ZKTeco 2023 Q3 Report
Stock Code: 301330 Abbreviation of Securities: ZKTECO Announcement No.: 2023-075
ZKTECO CO., LTD.
2023 3 rd Quarter Report
The Company and all members of the Board of Directors guarantee that
the information disclosed is true, accurate, and complete, without any false
records, misleading statements or material omissions.
Important content tips:
1. The Board of Directors, the Board of Supervisors, directors, supervisors, and senior management guarantee
that the information presented in this report is true, accurate and complete without any false records, misleading
statements 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 charge
of accounting institution (accounting supervisor) hereby declare that the financial information in this report is true,
accuracy, and complete.
3. Whether the 3rd quarter report has been audited
□ Yes No
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ZKTeco 2023 Q3 Report
I. Key Financial Data
(I) Main Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data
Yes □ No
Reasons for retroactive adjustment or restatement of the previous accounting data
Accounting policy change
Increase/dec
YoY rease in this
change reporting
From the
during period
The same period last year beginning of The same period last year
Current the compared to
2023 to the
reporting reportin the same
end of the
period g period period last
reporting
year
period
After
Before After Before After After
adjustm
adjustment adjustment adjustment adjustment adjustment
ent
Operating
revenue 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%
(RM B)
Net profit
attributable to
shareholders
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%
of listed
companies
(RM B)
Net profit
attributable to
shareholders
of listed
companies
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%
after
deducting
non-recurring
profits and
losses (RM B)
Net cash
flows from
operating - - - - 183,302,835.87 -1,672,945.85 -1,672,945.85 11,056.89%
activities
(RM B)
Basic earnings
per share 0.2100 0.5166 0.3805 -44.81% 0.7182 1.1619 0.8390 -14.40%
(RM B/share)
Diluted
earnings per
0.2097 0.5166 0.3805 -44.89% 0.7141 1.1619 0.8390 -14.89%
share
(RM B/share)
Weighted
average return 1.58% 3.22% 3.23% -1.65% 4.44% 8.30% 8.30% -3.86%
on net assets
At the end of this reporting Increase or decrease at the
At the end of the previous year
period end of this reporting period
2
ZKTeco 2023 Q3 Report
compared to the end of the
previous year
Before adjustment After adjustment After adjustment
Total assets
3,800,739,623.17 3,655,960,456.30 3,662,519,973.00 3.77%
(RM B)
Owner's
equity
attributable to
shareholders 3,187,091,264.83 3,057,467,189.68 3,057,720,783.95 4.23%
of the listed
company
(RM B)
Reasons for changes in accounting policies and situations of correction of accounting errors
On November 30, 2022, the M inistry of Finance issued and implemented the "Interpretation No. 16 of the Accounting Standards for
Business Enterprises", which stipulates that "deferred income tax related to asset s and liabilities arising from individual transactions
shall 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 financial
statement presentation for the first time, as well as the estimated liabilities and corresponding assets related to the disposal obligation
recognized, which generate taxable temporary differences and deductible temporary differences, the Company shall adjust the
cumulative impact to present the initial retained earnings and other related financial statement items for the earliest period in the
financial statements in accordance with this regulation and the provisions of "Accounting Standards for Enterprises No. 18 - Income
Tax".
(II) Items and Amounts of Non-recurring Gains and Losses
Applicable □ Not applicable
Unit: RM B
Amount from the beginning
Amount during this reporting
Item of 2023 to the end of the Remarks
period
reporting period
Losses and gains from
disposal of non-current assets
(including the offsetting -197,525.38 -631,161.14
portion of the provision for
asset impairment)
Government subsidies
included in current profits and
losses (except those closely
related to the normal business
of the Company, which are in 1,594,646.45 4,607,003.37
line with national policies and
regulations and continue to be
enjoyed in accordance with
certain standards or quotas)
Capital occupancy fees
charged to non-financial
12,920.94 39,527.94
enterprises included in current
profits and losses
In addition to the effective M ainly due to investment
hedging business related to gains and losses and changes
1,139,553.13 -6,670,356.22
the normal business of the in fair value generated by
Company, the profits and partial forward exchange
3
ZKTeco 2023 Q3 Report
losses from fair value changes settlement to hedge against
arising from the holding of exchange rate fluctuations
trading financial assets and risk
trading financial liabilities as
well as investment income
from the disposal of trading
financial assets, trading
financial liabilities and
available-for-sale financial
assets
Other non-operating income
and expenses other than the -2,517,579.47 -2,647,690.57
above items
Less: income tax impact 268,332.89 725,943.44
M inority interest impact
990.25 -69,171.71
(after tax)
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 Disclosure
by 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 Information
Disclosure 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 applicable
During the reporting period, the operating revenue and gross profit increased by RM B 24.3779 million and RM B 34.0113 million
respectively compared to the same period last year, an increase of 5.10% and 16.16%, respectively. However, the net profit attributable
to shareholders of the listed company decreased by RM B 14.1465 million or 22.09% compared to the same period last year, mainly
due to the following reasons:
(1) The recognized share-based payment amount generated by equity incentives during this reporting period is RM B 10.7791
million, 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-based
payment) 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 personnel
compensation 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 RM B exchange rate increased significantly during the same period last year, resulting in significant exchange
gains. However, during this reporting period, the fluctuation of USD to RM B exchange rate was relatively small, and there were certain
exchange losses.
