Jiangsu Lanfeng Bio-chemical Co., Ltd. (stock code: 002513) is an enterprise that specializes in the field of bio-chemicals. The company is mainly engaged in the research and development, production, and sales of pesticides, pharmaceutical intermediates, and related products. Lanfeng Bio-chemical has high visibility and market share in both domestic and foreign markets. In the first quarter of 2024, the company released its latest financial report, and below is a detailed analysis of its financial data.

From the balance sheet data, as of the end of the first quarter of 2024, Lanfeng Bio-chemical's total assets were 3.284 billion yuan, a decrease of 3.41% compared to the end of the previous year's 3.4 billion yuan. This is mainly due to the fact that the construction in progress has decreased from 542 million yuan to 400 million yuan, reflecting the conversion of some construction projects into fixed assets. At the same time, the company's total liabilities decreased from 3.149 billion yuan at the end of the previous year to 3.073 billion yuan, a decrease of 2.40%. Although liabilities have decreased, due to the decrease in total assets, the asset-liability ratio has increased from 92.63% to 93.59%. In addition, the owner's equity attributable to shareholders of the listed company decreased from 252.2 million yuan to -31 million yuan. The main reason was the operating loss of the period.

In terms of profit data, Lanfeng Bio-chemical's operating income was 378 million yuan, a slight decrease of 0.94% year-on-year. However, the net profit attributable to shareholders of the listed company was -30.51 million yuan, a decrease of 107.17% year-on-year. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -33.15 million yuan, a decrease of 61.79% year-on-year. The gross profit margin decreased from 3.66% in the same period of the previous year to 1.23%, indicating that the company is facing greater pressure in cost control. Sales expenses, research and development expenses, and financial expenses increased by 112.19%, 923.42%, and 312.19% year-on-year, respectively, indicating that the company's market expansion and research and development investment have increased significantly, but also led to the rise in costs.

In terms of cash flow data, Lanfeng Bio-chemical's net cash flow from operating activities in the first quarter of 2024 was -98.68 million yuan, a decrease of 194.98% year-on-year. Although cash received from the sale of goods and services increased by 165.34% year-on-year, cash paid for the purchase of goods and services increased by 294.48% year-on-year, leading to a significant increase in operating cash outflow. In addition, cash paid to and on behalf of employees increased by 92.10% year-on-year, further exacerbating the tight cash flow situation. In terms of investment activities, cash paid for the purchase of fixed assets, intangible assets, and other long-term assets increased by 1625.68% year-on-year, mainly due to the increase in investment expenditure of the current subsidiary projects. In terms of financing activities, cash received from borrowing increased by 76.48% year-on-year, reflecting the company's use of borrowing to ease financial pressure.

Overall, Lanfeng Bio-chemical faced significant operating pressure in the first quarter of 2024. Although operating income remained relatively stable, net profit dropped significantly, the asset-liability ratio increased, and cash flow was poor. The company's investment in market expansion and research and development has increased significantly, but it has also led to an increase in costs. In the future, Lanfeng Bio-chemical needs to take more effective measures in cost control and cash flow management to cope with market competition and operational risks.