ANDON HEALTH(SZ:002432)2017-04-28 16:00Financial Performance - The company's operating revenue for Q1 2017 was ¥137,048,968.40, representing a 22.03% increase compared to ¥112,311,325.50 in the same period last year[8]. - The net profit attributable to shareholders was -¥15,977,512.45, a decrease of 10.90% from -¥14,406,786.70 year-on-year[8]. - The net cash flow from operating activities was -¥34,852,349.73, reflecting a significant decline of 59.90% compared to -¥21,795,770.73 in the previous year[8]. - The total assets at the end of the reporting period were ¥2,361,219,102.29, showing a slight increase of 0.21% from ¥2,356,194,478.84 at the end of the previous year[8]. - The net assets attributable to shareholders decreased by 1.21% to ¥1,522,935,015.31 from ¥1,541,622,053.58 at the end of the previous year[8]. - The company reported a weighted average return on equity of -1.04%, an improvement of 1.35% from -2.39% in the same period last year[8]. - The basic and diluted earnings per share were both -¥0.0369, a 4.65% improvement from -¥0.0387 year-on-year[8]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 64,416[12]. - The largest shareholder, Shihezi Sanhe Equity Investment Partnership, held 37.28% of the shares, amounting to 161,338,702 shares[12]. Investment and Expenses - Interest receivables increased by 46.54% to $13,463,178.08 due to higher interest income from time deposits[16]. - Long-term equity investments surged by 847.62% to $53,454,098.31 as a result of investments in establishing a merger fund[16]. - Accounts payable rose by 78.42% to $57,893,642.71 driven by increased procurement from expanded production[16]. - Management expenses increased by 44.53% to $57,836,171.74 primarily due to higher technology development costs[16]. - Investment income improved by 152.06% to $2,230,639.01 from returns on purchased financial products[16]. - Income tax expenses skyrocketed by 1559.47% to $1,426,443.20 due to profitability from eDevice[16]. - Cash received from tax refunds increased by 75.57% to $4,903,963.53, reflecting higher export tax rebates[16]. - Cash paid for various taxes surged by 192.07% to $7,046,788.88, attributed to increased tax payments from eDevice[16]. - Capital expenditures for fixed assets and intangible assets rose by 1021.50% to $13,375,647.20 due to increased development spending[16]. - The company established a merger fund, resulting in an investment of $48,143,900.00[16]. Future Outlook - The company expects a net loss of between -60 million to -40 million CNY for the first half of 2017, compared to a net loss of -43.66 million CNY in the same period of 2016[25]. - The company is transitioning from a traditional OEM to a mobile health management direction, focusing on wearable devices and smart hardware[25]. - Significant marketing and management expenses, including R&D investments, are anticipated to impact short-term profitability, with a need for time to convert these investments into profits[25]. - The company aims to establish a health ecosystem centered around users, leveraging mobile healthcare and big data[25]. - The company is competing directly with industry giants in mature markets like Europe and the US, aiming to build a globally influential Chinese mobile healthcare brand[25]. Financial Derivatives - The total initial investment in financial derivatives is 31,040,868 CNY, with a current fair value loss of -1,665,586 CNY[27]. - The company reported a total fair value of 35,313,074 CNY for financial derivatives at the end of the reporting period[27]. Compliance and Governance - There were no violations regarding external guarantees during the reporting period[28]. - The company did not have any non-operating fund occupation by controlling shareholders or related parties during the reporting period[29]. - The company conducted an on-site investigation with institutions on January 18, 2017, to discuss its business strategies[32].