DDN(002263)2016-04-26 16:00Financial Performance - The company's operating revenue for Q1 2016 was ¥181,922,419.11, a decrease of 1.47% compared to ¥184,631,546.79 in the same period last year[8]. - The net profit attributable to shareholders was a loss of ¥10,723,179.07, representing a decline of 14.50% from a loss of ¥9,365,345.58 in the previous year[8]. - The net cash flow from operating activities was negative at ¥21,264,429.97, a significant decrease of 135.14% compared to a positive cash flow of ¥60,509,509.54 in the same period last year[8]. - The basic and diluted earnings per share remained at -¥0.01, unchanged from the previous year[8]. - The company expects a net loss of between 18 million to 20 million yuan for the first half of 2016, compared to a net profit of 4.72 million yuan in the same period of 2015[24]. Assets and Shareholder Information - Total assets at the end of the reporting period were ¥4,188,241,438.46, down 0.62% from ¥4,214,399,721.98 at the end of the previous year[8]. - The net assets attributable to shareholders decreased by 0.36% to ¥2,940,340,344.01 from ¥2,951,063,523.08 at the end of the previous year[8]. - The total number of ordinary shareholders at the end of the reporting period was 80,892[11]. - Zhejiang Dazhongnan Group Co., Ltd. held 26.33% of the shares, making it the largest shareholder with 247,295,846 shares[11]. - The company engaged in a repurchase agreement involving 12.74 million shares, representing 1.36% of the total share capital[12]. Operational Changes and Expenses - Accounts receivable decreased by 66.44% compared to the beginning of the year, mainly due to bill discounting and payment for materials[15]. - Prepayments increased by 335.82% compared to the beginning of the year, primarily due to advance payments for materials[15]. - Construction in progress increased by 32.06% compared to the beginning of the year, mainly due to the transfer of equipment upgrades from the subsidiary Hangzhou Gaoke[15]. - Development expenses increased by 167.01% compared to the beginning of the year, primarily due to increased game development expenses from the subsidiary Shanghai Youtang[15]. - Sales expenses increased by 151% compared to the same period last year, mainly due to the inclusion of sales expenses from subsidiary Shanghai Youtang in the consolidation[15]. - Operating cash flow net decreased by 135.14% compared to the same period last year, mainly due to a decrease in cash received from sales[15]. Cash Flow and Investments - Investment cash flow net increased by 59.86% compared to the same period last year, mainly due to an increase in investment expenditures[16]. - Financing cash flow net decreased by 106.98% compared to the same period last year, mainly due to an increase in cash paid for debt repayment[16]. Strategic Initiatives - The company signed a strategic cooperation framework agreement with Fujian Zhonghe Co., Ltd. to collaborate in the field of new energy lithium battery materials[17]. - The company is adjusting the pricing benchmark date and issuance price for its non-public stock issuance plan, which was approved in the fourth extraordinary general meeting of shareholders in 2015[18]. Market Conditions and Future Outlook - The decline in performance is attributed to slow recovery in domestic and international markets, insufficient demand growth, and overcapacity in the film industry[24]. - The company is undergoing a transformation period, with existing projects facing high technical barriers and new products requiring customer trial and market introduction time[24].