Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately RMB 16,574 million, representing a year-on-year increase of about 1.9%[7]. - The net loss attributable to the company's owners was approximately RMB 1,558 million, with a loss per share of RMB 1.30[7]. - The gross profit margin decreased to -6.1% in 2022, compared to 8.0% in 2021[3]. - The group reported a net loss attributable to shareholders of approximately RMB 1,558 million for the year, compared to a net profit of RMB 614 million in the previous year[14]. - The net profit for the year was a loss of RMB 1,557,643, a significant decline from a profit of RMB 614,187 in 2021[55]. - The gross loss for 2022 was RMB (1,016,202,000), compared to a gross profit of RMB 1,301,901,000 in 2021, indicating a significant decline[165]. - The company reported a pre-tax loss of RMB (1,469,710,000) for 2022, compared to a profit of RMB 641,897,000 in 2021, indicating a substantial decline[165]. - The company incurred a loss of RMB 1,557,643 thousand for the year, compared to a profit of RMB 614,187 thousand in the previous year, marking a substantial decline in overall performance[168]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 25,504 million, while total liabilities increased to RMB 8,187 million[4]. - The total assets as of December 31, 2022, amounted to RMB 25,504,185, compared to RMB 25,218,482 in 2021[56]. - The total liabilities increased to RMB 8,187,266 as of December 31, 2022, from RMB 6,123,914 in 2021[56]. - The company's cash and cash equivalents stood at RMB 11,402,013,000, a slight decrease from RMB 11,565,829,000 in the previous year[166]. - Total equity attributable to owners decreased from RMB 19,084,667 thousand in 2021 to RMB 17,312,034 thousand in 2022, a decline of approximately 9.3%[168]. - The company's total liabilities amounted to approximately RMB 4,811,000,000, an increase from RMB 2,762,000,000 as of December 31, 2021[28]. - The group's debt-to-asset ratio was approximately 32.1% as of December 31, 2022, compared to 24.3% a year earlier[28]. Operational Efficiency - The inventory turnover period improved to 63 days in 2022, down from 65 days in 2021[4]. - The average accounts receivable turnover days improved to 9 days, down from 10 days in the previous year[27]. - The production volume of cotton yarn was approximately 389,000 tons, a decrease of about 5.4% year-on-year[17]. - The production volume of denim fabric increased by approximately 35.9% year-on-year, reaching about 53,000,000 meters[17]. - The group plans to enhance digital and intelligent transformation in 2023 to improve labor efficiency and production efficiency[9]. Market and Strategic Initiatives - The company aims to stabilize its domestic and international market share amidst challenging market conditions[7]. - The company plans to enhance automation, intelligence, and green production levels while continuing technological innovation to strengthen competitiveness[39]. - The company will focus on both domestic and international sales, adjusting operational and sales strategies as needed in response to market dynamics[39]. - The company is investing in technological innovation and smart upgrades, collaborating with universities for research on smart textiles[7]. - The company aims to optimize and upgrade its product structure based on market demand, leveraging its integrated advantages in production, learning, and research[39]. Research and Development - The group aims to increase R&D investment in functional fabrics and optimize product structure[9]. - The company achieved significant results in a project with Donghua University, developing high-performance flame-retardant fabrics and antibacterial textiles[7]. - The company is investing in new technology development, allocating 50 million for R&D initiatives[50]. Corporate Governance - The company has maintained compliance with the relevant regulations regarding related party transactions, as detailed in various announcements[79]. - The company has established a robust internal control mechanism to ensure compliance with laws and regulations, with no violations reported[105]. - The board of directors is responsible for major decision-making, including approving policies, overall strategy, and significant transactions[115]. - The company has established a comprehensive risk management and internal control system, clearly defining responsibilities and authority across business units and departments[149]. - The company emphasizes the importance of good corporate governance in creating shareholder value and has implemented a set of written terms of reference for governance functions[109]. Shareholder