Net263 Ltd. (stock code: 002467) is an enterprise that focuses on communications services, dedicated to providing customers with high-quality cloud networking, communication services, and related solutions. With the continuous growth of market demand, Net263 has achieved significant results in the field of network communications and has shown steady performance in the capital markets.

At the end of this reporting period, Net263's total assets were RMB 2.366 billion, an increase of 1.82% compared to the end of the previous year of RMB 2.323 billion. The owner's equity attributable to shareholders of the listed company was RMB 1.845 billion, an increase of 1.56% compared to the end of the previous year of RMB 1.816 billion. The debt-to-asset ratio has increased from 16.94% at the end of the previous year to 17.13%, indicating that the company's liability level has also increased while expanding the scale of its assets. Goodwill remained stable, with a balance of RMB 570 million at the end of the period, slightly higher than the RMB 570 million at the beginning of the period. Overall, the company's asset structure is relatively stable, and the debt-to-asset ratio is at a reasonable level. The stability of goodwill also shows that the company has been relatively successful in mergers and acquisitions.

In terms of profits, Net263's operating income for this reporting period was RMB 258 million, an increase of 23.23% over the same period last year of RMB 209 million. The net income attributable to shareholders of the listed company was RMB 2.735 million, an increase of 37.89% over the same period last year of RMB 1.983 million. The net income after deducting non-recurring gains and losses was RMB 1.793 million, a significant increase of 102.93% over the same period last year of RMB 0.884 million. The gross profit margin decreased from 47.25% in the same period last year to 40.69%, but the net profit margin increased from 10.67% to 11.56%. Operating profit was RMB 3.529 million, an increase of 65.48% over the same period last year of RMB 2.132 million. These data show that the company has significantly improved its profitability through effective cost control and management measures while increasing its revenue.

In terms of cash flow, Net263's net cash flow from operating activities for this reporting period was RMB 41.84 million, an increase of 108.67% compared to the same period last year of RMB 20.05 million. The subtotal of cash inflows from operating activities was RMB 262 million, an increase of 12.84% compared to the same period last year of RMB 233 million, while the subtotal of cash outflows was RMB 221 million, an increase of 3.79% compared to the same period last year of RMB 213 million. The significant increase in the operating net cash flow of the company's cloud networking-related business indicates that its core business's cash flow generation ability has been effectively improved.

Overall, Net263's financial performance in the first quarter of 2024 is quite impressive. By improving its management level, controlling cost and expenses, and disposing of investment real estate, the company has significantly improved its profitability and cash flow. Although the gross profit margin has decreased, the net profit margin and return on net assets have increased, indicating that the company has achieved good results in increasing revenue and controlling costs. In the future, Net263 is expected to continue to optimize its business structure and improve its operational efficiency, further enhancing its market competitiveness and financial stability.