ZJR(SZ:002021)2023-04-28 16:00Financial Performance - The company's operating revenue for Q1 2023 was CNY 205,433,033.50, a decrease of 32.65% compared to CNY 305,013,683.65 in the same period last year[5]. - Net profit attributable to shareholders was CNY 900,071.48, down 93.90% from CNY 14,751,030.39 year-on-year[5]. - Basic and diluted earnings per share were both CNY 0.0014, a decline of 93.46% from CNY 0.0214 in the same period last year[5]. - The total operating revenue for Q1 2023 was CNY 205,433,033.50, a decrease of approximately 32.7% compared to CNY 305,013,683.65 in the same period last year[27]. - The net profit for Q1 2023 was CNY 695,349.69, a significant decrease from CNY 14,583,973.01 in Q1 2022, representing a decline of approximately 95.24%[28]. - The total comprehensive income for Q1 2023 was CNY 724,658.19, compared to CNY 14,585,923.65 in Q1 2022, marking a decrease of about 95.04%[29]. - The total operating profit for Q1 2023 was CNY 3,396,405.16, down from CNY 13,994,852.35 in Q1 2022, indicating a decline of approximately 75.69%[28]. Cash Flow and Assets - The net cash flow from operating activities increased by 115.74%, reaching CNY 6,471,122.06, compared to a negative cash flow of CNY 41,102,542.28 in the previous year[5]. - Cash and cash equivalents decreased to CNY 106,791,036.90 from CNY 121,715,762.94, a decline of approximately 12.3%[24]. - The net cash flow from investing activities increased by 116.10%, attributed to the recovery of option margin and reduced capital expenditures[12]. - The company incurred a net cash outflow from financing activities of CNY -15,781,398.17, compared to a smaller outflow of CNY -1,694,378.56 in the previous year[31]. - The cash and cash equivalents at the end of Q1 2023 were CNY 106,309,559.67, a decrease from CNY 81,563,549.46 at the end of Q1 2022[31]. Liabilities and Shareholders - Current liabilities surged to CNY 1,624,520,923.50, up from CNY 685,684,928.01, indicating a significant increase of approximately 137.5%[26]. - The total number of common stock shareholders at the end of the reporting period is 20,753[15]. - The largest shareholder, Yuhuan Hengjie Chuangye Investment Partnership, holds 18.84% of shares, totaling 129,605,889 shares[15]. - The second-largest shareholder, Ningbo Yuanxi Equity Investment Partnership, holds 6.18% of shares, totaling 42,523,997 shares[15]. Operational Costs and Income - The company's operating costs decreased by 33.58% year-on-year, reflecting the decline in main business revenue due to market downturns in the sewing equipment industry[10]. - The total operating costs for Q1 2023 were CNY 202,866,298.30, down from CNY 289,798,485.08, reflecting a reduction of about 30.0%[27]. - Other income rose by 373.50% year-on-year, mainly due to an increase in government subsidies received during the reporting period[11]. - The company reported a significant increase in inventory, with a balance of CNY 329,861,917.67 compared to CNY 367,678,916.53 at the beginning of the year[24]. Legal and Compliance Issues - The company is involved in ongoing legal proceedings related to a trust loan obligation of 2.5 billion RMB to Guangzhou Rural Commercial Bank[19]. - The company is liable for half of the debt recognized in a civil judgment amounting to 1,585,666,666.67 RMB against Huaxiang (Beijing) Investment Co., Ltd.[19]. - The company has incurred litigation costs of 2,642,777.89 RMB related to the aforementioned civil judgment[19]. - The company is actively working with legal counsel to manage its investment-related disputes and claims[17]. - The company faced a fine of CNY 1.5 million due to violations of information disclosure regulations, with the former general manager fined CNY 300,000[22]. - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[22]. Impairments and Provisions - The company has recognized impairment provisions for investments in several entities, including Guizhou Tuoshi Energy Co., Ltd. and Shenzhen Qianhai Ideal Financial Holdings Co., Ltd.[16]. - The fair value of the company's equity was assessed at 23,989,900 RMB as of January 2023[18]. - The company reported a credit impairment loss of CNY -1,180,080.44, a decrease from CNY -3,324,123.78 in the previous year, showing an improvement of about 64.53%[28]. Strategic Actions - The company is actively considering asset disposal, introducing new investors, and debt restructuring to address legal challenges and protect investor interests[20]. - The company has reported continuous losses and is taking steps to address its financial challenges[18]. - Financial expenses increased by 178.61% year-on-year, primarily due to increased exchange losses from fluctuations in the US dollar[11].