2017-06-16 16:00Financial Performance - Total operating revenue for Q1 2017 reached RMB 37.74 billion, an increase of 69.73% compared to RMB 22.24 billion in Q1 2016[5] - Net profit attributable to shareholders for Q1 2017 was RMB 1.74 billion, reflecting an 8.89% increase from RMB 1.60 billion in the same period last year[5] - Earnings per share for Q1 2017 were RMB 0.285, an increase of 8.78% from RMB 0.262 in Q1 2016[7] - Operating profit reached RMB 2.39 billion, an increase from RMB 2.00 billion, marking a growth of 19.7% year-over-year[41] - Total comprehensive income reached RMB 2.15 billion, compared to RMB 1.55 billion, indicating a growth of 38.6% year-over-year[42] Cash Flow - Net cash flows from operating activities surged to RMB 5.81 billion, a remarkable increase of 455.26% from RMB 1.05 billion in Q1 2016[5] - Cash flows from operating activities amounted to RMB 5.81 billion, significantly up from RMB 1.05 billion year-over-year[48] - Total cash inflows from operating activities were 37,827,320.50 RMB, a decrease from 436,605,319.76 RMB[52] - Net cash flows from investing activities decreased by 151.59% year-over-year, mainly due to expenses for the construction of fixed assets of GEA[17] - Net cash flows from financing activities decreased by 1207.5% year-over-year, primarily due to the repayment of certain debts[17] Revenue Breakdown - The original business (excluding GEA) recorded revenue of RMB 27.25 billion, up 22.6% year-over-year, with white appliances revenue increasing by 24.9%[8] - GEA contributed RMB 10.5 billion to revenue and approximately RMB 467 million to net profit attributable to shareholders in Q1 2017[7] Expenses - Operating cost increased by 66.13% year-over-year, primarily due to growth in original business sales and consolidation of GEA[17] - Selling expenses surged by 107.64% year-over-year, mainly due to the selling expenses of GEA recognized for the period[17] - Financial expenses skyrocketed by 4473.2% from the same period last year, primarily due to increased borrowings[17] - Cash paid for purchase of goods and services was RMB 27.21 billion, compared to RMB 16.81 billion, reflecting a 62.0% increase[48] Assets and Liabilities - The company’s total assets increased by 2.84% to RMB 134.98 billion as of March 31, 2017, compared to RMB 131.26 billion at the end of 2016[5] - Total current assets increased to RMB 73,243,410,193.30 from RMB 69,516,189,034.76, reflecting a growth of approximately 3.5%[31] - Total liabilities decreased slightly to RMB 94,028,342,790.92 from RMB 93,674,923,913.77, a reduction of about 0.4%[33] - Total owners' equity increased to RMB 40,949,954,233.09 from RMB 37,580,366,411.47, reflecting a growth of approximately 6.3%[33] Investments - Investment income decreased by 59.02% year-over-year, mainly due to the reclassification of equity of Bank of Qingdao[17] - The company completed the acquisition of General Electric's household appliances business for US$5.4 billion by the end of the reporting period[18] Other Financial Metrics - The weighted average return on net assets decreased to 6.38% from 6.76% in the previous year[7] - Long-term borrowings increased by 34.47% compared to the beginning of the period, indicating a shift in financial structure[16] - Capital reserve saw a significant increase of 242.42%, primarily due to capital premiums from the conversion of debentures into shares[16] - R&D expenses for the period were RMB 942,104,360.35, up from RMB 913,283,796.32, indicating an increase of about 3.2%[32]