青岛中程(300208) - 2021 Q3 - 季度财报

I. Key Financial Data Key Accounting Data and Financial Indicators The company's financial performance significantly improved in Q3 2021 and year-to-date, with substantial growth in operating revenue and net profit attributable to shareholders, and a 617.05% surge in net cash flow from operating activities Key Accounting Data and Financial Indicators for Q3 2021 and Year-to-Date The company's financial performance significantly improved in Q3 2021 and year-to-date, with substantial growth in operating revenue and net profit attributable to shareholders, and a 617.05% surge in net cash flow from operating activities 2021 Q3 and Year-to-Date Key Financial Indicators | Indicator | Current Period (Yuan) | YoY Change in Current Period | Year-to-Date (Yuan) | YoY Change in Year-to-Date | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 363,570,019.02 | 101.98% | 1,220,024,029.85 | 124.37% | | Net Profit Attributable to Listed Company Shareholders | 7,434,425.44 | 116.90% | -12,893,671.56 | 15.17% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | 14,079,253.29 | 132.90% | -3,099,225.05 | 75.51% | | Net Cash Flow from Operating Activities | —— | —— | 361,328,164.09 | 617.05% | | Basic Earnings Per Share (Yuan/share) | 0.01 | 116.53% | -0.02 | 0.00% | | Diluted Earnings Per Share (Yuan/share) | 0.01 | 116.53% | -0.02 | 0.00% | | Weighted Average Return on Net Assets | 0.55% | 2.98% | -0.96% | -0.12% | 2021 Q3 End Asset and Liability Indicators | Indicator | End of Current Period (Yuan) | End of Previous Year (Yuan) | Change from Previous Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 4,615,279,395.91 | 4,600,691,210.48 | 0.32% | | Owners' Equity Attributable to Listed Company Shareholders | 1,330,734,109.04 | 1,369,330,997.20 | -2.82% | Non-Recurring Gains and Losses Items and Amounts The company's non-recurring gains and losses totaled -6,644,827.85 Yuan for the current period and -9,794,446.51 Yuan year-to-date, primarily influenced by non-operating income/expenses and income tax Non-Recurring Gains and Losses Items and Amounts | Item | Amount for Current Period (Yuan) | Amount for Year-to-Date (Yuan) | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | | -25,387.82 | | Government grants recognized in current profit and loss | 200,630.33 | 4,090,123.84 | | Gains or losses from changes in fair value and investment income | 338,456.61 | 841,200.89 | | Other non-operating income and expenses | -6,994,505.35 | -14,161,077.26 | | Less: Income tax impact | 33,146.51 | 223,088.23 | | Impact on minority interests (after tax) | 156,262.93 | 316,217.93 | | Total | -6,644,827.85 | -9,794,446.51 | Changes and Reasons for Key Accounting Data and Financial Indicators Several balance sheet and income statement items experienced significant changes, primarily driven by increased sales collections, project settlements, new lease accounting standards, overseas project advancements, and resumed trade operations - Cash and cash equivalents at period-end increased by 84.87% compared to the beginning of the year, mainly due to increased collection of sales proceeds[9] - Accounts receivable at period-end increased by 74.15% compared to the beginning of the year, primarily due to the settlement of the Philippines wind power project[9] - Prepayments at period-end increased by 154.86% compared to the beginning of the year, mainly due to increased advance payments for goods[9] - Notes payable at period-end increased by 707.39% compared to the beginning of the year, primarily due to increased payments for goods via notes[10] - Main business revenue increased by 124.37% year-over-year, primarily benefiting from new equipment procurement and sales, land lease contracts, and the smooth progress of trade business[11] - Administrative expenses increased by 57.17% year-over-year, mainly due to increased salaries for new labor personnel in overseas construction and project consulting fees[12] - Net cash flow from operating activities increased by 617.05% year-over-year, primarily due to increased collection of