Financial Performance - The company's operating revenue for 2022 is expected to be CNY 344,640,462.86, a decrease of 27.02% compared to the previous year[3]. - The net profit attributable to shareholders is projected to be -CNY 23,193,448.18, representing a decline of 215.34% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is expected to be -CNY 25,867,049.19, down 236.08% from the previous year[4]. - The basic earnings per share is expected to be -0.31, a decline of 214.81% from the previous year[3]. Assets and Equity - Total assets at the end of the reporting period are estimated to be CNY 644,239,320.62, a decrease of 8.29% year-on-year[4]. - Shareholders' equity attributable to the company is projected to be CNY 172,043,443.24, down 13.50% compared to the beginning of the period[4]. Challenges and Uncertainties - The company faced significant challenges due to the repeated impact of the pandemic and the downturn in the real estate sector, leading to reduced revenue and gross profit[5]. - The company's subsidiaries, Suzhou Jietong and Changzhou Jietong, have been continuously losing money, raising uncertainty about future taxable income[5]. - The company has adopted a cautious approach regarding deferred tax assets due to the uncertainty of generating sufficient taxable income[5]. Audit and Data Integrity - The financial data presented is preliminary and subject to audit, which may result in discrepancies with the final audited figures[6].

Financial Performance - The company expects a net loss attributable to shareholders in the range of -20 million to -26 million yuan for the year 2022, compared to a profit of 20.11 million yuan in the same period last year[4]. - The decline in performance is primarily due to the repeated impact of the pandemic and the downturn in the real estate industry, leading to reduced operating income and gross profit[6]. - The company's subsidiaries, Suzhou Jietong and Changzhou Jietong, have been continuously losing money, raising uncertainty about their ability to generate sufficient taxable income in the future[6]. - The company has not recognized deferred tax assets for deductible losses based on the principle of prudence, impacting the overall financial performance[6]. - The performance forecast is based on preliminary calculations by the finance department and has not been audited by an accounting firm, thus it does not constitute a commitment to investors[7]. Risk Management - Due to macroeconomic pressures, some clients are facing operational and financial difficulties, prompting the company to adopt a cautious approach in assessing accounts receivable[6]. - The company has made provisions for bad debts and asset impairment losses for clients facing significant operational risks, which has adversely affected its performance[6].

Revenue and Sales Performance - In the first half of 2022, the company's sales revenue from the top five customers was CNY 43.26 million, accounting for 34.14% of total sales revenue[12]. - The company's sales revenue in Jiangsu Province during the reporting period was CNY 79.44 million, representing 69.20% of main business revenue[12]. - The company's sales revenue from PC components was CNY 51.04 million, making up 44.74% of main business revenue[12]. - The company's overseas revenue in Australia was CNY 10.40 million, which accounted for 9.06% of total revenue[12]. - The company's operating revenue for the current period is ¥114,790,693.64, a decrease of 47.77% compared to the same period last year[30]. - The company achieved a revenue of 11,479.07 million yuan in the reporting period, a decrease of 47.77% compared to the same period last year[47]. - Revenue from mainland China decreased by 50.02% to ¥104,395,605.41 compared to the previous year[68]. - The company's main business revenue decreased by 47.87% to ¥114,066,150.29 compared to the previous period[64]. - The company's sales product revenue decreased by 51.91% to ¥57,845,779.89 compared to the previous year[66]. - The company's design consulting revenue increased by 61.35% to ¥15,082,296.53 compared to the previous year[66]. Financial Performance - The net profit attributable to shareholders is -¥6,843,366.06, representing a decline of 157.30% year-over-year[30]. - The company's net profit for the current period is -¥12,018,647.95, representing a decrease of 228.11% compared to a profit of ¥9,381,188.97 in the previous year[60]. - The gross profit margin for the company was 14.11%, impacted by project completion delays and rising costs of raw materials such as labor, steel, and cement[14]. - The gross profit margin has declined to 14.11% from 21.56% year-on-year[58]. - The company's accounts receivable accounted for 44.95% of total assets, leading to a relatively low accounts receivable turnover rate[14]. - The company's interest expenses of 6.29 million yuan in the first half of 2022 included 3.05 million yuan