Balance Sheet Items September 30, 2023 January 1, 2023 Change ratio Reasons
M ainly due to the redemption of
Trading financial asset 81,448,599.23 204,318,406.05 -60.14% structured wealth management products
upon maturity
Construction in 121,456,375.48 57,041,298.90 112.93% M ainly due to the Company's
4
ZKTeco 2023 Q3 Report
progress construction of a multimodal biometrics
digitalization industrial base project,
resulting in an increase in investment in
this period
M ainly due to a small number of
payable bills issued at the end of 2022
Notes payable 141,733,753.49 68,293,818.22 107.54%
and an increase in procurement volume
in 2023
Income Statement January - September
January - September 2022 Change ratio Reasons
Items 2023
M ainly due to the increase in interest
Financial expenses -44,978,271.11 -34,685,171.83 -29.68% income from current fund deposits
M ainly due to the lack of relevant
Other income 8,430,892.85 12,226,993.76 -31.05% subsidies for the subsidy projects for the
same period last year in this period
M ainly due to losses generated by
Income from changes partial forward exchange settlement to
-1,955,731.23 -722,849.81 170.56%
in fair value hedge against exchange rate fluctuations
risk
M ainly due to an increase in accounts
Losses from credit
-4,162,381.02 -2,775,855.38 49.95% receivable leading to an increase in bad
impairment debt reserves
Cash Flow Statement January - September
January - September 2022 Change ratio Reasons
Items 2023
M ainly due to an increase in cash
received from selling goods and
Net cash flows from
183,302,835.87 -1,672,945.85 11056.89% providing services in the current period
operating activities
and a decrease in cash paid for
purchasing goods and receiving services
M ainly due to the increase in cash paid
for purchasing wealth management
Net cash flows from
-182,299,863.94 -12,040,820.80 -1414.02% products, investment in ongoing
operating activities
projects, and external investment
payments in this period
M ainly due to the receipt of funds raised
Net cash flows from
-86,869,563.26 1,433,962,592.96 -106.06% from the listing during the same period
financing activities
last year
M ainly due to a decrease in net cash
Net increase in cash
-83,173,247.43 1,453,069,177.47 -105.72% flow from investing activities and
and cash equivalents
financing activities in the current period
II. Shareholder Information
(I) Table of the Total Number of Common Shareholders and the Number of Preferred Shareholders with
Resumed Voting Rights and Information about Top Ten Shareholders
Unit: share
Total number of preferred shareholders whose voting
Total number of common shareholders at the
18,034 rights have been recovered at the end of the reporting 0
end of the reporting period
period (if any)
Particulars about the top 10 shareholders
Number of Pledged, marked or frozen
Nature of Shareholding Total shares held shares with
Name of shareholder
shareholder percentage at the period-end trading
Share status Amount
restrictions
Domestic non
Shenzhen ZKTeco Times
state-owned 30.30% 58,500,000 58,500,000
Investment Co., Ltd.
