Absen(SZ:300389)2019-04-26 16:00Financial Performance - Total revenue for Q1 2019 was CNY 422,629,826.41, representing a 26.50% increase compared to CNY 334,088,608.16 in the same period last year[14]. - Net profit attributable to shareholders was CNY 28,310,247.67, up 27.89% from CNY 22,137,189.97 year-on-year[14]. - Net profit excluding non-recurring gains and losses was CNY 21,018,985.82, reflecting a 17.55% increase from CNY 17,880,245.77 in the previous year[14]. - Basic earnings per share increased to CNY 0.0890, a rise of 27.69% from CNY 0.0697 in the previous year[14]. - The company achieved total operating revenue of CNY 423 million in Q1 2019, representing a year-on-year growth of approximately 26.50%[30]. - The net profit attributable to shareholders was CNY 28.31 million, an increase of about 27.89% compared to the previous year[30]. Cash Flow and Assets - Operating cash flow improved significantly, with a net cash flow from operating activities of -CNY 23,299,208.76, a 61.67% improvement from -CNY 60,784,108.67 in the same period last year[14]. - The company's cash and cash equivalents decreased by 33.15% to RMB 340,209,642.25 from RMB 508,902,080.37 at the beginning of the period[25]. - The company's cash and cash equivalents decreased to CNY 340,209,642.25 from CNY 508,902,080.37, indicating a reduction of about 33.1%[67]. - As of March 31, 2019, the company's total current assets amounted to CNY 1,485,315,166.24, a slight decrease from CNY 1,497,264,846.98 at the end of 2018, representing a decline of approximately 0.12%[67][69]. - The total assets of the company as of March 31, 2019, were CNY 1,898,560,983.73, down from CNY 1,982,181,362.16[80]. - The company's total equity rose to CNY 1,297,056,447.93 from CNY 1,271,719,445.49, reflecting an increase of about 2%[73]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 9,094, with the top ten shareholders holding significant stakes[16]. - Major shareholders include Ding Yanhui with 25.79% and Ren Yonghong with 19.17%, both having pledged a portion of their shares[16]. - The number of restricted shares held by major shareholders remained unchanged, with 丁彦辉 holding 61,880,752 shares[21]. Investment and R&D - The company plans to continue its investment in equipment, as indicated by a 1493.63% increase in construction in progress to RMB 967,614.45[25]. - Research and development expenses for Q1 2019 were CNY 15,688,503.38, compared to CNY 12,870,331.49 in the previous year, indicating a year-over-year increase of 22.0%[81]. - The company launched the AX1.5 product and completed the development of the AX1.2 product, utilizing advanced IMD technology for high-density LED displays[35]. - The company is focused on R&D and brand marketing to improve product competitiveness and mitigate potential declines in gross margin due to market competition[40]. Risks and Management - The company faces risks from increasing accounts receivable, which could impact profitability, and plans to enhance credit management and collection efforts[38]. - The company is addressing management risks associated with rapid expansion by optimizing organizational structure and enhancing internal control processes[42]. - The company is actively expanding its domestic market presence to mitigate risks associated with foreign exchange fluctuations, as overseas sales are primarily settled in USD[37]. Financial Management - The company received government subsidies amounting to CNY 8.35 million, a 70.50% increase from CNY 4.90 million in the previous year[28]. - The company’s financial expenses decreased by 32.11% to CNY 10.79 million, attributed to reduced exchange losses from currency fluctuations[28]. - The company has implemented a financial derivatives trading control system to hedge against foreign exchange risks, aligning with the scale of international business revenue[37]. Corporate Governance - The company appointed Sun Weiling as the new Vice General Manager and Board Secretary on March 14, 2019[48]. - The company’s Vice General Manager, Mr. Zhang Wenlei, resigned on March 11, 2019, but will continue to work within the company[48]. - The company’s Vice General Manager, Mr. Deng Jiangbo, resigned on January 24, 2019, but will remain with the company[48]. Project Commitments - The total amount of raised funds is 26,066.17 million CNY, with 105.17 million CNY invested in the current quarter[54]. - The company decided to terminate the LED lighting product construction project due to insufficient profitability and market competition[60]. - The company plans to increase investment in the technology R&D center to expedite its completion[60]. - The company aims to maximize the efficiency of raised funds and protect shareholder interests by reallocating funds from terminated projects[60].