Financial Performance - The group's revenue decreased from approximately RMB 98,180,000 in 2021 to about RMB 79,000,000 in 2022, a decline of approximately 19.54%[5] - The net loss for the year was approximately RMB 35,580,000, an increase of about RMB 16,760,000 or 89.03% compared to the previous year's loss of RMB 18,820,000[7] - The basic and diluted loss per share for 2022 was approximately RMB 3.35, compared to RMB 1.77 in 2021[7] - The company recorded revenue of approximately RMB 79,000,000 for the year ended December 31, 2022, a decrease of 19.54% compared to the same period in 2021[14] - Gross loss amounted to approximately RMB 12,070,000, primarily due to significant increases in raw material, labor, and dyeing costs[14] - Other income and gains decreased by approximately RMB 1,760,000 or 37.25%, mainly due to losses from the sale of waste materials[15] - Selling and distribution costs increased significantly by approximately RMB 1,580,000 or 90.11%, attributed to higher transportation expenses and freight costs[16] - The company reported a loss of approximately RMB 35,580,000 for the period, an increase of approximately RMB 16,760,000 or 89.03% compared to the same period in 2021[22] - The loss per share for the period was approximately RMB 3.35, compared to approximately RMB 1.77 in 2021[23] - Total revenue for the year 2022 was RMB 78,998,000, a decrease of 19.5% compared to RMB 98,184,000 in 2021[180] - Gross loss for 2022 was RMB 12,069,000, compared to a gross profit of RMB 450,000 in 2021[180] - Net loss for the year 2022 was RMB 35,576,000, which is a significant increase from the net loss of RMB 18,820,000 in 2021[180] Operational Strategy - The company plans to enhance R&D investment to develop more trendy fabric products and shift from price competition to differentiated competition[10] - The strategy includes improving production efficiency and stabilizing product quality by reducing redundancy in personnel[10] - The group aims to expand both domestic and export sales of woven fabrics to mitigate risks associated with a single market[10] - The company intends to optimize its supply chain structure to enhance operational efficiency[10] - The group continued to innovate and develop new products to meet customer demands and increase sales orders during the year ended December 31, 2022[36] - The group actively participated in various trade fairs in China to enhance market visibility and promote new products during the year ended December 31, 2022[37] Financial Position - As of December 31, 2022, inventory was approximately RMB 19,040,000, a decrease of approximately RMB 8,930,000 or 31.98% from the previous year[25] - Accounts receivable and other receivables decreased by approximately RMB 7,270,000 or 21.89%, primarily due to a reduction in accounts receivable[27] - Cash and cash equivalents increased by approximately RMB 16,010,000, reaching approximately RMB 46,980,000 as of December 31, 2022[28] - Contract liabilities decreased by approximately RMB 4,850,000 or 61.07%, consistent with the decline in sales and subcontracting income[30] - As of December 31, 2022, the amount payable to the direct holding company Guizhou Yongli was approximately RMB 33,730,000, an increase of about RMB 15,470,000 or 84.77% compared to RMB 18,250,000 as of December 31, 2021[32] - Domestic sales of woven fabrics decreased by approximately RMB 25,500,000 or 31.52% due to the COVID-19 pandemic, while export sales increased by approximately RMB 8,400,000 or 68.02%[33] - The group's current assets and net current assets as of December 31, 2022, were approximately RMB 100,930,000 and RMB 57,630,000, respectively, compared to RMB 92,170,000 and RMB 63,180,000 as of December 31, 2021[39] - The current ratio of the group was approximately 2.33 as of December 31, 2022, down from 3.18 as of December 31, 2021[39] - Non-current assets decreased to RMB 144,962,000 in 2022 from RMB 184,719,000 in 2021, reflecting a decline of 21.5%[183] - Current assets increased to RMB 100,929,000 in 2022 from RMB 92,168,000 in 2021, representing an increase of 9.2%[183] - Total liabilities decreased to RMB 43,295,000 in 2022 from RMB 28,990,000 in 2021, indicating a rise of 49.4%[183] - The company's total equity as of December 31, 2022, was RMB 173,033,000, down from RMB 221,171,000 in 2021, a decrease of 21.8%[185] Governance and Compliance - The board is committed to maximizing shareholder value by reducing costs and increasing revenue while providing quality products[11] - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[98] - The company has established a remuneration committee to formulate the remuneration policies for all directors and senior management[85] - The audit committee, consisting of three independent non-executive directors, reviewed the company's financial reporting procedures and internal control systems[84] - The company has adopted a code of conduct for securities trading by directors and supervisors, ensuring compliance with GEM Listing Rules[96] - The company has communicated with shareholders regarding the revolving loan details through announcements and circulars[139] - The board acknowledges its responsibility to evaluate and determine the nature and extent of risks the company is willing to accept[135] - The company has established a risk management system with a structured framework to identify, assess, and prioritize risks[136] - The company has implemented policies and procedures for handling and disclosing insider information to