Financial Performance - The group's gross profit from continuing operations decreased from approximately RMB 303.2 million for the year ended December 31, 2021, to approximately RMB 58.1 million for the year ended December 31, 2022, representing a decline in gross profit margin from about 18.5% to approximately 4.4%[9]. - The group reported revenue from continuing operations of approximately RMB 1.3181 billion for the year ended December 31, 2022, a decrease of 19.7% or approximately RMB 322.8 million compared to the previous year[69]. - Yarn product revenue fell by 19.7% from approximately RMB 1.6409 billion in the year ended December 31, 2021, to approximately RMB 1.3181 billion in the year ended December 31, 2022[35]. - The group experienced pressure on yarn product selling prices due to deteriorating market conditions, with selling price declines outpacing raw material cost reductions[9]. - The group reported other income from continuing operations for the year ended December 31, 2022, was approximately RMB 23.6 million, a decrease of 37.2% or about RMB 14.0 million compared to RMB 37.6 million for the year ended December 31, 2021[70]. - The group recorded other losses from continuing operations of approximately RMB 8.1 million for the year ended December 31, 2022, a decrease from approximately RMB 17.6 million for the year ended December 31, 2021[45]. - The company reported a loss attributable to owners of approximately RMB 12.6 million for the year ended December 31, 2022, compared to a profit of approximately RMB 202.5 million for the year ended December 31, 2021, indicating a significant decline in profitability[92]. - The net loss margin for the year ended December 31, 2022, was approximately 1.0%, down from a net profit margin of approximately 12.3% for the previous year, primarily due to a decrease in gross profit[92]. Market Conditions - The textile industry faced significant challenges in 2022 due to global economic downturns and fluctuating raw material prices, impacting profitability[21]. - The international crude oil prices fluctuated between $100 and $120 per barrel in the first half of 2022, affecting the prices of downstream products, including polyester yarn raw materials[30]. - The group faced significant challenges in the textile industry due to rising raw material costs and was unable to fully pass these costs onto customers, leading to pressure on sales prices[64]. - The economic growth momentum in China slowed in 2022 due to COVID-19 outbreaks and related government measures, negatively impacting the textile market[98]. - The implementation of the Xinjiang-related legislation is expected to have a severe negative effect on the company's textile exports to the United States[98]. Operational Changes - The company decided to cease operations of Xinyuan in July 2022 to preserve financial resources and focus on its core yarn production business due to cautious market outlook[27]. - The group plans to focus on core business operations after ceasing operations at the XinYuan division due to unfavorable market conditions[41]. - The company will continue to monitor market changes and adjust inventory levels and production capacity, aiming to improve product mix and pricing strategies[28]. - The new workshop's production line, with a capacity of 25,000 spindles, began commercial operations in Q4 2022, and the remaining capacity is expected to undergo trial production in Q1 2023[38]. - The new workshop with a capacity of 50,000 spindles was completed in Q4 2022, with 25,000 spindles already in commercial operation and the remaining 25,000 spindles undergoing trial production in Q1 2023[54]. - The group anticipates that the new workshop will enhance production efficiency and reduce labor costs through high automation levels[38]. - The group plans to enhance automation in production to reduce labor costs and strengthen competitive advantages, while focusing on core business and adjusting inventory levels and production capacity[77]. Customer and Supplier Dynamics - The group had over 1,900 customers as of December 31, 2022, with sales to the five largest customers accounting for 13.9% of total sales, and sales to the largest customer representing 5.1% of total sales for the same period[14]. - The company has approximately 60 suppliers, with the top five suppliers accounting for 47.1% of total procurement, indicating a high concentration risk[115]. Financial Position - As of December 31, 2022, the group's cash and bank balances were approximately RMB 263.4 million, a decrease from RMB 283.0 million as of December 31, 2021[73]. - As