Financial Performance - The company reported revenue of RMB 142,115,000 for the first quarter of 2022, a 65% increase compared to RMB 85,987,000 in the same period of 2021[8]. - Gross profit for the first quarter was RMB 71,000, significantly down from RMB 4,621,000 year-on-year[8]. - The net loss for the period was RMB 4,353,000, compared to a net loss of RMB 2,986,000 in the first quarter of 2021, representing an increase in loss of approximately 46%[8]. - Basic and diluted loss per share for the period was RMB 0.49, compared to RMB 0.39 in the first quarter of 2021[8]. - Total comprehensive loss for the period was RMB 4,320,000, compared to RMB 2,941,000 in the same quarter of the previous year[8]. - For the three months ended March 31, 2022, the company recorded a loss attributable to owners of approximately RMB 4.53 million, compared to a loss of RMB 3.09 million for the same period in 2021[34]. - Loss attributable to owners was approximately RMB 4.5 million for the three months ended March 31, 2022, compared to RMB 3.1 million for the same period in 2021[52]. Revenue Breakdown - Revenue from the production and sales of aluminum products was RMB 101,435,000, while revenue from wire and cable production and sales was RMB 40,680,000 for the three months ended March 31, 2022[21]. - All revenue for the three months ended March 31, 2022, was generated from customers in mainland China, with no non-current assets located outside of this region[17]. - Revenue for the three months ended March 31, 2022, was approximately RMB 142.1 million, representing an increase of about 65.3% compared to RMB 85.99 million in the same period of 2021[42]. Costs and Expenses - The cost of inventory recognized as an expense was RMB 142,044,000, compared to RMB 81,366,000 in the previous year, marking an increase of 74.5%[27]. - The cost of sales increased from RMB 81.4 million for the three months ended March 31, 2021, to RMB 142.0 million for the same period in 2022, an increase of RMB 60.6 million or 74.6%[43]. - The loss before income tax for the period was impacted by an increase in employee costs, which rose to RMB 3,414,000 from RMB 2,989,000 year-on-year, an increase of 14.2%[27]. - Sales and distribution expenses increased by approximately RMB 552,000 or 66.9%, aligning with the revenue growth for the year 2022[48]. - Administrative and other expenses decreased from RMB 6.7 million to RMB 6.5 million, a reduction of RMB 281,000 or 4.2%, primarily due to a decrease in travel frequency[49]. Financing and Other Income - The company incurred financing costs of RMB 2,674,000, up from RMB 2,281,000 in the previous year[8]. - The company incurred financing costs of RMB 2,798,000 for the three months ended March 31, 2022, compared to RMB 2,449,000 in the same period last year, an increase of 14.2%[25]. - Other income and net other losses amounted to RMB 5,708,000, compared to RMB 1,917,000 in the same quarter of 2021[8]. - Other income and gains increased from approximately RMB 1.9 million for the three months ended March 31, 2021, to approximately RMB 5.7 million for the same period in 2022, primarily due to government subsidies[45]. - Interest income increased to RMB 618,000 from RMB 2,000 year-on-year, reflecting a substantial rise[24]. - The company received government grants totaling RMB 5,194,000, up from RMB 1,660,000 in the previous year, indicating a growth of 212.0%[24]. Equity and Shareholder Information - The company’s total equity as of March 31, 2022, was RMB 156,771,000, down from RMB 161,091,000 at the beginning of the year[10]. - The company’s major shareholders include Mr. Party Fei with 38.18% and Mr. Wang Xiaozhong with 10.84% of the shares[64]. - As of March 31, 2022, Red Fly holds 351,280,000 shares, representing 38.18% of the company's equity[67]. - Xseven Investment holds 99,760,000 shares, representing 10.84% of the company's equity[67]. - The company has disclosed that the major shareholders include Party Jun, who holds 351,280,000 shares, equivalent to 38.18%[68]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code during the reporting period[59]. - The audit committee, established on June 10, 2020, consists of three independent non-executive directors and has reviewed the financial statements for the three months ending March 31, 2022[75]. - The company confirms that there are no controlling shareholders or directors with interests in any competing businesses as of March 31, 2022[71]. - The company has adopted a share option scheme as of June 10, 2020, but no options have been granted, exercised, cancelled, or lapsed since the listing date[72]. Future Outlook and Strategy - The company plans to continue exploring market expansion opportunities and new product development strategies[8]. - The company continues to manufacture and sell wires and cables, serving a diverse customer base including power companies and manufacturing enterprises[37]. - The company is closely monitoring government policies to capitalize on opportunities in the aluminum industry, aiming to expand its influence in Southwest China[38]. - The company’s product offerings include traditional and specialty wires and cables, as well as semi-finished aluminum products, aimed at maximizing market exposure and expanding market share[37]. Miscellaneous - The company did not declare or pay any dividends for the three months ended March 31, 2022, consistent with the same period in 2021[33]. - No significant contingent liabilities were reported as of March 31, 2022[53]. - There were no significant investments, acquisitions, or disposals of subsidiaries during the reporting period[55]. - No significant events requiring disclosure occurred after March 31, 2022, up to the report date[73]. - The report will be available on the GEM website and the company's website for at least 7 days from the date of publication[77].
中国蜀塔(08623) - 2022 Q1 - 季度财报