Communication - The company maintains communication with shareholders through annual general meetings and encourages participation, ensuring shareholder rights are upheld[151]. - The shareholder communication policy aims to provide timely and accurate information regarding the company's financial performance and strategic objectives[152]. - The company utilizes various communication channels, including annual reports, shareholder meetings, and its website, to engage with shareholders and investors[153]. Environmental and Social Responsibility - The company has installed wastewater treatment and recycling equipment to mitigate environmental impact from its production processes[34]. - The management team emphasized a focus on sustainability initiatives, with plans to reduce carbon emissions by 25% by 2025[50]. - The company made charitable donations totaling RMB 13,000,000 for the year ended December 31, 2022[60]. Related Party Transactions - The total value of related party transactions for the year ended December 31, 2022, includes RMB 433,987,000 for cotton yarn, cotton fabric, and denim supplied to the parent company[95]. - The group supplied cotton yarn, grey fabric, and denim to the parent company, with a total amount of approximately RMB 434 million for the year, lower than the annual cap of approximately RMB 720 million in 2022[78]. - The company has established clear pricing policies and guidelines for related party transactions, ensuring compliance with listing rules[77]. Financial Reporting and Audit - The company has adhered to the Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance in preparing its financial statements[156]. - The audit report does not cover other information included in the annual report, which is the responsibility of the company's directors[160]. - The audit committee is responsible for overseeing the financial reporting process of the company[161]. - The company’s financial statements reflect a true and fair view of its consolidated financial position as of December 31, 2022[156].

Financial Performance - Revenue increased by approximately 1.9% year-on-year to approximately RMB 16,574,000,000[2] - Gross loss amounted to approximately RMB 1,016,000,000, compared to a gross profit of approximately RMB 1,302,000,000 in the previous year[2] - Net loss attributable to shareholders was approximately RMB 1,558,000,000, compared to a net profit of approximately RMB 614,000,000 in the previous year[2] - Loss per share was approximately RMB 1.30, compared to earnings of approximately RMB 0.51 per share in the previous year[2] - The company reported a total comprehensive loss of RMB 1,562,659,000 for the year, compared to a total comprehensive income of RMB 614,905,000 in the previous year[3] - The company reported a pre-tax loss of RMB 1,469,710 thousand for the year ended December 31, 2022, compared to a profit of RMB 641,897 thousand in 2021[7] - The company reported a net loss of RMB 1,557,643,000 for 2022, compared to a profit of RMB 614,187,000 in 2021, marking a significant decline[35] Assets and Liabilities - Total non-current assets amounted to RMB 9,361,045,000, slightly up from RMB 9,316,161,000 in the previous year[4] - Current assets totaled RMB 16,143,140,000, an increase from RMB 15,902,321,000 in the previous year[4] - Current liabilities increased to RMB 7,658,909,000 from RMB 5,455,180,000 in the previous year[4] - Total equity attributable to shareholders decreased to RMB 17,312,034,000 from RMB 19,084,667,000 in the previous year[5] - Total assets as of December 31, 2022, amounted to RMB 25,504,185 thousand, an increase from RMB 25,218,482 thousand in the previous year[21] - The company's debt as of December 31, 2022, was approximately RMB 4.811 billion, compared to RMB 2.762 billion in the previous year, with a debt-to-asset ratio of approximately 32.1%[64] Revenue Breakdown - For the year ended December 31, 2022, total revenue reached RMB 16,573,668 thousand, with textile products contributing RMB 10,499,323 thousand and electricity and steam contributing RMB 6,074,345 thousand[19] - The textile segment reported a loss of RMB 1,707,036 thousand, while the electricity and steam segment generated a profit of RMB 347,998 thousand, resulting in an overall segment loss of RMB 1,359,038 thousand[19] - The company’s textile product revenue decreased by approximately 8% from RMB 11,450,319 thousand in 2021 to RMB 10,499,323 thousand in 2022[19] - The electricity and steam segment's revenue increased from RMB 4,812,367 thousand in 2021 to RMB 6,074,345 thousand in 2022, marking a growth of approximately 26.2%[19] - Textile revenue was approximately