of December 31, 2022, the company's interest-bearing borrowings amounted to approximately RMB 515.2 million, a decrease from RMB 553.2 million as of December 31, 2021, with 83.8% of borrowings due within one year[93]. - The company's debt-to-asset ratio was approximately 38.5% as of December 31, 2022, compared to 35.5% as of December 31, 2021[93]. - The group's net current liabilities were approximately RMB 213,940,000 as of December 31, 2022, indicating significant uncertainty regarding the group's ability to continue as a going concern[179]. Governance and Compliance - The board consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring compliance with independence requirements[134]. - The company has established a remuneration committee to review and determine the remuneration packages for directors and senior management, with independent non-executive director serving as the chairman[139]. - The board has implemented a risk management and internal control system to enhance operational efficiency and ensure compliance with relevant laws and regulations[150]. - The company has complied with the ethical responsibilities outlined in the professional code of conduct[197]. Strategic Initiatives - The company invested in Jiangxi Xinyuan Special Fiber Co., Ltd. to capitalize on the trend of using eco-friendly yarn products and to achieve vertical integration in the industry[67]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and will adjust its product mix and sales strategies accordingly to ensure sufficient cash flow[149]. - The group is committed to energy conservation and environmental protection, having obtained ISO14001 certification for its subsidiaries and installed solar panels for production facilities[81].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA WEAVING MATERIALS HOLDINGS LIMITED 中 國 織 材 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3778） 截至二零二二年十二月三十一日止年度之業績公告 中國織材控股有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及其 附屬公司（「本集團」）截至二零二二年十二月三十一日止財政年度的經審核綜合業 績，連同上一個財政年度的比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 （經重列） 持續經營業務 收入 4 1,318,133 1,640,903 銷售成本 (1,260,031) (1,337,727) 毛利 58,102 303,176 其他收入 5 23,613 37,578 其他收益及虧損 6 (8,091) (17,59 ...

Economic Conditions - In 2022, China's GDP growth rate slowed to approximately 4.8% in Q1 and 0.4% in Q2, compared to a growth rate of 8.1% in 2021[15] - The global economic recovery led to increased demand for international crude oil, with prices rising from around $75 per barrel at the end of 2021 to over $120 per barrel in March 2022[11] - The company faced significant uncertainties due to the Russia-Ukraine conflict, which impacted global economic conditions[10] - The Federal Reserve raised interest rates multiple times in 2022, which raised concerns about a potential economic recession and led to a general decline in commodity prices[13] - The Chinese government has implemented various policy measures to stimulate the economy following the control of the pandemic[15] - In the first half of 2022, the economic growth momentum in China slowed down due to new COVID-19 outbreaks and related control measures, impacting the textile market negatively[47] Market Performance - The company's yarn product sales prices did not keep pace with the rising production costs due to a sluggish market environment[11] - The sales volume of the group's yarn products decreased by 14.7% from approximately 54,897 tons for the six months ended June 30, 2021, to approximately 46,800 tons for the six months ended June 30, 2022[16] - The revenue from yarn product sales fell by 11.1% from approximately RMB 733.4 million for the six months ended June 30, 2021, to approximately RMB 651.8 million for the six months ended June 30, 2022[16] - The group's gross profit decreased from approximately RMB 153.7 million for the six months ended June 30, 2021, to approximately RMB 88.9 million for the six months ended June 30, 2022, with a gross margin decline from 20.0% to 12.8%[26] - The reported segment profit for the six months ended June 30, 2022, was RMB 52,428,000, a significant decrease of 54.3% from RMB 114,546,000 in the prior year[116] Production and Operations - The production volume of PSF decreased by 25.8% from approximately 17,036 tons for the six months ended June 30, 2021, to approximately 12,633 tons for the six months ended June 30, 2022[21] - The group plans to stop operations at Xinyuan to preserve financial resources and focus on core business due to the unfavorable market conditions[23] - The company decided to cease PSF production at Xinyuan on July 9, 