ST Zhongjia (stock code: 000889) is mainly engaged in the intelligent transmission of information and maintenance of communication networks, covering two different industries. In terms of intelligent transmission of information, especially in the enterprise SMS business, the company provides services such as identity verification, mobile phone number binding, transaction confirmation, logistics reminders, etc., which are widely used in e-commerce, third-party payment, IoT economy, and logistics express delivery industries. Although the national mobile SMS business volume and revenue declined in 2023, corporate SMS demand is still increasing with the development of the new Internet economy, and it is expected that it will continue to grow rapidly in the future. In terms of communication network maintenance, the company is committed to supporting China's network power and the construction of a digital China, and promoting the deep integration of the digital economy with the real economy.

Judging from balance and liability data, ST Zhongjia's total assets were 873 million yuan at the end of the first quarter of 2024, a decrease of 3.55% from 905 million yuan at the beginning of the period. Total liabilities at the end of the period were $743 million, a decrease of 3.38% from $769 million at the beginning of the period. Goodwill remained unchanged, with a balance of 110 million yuan at the end of the period. The balance ratio rose from 84.98% at the beginning of the period to 85.14% at the end of the period, showing that while the company's assets declined, its liabilities also decreased, but the balance ratio increased slightly, indicating an increase in the company's financial leverage. Owners' equity attributable to shareholders of listed companies was 130 million yuan at the end of the period, a decrease of 4.59% from the 136 million yuan at the beginning of the period.

In terms of profit data, ST Zhongjia's revenue during the reporting period was 364 million yuan, an increase of 2.21% over 356 million yuan in the same period last year. Net profit attributable to shareholders of listed companies was -6.23 million yuan, an improvement over -6.86 million yuan in the same period last year, an increase of 9.19%. Net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was -6.07 million yuan, up 29.08% from -8.56 million yuan in the same period last year. Although net profit is still negative, the margin of loss has narrowed, showing that the company has achieved certain results in controlling costs and improving efficiency.

In terms of cash flow data, net cash flow from operating activities was -86.51 million yuan, a significant improvement of 51.13% from -177 million yuan in the same period last year. The subtotal cash inflow from operating activities was $359 million, an increase of 2.84% over the same period last year of $349 million. The subtotal cash outflow from operating activities was $445 million, a decrease of 15.33% compared with $526 million in the same period last year. This indicates that the company's cash outflow from operating activities has decreased and cash flow management has improved, but the overall situation is still negative, and cash flow management needs to be further optimized.

Overall, ST Zhongjia's financial performance in the first quarter of 2024 showed some signs of improvement. Although both assets and liabilities have decreased, the balance ratio has risen slightly, indicating that the company still needs to carefully manage financial leverage. In terms of profit, although it is still in a state of loss, the margin of loss has narrowed, showing the company's efforts to control costs and improve efficiency. In terms of cash flow, net cash flow from operating activities has improved significantly, but there is still a need to further optimize cash flow management. In the future, the company needs to continue to pay attention to changes in market demand, enhance business profitability, and optimize financial structures to achieve sustainable development.