Stock Code: 301330 Abbreviation of Securities: ZKTECO Announcement No.: 2023-075
ZKTECO CO., LTD.2023 3
rdQuarter ReportThe Company and all members of the Board of Directors guarantee thatthe information disclosed is true, accurate, and complete, without any falserecords, misleading statements or material omissions.
Important content tips:
1. The Board of Directors, the Board of Supervisors, directors, supervisors, and senior management guaranteethat the information presented in this report is true, accurate and complete without any false records, misleadingstatements or material omissions, and will undertake individual and joint legal liabilities.
2. The Company's legal representative, the person in charge of the accounting work, and the person in chargeof accounting institution (accounting supervisor) hereby declare that the financial information in this report is true,accuracy, and complete.
3. Whether the 3
rdquarter report has been audited
□ Yes ?No
I. Key Financial Data(I) Main Accounting Data and Financial IndicatorsWhether the Company performed a retroactive adjustment or restatement of the previous accounting data?Yes □ NoReasons for retroactive adjustment or restatement of the previous accounting dataAccounting policy change
| Current reporting period | The same period last year | YoY change during the reporting period | From the beginning of 2023 to the end of the reporting period | The same period last year | Increase/decrease in this reporting period compared to the same period last year | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | After adjustment | |||
| Operating revenue (RMB) | 502,800,942.03 | 478,423,074.51 | 478,423,074.51 | 5.10% | 1,439,983,612.03 | 1,403,538,024.67 | 1,403,538,024.67 | 2.60% |
| Net profit attributable to shareholders of listed companies (RMB) | 49,889,198.20 | 63,927,831.56 | 64,035,685.03 | -22.09% | 138,643,533.82 | 134,193,053.52 | 134,267,346.46 | 3.26% |
| Net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses (RMB) | 50,126,505.67 | 60,059,763.70 | 60,167,617.17 | -16.69% | 144,602,982.17 | 134,062,594.86 | 134,136,887.80 | 7.80% |
| Net cash flows from operating activities (RMB) | - | - | - | - | 183,302,835.87 | -1,672,945.85 | -1,672,945.85 | 11,056.89% |
| Basic earnings per share (RMB/share) | 0.2100 | 0.5166 | 0.3805 | -44.81% | 0.7182 | 1.1619 | 0.8390 | -14.40% |
| Diluted earnings per share (RMB/share) | 0.2097 | 0.5166 | 0.3805 | -44.89% | 0.7141 | 1.1619 | 0.8390 | -14.89% |
| Weighted average return on net assets | 1.58% | 3.22% | 3.23% | -1.65% | 4.44% | 8.30% | 8.30% | -3.86% |
| At the end of this reporting period | At the end of the previous year | Increase or decrease at the end of this reporting period | ||||||
| compared to the end of the previous year | ||||
| Before adjustment | After adjustment | After adjustment | ||
| Total assets (RMB) | 3,800,739,623.17 | 3,655,960,456.30 | 3,662,519,973.00 | 3.77% |
| Owner's equity attributable to shareholders of the listed company (RMB) | 3,187,091,264.83 | 3,057,467,189.68 | 3,057,720,783.95 | 4.23% |
Reasons for changes in accounting policies and situations of correction of accounting errorsOn November 30, 2022, the Ministry of Finance issued and implemented the "Interpretation No. 16 of the Accounting Standards forBusiness Enterprises", which stipulates that "deferred income tax related to assets and liabilities arising from individual transactionsshall not be subject to the accounting treatment of initial recognition exemption". The Company shall implement it from January 1,2023. For the lease liabilities and right-of-use assets recognized due to the application of this regulation in the earliest period of financialstatement presentation for the first time, as well as the estimated liabilities and corresponding assets related to the disposal obligationrecognized, which generate taxable temporary differences and deductible temporary differences, the Company shall adjust thecumulative impact to present the initial retained earnings and other related financial statement items for the earliest period in thefinancial statements in accordance with this regulation and the provisions of "Accounting Standards for Enterprises No. 18 - IncomeTax".