legal persons
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ZKTeco 2023 Q3 Report
Domestic
Che Quanhong 17.62% 34,022,300 34,022,300
individual
Shenzhen JYSJ Investment Domestic non
Enterprise (Limited state-owned 7.31% 14,107,600 10,580,700
Partnership) legal persons
Shenzhen JYHY Investment Domestic non
Enterprise (Limited state-owned 7.21% 13,921,050 10,440,787
Partnership) legal persons
Dongguan LX Investment Domestic non
Partnership (Limited state-owned 5.12% 9,880,000 9,880,000
Partnership) legal persons
Shenzhen JYLX Consulting Domestic non
Enterprise (Limited state-owned 2.46% 4,748,380 3,561,285
Partnership) legal persons
Huaxin Yuanchuang
(Qingdao) Capital
M anagement Co., Ltd. -
Qingdao Walden Other 1.76% 3,396,302 0
Zhongxiang Investment
Centre (Limited
Partnership)
Shenzhen Fuhai Juanyong I Domestic non
Venture Investment Fund state-owned 1.35% 2,612,540 0
(Limited Partnership) legal persons
Shenzhen JYQL Investment Domestic non
and Consulting Enterprise state-owned 0.91% 1,762,800 1,322,100
(Limited Partnership) legal persons
Huaxin Yuanchuang
(Qingdao) Capital
M anagement Co., Ltd. -
Other 0.66% 1,267,067 0
Yiwu Walden Yuanjing
Venture Capital Centre
(Limited Partnership)
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Types of shares
Name of shareholder Number of shares without trading restrictions
Type Number
RM B
Shenzhen JYSJ Investment Enterprise (Limited
3,526,900 denominated 3,526,900
Partnership)
ordinary shares
RM B
Shenzhen JYHY Investment Enterprise
3,480,263 denominated 3,480,263
(Limited Partnership)
ordinary shares
Huaxin Yuanchuang (Qingdao) Capital
RM B
M anagement Co., Ltd. - Qingdao Walden
3,396,302 denominated 3,396,302
Zhongxiang Investment Centre (Limited
ordinary shares
Partnership)
RM B
Shenzhen Fuhai Juanyong I Venture Investment
2,612,540 denominated 2,612,540
Fund (Limited Partnership)
ordinary shares
Huaxin Yuanchuang (Qingdao) Capital RM B
M anagement Co., Ltd. - Yiwu Walden Yuanjing 1,267,067 denominated 1,267,067
Venture Capital Centre (Limited Partnership) ordinary shares
RM B
Shenzhen JYLX Consulting Enterprise
1,187,095 denominated 1,187,095
(Limited Partnership)
ordinary shares
Changjiang Wealth Asset M anagement - Bank 1,098,092 RM B 1,098,092
6
ZKTeco 2023 Q3 Report
of Nanjing - Changjiang Wealth - ZKTeco denominated
Employee Strategic Placement No.1 Collective ordinary shares
Asset M anagement Plan
RM B
Shenzhen Gohedge Fund M anagement Co.,
799,630 denominated 799,630
Ltd. - Gohedge Pearl No.1 Private Equity Fund
ordinary shares
RM B
Zhu Yongjian 779,713 denominated 779,713
ordinary shares
RM B
Liang Qiming 700,000 denominated 700,000
ordinary shares
Shareholder Che Quanhong is elder brother of shareholder Che
Quanzhong from Shenzhen ZKTeco Times Investment Co., Ltd., and
son of Che Jun, partner of Dongguan LX Investment Partnership
(Limited Partnership).
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.
M eanwhile, Che Quanhong holds 1.18% of the property share of
shareholder Dongguan LX Investment Partnership (Limited
Partnership).
Explanation on associated relationship and concerted actions
Che Quanzhong, the younger brother of shareholder Che Quanhong,
among above shareholders
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 M anagement Co., Ltd.
In addition, there is no affiliated relationship between the other
shareholders of the Company.
The shareholder Shenzhen Gohedge Fund M anagement Co., Ltd. -
Gohedge Pearl No.1 Private Equity Fund holds 674,570 shares of the
Information on Top 10 shareholders of participating in margin
Company through ordinary securities account, and 125,060 shares of
trading and short selling business (if any)
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
Number of Number of Number of
Increase in Date of
restricted shares released restricted
restricted Reason for releasing from
Name of shareholder shares at the from trading shares at the
shares in restrictions trading
beginning of restrictions in end of the
this period restrictions
the period this period period
Shenzhen ZKTeco Restricted February 17,
45,000,000 0 13,500,000 58,500,000
Times Investment shares before 2026
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ZKTeco 2023 Q3 Report
Co., Ltd. IPO
Restricted
February 17,
Che Quanhong 26,171,000 0 7,851,300 34,022,300 shares before
