STSS(SZ:000825)2017-04-26 16:00Financial Performance - The company's operating revenue for Q1 2017 was ¥16,829,799,330.21, representing a 47.91% increase compared to ¥11,378,611,465.02 in the same period last year[8]. - Net profit attributable to shareholders was ¥321,752,165.61, a significant recovery from a loss of ¥543,890,962.52 in the previous year[8]. - Basic earnings per share improved to ¥0.056 from a loss of ¥0.095 in the previous year[8]. - Revenue for the reporting period reached ¥1,682,979.93 million, an increase of 47.91% compared to ¥1,137,861.15 million in the same period last year, primarily due to higher steel sales prices[17]. - Operating costs increased to ¥1,519,811.09 million, up 47.61% from ¥1,029,611.07 million year-on-year, mainly due to rising procurement prices for raw and fuel materials[17]. - The company reported a 117.74% increase in non-operating income, totaling ¥2,764.36 million compared to ¥1,269.58 million, mainly from increased government subsidies[17]. - The income tax expense decreased by 37.54% to ¥200.91 million from ¥321.66 million, mainly due to reduced tax provisions by subsidiaries[17]. Assets and Shareholder Information - Total assets at the end of the reporting period were ¥72,479,726,125.32, a slight decrease of 0.15% from ¥72,586,495,033.65 at the end of the previous year[8]. - The company's net assets attributable to shareholders increased by 1.43% to ¥22,764,762,636.36 from ¥22,443,663,382.63 at the end of the previous year[8]. - The number of ordinary shareholders at the end of the reporting period was 235,667[10]. - The largest shareholder, Taiyuan Iron and Steel (Group) Co., Ltd., holds 63.49% of the shares, totaling 3,616,493,790 shares[11]. Cash Flow and Operating Activities - The net cash flow from operating activities decreased by 74.48% to ¥542,644,123.03, down from ¥2,126,118,447.16 in the same period last year[8]. Investment and Derivative Activities - Investment income surged by 1,030.93% to ¥8,314.15 million from ¥735.16 million, attributed to increased gains from financial derivative instruments[17]. - The total amount of derivative investments at the end of the reporting period was ¥6,155.25 million, with no significant changes in accounting policies or principles compared to the previous period[22]. - The company has implemented a risk management framework for its derivative investments, focusing on hedging against foreign exchange and interest rate fluctuations[23]. - The company has established a comprehensive internal control system to manage risks associated with derivative trading, ensuring compliance with legal and regulatory requirements[23]. Operational Insights - The company engaged in multiple on-site investigations with institutions to discuss production operations and the steel industry status throughout January to March 2017[25]. - The company did not incur any asset impairment losses during the reporting period, marking a 100% decrease from ¥49,227.63 million in the previous year[17]. - Other current assets saw a significant increase of 224.57%, reaching ¥3,648,540.00, primarily due to an increase in deductible VAT[16]. - The company reported a 45.70% increase in notes receivable, amounting to ¥320,823,140.00, due to increased settlement volume[16]. Compliance and Governance - No violations of external guarantees were reported during the period[26]. - There were no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[27]. - Operating expenses rose to ¥48,611.15 million, a 50.73% increase from ¥32,250.31 million, primarily due to higher research and development costs[17].