Sundiro Holding Co., Ltd. (Stock Code: 000571), abbreviated as Sundiro Holdings, mainly engages in two major industries, coal and beef products. As an important energy resource in China, the country's raw coal production reached 4.71 billion tons in 2023, a year-on-year increase of 3.4%. However, affected by the increase in imported coal volume and the slowdown in demand growth, the tight balance of coal supply has been broken, and the coal price has shown a weak downward trend. In terms of the beef product industry, with the development of China's economy and the increasing income of residents, the demand for beef continues to grow, but the production of local beef is insufficient and relies on imports. In 2023, the cumulative import of beef in mainland China was 2.737 million tons, an increase of 47,000 tons year-on-year, but the import price declined. The company needs to comply with relevant industry information disclosure requirements and actively respond to external factors that affect industry development.

As of March 31, 2024, the total assets of Sundiro Holdings are CNY 2.814 billion, a decrease of 2.27% from CNY 2.879 billion at the beginning of the period. The total liabilities are CNY 1.696 billion, a decrease of 3.72% from CNY 1.762 billion at the beginning of the period. The asset-liability ratio decreased from 61.18% at the beginning of the period to 60.27%. Although the asset-liability ratio has decreased, the company has shown a certain trend of decrease in both assets and liabilities, reflecting the pressure on asset management and liability control.

In terms of profit, Sundiro Holdings' operating income was CNY 205 million, a year-on-year decrease of 32.69%. Operating profit was CNY -60.1 million, a significant year-on-year decrease. Net profit was CNY -130.1 million, while it was CNY 53 million in the same period of the previous year. The net profit margin decreased from 1.74% in the same period of the previous year to -6.34%. The gross profit margin also decreased from 36.6% in the same period of the previous year to 34.03%. The return on net assets (ROE) decreased from 0.52% at the beginning of the period to -1.16%. These data indicate that the company faces significant challenges in terms of profitability, particularly under the dual pressures of declining coal prices and beef import prices, with significantly weakened profitability.

In terms of cash flow, the net cash flow from operating activities was CNY -215.8 million, a year-on-year decrease of 117.44%. The subtotal of cash inflows from operating activities was CNY 281 million, a year-on-year decrease of 28.7%. The subtotal of cash outflows from operating activities was CNY 303 million, a year-on-year increase of 11.86%. The net cash flow from investing activities was CNY -167.4 million, a year-on-year decrease of 12.61%. The net cash flow from financing activities was CNY -87.8 million, a year-on-year decrease of 103.69%. The net increase in cash and cash equivalents was CNY -47.1 million, a year-on-year decrease of 147.01%. These data indicate that the company's cash flow situation in operating activities is not good, mainly due to the decrease in income and the increase in taxes. In addition, the cash flow from investment and financing activities also performed poorly, further exacerbating the company's cash flow pressure.

In summary, Sundiro Holdings faces multiple challenges in the first quarter of 2024, including a decrease in assets and liabilities, a significant decline in profitability, and a deterioration of cash flow situation. The company needs to take effective measures in future operations to optimize asset management, enhance profitability, and improve cash flow situation, in order to cope with changes in the external market environment and internal operating pressure.