2026
IPO
One quarter of
the shares will
be unlocked
Shenzhen JYSJ Restricted from August
Investment Enterprise 10,852,000 3,526,900 3,255,600 10,580,700 shares before 17, 2023, until
(Limited Partnership) IPO all shares are
unlocked on
August 17,
2026
One quarter of
the shares will
be unlocked
Shenzhen JYHY Restricted from August
Investment Enterprise 10,708,500 3,480,263 3,212,550 10,440,787 shares before 17, 2023, until
(Limited Partnership) IPO all shares are
unlocked on
August 17,
2026
Dongguan LX
Restricted
Investment August 17,
7,600,000 0 2,280,000 9,880,000 shares before
Partnership (Limited 2025
IPO
Partnership)
One quarter of
the shares will
be unlocked
Shenzhen JYLX Restricted from August
Consulting Enterprise 3,652,600 1,187,095 1,095,780 3,561,285 shares before 17, 2023, until
(Limited Partnership) IPO all shares are
unlocked on
August 17,
2026
Shenzhen Fuhai
Restricted
Juanyong I Venture August 22,
2,009,646 2,612,540 602,894 0 shares before
Investment Fund 2023
IPO
(Limited Partnership)
Huaxin Yuanchuang
(Qingdao) Capital
M anagement Co., Restricted
August 22,
Ltd. - Yiwu Walden 1,406,752 1,828,777 422,025 0 shares before
2023
Yuanjing Venture IPO
Capital Centre
(Limited Partnership)
Huaxin Yuanchuang
(Qingdao) Capital
M anagement Co., Restricted
August 22,
Ltd. - Qingdao 2,612,540 3,396,302 783,762 0 shares before
2023
Walden Zhongxiang IPO
Investment Centre
(Limited Partnership)
Shenzhen JYQL One quarter of
Restricted
Investment and the shares will
1,356,000 440,700 406,800 1,322,100 shares before
Consulting Enterprise be unlocked
IPO
(Limited Partnership) from August
8
ZKTeco 2023 Q3 Report
17, 2023, until
all shares are
unlocked on
August 17,
2026
Changjiang Wealth
Asset M anagement -
Bank of Nanjing -
Changjiang Wealth - Restricted August 22,
1,733,148 2,253,092 519,944 0
ZKTeco Employee shares after IPO 2023
Strategic Placement
No.1 Collective Asset
M anagement Plan
Changjiang Wealth
Asset M anagement -
Bank of Nanjing -
Changjiang Wealth - Restricted August 22,
272,022 353,629 81,607 0
ZKTeco Employee shares after IPO 2023
Strategic Placement
No.2 Collective Asset
M anagement Plan
Offline issuance Restricted February 17,
1,865,168 1,865,168 0 0
restricted shares shares after IPO 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 the
initial public offering
Some of the shares already issued before the Company's initial public offering and the strategic placement shares in the init ial
public offering were lifted from restrictions and listed for circulation on August 22, 2023. The specific situation is as follows: there are
a 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 have
been lifted on shares issued before the initial public offering, and the number of shares is 16,472,577, accounting for 8.5333% of the
Company's total share capital. There 2 shareholders for which the restrictions on the initial public offering of strategic placement shares
have 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", granting
the Company a credit line of RM B 280 million, with a validity period from September 19, 2023 to September 18, 2024. Among them,
RM B 60 million is other exclusive credit lines, occupied by bank accept ance and guarantee deposits; RM B 40 million is a low risk
credit line, and 100% deposit is required for low risk businesses; RM B 180 million is a general credit line, RM B 5 million is used for
handling capital business on behalf of customers in branches, and the remaining RM B 175 million is used for handling bank acceptance
bills, short-term working capital loans and trade financing business. Among them, RM B 80 million is used for credit, and the guarantee
way of the other RM B 100 million is pending. The sp ecific use of credit shall be implemented in accordance with the management
measures for individual business, and the loan interest rate shall be implemented in accordance with the relevant regulations of
Agricultural Bank of China. The proportion of deposit for handling bank acceptance bills and letter of guarantee business shall not be
less than 30%, with the bank acceptance bill handling fee within three months being 0.025% of the total invoicing amount.
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ZKTeco 2023 Q3 Report
IV. Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by: ZKTECO CO., LTD.
