Zhejiang Founder Motor Co., Ltd. (Stock Code: 002196) is a high-tech enterprise specializing in the research and development, production, and sales of electric machines and their control systems. The company is committed to providing customers with efficient, energy-saving, and environmentally friendly electric products and solutions, which are widely used in household appliances, automobiles, industrial automation, and other fields. In the first quarter of 2024, Founder Motor released the latest financial report, and this article will provide a detailed analysis of its financial data.
From the balance sheet data, the total assets of Founder Motor reached RMB 4.18 billion at the end of this reporting period, an increase of 2.51% from RMB 4.077 billion at the end of the previous year. This growth is mainly due to the company's effective strategies in asset management and investment. However, the company's liabilities also increased from RMB 2.667 billion at the end of the previous year to RMB 2.775 billion at the end of this reporting period, an increase of 4.08%. This led to the company's debt-to-asset ratio rising from 65.41% to 66.41%, showing that as the company expands its business, its debt pressure is also increasing. In addition, the company's goodwill remained unchanged at RMB 6.628 million, indicating that there were no significant mergers or acquisitions during the reporting period.
In terms of profit data, Founder Motor's performance is not satisfactory. Although the operating income increased by 9.11% year-on-year from RMB 445 million to RMB 486 million, the net profit attributable to shareholders of the listed company decreased significantly from RMB 81.7 million in the same period of the previous year to negative RMB 83.4 million, a decrease of 202.04%. The net profit after deducting non-recurring gains and losses also decreased from negative RMB 40.1 million to negative RMB 123.9 million, a decrease of 209.06%. The gross margin and net margin decreased from 16.36% and 1.87% in the same period of the previous year to 13.34% and -1.73% in this reporting period, respectively. These data indicate that the company faces considerable challenges in cost control and profitability while increasing revenue.
In terms of cash flow, the net cash flow from operating activities of Founder Motor was RMB 127 million, a decrease of 37.67% from RMB 204 million in the same period of the previous year. The subtotal of cash inflow from operating activities was RMB 584 million, a decrease of 19.61% from RMB 726 million in the same period of the previous year, while the subtotal of cash outflow from operating activities was RMB 457 million, a decrease of 12.56% from RMB 522 million in the same period of the previous year. These data indicate that the company's cash flow management in operating activities has certain pressure and may need to further optimize its cash flow management strategies.
In summary, Founder Motor's financial performance in the first quarter of 2024 showed a trend of revenue growth but declining profitability. Although total assets increased, liabilities also rose, leading to an increase in the debt-to-asset ratio. The significant decrease in net profit and the decrease in cash flow indicate that the company needs to further improve its cost control and cash flow management. In the future, Founder Motor needs to focus on improving profitability and cash flow management while maintaining revenue growth to achieve sustainable development.