ZFINFO(SZ:300659)2018-04-26 16:00Financial Performance - Total revenue for Q1 2018 was CNY 39,439,577.78, representing a 16.61% increase compared to CNY 33,821,297.70 in the same period last year[7]. - Net profit attributable to shareholders was a loss of CNY 8,575,978.13, a decrease of 564.82% from a loss of CNY 1,289,971.15 in the previous year[7]. - Basic and diluted earnings per share were both negative CNY 0.14, a decrease of 600.00% from negative CNY 0.02 in the previous year[7]. - Operating profit turned negative at ¥-6,505,689.62, down from a profit of ¥536,798.57 in the prior period[46]. - The total comprehensive income for the period was a loss of ¥8,575,978.13, compared to a loss of ¥1,289,971.15 in the prior period[47]. Cash Flow - The net cash flow from operating activities was a negative CNY 67,486,471.67, which is a decline of 79.75% compared to negative CNY 37,545,275.62 in the same period last year[7]. - Cash flow from operating activities showed a net outflow of ¥67,486,471.67, worsening from a net outflow of ¥37,545,275.62[51]. - The net increase in cash and cash equivalents was -¥22,680,782.60, an improvement from -¥51,579,602.73 in the previous period[56]. - The ending balance of cash and cash equivalents was ¥149,750,619.05, compared to ¥34,982,211.73 in the previous period[56]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 492,881,447.58, down 9.84% from CNY 546,687,257.49 at the end of the previous year[7]. - The company's total equity decreased from ¥410,779,748.57 to ¥402,203,770.44, a decrease of about 2.1%[40]. - Total current assets decreased from ¥476,077,697.43 to ¥425,501,011.71, a reduction of about 10.6%[38]. - Total liabilities decreased from ¥135,907,508.92 to ¥90,677,677.14, reflecting a decline of approximately 33.3%[40]. Investments and Projects - The company plans to invest RMB 20 million in the Zhongke Xinguang Network Security Risk Venture Capital Fund, focusing on cybersecurity projects[26]. - The company has committed to several investment projects, including a comprehensive protection solution with a total investment of RMB 90.67 million, of which 47.19% has been completed[31]. - The company has also initiated the construction of a research and development center with a total investment of RMB 45.67 million, with 39.48% completed[31]. - The company is acquiring 100% equity of Wuhan Jiantong Information Technology Co., Ltd. through a share issuance and cash payment[24]. Operational Changes - The company is undergoing a major asset restructuring to acquire 100% equity of Wuhan Jiantong Information Technology Co., Ltd., which is subject to shareholder and regulatory approvals[14]. - The company has not reported any significant changes in its core technology team or major risks affecting future operations[23]. - The company has not encountered any overdue commitments from actual controllers, shareholders, or related parties during the reporting period[28]. Government and Regulatory Factors - The company received government subsidies amounting to CNY 3,006,557.60 during the reporting period[8]. - The company faces risks related to tax incentives and government subsidies, which could impact profitability if policies change[9]. Market and Competitive Position - The company emphasizes the importance of technological advancement and innovation to maintain competitive advantage in the rapidly evolving information security industry[10]. - Operating costs rose to 13.06 million RMB, reflecting a 54.77% increase due to higher sales revenue[21]. - The company reported a significant increase in sales expenses, which rose to ¥12,533,254.13 from ¥7,070,921.31, reflecting a 77% increase[46].