HCNC(SZ:300161)2018-04-25 16:00Financial Performance - Total operating revenue for Q1 2018 was ¥114,730,564.97, a decrease of 36.76% compared to ¥181,415,390.62 in the same period last year[7]. - Net profit attributable to shareholders was -¥15,764,581.96, representing an 81.07% decline from -¥8,706,267.43 year-on-year[7]. - Basic and diluted earnings per share were both -¥0.09, down 81.07% from -¥0.05 in the same period last year[7]. - The company's operating revenue for Q1 2018 was ¥114,730,564.97, a decrease of 36.76% compared to the same period last year, primarily due to a decline in sales of CNC systems in the 3C market[21]. - The net profit for Q1 2018 was a loss of CNY 26.99 million, compared to a loss of CNY 11.65 million in the same period last year, representing an increase in loss of 131.5%[57]. - The total comprehensive income attributable to the parent company was -¥15,764,581.96, compared to -¥8,706,267.43 in the previous year[61]. Cash Flow - Net cash flow from operating activities improved by 44.56%, reaching -¥75,380,837.95 compared to -¥135,963,803.93 in the previous year[7]. - The net cash flow from operating activities was -$2.60 million, an improvement from -$85.49 million year-over-year[69]. - Cash received from sales of goods and services was $98.81 million, compared to $57.26 million previously, marking a growth of approximately 72%[68]. - Total cash outflow from operating activities was $105.95 million, a decrease from $146.62 million in the previous period[69]. Assets and Liabilities - Total assets decreased by 4.53% to ¥2,220,557,597.11 from ¥2,325,908,914.38 at the end of the previous year[7]. - The company's total assets decreased to CNY 1.62 billion from CNY 1.68 billion at the beginning of the year, a decline of 3.9%[53]. - The total liabilities decreased to CNY 876.05 million from CNY 954.14 million, a reduction of 8.2%[54]. - The equity attributable to shareholders of the parent company was CNY 1.13 billion, down from CNY 1.15 billion, a decrease of 1.5%[51]. Operational Risks - The company faces operational transformation risks as it increases investment in CNC systems, industrial robots, and new energy vehicles[9]. - Goodwill impairment risk exists due to the acquisition of Jiangsu Jinming, which may affect future profitability[9]. Shareholder Information - The total number of shareholders at the end of the reporting period was 24,133[11]. - The largest shareholder, Wuhan Huazhong Science and Technology Industry Group Co., Ltd., holds 19.05% of shares, totaling 32,924,765 shares[11]. Investment and Fund Utilization - The company has outlined its fundraising usage in a detailed report, indicating transparency in financial management[37]. - The total amount of raised funds for the quarter is 77,638.06 million, with a utilization rate of 22.89%[38]. - The total amount of superfluous funds raised is 49,195.06 million, with 9,800 million allocated for repaying bank loans and supplementing working capital[39]. - The investment in the high-end CNC system industrialization project reached 98.63% completion, with a total investment of 13,298.79 million[38]. Compliance and Commitments - The company is in compliance with performance commitments and compensation arrangements as per the signed performance compensation agreement[29]. - The company has committed to ensuring that its wholly-owned and controlling subsidiaries will not engage in any business that directly competes with Huazhong CNC's operations[33]. - The company has confirmed that it will not transfer more than 25% of its shares during its tenure and will not transfer any shares within six months after leaving the company[34]. - The company has reported that all commitments made to minority shareholders have been fulfilled on time[34].