Anche Technologies (stock code: 300572) is a manufacturing enterprise that specializes in motor vehicle inspection systems, belonging to the 'Special Instrument Manufacturing' industry. The company not only provides a wide range of traffic detection equipment and system solutions but also operates the new generation of smart inspection station services. Since 2018, Anche Technologies has actively laid out the motor vehicle inspection operation service market through capital operations such as mergers and acquisitions, promoting branding chain operations to increase market share and service quality. With the promotion of the national 'Dual-Carbon' strategy, new energy vehicle inspection has become a new growth hotspot, and Anche Technologies has strong competition advantages in this field with promising development prospects in the future.

As of the end of the first quarter of 2024, Anche Technologies' total assets were RMB 2.833 billion, a decrease of 1.29% from RMB 2.87 billion at the beginning of the period. Total liabilities amounted to RMB 728 million, a decrease of 2.87% compared to RMB 749 million at the beginning of the period. Goodwill increased from RMB 319 million at the beginning of the period to RMB 350 million at the end of the period, an increase of 9.49%. The asset-liability ratio decreased from 26.1% at the beginning of the period to 25.68%, indicating that the company has achieved some success in controlling liabilities.

In terms of profits, Anche Technologies' operating income was RMB 125 million, a year-on-year increase of 12.78%. However, the gross profit margin decreased from 38.85% in the same period last year to 34.58%, and the net profit margin decreased from 3.35% to -0.55%. Operating profit was only RMB 1.631 million, a significant decrease from RMB 35.6 million in the same period last year. The net profit was -RMB 6.899 million, while it was RMB 37.1 million in the same period last year, indicating that the company faces significant challenges in terms of profitability. The net profit attributable to shareholders of the listed company was RMB 0.1542 million, a year-on-year decrease of 96.32%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -RMB 35.5 million, a year-on-year decrease of 2,113.97%. Basic earnings per share and diluted earnings per share were both RMB 0.0007, a year-on-year decrease of 96.50%.

In terms of cash flow, Anche Technologies' net cash flow from operating activities was -RMB 20.65 million, an improvement from -RMB 39.04 million in the same period last year, an increase of 47.11%. The subtotal of cash inflows from operating activities was RMB 118 million, a decrease of 7.67% from RMB 128 million in the same period last year. The subtotal of cash outflows from operating activities was RMB 139 million, a decrease of 16.88% from RMB 167 million in the same period last year. Cash paid to purchase goods and services was RMB 46.11 million, a decrease of 37.70% from RMB 74 million in the same period last year. Various taxes paid were RMB 7.48 million, a decrease of 35.07% from RMB 11.52 million in the same period last year. The cash flow statement shows that the company has made some progress in controlling cash outflows but still needs to pay attention to the overall cash flow situation.

In summary, Anche Technologies' financial performance in the first quarter of 2024 showed some pressure. Although operating income increased, the decrease in gross profit margin and net profit margin as well as the loss in net profit indicate that the company faces challenges in terms of profitability. The decrease in the asset-liability ratio and the improvement in cash flow are positive signals, but the overall financial health still needs further attention. In the future, the company needs to take more effective measures to improve profitability and optimize cash flow management to cope with the challenges brought by market competition and industry changes.