Hubei Guochuang Hi-Tech Material Co., Ltd. (stock code: 002377) is an enterprise mainly engaged in the research and development, production, and sales of high-performance asphalt materials and related products. The company is committed to providing customers with high-quality road construction and maintenance solutions. In the first quarter of 2024, the company released its latest financial report, showing significant changes in several financial indicators.

At the end of this reporting period, Guochuang Hi-Tech's total assets were 1.033 billion yuan, an increase of 1.46% compared to the end of the previous year of 1.018 billion yuan. This growth was mainly due to the increase in monetary funds and inventory. Monetary funds increased from 574.1 million yuan at the beginning of the year to 831 million yuan at the end of the year, an increase of 44.76%; inventory increased from 50.73 million yuan to 84.08 million yuan, an increase of 65.73%. However, the company's liabilities have also increased. The total liabilities at the end of the year was 497 million yuan, an increase of 4.34% compared to the beginning of the year’s 476 million yuan. The asset-liability ratio rose from 46.79% at the beginning of the year to 48.11% at the end of the year, indicating that the company's pressure on liabilities has increased.

In terms of profit data, Guochuang Hi-Tech's operating income has dropped significantly, from 227 million yuan in the same period last year to 8.082 million yuan in this reporting period, a decrease of 64.43%. This decline was mainly due to a decrease in asphalt sales and the absence of real estate intermediary service income. Although operating costs also correspondingly decreased by 63.10%, gross profit margin still dropped from 6.26% in the same period last year to 2.75% in this reporting period. The net income attributable to shareholders of the listed company was -0.586 million yuan, a decrease of 84.12% compared to the same period last year of -3.691 million yuan. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses also improved, decreasing from -2.71 million yuan in the same period last year to -0.588 million yuan in this reporting period, an increase of 78.31%.

In terms of cash flow, Guochuang Hi-Tech's net cash flow from operating activities was 23.5 million yuan, a significant improvement compared to -477.4 million yuan in the same period last year, with an increase of 104.92%. This change was mainly due to the significant reduction in net inflow of cash received from sales of goods and net outflow of cash paid to purchase goods. Although the net cash flow from investing activities decreased from 67.7 million yuan in the same period last year to -17,700 yuan in this reporting period, overall, the company's cash flow situation has improved.

In summary, Guochuang Hi-Tech faced challenges of significant decline in revenue and gross profit margin in the first quarter of 2024, but showed certain bullish signals in the reduction of net loss and improvement of cash flow from operating activities. The company needs to continue to optimize cost control and improve operational efficiency in future operations to cope with changes in the market environment and competitive pressure.