protect sensitive data[135] - The board will ensure that there are no gender restrictions when electing directors[134] Audit and Financial Reporting - The consolidated financial statements for the year ended December 31, 2022, were audited by Shinewing (HK) CPA Limited[90] - The audit report aims to provide reasonable assurance that the financial statements are free from material misstatement due to fraud or error[173] - The audit team communicated with the audit committee regarding the audit scope and significant findings[175] - The total audit service fees paid for the fiscal year ending December 31, 2022, amounted to RMB 774,000[112] - The company is responsible for preparing financial statements that are true and fair according to relevant accounting standards[171] - The independent auditor's report was issued by partner Chen Jiawei[178] Future Outlook - The management believes that the textile industry will have opportunities for recovery in 2023 following changes in COVID-19 policies and improving global trends[9] - The company anticipates that these changes will facilitate better decision-making for investors and management[200] - The company will continue to monitor the implications of these standards on its financial reporting practices[200]

浙 江 永 安 融 通 控 股 股 份 有 限 公 司 ZHEJIANG YONGAN RONGTONG HOLDINGS CO., LTD.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：8211） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場，此 等 公 司 相 比 起 其 他在聯交所上市的公司帶有較高投資風險。有意投資的人士應瞭解投資 於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主 板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證 券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本文件之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本文件全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本文件的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載， ...

Financial Performance - For the nine months ended September 30, 2022, the group's revenue decreased from approximately RMB 68,610,000 to approximately RMB 60,360,000, representing a decline of about 12.01% compared to the same period in 2021[5]. - The net loss for the nine months ended September 30, 2022, was approximately RMB 14,620,000[5]. - For the three months ended September 30, 2022, the revenue was RMB 21,093,000, compared to RMB 12,109,000 for the same period in 2021[7]. - The gross loss for the three months ended September 30, 2022, was RMB 820,000, compared to a gross loss of RMB 1,289,000 for the same period in 2021[7]. - The loss before tax for the nine months ended September 30, 2022, was RMB 14,393,000, compared to RMB 18,355,000 for the same period in 2021[7]. - The basic loss per share for the nine months ended September 30, 2022, was 1.37 cents, compared to 1.72 cents for the same period in 2021[7]. - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2022[5]. - The total revenue for the nine months ended September 30, 2022, was RMB 60,364,000, down from RMB 68,605,000 in the same period of 2021, indicating a decline of 12.0%[28]. - The company reported a loss of approximately RMB 14,620,000 for the period, a decrease of RMB 3,730,000 or 20.32% compared to the same period in 2021[61]. - The loss per share for the period was approximately RMB 1.37, compared to RMB 1.72 in the previous year[62]. Expenses and Costs - Administrative expenses for the nine months ended September 30, 2022, were RMB 7,605,000, down from RMB 11,703,000 in the same period of 2021[7]. - The total employee costs for the three months ended September 30, 2022, were RMB 8,695,000, compared to RMB 4,026,000 in the same period of 2021, showing a significant increase of 116.6%[39]. - Research and development costs recognized as expenses for the nine months ended September 30, 2022, were RMB 424,000, compared to RMB 212,000 in the same period of 2021, indicating a 100.0% increase[39]. - Sales and distribution costs surged by approximately RMB 1,270,000 or 116.21%, mainly due to increased transportation and freight costs associated with higher export sales[55]. - Administrative expenses decreased by approximately RMB 4,100,000 or 35.02%, primarily due to the reversal of excess provisions for trade receivables from the previous year[56]. Revenue Sources - Domestic sales of woven fabrics decreased by approximately RMB 21,580,000 or 28.16%, while subcontracting income also fell by approximately RMB 3,710,000 or 59.83% due to sporadic COVID-19 outbreaks in China[64]. - Government subsidies received during the nine months ended September 30, 2022, amounted to RMB 119,000, consistent with the previous year, which also received RMB 119,000[30]. - The company reported a net gain from foreign exchange of RMB 12,000 for the nine months ended September 30, 2022, compared to a loss of RMB 76,000 in the same period of 2021[28]. Business Operations and Strategy - The group primarily engages in the manufacturing, research and development, and sales of woven fabrics, as well as providing subcontracting and asset management services[23]. - The company plans to continue developing new sales channels and researching high-quality products to attract high-end customers amid a challenging business environment[64]. - The company continued to innovate and develop new products to meet customer demands and enhance sales orders during the nine-month period ending September 30, 2022[69]. - The company actively prepared to participate in various trade fairs in China to increase its visibility in the textile market and promote new products during the nine-month period ending