GCLSI(SZ:002506)2014-04-28 16:00Financial Performance - Revenue for Q1 2014 was CNY 133.34 million, an increase of 41.54% compared to CNY 94.21 million in the same period last year[8]. - Net profit attributable to shareholders was a loss of CNY 107.30 million, improving by 59.14% from a loss of CNY 262.62 million year-over-year[8]. - Operating income increased by 42% year-over-year, primarily due to increased sales[18]. - Other income from operating activities increased by 1089% year-over-year, driven by government subsidies from completed overseas power plants[18]. - The company expects a net loss of between CNY 200 million and CNY 250 million for the first half of 2014, compared to a net profit of CNY -415.14 million in the same period of 2013[31]. Cash Flow and Assets - Net cash flow from operating activities was CNY 25.18 million, a significant increase of 136.21% compared to a negative cash flow of CNY 69.54 million in the previous year[8]. - Total assets at the end of the reporting period were CNY 6.22 billion, a decrease of 0.86% from CNY 6.27 billion at the end of the previous year[8]. - The company's net assets attributable to shareholders were CNY -439.50 million, a decline of 32.46% from CNY -331.80 million at the end of the previous year[8]. Financial Obligations and Credit Rating - The company continues to face liquidity difficulties, with overdue bank loans and frozen accounts impacting operations[16]. - The company's credit rating was downgraded to CCC for both the issuer and the "11 Chaori Bond" due to significant revenue decline and continued losses[21]. - The second interest payment of the "11 Chaori Bond" was not fully paid on the due date of March 7, 2014, with only 4 million RMB paid[22]. - The company is facing bankruptcy reorganization proceedings initiated by a creditor due to inability to repay debts[23]. Shareholder and Investment Activities - The controlling shareholder, Mr. Ni Kailu, has pledged 315,117,931 shares, accounting for 37.35% of the total share capital of 843,520,000 shares[19]. - The company issued a 1 billion RMB bond ("11 Chaori Bond") with a fixed interest rate of 8.98% on March 9, 2012, which has a maturity of 5 years[19]. - The company has not engaged in high-risk securities investments in the past twelve months and has committed to not engage in such investments for the next twelve months[30]. - The company plans to permanently supplement its liquidity with funds raised from the "50MW monocrystalline silicon solar cell project" and the "100MW crystalline silicon solar module project" without engaging in high-risk investments[30]. Legal and Operational Issues - The company has not received any payment for the transfer of equity in nine power station projects in Southern Italy, valued at EUR 24.94 million[16]. - The company has been involved in a legal dispute regarding the sale of 60% of its shares in Qinghai Jinguo Xing New Energy Technology Co., with a transaction price of 20,550,000 RMB[26].