Trendzone(SH:603030)2023-04-28 16:00Financial Performance - The company's operating revenue for Q1 2023 was ¥282,277,268.10, representing a decrease of 43.01% compared to the same period last year[6] - The net profit attributable to shareholders of the listed company was -¥42,978,739.34, a decline of 223.62% year-on-year[6] - Basic earnings per share were -¥0.07, reflecting a decrease of 270.46% compared to the same period last year[6] - Net loss for Q1 2023 was ¥44,962,656.75, compared to a net loss of ¥12,736,026.86 in Q1 2022, representing an increase in losses of 253.5%[29] - The company reported a comprehensive loss of ¥42,809,274.63 for Q1 2023, compared to a comprehensive loss of ¥17,724,054.84 in Q1 2022[30] Cash Flow and Assets - The net cash flow from operating activities was -¥16,755,425.11, down 214.60% from the previous year[6] - The company's total current assets amounted to 4,628,884,341.50 CNY, a decrease from 4,869,450,784.71 CNY as of December 31, 2022[24] - The company's cash and cash equivalents decreased to 192,265,249.27 CNY from 273,207,880.58 CNY[24] - The total cash and cash equivalents at the end of Q1 2023 were approximately $105.48 million, down from $144.40 million at the end of Q1 2022[33] Liabilities and Equity - The equity attributable to shareholders of the listed company was -¥242,305,607.02, down 21.25% from the previous year[6] - The company's total liabilities amounted to ¥5,914,829,438.85, a slight decrease from ¥6,121,510,909.83 in the previous quarter[26] - The total equity attributable to shareholders of the parent company was -¥242,305,607.02, worsening from -¥199,843,025.92 in the previous quarter[26] Legal and Regulatory Issues - The company faced significant legal fees and penalties related to lawsuits, particularly influenced by the Evergrande situation[8] - The company reported a total of over 2,000 lawsuits in the past year, involving approximately 900 million CNY, primarily due to liquidity issues related to the Evergrande situation[20] - The company has been included in the list of dishonest executors due to failure to repay debts, leading to legal actions from suppliers and bondholders[18] Operational Challenges - The decline in operating revenue was primarily due to a reduction in ongoing projects and fewer new projects[8] - The company’s subsidiary, Shanghai Quanzhu Decoration Co., Ltd., is facing bankruptcy proceedings initiated by creditors, which may impact overall operations[14] - The company has triggered the downward adjustment clause for the "Quan Zhu Convertible Bonds" as the stock price has been below 90% of the conversion price (5.25 CNY/share) for at least 10 out of 20 consecutive trading days[16] - The company has decided to terminate the major asset sale due to the bankruptcy application of the asset involved, which was a significant factor in the decision[19] - The company is facing a pre-restructuring application from creditors due to its inability to repay due debts, indicating significant financial distress[20] Government Support and Income - The company received government subsidies amounting to ¥45,313.60 during the reporting period[7] - The company recorded other income of ¥191,241.30 in Q1 2023, compared to ¥400,794.84 in Q1 2022[28] Research and Development - Research and development expenses for Q1 2023 were ¥5,222,190.25, down 43.8% from ¥9,281,315.14 in Q1 2022[28] Cash Flow from Activities - In Q1 2023, the cash inflow from operating activities was approximately $454.69 million, a decrease of 48.6% compared to $885.46 million in Q1 2022[32] - The cash inflow from investment activities totaled approximately $78.84 million, down from $79.64 million in Q1 2022[33] - The cash inflow from financing activities was approximately $54.77 million, a decrease of 54.0% compared to $119.00 million in Q1 2022[33] - The company experienced a negative impact of approximately -$862,549 from exchange rate fluctuations on cash and cash equivalents[33]