Announcement time of this financial report: 2023-10-27 19:25:42

Quanchai Power (stock code: 600218) is an enterprise mainly engaged in engine R&D, manufacturing and sales. Its business covers power support systems for vehicles, industrial vehicles, construction machinery, agricultural equipment, and fixed units. Its products are widely used in light trucks, forklifts, tractors, harvesting machinery, excavators, loaders and fixed units. As a major domestic multi-cylinder diesel engine R&D and manufacturer, Quanchai Power enjoys a high reputation in the market.

In terms of assets and liabilities, Quanchai Power's total assets for the third quarter of 2023 were 5.906 billion yuan, up from 5.624 billion yuan at the end of the previous year. Total liabilities were $2,727 million, up from $2.48 billion at the end of the previous year. Net assets were $3.179 billion, slightly higher than $3.143 billion at the end of the previous year. The balance ratio was 46.18%, up from 44.11% at the end of the previous year.

In terms of profit, Quanchai Power's operating income for the third quarter of 2023 was 3,841 billion yuan, slightly lower than the same period last year of 3,975 billion yuan. Operating profit was 61.7182 million yuan, down from 76.3386 million yuan in the same period last year. Operating costs were $3.486 billion, down from $3,659 billion in the same period last year. Net profit was 706.5556 million yuan, slightly lower than 72,3961 million yuan in the same period last year. Gross margin was 9.25%, up from 7.95% in the same period last year, and net profit margin was 1.84%, which is basically the same as 1.82% in the same period last year.

In terms of cash flow, Quanchai Power's net cash flow from operating activities in the third quarter of 2023 was -163 million yuan, a sharp decline from 75.2294 million yuan in the same period last year. Cash inflows from operating activities totaled $2,565 billion, down from $3,386 billion in the same period last year. The total cash outflow from operating activities was $2,728 billion, down from $3.31 billion in the same period last year.

In summary, Quanchai Power's overall operating conditions in the third quarter of 2023 were stable, and total assets increased, but net profit declined slightly, and net cash flow declined sharply. The main reasons for these changes include the reduction in government subsidies for non-recurring profits and losses, the subsidiary Tianhe Machinery's promotion of cost reduction and efficiency to achieve significant losses reduction, and a reduction in cash received from the sale of goods.

For investors, Quanchai Power's overall operating conditions are stable, but they need to pay attention to the sharp decline in its net cash flow. At the same time, although the company's net profit has declined, gross margin has increased, showing the company's efforts to control costs. In the future, Quanchai Power will continue to commit to technological innovation and collaborative development, providing important support for the company's development strategy and planning.

This article only represents the judgments made by analysts themselves or analysts based on AI analysis. It cannot be used as an investment indicator, nor does it constitute any investment advice. The original purpose of this article was to help investors analyze and judge capital market data in the most intuitive and fastest way and from the most professional perspective.