(II) Items and Amounts of Non-recurring Gains and Losses
?Applicable □ Not applicable
Unit: RMB
| Item | Amount during this reporting period | Amount from the beginning of 2023 to the end of the reporting period | Remarks |
| Losses and gains from disposal of non-current assets (including the offsetting portion of the provision for asset impairment) | -197,525.38 | -631,161.14 | |
| Government subsidies included in current profits and losses (except those closely related to the normal business of the Company, which are in line with national policies and regulations and continue to be enjoyed in accordance with certain standards or quotas) | 1,594,646.45 | 4,607,003.37 | |
| Capital occupancy fees charged to non-financial enterprises included in current profits and losses | 12,920.94 | 39,527.94 | |
| In addition to the effective hedging business related to the normal business of the Company, the profits and | 1,139,553.13 | -6,670,356.22 | Mainly due to investment gains and losses and changes in fair value generated by partial forward exchange |
| losses from fair value changes arising from the holding of trading financial assets and trading financial liabilities as well as investment income from the disposal of trading financial assets, trading financial liabilities and available-for-sale financial assets | settlement to hedge against exchange rate fluctuations risk | ||
| Other non-operating income and expenses other than the above items | -2,517,579.47 | -2,647,690.57 | |
| Less: income tax impact | 268,332.89 | 725,943.44 | |
| Minority interest impact (after tax) | 990.25 | -69,171.71 | |
| Total | -237,307.47 | -5,959,448.35 | - |
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□ Applicable ?Not applicable
The Company does not have other specific conditions of profit and loss items that meet the definition of non-recurring profit and loss.Explanations on classifying any non-recurring gain/loss item mentioned in the "Explanatory Announcement for Information Disclosureby Companies that Issue Securities to the Public No. 1 - Non-recurring Gains and Losses" as recurring Gain/loss item.
□ Applicable ?Not applicable
The Company does not classify any non-recurring gain/loss item mentioned in the "Explanatory Announcement for InformationDisclosure by Companies that Issue Securities to the Public No. 1 - Non-recurring Gains and Losses" as recurring gain/loss item.(III) Changes and Reasons for Changes in Key Accounting Data and Financial Indicators
?Applicable □ Not applicableDuring the reporting period, the operating revenue and gross profit increased by RMB 24.3779 million and RMB 34.0113 millionrespectively compared to the same period last year, an increase of 5.10% and 16.16%, respectively. However, the net profit attributableto shareholders of the listed company decreased by RMB 14.1465 million or 22.09% compared to the same period last year, mainlydue to the following reasons:
(1) The recognized share-based payment amount generated by equity incentives during this reporting period is RMB 10.7791million, which was not included in the same period last year;
(2) During this reporting period, the Company further increased its R&D investment, with R&D expenses (excluding share-basedpayment) increasing by 13.40% compared to the same period last year;
(3) During this reporting period, the sales department's advertising and promotional expenses, exhibition expenses, and personnelcompensation expenses for expanding the market increased significantly, with sales expenses (excluding share-based payment)increasing by 8.26% compared to the same period last year;
(4) The USD to RMB exchange rate increased significantly during the same period last year, resulting in significant exchangegains. However, during this reporting period, the fluctuation of USD to RMB exchange rate was relatively small, and there were certainexchange losses.
| Balance Sheet Items | September 30, 2023 | January 1, 2023 | Change ratio | Reasons |
| Trading financial asset | 81,448,599.23 | 204,318,406.05 | -60.14% | Mainly due to the redemption of structured wealth management products upon maturity |
| Construction in | 121,456,375.48 | 57,041,298.90 | 112.93% | Mainly due to the Company's |
| progress | construction of a multimodal biometrics digitalization industrial base project, resulting in an increase in investment in this period | |||
| Notes payable | 141,733,753.49 | 68,293,818.22 | 107.54% | Mainly due to a small number of payable bills issued at the end of 2022 and an increase in procurement volume in 2023 |