for lease liabilities[14]. - The total assets decreased by 6.02% to ¥660,178,022.52, while total liabilities decreased by 5.78% to ¥434,682,663.14[34]. - The company's operating cost for the period was 9,859.10 million yuan, down 42.82% year-on-year[47]. - Financial expenses increased by 89.72% to ¥6,354,288.79, driven by higher short-term borrowings and related interest expenses[61]. Market Expansion and Strategy - The company aims to expand its market presence outside of Suzhou and has set up branches in Nanjing and Shanghai[12]. - The company is actively expanding into the distributed rooftop power generation and photovoltaic building integration sectors, establishing a joint venture with Goodwe and China New Public Utilities[37]. - The company plans to increase its investment in the renewable energy sector, with expectations for related business to steadily grow in proportion over the coming years[80]. - The company aims to diversify its market presence beyond Suzhou and Shanghai to mitigate risks associated with customer and sales region concentration[83]. - The company has established a research and development team focused on BIPV (Building Integrated Photovoltaics) to promote the integration of solar energy solutions into its construction projects[79]. Risk Management - The company has faced risks related to market fluctuations and policy changes in the construction industry[12]. - The company has established a comprehensive labor supplier management system to mitigate labor subcontracting risks[12]. - The company is facing risks related to the tight cash flow of its subsidiaries due to increased procurement prepayments and delayed receivables[15]. - The company has implemented measures such as dynamic project type adjustments and expanding its industry chain coverage to mitigate risks from market fluctuations[81]. - The company is facing potential risks from the rising costs of shipping, with container freight rates expected to increase from approximately USD 1,500 to USD 4,000[92]. - The company is actively monitoring the political and economic conditions in Australia to manage risks associated with its overseas operations[92]. Corporate Governance and Shareholder Information - The actual controllers, Ding Jie and Ding Qiang, hold a combined 41.98% of the company's shares[22]. - The company has established measures to stabilize its stock price, including a commitment to repurchase shares if the stock price falls below the latest audited net asset value per share for 20 consecutive trading days[146]. - The company has a total of 73,758,000 shares outstanding, with 54.41% held by controlling shareholders and actual controllers[169]. - The company has a total of 5,575 shareholders as of the end of the reporting period[169]. - The company has implemented measures to ensure accountability for unfulfilled commitments by directors and senior management, including salary reductions and restrictions on share transfers[163]. Research and Development - The company has established a research and design department for prefabricated buildings since 2017, providing comprehensive consulting and design services[38]. - The company has invested in R&D, achieving 97 patents, including 6 invention patents, to maintain its competitive edge in the prefabricated construction industry[102][101]. - The company emphasizes the importance of high-end design and technical talent, implementing competitive compensation and career development pathways to attract and retain such talent[104][105]. Impact of COVID-19 - The ongoing impact of the COVID-19 pandemic has significantly affected production, transportation, and project execution, with expected continued negative effects on overseas business[25]. - The company faced significant impacts on production, transportation, and project installation due to COVID-19 outbreaks in Suzhou and Shanghai in the first half of 2022, which are expected to continue affecting operations[114]. - The company has implemented strict pandemic prevention measures to minimize the impact on operational performance and has negotiated with suppliers and customers to secure shipping plans[115]. Employee Information - Total employees decreased from 371 to 339, with a net reduction of 32 employees during the period[199]. - Core employees increased from 15 to 43, with 28 new additions and no reductions[200]. - Production personnel decreased significantly from 161 to 130, a reduction of 31 employees[199]. - Sales personnel decreased from 23 to 20, with a net loss of 3 employees[199]. - Technical personnel increased slightly from 104 to 105, with 16 new hires and 15 departures[199]. - Management personnel increased from 41 to 42, with 5 new hires and 4 departures[199]. - Financial personnel decreased from 14 to 13, with 3 new hires and 4 departures[199]. - Administrative personnel increased from 28 to 29, with 2 new hires and 1 departure[199].

