HUAFANG COMPANY(SH:600448)2024-05-31 10:12Key Financial Data and Operating Analysis Core Financial Metrics In Q1 2024, operating revenue grew 3.93% to 661 million USD, while net profit attributable to shareholders decreased 14.70%, despite a 498.91% increase in adjusted net profit Q1 2024 Key Accounting Data and Financial Metrics | Metric | Current Period (USD) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 661,414,927.29 | 3.93% | | Net Profit Attributable to Shareholders | 945,438.85 | -14.70% | | Net Profit Attributable to Shareholders, Excl. Non-recurring Items | 278,834.70 | 498.91% | | Net Cash Flow from Operating Activities | 29,840,865.26 | -73.99% | | Basic Earnings Per Share (USD/share) | 0.0015 | -16.67% | | Weighted Average ROE (%) | 0.07 | Decreased 0.03 percentage points | | Total Assets (vs. End of Previous Year) | 3,522,212,431.34 | 1.02% | | Total Equity Attributable to Shareholders (vs. End of Previous Year) | 1,254,391,915.89 | 0.08% | Q1 2024 Non-recurring Gains and Losses | Non-recurring Item | Current Period Amount (USD) | Notes | | :--- | :--- | :--- | | Government Grants Recognized in Current P&L | 567,389.79 | Other Income | | Other Non-operating Income and Expenses | 99,214.36 | Non-operating Income, Non-operating Expenses | | Total | 666,604.15 | | Analysis of Key Financial Metric Changes Significant changes occurred in multiple financial metrics during the period, including a 449.24% increase in construction in progress, a 68.02% rise in prepayments, a 63.91% decrease in R&D expenses, and a 73.99% drop in net cash flow from operating activities Key Financial Metric Changes and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Notes Receivable | -96.38 | Notes receivable at year-start collected | | Prepayments | 68.02 | Prepayment for open-source software | | Construction in Progress | 449.24 | Workshop project payments recognized | | Other Non-current Assets | 142.84 | Prepayment for workshop project | | Employee Compensation Payable | -97.59 | Employee compensation accrued at end of last year paid | | R&D Expenses | -63.91 | New R&D projects not yet heavily invested in this period | | Financial Expenses | 34.73 | Higher exchange gains from currency fluctuations in the same period last year | | Non-operating Income | 709.02 | More fines received this period | | Net Cash Flow from Operating Activities | -73.99 | Decrease in cash received from goods sales this period | | Net Profit Attributable to Shareholders, Excl. Non-recurring Items | 498.91 | Decrease in government grants exceeded net profit decrease, and prior period base was small | Shareholder Information Major Shareholder Holdings As of the reporting period end, the company had 33,853 common shareholders, with Binzhou Antai Holding Group Co., Ltd. as the largest shareholder at 18.63%, and most top ten shareholders being domestic individuals or unknown entities - As of the reporting period end, the company had a total of 33,853 common shareholders12 Top Ten Shareholder Holdings | Shareholder Name | Shareholder Type | Shareholding (%) | Shares Held (million) | | :--- | :--- | :--- | :--- | | Binzhou Antai Holding Group Co., Ltd. | State-owned Legal Entity | 18.63 | 117.36 | | Zhou Shuang | Domestic Individual | 3.99 | 25.11 | | Hui Da Asset Management Co., Ltd. | State-owned Legal Entity | 3.32 | 20.92 | | Tianjin Longyao Hengda Enterprise Management Consulting Co., Ltd. | Unknown | 1.92 | 12.07 | | Yu Yan | Domestic Individual | 0.79 | 5.01 | | Zhou Yuguang | Domestic Individual | 0.76 | 4.78 | | Lin Shuyue | Domestic Individual | 0.75 | 4.74 | | Xu Zhourong | Domestic Individual | 0.67 | 4.21 | | Li Wei | Domestic Individual | 0.67 | 4.20 | | Agricultural Bank of China Co., Ltd. - Jinyuan Shunan Quality Selection Flexible Allocation Mixed Securities Investment Fund | Unknown | 0.60 | 3.76 | Quarterly Financial Statements Consolidated Financial Statements As of March 31, 2024, consolidated total assets were 3.52 billion USD, with total liabilities of 2.26 billion USD; Q1 total operating revenue grew 3.93% to 661 million USD, but net profit attributable to parent decreased 14.70%, and net operating cash flow dropped 73.99% to 29.84 million USD, indicating collection pressure Consolidated Balance Sheet At period-end, total assets were 3.52 billion USD, up 1.02% from year-end, with 1.72 billion USD in current assets and 1.80 billion USD in non-current assets; total liabilities were 2.26 billion USD, and equity attributable to