| Income Statement Items | January - September 2023 | January - September 2022 | Change ratio | Reasons |
| Financial expenses | -44,978,271.11 | -34,685,171.83 | -29.68% | Mainly due to the increase in interest income from current fund deposits |
Other income
| Other income | 8,430,892.85 | 12,226,993.76 | -31.05% | Mainly due to the lack of relevant subsidies for the subsidy projects for the same period last year in this period |
| Income from changes in fair value | -1,955,731.23 | -722,849.81 | 170.56% | Mainly due to losses generated by partial forward exchange settlement to hedge against exchange rate fluctuations risk |
Losses from creditimpairment
| Losses from credit impairment | -4,162,381.02 | -2,775,855.38 | 49.95% | Mainly due to an increase in accounts receivable leading to an increase in bad debt reserves |
| Cash Flow Statement Items | January - September 2023 | January - September 2022 | Change ratio | Reasons |
| Net cash flows from operating activities | 183,302,835.87 | -1,672,945.85 | 11056.89% | Mainly due to an increase in cash received from selling goods and providing services in the current period and a decrease in cash paid for purchasing goods and receiving services |
| Net cash flows from operating activities | -182,299,863.94 | -12,040,820.80 | -1414.02% | Mainly due to the increase in cash paid for purchasing wealth management products, investment in ongoing projects, and external investment payments in this period |
| Net cash flows from financing activities | -86,869,563.26 | 1,433,962,592.96 | -106.06% | Mainly due to the receipt of funds raised from the listing during the same period last year |
Net increase in cashand cash equivalents
| Net increase in cash and cash equivalents | -83,173,247.43 | 1,453,069,177.47 | -105.72% | Mainly due to a decrease in net cash flow from investing activities and financing activities in the current period |
II. Shareholder Information(I) Table of the Total Number of Common Shareholders and the Number of Preferred Shareholders withResumed Voting Rights and Information about Top Ten Shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 18,034 | Total number of preferred shareholders whose voting rights have been recovered at the end of the reporting period (if any) | 0 | |||
| Particulars about the top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Number of shares with trading restrictions | Pledged, marked or frozen | |
| Share status | Amount | |||||
| Shenzhen ZKTeco Times Investment Co., Ltd. | Domestic non state-owned legal persons | 30.30% | 58,500,000 | 58,500,000 | ||
| Che Quanhong | Domestic individual | 17.62% | 34,022,300 | 34,022,300 | ||
| Shenzhen JYSJ Investment Enterprise (Limited Partnership) | Domestic non state-owned legal persons | 7.31% | 14,107,600 | 10,580,700 | ||
| Shenzhen JYHY Investment Enterprise (Limited Partnership) | Domestic non state-owned legal persons | 7.21% | 13,921,050 | 10,440,787 | ||
| Dongguan LX Investment Partnership (Limited Partnership) | Domestic non state-owned legal persons | 5.12% | 9,880,000 | 9,880,000 | ||
| Shenzhen JYLX Consulting Enterprise (Limited Partnership) | Domestic non state-owned legal persons | 2.46% | 4,748,380 | 3,561,285 | ||
| Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. - Qingdao Walden Zhongxiang Investment Centre (Limited Partnership) | Other | 1.76% | 3,396,302 | 0 | ||
| Shenzhen Fuhai Juanyong I Venture Investment Fund (Limited Partnership) | Domestic non state-owned legal persons | 1.35% | 2,612,540 | 0 | ||
| Shenzhen JYQL Investment and Consulting Enterprise (Limited Partnership) | Domestic non state-owned legal persons | 0.91% | 1,762,800 | 1,322,100 | ||
| Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. - Yiwu Walden Yuanjing Venture Capital Centre (Limited Partnership) | Other | 0.66% | 1,267,067 | 0 | ||
| Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s) | ||||||
| Name of shareholder | Number of shares without trading restrictions | Types of shares | ||||
| Type | Number | |||||
| Shenzhen JYSJ Investment Enterprise (Limited Partnership) | 3,526,900 | RMB denominated ordinary shares | 3,526,900 | |||
| Shenzhen JYHY Investment Enterprise (Limited Partnership) | 3,480,263 | RMB denominated ordinary shares | 3,480,263 | |||
| Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. - Qingdao Walden Zhongxiang Investment Centre (Limited Partnership) | 3,396,302 | RMB denominated ordinary shares | 3,396,302 | |||
