WINNERWAY(SZ:000573)2020-04-29 16:00Financial Performance - The company's operating revenue for Q1 2020 was ¥118,316,325.06, a decrease of 22.46% compared to ¥152,585,700.03 in the same period last year[7]. - The net profit attributable to shareholders was a loss of ¥5,946,378.68, representing a decline of 107.62% from a profit of ¥78,084,158.91 in the previous year[7]. - The basic earnings per share were -¥0.0094, down 107.50% from ¥0.1254 in the previous year[7]. - Net profit for the period was -¥7,031,730.63, a decline of 109.21% compared to the previous year[16]. - Total operating revenue for Q1 2020 was ¥118,316,325.06, a decrease of 22.4% compared to ¥152,585,700.03 in the same period last year[49]. - Investment income for Q1 2020 was ¥368,584.17, a sharp decline from ¥83,187,792.34 in the previous year[50]. - The company reported a significant increase in financial expenses, which rose to ¥9,677,099.74 from ¥4,299,943.92, primarily due to higher interest expenses[50]. Cash Flow - The net cash flow from operating activities was -¥56,901,118.88, which is a 78.02% increase in cash outflow compared to -¥31,962,840.46 in the same period last year[7]. - Cash inflow from operating activities decreased by 68.76% to ¥90,637,839.07, mainly due to reduced cash from product sales[16]. - Cash flow from financing activities increased by 865.31% to ¥107,136,132.73, primarily due to increased bank loans[17]. - Cash flow from investing activities resulted in a net outflow of -6,781,917.22 CNY, an improvement from -25,179,403.73 CNY in the previous year[59]. - The company received 240,000,000.00 CNY in borrowings during the financing activities, an increase from 145,000,000.00 CNY in the previous period[60]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,948,740,809.52, reflecting a slight increase of 0.54% from ¥2,932,765,818.93 at the end of the previous year[7]. - Total liabilities increased significantly, with short-term borrowings rising by 77.13% to ¥333,451,186.11[15]. - Current assets totaled CNY 1,756,289,051.76 as of March 31, 2020, down from CNY 1,934,904,969.69 on December 31, 2019, representing a decrease of approximately 9.2%[41]. - Total liabilities increased to CNY 1,223,440,959.88 as of March 31, 2020, compared to CNY 1,202,346,624.09 at the end of 2019, an increase of about 1.8%[43]. - The company's equity attributable to shareholders decreased to CNY 1,721,819,350.12 from CNY 1,725,853,343.37, a decline of about 0.2%[44]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 48,336[10]. - The largest shareholder, Guangdong Hongyuan Group Co., Ltd., held 19.71% of the shares, amounting to 127,859,707 shares, with 101,920,000 shares pledged[10]. Legal Matters - The company is involved in a lawsuit regarding the illegal production and sales at the Kongjiagou coal mine, which has led to significant operational and financial impacts, including potential closure and loss of value[20]. - The company has been ordered to pay a total of 15.56 million RMB due to a court ruling related to the Kongjiagou coal mine, with 10 million RMB of its bank deposits frozen as a result of the lawsuit[21]. - The company has initiated legal action against Liu Xiangyang and related parties for a breach of contract involving a 30 million RMB mining rights transfer, with only 1 million RMB paid to date[23]. Operational Changes - The company has approved a hedging strategy to mitigate operational risks from price fluctuations, with a maximum margin of 60 million RMB allocated for futures trading in metals[26]. - The company has successfully acquired land use rights for a project in Dongguan for 255.155 million RMB, with a total area of 57,765.78 m²[27]. - The company has entered into a partnership for a real estate project, with a 28.57% stake in a newly established company for the development of the Dongguan project[27]. - The company invested RMB 2 million to acquire a 10% stake in Huizhou Wanxu Real Estate Co., Ltd. during the reporting period[29]. Risk Management - The company engaged in derivative investments, specifically commodity futures hedging, to mitigate risks associated with price fluctuations in production and trade[34]. - The company has established a management system for commodity futures hedging to control operational risks and stabilize performance[34]. - The company plans to continue utilizing the commodity futures market for hedging to secure expected profits and manage operational risks effectively[34]. - The company has maintained compliance with regulatory requirements regarding derivative investments and risk management practices[34].