NSWRC(SH:600165)2024-04-30 13:28Financial Performance - The company's operating revenue for Q1 2024 was ¥53,896,659.24, representing a year-on-year increase of 16.89%[5] - The net profit attributable to shareholders was -¥51,454,550.60, indicating a significant loss[5] - The net cash flow from operating activities was -¥333,734.47, reflecting challenges in cash generation[5] - The weighted average return on net assets was -36.202%, highlighting the impact of the net profit decline[5] - The company reported a basic and diluted earnings per share of -¥0.075 for the quarter[5] - The net loss attributable to the parent company for Q1 2024 was CNY -1,046,177,792.36, worsening from CNY -994,723,241.77 in Q4 2023[22] - The net profit for Q1 2024 was -57,972,305.47 RMB, an improvement from -66,686,256.61 RMB in Q1 2023, representing a decrease in net loss of approximately 13%[24] - Operating profit for Q1 2024 was -53,772,402.75 RMB, compared to -66,667,320.60 RMB in the same period last year, indicating a reduction in operating loss of about 19%[24] - The total comprehensive income for Q1 2024 was -58,117,992.78 RMB, an improvement from -66,412,010.82 RMB in Q1 2023, indicating a reduction in comprehensive loss of about 12%[24] - Basic and diluted earnings per share for Q1 2024 were both -0.075 RMB, compared to -0.085 RMB in Q1 2023, showing an improvement in earnings per share[24] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,935,317,213.80, a decrease of 0.75% compared to the end of the previous year[5] - Shareholders' equity attributable to the company decreased by 30.74% to ¥116,259,504.86, primarily due to reduced net profit[5] - Total current assets as of March 31, 2024, amounted to CNY 202,100,530.36, slightly up from CNY 198,695,245.81 at the end of 2023[20] - Total liabilities as of March 31, 2024, were CNY 2,611,444,306.71, an increase from CNY 2,575,523,648.67 at the end of 2023[21] - The total assets as of March 31, 2024, were CNY 2,935,317,213.80, down from CNY 2,957,514,548.54 at the end of 2023[22] - The cash and cash equivalents decreased to CNY 21,587,451.13 from CNY 24,399,349.84 at the end of 2023, reflecting a decline of 11.5%[19] - The inventory as of March 31, 2024, was CNY 112,547,273.35, an increase of 17.5% compared to CNY 95,831,731.76 at the end of 2023[20] Operational Challenges - The company has not provided guidance for future performance or new product developments in this report[5] - The company’s subsidiary, Ningxia Zhongke Biological New Materials Co., Ltd., is currently in a temporary shutdown and is expected to be unable to resume normal operations within one month[12] - The company is facing a restructuring application from creditors due to inability to repay debts and is contesting this application in court[15] - The company is currently organizing efforts to restart production at its subsidiary, but the timeline for full recovery remains uncertain[12] Risk Factors - The company’s stock has been placed under risk warning due to continuous negative net profits over three consecutive years from 2021 to 2023[13] - The company’s stock will be subject to delisting risk warnings starting April 30, 2024, following an audit report that expressed an inability to provide an opinion on the financial statements[16] - The company is under delisting risk warning from the Shanghai Stock Exchange effective April 30, 2024, due to financial conditions[17] - The company’s stock has been under other risk warnings since April 8, 2024, due to the subsidiary's operational issues[12] Liquidity Support - The company has signed a liquidity support agreement to provide a guarantee of RMB 60 million for the financing of its subsidiary, with RMB 20 million already received[14] - The liquidity support plan for the subsidiary has been extended until December 31, 2024, to assist in resuming production[14] Revenue and Costs - The increase in operating revenue was mainly driven by higher sales volume from Huahui Environmental Protection[8] - The total operating revenue for Q1 2024 was CNY 53,896,659.24, an increase of 16.1% compared to CNY 46,109,368.75 in Q1 2023[23] - The total operating costs for Q1 2024 were CNY 107,461,892.17, a decrease of 6.8% from CNY 115,018,464.73 in Q1 2023[23] - The operating cost specifically for Q1 2024 was CNY 55,564,166.43, down from CNY 71,983,460.43 in Q1 2023, indicating a significant reduction of 22.7%[23] Cash Flow - The net cash flow from operating activities for Q1 2024 was -333,734.47 RMB, a significant improvement from -42,832,422.48 RMB in Q1 2023[27] - The cash and cash equivalents at the end of Q1 2024 stood at 19,021,898.11 RMB, compared to 9,415,253.24 RMB at the end of Q1 2023, reflecting an increase of approximately 102%[28] - The net cash flow from investing activities for Q1 2024 was 1,772,700.25 RMB, a recovery from -804,450.00 RMB in Q1 2023[28] - The net cash flow from financing activities for Q1 2024 was -4,250,879.04 RMB, compared to 9,824,818.42 RMB in Q1 2023, indicating a shift in financing cash flow[28] - The company reported a tax expense of -137,144.96 RMB in Q1 2024, compared to -52,993.21 RMB in Q1 2023, reflecting an increase in tax-related losses[24]