| Shenzhen Fuhai Juanyong I Venture Investment Fund (Limited Partnership) | 2,612,540 | RMB denominated ordinary shares | 2,612,540 | |||
| Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. - Yiwu Walden Yuanjing Venture Capital Centre (Limited Partnership) | 1,267,067 | RMB denominated ordinary shares | 1,267,067 | |||
| Shenzhen JYLX Consulting Enterprise (Limited Partnership) | 1,187,095 | RMB denominated ordinary shares | 1,187,095 | |||
| Changjiang Wealth Asset Management - Bank | 1,098,092 | RMB | 1,098,092 | |||
| of Nanjing - Changjiang Wealth - ZKTeco Employee Strategic Placement No.1 Collective Asset Management Plan | denominated ordinary shares | |||
| Shenzhen Gohedge Fund Management Co., Ltd. - Gohedge Pearl No.1 Private Equity Fund | 799,630 | RMB denominated ordinary shares | 799,630 | |
| Zhu Yongjian | 779,713 | RMB denominated ordinary shares | 779,713 | |
| Liang Qiming | 700,000 | RMB denominated ordinary shares | 700,000 | |
| Explanation on associated relationship and concerted actions among above shareholders | The shareholder Che Quanhong holds 76.02% of the equity of Shenzhen ZKTeco Times Investment Co., Ltd., being the controlling shareholder of Shenzhen ZKTeco Times Investment Co., Ltd. Meanwhile, Che Quanhong holds 1.18% of the property share of shareholder Dongguan LX Investment Partnership (Limited Partnership). Che Quanzhong, the younger brother of shareholder Che Quanhong, holds a 23.98% stake in Shenzhen ZKTeco Times Investment Co., Ltd. Che Jun, the father of shareholder Che Quanhong, holds 98.68% of the property share of Dongguan LX Investment Partnership (Limited Partnership). The fund managers of shareholders Qingdao Walden Zhongxiang Equity Investment Center (Limited Partnership) and Yiwu Walden Yuanjing Venture Capital Center (Limited Partnership) are both Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. In addition, there is no affiliated relationship between the other shareholders of the Company. | |||
| Information on Top 10 shareholders of participating in margin trading and short selling business (if any) | The shareholder Shenzhen Gohedge Fund Management Co., Ltd. - Gohedge Pearl No.1 Private Equity Fund holds 674,570 shares of the Company through ordinary securities account, and 125,060 shares of the Company through a margin account of CITIC Securities Co., Ltd., totaling 799,630 shares of the Company. | |||
(II) Total Number of Preferred Shareholders and information about Top 10 Preferred Shareholders
□ Applicable ?Not applicable
(III) Changes in Restricted Shares
?Applicable □ Not applicable
Unit: share
| Name of shareholder | Number of restricted shares at the beginning of the period | Number of shares released from trading restrictions in this period | Increase in restricted shares in this period | Number of restricted shares at the end of the period | Reason for restrictions | Date of releasing from trading restrictions |
| Shenzhen ZKTeco Times Investment | 45,000,000 | 0 | 13,500,000 | 58,500,000 | Restricted shares before | February 17, 2026 |
| Co., Ltd. | IPO | |||||
| Che Quanhong | 26,171,000 | 0 | 7,851,300 | 34,022,300 | Restricted shares before IPO | February 17, 2026 |
| Shenzhen JYSJ Investment Enterprise (Limited Partnership) | 10,852,000 | 3,526,900 | 3,255,600 | 10,580,700 | Restricted shares before IPO | One quarter of the shares will be unlocked from August 17, 2023, until all shares are unlocked on August 17, 2026 |
| Shenzhen JYHY Investment Enterprise (Limited Partnership) | 10,708,500 | 3,480,263 | 3,212,550 | 10,440,787 | Restricted shares before IPO | One quarter of the shares will be unlocked from August 17, 2023, until all shares are unlocked on August 17, 2026 |
| Dongguan LX Investment Partnership (Limited Partnership) | 7,600,000 | 0 | 2,280,000 | 9,880,000 | Restricted shares before IPO | August 17, 2025 |
| Shenzhen JYLX Consulting Enterprise (Limited Partnership) | 3,652,600 | 1,187,095 | 1,095,780 | 3,561,285 | Restricted shares before IPO | One quarter of the shares will be unlocked from August 17, 2023, until all shares are unlocked on August 17, 2026 |
| Shenzhen Fuhai Juanyong I Venture Investment Fund (Limited Partnership) | 2,009,646 | 2,612,540 | 602,894 | 0 | Restricted shares before IPO | August 22, 2023 |
| Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. - Yiwu Walden Yuanjing Venture Capital Centre (Limited Partnership) | 1,406,752 | 1,828,777 | 422,025 | 0 | Restricted shares before IPO | August 22, 2023 |
