LFD(SH:600149)2021-04-29 16:00I. Important Notice The company's board, supervisory board, and senior management confirm the report's truthfulness, accuracy, and completeness, noting all directors attended the review and the report is unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, with all directors attending the review meeting, and the report is unaudited8 II. Company Profile This section provides an overview of the company's key financial data and shareholder information 2.1 Key Financial Data In Q1 2021, the company's performance significantly declined year-over-year, with revenue down 6.78%, a net loss of 602,132.35 Yuan, and increased negative operating cash flow Key Financial Indicators for Q1 2021 | Indicator | Current Period | Same Period Last Year | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 72,040,858.86 | 77,278,820.14 | -6.78% | | Net Profit Attributable to Shareholders (Yuan) | -602,132.35 | 922,660.66 | -165.26% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | -567,852.29 | 917,108.58 | -161.92% | | Net Cash Flow from Operating Activities (Yuan) | -39,309,300.90 | -19,139,167.48 | Not Applicable | | Basic Earnings Per Share (Yuan/Share) | -0.0016 | 0.0024 | -166.67% | | Weighted Average Return on Net Assets (%) | -0.36% | 0.44% | Decreased 0.80 percentage points | | Balance Sheet Indicators | End of Current Period | End of Previous Year | Period-end vs. Previous Year-end Change (%) | | Total Assets (Yuan) | 617,983,444.32 | 672,770,202.50 | -8.14% | | Net Assets Attributable to Shareholders (Yuan) | 167,858,904.71 | 168,461,037.06 | -0.36% | - Total non-recurring gains and losses for the period amounted to -34,280.06 Yuan, primarily comprising net non-operating income/expenses, minority interest impact, and income tax effects9 2.2 Total Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders as of the End of the Reporting Period As of Q1 2021, the company had 28,050 shareholders; Evergrande Real Estate Group was the largest (20.00%), followed by Langfang Investment Holding Group (15.30%) with some frozen shares - As of the end of the reporting period, the company had a total of 28,050 common stock shareholders10 Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held (Shares) | Holding Percentage (%) | Share Status | | :--- | :--- | :--- | :--- | | Evergrande Real Estate Group Co., Ltd. | 76,032,050 | 20.00 | None | | Langfang Investment Holding Group Co., Ltd. | 58,173,700 | 15.30 | Frozen 50,050,000 shares | | Li Dong | 7,040,800 | 1.85 | None | | Huang Yuping | 5,490,000 | 1.44 | None | | Du Yongkang | 4,837,859 | 1.27 | None | III. Significant Events This section details significant changes in financial statement items and unfulfilled commitments 3.1 Analysis of Significant Changes in Major Financial Statement Items and Indicators and Their Reasons Significant changes in financial items include a 38.49% cash decrease, 64.83% contract liability reduction, and 8.53% operating cost increase, alongside new lease standard adjustments Changes in Major Financial Items and Reasons | Item | Change Percentage (%) | Reason for Change | | :--- | :--- | :--- | | Balance Sheet Items | | | | Cash and Cash Equivalents | -38.49% | Primarily for raw material payments | | Prepayments | 85.47% | Primarily for advance engineering payments | | Accounts Payable | 38.62% | Primarily due to increased raw material and operation/maintenance costs | | Contract Liabilities | -64.83% | Primarily due to recognition of heating service revenue | | Employee Compensation Payable | -71.58% | Primarily for payment of accrued salaries from the previous period | | Income Statement Items | | | | Operating Cost | 8.53% | Primarily due to rising raw material prices | | Cash Flow Statement Items | | | | Cash Received from Sales of Goods and Services | -30.83% | Primarily due to different timing of receipts for heating fees, engineering projects, etc | | Cash Paid for Goods and Services | 58.86% | Primarily for raw material payments | | Taxes and Surcharges Paid | 79.57% | Primarily due to an increase in VAT | 3.3 Overdue Unfulfilled Commitments During the Reporting Period An asset injection commitment from 2008 by Hainan Zhongyi International Economic and Technical Cooperation Co., Ltd. remains unfulfilled due to operational difficulties, despite the company's legal actions - Hainan Zhongyi International Economic and Technical Cooperation Co., Ltd. failed to fulfill its December 2008 commitment regarding an asset injection with an annual net asset return of no less than 6% due to operational difficulties; the company withdrew its arbitration application in July 2018 to gather further evidence, and the commitment remains unfulfilled13 IV. Appendix This section includes the unaudited financial statements for the first quarter of 2021 and explanations for adjustments