RMB 10,499,000,000, a decrease of about 8.3% year-on-year, primarily due to adverse factors such as international trade friction and a weak textile market[46] - Power and steam revenue increased by approximately 26.2% year-on-year to about RMB 6,074,000,000, driven by rising coal prices and increased demand from downstream customers[46] Cash Flow and Investments - Cash flow from operating activities showed a net cash outflow of RMB 1,328,391 thousand, a decline from a positive cash flow of RMB 158,892 thousand in 2021[7] - The company invested RMB 925,684 thousand in property, plant, and equipment, a substantial increase from RMB 83,601 thousand in the previous year[8] - The company reported a decrease in cash and cash equivalents at year-end to RMB 11,402,013 thousand from RMB 11,565,829 thousand at the beginning of the year[8] Expenses and Costs - The total employee costs for 2022 were RMB 3,666,257,000, an increase from RMB 3,401,647,000 in 2021, indicating a rise of about 7.8%[32] - The total depreciation and amortization expenses for the year were RMB 727,649 thousand, with RMB 209,210 thousand attributed to the textile segment[24] - The company incurred a total depreciation expense of RMB 699,383,000 for property, plant, and equipment in 2022, slightly down from RMB 715,229,000 in 2021[32] - The company's financial costs rose to RMB 143,363,000 in 2022 from RMB 116,306,000 in 2021, reflecting an increase of approximately 23.3%[30] - The income tax expense for 2022 was RMB 92,949,000, significantly higher than RMB 26,992,000 in 2021, indicating an increase of approximately 244.5%[31] Market and Strategic Outlook - The company plans to continue expanding its market presence and product offerings in the textile and energy sectors[9] - The company plans to continue focusing on expanding its electricity and steam segment to enhance profitability and reduce reliance on textile products[19] - The company aims to improve operational efficiency and explore new market opportunities to drive future growth[19] - The company anticipates a complex external environment in 2023, focusing on industrial upgrading and innovation to achieve high-quality development while adjusting operational and sales strategies as needed[67] Corporate Governance - The company has adhered to the principles of the corporate governance code throughout the fiscal year ending December 31, 2022[80] - The audit committee, consisting of three independent non-executive directors, reviewed the group's annual performance and financial statements on March 17, 2023[78] - The company confirmed compliance with the standards of the code of conduct for securities transactions by all directors and supervisors for the fiscal year ending December 31, 2022[79]

Financial Performance - Revenue increased by approximately 10.6% year-on-year to about RMB 8,293,000,000[5] - Gross loss amounted to approximately RMB 419,000,000, compared to a gross profit of RMB 880,000,000 in the same period last year[5] - Net loss attributable to shareholders was approximately RMB 650,000,000, compared to a net profit of RMB 583,000,000 in the same period last year[5] - Earnings per share were approximately RMB 0.54 loss, compared to earnings of RMB 0.49 in the same period last year[5] - For the six months ended June 30, 2022, the group's revenue was approximately RMB 8,293,000,000, an increase of about 10.6% compared to the same period in 2021[20] - The group reported a net loss attributable to shareholders of approximately RMB 650,000,000, mainly due to high raw material costs and increased employee costs impacting textile production[20] - For the six months ended June 30, 2022, the company reported a gross loss of approximately RMB 650 million, with a gross loss margin of about 10.7%[12] - The company reported a total loss and comprehensive expenses of RMB (650,036) thousand for the first half of 2022[73] - The company reported a pre-tax loss of RMB (648,490) thousand, compared to a profit of RMB 633,129 thousand in the same period of 2021[67] - Total comprehensive loss for the period was RMB (651,114) thousand, compared to a profit of RMB 583,978 thousand in the same period of 2021[67] Market Environment - The textile market in China faced a challenging environment with a 6.5% year-on-year decrease in retail sales of clothing and textiles[15] - The overall profit of large-scale textile enterprises in China decreased by approximately 17.0% year-on-year due to high raw material prices and weak demand[15] - Textile product revenue was approximately RMB 5,441,000,000, a decrease of about 1.4% year-on-year, primarily due to adverse factors such as ongoing