| Huaxin Yuanchuang (Qingdao) Capital Management Co., Ltd. - Qingdao Walden Zhongxiang Investment Centre (Limited Partnership) | 2,612,540 | 3,396,302 | 783,762 | 0 | Restricted shares before IPO | August 22, 2023 |
| Shenzhen JYQL Investment and Consulting Enterprise (Limited Partnership) | 1,356,000 | 440,700 | 406,800 | 1,322,100 | Restricted shares before IPO | One quarter of the shares will be unlocked from August |
| 17, 2023, until all shares are unlocked on August 17, 2026 | ||||||
| Changjiang Wealth Asset Management - Bank of Nanjing - Changjiang Wealth - ZKTeco Employee Strategic Placement No.1 Collective Asset Management Plan | 1,733,148 | 2,253,092 | 519,944 | 0 | Restricted shares after IPO | August 22, 2023 |
| Changjiang Wealth Asset Management - Bank of Nanjing - Changjiang Wealth - ZKTeco Employee Strategic Placement No.2 Collective Asset Management Plan | 272,022 | 353,629 | 81,607 | 0 | Restricted shares after IPO | August 22, 2023 |
| Offline issuance restricted shares | 1,865,168 | 1,865,168 | 0 | 0 | Restricted shares after IPO | February 17, 2023 |
| Total | 115,239,376 | 20,944,466 | 34,012,262 | 128,307,172 | - | - |
III. Other Important Events
?Applicable □ Not applicable
1. Listing and circulation of some shares already issued before the initial public offering and strategic placement shares in theinitial public offeringSome of the shares already issued before the Company's initial public offering and the strategic placement shares in the initialpublic offering were lifted from restrictions and listed for circulation on August 22, 2023. The specific situation is as follows: there area total of 9 shareholders for which the restrictions were lifted, and the number of restricted shares listed for circulation is 19,079,298,accounting for 9.8836% of the Company's total share capital. Among them, there are 7 shareholders for which the restrictions havebeen lifted on shares issued before the initial public offering, and the number of shares is 16,472,577, accounting for 8.5333% of theCompany's total share capital. There 2 shareholders for which the restrictions on the initial public offering of strategic placement shareshave been lifted, and the number of shares is 2,606,721, accounting for 1.3504% of the Company's total share capital.
2. Bank Credit
On September 19, 2023, Dongguan Tangxia Sub-branch of Agricultural Bank of China Ltd. issued a "Credit Statement", grantingthe Company a credit line of RMB 280 million, with a validity period from September 19, 2023 to September 18, 2024. Among them,RMB 60 million is other exclusive credit lines, occupied by bank acceptance and guarantee deposits; RMB 40 million is a low riskcredit line, and 100% deposit is required for low risk businesses; RMB 180 million is a general credit line, RMB 5 million is used forhandling capital business on behalf of customers in branches, and the remaining RMB 175 million is used for handling bank acceptancebills, short-term working capital loans and trade financing business. Among them, RMB 80 million is used for credit, and the guaranteeway of the other RMB 100 million is pending. The specific use of credit shall be implemented in accordance with the managementmeasures for individual business, and the loan interest rate shall be implemented in accordance with the relevant regulations ofAgricultural Bank of China. The proportion of deposit for handling bank acceptance bills and letter of guarantee business shall not beless than 30%, with the bank acceptance bill handling fee within three months being 0.025% of the total invoicing amount.
IV. Quarterly Financial Statements(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by: ZKTECO CO., LTD.
September 30, 2023
Unit: RMB
| Item | September 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary funds | 2,005,821,024.37 | 1,912,945,031.97 |
| Deposit reservation for balance | ||
| Lendings to banks and other financial institutions | ||
| Trading financial asset | 81,448,599.23 | 204,318,406.05 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 456,433,009.21 | 403,497,924.27 |
| Receivable financing | ||
| Prepayment | 42,184,932.00 | 30,954,685.58 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reserves for reinsurance contract receivable | ||
| Other receivables | 38,499,739.75 | 34,207,287.53 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 338,300,015.56 | 348,280,641.59 |
| Contract assets | 301,199.94 | 306,799.94 |
| Held-for-sale assets | ||
| Non-current assets due within one year | 10,025,638.89 | |
| Other current assets | 15,077,688.43 | 17,861,354.81 |
