Shaanxi Fenghuo Electronics Co., Ltd. (stock code: 000561) is an enterprise that focuses on electronic information technology research and development and production. The company's main products include communication equipment, electronic components, etc., which are widely used in national defense, communication, and industrial automation fields. In the first quarter of 2024, Fenghuo Electronics released its latest financial report, showing significant changes in the company's financial indicators.
In terms of asset and liability data, as of March 31, 2024, Fenghuo Electronics' total assets were 4.04 billion yuan, a decrease of 6.24% from the end of the previous year of 4.308 billion yuan. This decrease was mainly due to a significant decrease in monetary funds, which decreased by 50.69%, from 616 million yuan to 304 million yuan, mainly due to the maturity payment of notes payable during the reporting period and the payment of various taxes. At the same time, the company's prepayments increased by 30.79% to 9.435 million yuan, reflecting an increase in the company's prepayment expenditures in the procurement area. In terms of liabilities, the total liabilities at the end of the period were 2.073 billion yuan, a decrease of 8.86% from the beginning of the period of 2.275 billion yuan. The asset-liability ratio has decreased from 52.8% to 51.32%, indicating that the company has reduced its debt burden to a certain extent.
In terms of profit data, Fenghuo Electronics' performance is not optimistic. In the first quarter of 2024, the company achieved revenue of 139 million yuan, a year-on-year decrease of 42.24%. This significant decline was mainly due to a decrease in the number of products delivered during the reporting period compared to the same period last year. The net income attributable to shareholders of the listed company was -5.871 million yuan, which further expanded the loss compared to -1.888 million yuan in the same period last year. The net profit after deducting non-recurring gains and losses was -6.233 million yuan, a significant decrease year-on-year. The gross profit margin also decreased from 40.94% in the same period last year to 25.89%, indicating that the company is facing greater challenges in cost control.
In terms of cash flow data, Fenghuo Electronics is also facing severe tests. The net cash flow from operating activities was -310 million yuan, a significant deterioration from -147 million yuan in the same period last year. This was mainly due to a decrease in cash received from sales of goods and services, and an increase in cash paid for purchases of goods and services received. The net cash flow from financing activities was 1.21 million yuan, which improved compared to -7.143 million yuan in the same period last year, mainly due to a decrease in cash paid for debt repayment during the reporting period.
Overall, Fenghuo Electronics faced great operating pressure in the first quarter of 2024. Significant declines in revenue and net income, and a deterioration in cash flow reflect that the company faces significant challenges in market competition and cost control. In the future, the company needs to take effective measures to improve its product delivery capability, optimize its cost structure, and strengthen its cash flow management to cope with the current operating difficulties.