FENGLE SEED(SZ:000713)2017-10-20 16:00Financial Performance - Revenue for Q1 2016 was CNY 231,140,227.66, an increase of 21.08% compared to CNY 190,895,016.52 in the same period last year[8] - Net profit attributable to shareholders decreased by 30.04% to CNY 14,190,882.97 from CNY 20,284,207.44 year-on-year[8] - Net cash flow from operating activities was negative at CNY -90,822,438.24, a decline of 37.37% compared to CNY -66,114,542.88 in the previous year[8] - Gross profit margin decreased due to rising raw material costs in the spice industry, leading to a 32.13% drop in operating profit[15] - Other income increased by 424.33%, primarily due to higher government subsidies in agriculture and spices compared to last year[15] - The weighted average return on equity decreased to 1.04% from 1.50% year-on-year[8] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,866,091,397.34, a slight increase of 0.17% from CNY 1,862,867,094.93 at the end of the previous year[8] - Accounts receivable increased by 91.42%, attributed to business expansion in the agricultural and spice sectors[15] - Prepaid accounts increased by 30.69%, mainly due to advance payments for seed production in the corn industry[15] - Taxes payable decreased by 58.33%, primarily due to tax payments made by Fengle Agrochemical and Fengle Spices in the current period[16] Cash Flow - Cash received from tax refunds increased by 73.63%, mainly due to an increase in tax refunds for the agrochemical company[16] - Cash received from other operating activities decreased by 53.29%, mainly due to a reduction in government special funds received in the current period compared to the previous period[16] - Net cash flow from operating activities decreased by 37.37%, primarily due to a decrease in cash received from other operating activities and an increase in cash paid for other operating activities[16] Investment and Financial Activities - Investment income increased by 309.33%, attributed to higher returns from purchased financial products[16] - The company purchased a total of 5 bank financial products in the first quarter, with a total investment amount of RMB 220 million and total financial income of RMB 1,052,084.94[17][19] Strategic Initiatives - The relocation project of Fengle Agrochemical's Sanhe formulation plant was initiated due to the site becoming a national AAAA-level tourist attraction, with a total compensation amount of RMB 46,300,436.78 approved for the relocation[19][20] - The first phase of the compensation payment for the relocation project was received, amounting to RMB 23,150,218.39[20] - The company acquired 51% of Hunan Jinnong Seed Industry Co., Ltd. as part of its strategic expansion efforts[21] Shareholder and Market Activities - The company plans to increase its stock holdings by 10 million shares if the stock price falls below 7.88 CNY per share, and will not reduce holdings within 6 months after the increase[25] - The company aims to enhance its main operating performance through continuous innovation and strict adherence to its dividend policy to attract long-term value investors[25] Governance and Compliance - The company is committed to improving the quality of information disclosure, ensuring its accuracy, timeliness, and completeness, while actively clarifying any misinformation[25] - There are no significant changes expected in the cumulative net profit from the beginning of the year to the next reporting period[27] - The company has not engaged in any securities or derivative investments during the reporting period[28][29] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[31]