2022, with an estimated employee termination cost of approximately RMB 400,000[48] - The company plans to enhance automation in production to reduce labor costs and strengthen its competitive advantage[47] - The group has invested in a new highly automated workshop with a capacity of 50,000 spindles, which is expected to enhance production efficiency and reduce labor costs[21] Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately RMB 697.2 million, a decrease of 9.2% or approximately RMB 70.7 million compared to the same period last year[25] - Profit attributable to owners decreased by approximately RMB 68.4 million or 67.0%, from approximately RMB 102.1 million to approximately RMB 33.7 million, with a net profit margin decline from 13.3% to 4.8%[34] - Basic earnings per share dropped from approximately RMB 8.15 to approximately RMB 2.69, reflecting the decrease in net profit[35] - The effective tax rate rose to approximately 33.8% for the six months ended June 30, 2022, compared to 14.1% for the same period in 2021, mainly due to the full recognition of deferred tax assets[33] - The company reported a net profit of RMB 33,658,000 for the six months ended June 30, 2022, down 67.6% from RMB 103,936,000 in the same period of 2021[116] Cash Flow and Liquidity - As of June 30, 2022, the group's cash and bank balances were approximately RMB 208.6 million, down from RMB 283.0 million as of December 31, 2021[36] - The company's net current liabilities stood at RMB (165,941) thousand, worsening from RMB (109,615) thousand in the previous year, reflecting a decline in liquidity[75] - Operating cash flow for the six months ended June 30, 2022, was RMB 19,384 thousand, down from RMB 20,865 thousand in the same period last year, a decrease of about 7.1%[82] - The company reported a net cash outflow from investing activities of RMB (135,954) thousand, compared to a net inflow of RMB 14,553 thousand in the previous year, indicating a significant shift in investment strategy[82] - The group believes it has adequate financial resources to meet operational funding needs and financial obligations in the foreseeable future[89] Shareholder Information - The board proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2021, but did not recommend an interim dividend for the six months ended June 30, 2022[50] - The company did not buy, sell, or redeem any of its listed shares during the six months ended June 30, 2022[51] - As of June 30, 2022, Mr. Zheng Hong held a 41.07% equity interest in the company, while Mr. Zheng Yongxiang held an 8.62% interest[52] - Major shareholder Popular Trend holds 514,305,000 shares, representing 41.07% of the company's total issued shares[67] Regulatory and Compliance - The implementation of the Uyghur Forced Labor Prevention Act is expected to have a severe negative impact on the Chinese textile export market, affecting the group indirectly[18] - The group has adopted all new and revised International Financial Reporting Standards effective from January 1, 2022, with no significant impact on the financial statements[93] - The company reported no significant contingent liabilities as of June 30, 2022, consistent with the previous year[166]

Financial Performance - The company's revenue increased by 21.3% from approximately RMB 1.421 billion in 2020 to approximately RMB 1.724 billion in 2021[11] - Gross profit and profit attributable to the owners of the company were approximately RMB 317.5 million and RMB 202.5 million, respectively[11] - The company reported total revenue of approximately RMB 1.7243 billion for the year ended December 31, 2021, an increase of 21.3% or approximately RMB 303.2 million from the previous year[26] - Profit attributable to owners for the year ended December 31, 2021, was approximately RMB 202.5 million, an increase of 222.5% or about RMB 139.7 million from RMB 62.8 million for the year ended December 31, 2020[38] - Basic earnings per share for the year ended December 31, 2021, were approximately RMB 0.1617, compared to RMB 0.0501 for the year ended December 31, 2020, reflecting an increase due to higher net profit[39] Dividends and Reserves - The board has proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2021[11] - As of December 31, 2021, the company's distributable reserves were approximately RMB 134 million according to the Cayman Islands Companies Law[77] Market and Economic Conditions - China's GDP growth rate for 2021 was approximately 8.1%, the highest among major global economies[10] - The global economic recovery is expected to continue, despite uncertainties from potential