Hangzhou Robam Appliances Co., Ltd.
Q3 2021 Report
October 2021
Stock code: 002508 Stock name: Robam Appliances Announcement No.: 2021-053
Hangzhou Robam Appliances Co., Ltd.
Q3 2021 Report
Important Notes
1. The Board of Directors, the Board of Supervisors, as well as the directors, supervisors and seniormanagement of the Company hereby guarantee that there are no false representations, misleading statementsor material omissions in the Report, and are severally and jointly liable for the authenticity, accuracy andcompleteness of the information contained herein.
2. The head of the Company, the person in charge of the Company’s accounting and the head of theaccounting department (the accountant in charge) hereby declare and warrant that the financial reportcontained in the Report is authentic, accurate, and complete.
3. Whether the Q3 report has been audited？
□ Yes √ No
I. Key Financial Data
(I) Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years?
□ Yes √ No
Hangzhou Robam Appliances Co., Ltd. (the Company) and all members of its Board of Directorshereby guarantee that there are no false representations, misleading statements or material omissions inthis Quarterly Report (“the Report”), and the information contained herein is authentic, accurate andcomplete.
| The reporting period | YoY change | From the beginning of the year to the end of the reporting period | YoY change | |
| Operating income (RMB) | 2,744,769,787.56 | 13.65% | 7,070,851,819.18 | 25.68% |
| Net profit attributable to shareholders of the listed company (RMB) | 552,072,334.14 | 8.14% | 1,342,461,093.93 | 19.56% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains/losses (RMB) | 544,600,920.87 | 7.72% | 1,290,986,292.08 | 22.15% |
| Net cash flow from operating activities (RMB) | —— | —— | 1,001,928,754.61 | 6.48% |
| Basic earnings per share (EPS) (RMB/share) | 0.58 | 8.14% | 1.42 | 20.34% |
| Diluted EPS (RMB/share) | 0.57 | 7.72% | 1.36 | 22.52% |
| Weighted average return on net assets | 6.55% | -0.48% | 15.96% | 0.40% |
| End of the reporting period | End of last year | Change | ||
| Total assets (RMB) | 14,174,502,034.44 | 12,457,568,276.25 | 13.78% | |
| Owner's equity attributable to shareholders of listed company (RMB) | 8,700,817,771.13 | 8,050,626,815.35 | 8.08% | |
(II) Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not Applicable
In RMB
| Item | Amount in the reporting period | Amount from the beginning of the year to the end of the reporting period | Description |
| Gains and losses on disposal of non-current assets (including the part written-off with provision for asset impairment accrued) | 118,203.75 | -1,919,562.84 | |
| Government subsidy included in current gains and losses (except the government subsidy closely related to the Company’s normal business, in line with national policy and enjoyed by quota or ration in accordance with the unified national standard) | 8,683,190.93 | 63,782,955.94 | |
| Other non-operating revenues and expenses except the above items | 91,000.41 | -302,630.55 | |
| Less: Affected amount of income tax | 1,341,589.10 | 9,525,988.77 | |
| Affected amount of minority shareholders’ equity (after tax) | 79,392.72 | 559,971.93 | |
| Total | 7,471,413.27 | 51,474,801.85 | -- |
Other items of gains and losses meeting the definition of non-recurring gains and losses:
□ Applicable √ Not Applicable
The Company does not have other items of gains and losses meeting the definition of non-recurring gains and lossesExplanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to as“Announcement No.1”) are defined as recurring gains and losses
□ Applicable √ Not Applicable
There is no circumstance where the items of non-recurring gains and losses enumerated in accordance with the Announcement No.1are defined as recurring gains and losses.(III) Changes in Major Accounting Data and Financial Indicators and Their Reasons
√ Applicable □ Not Applicable
1. Balance sheet items
At the end of the reporting period, accounts receivable increased by 69.15% as compared with that at the beginning of the year,mainly due to the increase in the Company's income in the current period and the conversion of some notes receivable into accountsreceivable.At the end of the reporting period, prepayments increased by 136.31% as compared with that at the beginning of the year, mainly due
to the increase in the prepayments for the purchase of raw materials in the current period.At the end of the reporting period, other receivables increased by 54.26% as compared with that at the beginning of the year, mainlydue to the increase in the amount not withdrawn from the online payment platform in the current period.At the end of the reporting period, deferred income tax assets increased by 94.81% as compared with that at the beginning of the year,mainly due to temporary differences in accrued sales expenses.At the end of the reporting period, accounts payable increased by 39.29% as compared with that at the beginning of the year, mainlydue to an increase in payables for the purchase of raw materials in the current period.At the end of the reporting period, taxes payable increased by 202.85% as compared with that at the beginning of the year, mainlydue to the increase in the amount of taxes in the current period.At the end of the reporting period, the payroll payable decreased by 57.63% as compared with that at the beginning of the year,mainly due to the completion of the payment of employees' salaries and bonuses last year.