Financial Performance - Revenue for the first quarter of 2022 was CNY 58,269,944.88, down 9.76% from CNY 64,574,733.23 in the same period last year[15] - Net profit attributable to shareholders for the first quarter of 2022 was CNY 443,925.69, a significant decrease of 88.56% compared to CNY 3,881,086.20 in the previous year[15] - The company reported a basic earnings per share of CNY 0.01, down 90.00% from CNY 0.10 in the previous year[15] - Total operating revenue for Q1 2022 was ¥58,269,944.88, a decrease of 9.0% from ¥64,574,733.23 in Q1 2021[40] - Net profit for Q1 2022 was a loss of ¥1,271,750.10, compared to a profit of ¥2,468,725.36 in Q1 2021, representing a significant decline[42] - Basic earnings per share for Q1 2022 was ¥0.01, down from ¥0.10 in Q1 2021, indicating a decline in profitability per share[42] Assets and Liabilities - Total assets as of March 31, 2022, were CNY 642,145,073.03, a decrease of 8.59% compared to the end of the previous year[15] - Total current assets decreased to CNY 415,467,854.06 from CNY 479,277,710.33, a decline of approximately 13.3%[32] - Total liabilities decreased to CNY 402,223,976.81 from CNY 461,348,913.69, a decrease of approximately 12.8%[34] - Total assets decreased to CNY 642,145,073.03 from CNY 702,468,229.32, reflecting a decline of about 8.6%[34] - The company's asset-liability ratio (consolidated) decreased to 62.64% from 65.68% year-on-year[15] - The company's total liabilities decreased to ¥132,245,211.82 in Q1 2022 from ¥155,380,425.99 in Q1 2021, a reduction of approximately 14.9%[38] Cash Flow - The net cash flow from operating activities improved by 51.06%, reaching CNY -24,600,695.11, compared to CNY -50,262,113.61 in the same period last year[17] - Cash inflow from operating activities reached CNY 123,607,345.92, significantly higher than CNY 70,561,851.54 in the same period last year, indicating a growth of approximately 75%[47] - Cash outflow from investing activities totaled CNY 650,113.90, a decrease from CNY 2,545,058.15 in the previous period, reflecting a reduction of about 74%[49] - Cash inflow from financing activities was CNY 63,810,248.80, up from CNY 43,548,360.00, representing an increase of approximately 46%[49] - The company incurred a net cash outflow from operating activities of CNY -9,699,818.29, an improvement from CNY -12,100,725.89 in the previous year[51] Shareholder Information - The total number of shares outstanding is 73,758,000, with 53.90% being unrestricted shares held by controlling shareholders[20] - The largest shareholder holds 15,674,069 shares, representing 21.25% of total shares[22] - The second-largest shareholder holds 15,288,920 shares, accounting for 20.73% of total shares[22] - The proportion of restricted shares is 46.10%, with 34,003,806 shares classified as restricted[20] - The core employees' shareholding increased from 2,914,149 to 2,998,445, representing a rise from 3.95% to 4.07%[20] Operational Highlights - The increase in financial expenses was attributed to rising raw material prices and increased financing costs[17] - The company is focused on improving cash collection from sales to enhance cash flow stability[17] - Research and development expenses for Q1 2022 were ¥3,675,153.20, a decrease of 14.1% from ¥4,279,898.04 in Q1 2021[41] - The company reported a credit impairment loss of ¥5,659,902.67 in Q1 2022, compared to ¥2,656,014.55 in Q1 2021, indicating increased credit risk[41] Other Information - There are no significant litigation or arbitration matters reported during the period[27] - The company has fulfilled its previously disclosed commitments in a timely manner[27] - No external guarantees or loans were provided during the reporting period[27] - The company has not implemented any profit distribution or capital increase from reserves during the reporting period[28] - Total comprehensive income amounted to CNY 1,112,102.92 for the current period, compared to CNY 4,881,504.46 in the previous period[46]

Revenue and Sales Performance - In 2021, the company's revenue from PC components was CNY 259.95 million, accounting for 55.34% of total operating income[17]. - The top five customers contributed CNY 201.01 million in sales, representing 38.52% of total sales revenue[15]. - The company achieved a revenue of CNY 285.22 million in Jiangsu Province, which accounted for 60.71% of its main business income[16]. - The company's operating revenue for 2021 was CNY 472,238,922.29, representing a year-over-year increase of 35.19% compared to CNY 349,305,773.88 in 2020[40]. - The net profit attributable to shareholders for 2021 was CNY 20,109,133.14, a slight increase of 2.28% from CNY 19,661,363.11 in 2020[40]. - The company's overseas revenue reached 21.78 million yuan, representing 4.61% of total revenue, with foreign exchange gains and losses amounting to 597,700 yuan[18]. - The company’s overseas business revenue was CNY 21,784,800 in 2021, reflecting a slight decline due to increased shipping costs and a sluggish apartment market[63]. Financial Performance and Challenges - The company reported a net profit of -8.81 million yuan for Suzhou Jietong and 6.17 million yuan for Changzhou Jietong, indicating that operational performance was below expectations[18]. - In 2021, the company's gross profit margin decreased to 20.54% due to factors such as declining unit prices of PC components and rising raw material costs[18]. - The company incurred interest expenses of 