Guangdong Enpack Packaging Co., Ltd. (stock code: 002846) is a company specializing in the production of packaging materials. The company is committed to providing customers with high-quality packaging solutions, covering multiple industries such as food, beverage, and daily chemicals. In the first quarter of 2024, Enpack released its latest financial report data, showing the company's performance in multiple financial indicators.

From the balance sheet data, as of March 31, 2024, Enpack's total assets were RMB 3.246 billion, an increase of 5.84% from RMB 3.067 billion at the end of the previous year. This growth was mainly due to the increase in construction in progress, with a balance of RMB 350 million at the end of the period, an increase of 63.50% from RMB 214 million at the beginning of the period, reflecting the company's increasing investment in fixed assets. At the same time, the company's total liabilities also increased, reaching RMB 1.77 billion at the end of the period, an increase of 11.21% from RMB 1.592 billion at the beginning of the period. The debt-to-asset ratio rose from 51.9% to 54.53%, indicating that while expanding its business, the company's leverage has also increased.

In terms of profit data, Enpack's performance has significantly improved. In the first quarter of 2024, the company achieved operating income of RMB 460 million, a year-on-year increase of 9.55%. The net profit attributable to shareholders of the listed company was RMB 13.4 million, compared to -RMB 37.4 million in the same period last year, an increase of 135.87%. Although the net profit after deducting non-recurring gains and losses was still negative, the loss narrowed significantly, indicating an improvement in the company's main business profitability. The gross margin increased from 11.24% in the same period last year to 11.85%, and the net profit margin increased from -1.01% to 0.17%, indicating that the company has made improvements in cost control and profitability.

In terms of cash flow, Enpack's net cash flow from operating activities was RMB 46.61 million, a significant improvement from -RMB 1.89 million in the same period last year, an increase of 2,560.48%. This change was mainly due to the increase in receivables brought about by the increase in revenue and the adjustment of bank acceptance bills and supplier settlement methods. In addition, the net cash flow from investing activities was -RMB 142 million, an increase from -RMB 8.689 million in the same period last year, mainly due to the increase in cash paid for the purchase and construction of fixed assets and intangible assets. The net increase in cash and cash equivalents was -RMB 15.8 million, an improvement from -RMB 22.84 million in the same period last year, reflecting the company's optimization of cash flow management in operating and financing activities.

Overall, Enpack's financial performance in the first quarter of 2024 was positive. Both operating income and net profit achieved significant growth, and operating cash flow improved significantly, indicating that the company has achieved certain results in expanding its business and controlling costs. However, the increase in leverage and the increase in net cash flow from investing activities also suggest that the company needs to pay more attention to financial risk management in the future.