Grace(SH:603256)2022-04-27 16:00Key Financial Data and Operating Conditions Key Accounting Data and Financial Indicators The company's performance declined in Q1 2022, with a significant drop in net profit despite growth in total assets Key Operating Indicators for Q1 2022 | Indicator | Current Period | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | RMB 176,992,550.95 | -7.06% | | Net Profit Attributable to Shareholders | RMB 15,605,475.31 | -47.94% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | RMB 13,024,465.99 | -54.00% | | Net Cash Flow from Operating Activities | RMB -25,365,747.47 | 99.93% | | Basic Earnings Per Share (RMB/Share) | 0.02 | -33.33% | Key Balance Sheet Indicators at Period End | Indicator | End of Current Period | Change from Prior Year-End (%) | | :--- | :--- | :--- | | Total Assets | RMB 2,595,126,500.56 | 5.08% | | Equity Attributable to Shareholders | RMB 1,551,785,976.45 | 1.22% | Non-recurring Profit and Loss Items Non-recurring profit and loss totaled RMB 2.581 million, primarily from government subsidies and investment income Details of Non-recurring Profit and Loss for Q1 2022 | Item | Current Period Amount (RMB) | Note | | :--- | :--- | :--- | | Government Subsidies | 1,829,065.15 | Government subsidy income | | Investment Income from Bank's Structured Deposits | 782,085.81 | - | | Other Non-operating Income | 750,337.24 | Income from scrap sales and others | | Gain/Loss on Disposal of Non-current Assets | -73,787.46 | Loss on disposal of scrapped fixed assets | | Income Tax Impact | -706,691.42 | - | | Total | 2,581,009.32 | - | Analysis of Changes in Financial Indicators Profit indicators declined significantly due to lower revenue and higher expenses, with cash flow impacted by changes in receivables and operating costs Explanation of Major Financial Indicator Changes | Item Name | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | -47.94% | Mainly due to decreased main business revenue and increased expenses this period | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -54.00% | Same as above | | Net Cash Flow from Operating Activities | N/A | Mainly due to an increase in notes receivable at Shanghai Honghe and increased operating expenses such as purchases and wages at Huangshi Honghe | | Basic/Diluted Earnings Per Share | -33.33% | Due to the decrease in net profit this period | Shareholder Information Shareholder Holdings The company had 21,023 common shareholders with a highly concentrated ownership structure led by the largest shareholder - At the end of the reporting period, the total number of common shareholders was 21,02316 Top Ten Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio (%) | Number of Shares Held | | :--- | :--- | :--- | :--- | | Yuan Yi International Co., Ltd. | Foreign Legal Entity | 74.45 | 658,405,037 | | UNICORN ACE LIMITED | Foreign Legal Entity | 3.26 | 28,805,220 | | SHARP TONE INTERNATIONAL LIMITED | Foreign Legal Entity | 3.26 | 28,805,220 | | INTEGRITY LINK LIMITED | Foreign Legal Entity | 2.79 | 24,690,190 | | Mao Jiaming | Domestic Natural Person | 0.35 | 3,110,706 | - The company's Chairman Mr. Mao Jiaming, Director and General Manager Mr. Du Fu, and Chairman of the Supervisory Board Mr. Liao Mingxiong are all shareholders, but the company is unaware of any related party relationships among other non-restricted shareholders19 Quarterly Financial Statements Consolidated Balance Sheet Total assets reached RMB 2.595 billion, driven by non-current assets, while total liabilities increased due to higher short-term borrowings Key Items of the Consolidated Balance Sheet | Item | March 31, 2022 (RMB) | December 31, 2021 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,595,126,500.56 | 2,469,666,904.37 | +5.08% | | Total Current Assets | 944,934,040.25 | 921,647,300.85 | +2.53% | | Total Non-current Assets | 1,650,192,460.31 | 1,548,019,603.52 | +6.60% | | Total Liabilities | 1,043,340,524.11 | 936,518,478.98 | +11.41% | | Total Current Liabilities | 452,012,140.41 | 354,669,698.59 | +27.45% | | Total Non-current Liabilities | 591,328,383.70 | 581,848,780.39 | +1.63% | | Total Equity Attributable to Parent Company | 1,551,785,976.45 | 1,533,148,425.39 | +1.22% | Consolidated Income Statement Operating revenue decreased to RMB 177 million in Q1 2022, with net profit falling sharply due to rising R&D and financial expenses Key Items of the Consolidated Income Statement | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 176,992,550.95 | 190,445,391.75 | -7.06% | | Total Operating Costs | 156,684,095.65 | 152,441,846.52 | +2.78% | | Of which: R&D Expenses | 9,574,755.82 | 6,333,693.95 | +51.16% | | Financial Expenses | 8,192,189.21 | 2,548,319.65 | +221.47% | | Operating Profit | 15,278,578.53 | 35,532,764.71 | -57.00% | | Net Profit | 15,605,475.31 | 29,978,450.19 | -47.94% | | Basic Earnings Per Share (RMB/Share) | 0.02 | 0.03 | -33.33% | Consolidated Cash Flow Statement The company experienced negative operating cash flow, with significant outflows for investments and inflows from financing activities Summary of Consolidated Cash Flow Statement | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -25,365,747.47 | -12,687,517.56 | | Net Cash Flow from Investing Activities | -120,163,562.34 | -344,673,852.63 | | Net Cash Flow from Financing Activities | 122,682,161.36 | -5,481,272.90 | | Net Increase in Cash and Cash Equivalents | -22,985,530.82 | -362,663,675.09 | - The ending balance of cash and cash equivalents was RMB 211,625,113.48, a decrease from the beginning balance of RMB 234,610,644.303839