SDICZL(SH:600962)2019-04-26 16:00Item 1. Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's 2019 first-quarter report has not been audited5 - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, assuming legal responsibility7 Item 2. Company Overview This section provides an overview of the company's key financial performance and shareholder structure for the first quarter of 2019 2.1 Key Financial Data In Q1 2019, the company experienced declines in key financial metrics, including a 6.39% decrease in operating revenue, a 33.71% drop in net profit attributable to shareholders, and a shift to loss in non-recurring net profit 2019 Q1 Key Financial Data | Metric | Current Period (USD) | Prior Year Period (USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 185,127,519.55 | 197,765,697.64 | -6.39% | | Net Profit Attributable to Shareholders | 1,499,409.68 | 2,261,781.78 | -33.71% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -268,474.54 | 2,234,576.23 | -112.01% | | Net Cash Flow from Operating Activities | 148,544,241.67 | 229,722,549.65 | -35.34% | | Basic Earnings Per Share (USD/share) | 0.0057 | 0.0086 | -33.72% | | Weighted Average Return on Net Assets (%) | 0.18% | 0.27% | Decrease 0.09 percentage points | | Asset Status | End of Current Period (USD) | End of Prior Year (USD) | Change (%) | | Total Assets | 1,763,091,539.47 | 1,954,274,579.75 | -9.78% | | Net Assets Attributable to Shareholders | 836,650,361.05 | 838,692,695.45 | -0.24% | 2019 Q1 Non-recurring Gains and Losses | Item | Amount (USD) | Description | | :--- | :--- | :--- | | Government Grants | 355,077.48 | Mainly for technical renovation interest subsidies | | Other Non-operating Income/Expenses | 1,534,151.10 | - | | Impact on Minority Shareholder Equity (After Tax) | -118,081.03 | - | | Income Tax Impact | -3,263.33 | - | | Total | 1,767,884.22 | - | 2.2 Shareholder Information as of the End of the Reporting Period As of the end of the reporting period, the company had 19,911 shareholders, with State Development and Investment Group Co., Ltd. as the controlling shareholder, and some top shareholder stakes frozen - As of the end of the reporting period, the company had 19,911 shareholders11 Top Three Shareholders' Holdings | Shareholder Name | Shares Held | Holding Ratio (%) | Share Status | | :--- | :--- | :--- | :--- | | State Development and Investment Group Co., Ltd. | 116,855,469 | 44.57 | Unrestricted | | Rushan Economic Development Investment Company | 8,190,000 | 3.12 | Frozen | | Rushan Guoxin Asset Management Co., Ltd. | 3,328,748 | 1.27 | Frozen | Item 3. Significant Events This section details significant changes in the company's key financial statement items and the underlying reasons during the reporting period 3.1 Analysis of Significant Changes and Reasons for Key Financial Statement Items and Indicators During the reporting period, several accounting items showed significant changes, with notable shifts in cash, prepayments, R&D expenses, and cash flow from operations due to business activities and a new subsidiary Major Balance Sheet Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash and Bank Balances | -44% | Primarily due to a decrease in bank deposits | | Prepayments | 68% | Primarily due to increased non-crushing season shutdown expenses | | Other Current Assets | -42% | Primarily due to a decrease in input VAT credit | | Advances from Customers | -89% | Primarily due to a decrease in advance receipts for goods | Major Income Statement Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Research and Development Expenses | 228% | Primarily due to a year-on-year increase in R&D project expenditures | | Financial Expenses | 74% | Primarily due to a year-on-year increase in exchange losses | | Other Income | 3422% | Primarily due to a year-on-year increase in government grants related to daily operations | | Non-operating Income | 7352% | Primarily due to a year-on-year increase in non-recurring income | | Net Profit Attributable to Parent Company Shareholders | -34% | Primarily due to a year-on-year decrease in net profit attributable to parent company shareholders | Major Cash Flow Statement Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash Paid for Goods and Services | 391% | Primarily due to the acquisition of a new non-common control subsidiary | | Taxes and Surcharges Paid | 147% | Primarily due to a year-on-year increase in