SCMC(SH:600984)2015-04-28 16:00Financial Performance - Operating revenue for the current period was CNY 22,601,327.27, representing a decline of 64.82% year-on-year [11]. - Net profit attributable to shareholders was a loss of CNY 17,672,318.71, compared to a loss of CNY 10,545,558.61 in the same period last year, marking a deterioration of 67.58% [11]. - The company experienced a 68.40% increase in operating losses, with operating profit reported at a loss of CNY 17,640,376.96 [11]. - The company anticipates a significant decline in sales revenue due to a downturn in market demand in the engineering machinery sector, potentially leading to a net loss for the year [17]. - The company reported a net loss of RMB 362,483,831.53, widening from a loss of RMB 344,811,512.82 at the beginning of the year [23]. - Total operating revenue for Q1 2015 was ¥22,601,327.27, a decrease of 64.8% compared to ¥64,241,104.93 in the same period last year [26]. - The net loss for Q1 2015 was ¥17,672,318.71, compared to a net loss of ¥10,545,558.61 in Q1 2014, representing a 67.5% increase in losses year-over-year [26]. - Operating profit for Q1 2015 was -¥17,640,376.96, compared to -¥10,475,062.16 in Q1 2014, indicating a worsening operational performance [26]. - The company reported a decrease in sales revenue from 42,628,155.89 RMB to 30,388,000.97 RMB, reflecting a decline of approximately 28.7% year-over-year [33]. Cash Flow and Liquidity - The net cash flow from operating activities was a negative CNY 452,803.99, compared to a negative CNY 13,893,207.14 in the previous year [6]. - The net cash flow from operating activities improved to -452,803.99 from -13,893,207.14, a 96.74% increase [13]. - Cash flow from operating activities for Q1 2015 was negative at -¥452,803.99, an improvement from -¥13,893,207.14 in the same period last year [30]. - The company experienced a net decrease in cash and cash equivalents of -672,821.85 RMB during Q1 2015, compared to a much larger decrease of -17,753,632.78 RMB in the previous year [33]. - The cash flow from operating activities was primarily affected by a significant increase in payments for goods and services, totaling 10,802,660.60 RMB, compared to 38,582,829.85 RMB last year [33]. - The company’s cash flow management strategies appear to be improving, as evidenced by the reduced net cash outflows in both operating and investing activities compared to the previous year [33]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,021,834,601.75, a decrease of 0.41% compared to the end of the previous year [6]. - Current assets totaled RMB 799,274,661.90 at the end of the period, slightly up from RMB 798,677,105.20 at the beginning of the year, reflecting a marginal increase of 0.07% [22]. - Total liabilities rose to RMB 449,140,057.07 from RMB 436,034,115.22, marking an increase of approximately 3.03% [23]. - Total equity attributable to shareholders decreased to RMB 572,694,544.68 from RMB 589,982,306.51, a decline of approximately 2.21% [23]. - Cash and cash equivalents decreased to RMB 12,805,405.51 from RMB 14,435,170.06, a drop of about 11.29% [22]. - The company’s long-term equity investments decreased to RMB 469,297.04 from RMB 500,000.00, a decline of approximately 6.14% [22]. Expenses and Costs - Financial expenses increased by 37.21% to CNY 2,533,696.78, primarily due to increased borrowing costs [11]. - Total operating costs for Q1 2015 were ¥40,211,001.27, down 46.3% from ¥74,716,167.09 in Q1 2014 [26]. - The company reported a decrease in sales expenses to ¥5,037,782.18 from ¥5,855,355.05 in the previous year, a reduction of 14% [26]. - Management expenses slightly decreased to ¥12,520,836.74 from ¥12,549,147.69, showing a marginal improvement [26]. - The company recorded an investment loss of ¥30,702.96 in Q1 2015, with no investment income reported in the previous year [26]. Strategic Initiatives - The company plans to acquire 100% equity of Shanghai Pangyuan Machinery Leasing Co., Ltd. for 148,800.00 million and Zizhong Tiancheng Engineering Machinery Co., Ltd. for 41,700.00 million, totaling 190,500.00 million [13]. - The company intends to raise up to 63,500 million through a private placement of no more than 87,950,138 shares to specific investors [13]. - The company has received acceptance from the China Securities Regulatory Commission for its application regarding the asset purchase [14]. - The company is undergoing a major asset restructuring, which requires approval from the China Securities Regulatory Commission [16]. - The company has committed to avoiding any business competition with its controlling shareholder, ensuring no direct or indirect competition in the construction machinery sector [16]. - The company has noted that the macroeconomic environment remains challenging, impacting overall industry performance [17].