China 3 Statement Model

china-3-statement-model

Purpose

Build institutional-quality three-statement models (Income Statement / Balance Sheet / Cash Flow) for A-share equities, adapted for Chinese Accounting Standards (CAS) and the Chinese market context.

Key Differences from US 3-Statement Models

Data Sources

Tier 0 — 万得 Wind（最全面付费数据）

• 覆盖：A股/港美股/基金/指数/债券/宏观/研报/分析（44个工具）
• MCP 服务：wind-mcp（需 WIND_API_KEY 密钥，以 ak_ 开头）
• 优势：全市场覆盖面最广、数据最全面、包含研报和量化分析
• 密钥申请：https://aifinmarket.wind.com.cn/#/home

Tier 1 — 同花顺 iFind（付费精确数据）/ AkShare MCP（Tier-2 免费备选）

pythonCopy code
get_financials(ticker, "income", "annual")   → 利润表
get_financials(ticker, "balance", "annual")  → 资产负债表
get_financials(ticker, "cashflow", "annual") → 现金流量表
get_quote(ticker)                            → 实时行情
get_historical_data(ticker)                  → 历史价格
get_stock_info(ticker)                       → 公司基本信息

Secondary Sources (when AkShare insufficient)

• 巨潮资讯 (cninfo.com.cn) — mandatory disclosure filings
• 上交所 / 深交所 — listed company announcements
• 上证e互动 / 深交所互动易 — IR Q&A
• 公司官网投资者关系页面

Workflow

Step 1: Data Retrieval

Pull 3-5 years of historical financials from AkShare.

Verify units carefully:

• Some statements report in 元 (CNY)
• Others in 千元 (thousands CNY)
• Normalize to consistent unit before modeling

pythonCopy code
# Pull all three statements
get_financials(ticker, "income", "annual")
get_financials(ticker, "balance", "annual")
get_financials(ticker, "cashflow", "annual")

Step 2: Historical Analysis

Document key trends:

• Revenue growth: YoY %, CAGR over 3-5 years
• Gross margin: 毛利率 — track expansion/contraction
• Operating margin: 营业利润率
• Net margin: 净利率
• Tax rate: 所得税率 — flag if below 25% (likely 高新技术企业)
• Effective tax rate: vs statutory rate
• D&A: 折旧与摊销 as % of PPE
• CapEx: 资本支出 from cash flow statement
• Working capital: 应收账款、存货、应付账款 trends
• Debt structure: 有息负债 composition

Step 3: Build the Model

Follow standard 3-statement modeling methodology, adapted for CAS:

Income Statement (利润表)

Key line items (Chinese naming):

• 营业收入 (Revenue)
• 营业成本 (COGS)
• 税金及附加 (Taxes and surcharges — includes 消费税、城建税等)
• 销售费用 (Selling expenses)
• 管理费用 (G&A)
• 研发费用 (R&D expenses — must be separated per CAS)
• 财务费用 (Financial costs — net of interest income)
• 营业利润 (Operating profit)
• 营业外收入/支出 (Non-operating income/expenses)
• 利润总额 (Profit before tax)
• 所得税费用 (Income tax expense)
• 净利润 (Net income)
• 归属于母公司股东的净利润 (Net income attributable to parent)

Balance Sheet (资产负债表)

Key line items:

• 货币资金 (Cash & equivalents)
• 交易性金融资产 (Trading financial assets)
• 应收账款 (Accounts receivable)
• 预付款项 (Prepayments)
• 存货 (Inventory)
• 其他流动资产 (Other current assets)
• 流动资产合计 (Total current assets)
• 固定资产 (Fixed assets / PPE)
• 在建工程 (Construction in progress)
• 无形资产 (Intangible assets)
• 商誉 (Goodwill — flag if >30% of equity)
• 非流动资产合计 (Total non-current assets)
• 资产总计 (Total assets)
• 短期借款 (Short-term borrowings)
• 应付账款 (Accounts payable)
• 预收款项/合同负债 (Advance receipts / contract liabilities)
• 一年内到期非流动负债 (Current portion of LT debt)
• 流动负债合计 (Total current liabilities)
• 长期借款 (Long-term borrowings)
• 应付债券 (Bonds payable)
• 非流动负债合计 (Total non-current liabilities)
• 负债合计 (Total liabilities)
• 股本 (Share capital)
• 资本公积 (Capital reserve)
• 盈余公积 (Surplus reserve)
• 未分配利润 (Retained earnings)
• 归属于母公司股东权益合计 (Parent equity)
• 少数股东权益 (Minority interest)
• 所有者权益合计 (Total equity)
• 负债和股东权益总计 (Total liabilities + equity)

Cash Flow Statement (现金流量表)

Chinese indirect method:

• 经营活动现金流量 (Operating CF):
  • Start from 净利润
  • Adjust: D&A, 财务费用, 投资收益, 营运资本 changes
  • 经营活动产生的现金流量净额
• 投资活动现金流量 (Investing CF):
  • 购建固定资产/无形资产 (CapEx)
  • 处置收回 (Asset sales)
  • 投资支付/收回 (Investment purchases/sales)
• 筹资活动现金流量 (Financing CF):
  • 吸收投资 (Equity issuance)
  • 取得借款 (Borrowings)
  • 偿还债务 (Debt repayment)
  • 分配股利 (Dividends)
• 现金净增加额 (Net change in cash)
• 期末现金余额 (Ending cash balance)

