LZYY(SH:603368)2025-04-28 11:15Financial Performance - The company's revenue for Q1 2025 was CNY 5.32 billion, a decrease of 7.93% compared to the same period last year[4]. - Net profit attributable to shareholders for Q1 2025 was CNY 277.34 million, down 7.66% year-on-year[4]. - The basic earnings per share for Q1 2025 was CNY 0.70, a decline of 15.66% from CNY 0.83 in the same period last year[4]. - Total operating revenue for Q1 2025 was CNY 5,316,977,105.59, a decrease of 7.95% compared to CNY 5,774,668,302.52 in Q1 2024[28]. - Net profit for Q1 2025 was CNY 277,690,407.78, a decline of 11.22% from CNY 312,798,274.35 in Q1 2024[30]. - Earnings per share for Q1 2025 was CNY 0.70, compared to CNY 0.83 in Q1 2024[30]. Assets and Liabilities - The total assets at the end of Q1 2025 were CNY 20.99 billion, a decrease of 1.28% from the end of the previous year[6]. - Total assets decreased from CNY 21,268,946,240.75 in the previous period to CNY 20,996,836,385.73[26]. - Total liabilities decreased from CNY 13,332,023,666.34 to CNY 12,780,636,726.68[24]. - Total equity increased from CNY 7,936,922,574.41 to CNY 8,216,199,659.05[26]. Cash Flow - As of March 31, 2025, the company's cash and cash equivalents amounted to RMB 2,612,431,235.36, a decrease from RMB 3,683,593,158.31 as of December 31, 2024, indicating a decline of approximately 29%[21]. - The net cash flow from operating activities was -CNY 517,591,783.52, an improvement compared to -CNY 533,392,772.73 in the same period last year[33]. - The cash inflow from investment activities totaled CNY 322,442,848.20, significantly higher than CNY 2,719,242.73 in Q1 2024[35]. - The net cash flow from investment activities was CNY 32,303,364.29, recovering from -CNY 44,604,426.41 in the previous year[35]. - The cash inflow from financing activities was CNY 1,486,857,044.82, down from CNY 1,990,183,630.69 in Q1 2024, a decrease of approximately 25.4%[35]. - The net cash flow from financing activities was -CNY 787,802,848.05, worsening from -CNY 470,247,573.62 in the same quarter last year[35]. Operational Highlights - The wholesale segment generated CNY 423.85 million in revenue, down 9.80% year-on-year, accounting for 80.04% of total revenue[10]. - Retail revenue was CNY 784.52 million, a slight increase of 0.40%, contributing 14.81% to total revenue[10]. - The company continues to implement strategies focusing on collaboration between wholesale and retail, leveraging big data and AI to enhance supply chain services[10]. - The company aims to optimize product and industry structure to improve overall profitability and reduce operational risks[11]. - The company is actively expanding its market presence in both local and provincial markets for its industrial products, with sales growth accelerating in Q1 2025[10]. Investments and Subsidiaries - The company established a wholly-owned subsidiary, Hainan Liuyao Investment Co., Ltd., with a registered capital of RMB 83 million on December 3, 2024[18]. - Hainan Liuyao invested USD 1,047.52 million to acquire a 10.56% stake in Suninflam Ltd., enhancing the company's product portfolio and core competitiveness[18]. - The investment in Suninflam Ltd. is expected to provide the company with priority rights in contract manufacturing and new drug promotion, potentially increasing overall profit margins[19]. - The investment in Suninflam Ltd. does not constitute a related party transaction or a major asset restructuring, and has been approved by relevant regulatory authorities[20]. Research and Development - Research and development expenses increased to CNY 9,274,653.84 in Q1 2025, up from CNY 6,819,252.74 in Q1 2024[29]. - The company reported a credit impairment loss of CNY -39,623,890.99 in Q1 2025, slightly improved from CNY -40,343,781.14 in Q1 2024[29]. - Suninflam Ltd. has completed the efficacy evaluation and toxicology studies for its first product, SIF001, and is set to initiate Phase I clinical trials for epilepsy in the U.S.[19]. Inventory and Receivables - Accounts receivable increased to RMB 11,347,449,097.71 from RMB 10,599,998,463.07, reflecting a growth of about 7%[21]. - Inventory rose to RMB 2,814,261,307.01 compared to RMB 2,642,354,781.49, representing an increase of approximately 6.5%[21]. - The company reported a significant increase in prepayments to RMB 501,654,682.51 from RMB 333,825,647.51, marking a rise of approximately 50%[21].