Shengxing Shares (stock code: 002752) is a leading enterprise in the domestic metal packaging field. After nearly 30 years of development, it has accumulated a large number of high-quality customer resources in the food and beverage industry, and has established long-term stable strategic cooperative relations with many well-known enterprises. The company focuses on metal packaging, and its products are widely used in food, medicine, daily necessities, industrial products, and military industries. It has excellent barrier properties, long shelf life, easy to automate production, exquisite printing, diverse styles, and easy to recycle and reuse. In response to changes in national policies and market demand, the company actively promotes the construction of a smart value-added comprehensive service platform for fast-moving consumer goods industry, enhances customer value-added service capabilities, and continuously improves the layout of the industry chain by entering the high-end metal packaging field, increasing filling business, developing big data analysis platforms, and expanding overseas business, and enhancing the service capabilities of comprehensive packaging solutions.

In the first quarter of 2024, Shengxing Shares' total assets amounted to 7.431 billion yuan, a decrease of 13.51% compared with the beginning of the period of 8.592 billion yuan. The total liabilities are 4.159 billion yuan, a decrease of 23.61% compared to the beginning of the period of 5.447 billion yuan. The debt-to-asset ratio fell from 63.4% at the beginning of the period to 55.97%, showing that the company has achieved certain results in reducing its debt. The goodwill remained unchanged at 886,000 yuan. It is worth noting that monetary funds decreased significantly from 1.628 billion yuan at the beginning of the period to 853 million yuan. The main reason was the expiration of bank acceptance bills and the reduction of bank acceptance bill margins. In addition, short-term borrowings also decreased significantly, from 1.882 billion yuan at the beginning of the period to 686 million yuan, reflecting the company's active actions in repaying loans.

In terms of profitability, Shengxing Shares' operating income in this reporting period was 1.676 billion yuan, a year-on-year increase of 9.11%. Operating profit was 148 million yuan, an increase of 136.27% compared to the same period of the previous year. Net profit was 126 million yuan, a significant increase of 139.71% year-on-year. The gross profit margin rose from 10.69% in the same period last year to 14.03%, and the net profit margin rose from 3.43% to 7.54%, showing a significant improvement in the company's profitability. Net profit attributable to shareholders of listed companies was 122 million yuan, a year-on-year increase of 128.00%. Basic earnings per share and diluted earnings per share were both 0.12 yuan, an increase of 140.00% compared to the same period of the previous year. The weighted average return on net assets increased from 1.80% to 3.87%.

In terms of cash flow, the net cash flow from operating activities in this reporting period was 59.97 million yuan, a decrease of 69.06% compared to the same period of the previous year. The subtotal of cash inflows from operating activities was 2.524 billion yuan, an increase of 33.67% year-on-year, but the subtotal of cash outflows was 2.464 billion yuan, an increase of 45.34% year-on-year, leading to a decrease in net cash flow. The net cash flow from investing activities was -60.94 million yuan, which improved compared to -112 million yuan in the same period of the previous year, mainly due to a decrease in investment in fixed assets. The net cash flow from financing activities was -241 million yuan, a significant decrease compared to -5.846 million yuan in the same period of the previous year, mainly due to an increase in repayment of loans. Finally, the net increase in cash and cash equivalents was -241 million yuan, a decrease of 1,100.85% compared to the same period of the previous year.

In summary, Shengxing Shares achieved significant results in reducing debt and enhancing profitability in the first quarter of 2024, with significant growth in operating income and net profit. However, the net cash flow from operating activities decreased significantly, reflecting the need for the company to strengthen cash flow management. In the future, the company should continue to optimize its financial structure, improve its operational efficiency, and respond to market changes and competitive pressure.