FENGLE SEED(SZ:000713)2017-10-20 16:00Revenue and Profitability - Revenue for Q1 2017 reached ¥347,191,934.27, an increase of 50.21% compared to ¥231,140,227.66 in the same period last year[8] - Net profit attributable to shareholders was a loss of ¥5,849,433.99, a decrease of 141.22% from a profit of ¥14,190,882.97 in the previous year[8] - Net profit decreased by 136.94%, primarily due to a decline in gross profit from seed and agrochemical segments and a reduction in non-operating income[20] - Basic earnings per share are projected to be between -0.0903 to -0.0435 yuan, reflecting a decrease of 0.0142 yuan[23] Cash Flow and Investments - Operating cash flow showed a net outflow of ¥110,699,634.87, which is a 21.89% increase in outflow compared to ¥90,822,438.24 last year[8] - Cash flow from investing activities decreased by 83.07%, mainly due to a reduction in redeemed financial products[20] - Cash and cash equivalents decreased by 35.29%, attributed to significant capital expenditures for expanding agrochemical production[20] - Cash paid for purchasing fixed assets increased by 265.48%, primarily due to investments in expanding agrochemical production capacity[20] - Cash received from tax refunds increased by 641.32%, mainly due to higher tax refunds in the agrochemical sector[20] - Cash paid for dividends and interest increased by 651.65%, primarily due to increased loan amounts and interest payments[20] Operating Performance - Operating costs increased by 75.22%, primarily due to the rise in revenue and a decline in gross margin[16] - Operating profit decreased by 129.30%, attributed to adjustments in product structure and increased costs in the agricultural chemical sector[16] - Financial expenses increased by 223.18%, mainly due to higher bank loan interest and reduced interest income from time deposits[20] Non-Operating Income and Expenses - Non-operating income rose by 206.63%, mainly due to increased government subsidies in the agricultural chemical business[16] - Non-operating expenses surged by 4453.63%, largely due to compensation payments for the early termination of a lease contract related to the Fengle Hotel[16] Balance Sheet and Assets - Total assets at the end of the reporting period were ¥2,050,796,270.63, a decrease of 1.06% from ¥2,072,865,589.53 at the end of the previous year[8] - The weighted average return on net assets was -0.42%, down from 1.04% in the previous year[8] - Accounts receivable increased by 46.85%, primarily due to the expansion of the agrochemical business[20] Future Outlook - The company expects a cumulative net loss of between -27 million to -13 million yuan for the first half of 2017, a decline of 425.41% compared to the same period last year[23] - The company reported a significant decrease of 93.12% in cash received from investment income, primarily due to reduced financial product returns[17]