Hengtong(SH:600226)2020-06-29 16:00Financial Performance - Operating revenue for the first quarter was CNY 147,184,813.96, representing a decline of 33.91% year-on-year[12]. - Net profit attributable to shareholders was CNY 21,856,643.79, down 73.69% from the same period last year[12]. - Basic earnings per share decreased by 66.67% to CNY 0.01 from CNY 0.03 in the same period last year[12]. - The weighted average return on net assets was 0.61%, down 1.29 percentage points from 1.90% in the previous year[12]. - The company reported a net loss of ¥12,511,063.83 for the first quarter, compared to a loss of ¥39,195,210.00 in the same quarter last year[48]. - The net profit for Q1 2020 was CNY 20,957,228.36, down 74.4% from CNY 81,731,855.90 in Q1 2019[52]. - The total profit for Q1 2020 was CNY 22,976,653.37, a decline of 75.5% compared to CNY 93,392,026.88 in Q1 2019[52]. - The company's total comprehensive income for Q1 2020 was CNY 20,187,847.22, significantly lower than CNY 81,731,855.90 in Q1 2019[54]. Cash Flow - The net cash flow from operating activities was CNY -23,059,046.01, showing an improvement compared to CNY -295,738,341.12 in the previous year[12]. - Total cash inflow from operating activities was ¥121,746,090.81, while cash outflow was ¥144,805,136.82, resulting in a net cash flow deficit[59]. - Cash inflow from investment activities was ¥0, while cash outflow was ¥2,147,785.57, leading to a net cash flow from investment activities of -¥2,147,785.57[61]. - Cash inflow from financing activities was ¥58,000,000.00, with cash outflow totaling ¥7,513,179.14, resulting in a net cash flow from financing activities of -¥7,513,179.14[61]. - The ending cash and cash equivalents balance was ¥39,001,325.95, down from ¥73,148,510.18 at the beginning of the period[61]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,136,799,691.26, a decrease of 0.54% compared to the end of the previous year[12]. - Cash and cash equivalents decreased by 37.65% from 90,122,688.29 to 56,188,111.28 due to loan repayments during the reporting period[21]. - Total liabilities decreased to ¥432,576,241.98 from ¥430,471,100.15, indicating a slight increase of 0.5%[46]. - The company's total assets as of March 31, 2020, were RMB 4,136.80 million, slightly down from RMB 4,159.06 million at the end of 2019[34]. - The company's long-term equity investments increased to RMB 1,304.78 million as of March 31, 2020, compared to RMB 1,265.87 million at the end of 2019[34]. - Total assets amounted to approximately $4.03 billion, with current assets at $712.91 million and non-current assets at $3.31 billion[76]. - Total liabilities reached approximately $430.47 million, with current liabilities totaling $370.35 million and non-current liabilities at $60.12 million[79]. Shareholder Information - The total number of shareholders at the end of the reporting period was 76,437[20]. - The largest shareholder, Shen Peijin, held 27.71% of the shares, with 869,814,827 shares[20]. - The actual controller's shares were 869,814,827, with 99.99% of them pledged, and 100% of these shares were frozen, totaling 27.71% of the company's total shares[29]. - The company received a compensation of 9,627,566 shares due to the unmet profit commitment for 2018, with a total delayed payment interest of RMB 1.86 million paid by the original shareholders[29]. Operational Challenges - Operating revenue fell by 33.91% from 222,695,273.50 to 147,184,813.96 mainly due to a reduction in gaming revenue[23]. - Operating costs decreased by 12.06% from 127,768,800.10 to 112,365,331.97 as a result of lower gaming revenue leading to reduced cost recognition[23]. - Research and development expenses declined by 35.75% from 9,412,872.07 to 6,047,587.41 due to reduced investment in R&D[23]. - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[26]. Investment and Acquisitions - The company paid RMB 300 million as a transaction intention fee for the acquisition of 100% equity in Shenzhen Quantum Cloud Technology Co., Ltd., but the deal was terminated without recovering the fee[32]. - The company holds long-term equity investments valued at ¥1,265,866,560.41, indicating a focus on strategic partnerships[70]. - Long-term equity investments were valued at approximately $2.98 billion, indicating a significant investment strategy[76]. Compliance and Standards - The company is committed to adhering to new revenue recognition standards effective from January 1, 2020, which may impact future financial reporting[73]. - The company has implemented new revenue recognition standards starting January 1, 2020, affecting financial reporting[79].