sales proceeds[13] II. Shareholder Information Total Common Shareholders and Top Ten Shareholders' Holdings This section details the company's shareholder structure, including the total number of common shareholders and the holdings of the top ten shareholders Total Common Shareholders and Voting Rights Restored Preferred Shareholders, and Top Ten Shareholders' Holdings As of the end of the reporting period, the company had 45,776 common shareholders, with Qingdao Urban Investment Financial Holdings Group Co., Ltd. as the largest shareholder at 22.19%, and several individual shareholders having pledged or frozen shares - Total common shareholders at the end of the reporting period: 45,776 households[15] Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Qingdao Urban Investment Financial Holdings Group Co., Ltd. | State-owned Legal Person | 22.19% | 166,315,691 | 0 | None | | Dai Yiming | Domestic Natural Person | 10.48% | 78,572,882 | 0 | Pledged 78,500,000 | | Jia Xiaoyu | Domestic Natural Person | 10.27% | 76,970,124 | 57,727,593 | Pledged 76,962,600, Marked 60,825,000 | | Qingdao Chengyuan Investment Management Co., Ltd. | State-owned Legal Person | 7.81% | 58,526,809 | 0 | None | | Jia Quanchen | Domestic Natural Person | 4.85% | 36,323,814 | 0 | Pledged 36,173,190, Frozen 36,323,814 | | Jia Yulan | Domestic Natural Person | 0.77% | 5,749,875 | 4,279,735 | Pledged 5,000,000 | | Hua Zhongfu | Domestic Natural Person | 0.75% | 5,631,000 | 0 | None | | Yan Dongmei | Domestic Natural Person | 0.40% | 3,000,000 | 0 | None | | Liu Yingzi | Domestic Natural Person | 0.34% | 2,523,203 | 0 | None | | Wang Jufen | Domestic Natural Person | 0.29% | 2,173,000 | 0 | None | - Qingdao Chengyuan Investment Management Co., Ltd. is a wholly-owned subsidiary of Qingdao Urban Investment Financial Holdings Group Co., Ltd., and they are parties acting in concert. Jia Quanchen and Jia Yulan are siblings, Jia Quanchen and Jia Xiaoyu are father and son, and Jia Yulan and Dai Yiming are mother and son[16] Preferred Shareholder Information The company has no preferred shareholders - The company has no preferred shareholders[17] Changes in Restricted Shares During the reporting period, the total number of restricted shares remained unchanged at 62,080,678 shares, primarily consisting of executive lock-up shares Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Unrestricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Jia Xiaoyu | 57,727,593 | 0 | 0 | 57,727,593 | Executive Lock-up Shares | | Jia Yulan | 4,279,735 | 0 | 0 | 4,279,735 | Executive Lock-up Shares | | Yuan Ruifeng | 20,625 | 0 | 0 | 20,625 | Executive Lock-up Shares | | Dong Dong | 52,725 | 0 | 0 | 52,725 | Executive Lock-up Shares | | Total | 62,080,678 | 0 | 0 | 62,080,678 | -- | - Restricted shares primarily consist of executive lock-up shares, with 25% of the total shares held at the end of the previous year released from lock-up at the beginning of each year[18] III. Other Significant Matters Significant Signed Orders and Progress This section covers significant signed orders, their progress, and important risk factors along with the company's corresponding mitigation strategies Significant Signed Orders and Progress Several major overseas projects, including Indonesia RKEF special smelting equipment, coal-fired power plant equipment, and EPC contracts, as well as the Philippines wind-solar integrated project, are progressing well, with significant revenue recognized, though the Philippines wind power project faces risks of delayed settlement payments - The Indonesia RKEF special smelting equipment EPC contract has cumulatively recognized revenue of 955.9137 million Yuan, with a completion progress of 87%[19][20] - The Indonesia Sulawesi PSDI 265MW coal-fired power plant equipment EPC contract has cumulatively recognized revenue of 658.6142 million Yuan, with a completion progress of 95%[21] - The wind power project within the Philippines wind-solar integrated project has been terminated; ELPI is obligated to pay the company 764.9848 million Yuan in settlement, but