2. Income statement items
Investment income increased by 55.98% as compared with that during the same period of the previous year, mainly due to theincrease in the bank wealth management income.
3. Cash flow statement items
Net cash flows from investment activities decreased by 115.92% as compared with that in the same period of the previous year,mainly due to the increase in the amount of bank wealth management products purchased in this period.
II. Shareholder Information(I) Total Number of Common Shareholders and Preferred Shareholders with the Voting Rights Recoveredand Shareholding of the Top 10 Shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 58,691 | Total number of preferred shareholders with the voting rights recovered at the end of reporting period (if any) | 0 | |||||
| Shareholding of the top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding ratio | Number of shares | Number of shares subject to sales restrictions | Pledged, marked or frozen shares | |||
| Status | Number | |||||||
| Hangzhou Robam Industrial Group Co., Ltd. | Domestic non-state-owned corporation | 49.68% | 471,510,000 | |||||
| Hong Kong Securities Clearing Company Limited | Overseas corporation | 10.12% | 96,010,221 | |||||
| Shen Guoying | Domestic natural person | 1.29% | 12,240,000 | |||||
| PICC Life Insurance Company Limited－traditional-general insurance products | Others | 1.05% | 9,985,763 | |||||
| 105 Portfolio of National Social Security Fund | Others | 0.93% | 8,832,326 | |||||
| PICC Property And | Others | 0.83% | 7,922,776 | |||||
| Casualty Company Limited－traditional-general insurance products | ||||||
| Industrial Bank Co., Ltd.－ICBC Credit Suisse Culture & Sports Industry Equity Securities Investment Fund | Others | 0.72% | 6,800,019 | |||
| Hangzhou Jinchuang Investment Co., Ltd. | Domestic non-state-owned corporation | 0.70% | 6,640,085 | |||
| Hangzhou Yinchuang Investment Co., Ltd. | Domestic non-state-owned corporation | 0.67% | 6,318,000 | |||
| Ren Jianhua | Domestic natural person | 0.62% | 5,923,150 | 4,442,362 | ||
| Shareholdings of the top 10 shareholders not subject to sales restrictions | ||||||
| Name of shareholder | Number of shares held not subject to sales restrictions | Type of share | ||||
| Type of share | Number | |||||
| Hangzhou Robam Industrial Group Co., Ltd. | 471,510,000 | RMB ordinary shares | 471,510,000 | |||
| Hong Kong Securities Clearing Company Limited | 96,010,221 | RMB ordinary shares | 96,010,221 | |||
| Shen Guoying | 12,240,000 | RMB ordinary shares | 12,240,000 | |||
| PICC Life Insurance Company Limited－traditional-general insurance products | 9,985,763 | RMB ordinary shares | 9,985,763 | |||
| 105 Portfolio of National Social Security Fund | 8,832,326 | RMB ordinary shares | 8,832,326 | |||
| PICC Property And Casualty Company Limited－traditional-general insurance products | 7,922,776 | RMB ordinary shares | 7,922,776 | |||
| Industrial Bank Co., Ltd.－ICBC Credit Suisse Culture & Sports Industry Equity Securities Investment Fund | 6,800,019 | RMB ordinary shares | 6,800,019 | |||
| Hangzhou Jinchuang Investment Co., Ltd. | 6,640,085 | RMB ordinary shares | 6,640,085 | |||
| Hangzhou Yinchuang Investment Co., Ltd. | 6,318,000 | RMB ordinary shares | 6,318,000 | |||
| China Merchants Bank Co., Ltd.－ICBC Credit Suisse Yuanfeng Three-year Holding Hybrid Securities Investment Fund | 5,382,088 | RMB ordinary shares | 5,382,088 | |||
| Description of the associated relationship or consistent actions of the above shareholders | Mr. Ren Jianhua is the actual controller of the controlling shareholder Hangzhou Robam Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife. Therefore, there is a possibility that these shareholders will act in concert. | |||||
| Description of the top 10 shareholders engaging in securities margin trading (if any) | None | |||||
(II) Total Number of the Company’s Preferred Shareholders and Shareholding of the Top 10 PreferredShareholders
□ Applicable √ Not Applicable
III. Other Significant Matters
□ Applicable √ Not Applicable
IV. Quarterly Financial Statements
(I) Financial Statements
1. Consolidated balance sheet
Prepared by: Hangzhou Robam Appliances Co., Ltd.
