RIKE CHEM(SZ:300214)2016-04-26 16:00Financial Performance - Total revenue for Q1 2016 was CNY 316,730,905.06, an increase of 0.58% compared to CNY 314,897,236.24 in the same period last year[9]. - Net profit attributable to shareholders decreased by 31.13% to CNY 16,681,992.62 from CNY 24,220,693.65 year-on-year[9]. - Net profit excluding non-recurring gains and losses fell by 32.46% to CNY 15,718,823.74 compared to CNY 23,274,458.49 in the previous year[9]. - Basic and diluted earnings per share decreased by 33.33% to CNY 0.04 from CNY 0.06 year-on-year[9]. - Operating profit decreased by 30.36% year-on-year, mainly due to rising raw material prices affecting gross profit margins[24]. - Operating revenue for the current period is ¥209,303,703.29, a decrease of 9.9% from ¥232,231,122.82 in the previous period[66]. - Operating profit decreased to ¥21,478,539.38, down 23.9% from ¥28,163,308.17 in the previous period[66]. - Net profit for the current period is ¥16,783,250.69, a decline of 23.1% compared to ¥21,830,101.25 in the previous period[67]. Cash Flow - Operating cash flow improved significantly, with a net cash flow from operating activities of CNY 20,404,425.70, a 138.44% increase from a negative CNY 53,077,542.00 in the same period last year[9]. - Cash flow from operating activities generated a net amount of ¥20,404,425.70, a significant improvement from a net outflow of ¥53,077,542.00 in the previous period[70]. - Cash inflow from operating activities totaled ¥296,072,058.75, up from ¥263,543,433.74 in the previous period[69]. - Cash outflow from operating activities decreased to ¥275,667,633.05 from ¥316,620,975.74 in the previous period[70]. - Cash flow from investing activities generated a net inflow of ¥64,900.96, recovering from a net outflow of ¥5,978,517.49 in the previous period[71]. - Cash flow from financing activities resulted in a net inflow of ¥723,505.73, compared to a net outflow of ¥781,842.69 in the previous period[71]. - The company reported a significant increase in cash received from tax refunds, amounting to ¥6,905,582.71, compared to ¥900,621.12 in the previous period[69]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,550,960,217.41, a slight decrease of 0.03% from CNY 1,551,392,244.31 at the end of the previous year[9]. - Total liabilities decreased to CNY 176,526,792.99 from CNY 224,240,494.55 at the beginning of the year, a reduction of approximately 21.3%[60]. - Current assets totaled CNY 964,700,584.60, down from CNY 991,840,708.72 at the start of the year[59]. - The company's cash and cash equivalents decreased from approximately 256.90 million RMB at the beginning of the period to approximately 238.91 million RMB at the end of the period[54]. - Accounts receivable increased from approximately 242.03 million RMB to approximately 294.73 million RMB, indicating a rise of about 21.8%[54]. - The company's total liabilities decreased from approximately 231.96 million RMB to approximately 214.85 million RMB, a reduction of about 7.4%[56]. Risks and Challenges - The company faces risks from raw material price fluctuations, which could impact profit margins and future profitability[11]. - Increased competition in the market has led to a decline in product gross margins, posing a risk if the company cannot maintain its competitive edge in cost optimization and innovation[12]. - The company acknowledges risks associated with fundraising investment projects, which are closely related to its main business and development strategy, and may be affected by market demand changes and policy adjustments[36]. Fundraising and Investments - The company is in the process of a non-public stock issuance, pending approval from the China Securities Regulatory Commission, which carries uncertainty regarding timing and approval[14]. - The company plans to issue up to 45 million shares to specific investors, raising no more than 277.2 million RMB for a project with an annual production capacity of 100,000 tons of plastic modifier ACM and 10,000 tons of chlorinated polyvinyl chloride CPVC[47]. - The company has committed to not reducing its shareholdings for six months starting from January 8, 2016, to maintain stock stability, with penalties for any violations[40]. - The total amount of raised funds for the quarter is 69,449.09 million[42]. - Cumulative amount of raised funds used is 69,516.62 million, with a change in usage ratio of 0.00%[42]. - The company has utilized 11.51155 million yuan of the raised funds for capital increase in Shandong Rike Rubber and Plastic Technology Co., Ltd.[44]. - The company has approved the use of 5 million yuan of idle raised funds for temporary working capital supplementation, which will be returned within 6 months[45]. - The company has approved the use of 25.991 million yuan of surplus funds from the "Finished Product Storage and Transportation Center Project" for permanent working capital supplementation[45]. Project Updates - The annual production capacity of 25,000 tons for the plastic modifier (ACR) project has achieved an investment completion rate of 105.84%[42]. - The annual production capacity of 15,000 tons for the plastic modifier (AMB) project has an investment completion rate of 98.88%[42]. - The annual production capacity of 10,000 tons for the plastic modifier (ACM) project has an investment completion rate of 99.46%[42]. - The plastic modifier R&D center project has a current investment completion rate of 59.39%[42]. - The project for producing 50,000 tons of plastic modifier (ACM) has achieved an investment completion rate of 100.98%[43]. - The project for producing 70,000 tons of co-extruded color masterbatch (ASA) has a low investment completion rate of 13.06%[43]. - The company decided to terminate the "Annual Production of 70,000 Tons of Co-extruded Color Masterbatch (ASA) Project" and will use the remaining funds of 85.5157 million yuan for permanent working capital supplementation[44]. Corporate Governance - The effective corporate income tax rate remains at 25%, pending approval for potential tax incentives[31]. - The company has established comprehensive facilities for safety risk prevention, monitoring, and management, emphasizing the high safety requirements for handling hazardous chemicals[34]. - The company implemented a strict multi-supplier procurement system and project bidding process to effectively control construction and equipment procurement costs[46]. - The company optimized various stages of the projects funded by raised capital, resulting in reduced project investment[46]. - The company reported no violations regarding external guarantees during the reporting period[49]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[50]. Audit Status - The first quarter report was not audited[75].