as of the report disclosure date, 202 million Yuan remains unpaid. The photovoltaic project has recognized revenue of 1,180.1450 million Yuan, with a completion progress of 95%, and is yet to be settled[22] - The Indonesia Sulawesi RKEF Phase I EPC contract has cumulatively recognized revenue of 307.9960 million Yuan, with a completion progress of 56%[23] - The Indonesia Sulawesi PSDI 265MW coal-fired power plant EPC contract has cumulatively recognized revenue of 444.8637 million Yuan, with a completion progress of 68%[23] Important Risk Factors and Countermeasures The company faces multiple risks including overseas epidemics, investment project implementation, foreign political environments, corporate management, international legal frameworks, and exchange rate fluctuations, with mitigation strategies encompassing optimized management, enhanced risk control, proactive financing, stakeholder communication, and improved legal contracts Risks from Overseas Epidemic Development The recurring global pandemic poses significant risks to the company's overseas operations, potentially causing project delays, especially in Indonesia and the Philippines, which the company addresses by optimizing organizational structure, increasing local hiring, and closely monitoring entry policies - The epidemic leads to risks of a shortage of Chinese staff for overseas projects, disrupted cross-border logistics, and extended delivery periods[23][24] - Countermeasures include adjusting and optimizing operational management strategies, increasing local staff recruitment, fully cooperating with epidemic prevention efforts, and staying informed about Philippines entry policies[24] Risks in Investment Project Implementation Overseas investment projects face risks from market changes, policy adjustments, cultural adaptation, market expansion, and human resource shortages, potentially leading to underperforming progress or returns, compounded by uncertainties in mineral reserves and prices, and the risk of credit impairment losses from delayed payments on the Philippines wind power project - Investment projects may not meet expected progress or returns due to issues such as market changes, policy adjustments, cultural environment, market expansion, and human resources[24] - The company's mining rights have not been fully explored, and actual reserves and mineral prices are subject to international bulk raw ore price fluctuations, leading to uncertainty[25] - The 202 million Yuan settlement payment for the Philippines wind power project is overdue, posing a risk of credit impairment loss[25] - Countermeasures include timely tracking of project progress, active financing, seeking partners, urging ELPI for repayment and taking legal action, and reasonably exploiting and selling minerals based on market conditions[26] Risks of Overseas Investment Political Environment The company's overseas operations, primarily in developing countries like Indonesia, the Philippines, and Zimbabwe, face risks from complex political environments, limited market access, policy changes, and commercial disputes, mitigated by maintaining strong government and embassy relations, collaborating with influential local enterprises, and engaging in social welfare initiatives - Overseas business in complex political environments may face risks of policy changes and commercial disputes[26] - Countermeasures include maintaining active communication with local governments and Chinese embassies abroad, obtaining "green channel" service permits in Indonesia, collaborating with influential enterprises in the Philippines, and establishing a good political foundation by launching scholarship programs in Zimbabwe[27][28] Corporate Management Risks As the company expands its group structure and asset scale, it faces management risks in strategic planning, organizational design, operations, resource integration, market development, internal control, mechanism establishment, and post-acquisition business, personnel, and cultural integration, addressed by improving organizational