DHHI(SZ:002204)2014-04-28 16:00Financial Performance - Revenue for Q1 2014 was CNY 1,022,184,608.38, a decrease of 12.24% compared to CNY 1,164,780,323.26 in the same period last year[7] - Net profit attributable to shareholders was CNY 5,392,724.67, down 70.49% from CNY 18,273,441.88 year-on-year[7] - Basic earnings per share decreased by 50% to CNY 0.01 from CNY 0.02 in the same period last year[7] - The weighted average return on net assets was 0.08%, down from 0.29% in the previous year[7] - Operating profit for the current period is -7,890,801.47 CNY, down 28,960,729.12 CNY compared to the same period last year, attributed to a larger decline in sales revenue than in costs, along with increased R&D expenses[15] - The net profit attributable to shareholders for the first half of 2014 is expected to range from 15.88 million to 39.71 million RMB, representing a decrease of 50% to 80% compared to the same period in 2013, which was 79.41 million RMB[23] - The decline in performance is attributed to the distribution of contracts and a decrease in product sales revenue[23] - The company anticipates a positive net profit for the first half of 2014, indicating it is not in a turnaround situation[23] Cash Flow - Net cash flow from operating activities was negative CNY 86,353,669.49, a decline of 196.78% compared to CNY 89,223,226.08 in the previous year[7] - The net cash flow from operating activities for the current period is -86,353,669.49 CNY, a decrease of 175,576,895.57 CNY compared to the same period last year, primarily due to a decline in cash received from sales of goods and services[16] - The net cash flow from investing activities for the current period is -10,788,297.07 CNY, a decrease of 7,277,717.94 CNY year-on-year, mainly due to reduced cash from fixed asset disposals and increased cash payments for fixed asset construction[16] - The net cash flow from financing activities for the current period is -24,401,666.66 CNY, an increase of 249,612,458.34 CNY compared to the same period last year, primarily due to increased borrowings and a decrease in loan repayments[16] Assets and Liabilities - Total assets at the end of the reporting period were CNY 18,527,018,145.60, down 1.79% from CNY 18,865,018,116.00 at the end of the previous year[7] - The company reported a significant increase in long-term borrowings, which rose to CNY 406,000,000.00, an increase of CNY 180,000,000.00 compared to the beginning of the year[14] Shareholder Information - The number of shareholders at the end of the reporting period was 12,059[10] - The largest shareholder, Dalian Heavy Industry Group Co., Ltd., holds 78.84% of the shares[10] Non-Recurring Items - Non-recurring gains and losses totaled CNY 14,541,888.93 for the reporting period[8] - Non-operating income for the current period is 15,461,022.56 CNY, an increase of 5,907,084.95 CNY, representing a growth of 61.83%, mainly due to the completion of government subsidies and an increase in government grants received[15] - Non-operating expenses for the current period are 883,111.16 CNY, a decrease of 1,173,478.96 CNY, reflecting a decline of 57.06%, primarily due to a significant reduction in fixed asset disposals and product quality penalties[15] Impairment and Investment Income - The impairment loss for the current period amounts to -18,094,422.12 CNY, a decrease of 8,055,984.17 CNY compared to the same period last year, primarily due to a reduction in receivables and a decrease in bad debt provisions[15] - Investment income for the current period is -2,493,348.16 CNY, a decrease of 4,404,750.29 CNY year-on-year, mainly due to losses from joint ventures[15] Taxation - Income tax expense for the current period is 4,096,293.16 CNY, a decrease of 8,333,954.21 CNY, down 67.05%, mainly due to a reduction in taxable income[15] Corporate Governance - The company is monitoring the progress of the profit compensation agreement with Dalian Heavy Industry and will convene a shareholders' meeting to discuss related matters within the agreed timeframe[17]