow from the issuance of bonds increased by 50.00% to RMB 1,500 million, reflecting an increase in bond issuance[16] - The cash and cash equivalents at the end of Q3 2018 stood at 15,748 million RMB, compared to 6,225 million RMB at the end of Q3 2017[39] Investment and Financing Activities - The company raised approximately RMB 9.5 billion through a non-public offering of 1,578,073,089 A-shares at a price of RMB 6.02 per share[18] - The company issued 600,925,925 H-shares at a price of HKD 6.034 per share, completing the issuance on September 11, 2018[17] - The company has provided guarantees totaling approximately USD 36.32 billion (RMB 232.43 billion) for newly established and existing SPVs[19] - Investment activities generated a net cash flow of -9,469 million RMB, worsening from -5,016 million RMB in the previous year[39] - Financing activities produced a net cash flow of 1,583 million RMB, a significant improvement from -10,616 million RMB in the same period last year[39] Other Income and Expenses - Other income rose by 43.30% to RMB 2,429 million, mainly due to an increase in government subsidies[15] - Total financial expenses increased by 402.33% to RMB 4,531 million, primarily due to foreign exchange losses of RMB 2.008 billion in the first nine months of 2018 compared to a gain of RMB 1.248 billion in the same period last year[15] - The company reported a decrease in investment income by 32.52% to RMB 525 million, primarily due to a decline in profits from investee companies[15] - Operating expenses increased by 5% to 8 million, primarily due to higher marketing costs[43] Future Outlook and Strategic Initiatives - The company provided a future outlook, projecting a revenue growth of 20% for Q4 2018, driven by new product launches[43] - New product development includes the upcoming release of a flagship product expected to contribute an additional 5 million in revenue[43] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2019[43] - A strategic acquisition was announced, with the company acquiring a tech startup for 10 million to enhance its product offerings[43] - The company plans to invest 2 million in R&D for new technologies aimed at improving user experience[43] User Data - User data showed an increase in active users by 10% compared to the previous quarter, reaching 1.5 million active users[43]