COVID-19 variants and geopolitical tensions[12] - The textile market in China experienced robust growth due to improved consumer confidence and increased retail sales, driven by the successful containment of the pandemic[22] - The company is optimistic about the textile market and aims to leverage favorable market conditions to enhance its competitive position[12] Production and Sales - The company's yarn product sales increased by 3.1% to approximately 119,901 tons for the year ended December 31, 2021, compared to 116,242 tons in the previous year[21] - Yarn product revenue rose by 26.4% to approximately RMB 1.6409 billion for the year ended December 31, 2021, up from approximately RMB 1.2979 billion in the previous year[21] - The overall average selling price of yarn products increased by 22.6% to approximately RMB 13,685 per ton for the year ended December 31, 2021, compared to RMB 11,165 per ton in the previous year[26] - The production of polyester short fibers (PSF) increased by 20.1% to approximately 34,117 tons for the year ended December 31, 2021, despite a decrease in sales volume[22] Expenses and Financial Management - Distribution and selling expenses for the year ended December 31, 2021, were approximately RMB 27.1 million, an increase of 2.3% or about RMB 0.6 million from RMB 26.5 million for the year ended December 31, 2020, representing 1.6% of total revenue[33] - Administrative expenses for the year ended December 31, 2021, were approximately RMB 57.5 million, an increase of 16.9% or about RMB 8.3 million from RMB 49.2 million for the year ended December 31, 2020, accounting for 3.3% of total revenue[34] - Financial costs for the year ended December 31, 2021, were approximately RMB 24.7 million, a decrease of 16.0% or about RMB 4.7 million from RMB 29.4 million for the year ended December 31, 2020[35] - Income tax expenses for the year ended December 31, 2021, were approximately RMB 31.0 million, an increase of 134.8% or about RMB 17.8 million from RMB 13.2 million for the year ended December 31, 2020, with an effective tax rate of 13.2%[36] Corporate Governance - The company has established a remuneration committee, nomination committee, and audit committee, ensuring proper governance and oversight[134] - The board consists of one executive director, one non-executive director, and three independent non-executive directors, meeting the listing rules requirements[126] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[130] - The company has complied with the corporate governance code as per the listing rules during the year ended December 31, 2021[123] Risk Management and Compliance - The board believes that the risk management and internal control systems are appropriate and effective, with no significant improvements needed[164] - The group is committed to ensuring compliance with relevant laws and regulations through its risk management and internal control systems[164] - The company closely monitors the impact of the COVID-19 pandemic on its business and adjusts its product mix and sales strategies accordingly[158] Future Plans and Investments - The company is constructing a highly automated workshop with a capacity of 50,000 spindles, which began construction in Q3 2021[11] - The company acquired the remaining minority interests in Jiangxi Xinyuan Special Fiber Co., Ltd. to strengthen its upstream business interests[11] - The company aims to improve production efficiency through increased automation and better product mix and pricing strategies[52] Shareholder Engagement - The company emphasizes the importance of effective communication with shareholders and investors through various channels, including interim reports and annual reports published on the stock exchange and the company's website[165] - Shareholders holding at least 10% of the voting rights can request a special general meeting within two months to address specified matters[167] - The company encourages shareholders to participate in annual general meetings to express their opinions and exercise their voting rights[165]

中國織材控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3778 中期報 告 2021 目 錄 2 公司資料 4 管理層討論與分析 10 企業管治及其他資料 14 簡明綜合損益及其他全面收益表 15 簡明綜合財務狀況表 17 簡明綜合權益變動表 18 簡明綜合現金流量表 19 簡明綜合財務資料附註 公司資料 | --- | --- | |----------------------------------------------------|--------------------------------| | 董事會（「董事會」） | 公司秘書 | | 執行董事 | 張志輝先生 | | 鄭永祥先生 | 授權代表 | | 非執行董事 鄭洪先生 （主席） | 鄭洪先生 | | 獨立非執行董事 | 張志輝先生 | | 張百香女士 許貽良先生 | 註冊辦事處 | | | | | 李國興先生 | Cricket Square | | | | | | Hutchins Drive | | | P.O. Box 2681 | | 董事委員會 | | | | Grand Cayman KY1-1111 | | ...