September 30, 2022[70]. - The board anticipates that woven fabric exports will gradually return to pre-pandemic levels, while high-end women's woven fabric is expected to experience significant market volatility[71]. - The company aims to implement effective measures to increase sales, reduce costs, enhance liquidity, and make capital expenditures based on its core business[71]. Shareholder Information - As of September 30, 2022, the major shareholder, Guizhou Yongli, holds 588,000,000 shares, representing 55.29% of the total issued shares[77]. - The company’s H shares, with a par value of RMB 0.1, had a major shareholder, Everbright Group (Hong Kong), holding 208,530,000 shares, which is approximately 43.85% of the H shares[82]. - No directors, supervisors, or controlling shareholders have any interests in businesses that compete or may compete with the company during the review period[83]. Governance and Compliance - The Audit Committee has been established according to GEM Listing Rules and consists of three independent non-executive directors[84]. - The Audit Committee reviewed the unaudited financial results for the three months ended March 31, 2022, six months ended June 30, 2022, and nine months ended September 30, 2022, confirming compliance with applicable accounting standards and GEM Listing Rules[84]. - No purchase, sale, or redemption of the company's listed securities occurred during the nine months ended September 30, 2022[88].

Financial Performance - For the three months ended March 31, 2022, the group's revenue decreased from approximately RMB 16,788,000 to approximately RMB 14,946,000, a decline of about 10.97% compared to the same period in 2021[5]. - The net loss for the period was approximately RMB 4,577,000[7]. - Gross loss for the period was RMB 1,084,000, compared to a gross loss of RMB 153,000 in the same period last year[7]. - The loss before tax was RMB 4,010,000, compared to a loss of RMB 5,056,000 in the same period last year[7]. - Basic and diluted loss per share was 0.43 cents, compared to 0.48 cents in the same period last year[7]. - The gross loss for the same period was approximately RMB 1,080,000, primarily due to significant increases in raw material, labor, and electricity costs[48]. - The loss for the period was approximately RMB 4,577,000, a decrease of about RMB 479,000 or 9.47% compared to the same period in 2021, attributed to improved financial performance of the associates[56]. - Earnings per share for the period were approximately RMB 0.43, compared to RMB 0.48 in the previous year[57]. Administrative and Other Expenses - Administrative expenses decreased from RMB 2,933,000 to RMB 1,794,000, a reduction of approximately 38.8%[7]. - Administrative expenses decreased by approximately RMB 1,140,000 or about 38.83%, mainly due to the reversal of excess provisions for expected credit losses on trade receivables from 2021[51]. - The financing costs increased slightly from RMB 476,000 to RMB 536,000[7]. - The financing cost for the three months ended March 31, 2022, was RMB 536,000, an increase from RMB 476,000 in the same period of 2021[31]. - Other income and gains decreased by approximately RMB 78,000 or about 21.67% compared to the same period in 2021, as there were no refunds of retirement benefit plan contributions during this period[49]. - The company reported other income and gains of RMB 282,000, down from RMB 360,000 in the previous year[7]. Dividend and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2022[5]. - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2022[38]. - The company holds a 55.29% equity interest in Guizhou Yong'an, represented by 588,000,000 shares[68]. - As of March 31, 2022, Yongxing Group (Hong Kong) owns approximately 43.85% of the company's issued H shares, totaling 208,530,000 shares[71]. Sales and Market Conditions - Domestic and export sales of woven fabrics decreased by approximately RMB 726,000 or about 4.46%, with subcontracting revenue also declining by approximately RMB 1,120,000 or about 217.12% due to COVID-19 impacts[58]. - The company experienced a significant decline in demand for its products due to the COVID-19 pandemic, affecting both local and overseas customers[48]. - Selling and distribution costs surged by approximately RMB 693,000 or about 228.71%, mainly due to increased logistics and freight costs[49]. - The board anticipates significant market volatility for high-end women's woven fabrics, despite an increase in sales orders during the period[62]. Strategic Initiatives - The company continues to innovate and develop new products to meet customer demands and enhance sales orders[61]. - The company is committed to maintaining financial strength and will continue to implement measures to improve efficiency, reduce costs, and enhance liquidity[58]. - The company plans to undertake capital expenditures based on its core business to increase sales and reduce costs[62]. - New business in industrial circulating water treatment has been initiated, addressing issues such as scaling and corrosion, primarily targeting clients in the power, chemical, steel, and machinery manufacturing sectors[60]. Compliance and Audit - The audit committee has reviewed the unaudited financial results for the three months ending March 31, 2022, and confirmed compliance with applicable accounting standards and GEM listing rules[73]. - There were no purchases, sales, or redemptions of the company's listed securities during the three-month period ending March 31, 2022[77].

