Zhejiang Sanhua Intelligent Controls Co. (002050) investor relations material

Executive summary

• Q3 revenue rose 7.82% YoY to RMB 8.37B, while net income attributable to shareholders fell 9.64% to RMB 1.02B.

• 9M revenue increased 5.18% YoY to RMB 25.27B; attributable net income declined 5.40% to RMB 3.07B, while operating cash flow rose 22.58% to RMB 3.75B.

Financial highlights

• 9M adjusted net income attributable to shareholders was RMB 3.17B, up 2.68% YoY; Q3 adjusted net income was RMB 1.02B, down 5.09%.

• 9M total net profit was RMB 3.14B versus RMB 3.29B a year earlier; operating profit was RMB 3.14B versus RMB 3.69B.

• 9M operating costs were RMB 21.55B, including RMB 18.11B in cost of sales; reported revenue was RMB 25.27B.

• 9M non-recurring items totaled a net loss of RMB 98.49M, including RMB 148.46M in losses on financial asset and liability fair-value changes and disposals.

• Total assets were RMB 51.20B at quarter-end, up 3.64% from year-end; equity attributable to shareholders was RMB 32.78B, up 3.24%.

Key financial ratios and metrics

• Basic and diluted EPS were RMB 0.24 in Q3, each down 11.11% YoY; 9M EPS was RMB 0.73, down 13.10%.

• Weighted average ROE was 3.12% for Q3, down 0.58 percentage points YoY, and 9.38% for 9M, down 4.29 percentage points.