LZCIC(SH:600423)2020-04-29 16:00Financial Performance - Operating revenue plummeted by 90.03% to CNY 21,540,307.26 year-on-year[5] - The company achieved a positive net profit for the first quarter, marking a turnaround from previous losses due to the execution of a restructuring plan[14] - Net profit attributable to shareholders was CNY 111,083.26, a significant recovery from a loss of CNY 107,982,449.49 in the previous year[5] - The company reported an operating profit of CNY 264,725.77, compared to an operating loss of CNY 109,656,056.44 in Q1 2019[29] - Net profit for Q1 2020 was CNY 111,083.26, recovering from a net loss of CNY 110,508,989.34 in Q1 2019[30] - The company reported a total comprehensive income of CNY 111,083.26 in Q1 2020, recovering from a loss of CNY 97,789,479.00 in Q1 2019[33] Assets and Liabilities - Total assets decreased by 19.60% to CNY 476,732,576.49 compared to the end of the previous year[5] - Total liabilities decreased by 54.44% compared to the end of the previous year, mainly due to the payment of previously accrued employee settlement costs[12] - Current liabilities decreased from 213.60 million yuan to 97.31 million yuan, reflecting a reduction in financial obligations[23] - The company's equity increased slightly to CNY 379,426,466.56 from CNY 379,327,904.03 year-over-year[27] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -119,849,734.57, worsening from CNY -67,500,452.63 year-on-year[5] - Cash received from sales of goods and services decreased by 91.76%, while cash paid for goods and services decreased by 91.33% and 93.66% respectively, indicating a substantial contraction in business activities[15] - The ending cash and cash equivalents balance for Q1 2020 was CNY 362,824,218.45, down from CNY 417,349,784.09 in Q1 2019[37] - The net cash flow from financing activities was -$133,338,355.74, indicating a significant outflow during the quarter[39] Accounts Receivable and Inventory - Accounts receivable increased by 1271.47% compared to the end of the previous year, primarily due to increased credit sales[12] - Inventory rose by 40.73% compared to the end of the previous year, indicating a buildup of stock due to poor sales conditions[12] - Accounts receivable stood at CNY 5,618,262.81, compared to CNY 409,653.94 in the previous year[26] - Inventory increased to CNY 6,720,987.53 from CNY 4,775,875.76 year-over-year[26] Operational Changes - Operating income and expenses decreased by 94.25% and 90.62% respectively compared to the same period last year, due to a significant reduction in the company's operational scale and scope following the execution of the restructuring plan[15] - The company has retained only the assets of the Luzhai branch, resulting in a small operational scale and a single product line, which poses risks to its ongoing viability[17] - The company disposed of all its subsidiaries in November 2019, resulting in no subsidiaries to consolidate in the current report[7] - The company has not reported any significant new strategies, product developments, or market expansions during the reporting period[18] Other Financial Metrics - The weighted average return on net assets improved by 5.09 percentage points to 0.03%[5] - The company reported a basic earnings per share of CNY 0.00, recovering from a loss of CNY 0.14 per share in Q1 2019[30] - The company incurred sales expenses of CNY 578,268.42 in Q1 2020, a decrease of 91.8% from CNY 7,060,684.80 in Q1 2019[32] - Research and development expenses were CNY 1,189,702.83 in Q1 2019, with no data reported for Q1 2020[32]