shareholders was 1.25 billion USD, maintaining a stable structure Consolidated Balance Sheet Key Items | Item | March 31, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Total Current Assets | 1,721,654,690.34 | 1,669,990,437.50 | | Total Non-current Assets | 1,800,557,741.00 | 1,816,815,372.77 | | Total Assets | 3,522,212,431.34 | 3,486,805,810.27 | | Total Current Liabilities | 2,084,677,417.42 | 2,086,051,692.38 | | Total Non-current Liabilities | 179,461,685.75 | 143,543,554.60 | | Total Liabilities | 2,264,139,103.17 | 2,229,595,246.98 | | Total Equity Attributable to Parent Company Shareholders | 1,254,391,915.89 | 1,253,446,477.04 | | Total Shareholders' Equity | 1,258,073,328.17 | 1,257,210,563.29 | Consolidated Income Statement In Q1 2024, operating revenue reached 661 million USD, up 3.93%; however, due to a 63.91% decrease in R&D expenses and a 45.98% drop in government grants, operating profit fell 46.62%, and net profit attributable to parent decreased 14.70% to 0.95 million USD Consolidated Income Statement Key Items | Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Total Operating Revenue | 661,414,927.29 | 636,399,707.18 | | Total Operating Costs | 661,218,766.56 | 636,019,709.56 | | Of which: R&D Expenses | 11,609,822.63 | 32,171,980.27 | | Operating Profit | 763,550.52 | 1,430,359.35 | | Total Profit | 862,764.88 | 1,441,767.06 | | Net Profit | 862,764.88 | 1,316,028.63 | | Net Profit Attributable to Parent Company Shareholders | 945,438.85 | 1,108,326.78 | Consolidated Cash Flow Statement Q1 net cash flow from operating activities significantly decreased 73.99% to 29.84 million USD from 115 million USD last year, mainly due to reduced cash received from sales; net cash outflows from investing and financing activities were 16.81 million USD and 10.11 million USD respectively, with cash and equivalents ending at 125 million USD Consolidated Cash Flow Statement Key Items | Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 29,840,865.26 | 114,717,372.51 | | Net Cash Flow from Investing Activities | -16,813,404.03 | -29,385,809.41 | | Net Cash Flow from Financing Activities | -10,114,602.39 | -51,654,120.40 | | Net Increase in Cash and Cash Equivalents | 2,912,858.84 | 33,677,442.70 | Parent Company Financial Statements The parent company's financial statements reflect its standalone operations; total assets were 3.50 billion USD at period-end, Q1 operating revenue reached 652 million USD, net profit grew 342.1% to 1.94 million USD, but net operating cash flow significantly decreased 88.66% to 10.44 million USD Parent Company Balance Sheet As of the reporting period end, the parent company's total assets were 3.50 billion USD, total liabilities 2.23 billion USD, and shareholders' equity 1.27 billion USD, maintaining a stable asset-liability structure consistent with consolidated figures Parent Company Balance Sheet Key Items | Item | March 31, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Total Assets | 3,499,204,000.83 | 3,469,692,965.01 | | Total Liabilities | 2,225,651,677.12 | 2,198,082,491.62 | | Total Shareholders' Equity | 1,273,552,323.71 | 1,271,610,473.39 | Parent Company Income Statement In Q1 2024, parent company operating revenue grew 6.22% to 652 million USD; despite significantly reduced R&D expenses, effective cost control led to operating profit reaching 1.85 million USD, up 257.5%, and net profit increasing 342.1% to 1.94 million USD, indicating improved profitability Parent Company Income Statement Key Items | Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Operating Revenue | 651,674,726.68 | 613,501,912.63 | | Operating Profit | 1,847,308.11 | 516,653.79 | | Total Profit | 1,941,850.32 | 516,753.12 | | Net Profit | 1,941,850.32 | 439,240.15 | Parent Company Cash Flow Statement Q1 parent company net cash flow from operating activities significantly decreased 88.66% to 10.44 million USD from 92.04 million USD last year, primarily due to reduced sales collections; both investing and financing activities resulted in net cash outflows, leading to a period-end cash and equivalents balance of 39.91 million USD Parent Company Cash Flow Statement Key Items | Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 10,437,492.33 | 92,038,433.45 | | Net Cash Flow from Investing Activities | -16,813,404.03 | -29,385,809.41 | | Net Cash Flow from Financing Activities | -19,642,604.63 | -41,280,572.07 | | Net Increase in Cash and Cash Equivalents | -26,018,516.33 | 21,372,051.97 |