WLGF(SH:603779)2020-04-28 16:00Financial Performance - Net profit attributable to shareholders was CNY -37,924,142.04, a significant decline from CNY 15,503,123.39 in the same period last year[5] - Operating revenue fell by 48.88% to CNY 109,969,193.34, down from CNY 215,122,205.88 year-on-year[5] - The company expects a significant decline in operating revenue and net profit for the first half of 2020 due to the ongoing effects of the pandemic, with a warning of potential losses[15] - The company reported a comprehensive loss of ¥92,280,856.77 for Q1 2020, compared to a comprehensive income of ¥10,612,837.72 in Q1 2019[27] - The gross profit margin for Q1 2020 was negative, indicating a significant decline in profitability compared to the previous year[26] Cash Flow and Liquidity - Cash flow from operating activities was CNY -23,444,327.78, compared to CNY 24,321,773.66 in the previous year, indicating a significant cash outflow[5] - Cash received from sales and services was ¥106,064,520.15, down 52.76% from ¥224,521,043.70, primarily due to the decline in revenue[13] - The net cash flow from operating activities in Q1 2020 was -23,444,327.78 RMB, compared to a positive 24,321,773.66 RMB in Q1 2019, indicating a significant decline[33] - The total cash inflow from operating activities in Q1 2020 was 43,390,365.81 RMB, a decline of 72.8% from 159,662,013.96 RMB in Q1 2019[35] - The ending cash and cash equivalents balance for Q1 2020 was 36,736,249.98 RMB, a decrease from 92,210,690.68 RMB in Q1 2019[34] Assets and Liabilities - Total assets decreased by 7.70% to CNY 1,898,262,849.76 compared to the end of the previous year[5] - Total liabilities decreased from CNY 696,954,475.99 to CNY 630,797,088.57, a decline of about 9.47%[20] - Cash and cash equivalents decreased from CNY 47,808,170.64 to CNY 15,137,851.91, a drop of approximately 68.4%[22] - Accounts receivable increased from CNY 60,915,629.25 to CNY 88,762,534.49, an increase of about 45.7%[22] - Total equity decreased from CNY 1,359,746,617.96 to CNY 1,267,465,761.19, a decline of about 6.75%[20] Shareholder Information - The number of shareholders reached 12,874 at the end of the reporting period[9] - The largest shareholder, Wang Zhenhai, holds 47.27% of the shares, with 157,278,629 shares, of which 4,456,966 are frozen[9] Expenses and Costs - Tax and additional charges decreased by 45.67% to ¥9,515,822.58 from ¥17,516,405.93, attributed to the decline in operating revenue[13] - Sales expenses fell by 32.18% to ¥42,730,889.37 from ¥63,010,394.67, mainly due to reduced transportation and promotional costs resulting from lower product sales[13] - R&D expenses decreased by 32.95% to ¥768,936.61 from ¥1,146,802.54, reflecting a reduction in related costs during the pandemic[13] Government Support - The company received government subsidies amounting to ¥2,203,407.86, an increase of 304.03% compared to ¥545,356.36 in the previous year[13] Legal and Regulatory Issues - The company is facing legal challenges due to unauthorized guarantees provided by its controlling shareholder, which may adversely affect its financial position[14] Accounting and Reporting - The company is adjusting its accounting policies in accordance with the new revenue standards effective from January 1, 2020[41] - The company did not apply new revenue and leasing standards for the reporting period[45] - There were no adjustments made to prior comparative data, indicating stability in reporting[45]