VEKEN TECHNOLOGY(SH:600152)2014-04-28 16:00Financial Performance - Revenue for the first quarter was CNY 358,886,130.58, representing a decline of 19.77% year-on-year[10] - Net profit attributable to shareholders was a loss of CNY 27,273,236.86, compared to a loss of CNY 22,398,504.89 in the same period last year[10] - Basic and diluted earnings per share were both -CNY 0.0929, compared to -CNY 0.0763 in the same period last year[10] - Total operating revenue for the current period was CNY 358,886,130.58, a decrease of 19.8% compared to CNY 447,348,459.54 in the previous period[30] - Total operating costs amounted to CNY 399,495,191.70, down 19.0% from CNY 493,278,053.95 in the previous period[30] - Net profit for the current period is -¥31,157,161.03, compared to -¥26,962,740.65 in the previous period, indicating a decline in profitability[31] - Total comprehensive income for the current period is -¥30,827,950.16, compared to -¥27,105,037.55 in the previous period[31] Cash Flow - Cash flow from operating activities improved to a negative CNY 5,889,012.30, compared to a negative CNY 35,467,456.34 in the previous year[10] - The net cash flow from operating activities was CNY -5,889,012.30, indicating a significant decrease in cash inflows during the reporting period[16] - Cash inflow from investment activities is ¥32,268,343.74, significantly lower than ¥1,487,468,261.71 in the previous period[38] - Cash flow from financing activities results in a net outflow of -¥9,940,152.47, compared to -¥58,132,996.98 in the previous period[38] - Cash outflow from operating activities totaled $127.3 million, compared to $431.2 million in the previous period[41] - The net increase in cash and cash equivalents was $12.7 million, contrasting with a decrease of $185.2 million last year[41] Assets and Liabilities - Total assets decreased by 3.46% to CNY 2,271,152,938.47 compared to the end of the previous year[10] - Current liabilities totaled CNY 1,274,817,202.38, a slight decrease from CNY 1,317,557,362.03 in the previous period[24] - Non-current liabilities totaled CNY 144,811,330.12, down from CNY 152,608,586.68, indicating a reduction of about 5.1%[25] - The total equity attributable to shareholders decreased to CNY 772,446,870.71 from CNY 799,390,896.70, a decrease of approximately 3.4%[25] - The company's cash and cash equivalents decreased from ¥268.24 million at the beginning of the year to ¥253.34 million[23] Shareholder Information - The total number of shareholders was 38,202 at the end of the reporting period[12] - The largest shareholder, Weike Holdings Group, held 24.28% of the shares, amounting to 71,259,939 shares[12] - The second-largest shareholder, Ningbo Industrial Investment Co., Ltd., held 12.71% of the shares, totaling 37,297,700 shares[12] Investment Activities - The company reported a total of CNY 6,983,259.61 in non-operating income and expenses for the period[11] - The company's investment income decreased by 36.34% to CNY 13,033,380.91 compared to the previous period, mainly due to the high investment income from the transfer of equity in the previous year[15] - The company successfully transferred 100% equity of its subsidiary, Ningbo Dunhuang Import and Export Co., Ltd., for a base price of CNY 47,771,400, reflecting a 7.90% appraisal increase[16] - The company invested CNY 18,000,000 in Shanghai Zhongcheng Hejin Investment Center (Limited Partnership) for project investment purposes[17] - The company has decided to change its investment method by transferring its investment funds to Zhongcheng Alliance, with an expected annual return of 12.8% after business tax, and an investment period not exceeding 14 months[18] Operational Challenges - The company's net profit attributable to the parent company for the first half of 2014 is expected to be a loss, primarily due to a decline in product demand and increased production costs during industry adjustments[19] - The company is undergoing an industry adjustment process, which is expected to slow down the improvement of its performance[19] - The company has resolved competition issues with its controlling shareholder by transferring its stake in Ningbo Weike Jinghua Real Estate Development Co., Ltd.[19] - The company has committed to not engage in competing businesses without consent from the company, ensuring the protection of minority shareholders' interests[18]