秦安股份(603758) - 2019 Q1 - 季度财报

Item I. Important Notice The company's management assures the truthfulness, accuracy, and completeness of this quarterly report Report Authenticity and Audit Statement The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report, noting that the financial report is unaudited - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, free from false records, misleading statements, or major omissions[4] - The company's responsible person, chief financial officer, and head of accounting department all guarantee the truthfulness, accuracy, and completeness of the financial statements[5] - This company's Q1 2019 report is unaudited[5] Item II. Company Overview This section provides an overview of the company's key financial performance and shareholder structure for the reporting period Key Financial Data and Non-Recurring Gains/Losses In Q1 2019, the company experienced a significant performance decline, with revenue down 43.21% and net profit attributable to shareholders turning into a loss of $31.98 million, primarily due to increased bill settlements impacting cash flow 2019 Q1 Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue ($) | 115,099,459.77 | 202,690,514.78 | -43.21% | | Net Profit Attributable to Shareholders ($) | -31,978,210.25 | 2,314,541.84 | - | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) ($) | -33,750,139.30 | 1,523,917.81 | - | | Net Cash Flow from Operating Activities ($) | -56,926,620.44 | 104,594,912.90 | -154.43% | | Basic Earnings Per Share ($/share) | -0.07 | 0.01 | - | | Weighted Average Return on Net Assets (%) | -1.38% | 0.09% | Decreased by 1.47 percentage points | - Net cash flow from operating activities significantly decreased, mainly due to a $51.25 million increase in sales to customers using bill settlements, leading to reduced cash collection[7] 2019 Q1 Non-Recurring Gains/Losses Items | Item | Amount ($) | | :--- | :--- | | Government grants included in current profit/loss | 1,035,000.00 | | Gains/losses from entrusted investments or asset management | 1,048,622.41 | | Other non-operating income and expenses | 1,000.00 | | Income tax impact | -312,693.36 | | Total | 1,771,929.05 | Shareholder Information As of the reporting period end, the company had 17,509 shareholders, with controlling shareholder YUANMING TANG holding 65.63% of shares, and some top ten shareholders having related party or family relationships - As of the reporting period end, the total number of common shareholders was 17,509[12] - The largest shareholder, YUANMING TANG, an overseas natural person, holds a high proportion of 65.63% of shares, all of which are restricted shares[12] - Among the top ten shareholders, Shanghai Xianghe Hongan, Shanghai Hongcheng, and Shanghai Xianghe Yongan are under the same controlling entity; Shanghai Lanchen Qin'an and Shanghai Lanchen Jiexie are under the same controlling entity; and some shareholders have family relationships[13] Item III. Significant Matters This section details significant changes in key financial data and their causes for Q1 2019, along with a performance warning for the next reporting period, primarily due to weak customer demand leading to revenue decline and net loss Analysis of Significant Changes in Key Financial Items During the reporting period, multiple financial indicators underwent significant changes, including a 59.14% increase in accounts receivable due to altered settlement methods, a 43.21% decrease in operating revenue due to reduced customer demand, and a 154.43% decrease in net cash flow from operating activities (1) Balance Sheet Items Key balance sheet changes include a 59.14% increase in notes and accounts receivable due to increased bill settlements, and a 39.98% decrease in other current assets from partial redemption of wealth management products Balance Sheet Key Item Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Notes and Accounts Receivable | 59.14% | Mainly due to increased sales to customers using bill settlements, leading to an increase in notes receivable balance | | Other Current Assets | -39.98% | Partial redemption of wealth management products | | Other Non-Current Assets | 53.03% | Increase in equipment prepayments | | Employee Compensation Payable | -32.25% | Lower production and 2018 year-end bonuses paid in this period | (2) Income Statement Items Core income statement changes include a 43.21% year-over-year decrease in operating revenue due to weak major customer markets, a 90.48% increase in administrative expenses due to depreciation of temporarily idle equipment, and a 50.33% increase in R&D expenses from new projects Income Statement Key Item Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | -43.21% | Major customer market sales weakened, demand decreased | | Operating Cost | -33.42% | Primarily due to decreased sales revenue | | Administrative Expenses | 90.48% | Increased depreciation of temporarily idle equipment | | Research and Development Expenses | 50.33% | Increase in new R&D projects, leading to higher R&D expenditures | | Asset Impairment Losses | -390.33% | Increase in inventory depreciation provision and bad debt provision for accounts receivable | | Income Tax Expense | -390.92% | Decrease in income tax expense due to losses | (3) Cash Flow Statement Items The cash flow statement shows a significant 154.43% year-over-year decrease in net cash flow from operating activities, turning from net inflow to net outflow, primarily due to increased bill settlements and declining sales revenue Cash Flow Statement Key Item Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -154.43% | Mainly due to increased sales to customers using bill settlements, along with a significant decline in major customer sales revenue | | Net Cash Flow from Investing Activities | -127.46% | Partial recovery of investment in wealth management funds, while the amount used for wealth management investments decreased | | Net Cash Flow from Financing Activities | -100.00% | No financing activities income or expenditure in this period | Performance Warning The company issued a performance warning, projecting a cumulative net loss for the first half of 2019 based on major customer demand forecasts - The company predicts a net loss for the 2019 semi-annual report[16][17] - This prediction is based on demand plans issued by the company's major customers[16] Item IV. Appendix This section provides the company's unaudited financial statements for Q1 2019, including the balance sheet, income statement, and cash flow statement Financial Statements (Unaudited) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2019, including the balance sheet, income statement, and cash flow statement, showing total assets of $2.453 billion, operating revenue of $115.10 million, a net loss of $31.98 million, and net cash outflow from operating activities of $56.93 million Consolidated Balance Sheet As of March 31, 2019, the company's total assets were $2.453 billion, a 1.74% decrease from the beginning of the year, with total liabilities at $147.19 million and net assets attributable to shareholders at $2.306 billion Consolidated Balance Sheet Key Data (March 31, 2019) | Item | Amount ($) | | :--- | :--- | | Total Assets | 2,452,860,520.31 | | Total Liabilities | 147,188,582.51 | | Total Equity Attributable to Parent Company Shareholders | 2,305,671,937.80 | Consolidated Income Statement In Q1 2019, the company's total operating revenue was $115.10 million, a 43.21% year-over-year decrease, resulting in an operating loss of $37.51 million and a net loss attributable to parent company shareholders of $31.98 million Consolidated Income Statement Key Data (2019 Q1) | Item | Amount ($) | | :--- | :--- | | Total Operating Revenue | 115,099,459.77 | | Operating Profit | -37,506,907.09 | | Total Profit | -37,505,907.09 | | Net Profit | -31,978,210.25 | Consolidated Cash Flow Statement In Q1 2019, net cash flow from operating activities was -$56.93 million, a 154.43% year-over-year decrease, while net cash flow from investing activities was $83.76 million, primarily due to investment recovery, with cash and cash equivalents at period-end totaling $208 million Consolidated Cash Flow Statement Key Data (2019 Q1) | Item | Amount ($) | | :--- | :--- | | Net Cash Flow from Operating Activities | -56,926,620.44 | | Net Cash Flow from Investing Activities | 83,755,613.38 | | Net Cash Flow from Financing Activities | 0.00 | | Net Increase in Cash and Cash Equivalents | 26,738,639.15 |