VAT paid | | Cash Paid for Debt Repayment | -45% | Primarily due to a year-on-year decrease in short-term loan repayments | Item 4. Appendix This section provides the company's unaudited consolidated and parent company financial statements for the first quarter of 2019, serving as the foundational data for the report's analysis 4.1 Financial Statements This section presents the company's unaudited consolidated and parent company financial statements for the first quarter of 2019, providing the detailed basis for financial analysis - This section provides the unaudited consolidated and parent company's three major financial statements, serving as the source of core data for this report202632 Consolidated Balance Sheet As of March 31, 2019, the company's total assets were $1.76 billion, a 9.78% decrease from the beginning of the year; total liabilities were $786.81 million, a 19.30% decrease; and equity attributable to parent company shareholders was $836.65 million, a slight decrease of 0.24% Consolidated Balance Sheet Key Items | Item | March 31, 2019 (USD) | December 31, 2018 (USD) | | :--- | :--- | :--- | | Total Assets | 1,763,091,539.47 | 1,954,274,579.75 | | Total Liabilities | 786,812,478.22 | 974,979,928.27 | | Total Equity Attributable to Parent Company Owners | 836,650,361.05 | 838,692,695.45 | | Total Owners' Equity | 976,279,061.25 | 979,294,651.48 | Parent Company Balance Sheet As of March 31, 2019, the parent company's total assets were $1.47 billion, total liabilities were $904.72 million, and owners' equity was $567.05 million, indicating a higher debt ratio and negative retained earnings compared to consolidated figures Parent Company Balance Sheet Key Items | Item | March 31, 2019 (USD) | December 31, 2018 (USD) | | :--- | :--- | :--- | | Total Assets | 1,471,775,684.06 | 1,476,646,941.44 | | Total Liabilities | 904,721,614.71 | 888,915,978.54 | | Total Owners' Equity | 567,054,069.35 | 587,730,962.90 | Consolidated Income Statement In Q1 2019, the company achieved operating revenue of $185.13 million, a 6.39% YoY decrease; total operating costs were $184.25 million, a 5.09% YoY decrease; and net profit attributable to parent company shareholders was $1.50 million, a significant 33.71% YoY decrease Consolidated Income Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Total Operating Revenue | 185,127,519.55 | 197,765,697.64 | | Total Operating Costs | 184,245,077.45 | 194,129,196.35 | | Total Profit | 2,378,148.72 | 3,663,787.07 | | Net Profit | 526,153.86 | 3,663,787.07 | | Net Profit Attributable to Parent Company Shareholders | 1,499,409.68 | 2,261,781.78 | Parent Company Income Statement In Q1 2019, the parent company's operating revenue was $57.82 million, a significant 67.25% YoY decrease, resulting in a net loss of -$20.68 million, a severe shift from a profit in the prior year Parent Company Income Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Operating Revenue | 57,817,601.50 | 176,514,188.40 | | Operating Profit | -20,676,893.55 | 137,053.25 | | Net Profit | -20,676,893.55 | 147,588.93 | Consolidated Cash Flow Statement In Q1 2019, net cash flow from operating activities was $148.54 million, a 35.34% YoY decrease; net cash outflow from investing activities was $7.37 million; and net cash outflow from financing activities was $161.12 million Consolidated Cash Flow Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 148,544,241.67 | 229,722,549.65 | | Net Cash Flow from Investing Activities | -7,369,363.02 | -19,876,771.92 | | Net Cash Flow from Financing Activities | -161,123,590.42 | -287,358,547.50 | | Net Increase in Cash and Cash Equivalents | -23,562,918.43 | -80,386,914.07 | | Cash and Cash Equivalents at Period End | 30,120,063.82 | 159,837,148.82 | Parent Company Cash Flow Statement In Q1 2019, the parent company's net cash flow from operating activities was $138.53 million, a 36.22% YoY decrease; net cash outflow from financing activities was $156.18 million, primarily for debt repayment Parent Company Cash Flow Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 138,533,499.72 | 218,792,209.57 | | Net Cash Flow from Investing Activities | -278,364.50 | -303,300.00 | | Net Cash Flow from Financing Activities | -156,178,510.42 | -287,358,547.50 | | Net Increase in Cash and Cash Equivalents | -18,177,816.42 | -71,399,821.20 | | Cash and Cash Equivalents at Period End | 17,324,046.67 | 146,780,977.38 |