ETERN(SH:600105)2020-04-29 16:00Financial Performance - The net profit for the first quarter of 2020 was -116.61 million RMB, a decrease of 135.34 million RMB compared to the same period last year, representing a decline of 722.44%[9] - Operating revenue for the first quarter was 483.73 million RMB, down 25.17% from 646.43 million RMB in the previous year[13] - The net cash flow from operating activities was -14.07 million RMB, a decline of 140.30% compared to -5.86 million RMB in the same period last year[13] - The weighted average return on net assets was -4.36%, a decrease of 5.03 percentage points from 0.67% in the previous year[13] - The basic earnings per share were -0.0936 RMB, a decrease of 715.79% from 0.0152 RMB in the same period last year[13] - The company reported a gross margin decline, with operating profit for Q1 2020 at -¥115,970,678.34, compared to ¥7,079,655.92 in Q1 2019[46] - Net profit for Q1 2020 was a loss of ¥118,158,958.24, compared to a profit of ¥14,446,753.54 in Q1 2019[48] - Total comprehensive income for Q1 2020 was a loss of ¥47,023,442.40, compared to a gain of ¥20,631,028.30 in Q1 2019[54] Asset and Liability Changes - The total assets at the end of the reporting period were 5,978.13 million RMB, a decrease of 3.97% from 6,225.41 million RMB at the end of the previous year[13] - Total liabilities decreased to ¥2,015,197,277.93 from ¥2,142,135,325.13 year-over-year[46] - Non-current liabilities decreased from ¥3,055,888,264.75 to ¥2,925,360,910.73, a reduction of about 4.3%[36] - Current liabilities decreased from ¥2,080,130,454.77 to ¥1,944,525,577.56, a decrease of approximately 6.5%[34] - Total equity attributable to shareholders decreased from ¥2,732,538,704.89 to ¥2,616,595,420.30, a decrease of about 4.3%[36] Cash Flow Analysis - Net cash flow from operating activities was negative at -¥14,074,763.47, a decrease of 140.30% compared to -¥5,857,053.87 in the previous year[25] - Net cash flow from investing activities increased by 246.48% to ¥74,879,881.61 from -¥51,119,415.83, due to cash inflow from financial product redemptions[25] - Net cash flow from financing activities decreased by 124.58% to -¥33,778,124.98 from ¥137,410,752.21, reflecting a reduction in net borrowing[25] - The net cash flow from operating activities for Q1 2020 was -25,602,147.78 RMB, compared to -20,264,321.37 RMB in Q1 2019, indicating a decline in operational cash flow[59] Investment and Income - The decline in profit was attributed to lower orders for automotive wiring harnesses and a significant drop in bidding prices in the telecommunications sector[16] - The company experienced a decrease in investment income from joint ventures, with a reduction of 52.90 million RMB from Shanghai Dongchang Investment Development Co., Ltd. and 27.00 million RMB from Suzhou Boteni Electric System Co., Ltd.[16] - Investment income decreased by 121.85% to -¥14,226,181.25 from ¥65,121,380.20, primarily due to profit declines in associated companies[23] - The company reported non-operating income of 8.78 million RMB from government subsidies closely related to its normal business operations[17] Shareholder Information - The total number of shareholders at the end of the reporting period was 77,880, with the largest shareholder, Yongding Group Co., Ltd., holding 36.68% of the shares[18] Operational Efficiency - Accounts receivable decreased by 52.18% to ¥13,755,126.77 from ¥28,761,940.74 due to the impact of the pandemic[23] - Financing receivables decreased by 66.59% to ¥16,599,540.94 from ¥49,688,852.23, primarily due to a reduction in commercial acceptance bills received during the pandemic[23] - Prepayments decreased by 31.22% to ¥179,570,289.27 from ¥261,066,313.04, mainly due to the recognition of project costs by a subsidiary[23] - Other current assets decreased by 59.01% to ¥105,337,022.84 from ¥256,999,367.93, as the company redeemed structured deposits of ¥180 million[23] - Cash flow from other operating activities was 69,573,321.99 RMB, a significant increase from 21,127,278.11 RMB in Q1 2019, indicating improved operational efficiency[59] Research and Development - R&D expenses for Q1 2020 were ¥29,541,147.51, a decrease of 23.4% from ¥38,564,768.33 in Q1 2019[46] - Research and development expenses decreased to ¥5,987,453.46 from ¥10,081,701.83, a reduction of 40.8% year-over-year[52] Revenue Recognition and Accounting Changes - The company has implemented new revenue recognition standards affecting the accounting of contract liabilities and assets[69]