HHI(SH:601226)2020-04-23 16:00Financial Performance - Operating revenue for the period was ¥858,200,229.29, representing a decline of 29.88% year-on-year[12] - Net profit attributable to shareholders was -¥67,465,315.18, a decrease of 142.74% compared to the previous year[12] - The weighted average return on equity decreased by 1.10 percentage points to -1.88%[12] - The company reported a net loss of 69,933,299.04 RMB for Q1 2020 compared to a profit in the same period last year[38] - The net profit for Q1 2020 was approximately -¥45.66 million, compared to -¥16.19 million in Q1 2019, indicating a significant increase in losses[45] - The total profit for Q1 2020 was approximately -¥45.29 million, a decline from -¥15.51 million in Q1 2019[45] Assets and Liabilities - Total assets at the end of the reporting period were ¥8,732,600,565.57, a decrease of 4.75% compared to the end of the previous year[12] - Total liabilities decreased to 5,147,168,648.72 RMB from 5,513,609,606.75 RMB, reflecting a reduction of 6.6%[35] - The company's equity attributable to shareholders decreased to 3,557,101,752.96 RMB from 3,624,607,231.69 RMB, a decline of 1.9%[35] - Total assets decreased to 8,732,600,565.57 RMB from 9,167,741,433.72 RMB, a decline of 4.8%[33] - Total liabilities reached approximately $3.50 billion, with current liabilities accounting for about $3.50 billion[55] Cash Flow - Cash flow from operating activities was -¥151,761,744.43, showing a slight improvement of 1.60% compared to the previous year[12] - The company's cash and cash equivalents decreased to 1,477,976,768.55 RMB from 1,732,824,021.00 RMB year-over-year, a decline of 14.7%[33] - The cash outflow from operating activities in Q1 2020 was 1,054,237,881.13 RMB, slightly lower than 1,068,785,627.53 RMB in Q1 2019[47] - The net cash flow from operating activities for Q1 2020 was -7,183,072.35 RMB, an improvement from -23,025,495.85 RMB in Q1 2019[47] Revenue Recognition and Adjustments - Accounts receivable decreased by 46.94% to ¥1,339,329,240.05 due to the implementation of new revenue recognition standards[18] - Inventory decreased by 62.46% to ¥799,998,573.82, also a result of the new revenue recognition standards[18] - The company recorded a significant adjustment in accounts receivable, decreasing by 1,209,738,744.64 RMB due to the implementation of new revenue recognition standards[49] - The company adjusted accounts receivable by approximately $805.21 million and inventory by about $1.40 billion due to the new revenue recognition standards[55] - The company has implemented new revenue recognition standards since January 1, 2020, impacting various financial metrics[56] Shareholder Information - The number of shareholders at the end of the reporting period was 38,042[15] - The largest shareholder, China Huadian Science and Technology Group, holds 63.13% of the shares[15] Government Support and Subsidies - The company received government subsidies amounting to ¥3,310,681.47 during the period[15] - Other income increased by 79.46% to ¥3,758,881.47, attributed to higher government subsidies[21] Research and Development - R&D expenses decreased by 36.34% to ¥23,639,981.34 compared to the previous period[21] - Research and development expenses for Q1 2020 were 23,639,981.34 RMB, down from 37,132,278.79 RMB in Q1 2019, a decrease of 36.3%[38] Future Plans and Market Focus - The company plans to acquire 100% equity of Huadian Zhengzhou Mechanical Design Research Institute for ¥41,485.55 million to enhance technical strength and market competitiveness[22] - The company is focusing on developing emerging businesses such as offshore wind power and intelligent delivery systems to adapt to industry trends[26] Impact of COVID-19 - The impact of COVID-19 has delayed the company's resumption of work, affecting market expansion and project execution[29]