TKC(SZ:200512)2014-04-24 16:00Financial Performance - Revenue for the first quarter was CNY 424,258,718.53, a decrease of 0.15% compared to CNY 424,878,316.41 in the same period last year[9]. - Net profit attributable to shareholders decreased by 28.12% to CNY 5,447,385.36 from CNY 7,578,667.87 year-on-year[9]. - Net profit excluding non-recurring gains and losses increased by 176.74% to CNY 11,424,272.23 compared to CNY 4,128,159.49 in the previous year[9]. - Basic earnings per share decreased by 25.00% to CNY 0.03 from CNY 0.04 in the same period last year[9]. - Diluted earnings per share also decreased by 25.00% to CNY 0.03 from CNY 0.04 year-on-year[9]. - The weighted average return on equity decreased by 0.50% to 1.04% from 1.54% in the previous year[9]. Cash Flow and Assets - The net cash flow from operating activities improved by 45.13%, reaching CNY -15,588,009.47, compared to CNY -28,409,039.92 in the same period last year[9]. - Total assets increased by 21.17% to CNY 2,048,719,512.95 from CNY 1,690,801,284.83 at the end of the previous year[9]. - Shareholders' equity attributable to the parent company rose by 1.34% to CNY 527,675,019.15 from CNY 520,693,211.26 at the end of last year[9]. - The company reported a net cash flow from financing activities of 468,848,906.82, up 102.24% from 231,831,944.50, driven by increased export financing and loans from the controlling shareholder[18]. Financial Assets and Liabilities - The company's trading financial assets decreased to 0.00 from 21,120,100.00, a decline of 100.00%, primarily due to valuation losses on unfulfilled forward foreign exchange contracts[18]. - Interest receivables increased significantly to 3,927,621.02 from 110,833.33, a rise of 3443.72%, mainly due to an increase in fixed deposits[18]. - Other current assets rose to 300,000,000.00 from 50,000,000.00, an increase of 500.00%, attributed to the purchase of wealth management products[18]. - Short-term borrowings surged to 370,971,630.00 from 30,484,500.00, a jump of 1116.92%, due to increased bank short-term loans[18]. Investment and Income - The company experienced a significant increase in investment income, rising to 7,075,877.04 from 1,520,632.17, a growth of 365.32%, due to higher returns from settled forward foreign exchange and wealth management products[18]. - The company recorded a decrease in asset impairment losses to -5,248,202.75 from 1,846,599.75, a change of -384.21%, primarily due to inventory write-offs and recoveries of bad debts[18]. - The company reported a significant increase in prepayments, which rose to 17,772,988.95 from 10,431,654.59, an increase of 70.38%, reflecting higher advance payments for goods[18]. Legal and Regulatory Matters - The company is currently involved in a legal dispute with Xinda Electric, with a payable balance of USD 479,089.06 (approximately RMB 3,071,535.78) pending resolution[21]. - The company has established strict internal evaluations and regulatory mechanisms for its financial derivative business, ensuring that risks are controllable and compliant with relevant laws[28]. Shareholder Actions - The company has committed to repurchase shares if the stock price falls below HKD 2.40, with a plan to acquire up to 2% of total shares (approximately 3.7078 million shares) within 12 months[25]. Derivative Investments - The company reported a derivative investment initial amount of RMB 113.31 million, with a year-end investment amount of RMB 94.36 million, representing 178.82% of the company's net assets at the end of the reporting period[28]. - The company incurred a loss of RMB 1.89 million from derivative investments during the reporting period[28]. Communication and Reporting - The company has not provided any written materials during communications regarding its operational status and B-share policies[29].