Shenzhen Hopewind Electric (603063) investor relations material

Executive summary

• Q3 revenue was RMB 869.5m, down 2.73% YoY; attributable net loss was RMB 18.7m versus a profit a year earlier, with higher share-based compensation expense cited as a key driver of profit declines.

• 9M revenue fell 6.60% YoY to RMB 2.595bn and attributable net profit declined 58.83% to RMB 137.7m; net profit excluding share-based compensation was RMB 281.6m, down 18.08%.

Financial highlights

• Q3 profit before tax was a loss of RMB 40.9m; attributable net loss was RMB 18.7m and adjusted attributable net loss excluding non-recurring items was RMB 28.0m.

• 9M total net profit was RMB 150.2m, including RMB 137.7m attributable to shareholders; non-recurring gains net of tax and minority interests totaled RMB 41.2m.

• 9M operating cash flow was RMB 127.8m versus RMB 19.6m a year earlier; Q3 operating cash flow was negative RMB 55.2m as cash receipts from sales declined.

Key financial ratios and metrics

• 9M basic and diluted EPS were RMB 0.32, down 56.76% YoY; Q3 basic and diluted EPS were both negative RMB 0.04.

• 9M weighted average ROE was 2.58%, down 4.60 percentage points YoY; Q3 ROE was negative 0.34%.

• Total assets at Sept. 30 were RMB 9.942bn, up 7.11% from year-end; equity attributable to shareholders was RMB 5.553bn, up 7.70%.