LNCD(SH:600739)2014-04-28 16:00I. Important Notice This section presents the company's standard declaration, confirming the board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, and clarifies that the quarterly financial statements are unaudited - The company's board of directors, supervisory board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions5 - The company's financial statements for the first quarter of 2014 are unaudited6 II. Company's Major Financial Data and Shareholder Changes This section outlines the company's core financial performance and shareholder structure in Q1 2014, showing year-over-year growth in operating revenue and net profit, with 114,222 shareholders and Liaoning Chengda Group Co., Ltd. as the largest shareholder 2.1 Major Financial Data In Q1 2014, the company achieved operating revenue of RMB 2.034 billion, up 8.29% YoY, and net profit attributable to shareholders of RMB 208 million, up 8.68% YoY, with operating cash flow turning positive to RMB 222 million and basic EPS at RMB 0.1526 | Indicator | Current Period (Jan-Mar) (RMB) | Prior Year Period (Jan-Mar) (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,034,087,504.79 | 1,878,451,617.91 | 8.29% | | Net Profit Attributable to Shareholders | 208,263,611.33 | 191,638,245.86 | 8.68% | | Net Cash Flow from Operating Activities | 222,475,907.24 | -47,277,254.98 | N/A | | Basic Earnings Per Share (RMB/share) | 0.1526 | 0.1404 | 8.68% | | Weighted Average Return on Net Assets | 1.86% | 1.83% | increased by 0.03 percentage points | | Item | Current Period Amount (Jan-Mar) (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -86,807.49 | | Government Grants Recognized in Current Profit/Loss | 5,724,151.09 | | Net Other Non-operating Income/Expenses | -564,126.87 | | Total | 3,460,949.63 | 2.2 Shareholder Count, Top Ten Shareholders, and Top Ten Non-restricted Shareholders as of Report End As of the report end, the company had 114,222 shareholders, with Liaoning Chengda Group Co., Ltd. as the largest shareholder holding 12.45%, and no related party or concerted action relationships found among the top ten shareholders - As of the end of the reporting period, the company had 114,222 shareholders12 | Shareholder Name | Shareholder Type | Shareholding (%) | Total Shares Held | | :--- | :--- | :--- | :--- | | Liaoning Chengda Group Co., Ltd. | State-owned Legal Person | 12.45 | 169,889,039 | | CITIC Securities Co., Ltd. | Other | 2.42 | 33,044,574 | | Chen Guoyi | Unknown | 1.31 | 17,852,000 | | Fubon Life Insurance Co., Ltd. - Proprietary Funds | Other | 0.90 | 12,290,389 | | Mo Lijun | Unknown | 0.87 | 11,848,521 | III. Significant Matters This section discloses significant matters during the reporting period, including analysis of major accounting item changes, progress on the non-public stock offering approved by the CSRC, and confirms no major commitments or performance warnings requiring disclosure 3.1 Major Changes and Reasons for Key Financial Statement Items and Indicators During the reporting period, several financial statement items showed significant changes, with short-term borrowings increasing 207% due to financing adjustments, other current liabilities decreasing 99% due to repayment of maturing short-term financing bonds, and notable changes in notes receivable, prepayments, and other non-current assets | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Notes Receivable | -79% | Mainly due to subsidiaries' notes maturing and being collected | | Prepayments | 34% | Mainly due to increased prepayments for goods by subsidiaries | | Short-term Borrowings | 207% | Mainly due to the company adjusting its financing methods, leading to an increase in short-term borrowings | | Advances from Customers | 133% | Mainly due to increased advances from customers as subsidiaries had not yet settled accounts | | Other Current Liabilities | -99% | Mainly due to the company repaying maturing short-term financing bonds | | Capital Reserve | -34% | Mainly due to other equity changes in associate GF Securities, accounted for under the equity method | 3.2 Analysis of Progress, Impact, and Solutions for Significant Matters The company's application for a non-public offering of shares for 2013 was approved by the China Securities Regulatory Commission in January 2014, and the board will proceed with related matters based on the approval and shareholder authorization - The company's application for a non-public offering of shares received approval from the China Securities Regulatory Commission (CSRC Approval [2014] No. 111) on January 26, 2014, and the company will expedite subsequent procedures15 3.3 Fulfillment of Commitments by the Company and Shareholders Holding 5% or More During the reporting period, neither the company nor shareholders holding 5% or more had