September 30, 2023
Unit: RM B
Item September 30, 2023 January 1, 2023
Current assets:
M onetary 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
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ZKTeco 2023 Q3 Report
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
22,194,903.29 23,718,225.39
year
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
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ZKTeco 2023 Q3 Report
Undistributed profits 875,497,875.06 788,826,559.09
Total owner's equity attributable to the
3,187,091,264.83 3,057,720,783.95
parent company
M inority 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: RM B
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
-1,725,758.54 -2,851,452.46
expressed with "-")
Including: income from
investment in associates and joint 1,812,820.04 1,887,556.49
ventures
Gains from
derecognition of financial assets
measured at amortized cost
Gains from foreign exchange
(loss expressed with "-")
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ZKTeco 2023 Q3 Report
Gains from net exposure hedging
(loss expressed with "-")
Gains from changes in fair value
-1,955,731.23 -722,849.81
(loss expressed with "-")
Losses from credit impairment
-4,162,381.02 -2,775,855.38
(loss expressed with "-")
Losses from impairment of assets
-3,428,778.18 -5,030,757.26
(loss expressed with "-")
Gains from disposal of assets
-234,164.39 14,745.57
(loss expressed with "-")
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
154,685,485.68 146,001,979.97
operations (net loss expressed with "-")
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 138,643,533.82 134,267,346.46
loss expressed with "-")
2. M inority shareholders' profit and
16,041,951.86 11,734,633.51
loss (net loss expressed with "-")
VI. Other comprehensive income - after
1,168,896.86 32,538,347.92
tax
Net of tax of other comprehensive
income attributable to the owner of the 12,303,916.81 31,704,946.32
parent company
(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
12,303,916.81 31,704,946.32
that will be reclassified into profit or loss
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
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ZKTeco 2023 Q3 Report
4. Provision for credit impairment
of other debt investments
5. Cash flow hedging reserve
6. Translation difference of
12,303,916.81 31,704,946.32
foreign currency financial statements
7. Others
After-tax net amount of other
comprehensive income attributable to the -11,135,019.95 833,401.60
minority shareholders
VII. Total comprehensive income 155,854,382.54 178,540,327.89
(I) Total comprehensive income
attributable to owners of the parent 150,947,450.63 165,972,292.78
company
(II) Total comprehensive income
4,906,931.91 12,568,035.11
attributable to minority shareholders
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 party
before the merger is RM B 0.00, and the net profit realized by the combined party in the previous period is RM B 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: RM B
Item 2023 Q3 2022 Q3
I. Cash flows from operating activities:
Cash received from sale of goods and
1,487,266,012.39 1,429,208,395.73
rendering of services
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
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ZKTeco 2023 Q3 Report
Cash received from other operating
34,026,186.26 59,468,312.19
activities
Subtotal of cash inflows from operating
1,569,814,369.83 1,529,048,446.75
activities
Cash paid for purchase of goods and
729,304,911.13 905,799,976.85
rendering of services
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
190,511,459.43 186,247,360.68
operating activities
Subtotal of cash outflows from operating
1,386,511,533.96 1,530,721,392.60
activities
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
2,499,098.17 1,333,253.66
income
Net cash received from disposal of
fixed assets, intangible assets and other 343,862.87 381,494.14
long-term assets
Net cash received from disposal of
0.00
subsidiaries and other business units
Cash received from other investing
0.00
activities
Subtotal of cash inflows from investing
552,219,142.70 86,386,183.12
activities
Cash paid to acquire and construct
fixed assets, intangible assets and other 108,652,539.76 60,109,142.96
long-term assets
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
734,519,006.64 98,427,003.92
activities
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 2,445,378.21
minority shareholders' investments
Cash received from borrowings 8,500,000.00
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ZKTeco 2023 Q3 Report
Cash received from other financing
0.00
activities
Subtotal of cash inflows from financing
10,945,378.21 1,486,667,165.16
activities
Cash paid for debt repayments 224,246.01 152,016.85
Cash paid for distribution of dividends
73,168,224.18 6,423,466.51
and profits or payment of interest
Including: dividends and profits
paid to minority shareholders by 21,116,705.95 6,403,557.60
subsidiaries
Cash paid for other financing activities 24,422,471.28 46,129,088.84
Subtotal of cash outflows from financing
97,814,941.47 52,704,572.20
activities
Net cash flows from financing activities -86,869,563.26 1,433,962,592.96
IV Effect of exchange rate changes on
2,693,343.90 32,820,351.16
cash and cash equivalents
V Net increase in cash and cash
-83,173,247.43 1,453,069,177.47
equivalents
Plus: beginning balance of cash and
1,077,608,258.10 516,288,425.76
cash equivalents
VI. Closing balance of cash and cash
994,435,010.67 1,969,357,603.23
equivalents
(II) Implementation of new accounting standards adjustment for the first time starting from
2023. Relevant project information on financial statements at the beginning of the year
Applicable □ Not applicable
Adjustment 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 the
consolidated 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
M inority interests 43,025,126.30 43,055,842.93 30,716.63
(III) Audit Report
Whether the 3rd Quarter Report has been audited
□ Yes No
The Company's Q3 Report has not been audited.
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ZKTeco 2023 Q3 Report
ZKTECO CO., LTD.
Board of Directors
October 27, 2023
17