Financial Performance - For the year ended December 31, 2021, the group's revenue increased to approximately RMB 98,180,000, representing a growth of about 25.91% compared to approximately RMB 77,980,000 for the year ended December 31, 2020[7]. - The group recorded a loss of approximately RMB 18,820,000 for the year, a decrease in loss of about RMB 9,870,000 or 34.4% compared to a loss of approximately RMB 28,690,000 in 2020[12]. - Basic and diluted loss per share for the year was approximately RMB 1.77, compared to RMB 2.7 in 2020[12]. - Gross profit decreased significantly by approximately RMB 1,980,000 or 81.46% to about RMB 450,000, primarily due to price declines and increased costs[12]. - Other income and gains increased by approximately RMB 2,280,000 or about 93.56% compared to the previous year, mainly from the sale of waste materials and gains from the sale of old properties and equipment[24]. - Selling and distribution costs increased by approximately RMB 454,000 or about 35.03%, primarily due to increased transportation expenses and exhibition costs[25]. - Administrative expenses rose by approximately RMB 1,569,000 or about 9.34%, mainly due to increased employee salaries in 2021[26]. - Financing costs for the period were approximately RMB 2,017,000, a significant decrease of about RMB 4,570,000 or 69.38% compared to the same period last year[29]. - The loss for the period was approximately RMB 18,820,000, a reduction of about RMB 9,871,000 or 34.4% compared to the same period last year[30]. - The loss per share for the period was approximately RMB 1.77, compared to RMB 2.7 in the previous year[31]. Revenue and Sales - The company recorded revenue of approximately RMB 98,180,000 for the year ended December 31, 2021, representing an increase of about 25.91% compared to the same period in 2020, primarily driven by sales of woven fabrics and subcontracting fees[23]. - Domestic and export sales of woven fabrics increased by approximately RMB 18,330,000 or 24.47% during the period[43]. Inventory and Receivables - Inventory as of December 31, 2021, was approximately RMB 27,970,000, a decrease of about RMB 7,540,000 or 21.24% from the previous year[35]. - Trade receivables and other receivables increased by approximately RMB 3,290,000 or 10.97%, totaling RMB 33,230,000 as of December 31, 2021[36]. - Cash and bank balances decreased by approximately RMB 667,000, totaling RMB 30,970,000 as of December 31, 2021[37]. - Trade payables and other payables increased by approximately RMB 2,920,000 or 16.57%, totaling RMB 20,550,000 as of December 31, 2021[38]. Business Strategy and Development - The company plans to strengthen internal new product development, combining independent development with collaborative development with customers to enhance profitability and market position[14]. - The company aims to strictly control inventory levels to respond to relatively high raw material prices, which will help improve cash flow and avoid inventory impairment[15]. - The company plans to enhance procurement, production, and sales efficiency through a digital management platform and aims to reduce electricity costs by implementing photovoltaic rooftop projects[16]. - The company established a wholly-owned subsidiary for building materials trading in early 2022 to capitalize on rapid local development and increase shareholder returns[16]. - The group continued to innovate and develop new products to meet customer demands and increase sales orders during the year ended December 31, 2021[48]. - The group actively participated in various trade fairs in China to enhance its visibility in the textile market and promote new products[49]. Corporate Governance - The company has a comprehensive set of internal control guidelines to reduce investment risks and improve financial data quality[70]. - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[195]. - The company has established a risk management system that identifies, assesses, and prioritizes risks, ensuring effective communication of risk responsibilities[170]. - The audit committee's responsibilities include reviewing the independence and effectiveness of external auditors[137]. - The company has adopted a board diversity policy to ensure diversity in board appointments, including gender diversity[164]. Shareholder and Related Party Transactions - The company provided a revolving loan of up to RMB 35,000,000 to Zhejiang Yongli, which constitutes a related party transaction and requires independent shareholder approval[94]. - The top five suppliers and customers accounted for approximately 50.83% and 30.12% of the group's procurement and revenue, respectively, with the largest supplier and customer accounting for about 28.11% and 9.59%[104]. - The company did not establish any arrangements for directors or supervisors to acquire benefits through shares or debt securities of the company during the year ended December 31, 2021[92]. Employee and Management Information - The group had 281 employees as of December 31, 2021, a decrease from 312 employees in 2020, including an increase in R&D personnel from 2 to 3[56]. - All directors participated in continuous professional development through training courses related to corporate governance and regulations[129]. - The company has established a remuneration committee to formulate compensation policies for all directors and senior management, ensuring a formal and transparent process[110]. Future Outlook - The board anticipates significant market volatility for high-end women's woven fabrics but aims to return to pre-pandemic sales levels as quickly as possible[19]. - The company remains optimistic about the future despite current challenges, focusing on maximizing shareholder capital returns and long-term sustainable development[19].

