宏昌电子(603002) - 2019 Q1 - 季度财报

Important Notice - The Board of Directors, Board of Supervisors, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report's content, with no false records, misleading statements, or major omissions[8] - The company's legal representative, chief accounting officer, and head of the accounting department guarantee the truthfulness, accuracy, and completeness of the financial statements[9] - The company's first quarter report for 2019 is unaudited[10] Company Profile Key Financial Data The company's performance declined sharply in Q1 2019, with net profit attributable to shareholders plummeting by 80.62% year-over-year Key Financial Indicators for Q1 2019 | Indicator | Q1 2019 | Q1 2018 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 368,543,959.00 | 373,499,165.74 | -1.33% | | Net Profit Attributable to Shareholders (RMB) | 3,861,487.30 | 19,928,285.20 | -80.62% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | -2,332,863.01 | 19,625,770.55 | -111.89% | | Net Cash Flow from Operating Activities (RMB) | -107,336,462.35 | 75,230,699.97 | -242.68% | | Basic Earnings Per Share (RMB/Share) | 0.01 | 0.03 | -66.67% | | Weighted Average Return on Equity (%) | 0.35% | 1.80% | Decreased by 1.45 percentage points | Details of Non-recurring Gains and Losses | Item | Amount for the Period (RMB) | Description | | :--- | :--- | :--- | | Government Grants | 7,352,252.27 | Government subsidy income | | Gains/Losses from Entrusted Investments | 19,131.51 | Investment income from bank wealth management products | | Other Non-operating Income and Expenses | -66,667.00 | Donation expenses | | Gains/Losses on Disposal of Non-current Assets | -17,245.83 | Loss on disposal of scrapped fixed assets | | Income Tax Impact | -1,093,120.64 | - | | Total | 6,194,350.31 | - | Shareholder Information As of the end of the reporting period, the company had 32,930 shareholders, with the largest shareholder holding a 41.29% stake - As of the end of Q1 2019, the total number of shareholders was 32,930[14] Top Five Shareholders | Shareholder Name | Number of Shares Held (Shares) | Percentage (%) | | :--- | :--- | :--- | | EPOXY BASE INVESTMENT HOLDING LTD. | 253,702,000 | 41.29 | | Zheng Hong | 3,364,300 | 0.55 | | Li Jiandong | 2,984,800 | 0.49 | | Societe Generale | 2,795,050 | 0.45 | | Liu Zhangang | 2,500,577 | 0.41 | Significant Matters Analysis of Significant Changes in Key Financial Indicators Profitability declined significantly due to compressed product-material price spreads, while financial expenses and short-term debt pressure increased - The core reason for the sharp decline in performance was the sluggish epoxy resin market in Q1, continuing from Q4 2018, with insufficient downstream demand, lower product selling prices compared to the same period last year, and compressed price spreads between products and main raw materials[21] Key Changes in Balance Sheet Items | Account Name | Variance (%) | Reason for Change | | :--- | :--- | :--- | | Short-term Borrowings | -88.89% | Repayment of short-term bank loans | | Advances from Customers | 273.67% | Increased customer prepayments | | Non-current Liabilities Due within One Year | 562.50% | Increased long-term bank loans due within one year | Key Changes in Income Statement Items | Account Name | Variance (%) | Reason for Change | | :--- | :--- | :--- | | Financial Expenses | 511.04% | Increased bank interest expenses | | Asset Impairment Loss | -230.91% | Reversal of inventory write-down provision made at the beginning of the period | | Other Income | 1,405.64% | Increased government subsidies related to operating activities | | Investment Income | -91.66% | Decreased interest income from wealth management products | | Income Tax Expense | -50.49% | Decreased total profit due to lower product gross margins | Key Changes in Cash Flow Statement Items | Account Name | Variance (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -242.68% | Decreased cash collection from sales and increased payments for raw materials | | Net Cash Flow from Investing Activities | 95.84% | Reduced payments for the Zhuhai Hongchang plant construction project | | Net Cash Flow from Financing Activities | 336.97% | Increased bank borrowings | Commitments The commitment to avoid horizontal competition by the actual controller was strictly fulfilled during the reporting period - The commitment made by the company's actual controller and related parties to avoid horizontal competition was promptly and strictly fulfilled during the reporting period[26] Appendix Financial Statements This appendix contains the unaudited consolidated and parent company financial statements for the first quarter of 2019 Consolidated Balance Sheet As of March 31, 2019, total assets and liabilities decreased by 8.05% and 18.99% respectively from the beginning of the year Key Items of Consolidated Balance Sheet (Unit: RMB) | Item | March 31, 2019 | December 31, 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,802,057,860.46 | 1,959,752,264.88 | -8.05% | | Cash and Cash Equivalents | 306,146,925.84 | 433,246,954.62 | -29.34% | | Notes and Accounts Receivable | 746,270,738.85 | 724,996,903.22 | +2.93% | | Inventories | 119,697,374.88 | 167,514,515.50 | -28.54% | | Total Liabilities | 688,158,225.29 | 849,642,193.51 | -18.99% | | Short-term Borrowings | 5,000,000.00 | 45,000,000.00 | -88.89% | | Notes and Accounts Payable | 551,758,628.31 | 709,755,194.50 | -22.26% | | Equity Attributable to Parent Company | 1,113,899,635.17 | 1,110,110,071.37 | +0.34% | Consolidated Income Statement In Q1 2019, operating profit and net profit attributable to the parent company fell sharply by 75.40% and 80.62% YoY, respectively Key Items of Consolidated Income Statement (Unit: RMB) | Item | Q1 2019 | Q1 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 368,543,959.00 | 373,499,165.74 | -1.33% | | Total Operating Costs | 370,030,753.00 | 350,291,459.68 | +5.63% | | Operating Profit | 5,884,589.78 | 23,925,550.40 | -75.40% | | Total Profit | 5,800,676.95 | 23,845,120.40 | -75.67% | | Net Profit | 3,861,487.30 | 19,928,285.20 | -80.62% | Consolidated Cash Flow Statement Net cash flow from operating activities turned negative to -RMB 107 million, a significant deterioration from the previous year Key Items of Consolidated Cash Flow Statement (Unit: RMB) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -107,336,462.35 | 75,230,699.97 | | Net Cash Flow from Investing Activities | -2,852,679.50 | -68,523,411.76 | | Net Cash Flow from Financing Activities | 1,267,331.01 | -534,795.46 | | Net Increase in Cash and Cash Equivalents | -109,537,545.20 | 5,447,375.07 |