Profit C&C(SZ:300640)2021-04-26 16:00Financial Performance - The company's operating revenue for Q1 2021 was ¥165,634,517.73, representing a 36.66% increase compared to ¥121,204,577.98 in the same period last year[7]. - The net profit attributable to shareholders decreased by 38.22% to ¥8,239,253.44 from ¥13,337,514.40 year-on-year[7]. - The net cash flow from operating activities was negative at ¥-8,291,218.95, a decline of 125.46% compared to ¥32,561,177.67 in the previous year[7]. - The total assets at the end of the reporting period increased by 85.01% to ¥894,254,024.35 from ¥483,348,986.77 at the end of the previous year[7]. - The net assets attributable to shareholders rose by 99.30% to ¥677,737,273.05 from ¥340,063,888.73 at the end of the previous year[7]. - The basic earnings per share decreased by 38.25% to ¥0.0373 from ¥0.0604 in the same period last year[7]. - The weighted average return on equity fell to 2.39%, down 1.53% from 3.92% in the previous year[7]. - Revenue for Q1 2021 reached CNY 165,634,517.73, a 36.66% increase compared to CNY 121,204,577.98 in the same period last year, driven by business scale growth[25]. - Operating costs increased by 50.76% to CNY 143,227,728.86 from CNY 95,005,692.93, primarily due to the implementation of new revenue standards and increased business scale[25]. - Net profit decreased by 38.22% to CNY 8,239,253.44 from CNY 13,337,514.40, attributed to rising costs and exchange rate fluctuations[25]. - Cash and cash equivalents surged by 521.56% to CNY 351,285,121.61 from CNY 56,517,092.74, mainly due to funds raised from issuing shares to specific investors[25]. - The company reported a total revenue of CNY 165,634,517.73 for the current period, compared to CNY 121,204,577.98 in the previous period, indicating a growth of 36.5%[61]. - The net profit for the first quarter was CNY 8,239,253.44, down from CNY 13,337,514.40 in the same period last year, representing a decrease of approximately 38.5%[63]. - The total operating costs rose to CNY 158,209,711.67 from CNY 112,141,057.44, marking an increase of approximately 41.1%[66]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,737[11]. - The largest shareholder, Wu Tifang, holds 39.55% of the shares, amounting to 113,440,509 shares, with 87,493,509 shares pledged[11]. - The company reported a total of 14,001,350 shares locked for directors and senior management, with a release schedule of 25% per year after the term ends[15]. - A total of 5,973,750 shares are locked for director Wu Liping, with a similar 25% annual release policy[15]. - The company has a total of 1,282,500 shares locked under the 2018 restricted stock incentive plan for director Ouyang Jun, which will also follow the 25% annual release[15]. - The total locked shares for director Chen Xiujun amount to 918,000, adhering to the same release schedule[16]. - Director You Jianhua has 1,224,000 shares locked, with 306,000 shares released recently under the incentive plan[16]. - Director Chen Yun has 803,625 shares locked, with a release policy of 25% per year after the term ends[17]. - Director Wu Bing has 596,400 shares locked, with a release schedule of 25% annually[17]. - The company emphasizes that locked shares cannot be reduced during the six months following the departure of directors and senior management[16]. - The 2018 restricted stock incentive plan allows for the release of shares according to specific company regulations[17]. - The company maintains a structured approach to share lock-up and release, ensuring alignment with management performance and retention strategies[15]. Cash Flow and Investment - The company reported a financial expense of CNY -61,073.10, an improvement compared to CNY -1,607,548.80 in the previous period[66]. - Total cash inflow from financing activities reached 410,182,270.90 CNY, with a net cash flow of 401,731,538.72 CNY after outflows[72]. - The company reported a net increase in cash and cash equivalents of 294,768,028.87 CNY, compared to a decrease of 83,014,498.52 CNY in the previous period[72]. - The total cash outflow from investing activities was 108,805,272.80 CNY, resulting in a net cash flow of -98,778,149.51 CNY from investments[75]. - The company received 10,000,000.00 CNY from investment recoveries, consistent with the previous period[75]. - Cash outflow for purchasing goods and services was 151,677,974.09 CNY, compared to 104,130,479.56 CNY in the prior year[73]. - The ending balance of cash and cash equivalents was 351,285,121.61 CNY, significantly higher than 68,977,029.35 CNY at the end of the previous period[72]. - The company reported a cash inflow of 332,982,270.90 CNY from new investments, indicating strong investor confidence[75]. Fund Utilization and Projects - The total amount of raised funds is CNY 47,892.78 