In RMB
| Item | September 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary capital | 4,289,703,823.62 | 3,921,052,700.31 |
| Deposit reservation for balance | ||
| Lendings to banks and other financial institutions | ||
| Financial assets held for trading | 2,097,000,000.00 | 2,352,000,000.00 |
| Derivative financial assets | ||
| Notes receivable | 1,829,798,473.34 | 1,832,701,443.08 |
| Accounts receivable | 1,705,398,926.15 | 1,008,235,946.40 |
| Accounts receivable financing | ||
| Prepayments | 165,154,261.76 | 69,889,399.47 |
| Receivable premium | ||
| Reinsurance accounts receivable | ||
| Provision of cession receivable | ||
| Other receivables | 87,297,408.56 | 56,589,791.38 |
| Including: Interests receivable | ||
| Dividends receivable | ||
| Redemptory monetary capital for sale | ||
| Inventory | 1,792,298,697.05 | 1,386,089,344.84 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 108,089.10 | 667,378.56 |
| Total current assets | 11,966,759,679.58 | 10,627,226,004.04 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 6,777,820.35 | 3,452,769.59 |
| Investment in other equity instruments | 102,116,023.22 | 102,116,023.22 |
| Other non-current financial assets | ||
| Investment real estate | 20,244,207.00 | 2,591,001.84 |
| Fixed assets | 902,005,759.59 | 824,978,354.71 |
| Projects under construction | 597,972,700.10 | 463,424,647.46 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 19,536,377.06 | |
| Intangible assets | 226,095,689.49 | 235,217,240.32 |
| Development expenses | ||
| Goodwill | 80,589,565.84 | 80,589,565.84 |
| Long-term deferred expenses | 3,987,270.20 | 1,798,358.85 |
| Deferred income tax assets | 219,141,919.23 | 112,492,030.71 |
| Other non-current assets | 29,275,022.78 | 3,682,279.67 |
| Total non-current assets | 2,207,742,354.86 | 1,830,342,272.21 |
| Total assets | 14,174,502,034.44 | 12,457,568,276.25 |
| Current liabilities: | ||
| Short-term loans | 9,706,724.99 | 6,076,177.30 |
| Borrowings from the central bank | ||
| Borrowings from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 751,955,364.71 | 751,802,498.92 |
| Accounts payable | 2,401,086,960.06 | 1,723,832,208.09 |
| Advance receipts | ||
| Contract liabilities | 988,689,975.64 | 949,591,228.35 |
| Financial assets sold for repurchase | ||
| Deposits from customers and interbank | ||
| Receivings from vicariously traded securities | ||
| Receivings from vicariously sold securities | ||
| Payroll payable | 53,445,473.13 | 126,130,391.24 |
| Taxes payable | 550,842,434.73 | 181,887,237.51 |
| Other payables | 270,608,430.44 | 242,559,615.30 |
| Including: Interests payable | ||
| Dividends payable | ||
| Fees and commissions payable | ||
| Dividends payable for reinsurance | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | 126,306,518.34 | 126,535,407.26 |
| Total current liabilities | 5,152,641,882.04 | 4,108,414,763.97 |
| Non-current liabilities: | ||
| Reserves for insurance contracts | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds |
| Lease liabilities | 20,440,482.34 | |
| Long-term accounts payable | ||
| Long-term payroll payable | ||
| Estimated liabilities | ||
| Deferred income | 136,351,414.79 | 150,163,523.90 |
| Deferred income tax liabilities | 4,790,803.87 | 5,210,759.74 |
| Other non-current liabilities | ||
| Total non-current liabilities | 161,582,701.00 | 155,374,283.64 |
| Total liabilities | 5,314,224,583.04 | 4,263,789,047.61 |
| Owner’s equity: | ||
| Capital stock | 949,024,050.00 | 949,024,050.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 405,010,095.11 | 401,799,332.67 |
| Less: treasury share | 199,995,742.59 | |
| Other comprehensive income | -15,157,634.16 | -15,157,634.16 |
| Special reserves | ||
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
| General risk reserves | ||
| Undistributed profits | 7,087,420,590.27 | 6,240,444,654.34 |
| Total owners' equity attributable to parent company | 8,700,817,771.13 | 8,050,626,815.35 |
| Minority interests | 159,459,680.27 | 143,152,413.29 |
| Total owner's equity | 8,860,277,451.40 | 8,193,779,228.64 |
| Total liabilities and owners' equity | 14,174,502,034.44 | 12,457,568,276.25 |
Legal representative: Ren Jianhua Person in charge of accounting: Zhang GuofuHead of the accounting department: Zhang Guofu
2. Consolidated income statement from the beginning of the year to the end of the reporting period