global pandemic impacts and international trade frictions[20] - The textile industry in China is expected to receive support from domestic demand due to government policies aimed at economic recovery[42] Product Development and Innovation - The company developed several new products, including high-performance flame-retardant fabrics and bio-based antibacterial fabrics, winning awards at the 2022 China International Fabric Design Competition[13] - The company plans to enhance digital and intelligent transformation to improve labor efficiency and strengthen R&D investment in functional fabrics[14] - The company incurred research and development costs of RMB 318,850,000 for the six months ended June 30, 2022, up from RMB 270,022,000 in the same period of 2021, reflecting a 17.9% increase[107] Operational Efficiency - The company aims to improve environmental governance levels to support long-term sustainable development[14] - The group plans to enhance automation and smart production levels while focusing on non-cotton product sales to improve product structure[42] - The group will adjust its operational and sales strategies in response to domestic and international market dynamics[42] Financial Position and Cash Flow - As of June 30, 2022, the company's cash and cash equivalents amounted to approximately RMB 10.78 billion, a decrease of about 6.8% from the previous year-end[33] - The company's debt-to-asset ratio was approximately 26.7% as of June 30, 2022, with total bank loans of about RMB 2.74 billion[35] - The average accounts receivable turnover days increased to 12 days, while inventory turnover days increased to 72 days, reflecting decreased market demand[33] - The net cash used in operating activities for the first half of 2022 was RMB (642,339) thousand, compared to a net cash inflow of RMB 407,615 thousand in the same period of 2021[75] - The company's cash outflow for lease payments totaled approximately RMB 8,649,000 for the six months ended June 30, 2022, slightly down from RMB 8,770,000 in the same period of 2021[114] Employee and Management Costs - The company had approximately 40,000 employees, with total employee costs increasing by approximately 44.3% to about RMB 2.19 billion[36] - Administrative expenses rose by approximately 15.5% to about RMB 171 million, primarily due to increased employee salaries and benefits[29] - The total compensation for key management personnel increased to RMB 2,720 thousand, reflecting a rise of 12.7% from RMB 2,413 thousand in the previous year[138] Governance and Compliance - The company established an audit committee consisting of three independent non-executive directors to review the financial reporting process and internal controls[54] - The company has complied with the Corporate Governance Code during the six months ended June 30, 2022[59] - The company has adopted a securities trading code for directors and supervisors that meets or exceeds the standards set by the Model Code[59] Related Party Transactions - The group reported related party transactions with the holding company amounting to RMB 1,087,828 thousand for the six months ended June 30, 2022, an increase of 42.4% compared to RMB 764,447 thousand in the same period of 2021[136] - Sales of textiles to other subsidiaries of the holding company decreased to RMB 224,589 thousand, down 6.5% from RMB 241,493 thousand year-on-year[136]

Financial Performance - The company's revenue for the year ended December 31, 2021, was approximately RMB 16,263 million, representing a year-on-year increase of about 27.6%[9] - The net profit attributable to the company's owners was approximately RMB 614 million, showing a significant year-on-year growth of about 199.5%[9] - The basic earnings per share for the year was RMB 0.51[9] - The gross profit margin for the year was 8.0%, compared to 7.6% in the previous year[4] - The company's revenue for the year ended December 31, 2021, was approximately RMB 16,263 million, an increase of about 27.6% year-on-year, with textile product revenue rising by approximately 32.5% to RMB 11,450 million[20] - The net profit attributable to the company's owners for the year was approximately RMB 614 million, a significant increase of about 199.5% compared to RMB 205 million in the previous year[21] - The average price of China's cotton A index (3128B) was approximately RMB 17,808 per ton in 2021, reflecting a year-on-year increase of about 37.7%[15] - The company reported a significant increase in other income and gains, which rose to RMB 381,048 thousand in 2021 from RMB 221,409 thousand in 2020, a growth of 72.1%[192] - The pre-tax profit for the year 2021 was