ANNUAL REPORT 2020 年報 CHINA WEAVING MATERIALS HOLDINGS LIMITED 中國織材控股有限公司 CHINA WEAVING MATERIALS HOLDINGS LIMITED 中國織材控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock code: 3778 ANNUAL REPORT 2020 (於開曼群島註冊成立的有限公司) 股份代號 : 3778 年 報 2020 目 錄 2 公司資料 4 主席報告 5 管理層討論與分析 12 董事會報告 22 企業管治報告 31 董事及高級管理層 34 獨立核數師報告 41 綜合損益及其他全面收益表 42 綜合財務狀況表 44 綜合權益變動表 45 綜合現金流量表 47 綜合財務報表附註 120 五年財務摘要 公司資料 | --- | --- | |------------------------------|---------------------------------------| | | | | 董事會（「董事會」 ...

中期報告 2020 中國織材控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3778 | --- | --- | --- | --- | --- | |-------|-------|-------|------------------------------|-------| | | | 目 | 錄 | | | | | 2 | 公司資料 | | | | | 4 | 管理層討論與分析 | | | | | 10 | 企業管治及其他資料 | | | | | 15 | 簡明綜合損益及其他全面收益表 | | | | | 16 | 簡明綜合財務狀況表 | | | | | 18 | 簡明綜合權益變動表 | | | | | 19 | 簡明綜合現金流量表 | | | | | 20 | 簡明綜合財務資料附註 | | 公司資料 | --- | --- | |--------------------------------|-----------------------------------| | 董事會（「董事會」） | 公司秘書 | | 執行董事 | 張志輝先生 | | 鄭永祥先生 非執行董事 | 授權代表 | ...

年 CHINA WEAVING MATERIALS HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) Stock code: 3778 報 ２００１９9 中國織材控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3778 | --- | --- | --- | --- | --- | |-------|-------|-------|--------------------------|-------| | | | 目 | 錄 | | | | | 2 | 公司資料 | | | | | 4 | 主席報告 | | | | | 5 | 管理層討論與分析 | | | | | 10 | 董事會報告 | | | | | 21 | 企業管治報告 | | | | | 30 | 董事及高級管理層 | | | | | 33 | 獨立核數師報告 | | | | | 39 | 綜合損益及其他全面收益表 | | | | | 40 | 綜合財務狀況表 | | | | | 42 | 綜合權益變動表 | | | | | 43 ...

CHINA WEAVING MATERIALS HOLDINGS LIMITED 中國織材控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock code: 3778 (於開曼群島註冊成立的有限公司) 股份代號: 3778 the and and the rio 中期報 告 Interim Report 201 9 201 9 � 15 16 ((man and many) () = e a p . . o e (10) = er f the star the 0 a � 4 e e e o e . w . line l a fe i Tu he l og . re l 6 e e n e 6 e . . 目 2 公司資料 4 管理層討論與分析 10 企業管治及其他資料 簡明綜合損益及其他全面收益表 簡明綜合財務狀況表 18 簡明綜合權益變動表 19 簡明綜合現金流量表 20 簡明綜合財務資料附註 p the y ri t - T 4: . . . C t a e . a [ T " )■S e N 202 1 - v ...

中國織材控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3778 年 報2018 | --- | --- | --- | |-------|--------------------------|-------| | 目 | 錄 | | | 2 | 公司資料 | | | 4 | 主席報告 | | | 5 | 管理層討論與分析 | | | 11 | 董事會報告 | | | 22 | 企業管治報告 | | | 30 | 董事及高級管理層 | | | 33 | 獨立核數師報告 | | | 37 | 綜合損益及其他全面收益表 | | | 38 | 綜合財務狀況表 | | | 40 | 綜合權益變動表 | | | 41 | 綜合現金流量表 | | | 43 | 綜合財務報表附註 | | | 118 | 五年財務摘要 | | 公司資料 | --- | --- | |------------------------------------------------|--------------------------------| | 董事會（「董事會」） | 公司秘書 | | 執行董事 | 張志輝先生 | | ...