王子新材(002735) - 2020 Q1 - 季度财报

Report Cover and Important Notice Important Notice The company's management and financial officers guarantee the truthfulness and completeness of this quarterly report and its financial statements - Company management guarantees the truthfulness, accuracy, and completeness of this report, free from false records, misleading statements, or material omissions[3] - Company principal Wang Jinjun, head of accounting Qu Lemin, and head of accounting department Qu Xiaofen declare and guarantee the truthfulness, accuracy, and completeness of the financial statements[4] Company Profile Key Accounting Data and Financial Indicators In Q1 2020, operating revenue slightly increased by 2.42%, while net profit attributable to shareholders significantly decreased by 38.68%, and total assets declined by 4.76% 2020 Q1 Key Financial Indicators | Indicator | Current Period ($) | Prior Period ($) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 238,244,388.06 | 232,605,043.36 | 2.42% | | Net Profit Attributable to Shareholders | 7,016,833.47 | 11,443,341.10 | -38.68% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 5,942,133.64 | 11,449,967.15 | -48.10% | | Net Cash Flow from Operating Activities | 28,471,055.12 | 31,814,448.23 | -10.51% | | Basic Earnings Per Share ($/share) | 0.05 | 0.08 | -37.50% | - Total non-recurring gains and losses during the reporting period amounted to $1,074,699.83, primarily from $1.44 million in government grants[8] Shareholder Information As of the period-end, the company had 7,269 common shareholders, with controlling shareholder Wang Jinjun holding 38.35% of shares, a portion of which are pledged, and related family members among the top ten - Total common shareholders at the end of the reporting period were 7,269[10] - Controlling shareholder Wang Jinjun holds 38.35% of shares, with 29,880,000 of his 54,732,435 shares pledged[10] - Among the top ten shareholders, Wang Jinjun, Wang Wujun, Wang Xiaojun, and Wang Juan are family members, constituting related parties[10] Significant Events Analysis of Major Financial Data Changes Significant financial changes include increased cash, short-term borrowings, and financing cash flow due to bank loans, a 137% rise in R&D expenses from a merger, and higher investing cash outflow for industrial park construction Financial Data Changes and Reasons | Item | Change (%) | Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | 40% | Due to increased sales collections and bank borrowings in the current period | | Short-term Borrowings | 75% | Due to new bank borrowings in the current period | | Research and Development Expenses | 137% | Due to the merger of Dongguan Qunzan in the current period | | Net Cash Flow from Investing Activities | -74% | Due to payments for Zhengzhou Wangzi and Chengdu Xinzheng Industrial Park construction in the current period | | Net Cash Flow from Financing Activities | 175% | Due to increased cash inflow from bank borrowings in the current period | Progress of Significant Matters The company is expanding globally by investing up to $20 million to establish a Thai subsidiary for consumer electronics and eco-friendly packaging, which was registered in March 2020 - The company plans to invest up to $20 million to establish a second-tier subsidiary, 'Wangzi (Thailand) Co., Ltd.', in Thailand to expand into the Southeast Asian consumer electronics and eco-friendly packaging markets[15] - The Thai subsidiary completed its registration procedures and obtained registration certificates on March 20, 2020[16][17] Other Significant Matters During the reporting period, the company had no share repurchases, overdue unfulfilled commitments, securities investments, wealth management, derivative investments, illegal external guarantees, or non-operating fund occupation by controlling shareholders - During the reporting period, the company had no share repurchases, securities investments, wealth management, or derivative investments[17][18][19] - The company had no illegal external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[21][22] Financial Statements Consolidated Balance Sheet As of March 31, 2020, total assets decreased by 4.76% to $1.145 billion, total liabilities decreased by 13.38% to $398 million, and equity attributable to the parent increased by 1.07% to $663 million Consolidated Balance Sheet Key Items (March 31, 2020) | Item | March 31, 2020 ($) | December 31, 2019 ($) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,145,440,302.51 | 1,202,713,562.28 | -4.76% | | Total Liabilities | 398,331,539.72 | 459,841,619.45 | -13.38% | | Equity Attributable to Parent Company | 663,303,436.56 | 656,286,603.09 | 1.07% | | Cash and Cash Equivalents | 142,479,669.31 | 101,466,782.16 | 40.42% | | Accounts Receivable | 330,159,353.76 | 447,057,538.21 | -26.15% | | Short-term Borrowings | 70,000,000.00 | 40,055,791.65 | 74.76% | Consolidated Income Statement In Q1 2020, operating revenue grew 2.42% to $238.24 million, but increased operating costs, particularly R&D and sales expenses, led to a 52.66% decline in operating profit and a 38.68% drop in net profit attributable to the parent Consolidated Income Statement Key Items (2020 Q1) | Item | Current Period ($) | Prior Period ($) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 238,244,388.06 | 232,605,043.36 | 2.42% | | Total Operating Costs | 235,385,627.69 | 219,621,613.95 | 7.18% | | Operating Profit | 7,656,221.48 | 16,172,051.45 | -52.66% | | Net Profit Attributable to Parent Company | 7,016,833.47 | 11,443,341.10 | -38.68% | | Basic Earnings Per Share | 0.05 | 0.08 | -37.50% | - R&D expenses increased by 137% (from $1.38 million to $3.26 million), and sales expenses increased by 17.7% (from $15.47 million to $18.21 million), significantly contributing to the profit decline[36] Consolidated Cash Flow Statement Net cash from operating activities was $28.47 million (down 10.51%), investing activities had a net outflow of $15.82 million, and financing activities had a net inflow of $27.65 million due to new borrowings, increasing period-end cash to $142 million Consolidated Cash Flow Statement Key Items (2020 Q1) | Item | Current Period ($) | Prior Period ($) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 28,471,055.12 | 31,814,448.23 | | Net Cash Flow from Investing Activities | -15,824,212.07 | -9,100,917.46 | | Net Cash Flow from Financing Activities | 27,653,528.33 | 10,063,616.66 | | Net Increase in Cash and Cash Equivalents | 41,012,887.15 | 32,468,975.31 | - Cash inflow from financing activities primarily stemmed from $40 million in new borrowings[43] Audit and Adjustment Notes The company's Q1 2020 report is unaudited, and no financial statement adjustments were made due to the initial adoption of new revenue or lease standards during this period - The company's first-quarter report is unaudited[48] - During the reporting period, the company did not adjust its financial statements due to the initial adoption of new revenue or lease standards[48]