Guangdong Shirong Zhaoye Co., Ltd. (stock code: 002016) is a company mainly engaged in real estate development and sales. The company is committed to providing customers with high quality residential and commercial real estate products. In the first quarter of 2024, Shirong Zhaoye released its latest financial report. This article will analyze and discuss the balance and liability data, profit data, and cash flow data in this report in detail.

At the end of the reporting period, Shirong Zhaoye's total assets were 6.171 billion yuan, a decrease of 6.62% from 6.609 billion yuan at the end of the previous year. The main reasons for the decline in assets include a 70.52% reduction in monetary capital, mainly due to payment of land value-added tax settlement tax in Cuihuyuan Phase II North District. In addition, transactional financial assets decreased by 60 million yuan, notes receivable decreased by 95.15%, receivables financing decreased by 2.9 million yuan, and other illiquid assets decreased by 63.28%. Although advance payments and other current assets increased by 134.65% and 56.06%, respectively, overall assets showed a downward trend. In terms of liabilities, the balance at the end of the period was $1,301 million, down 25.85% from the initial period of $1,754 billion. The balance ratio fell to 21.07% from 26.54% at the beginning of the period, indicating that the company reduced its financial leverage to a certain extent.

In terms of profit data, Shirong Zhaoye's revenue for the reporting period was 254 million yuan, a decrease of 15.33% from 300 million yuan in the same period last year. Net profit attributable to shareholders of listed companies was 11.88 million yuan, a year-on-year decrease of 80.48%. Net profit after deducting non-recurring profit and loss was 11.55 million yuan, a year-on-year decrease of 80.71%. Gross margin fell to 31.06% from 46.5% in the same period last year, and net margin fell from 21.34% to 6.74%. Operating costs increased to 175 million yuan, while operating profit decreased to 25.48 million yuan from 84.35 million yuan in the same period last year. Management expenses increased by 50.75%, return on investment decreased by 86.34%, and credit impairment losses decreased by 76.33%. Together, these factors have led to a sharp decline in net profit.

In terms of cash flow, the net cash flow from Shirong Zhaoye's operating activities during the reporting period was -690 million yuan, a decrease of 333.99% from -159 million yuan in the same period last year. The subtotal cash inflow from operating activities was $525 million, a decrease of 6.47% over the same period last year. Meanwhile, the cash outflow subtotal increased to $1,216 billion, an increase of 68.65% over the previous year. The main reason is the payment of land value-added tax settlement tax in the northern district of Cuihuyuan Phase II. Net cash flow from investment activities decreased by 127.33% compared to the same period last year, mainly due to increased investment in Wanrong Commercial Center - Cooperative Business and Hotel projects under construction.

In summary, Shirong Zhaoye faced significant financial pressure in the first quarter of 2024. Although the company has achieved certain results in reducing debt, the significant decline in operating income and net profit, as well as a drastic reduction in net cash flow from operating activities, indicate that the company still needs further optimization and improvement in the market environment and internal management. In the future, Shirong Zhaoye will need to take more active measures to increase sales revenue, control costs, and optimize cash flow management to achieve sustainable development.