CISC(SH:601005)2017-04-27 16:00Financial Performance - Operating revenue rose by 17.50% to CNY 1,654,922,000 year-on-year[6] - Net profit attributable to shareholders improved by 40.16% to a loss of CNY 593,874,000 compared to the same period last year[6] - Basic and diluted earnings per share improved by 40.91% to a loss of CNY 0.13 per share[6] - The net loss attributable to shareholders after deducting non-recurring gains and losses was CNY 595,254,000, a 42.90% improvement year-on-year[6] - The company reported a loss of 593,236 thousand RMB in Q1 2017, an improvement of 399,230 thousand RMB compared to a loss of 992,466 thousand RMB in the same period last year[12] - Total operating revenue for Q1 2017 was CNY 1,654,922 thousand, an increase from CNY 1,408,443 thousand in the previous year, representing a growth of approximately 17.4%[26] - The net profit for Q1 2017 was a loss of CNY 593,939 thousand, an improvement compared to a loss of CNY 992,483 thousand in the same period last year[26] - Operating revenue for Q1 2017 was CNY 1,563,690 thousand, an increase of 16.8% compared to CNY 1,338,479 thousand in the same period last year[28] - Operating profit for Q1 2017 was a loss of CNY 593,070 thousand, an improvement from a loss of CNY 1,040,079 thousand in Q1 2016[29] - Net profit for Q1 2017 was a loss of CNY 591,690 thousand, compared to a loss of CNY 990,035 thousand in the same period last year[29] - Total comprehensive income for Q1 2017 was a loss of CNY 591,690 thousand, compared to a loss of CNY 990,035 thousand in Q1 2016[29] Assets and Liabilities - Total assets increased by 0.65% to CNY 36,676,495,000 compared to the end of the previous year[6] - The company's total assets amounted to CNY 36,676,220 thousand, slightly up from CNY 36,438,401 thousand[24] - Total liabilities increased to CNY 37,466,489 thousand from CNY 36,638,226 thousand, reflecting a rise of approximately 2.3%[24] - The company's total equity was reported at CNY -790,269 thousand, worsening from CNY -199,825 thousand year-over-year[24] - As of March 31, 2017, the company's total current assets amounted to 3,064,562 thousand RMB, an increase from 2,447,146 thousand RMB at the beginning of the year[18] - Accounts receivable increased significantly to 618,335 thousand RMB from 256,258 thousand RMB at the beginning of the year[18] - Inventory levels increased to CNY 1,428,595 thousand from CNY 972,960 thousand, representing a growth of about 46.8%[23] - Short-term borrowings increased to CNY 6,037,090 thousand from CNY 5,700,587 thousand, an increase of approximately 5.9%[24] Cash Flow - Net cash flow from operating activities decreased by 283.90% to a negative CNY 148,645,000[6] - Cash flow from operating activities for Q1 2017 was a net outflow of CNY 148,645 thousand, a decline from a net inflow of CNY 80,828 thousand in Q1 2016[32] - The company had a total cash inflow from operating activities of CNY 1,034,720 thousand in Q1 2017, down from CNY 1,833,454 thousand in Q1 2016[32] - Cash flow from financing activities for Q1 2017 was a net inflow of CNY 171,809 thousand, compared to a net inflow of CNY 48,030 thousand in the same period last year[33] - The cash and cash equivalents at the end of Q1 2017 were CNY 760,723 thousand, up from CNY 23,794 thousand at the end of Q1 2016[33] - Cash and cash equivalents decreased to CNY 168,960 thousand from CNY 362,385 thousand, a decline of about 53.3%[22] - The company experienced a negative impact of -$4,647 million from foreign exchange fluctuations on cash and cash equivalents[36] - Total cash and cash equivalents decreased by $7,610 million compared to the previous period[36] Shareholder Information - The total number of shareholders reached 177,099 at the end of the reporting period[10] - The largest shareholder, Chongqing Iron and Steel (Group) Co., Ltd., holds 47.27% of shares, with 1,009,000,000 shares pledged[10] Legal and Regulatory Issues - The company has 11 new lawsuits with a total amount involved of approximately 26 million RMB during the reporting period[13] - The company is undergoing a complex major asset restructuring, with significant uncertainties regarding regulatory compliance and creditor agreements[14] - A creditor has applied for the company's restructuring due to inability to repay debts, which introduces major uncertainties regarding the company's financial stability[14] Future Outlook - The company anticipates a cumulative net loss by the end of the next reporting period, but expects a significant reduction in losses due to comprehensive reforms and cost reduction efforts[16] Cost Management - Total operating costs decreased to CNY 2,249,537 thousand from CNY 2,450,946 thousand, a reduction of about 8.2%[26] - The company reported a decrease in sales expenses to CNY 11,730 thousand from CNY 45,226 thousand in the previous year, a reduction of approximately 74%[28] - Financial expenses increased to CNY 259,986 thousand in Q1 2017 from CNY 249,197 thousand in Q1 2016, reflecting a rise of about 4%[28] Pricing and Market Conditions - Steel sales prices increased to 3,277 RMB per ton, representing an 81.86% year-on-year growth, contributing an additional profit of 570 million RMB[12] - The prices of iron ore and coal rose by 62% and 112% year-on-year, respectively, leading to a loss reduction of 350 million RMB[12]