due to new leasing standards 4.1 Financial Statements This section contains the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021, detailing financial position, operating results, and cash flows Consolidated Balance Sheet As of March 31, 2021, total assets were 617,983,444.32 Yuan (down 8.14%), total liabilities 357,500,672.00 Yuan (down 14.19%), and net assets attributable to shareholders 167,858,904.71 Yuan (down 0.36%) Key Items from Consolidated Balance Sheet (Unit: Yuan) | Item | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 617,983,444.32 | 672,770,202.50 | | Total Liabilities | 357,500,672.00 | 416,650,044.50 | | Total Equity Attributable to Parent Company Shareholders | 167,858,904.71 | 168,461,037.06 | | Total Liabilities and Equity | 617,983,444.32 | 672,770,202.50 | Parent Company Balance Sheet As of March 31, 2021, the parent company's total assets were 219,773,080.34 Yuan, slightly down from year-end, with liabilities at 36,778,675.99 Yuan and owner's equity at 182,994,404.35 Yuan Key Items from Parent Company Balance Sheet (Unit: Yuan) | Item | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 219,773,080.34 | 222,175,531.79 | | Total Liabilities | 36,778,675.99 | 36,839,623.21 | | Total Owner's Equity | 182,994,404.35 | 185,335,908.58 | | Total Liabilities and Equity | 219,773,080.34 | 222,175,531.79 | Consolidated Income Statement In Q1 2021, operating revenue was 72,040,858.86 Yuan (down 6.78%), operating costs 64,672,855.01 Yuan (up 8.53%), leading to a net loss of 602,132.35 Yuan attributable to parent company shareholders, a reversal from profit Key Items from Consolidated Income Statement (Unit: Yuan) | Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Total Operating Revenue | 72,040,858.86 | 77,278,820.14 | | Total Operating Cost | 64,672,855.01 | 61,167,213.96 | | Total Profit | 7,250,302.54 | 16,112,485.67 | | Net Profit | 4,362,614.32 | 11,134,595.34 | | Net Profit Attributable to Parent Company Shareholders | -602,132.35 | 922,660.66 | Parent Company Income Statement In Q1 2021, the parent company's operating revenue decreased 26.97% to 137,736.47 Yuan, with a net loss of 2,341,504.23 Yuan, an increase from the 1,931,740.90 Yuan loss in the prior year Key Items from Parent Company Income Statement (Unit: Yuan) | Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Operating Revenue | 137,736.47 | 188,605.17 | | Operating Profit | -2,341,504.23 | -1,931,740.90 | | Net Profit | -2,341,504.23 | -1,931,740.90 | Consolidated Cash Flow Statement In Q1 2021, net operating cash flow was -39,309,300.90 Yuan, a significant increase in outflow due to higher goods payments; investing and financing activities also showed net outflows, with cash equivalents at 66,427,897.78 Yuan Key Items from Consolidated Cash Flow Statement (Unit: Yuan) | Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -39,309,300.90 | -19,139,167.48 | | Net Cash Flow from Investing Activities | -1,816,379.24 | -4,745,610.08 | | Net Cash Flow from Financing Activities | -444,453.91 | -5,285,891.67 | | Net Increase in Cash and Cash Equivalents | -41,570,134.05 | -29,170,669.23 | | Cash and Cash Equivalents at End of Period | 66,427,897.78 | 102,143,139.72 | Parent Company Cash Flow Statement In Q1 2021, the parent company's net operating cash flow was -1,162,538.84 Yuan, consistent with the prior year, with no investing or financing cash flows, and cash equivalents totaling 9,616,952.47 Yuan at period-end Key Items from Parent Company Cash Flow Statement (Unit: Yuan) | Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,162,538.84 | -1,298,268.24 | | Net Increase in Cash and Cash Equivalents | -1,162,538.84 | -1,298,268.24 | | Cash and Cash Equivalents at End of Period | 9,616,952.47 | 56,533,823.01 | 4.2 Explanation of Adjustments to Beginning-of-Year Financial Statements Upon First-Time Adoption of New Lease Standards from 2021 The company adopted new lease standards effective January 1, 2021, adjusting opening financial statements to recognize new right-of-use assets and lease liabilities, with no material impact on overall financial position, operating results, or cash flows, and no effect on parent company statements - In accordance with Accounting Standard No. 21 – Leases issued by the Ministry of Finance in 2018, the company adopted new lease standards effective January 1, 2021, adjusting opening balances of relevant financial statement items; this accounting policy change will not have a material impact on the company's financial position, operating results, or cash flows37 Key Adjustments to Consolidated Balance Sheet (Unit: Yuan) | Item | Before Adjustment (December 31, 2020) | After Adjustment (January 1, 2021) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 0.00 | 1,265,678.17 | 1,265,678.17 | | Lease Liabilities | 0.00 | 1,265,678.17 | 1,265,678.17 |