Zhejiang Rifa Precision Machinery (stock code: 002520) was founded in 2000, and its main product is high-end CNC machine tools, which belong to the general equipment manufacturing industry. CNC machine tools are automated machine tools with a programmed control system that can achieve high-precision, high-complexity, and efficient processing. The company is committed to providing single equipment, sections, workshops, and combined production lines for industrial processing in the field of electromechanical product manufacturing, and assisting customers in realizing digital factories. Its goal is to become a benchmark enterprise in the field of intelligent manufacturing, providing customers with high-value and differentiated professional equipment and solutions. Zhejiang Rifa Precision Machinery has developed into a comprehensive intelligent manufacturing equipment provider integrating flexible line manufacturing, system integration, and control system development, with independent design, development, and manufacturing capabilities, and can provide highly integrated and efficient customized solutions.

According to the financial report of Zhejiang Rifa Precision Machinery for the first quarter of 2024, the period-end balance of total assets was 4.098 billion yuan, a decrease of 3.04% from the initial 4.227 billion yuan. The period-end balance of total liabilities was 2.877 billion yuan, a decrease of 2.87% from the initial 2.962 billion yuan. Although both assets and liabilities have decreased, the asset-liability ratio has increased slightly from 70.08% at the beginning of the period to 70.2% at the end of the period. Goodwill remained unchanged with a period-end balance of RMB 26.26 million. These data show that the company has maintained a relatively stable state in asset and liability management, but needs to pay attention to the slight increase in the asset-liability ratio.

In terms of profit, the operating income of Zhejiang Rifa Precision Machinery in this reporting period was 0.458 billion yuan, a year-on-year increase of 22.52%. Operating costs were 0.402 billion yuan, a year-on-year increase of 19.2%. The gross margin increased from 9.68% in the same period last year to 12.11%, showing that the company has made improvements in cost control and profitability. Despite the increase in operating income and gross margin, the net income attributable to shareholders of the listed company is still negative, with a loss of -30.79 million yuan in this reporting period, a decrease of 7.33% compared to -33.22 million yuan in the same period of the previous year. Deducting non-recurring gains and losses, the net profit attributable to shareholders of the listed company was -32.48 million yuan, a decrease of 9.26% compared to the same period of the previous year of -35.8 million yuan in losses. These data show that while the company has improved its revenue and gross margin, it still faces the problem of net loss and needs to further optimize its cost and expenditure structure.

In terms of cash flow, the net cash flow from operating activities generated by Zhejiang Rifa Precision Machinery in this reporting period was 94.15 million yuan, an increase of 100.96% from the same period last year's 46.85 million yuan. The sub-total of cash inflows from operating activities was 0.613 billion yuan, a year-on-year increase of 14.79%, while the sub-total of cash outflows was 0.519 billion yuan, a year-on-year increase of 6.49%. These data show that the company has improved its cash flow management in its operating activities, with significant growth in cash inflows and proper control of cash outflows. In addition, the amount of tax refunds received decreased by 99% compared to the same period last year, and various taxes paid decreased by 68.96%, showing that the company has achieved certain results in tax management.

In summary, Zhejiang Rifa Precision Machinery's financial performance in the first quarter of 2024 shows some bullish signals, especially in the improvement of operating income and gross margin, and the significant improvement of cash flow from operating activities. However, the company still needs to pay attention to the problem of net loss and further optimize its cost and expenditure structure to achieve a more robust financial situation.