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Total operating income | 7,070,851,819.18 | 5,626,250,068.00 |
| Including: Operating income | 7,070,851,819.18 | 5,626,250,068.00 |
| Interest income | 118,558,363.39 | 112,742,985.04 |
| Earned premium | ||
| Fee and commission income | ||
| II. Total operating costs | 5,554,983,345.32 | 4,375,042,721.71 |
| Including: Operating costs | 3,103,729,614.29 | 2,416,387,099.14 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities |
| Policy dividend expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 50,227,331.81 | 42,560,354.77 |
| Selling expenses | 2,041,422,664.43 | 1,631,347,208.90 |
| Overhead costs | 241,171,206.79 | 193,024,850.25 |
| R&D expenses | 232,277,748.19 | 199,404,623.54 |
| Financial expenses | -113,845,220.19 | -107,681,414.89 |
| Including: Interest expenses | 2,864,994.32 | 4,217,690.38 |
| Interest income | 118,558,363.39 | 112,742,985.04 |
| Add: other incomes | 63,739,955.94 | 79,587,676.11 |
| Investment income (“-” for losses) | 60,694,501.06 | 38,912,889.91 |
| Including: Income from investment in joint ventures and affiliated enterprises | 1,325,050.76 | -957,489.25 |
| Gains on derecognition of financial assets measured at amortized cost | ||
| Exchange gains (“-” for losses) | ||
| Net exposure hedging gains (“-” for losses) | ||
| Gains from changes in fair value (“-” for losses) | ||
| Losses from credit impairment (“-” for losses) | -43,868,939.26 | -21,575,012.71 |
| Losses from asset impairment (“-” for losses) | ||
| Gains on disposal of assets (“-” for losses) | -1,917,639.76 | 45,574.92 |
| III. Operating profits (“-” for losses) | 1,594,516,351.84 | 1,348,178,474.52 |
| Add: non-operating income | 1,545,434.70 | 722,368.94 |
| Less: non-operating expenditure | 1,806,988.33 | 1,789,250.77 |
| IV. Total profits (“-” for total losses) | 1,594,254,798.21 | 1,347,111,592.69 |
| Less: income tax expenses | 236,336,437.30 | 203,349,843.12 |
| V. Net profits (“-” for net losses) | 1,357,918,360.91 | 1,143,761,749.57 |
| (I) By operational sustainability | ||
| 1. Net profits from continuing operations (“-” for net losses) | 1,357,918,360.91 | 1,143,761,749.57 |
| 2. Net profits from discontinued operations (“-” for net losses) | ||
| (II) By ownership | ||
| 1. Net profits attributable to the owners of parent company | 1,342,461,093.93 | 1,122,839,103.50 |
| 2. Minority shareholders' gains and losses | 15,457,266.98 | 20,922,646.07 |
| VI. After-tax net amount of other comprehensive income | ||
| After-tax net amount of other comprehensive income attributable to the owners of parent company | ||
| (I) Other comprehensive income that cannot be reclassified into gains and losses | ||
| 1. Changes in re-measured and |
| defined benefit plans | ||
| 2. Other comprehensive income which cannot be transferred to gains or losses under the equity method | ||
| 3. Changes in fair value of the investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company | ||
| 5. Others | ||
| (II) Other comprehensive income which will be reclassified into gains and losses | ||
| 1. Other comprehensive income which can be transferred into gains and losses under the equity method | ||
| 2. Changes 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 hedge reserve | ||
| 6. Converted difference in foreign currency statements | ||
| 7. Others | ||
| After-tax net amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 1,357,918,360.91 | 1,143,761,749.57 |
| Total comprehensive income attributable to the owners of parent company | 1,342,461,093.93 | 1,122,839,103.50 |
| Total comprehensive income attributable to minority shareholders | 15,457,266.98 | 20,922,646.07 |
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS | 1.42 | 1.18 |
| (II) Diluted EPS | 1.36 | 1.11 |
In the case of merger of enterprises under the same control in the current period, the net profit realized by the merged party before themerger is: RMB , and the net profit realized by the merged party in the previous period is: RMB .Legal representative: Ren Jianhua Person in charge of accounting: Zhang GuofuHead of the accounting department: Zhang Guofu
3. Consolidated cash flow statement from the beginning of the year to the end of the reporting period
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Cash flow from operating activities: | ||
| Cash received for the sale of goods and rendering of services | 7,324,508,658.96 | 5,536,983,526.17 |
