Eastcompeace(SZ:002017)2017-04-25 16:00Financial Performance - The company's revenue for Q1 2017 was CNY 283,065,126.50, representing a slight increase of 0.11% compared to CNY 282,760,960.82 in the same period last year[8]. - Net profit attributable to shareholders was CNY 8,760,737.39, up 6.44% from CNY 8,230,962.59 year-on-year[8]. - The net profit after deducting non-recurring gains and losses increased by 36.08% to CNY 8,508,834.35 from CNY 6,252,864.38 in the previous year[8]. - Operating costs decreased to CNY 270,560,521.34 from CNY 273,865,060.19, resulting in an operating profit of CNY 7,757,842.06 compared to CNY 6,792,075.57 last year[44]. - Basic and diluted earnings per share rose to CNY 0.0253 from CNY 0.0238, indicating improved profitability on a per-share basis[45]. - The company reported a total comprehensive income of CNY 7,230,806.22, down from CNY 10,529,494.68 in the previous year[45]. - The net profit attributable to shareholders for the first half of 2017 is expected to range from ¥20,416,900 to ¥34,028,100, representing a change of -25.00% to 25.00% compared to ¥27,222,500 in the same period of 2016[27]. Cash Flow and Liquidity - The net cash flow from operating activities improved by 32.21%, reaching CNY -91,130,386.38 compared to CNY -134,421,456.29 in the same period last year[8]. - The net cash flow from operating activities increased by 43.29 million yuan compared to the same period last year, mainly due to a decrease in procurement volume and a decline in the prices of key materials[19]. - The cash flow from operating activities shows a net outflow of ¥91,130,386.38, an improvement from a net outflow of ¥134,421,456.29 in the previous period[52]. - The company reported a cash inflow from operating activities totaling ¥274,271,317.06, down from ¥332,962,927.94 in the previous period[51]. - The company's cash and cash equivalents decreased to ¥501,681,271.07 from ¥614,468,903.07[35]. - The cash and cash equivalents at the end of the period were 449,253,513.33, down from 562,939,449.78 at the beginning of the period, representing a decline of approximately 20%[57]. - The company’s cash and cash equivalents decreased by 113,685,936.45 during the quarter, highlighting liquidity challenges[56]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,571,259,139.32, a decrease of 1.18% from CNY 1,590,050,860.96 at the end of the previous year[8]. - Total liabilities decreased to CNY 645,901,002.56 from CNY 670,857,220.92, reflecting improved financial stability[37]. - Current assets totaled ¥1,212,118,175.76, slightly down from ¥1,227,371,640.72 at the start of the year[35]. - Accounts receivable increased to ¥199,435,813.92 from ¥157,545,717.69, indicating a growth in sales or credit terms[35]. - Inventory levels rose to ¥441,007,437.55 from ¥395,131,752.71, suggesting increased production or stockpiling[35]. - The company's equity remained stable with total equity at ¥925,358,136.76 as of March 31, 2017[37]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 40,006[12]. - The largest shareholder, Putian Dongfang Communication Group Co., Ltd., held 29.13% of the shares[12]. - The company has committed to avoid engaging in competitive businesses that may harm the interests of shareholders during the actual controller's tenure[24]. Investment and Financing Activities - The net cash flow from investing activities increased by 1.87 million yuan year-on-year, mainly due to an increase in payments for equipment purchases[19]. - The net cash flow from financing activities decreased by 48.32 million yuan year-on-year, primarily due to a higher repayment amount in the same period last year[19]. - The company plans to raise funds through a private placement of up to 38,775,550 A-shares to finance projects related to NB-IoT technology and other initiatives[21]. - The company is currently undergoing a review process by the China Securities Regulatory Commission regarding the private placement, with implementation still uncertain[21]. Financial Management - Financial expenses decreased by 321.20% year-on-year, primarily due to the appreciation of the US dollar and effective risk control measures leading to an increase in exchange gains[19]. - The company continues to focus on cost management, with a reduction in sales expenses to CNY 23,944,214.75 from CNY 19,340,463.60[44]. - Sales expenses decreased to ¥13,266,572.37 from ¥15,857,371.87, indicating a reduction of approximately 16.4%[48]. - The company recorded an increase in asset impairment losses to ¥6,489,034.35 from ¥4,577,030.96, representing a rise of about 41.8%[48]. - The company’s financial expenses improved to ¥49,760.75 from a loss of ¥947,412.18, indicating a recovery[48]. Regulatory and Compliance - The company has no reported violations regarding external guarantees during the reporting period[28]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[29]. - The company did not undergo an audit for the first quarter report, which may affect the reliability of the financial data presented[58]. - The impact of exchange rate fluctuations on cash and cash equivalents was a positive 202,129.53, showing some resilience against currency volatility[56].