CECM(SZ:300385)2018-04-23 16:00Financial Performance - Total revenue for Q1 2018 was CNY 181,993,980.66, representing a 21.17% increase compared to CNY 150,196,286.88 in the same period last year[8] - Net profit attributable to shareholders was CNY 20,671,825.36, up 49.15% from CNY 13,859,550.65 year-on-year[8] - Basic earnings per share increased by 37.49% to CNY 0.1588 from CNY 0.1155 in the previous year[8] - The company achieved operating revenue of CNY 181,993,980.66, an increase of 21.17% compared to the same period last year[28] - The net profit attributable to shareholders was CNY 20,671,825.36, up 49.15% year-on-year, primarily due to an increase in executed orders and government subsidies received[28] - The total comprehensive income for Q1 2018 was CNY 22,853,913.42, up from CNY 10,652,705.56 in Q1 2017, reflecting strong overall performance[64] - The company reported a total profit of CNY 26,962,639.38 for Q1 2018, which is a substantial increase from CNY 12,564,040.88 in Q1 2017[63] Cash Flow and Assets - The net cash flow from operating activities improved by 63.69%, reaching CNY -23,033,761.67 compared to CNY -63,432,461.66 in the same period last year[8] - As of March 31, 2018, cash and cash equivalents decreased by 33.68% to ¥132,845,089.24 compared to ¥200,300,800.30 on December 31, 2017, primarily due to investment payments[25] - The company's cash and cash equivalents decreased from CNY 200.30 million at the beginning of the period to CNY 132.85 million at the end of the period[48] - The ending balance of cash and cash equivalents was 68,361,078.00 yuan, compared to 13,884,089.75 yuan in the previous period[72] Expenses and Liabilities - Operating costs rose by 33.73% to ¥141,518,504.97 from ¥105,823,258.66, driven by business expansion[25] - The company reported a significant increase in sales expenses by 54.66% to CNY 6,874,279.45, mainly due to rising salary and transportation costs[26] - Management expenses rose by 52.18% to CNY 27,249,483.82, attributed to increased salary expenses and R&D investments[26] - The total operating costs amounted to CNY 177,154,744.21, up from CNY 132,895,500.48, reflecting a significant increase in expenses[58] - The total liabilities decreased to CNY 926,127,325.09 from CNY 1,006,223,648.31, a reduction of about 7.9%[51] Investments and Growth - The company is expanding into hazardous waste disposal and has approved investments in environmental industry M&A funds, although some projects are still in preliminary stages[13] - Long-term equity investments increased by 140.07% to ¥151,290,416.52 from ¥63,019,283.53, mainly due to investments in Nanjing Xuelang Jinying Environmental Protection Industry Investment Partnership[25] - The company has established an environmental industry merger fund with a total investment of CNY 19,000,000, which has already acquired a 49% stake in Nanjing Zhuoyue Environmental Technology Co., Ltd. for CNY 47,040,000[34] - The company plans to continue expanding its market presence and investing in new technologies[25] - The company is focusing on strategic partnerships and potential acquisitions to enhance its competitive position[25] Risks and Management - The company is facing risks from intensified competition which may lead to a decline in gross profit margins[11] - Management risks are increasing due to the expansion of business scale and the number of subsidiaries, prompting the company to enhance management training and system enforcement[12] Shareholder Information - The top ten shareholders include Yang Jianping with 39.10% ownership, followed by Xu Huifen with 7.49%[15] - Cash dividends proposed for 2017 amount to CNY 0.70 per share, totaling CNY 9.11 million[41] Research and Development - The company is actively engaged in R&D projects, including a new hazardous waste incineration feeding system aimed at reducing failure rates[31] - The company has received three new patents during the reporting period, reflecting its commitment to technological innovation[32]