| Net increase in clients’ deposits and deposits from banks and other financial |
| institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in borrowings from other financial institutions | ||
| Cash received from receiving insurance premium of the original insurance contract | ||
| Net cash from receiving reinsurance premium | ||
| Net increase in deposits and investment of insured persons | ||
| Cash received from interests, fees and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in repurchase business funds | ||
| Net cash received from vicariously traded securities | ||
| Refunds of taxes | 10,979,888.36 | |
| Cash received related to other operating activities | 201,223,220.26 | 224,148,875.21 |
| Subtotal of cash inflow from the operating activities | 7,536,711,767.58 | 5,761,132,401.38 |
| Cash paid for purchased products and received services | 3,622,856,682.21 | 2,612,978,014.34 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with the central bank and other financial institutions | ||
| Cash paid for claims of original insurance contract | ||
| Net increase in lending funds | ||
| Cash paid for interests, fees and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to and on behalf of employees | 845,300,418.79 | 546,701,880.29 |
| Cash paid for taxes | 416,514,502.07 | 480,586,939.03 |
| Cash paid related to other operating activities | 1,650,111,409.90 | 1,179,914,382.44 |
| Subtotal of cash outflow from operating activities | 6,534,783,012.97 | 4,820,181,216.10 |
| Net cash flow from operating activities | 1,001,928,754.61 | 940,951,185.28 |
| II. Cash flow from investing activities: | ||
| Cash received from return of investments | 1,915,000,000.00 | 1,320,000,000.00 |
| Cash received from return on investments | 60,399,512.45 | 55,619,492.71 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 2,553,081.90 | 168,392.00 |
| Net cash received from disposal of subsidiaries and other business entities |
| Cashes received related to other investment activities | ||
| Subtotal of cash inflow from investment activities | 1,977,952,594.35 | 1,375,787,884.71 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 279,588,832.92 | 184,150,960.67 |
| Cash paid for investments | 1,662,000,000.00 | 1,420,000,000.00 |
| Net increase in pledged loans | ||
| Net cash from subsidiaries and other operating entities | ||
| Cash paid related to other investment activities | ||
| Subtotal of cash outflow from investment activities | 1,941,588,832.92 | 1,604,150,960.67 |
| Net cash flow from investment activities | 36,363,761.43 | -228,363,075.96 |
| III. Cash flow from financing activities: | ||
| Cash from acquiring investments | 850,000.00 | |
| Including: Cash received by subsidiaries from investments of minority shareholders | 850,000.00 | |
| Cash from acquiring debts | ||
| Other cashes received in relation to financing activities | 8,068,758.07 | |
| Subtotal of cash inflow from financing activities | 8,918,758.07 | |
| Cash paid for repayments of debts | ||
| Cash paid for distribution of dividends, profits or interest expenses | 495,485,158.00 | 474,512,025.00 |
| Including: Dividends or profits paid by subsidiaries to minority shareholders | ||
| Other cashes paid in relation to financing activities | ||
| Subtotal of cash outflow from financing activities | 495,485,158.00 | 474,512,025.00 |
| Net cash flow from financing activities | -486,566,399.93 | -474,512,025.00 |
| IV. Effect of change in exchange rate on cash and cash equivalents | -101,137.11 | -125,536.04 |
| V. Net increase in cash and cash equivalents | 551,624,979.00 | 237,950,548.28 |
| Add: Opening balance of cash and cash equivalents | 3,886,096,513.56 | 4,029,296,265.50 |
| VI. Closing balance of cash and cash equivalents | 4,437,721,492.56 | 4,267,246,813.78 |
(II) Description on Adjustments in Financial Statement
1. Relevant financial statement items at the beginning of 2021 when the adjustments stipulated in the newCAS 21-Lease apply for the first time
□ Applicable √ Not Applicable
2. Description on early comparative data at the beginning of 2021 when the retroactive adjustmentsstipulated in the new CAS 21-Lease apply for the first time
□ Applicable √ Not Applicable
(III) Audit ReportWhether the Q3 report has been audited？
□ Yes √ No
The Q3 report of the Company has not been audited.
Board of Directors of Hangzhou Robam Appliances Co., Ltd.
October 20, 2021