YONGAN HOLDINGS 浙 江 永 安 融 通 控 股 股 份 有 限 公 司 ZHEJIANG YONGAN RONGTONG HOLDINGS CO., LTD.* (於中華人民共和國註冊成立的股份有限公司) 股份代號 : 8211 * 懂供識別 香港聯合交易所有限公司（「聯交所」）GEM的特色 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 就本 文件共同 及個別地 承擔全部 責任。本 公司董事 在作出 一切合理 查詢後， 確 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯 交所 上市的公 司帶有較 高投資風 險。有意 投資的人 士應瞭 解投資於 該等公司 的 潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 考慮到GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買 賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流 通量的市場。 香港 交易及結 算所有限 公司及聯 交所對本 文件之內 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 不就因本 文件全 部或任何 部分內容 而 本文件的資料乃遵照《聯交所 ...

Financial Performance - The group's revenue increased from approximately RMB 36,690,000 to approximately RMB 56,500,000, representing a growth of about 48.53% compared to the same period in 2020[6]. - The net loss for the six months ended June 30, 2021, was approximately RMB 12,500,000[6]. - The gross profit for the six months ended June 30, 2021, was RMB 226,744, compared to RMB 384,000 for the same period in 2020[9]. - The basic and diluted loss per share was 0.70 cents, compared to 0.95 cents for the same period in 2020[9]. - Total revenue for the six months ended June 30, 2021, was RMB 56,496 thousand, an increase from RMB 36,690 thousand in the same period of 2020, representing a growth of 54%[112]. - The company reported a net loss of RMB 12,498 thousand for the six months ended June 30, 2021, compared to a net loss of RMB 16,273 thousand in the same period of 2020, showing an improvement of 23.5%[84]. - The net loss for the period was approximately RMB 12,498,000, a reduction of about RMB 3,775,000 or 23.20% year-on-year[174]. Revenue Sources - Revenue from the manufacturing and sales of woven fabrics for the six months ended June 30, 2021, was RMB 49,585 thousand, compared to RMB 35,525 thousand in the same period of 2020, reflecting a growth of 39.5%[112]. - The group’s revenue from external customers in China was RMB 51,470 for the six months ended June 30, 2021, up from RMB 31,884 in 2020, representing an increase of approximately 61%[132]. - The revenue from packaging fees rose by approximately RMB 6,040,000 or about 696.2% due to the recovery of business activities in China after the initial COVID-19 outbreak[22]. Expenses and Costs - Total comprehensive expenses for the period amounted to RMB 247,302 thousand, compared to RMB 331,664 thousand in the previous year, indicating a reduction of approximately 25.4%[62]. - The group’s employee costs totaled RMB 9,471 for the six months ended June 30, 2021, compared to RMB 10,119 in 2020, reflecting a decrease of approximately 6.4%[140]. - Sales and distribution costs increased by approximately RMB 119,000 or 18.39% year-on-year, consistent with the increase in revenue during the period[168]. - Administrative expenses decreased by approximately RMB 2,317,000 or 21.68% compared to the same period last year, mainly due to losses from the sale of a subsidiary in 2020[169]. - Financing costs decreased significantly by approximately RMB 2,534,000 or 72.3% compared to the same period last year[173]. Assets and Liabilities - Cash and cash equivalents at the end of the period were RMB 26,780,000, down from RMB 31,635,000 at the beginning of the period[41]. - The total assets less current liabilities amounted to RMB 254,986,000, compared to RMB 266,602,000 in the previous year[11]. - Trade receivables and other receivables increased to RMB 51,531,000 from RMB 29,944,000 in the previous year[11]. - The company reported a significant increase in overdue trade receivables, with amounts over 121 days reaching RMB 7.616 million as of June 30, 2021, compared to RMB 3.893 million at the end of 2020[153]. - Trade payables amounted to RMB 15.480 million as of June 30, 2021, up from RMB 9.068 million as of December 31, 2020, indicating increased liabilities[157]. Operational Challenges - The company faced challenges from labor shortages and rising material costs, which continued to impact manufacturing operations and pricing strategies[166]. - The company continues to monitor the impact of the COVID-19 pandemic on its operations and market demand, adjusting strategies accordingly[166]. - The board anticipates that the demand for woven fabrics will remain very unstable due to ongoing geopolitical tensions and the pandemic's impact[192]. Future Outlook - The group plans to continue expanding its market presence and enhancing its product offerings in the upcoming periods[124]. - The group plans to continue developing new sales channels and high-quality products to attract high-end customers[22]. - The group will manage capital expenditures very prudently while ensuring strategic investment needs are met[192]. Compliance and Governance - The company expects the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on its performance and financial position[107]. - The company is committed to maintaining compliance with the regulations set forth by the Hong Kong Accounting Standards and the GEM listing rules[103]. - The company has established financial risk management policies to ensure all payables are settled within credit terms[152]. Employee and Workforce - The group employed 285 staff as of June 30, 2021, a decrease from 312 as of December 31, 2020[200].