9.35 million yuan in 2021, including 4.54 million yuan related to lease liabilities, highlighting financing challenges amid business expansion[18]. - The company's cash flow from operating activities for 2021 was CNY 70,383,025.81, a significant increase from CNY 12,716,480.53 in 2020, marking a decrease of 653.48%[44]. - The company reported a net profit growth rate of -30.16% in 2021 compared to 38.33% in 2020[46]. - The company's cash and cash equivalents decreased by 43.51% due to an increase in accounts receivable and delayed sales collections[74]. - The company is experiencing tight operating capital due to increased procurement prepayments and slower cash recovery, which may impact its subsidiaries' cash flow[19]. Risks and Mitigation Strategies - The company faced risks from concentrated customer reliance, with a significant portion of revenue dependent on a few key clients[15]. - The company anticipates challenges in overseas operations due to rising shipping costs, which are expected to impact business in 2022[17]. - Accounts receivable accounted for 50.29% of total assets, leading to significant risks related to bad debts if collections are delayed or customers face operational difficulties[18]. - The company has identified new risks including rising raw material prices and tight operating funds for subsidiaries, alongside existing risks such as market competition and overseas operations[23]. - The company has established a comprehensive project quality control and management mechanism to mitigate risks associated with product and service quality disputes[22]. - The company has implemented measures such as centralized procurement and lean production management to mitigate the impact of intensified market competition on profitability[141]. Research and Development - Research and development expenses for the company were 22.55 million yuan in 2021, accounting for 4.78% of total revenue, reflecting ongoing investment in technology[20]. - The company holds a total of 84 patents, which are crucial for maintaining market competitiveness, but faces risks related to potential technology leaks or infringements[20]. - The company’s R&D design department has achieved leading levels in Jiangsu for composite functional prefabricated wall panels and key hoisting technologies[59]. - The proportion of R&D personnel in the total workforce increased to 22.62% from 21.56%[110]. Strategic Initiatives and Market Expansion - The company formed a strategic partnership with China New Energy and Godewei to enter the "new energy + energy storage" and green low-carbon construction sectors[9]. - The company plans to expand its market presence and enhance its product offerings in the prefabricated construction sector[34]. - The company is actively expanding its EPC (Engineering, Procurement, and Construction) project management services, having successfully completed the Hongfeng Titanium EPC project[62]. - The company is exploring the promotion of prefabricated bathroom products to diversify its offerings and expand its service coverage[132]. - The company has established branches in Nanjing and Shanghai, achieving its operational goals and aiming to further expand its market share outside Jiangsu[142]. Governance and Compliance - The actual controllers of the company hold a combined 41.98% of shares, which may lead to risks of improper control over company decisions[22]. - The company is subject to higher governance standards due to the establishment of the Beijing Stock Exchange, necessitating improved management compliance[22]. - The company has revised multiple management systems to enhance governance and reduce risks associated with internal management as it expands[168]. - The company has maintained compliance with the new accounting standards without significant impact on the financial statements[122]. Social Responsibility and Sustainability - The company continues to pursue sustainable development and harmonious social construction in its operations[125]. - The company has been recognized for its commitment to social responsibility, receiving multiple honors such as "Suzhou Contract-abiding and Trustworthy Enterprise" in 2019 and "Suzhou Quality Award" in 2021[126][129].

Group 1: Company Overview - Suzhou Xujie Technology Co., Ltd. focuses on research and design-driven services in the prefabricated construction sector, including design consulting, production and sales of prefabricated components, installation, and general contracting for prefabricated buildings [2][3]. - The company is responding to national calls for the development of prefabricated buildings and promoting green design and construction management [4]. Group 2: Market Position and Competitors - Competitors in the prefabricated construction sector include Yuan Da Zhu Gong, which specializes in PC component production and prefabricated construction contracting; Hua Yang International, focusing on architectural design and technology; and Ya Sha Co., which deals with building decoration and intelligent system integration [3][4]. Group 3: Strategic Initiatives - The company has entered the integrated bathroom sector to enhance its service capabilities and meet customer demands, particularly in large-scale projects with short construction cycles [2]. - The company is in the process of changing its business license to incorporate new business initiatives related to the integration of construction and photovoltaic industries [4].