million, with CNY 892.6 million invested in the current quarter[43]. - Cumulative amount of raised funds invested is CNY 15,020.69 million, representing 31.36% of the total raised funds[43]. - The cumulative change in the use of raised funds amounts to CNY 771.59 million, which is 5.17% of the total raised funds[43]. - The project "Cultural and Creative Industry Base" has achieved 100% of its investment target with CNY 12,749.58 million invested[43]. - The "Overseas Marketing Network Construction Project" has reached 99.91% of its investment target with CNY 478.16 million invested[43]. - The "Cultural Creative Product E-commerce Platform Project" has also achieved 100% of its investment target with CNY 293 million invested[43]. - The company has not changed the use of raised funds during the reporting period, with no overdue commitments from major stakeholders[41][40]. - The company has not reported any significant changes in project feasibility or expected benefits[43]. - The total amount of funds for supplementary working capital is CNY 1,500 million, fully utilized[43]. - The company has not allocated any excess raised funds for new projects[43]. - The company has decided to change the use of raised funds (including interest income) totaling CNY 7.7159 million from the "Overseas Marketing Network Construction Project" and "Cultural Creative Products E-commerce Platform Project" to the "De Yi Cultural and Creative Industry Base Project" due to changes in market conditions and project feasibility[44]. - The original plan for the "Overseas Marketing Network Construction Project" involved using CNY 4.4742 million to establish offices in 11 countries, but the company has opted to terminate this project to reduce financial costs and improve fund utilization efficiency[44]. - The "Cultural Creative Products E-commerce Platform Project" was initially budgeted at CNY 2.93 million, but the company has determined that existing third-party e-commerce platforms provide better economic benefits than building its own platform, leading to the project's termination[44]. Market Strategy and Risks - The company plans to enhance sales channels in emerging markets and strengthen e-commerce and new media marketing strategies[27]. - The company aims to improve product design innovation and diversify product categories in response to rising raw material prices and international shipping costs[27]. - The company faces risks related to the inability to continuously enhance R&D capabilities, which could lead to a decline in product gross margins and market share if core design personnel leave or R&D capabilities do not improve[29]. - The company's reliance on overseas markets is significant, with foreign sales accounting for a high proportion of main business revenue, exposing it to risks from global economic uncertainties and potential sales revenue decline[31]. - Increased competition in the cultural creative home goods industry may lead to a decrease in average industry profit margins, necessitating improvements in R&D innovation and product management to enhance competitiveness[32]. - Rising procurement costs pose a risk due to the company's reliance on outsourcing for production, which could negatively impact operational performance if raw material prices fluctuate significantly[33]. - The company has a high proportion of foreign sales revenue settled in USD, making it vulnerable to exchange rate fluctuations that could weaken its pricing advantage in overseas markets[34]. - The company is committed to enhancing R&D design levels and product competitiveness to mitigate risks associated with overseas market dependence and procurement costs[31][33]. - The establishment of a national-level industrial design center and the investment in a high-quality design platform are aimed at attracting more talented individuals to the company[30]. - The company plans to develop more potential markets and improve its domestic market influence by leveraging its R&D design advantages accumulated in foreign markets[31]. - The company emphasizes the importance of training design talent and maintaining a proactive attitude towards R&D innovation to sustain its market competitiveness[29]. Compliance and Governance - The company has not reported any violations regarding external guarantees during the reporting period[46]. - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[47]. - The company has not engaged in any research, communication, or interview activities during the reporting period[48]. - The company has disclosed that there are no issues with the use of raised funds, ensuring all information is timely, accurate, and complete[45]. - The company has not undergone an audit for the first quarter report, which may affect the reliability of the financial data presented[77].