Financial Performance - The group's revenue increased from approximately RMB 12,202,000 to approximately RMB 16,788,000, representing a year-on-year increase of about 37.58%[6] - The net loss for the period was approximately RMB 5,056,000[6] - The gross loss margin for the period was approximately RMB 153,000, with total sales costs amounting to RMB 16,941,000[9] - The loss before tax was RMB 5,056,000, with a basic and diluted loss per share of RMB 0.48[9] - For the three months ended March 31, 2021, the company's revenue from manufacturing and selling woven fabrics was RMB 16,274,000, an increase of 38.5% compared to RMB 11,785,000 in the same period of 2020[32] - The total customer contract revenue for the same period was RMB 16,788,000, up from RMB 12,202,000 in 2020, reflecting a growth of 37.1%[32] - The company reported a net loss of RMB 5,056,000 for the three months ended March 31, 2021, an improvement from a loss of RMB 6,108,000 in the same period of 2020[44] - Basic and diluted loss per share for the period was RMB 0.0047, compared to RMB 0.0057 in the previous year, indicating a reduction in loss per share[44] - The net loss for the period was approximately RMB 5,056,000, a reduction of about RMB 1,052,000 or 17.22% compared to the same period in 2020[52] Expenses and Costs - Administrative expenses for the period were approximately RMB 2,933,000[9] - The company incurred depreciation expenses of RMB 2,309,000 for property, plant, and equipment, which increased from RMB 1,579,000 in the same period of 2020[39] - Interest expenses on interest-free loans from the parent company were RMB 476,000, significantly lower than RMB 1,752,000 in the previous year[37] - Administrative expenses increased by approximately RMB 163,000 or 5.88% due to higher employee salaries[50] - Financing costs decreased significantly by approximately RMB 1,276,000 or 72.83%, attributed to the repayment of interest-free loans[52] Dividends and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the three months ended March 31, 2021[6] - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2021[43] - As of March 31, 2021, the company had a total of 588,000,000 domestic shares, representing approximately 55.29% of the total issued share capital[59] - The major shareholder, Guizhou Yong'an, holds 100% of the domestic shares, which translates to a 55.29% equity interest in the company[59] - The company’s executive director and major shareholders have disclosed their respective equity interests, with no other undisclosed interests reported as of March 31, 2021[58] Business Operations and Strategy - The company primarily engages in the manufacturing and sales of woven fabrics, providing weaving subcontracting services, and asset management services[17] - The company continues to face challenges from ongoing COVID-19 outbreaks in certain overseas markets and the impact of RMB appreciation on exports[53] - The company is actively developing new sales channels and researching high-quality products to attract high-end customers[53] - The company anticipates a challenging business environment due to ongoing risks of new COVID-19 outbreaks, despite the rollout of vaccines and increasing global vaccination numbers[11] - In 2021, the company focused on small-scale water management projects, leveraging existing customer relationships and technology to enhance operational management solutions for government clients[11] - The company reported an improvement in performance in 2021 compared to the previous year, driven by innovation and the development of new products to meet customer demands[11] - The board expects a long road to market recovery and consumer confidence rebuilding, with demand for woven fabrics anticipated to be highly unstable due to escalating tensions between China and the U.S.[11] - The company plans to manage capital expenditures very prudently while ensuring that strategic investment needs in key areas are not compromised[11] - The company continues to prioritize financial strength by implementing measures to improve efficiency, reduce costs, and enhance liquidity in the face of a challenging business environment[11] - The company’s capital management strategy includes careful oversight of expenditures to maintain financial stability while pursuing growth opportunities[11] Audit and Compliance - The audit committee has been established in accordance with GEM Listing Rules and is responsible for reviewing the financial reporting procedures and internal control systems of the group[66] - The audit committee reviewed the unaudited first-quarter results for the period ending March 31, 2021, and confirmed compliance with applicable accounting standards and GEM Listing Rules[66] - No purchase, sale, or redemption of the company's listed securities occurred during the three-month period ending March 31, 2021[68] Government Support - Government subsidies received amounted to approximately RMB 92,000 in the first quarter of 2021, a decrease of 61.2% from RMB 237,000 in the same period of 2020[36]