RMB 641,897 thousand, a significant increase of 37.4% from RMB 466,644 thousand in 2020[197] - The net profit attributable to the owners of the company for 2021 was RMB 614,187 thousand, significantly higher than RMB 204,833 thousand in 2020, marking a 200.5% increase[192] Assets and Liabilities - The total assets as of December 31, 2021, amounted to RMB 25,218 million, while total liabilities were RMB 6,124 million[5] - The total assets as of December 31, 2021, amounted to RMB 35,665,623 thousand, up from RMB 32,965,216 thousand in 2020, showing a growth of 8.2%[193] - Total liabilities decreased to RMB 5,455,180 thousand in 2021 from RMB 5,730,503 thousand in 2020, a reduction of 4.8%[193] - The company's total assets and non-current liabilities amounted to RMB 19,763,302 thousand in 2021, compared to RMB 18,731,713 thousand in 2020, indicating an increase of 5.5%[194] Production and Sales - The company has invested in the construction of two new green intelligent factories to enhance production capabilities[9] - The company is focusing on technological upgrades in textile production, including modifications to compact spinning and new bamboo segment technology[9] - The company's textile product sales volume increased year-on-year, with cotton yarn, grey fabric, and denim accounting for approximately 46.2%, 48.5%, and 5.3% of textile revenue, respectively[22] - The production volume of cotton yarn was approximately 411,000 tons, an increase of about 10.8% year-on-year, while the production of denim decreased by about 22.0% to 39 million meters[24] Expenses and Costs - Selling and distribution expenses rose by approximately 49.7% year-on-year to about RMB 226,000,000, driven by increased transportation costs due to higher sales volumes and transportation prices[28] - Administrative expenses increased by approximately 25.2% year-on-year to about RMB 348,000,000, mainly due to salary increases and higher R&D expenditures[29] - Other expenses surged by approximately 105.8% year-on-year to about RMB 352,000,000, largely due to the purchase of carbon emission allowances costing about RMB 145,000,000[30] Corporate Governance - The company has a strong governance structure with a mix of executive and non-executive directors, ensuring diverse expertise in management[52] - The company is committed to maintaining strong corporate governance and compliance with regulatory standards[52] - The board of directors includes members with extensive experience in various roles within the textile industry, enhancing strategic decision-making[52] - The company has established a comprehensive risk management and internal control system to identify and manage risks that may affect business objectives[176] Future Outlook and Strategy - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[56] - New product launches are expected to contribute an additional 200 million in revenue in the upcoming year[57] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million for potential deals[56] - The management team emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by 25% over the next five years[57] Shareholder Information - The company reported a final dividend of RMB 0.18 per share (tax included) for the year ending December 31, 2021, subject to approval at the upcoming annual general meeting[60] - The company has adopted a dividend policy to distribute approximately 35% of its distributable annual profits as dividends[65] - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders listed in the H-share register[61] Related Party Transactions - The total value of related party transactions for the fiscal year ended December 31, 2021, amounted to RMB 2,586,000,000, with specific transactions including RMB 528,848,000 for cotton yarn and fabric supply, and RMB 1,863,594,000 for excess electricity supply[117] - The company confirmed that all related party transactions were conducted under normal commercial terms and were in the best interest of shareholders[119] Management and Employees - The group had approximately 40,000 employees as of December 31, 2021, a decrease of about 4,000 from the previous year, primarily due to normal turnover and increased automation[36] - The group emphasizes employee development through training programs and performance-based bonuses to encourage innovation and improvement[44] Risk Management - The company has implemented a risk management system to identify and control potential risks affecting its operations[40] - The Audit Committee is responsible for monitoring the integrity of the company's financial statements and ensuring compliance with accounting standards and regulations[157]