any commitments requiring disclosure - No relevant commitments during the reporting period16 3.4 Warning and Explanation for Cumulative Net Profit from Year-Start to Next Reporting Period End Potentially Being a Loss or Experiencing Significant Change Compared to Prior Year The company does not anticipate cumulative net profit from the beginning of the year to the end of the next reporting period to be a loss or to experience significant changes compared to the prior year - The company has not forecasted cumulative net profit from the beginning of the year to the end of the next reporting period to be a loss or to undergo significant changes18 IV. Appendix This appendix includes the company's unaudited major financial statements for Q1 2014, comprising consolidated and parent company balance sheets, income statements, and cash flow statements Consolidated Balance Sheet As of March 31, 2014, the company's consolidated total assets were RMB 18.108 billion, up 1.21% from year-start; total liabilities were RMB 6.179 billion; and net assets attributable to shareholders were RMB 11.314 billion, up 1.62% from year-start | Item | Period-End Balance (RMB) | Year-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 18,107,673,027.44 | 17,891,122,038.85 | | Total Current Assets | 4,850,860,060.11 | 4,925,144,979.07 | | Total Non-current Assets | 13,256,812,967.33 | 12,965,977,059.78 | | Total Liabilities | 6,179,234,697.17 | 6,043,414,128.84 | | Total Current Liabilities | 3,968,584,721.11 | 3,931,271,425.59 | | Total Non-current Liabilities | 2,210,649,976.06 | 2,112,142,703.25 | | Total Owners' Equity | 11,928,438,330.27 | 11,847,707,910.01 | | Total Owners' Equity Attributable to Parent Company | 11,314,177,336.13 | 11,134,003,574.51 | Parent Company Balance Sheet As of March 31, 2014, the parent company's total assets were RMB 14.237 billion, total liabilities were RMB 3.243 billion, and owners' equity was RMB 10.994 billion | Item | Period-End Balance (RMB) | Year-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 14,236,996,109.18 | 14,175,183,485.91 | | Total Liabilities | 3,243,425,493.47 | 3,528,659,134.01 | | Total Owners' Equity | 10,993,570,615.71 | 10,646,524,351.90 | Consolidated Income Statement In Q1 2014, the company achieved consolidated total operating revenue of RMB 2.034 billion, up 8.29% YoY; operating profit of RMB 269 million, up 4.20% YoY; and net profit attributable to parent company owners of RMB 208 million, up 8.68% YoY | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 2,034,087,504.79 | 1,878,451,617.91 | | II. Total Operating Costs | 1,938,001,955.75 | 1,770,756,936.36 | | III. Operating Profit | 268,654,547.37 | 257,822,111.06 | | IV. Total Profit | 273,727,764.10 | 261,571,808.20 | | V. Net Profit | 244,493,456.11 | 228,537,867.99 | | Net Profit Attributable to Parent Company Owners | 208,263,611.33 | 191,638,245.86 | Parent Company Income Statement In Q1 2014, the parent company achieved operating revenue of RMB 46.47 million and net profit of RMB 376 million, with net profit significantly exceeding operating revenue primarily due to RMB 398 million in investment income, including RMB 172 million from associates and joint ventures | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | I. Operating Revenue | 46,471,765.73 | 20,551,106.38 | | Investment Income | 397,558,362.46 | 353,141,423.00 | | II. Operating Profit | 376,459,478.66 | 338,029,206.46 | | IV. Net Profit | 376,459,478.66 | 339,785,714.51 | Consolidated Cash Flow Statement In Q1 2014, consolidated net cash flow from operating activities significantly improved to RMB 222 million from RMB -47 million in the prior year, with net cash outflow from investing activities of RMB 258 million, net cash inflow from financing activities of RMB 67 million, and period-end cash and cash equivalents of RMB 928 million | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 222,475,907.24 | -47,277,254.98 | | Net Cash Flow from Investing Activities | -257,945,428.29 | -414,271,339.14 | | Net Cash Flow from Financing Activities | 66,709,016.15 | 48,975,228.72 | | Net Increase in Cash and Cash Equivalents | 32,045,436.23 | -412,288,446.03 | Parent Company Cash Flow Statement In Q1 2014, the parent company's net cash flow from operating activities was RMB -69 million, net cash inflow from investing activities was RMB 253 million, net cash outflow from financing activities was RMB 286 million, and period-end cash and cash equivalents were RMB 20 million | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -68,697,651.91 | -537,068,510.77 | | Net Cash Flow from Investing Activities | 253,074,325.63 | 180,507,399.45 | | Net Cash Flow from Financing Activities | -286,228,096.06 | 270,568,638.87 | | Net Increase in Cash and Cash Equivalents | -101,839,779.40 | -85,992,472.45 |