Financial Performance - For the nine months ended September 30, 2020, the group's revenue decreased from approximately RMB 108,000,000 to approximately RMB 62,120,000, a decline of about 42.48% compared to the same period in 2019[7] - The net loss for the period was approximately RMB 21,330,000[7] - The group reported a gross loss of RMB 171,000 for the three months ended September 30, 2020, compared to a gross profit of RMB 3,261,000 for the same period in 2019[9] - The total comprehensive loss for the nine months ended September 30, 2020, was RMB 21,329,000, compared to RMB 11,190,000 for the same period in 2019[9] - Basic and diluted loss per share for the nine months ended September 30, 2020, was 2.01 cents, compared to 1.05 cents for the same period in 2019[9] - The company reported a loss of RMB 21,329,000 for the nine months ended September 30, 2020, compared to a loss of RMB 11,190,000 in the same period in 2019[38] Revenue and Sales - For the three months ended September 30, 2020, the company's revenue from manufacturing and selling woven fabrics was RMB 25,128,600, a decrease of 35.4% compared to RMB 38,928,943 for the same period in 2019[21] - For the nine months ended September 30, 2020, total revenue was RMB 60,653,000, down 42.5% from RMB 105,232,000 in the same period of 2019[21] - Domestic and export sales declined by approximately 42.39%, with subcontracting income also dropping sharply by about 46.97%, primarily due to the impact of COVID-19[46] Expenses and Costs - The group’s financing costs for the nine months ended September 30, 2020, were RMB 5,257,000, compared to RMB 4,447,000 for the same period in 2019[9] - The total employee costs for the nine months ended September 30, 2020, were RMB 15,153,000, a decrease of 28.0% from RMB 21,026,000 in the same period of 2019[35] - Administrative expenses decreased by approximately RMB 2,430,000 or 15.23%, mainly due to cost-saving measures implemented in response to COVID-19[42] - Sales and distribution costs decreased by approximately RMB 12,130,000 or 57.53%, reflecting the overall decline in revenue[45] Dividends and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the nine months ended September 30, 2020[7] - The company did not recommend any interim dividend for the three months and nine months ended September 30, 2020, and 2019[36] - As of September 30, 2020, the company has a total issued capital of 1,063,000,000 shares, with Guizhou Yong'an holding 588,000,000 shares, representing approximately 55.29% of the total issued capital[58] - The major shareholder, Zhejiang Yongli, holds 100% of the domestic shares, which translates to 588,000,000 shares, indicating a strong control over the company[58] Government Support and Subsidies - The company received government subsidies totaling approximately RMB 1,958,000 during the nine months ended September 30, 2020, compared to RMB 6,000 in the same period of 2019[26] Operational Measures and Future Plans - The company plans to invest more resources to develop and expand its domestic market share to mitigate market risks[46] - The company is actively preparing to participate in various trade fairs in China to enhance its visibility in the textile market and promote new products[51] - The company continues to innovate and develop new products to meet customer demands and enhance sales orders[50] Audit and Compliance - The audit committee has reviewed the unaudited financial results for the three months, six months, and nine months ending September 30, 2020, and found them compliant with applicable accounting standards and regulations[65] - The audit committee consists of three independent non-executive directors, ensuring oversight of the financial reporting process[63] Market Outlook and Challenges - The economic outlook for China is expected to be more challenging in the second half of 2020 due to escalating tensions in US-China relations and the global spread of COVID-19, impacting the financial crisis[53] - The company has implemented several measures to mitigate the negative impacts of the pandemic on its operations, although these measures will only be effective once the situation stabilizes[53] - The board of directors continues to assess the impact of the pandemic on the company's operations and financial performance, closely monitoring risks and uncertainties[53] - The company has a strong leadership team, with the board confident in its ability to navigate the upcoming challenges in 2020[53]