Step 4: Balance Checks

CRITICAL — Chinese-specific checks:

1. Cash reconciliation: 货币资金 (BS) = 期末现金余额 (CF) ± restricted cash
2. BS balancing: 资产总计 = 负债和股东权益总计
3. RE roll-forward: 期初未分配利润 + 本期净利润 - 提取盈余公积 - 现金分红 = 期末未分配利润
4. CF-IS linkage: 净利润 (IS) → starting point for 经营CF
5. CapEx check: 购建固定资产 (CF) ≈ 固定资产增加 (BS) + 累计折旧增加 (BS)
6. Debt check: 借款变动 (CF) = 短期借款变动 + 长期借款变动 (BS)
7. Tax check: 所得税费用 (IS) vs 实际缴纳 (CF indirect method add-back)

Step 5: Scenario & Sensitivity

• Base / Bear / Bull scenarios
• Sensitivity on revenue growth, gross margin, tax rate
• Key drivers: 毛利率, 期间费用率, 营运资本效率

China-Specific Modeling Conventions

增值税 (VAT)

• Listed companies report 营业收入 net of VAT
• 税金及附加 includes 消费税 but not VAT
• VAT is off-balance-sheet in most models

商誉 (Goodwill)

• Common from M&A, especially 2015-2016 boom
• Flag if 商誉 > 30% of 归母权益
• Note annual impairment testing requirements

研发费用 (R&D)

• CAS requires R&D to be expensed (not capitalized like IFRS allows)
• Some companies disclose R&D capitalization in notes — check if >5% of revenue

折旧 (Depreciation)

• Chinese companies often use straight-line over longer lives
• Typical ranges:
  • Buildings: 20-40 years
  • Equipment: 5-10 years
  • Vehicles: 4-6 years

存货 (Inventory)

• LIFO not permitted under CAS (FIFO or weighted average only)
• 存货计价 affects margin comparability across years

应收款项 (Receivables)

• 应收账款 often high for industrial companies — check DSO
• 应收票据 (notes receivable) vs 应收账款 (trade AR) — treat separately
• 坏账准备 (allowance for doubtful accounts) varies by company

借款 (Debt)

• 短期借款 often high for leveraged companies
• 长期借款 may include 一年内到期非流动负债
• 应付债券 for corporate bond issuers
• Interest expense in 财务费用 (net of interest income)

Excel Formatting (OpenPyXL / Office JS)

Follow the same professional conventions as the base xlsx-author skill, with China-specific adaptations:

• Section headers: Dark blue #1F4E79 with white bold text
• Column headers: Light blue #D9E1F2 with black bold text
• Input cells: Blue font (RGB: 0,0,255) — all hardcoded inputs
• Formula cells: Black font (RGB: 0,0,0)
• Sheet links: Green font (RGB: 0,128,0)
• Currency: CNY (¥) with thousands separator
• Percentages: 0.0% format
• Cell comments: "Source: AkShare, [date], [field], [ticker]"

Number Format Conventions

Quality Checks

Before delivering:

• All three statements balance correctly
• Cash from CF = Cash on BS
• Retained earnings roll-forward ties
• CapEx/Depreciation logic consistent
• Debt changes tie between BS and CF
• Tax rate reasonable (20-28% unless 高新技术企业)
• All hardcoded inputs have cell comments
• All formulas reference cells, no hardcodes in formulas
• Scenario blocks structured correctly (Bear/Base/Bull)
• Sensitivity analysis included

Common Pitfalls

1. Unit mismatch: Mixing 元 and 千元 — always normalize
2. VAT confusion: Double-counting VAT in revenue or COGS
3. Goodwill spike: Forgetting large goodwill from acquisitions
4. Tax rate variance: Assuming 25% when company is 高新技术企业 (15%)
5. R&D understatement: CAS expenses all R&D, but some companies capitalize in notes
6. Receivables inflation: 应收账款 much higher than revenue growth — flag
7. Short-term debt: 短期借款 often high; don't miss current portion of LT debt
8. Minority interest: 少数股东权益 can be significant for conglomerates

Data Source Priority

1. AkShare MCP (primary) — real-time and historical A-share data
2. 巨潮资讯 (cninfo.com.cn) — mandatory disclosures
3. 交易所公告 — SH/SZ exchange filings
4. 公司官网/IR — supplementary data
5. Web search — only if above insufficient, mark [UNSOURCED]

Output Checklist

• Three-statement model fully linked (IS → BS → CF)
• All balance checks pass
• Historical + projected years included
• Scenario analysis (Bear/Base/Bull)
• Sensitivity tables
• All hardcoded inputs sourced and commented
• CAS conventions documented
• Currency consistent (CNY)
• File named: [Ticker]_3StatementModel_[Date].xlsx

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

• ifind-only (strict): Use iFind only, error if unavailable
• ifind-fallback (default): iFind preferred, fallback to AkShare
• akshare-only: Skip iFind, use AkShare only
• wind-only: Wind only, error if unavailable
• wind-fallback: Wind first, fallback to iFind → AkShare