| Total current assets | 2,978,066,208.49 | 2,962,397,770.63 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investment | 41,892,027.22 | 12,331,160.29 |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 7,050,362.49 | 7,151,332.70 |
| Other equity instrument investments | ||
| Other non-current financial assets | 24,000,000.00 | |
| Investment real estate | 23,555,781.87 | |
| Fixed assets | 433,815,082.69 | 446,857,509.06 |
| Construction in progress | 121,456,375.48 | 57,041,298.90 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use asset | 40,432,996.08 | 50,640,675.59 |
| Intangible assets | 66,003,240.17 | 68,110,512.79 |
| Development expenditures | ||
| Goodwill | 511,724.31 | 496,386.40 |
| Long-term deferred expenses | 2,235,140.03 | 3,056,310.34 |
| Deferred income tax assets | 59,853,160.31 | 53,309,238.98 |
| Other non-current assets | 1,867,524.03 | 1,127,777.32 |
| Total non-current assets | 822,673,414.68 | 700,122,202.37 |
| Total assets | 3,800,739,623.17 | 3,662,519,973.00 |
| Current liabilities: | ||
| Short-term loan | 9,855,000.00 | 9,855,000.00 |
| Borrowings from the Central Bank | ||
| Borrowings from banks and other financial institutions | ||
| Trading financial liabilities | 2,099,555.02 | |
| Derivative financial liabilities | ||
| Notes payable | 141,733,753.49 | 68,293,818.22 |
| Accounts payable | 186,666,309.76 | 226,000,476.96 |
| Advances from customer | ||
| Contract liabilities | 57,507,108.82 | 58,838,840.39 |
| Financial assets sold for repurchase | ||
| Deposit from customers and interbank | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Payroll payable | 39,601,916.38 | 58,940,852.80 |
| Taxes and dues payable | 32,058,524.43 | 22,621,805.04 |
| Other payables | 39,112,651.09 | 31,429,478.43 |
| Including: interest payable | 8,315.00 | |
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance accounts receivable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 22,194,903.29 | 23,718,225.39 |
| Other current liabilities | 14,216,429.01 | 21,173,620.79 |
| Total current liabilities | 545,046,151.29 | 520,872,118.02 |
| Non-current liabilities: | ||
| Reserves for insurance contracts | ||
| Long-term loan | 8,406,776.30 | 141,757.54 |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Lease liabilities | 19,131,141.53 | 28,256,717.44 |
| Long-term payables | ||
| Long-term payroll payable | ||
| Estimated liabilities | 600,000.00 | 600,000.00 |
| Deferred income | 1,900,087.84 | 2,039,702.49 |
| Deferred tax liability | 8,873,615.06 | 9,833,050.63 |
| Other non-current liabilities | 210,000.00 | |
| Total non-current liabilities | 39,121,620.73 | 40,871,228.10 |
| Total liabilities | 584,167,772.02 | 561,743,346.12 |
| Owner's equity: | ||
| Share capital | 193,039,666.00 | 148,492,051.00 |
| Other equity instruments | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Capital reserve | 2,047,020,545.38 | 2,061,172,912.28 |
| Less: treasury stock | ||
| Other comprehensive income | 17,558,092.62 | 5,254,175.81 |
| Special reserve | ||
| Surplus reserves | 53,975,085.77 | 53,975,085.77 |
| General risk reserves |
| Undistributed profits | 875,497,875.06 | 788,826,559.09 |
| Total owner's equity attributable to the parent company | 3,187,091,264.83 | 3,057,720,783.95 |
| Minority interests | 29,480,586.32 | 43,055,842.93 |
| Total owner's equity | 3,216,571,851.15 | 3,100,776,626.88 |
| Total liabilities and owner's equity | 3,800,739,623.17 | 3,662,519,973.00 |
Legal Representative: Jin Hairong Person in charge of accounting work: Wang Youwu Person in charge of accounting institution:
Fang Li
2. Consolidated income statement
Unit: RMB
| Item | 2023 Q3 | 2022 Q3 |
| I. Total operating revenue | 1,439,983,612.03 | 1,403,538,024.67 |
| Including: operating revenue | 1,439,983,612.03 | 1,403,538,024.67 |
| Interest income | ||
| Premium earned | ||
| Revenue from handling charges and commissions | ||
| II. Total operating cost | 1,262,912,308.23 | 1,251,733,742.80 |
| Including: operating cost | 747,237,863.64 | 797,056,661.33 |
| Interest expense | ||
| Expenses from handling charges and commissions | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net provisions for reserves in insurance liability contracts | ||
| Policy dividend expenses | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 14,487,429.74 | 12,086,514.72 |
| Selling expense | 296,766,809.25 | 257,199,618.38 |
| Administrative expense | 93,319,512.60 | 82,753,203.33 |
| R&D expenses | 156,078,964.11 | 137,322,916.87 |
