FSSS(SH:600399)2018-06-25 16:00Financial Performance - Operating revenue increased by 12.12% to CNY 1,557,813,521.94 year-on-year[6] - Net profit attributable to shareholders was a loss of CNY 21,944,521.39, a decrease of 169.75% compared to the same period last year[6] - The company reported a net profit of -21,944,521.39, a decrease of 169.75% compared to the previous period, primarily due to raw material price increases outpacing sales price increases[12] - The net profit for Q1 2018 was a loss of CNY 21,944,521.39, compared to a profit of CNY 31,460,520.85 in Q1 2017, representing a decline of 169.8%[34] - Operating profit for Q1 2018 was a loss of CNY 21,983,379.31, compared to a profit of CNY 35,632,552.42 in the previous year[34] Cash Flow - Net cash flow from operating activities decreased by 300.05% to a negative CNY 134,314,159.86[6] - The net cash flow from operating activities was -134,314,159.86, reflecting a significant increase in raw material purchase expenditures[12] - Cash inflows from operating activities in Q1 2018 totaled CNY 1,694,722,311.10, compared to CNY 3,634,557,160.75 in Q1 2017, indicating a significant decrease[38] - The net cash flow from operating activities for Q1 2018 was -84,152,315.56 RMB, a decrease from 70,544,940.84 RMB in the same period last year[42] - Cash outflow from operating activities totaled 1,776,535,787.31 RMB, up from 1,570,330,534.48 RMB in the previous year, indicating a rise of about 13.1%[42] Assets and Liabilities - Total assets decreased by 4.50% to CNY 9,135,357,775.57 compared to the end of the previous year[6] - Total current assets decreased from CNY 5,131,672,863.63 at the beginning of the year to CNY 4,734,035,030.60, a decline of approximately 7.75%[26] - Total liabilities decreased from CNY 10,692,572,266.40 to CNY 10,284,019,563.04, a reduction of about 3.81%[28] - The company's equity attributable to shareholders decreased from CNY -1,126,717,266.08 to CNY -1,148,661,787.47, reflecting a decline in retained earnings[29] - Total current liabilities decreased from CNY 9,621,452,035.79 to CNY 9,280,632,490.26, a decrease of approximately 3.55%[28] Shareholder Information - The number of shareholders reached 118,613 at the end of the reporting period[9] - The basic and diluted earnings per share for Q1 2018 were both CNY -0.02, down from CNY 0.02 in the same quarter last year[35] Operational Challenges - The company has been warned of delisting risks due to significant internal control deficiencies leading to negative net assets and consecutive years of losses[13] - The company faces bankruptcy reorganization risks as it has received a reorganization application from a creditor due to inability to repay debts[18] - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[14] Accounting and Financial Adjustments - The company has identified significant accounting errors affecting total assets and net assets, with corrections impacting previous years' net profits[23] - The company plans to improve its asset situation and reduce financial leverage with support from its controlling shareholder and government[20] - The restructuring plan for the controlling shareholder, Northeast Special Steel Group, is still in progress, with new investors expected to gain control[22] Inventory and Material Costs - Inventory increased from CNY 1,238,222,941.81 to CNY 1,332,873,130.39, an increase of approximately 7.61%[27] - Engineering materials increased significantly by 12,528.76% to CNY 45,194,342.31 due to increased purchases[11] - The cash flow from operating activities was negatively impacted by increased payments for other operational activities, which rose to 287,376,863.94 RMB from 25,778,542.85 RMB year-over-year[42]