Construction Vehicle B Company (stock code: 200054) is an enterprise focusing on the production of automobile air conditioning compressors. It has more than 20 years of technology accumulation and mainly uses rotary vane technology. Facing rapid changes in the automotive industry, especially the rapid expansion of the NEV market, the company is actively adjusting its strategy. In addition to stabilizing the scale of traditional fuel vehicle compressor products, it is also vigorously promoting R&D and market expansion of new technologies such as electric scroll compressors. Although rotary vane technology occupies an important position in the traditional fuel vehicle market, with the spread of new energy vehicles, scroll compressors have become the focus of future development due to their high efficiency and good compatibility with high-speed motors. The company will keep up with industry trends and strive to maintain competitiveness in technology iteration, quality optimization and market expansion.

The total assets of Jianche B in the first quarter of 2024 were 856 million yuan, a decrease of 1.88% from the beginning of the period of 882 million yuan. Total liabilities amounted to $826 million, a slight decrease from $829 million at the beginning of the period. Despite the reduction in liabilities, the balance ratio rose from 94.99% at the beginning of the period to 96.53%, indicating that while the company's assets declined, the reduction in liabilities was less than that of assets, leading to an increase in balance ratio. Owners' equity attributable to shareholders of listed companies fell by 32.04% from 43.67 million yuan at the beginning of the period to 29.68 million yuan, mainly due to negative net profit in the first quarter.

In terms of profit, Jianshe B's revenue for the reporting period was 137 million yuan, an increase of 42.68% over 95.87 million yuan in the same period last year. Operating costs were 129 million yuan, an increase of 37.78% over 93.42 million yuan in the same period last year. The gross margin increased from 2.56% in the same period last year to 5.9% in the reporting period, showing that the company has achieved certain results in controlling costs and improving profitability. Despite this, net profit attributable to shareholders of listed companies was still negative, at -14.51 million yuan, but compared to -26.72 million yuan in the same period last year, the loss margin narrowed by 45.71%. Net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss also increased from -27.58 million yuan in the same period last year to -14.82 million yuan, indicating a decrease in the company's losses in the main business.

In terms of cash flow, the net cash flow from Jianche B's operating activities during the reporting period was 22.36 million yuan, compared to -16.52 million yuan in the same period last year, a significant increase of 235.37% over the previous year. The total cash inflow from operating activities was 115 million yuan, an increase of 52.35% over 75.45 million yuan in the same period last year. This was mainly due to the 41.54% year-on-year increase in sales of the company's automotive air conditioning compressor products. At the same time, the subtotal cash outflow from operating activities was 92.59 million yuan, a slight increase from 91.97 million yuan in the same period last year, but the increase was small, indicating that the company has also achieved certain results in controlling expenses.

In summary, Jianshe B's financial performance in the first quarter of 2024 showed some signs of improvement. Although net profit is still negative, significant increases in operating income and gross margin, as well as significant improvements in net cash flow from operating activities, indicate that the company has made some progress in market expansion and cost control. With the rapid development of the NEV market, the company's investment in electric scroll compressor technology is expected to bring more growth opportunities in the future. However, the rise in balance ratio and the decline in net assets also suggest that the company needs to continue to optimize its financial structure and enhance profitability to meet the challenges brought about by market competition and technological changes.