| Financial expenses | -44,978,271.11 | -34,685,171.83 |
| Including: interest expenses | 2,461,347.10 | 2,310,259.45 |
| Interest income | 45,417,933.63 | 12,765,104.45 |
| Plus: other income | 8,430,892.85 | 12,226,993.76 |
| Investment income (loss expressed with "-") | -1,725,758.54 | -2,851,452.46 |
| Including: income from investment in associates and joint ventures | 1,812,820.04 | 1,887,556.49 |
| Gains from derecognition of financial assets measured at amortized cost | ||
| Gains from foreign exchange (loss expressed with "-") |
| Gains from net exposure hedging (loss expressed with "-") | ||
| Gains from changes in fair value (loss expressed with "-") | -1,955,731.23 | -722,849.81 |
| Losses from credit impairment (loss expressed with "-") | -4,162,381.02 | -2,775,855.38 |
| Losses from impairment of assets (loss expressed with "-") | -3,428,778.18 | -5,030,757.26 |
| Gains from disposal of assets (loss expressed with "-") | -234,164.39 | 14,745.57 |
| III. Operating profit (loss expressed with "-") | 173,995,383.29 | 152,665,106.29 |
| Plus: non-operating revenue | 780,799.31 | 748,112.04 |
| Less: non-operating expenditure | 3,823,995.51 | 1,877,488.95 |
| IV. Total profit (loss expressed with "-") | 170,952,187.09 | 151,535,729.38 |
| Less: income tax expenses | 16,266,701.41 | 5,533,749.41 |
| V. Net profit (loss expressed with "-") | 154,685,485.68 | 146,001,979.97 |
| (I) Classification by business continuity | ||
| 1. Net profit from continuing operations (net loss expressed with "-") | 154,685,485.68 | 146,001,979.97 |
| 2. Net profit from discontinued operations (net loss expressed with "-") | ||
| (II) Classification by ownership | ||
| 1. Net profit attributable to shareholders of the parent company (net loss expressed with "-") | 138,643,533.82 | 134,267,346.46 |
| 2. Minority shareholders' profit and loss (net loss expressed with "-") | 16,041,951.86 | 11,734,633.51 |
| VI. Other comprehensive income - after tax | 1,168,896.86 | 32,538,347.92 |
| Net of tax of other comprehensive income attributable to the owner of the parent company | 12,303,916.81 | 31,704,946.32 |
| (I) Other comprehensive income that cannot be transferred to profit or loss | ||
| 1. Changes in re-measurement of the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in the fair value of the Company's own credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income that will be reclassified into profit or loss | 12,303,916.81 | 31,704,946.32 |
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Change in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income |
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference of foreign currency financial statements | 12,303,916.81 | 31,704,946.32 |
| 7. Others | ||
| After-tax net amount of other comprehensive income attributable to the minority shareholders | -11,135,019.95 | 833,401.60 |
| VII. Total comprehensive income | 155,854,382.54 | 178,540,327.89 |
| (I) Total comprehensive income attributable to owners of the parent company | 150,947,450.63 | 165,972,292.78 |
| (II) Total comprehensive income attributable to minority shareholders | 4,906,931.91 | 12,568,035.11 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.7182 | 0.8390 |
| (II) Diluted earnings per share | 0.7141 | 0.8390 |
In the event of a merger of enterprise under the same control in the current period, the net profit realized by the combined partybefore the merger is RMB 0.00, and the net profit realized by the combined party in the previous period is RMB 0.00.Legal Representative: Jin Hairong Person in charge of accounting work: Wang Youwu Person in charge of accounting institution:
Fang Li
3. Consolidated Cash Flow Statement
Unit: RMB
| Item | 2023 Q3 | 2022 Q3 |
| I. Cash flows from operating activities: | ||
| Cash received from sale of goods and rendering of services | 1,487,266,012.39 | 1,429,208,395.73 |
| Net increase in deposits from customers and deposits in banks and other financial institutions | ||
| Net increase in borrowings from the Central Bank | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Cash received from receiving insurance premiums of original insurance contracts | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investments from policyholders | ||
| Cash received from interest, handling fees and commissions | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Net capital increase in repurchase business | ||
| Net cash received from vicariously traded securities | ||
