In the first three quarters, the company achieved a net profit of 32.92 million and a fully diluted EPS of 0.13 yuan, which was in line with expectations. In the first three quarters, the company achieved revenue of 680 million, a year-on-year decline of 24% after retroactive adjustment, and a net profit of 32.92 million after retroactive adjustment, with a year-on-year decline of 9.6% after retroactive adjustment, and a fully diluted EPS of 0.13 yuan, in line with expectations. Among them, revenue in the third quarter increased by 11% to 330 million, and net profit increased by 218.5% to 13.09 million. The third quarter performance increment mainly comes from the technology clothing which was added in August and the contribution of Wenzhou Zhuangji and Taian Ruyi. The company expects to achieve a net profit of 4536-53.41 million in 2016, an increase of 165% over the same period last year. This is mainly due to the consolidation effect.
The gross profit margin continued to rise, and the rate of financial expenses decreased significantly. The company's gross profit margin increased to 22.8% in the first three quarters, continuing the trend in the first half of the year, and it is expected that the cost side will be better controlled. The rate of sales and management expenses increased by 1.9% and 2.9pct to 5.4% and 8.2% respectively, reaching a new high in recent years, which is expected to be related to the completion of fixed growth in the third quarter and the company's extension to the clothing field downstream of the industrial chain. The rate of financial expenses fell by 3.9pct to 4.3%, the lowest level in recent years. 500 million of the funds raised by the fixed increase was used to repay bank loans, and financial expenses were well controlled. The net interest rate rose 0.8pct to 4.8% in the first three quarters. The acquisition and consolidation resulted in an increase of 320 million to 570 million in inventories and 270 million to 500 million in accounts receivable compared to the beginning of the year. The net operating cash flow was-280 million, mainly due to an increase in cash outflow.
Ruyi Technology Group's acquisition of French light luxury group SMCP has completed delivery in October, and the future development is worth looking forward to. According to the announcement on the official website of SMCP, Ruyi Technology has completed the acquisition of the majority stake in SMCP on October 11, and the founder and management of SMCP and the former major shareholder KKR have retained a minority stake, indicating that all parties to the transaction are optimistic about the prospect of cooperation.
The design and operation of SMCP will continue to be retained, maintaining the original style and tone, and the accelerated expansion of the Asian market in the future is worth looking forward to. SMCP has maintained rapid growth worldwide in recent years, with revenue rising 19.2% to 380 million euros in the first half of this year, and same-store growth of 9.3%, which continues to accelerate compared with 8.9% in the first half of last year. The Greater China region with a low base and large space grew by 51%. In the first half of the year, Sandro and Maje opened Tmall stores, and overall e-commerce revenue grew by 104 per cent.
The listed companies completed the fixed growth in August and have been injected into all the domestic clothing assets in the group system, which is the beginning of the strategic extension.
After 14 years of MBO to straighten out the interests of listed companies, and for the first time since 15 years of listing, it completed a fixed increase of 1.836 billion yuan in August this year, with 30% of the group's participation in Ruyi technology and a fixed price of 18.07 yuan. some of the funds raised were used to inject all domestic clothing assets into the group system, which not only thickened the profits of listed companies, but also backed listed companies against the powerful resources of the group. The beginning of the extension to the lower reaches of the industrial chain and more value-added clothing field. Group Ruyi Technology, which has the background of Itochu shareholders, is strong and aggressive in the textile and clothing industry, and has been extended to upstream resources and downstream brands through acquisitions in the past few years, with a strong 32-260 million increase in net profit in the first half of this year.
Small companies + large groups, listed companies are the only domestic listing platform of the group, we are optimistic about the future development of listed companies for a long time. According to the latest situation of the three quarterly reports, the rate of sales and management expenses has increased, and we have slightly revised down our profit forecast for 16-17 years. It is estimated that the EPS for 16-18 years is 0.19x0.44pm 0.54 yuan (the original forecast is 0.21ppm 0.46 yuan for 16-17 years), and the corresponding PE is 115-50-41 times. At present, the market capitalization of listed companies is 5.7 billion, and the base is still small. For a long time, we are optimistic that listed companies will continue to become bigger and stronger with the help of group resources, and maintain their holding ratings.