Shenzhen Kingsino Technology (stock code: 002548) is an enterprise that focuses on feed production. It was established against the background of the rapid development of China's feed industry. Since the 1980s, China's feed industry has experienced significant growth. The output of feed jumped to the first place in the world in 2011 and has maintained this position for 13 consecutive years. Pig feed is the largest sub-category in China's commodity feed industry. Benefiting from economic growth, changes in dietary structure and policy support, the sales volume of pig feed has grown rapidly. In 2023, the output of pig feed accounted for 46.56% of the national industrial feed output. Currently, the feed industry has entered a period of stock competition, and enterprises are gradually focusing on high-quality development, and technological innovation is accelerating. In this context, Shenzhen Kingsino Technology is committed to improving product quality and competitiveness through accurate formulas, low-protein rations and sophisticated processing technology.

The first quarter report of Shenzhen Kingsino Technology in 2024 showed that the year-end total asset balance was 5.782 billion yuan, a decrease of 3.36% from the beginning of the period of 5.983 billion yuan. The period-end total liability balance was 4.259 billion yuan, a decrease of 3.88% from the beginning of the period of 4.431 billion yuan. The debt-to-asset ratio at the end of the period was 73.66%, slightly lower than the 74.06% at the beginning of the period. This indicates that the company has achieved certain results in controlling liabilities and optimizing the asset-liability structure. The period-end balance of goodwill was 354.2 million yuan, a slight increase from the 347.4 million yuan at the beginning of the period, showing the company's sustained investment in mergers and acquisitions integration.

In terms of profits, the operating income of Shenzhen Kingsino Technology in this reporting period was 1.051 billion yuan, a decrease of 3.55% from the same period last year of 1.089 billion yuan. Although operating income has declined, operating costs have also decreased from 1.049 billion yuan in the same period last year to 977 million yuan in this reporting period, a decrease of 6.82%. This has raised the gross margin from 3.72% in the same period last year to 6.97% in this reporting period. The net profit attributable to shareholders of the listed company was a loss of 5.206 million yuan, a decrease of 47.45% from a loss of 9.905 million yuan in the same period last year. The net profit attributable to shareholders of the listed company, after deducting non-recurring gains and losses, was a loss of 4.566 million yuan, a decrease of 51.85% from a loss of 9.483 million yuan in the same period last year. These data indicate that the company has made improvements in cost control and profitability.

In terms of cash flow, the net cash flow generated from operating activities of Shenzhen Kingsino Technology in this reporting period was -142 million yuan, an improvement from -172 million yuan in the same period last year, an increase of 17.53%. The subtotal of operating cash inflows was 976 million yuan, a decrease of 6.31% from the same period last year of 1.042 billion yuan. The subtotal of operating cash outflows was 1.118 billion yuan, a decrease of 7.89% from the same period last year of 1.214 billion yuan. This indicates that the company's cash outflow in operating activities has decreased, but further optimization of cash flow management is still necessary.

Overall, Shenzhen Kingsino Technology achieved certain results in the first quarter of 2024 by effective cost control and optimizing the asset-liability structure. Although operating income has declined, both gross margin and net loss have been improved, showing the company's efforts to improve profitability. At the same time, the cash flow situation has also improved, but further optimization is still needed. In the future, Shenzhen Kingsino Technology should continue to focus on high-quality development and improve competitiveness through technological innovation and sophisticated management to achieve better financial performance.