Jiangxi Yuean New Material Co., Ltd. (stock code: 688786) is a professional enterprise engaged in the research and development, production and sales of high-performance metal powder materials. The company's main products include carbonyl iron powder, atomized alloy powder and metal injection molding feed, which are widely used in consumer electronics, autos, medical and other fields. In the first quarter of 2024, Yuean New Material achieved a relatively stable financial performance in the context of a recovering market environment.

At the end of this reporting period, Yuean New Material's total assets were RMB 885 million, an increase of 1.03% from RMB 876 million at the end of the previous year. This growth was mainly attributed to the accumulation of company profits and the increased investment in the Ningxia project. Specifically, the first demonstration line of the "Annual Production of 100,000 Tons of Metal Soft Magnetic Micron Powder Project" in Ningxia, where the company is located, is progressing according to plan. In addition, the company's asset-liability ratio decreased from 18.94% at the end of the previous year to 17.87%, showing that the company has achieved certain results in controlling liabilities and has a more stable financial structure.

In terms of profit, Yuean New Material achieved operating revenue of RMB 88.12 million in this reporting period, an increase of 11.31% year-on-year. This growth was mainly due to the recovery of the consumer electronics market and the increase in sales of the company's products in the field of precision structural parts. Specific products such as carbonyl iron powder, atomized alloy powder and metal injection molding feed have all seen increased sales. Although operating revenue has increased, the net income attributable to shareholders of the listed company was only RMB 16.78 million, an increase of 2.42% year-on-year. This growth rate was lower than the growth rate of operating revenue, mainly due to the fact that the output of the fundraising project was still climbing, leading to a year-on-year increase in unit fixed cost of products, which in turn made the growth rate of cost of goods sold higher than that of operating revenue.

The net cash flow generated from operating activities of Yuean New Material in this reporting period was RMB 71.9 million, compared to -RMB 65 million in the same period last year, showing significant improvement. This change was mainly due to the increase in sales revenue, the increase in receipts, and the reduction of cash paid for purchasing commodities and receiving labor services by controlling inventory. Specifically, the subtotal of operating cash inflow in this reporting period was RMB 113 million, an increase of 9.47% year-on-year, while the subtotal of operating cash outflow was RMB 106 million, a decrease of 3.54% year-on-year. These data indicate that the company has achieved significant results in cash flow management.

In summary, Yuean New Material demonstrated stable financial performance and good operational results in the first quarter of 2024. Despite the cost pressure brought about by the climbing output of the fundraising project, the company achieved double growth in operating revenue and cash flow through market development and refinement management. In the future, with the gradual commissioning of new projects and the continuous recovery of market demand, Yuean New Material is expected to continue its good development trend.