Financial Performance - For the six months ended June 30, 2020, the group's revenue decreased to approximately RMB 36,390,000, down by about 46.59% compared to RMB 68,130,000 for the same period in 2019[6] - The net loss for the six months ended June 30, 2020, was approximately RMB 15,140,000, compared to a net loss of RMB 6,116,000 for the same period in 2019[6] - The gross profit for the six months ended June 30, 2020, was RMB 970,000, a significant decrease from RMB 6,046,000 in the same period of 2019[9] - The group reported a total comprehensive loss of RMB 15,140,000 for the six months ended June 30, 2020, compared to a loss of RMB 6,116,000 for the same period in 2019[24] - The accumulated losses as of June 30, 2020, reached RMB 330,052,000, compared to RMB 271,862,000 as of June 30, 2019[24] - The group reported a loss before tax of RMB 15,092,000 for the six months ended June 30, 2020, compared to a loss of RMB 5,759,000 for the same period in 2019[32] - The loss per share for the six months ended June 30, 2020, was approximately RMB 1.42, compared to RMB 0.58 for the same period in 2019[63] Revenue and Sales - Total revenue for the six months ended June 30, 2020, was RMB 36,393,000, a decrease of 46.8% compared to RMB 68,129,000 for the same period in 2019[26] - The manufacturing and sales of woven fabrics generated revenue of RMB 24,488,000 for the six months ended June 30, 2020, down from RMB 33,902,000 in the same period of 2019, reflecting a decline of 27.9%[26] - Revenue from external customers in China was RMB 31,587,000 for the six months ended June 30, 2020, down 47.0% from RMB 59,636,000 in 2019[34] - Domestic and export sales decreased by approximately 46.42% and subcontracting income dropped by about 52.44% due to the impact of COVID-19 and strained US-China relations[62] Cash Flow and Assets - The cash and cash equivalents at the end of the period were RMB 26,560,000, a decrease from RMB 46,896,000 at the beginning of the period[13] - The operating cash flow for the six months ended June 30, 2020, was a net outflow of RMB 7,177,000, compared to a net inflow of RMB 1,025,000 for the same period in 2019[13] - The total assets less current liabilities as of June 30, 2020, amounted to RMB 274,234,000, down from RMB 297,339,000 as of December 31, 2019[11] - The group’s total assets as of June 30, 2020, were RMB 231,809,000, a decrease from RMB 288,113,000 as of June 30, 2019[24] - The group’s current assets and net current assets as of June 30, 2020, were approximately RMB 102,270,000 and RMB 71,390,000, respectively[73] Liabilities and Financing - The company reported a significant increase in financing costs, which amounted to RMB 3,505,000 for the six months ended June 30, 2020, compared to RMB 2,965,000 for the same period in 2019[9] - The group’s total liabilities as of June 30, 2020, were RMB 42,425,000, down from RMB 50,037,000 as of December 31, 2019[11] - The company partially repaid RMB 11,000,000 of the principal amount owed to Guizhou Yong'an, representing approximately 4.79% of the outstanding principal of RMB 229,475,000 as of December 31, 2019[53] - As of June 30, 2020, the remaining principal amount owed to Guizhou Yong'an was RMB 218,475,000, down from RMB 229,475,000 as of December 31, 2019[53] - The group’s financing costs amounted to approximately RMB 3,510,000 for interest on interest-free loans from its parent company[62] Government Support and Other Income - The group received government subsidies totaling approximately RMB 1,908,000 during the six months ended June 30, 2020, compared to RMB 6,000 in 2019, indicating a significant increase in support[27] - The group’s other income and gains for the six months ended June 30, 2020, amounted to RMB 2,702,000, compared to RMB 1,555,000 for the same period in 2019, showing an increase of 73.5%[26] - Other income and gains increased by approximately RMB 1,150,000, mainly due to government subsidies received during the six months ended June 30, 2020[60] Operational Changes and Strategies - The group’s financial performance was impacted by a significant decrease in sales due to market conditions, necessitating a review of operational strategies moving forward[19] - The company continues to focus on the manufacturing and sales of woven fabrics, subcontracting services, and asset management services as its core business segments[19] - The group plans to invest more resources to develop and expand its domestic market share to mitigate market risks[66] - The group continues to innovate and develop new products to meet customer demands and enhance sales orders[69] Employee and Administrative Costs - Employee costs totaled RMB 10,119,000 for the six months ended June 30, 2020, down from RMB 13,431,000 in the same period of 2019, reflecting a decrease of 25.5%[40] - Administrative expenses increased by approximately RMB 1,240,000 or 13.13%, primarily due to losses from the sale of a subsidiary and impairment losses on trade receivables[60] Corporate Governance - The company has established an audit committee to review financial reporting and internal controls, consisting of three independent non-executive directors[90] - The company has complied with all corporate governance code provisions as per GEM Listing Rules during the six months ending June 30, 2020[92] Shareholder Information - Major shareholders include Guizhou Yong'an with 588,000,000 shares, representing 55.29% of total issued capital, and Zhejiang Yongli, which holds a similar stake[86]