Tongxing Environmental Protection Technology Co., Ltd. (stock code: 003027) is a high-tech enterprise focusing on environmental technology research and application. The company is committed to providing efficient and environmentally friendly solutions, covering multiple fields such as exhaust gas treatment, sewage treatment, and solid waste treatment. In the first quarter of 2024, Tongxing Environmental Protection released its latest financial report, and this article will provide a detailed analysis of its financial data.

From the asset and liability data, as of March 31, 2024, the total assets of Tongxing Environmental Protection were 2.606 billion yuan, a decrease of 4.54% from the end of the previous year's 2.73 billion yuan. This change was mainly affected by the 100% decrease in trading financial assets (mainly due to the redemption of wealth management products) and the 42.59% decrease in accounts receivable financing (mainly due to the discount and collection of receivables). In addition, the long-term receivables increased by 258.38%, mainly due to the confirmation of income from Beijing Fangxin's receivables for the Yangtze River Steel Catalyst Project. On the other hand, the total liabilities decreased by 14.63%, from 0.951 billion yuan to 0.812 billion yuan, and the asset-liability ratio decreased from 34.84% to 31.15%. This indicates that the company has made certain achievements in reducing its liabilities, but the decrease in total assets also reflects the challenges it faces in asset management.

In terms of profit data, in the first quarter of 2024, Tongxing Environmental Protection's operating income was 0.103 billion yuan, a year-on-year decrease of 28.49%. The net profit attributable to shareholders of the listed company was 8.42 million yuan, a year-on-year decrease of 68.75%. The net profit after deducting non-recurring gains and losses was -4.12 million yuan, a year-on-year decrease of 121.13%. The gross profit margin decreased from 29.46% in the same period of the previous year to 16.74%, and the net profit margin decreased from 20.9% to 9.97%. These data indicate that the company faces significant pressure in terms of income and profit, especially the significant decrease in non-recurring net profit reflects the weakening of the main business profit-making ability. In addition, research and development expenses increased by 43.02% year-on-year, indicating that the company is increasing investment in research and development, but it has not yet been converted into revenue in the short term.

In terms of cash flow, the net cash flow from operating activities generated in the first quarter of 2024 was 8.44 million yuan, a year-on-year decrease of 88.09%. This change was mainly due to the increase in cash paid for the purchase of goods and services. The net cash flow from investing activities was -26.66 million yuan, a year-on-year decrease of 30.10%, mainly due to the increase in trading financial assets redeemed and its investment income. The net cash flow from financing activities was -24.4 million yuan, a year-on-year decrease of 3125.03%, mainly due to the repayment of bank financing in this period. These data indicate that the company faces significant challenges in cash flow management, especially the significant decrease in net cash flow from operating activities, which may bring pressure to the company's daily operations.

Overall, Tongxing Environmental Protection's financial performance in the first quarter of 2024 is not satisfactory. Although the company has made efforts to reduce its liabilities and increase its investment in research and development, the significant decrease in operating income and net profit, as well as the decrease in net cash flow from operating activities, reflect the challenges it faces in market competition and cost control. In the future, the company needs to further optimize its asset management, improve the profit-making ability of its main business, and strengthen its cash flow management to cope with changes and challenges in the market environment.