| Refund of taxes and surcharges | 48,522,171.18 | 40,371,738.83 |
| Cash received from other operating activities | 34,026,186.26 | 59,468,312.19 |
| Subtotal of cash inflows from operating activities | 1,569,814,369.83 | 1,529,048,446.75 |
| Cash paid for purchase of goods and rendering of services | 729,304,911.13 | 905,799,976.85 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in Central Bank and other banks and financial institutions | ||
| Cash paid for original insurance contract claims | ||
| Net increase in lendings to banks and other financial institutions | ||
| Cash paid for interest, handling fees and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to and for employees | 412,108,352.14 | 376,666,397.24 |
| Payments of all types of taxes | 54,586,811.26 | 62,007,657.83 |
| Other cash payments relating to operating activities | 190,511,459.43 | 186,247,360.68 |
| Subtotal of cash outflows from operating activities | 1,386,511,533.96 | 1,530,721,392.60 |
| Net cash flows from operating activities | 183,302,835.87 | -1,672,945.85 |
| II. Cash flows from investing activities: | ||
| Cash received from disinvestment | 549,376,181.66 | 84,671,435.32 |
| Cash received from investment income | 2,499,098.17 | 1,333,253.66 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 343,862.87 | 381,494.14 |
| Net cash received from disposal of subsidiaries and other business units | 0.00 | |
| Cash received from other investing activities | 0.00 | |
| Subtotal of cash inflows from investing activities | 552,219,142.70 | 86,386,183.12 |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 108,652,539.76 | 60,109,142.96 |
| Cash paid for investments | 619,025,771.88 | 31,829,460.96 |
| Net increase in pledge loans | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Cash paid for other investing activities | 6,840,695.00 | 6,488,400.00 |
| Subtotal of cash outflows from investing activities | 734,519,006.64 | 98,427,003.92 |
| Net cash flows from operating activities | -182,299,863.94 | -12,040,820.80 |
| III. Cash flows from financing activities: | ||
| Cash received from investors | 2,445,378.21 | 1,486,667,165.16 |
| Including: cash received by subsidiaries from the absorption of minority shareholders' investments | 2,445,378.21 | |
| Cash received from borrowings | 8,500,000.00 |
| Cash received from other financing activities | 0.00 | |
| Subtotal of cash inflows from financing activities | 10,945,378.21 | 1,486,667,165.16 |
| Cash paid for debt repayments | 224,246.01 | 152,016.85 |
| Cash paid for distribution of dividends and profits or payment of interest | 73,168,224.18 | 6,423,466.51 |
| Including: dividends and profits paid to minority shareholders by subsidiaries | 21,116,705.95 | 6,403,557.60 |
| Cash paid for other financing activities | 24,422,471.28 | 46,129,088.84 |
| Subtotal of cash outflows from financing activities | 97,814,941.47 | 52,704,572.20 |
| Net cash flows from financing activities | -86,869,563.26 | 1,433,962,592.96 |
| IV. Effect of exchange rate changes on cash and cash equivalents | 2,693,343.90 | 32,820,351.16 |
| V. Net increase in cash and cash equivalents | -83,173,247.43 | 1,453,069,177.47 |
| Plus: beginning balance of cash and cash equivalents | 1,077,608,258.10 | 516,288,425.76 |
| VI. Closing balance of cash and cash equivalents | 994,435,010.67 | 1,969,357,603.23 |
(II) Implementation of new accounting standards adjustment for the first time starting from2023. Relevant project information on financial statements at the beginning of the year
?Applicable □ Not applicableAdjustment description
According to the relevant provisions of the "Interpretation No. 16 of the Accounting Standards for Business Enterprises",the Company has made the following adjustments to the beginning balance of 2023 for certain accounts in theconsolidated balance sheet:
Adjustment of some accounts involved in the consolidated balance sheet
Unit: RMB
| Item | December 31, 2022 | January 1, 2023 | Adjustments |
| Deferred income tax assets | 46,749,722.28 | 53,309,238.98 | 6,559,516.70 |
| Deferred tax liability | 3,557,844.83 | 9,833,050.63 | 6,275,205.80 |
| Other comprehensive income | 5,255,222.65 | 5,254,175.81 | -1,046.84 |
| Undistributed profits | 788,571,917.98 | 788,826,559.09 | 254,641.11 |
| Minority interests | 43,025,126.30 | 43,055,842.93 | 30,716.63 |
(III) Audit ReportWhether the 3
rd
Quarter Report has been audited
□ Yes ?No
The Company's Q3 Report has not been audited.
ZKTECO CO., LTD.Board of DirectorsOctober 27, 2023