structure, strengthening talent development, innovating management mechanisms, implementing competitive compensation, and respecting local cultures - Company expansion brings management challenges in strategic planning, organizational design, operations, resource integration, internal control, and post-acquisition integration of business, personnel, and culture[28] - Countermeasures include improving organizational structure, strengthening talent development, establishing a standardized corporate governance structure, innovating management mechanisms, formulating a competitive compensation system, signing confidentiality agreements with core personnel, and respecting the local culture of overseas acquired enterprises[29] Legal Risks of Overseas Investment The differing legal enforcement environments and inconsistent laws in overseas project locations pose risks to contract signing, performance, and dispute resolution, which the company mitigates by collaborating with experienced Chinese firms, refining contract terms, and seeking cross-border legal services - Overseas projects face risks in contract signing, performance, and dispute resolution due to inconsistencies between domestic and foreign laws and enforcement environments[29] - Countermeasures include selecting experienced Chinese companies for cooperation, improving overseas business contract content, locking in applicable laws and regulations, and establishing cooperative relationships with law firms familiar with cross-border legal services[30] Exchange Rate Fluctuation Risks Overseas cooperation projects are exposed to exchange rate fluctuation risks, which the company continuously analyzes and researches to prevent and mitigate - Overseas cooperation projects are exposed to exchange rate fluctuation risks[30] - The countermeasure is to continuously strengthen the analysis and research of international situations and exchange rate fluctuations[30] IV. Quarterly Financial Statements Financial Statements This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the third quarter and year-to-date 2021, along with explanations for financial statement adjustments Financial Statements The company disclosed its consolidated balance sheet as of Q3 2021, and consolidated income and cash flow statements for the year-to-date period, presenting specific data on assets, liabilities, equity, operating results, and cash flows Consolidated Balance Sheet As of September 30, 2021, total assets were 4.615 billion Yuan, a slight increase from year-end, with significant changes in current assets including cash, accounts receivable, prepayments, other receivables, notes payable, and other payables Consolidated Balance Sheet Key Items (September 30, 2021 vs December 31, 2020) | Item | September 30, 2021 (Yuan) | December 31, 2020 (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 254,657,328.15 | 137,752,644.98 | +84.87% | | Financial Assets Held for Trading | 5,000,000.00 | 29,160,000.00 | -82.85% | | Accounts Receivable | 816,409,545.50 | 468,802,899.16 | +74.15% | | Prepayments | 101,254,616.42 | 39,728,899.40 | +154.86% | | Other Receivables | 13,327,855.49 | 2,827,564.95 | +371.35% | | Inventories | 107,832,955.69 | 171,716,848.07 | -37.20% | | Right-of-Use Assets | 10,521,539.59 | 0 | New | | Other Non-Current Assets | 94,720,390.24 | 65,967,547.55 | +43.59% | | Notes Payable | 358,671,652.94 | 44,423,780.24 | +707.39% | | Contract Liabilities | 54,579,388.62 | 78,339,817.07 | -30.33% | | Other Payables | 1,084,368,029.90 | 791,107,064.76 | +37.87% | | Non-Current Liabilities Due Within One Year | 100,250,000.00 | 0 | New | | Other Current Liabilities | 362,371.66 | 10,624,325.58 | -96.59% | | Provisions | 11,530,665.47 | 8,075,091.39 | +42.79% | | Deferred Income | 4,998,906.89 | 0 | New | | Total Owners' Equity Attributable to Parent Company | 1,330,734,109.04 | 1,369,330,997.20 | -2.82% | Consolidated Income Statement Year-to-Date As of September 30, 2021, total operating revenue reached 1.22 billion Yuan, a 124.37% increase year-over-year, with net profit attributable to parent company shareholders at -12.8937 million Yuan, narrowing the loss from the prior year, and operating profit turning positive despite a significant increase in income tax expense Consolidated Income Statement Key Items (Year-to-Date) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,220,024,029.85 | 543,750,515.21 | +124.37% | | Total Operating Costs | 1,196,689,564.24 | 630,710,315.48 | +89.74% | | Operating Costs | 980,476,404.59 | 452,795,136.20 | +116.55% | | Selling Expenses | 11,641,124.07 | 7,959,603.14 | +46.25% | | Administrative Expenses | 89,659,455.94 | 57,045,357.15 | +57.17% | | Research and Development Expenses | 3,534,439.87 | 2,652,185.13 | +33.27% | | Credit Impairment Losses | -42,603,009.23 | 80,745,882.09 | -152.76% | | Asset Impairment Losses | 32,470,894.23 | 0 | New | | Operating Profit | 17,317,379.84 | -2,557,440.22 | Turned from Loss to Profit | | Total Profit | 4,656,302.58 | -8,877,075.50 | Turned from Loss to Profit | | Income Tax Expense | 20,906,335.66 | -1,128,696.04 | +1952.26% | | Net Profit | -16,250,033.08 | -7,748,379.46 | Loss Widened | | Net Profit Attributable to Parent Company Owners | -12,893,671.56 | -15,199,650.91 | Loss Narrowed | | Total Comprehensive Income | -50,491,610.80 | -100,739,531.17 | Loss Narrowed | | Basic Earnings Per Share (Yuan/share) | -0.02 | -0.02 | Unchanged | Consolidated Cash Flow Statement Year-to-Date As of September 30, 2021, net cash flow from operating activities was 361 million Yuan, a 617.05% year-over-year increase, primarily due to increased cash received from sales and services, while net cash outflows from investing and financing activities both narrowed Consolidated Cash Flow Statement Key Items (Year-to-Date) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Provision of Services | 1,278,324,565.26 | 590,231,286.64 | +116.58% | | Subtotal of Cash Inflows from Operating Activities | 1,389,064,347.15 | 810,014,436.76 | +71.49% | | Cash Paid for Goods and Services | 879,868,858.37 | 627,220,082.07 | +40.27% | | Net Cash Flow from Operating Activities | 361,328,164.09 | 50,391,113.20 | +617.05% | | Subtotal of Cash Inflows from Investing Activities | 178,131,191.06 | 18,589,286.57 | +858.24% | | Subtotal of Cash Outflows from Investing Activities | 214,061,219.63 | 63,593,662.78 | +236.60% | | Net Cash Flow from Investing Activities | -35,930,028.57 | -45,004,376.21 | Loss Narrowed | | Subtotal of Cash Inflows from Financing Activities | 1,247,283,623.81 | 626,010,726.94 | +99.24% | | Cash Paid for Debt Repayment | 1,253,779,914.00 | 898,616,137.63 | +39.52% | | Net Cash Flow from Financing Activities | -287,760,411.91 | -356,650,202.79 | Loss Narrowed | | Net Increase in Cash and Cash Equivalents | 37,093,186.81 | -352,963,400.11 | Turned from Negative to Positive | | Cash and Cash Equivalents at End of Period | 147,648,398.66 | 91,352,527.31 | +61.63% | Explanation of Financial Statement Adjustments Effective 2021, the company adopted new lease accounting standards, adjusting opening financial statements, primarily by adding "Right-of-Use Assets" and "Lease Liabilities" accounts, each with an adjustment of 14,551,065.40 Yuan - The company adopted new lease accounting standards for the first time starting in 2021, adjusting the opening balance sheet[42] Impact of New Lease Standards on Opening Balance Sheet | Item | December 31, 2020 (Yuan) | January 01, 2021 (Yuan) | Adjustment Amount (Yuan) | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 0 | 14,551,065.40 | 14,551,065.40 | | Lease Liabilities | 0 | 14,551,065.40 | 14,551,065.40 | | Total Non-Current Assets | 1,487,347,865.79 | 1,501,898,931.19 | 14,551,065.40 | | Total Assets | 4,600,691,210.48 | 4,615,242,275.88 | 14,551,065.40 | | Total Non-Current Liabilities | 609,075,091.39 | 623,626,156.79 | 14,551,065.40 | | Total Liabilities | 3,200,317,497.05 | 3,214,868,562.45 | 14,551,065.40 | - The company did not retrospectively adjust prior period comparative data[47] Audit Report The company's Q3 2021 report is unaudited - The company's third-quarter report is unaudited[47]