[Key Financial Data and Operating Performance](index=1&type=section&id=%E4%B8%80%E3%80%81%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In Q1 2023, operating revenue declined by 22.69% due to international trade, but net profit attributable to shareholders turned profitable at **15.87 million yuan** primarily due to fair value changes of financial assets, while core business remained at a loss with narrowed operating losses and negative operating cash flow Key Financial Data and Operating Performance Table | Item | Current Period (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 161.09 | -22.69% | | Net Profit Attributable to Shareholders | 15.87 | N/A (Turned Profitable) | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -14.29 | N/A | | Net Cash Flow from Operating Activities | -12.59 | N/A | | Total Assets (Period-End) | 969.12 | -0.70% (vs. Year-End) | | Shareholders' Equity Attributable to Shareholders (Period-End) | 458.60 | 3.58% (vs. Year-End) | - Total non-recurring gains and losses for the period amounted to **30.16 million yuan**, primarily driven by fair value changes from held-for-trading financial assets totaling **29.04 million yuan**, which was a key factor for the company's profitability this period[7](index=7&type=chunk) - The company explained changes in key financial indicators: - **Operating revenue decreased** primarily due to international trade conditions - **Net profit attributable to shareholders turned profitable** mainly due to fair value changes of Xiangcai Securities shares - **Loss in net profit attributable to shareholders (excluding non-recurring items) narrowed** mainly due to reduced operating losses after personnel reallocation at subsidiary Dongma Company[8](index=8&type=chunk) [Shareholder Structure](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) As of the end of the reporting period, the company had 22,266 common shareholders, with the largest shareholder being state-owned Hunan Xingxiang Investment Holding Group Co., Ltd., holding 40.31%, indicating a relatively concentrated and stable equity structure, and no related party relationships or concerted actions among shareholders were disclosed - As of the end of the reporting period, the company had **22,266** common shareholders[10](index=10&type=chunk) Shareholder Structure Table | Shareholder Name | Shareholder Type | Shareholding (%) | | :--- | :--- | :--- | | Hunan Xingxiang Investment Holding Group Co., Ltd. | State-owned Legal Entity | 40.31 | | An Tongliang | Domestic Individual | 2.55 | | Ou Yanwu | Domestic Individual | 1.72 | | Yu E | Domestic Individual | 0.70 | | Li Yaochu | Domestic Individual | 0.62 | [Quarterly Financial Statement Analysis](index=4&type=section&id=%E5%9B%9B%E3%80%81%20%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the unaudited Q1 2023 consolidated financial statements, including the balance sheet, income statement, and cash flow statement, revealing operational challenges and reliance on investment income despite minor changes in total assets and liabilities [Consolidated Balance Sheet](index=4&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2023, total assets were **969.12 million yuan**, a slight decrease of 0.70% from year-end, total liabilities were **542.80 million yuan**, down 3.05%, and shareholders' equity attributable to the parent company increased to **458.60 million yuan**, up 3.58% due to current period profitability Consolidated Balance Sheet Table | Item | March 31, 2023 (Million Yuan) | December 31, 2022 (Million Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 969.12 | 975.91 | -0.70% | | Total Liabilities | 542.80 | 559.88 | -3.05% | | Total Shareholders' Equity Attributable to Parent Company | 458.60 | 442.73 | +3.58% | [Consolidated Income Statement](index=6&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2023, operating revenue was **161.09 million yuan**, a 22.69% year-on-year decrease; however, operating profit and net profit turned profitable, with net profit attributable to the parent company at **15.87 million yuan** (vs. a loss of **39.69 million yuan** in prior year), primarily due to fair value change gains shifting from a **24.44 million yuan** loss to a **22.02 million yuan** gain Consolidated Income Statement Table | Item | Q1 2023 (Million Yuan) | Q1 2022 (Million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 161.09 | 208.37 | -22.69% | | Operating Profit | 14.52 | -49.36 | Turned Profitable | | Net Profit | 10.28 | -43.27 | Turned Profitable | | Net Profit Attributable to Parent Company Shareholders | 15.87 | -39.69 | Turned Profitable | - The core driver for the turnaround to profitability was 'fair value change gains', which significantly shifted from a **-24.44 million yuan** loss in the prior year to a **22.02 million yuan** gain in the current period, representing a substantial difference[15](index=15&type=chunk) [Consolidated Cash Flow Statement](index=7&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, all three cash flow activities (operating, investing, financing) were net outflows, with operating activities at **-12.59 million yuan**, investing activities at **-30.53 million yuan** due to higher cash payments for investments, and financing activities at **-6.84 million yuan**, resulting in a net decrease of **49.95 million yuan** in cash and cash equivalents Consolidated Cash Flow Statement Table | Item | Q1 2023 (Million Yuan) | Q1 2022 (Million Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -12.59 | -34.00 | | Net Cash Flow from Investing Activities | -30.53 | 100.85 | | Net Cash Flow from Financing Activities | -6.84 | -8.79 | | Net Increase/Decrease in Cash and Cash Equivalents | -49.95 | 58.07 |

2022年年度报告 公司代码：600156 公司简称：华升股份 湖南华升股份有限公司 2022 年年度报告 ...

Financial Performance - The company's operating revenue for Q3 2022 was CNY 188.32 million, an increase of 31.57% compared to the same period last year[4]. - Total operating revenue for the first three quarters of 2022 reached ¥675,258,593.73, an increase from ¥636,156,425.03 in the same period of 2021, representing a growth of approximately 6.5%[18]. - The net loss for the first three quarters of 2022 was ¥203,750,585.64, compared to a net loss of ¥33,646,343.93 in the same period of 2021, reflecting a significant deterioration in profitability[19]. - The company's gross profit margin decreased, with gross profit for the first three quarters of 2022 at ¥4,508,509.55, down from ¥21,007,659.01 in 2021[18]. - The company reported a basic earnings per share of CNY -0.2752 for the current period[4]. - The company reported a basic and diluted earnings per share of -¥0.4505 for the first three quarters of 2022, compared to -¥0.0686 in the same period of 2021[19]. Cash Flow and Investments - The net cash flow from operating activities for the year-to-date period was CNY -161.64 million[4]. - The net cash flow from operating activities for the first three quarters of 2022 was -161,637,750.85, compared to -40,664,654.33 in the same period of 2021, indicating a significant decline[21]. - Total cash inflow from operating activities was 824,325,888.49, while cash outflow was 985,963,639.34, resulting in a net cash flow deficit[21]. - Cash inflow from investment activities decreased to 335,845,712.00 from 488,970,186.88 year-over-year, reflecting a decline in investment recovery[22]. - The net cash flow from investment activities improved to 120,477,781.96 in 2022 from -25,064,188.00 in 2021, indicating a positive turnaround[22]. - The company reported a total cash outflow for investment activities of 215,367,930.04, down from 514,034,374.88 in the previous year, suggesting a reduction in capital expenditures[22]. - Cash inflow from financing activities increased to 60,000,000.00 in 2022, up from 5,000,000.00 in the previous year, showing enhanced financing efforts[22]. - The net cash flow from financing activities was 20,863,395.81, compared to -1,046,078.64 in 2021, indicating a recovery in financing[22]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,049.58 million, a decrease of 17.14% from the end of the previous year[5]. - Total assets as of September 30, 2022, amounted to ¥1,049,576,656.23, down from ¥1,266,611,558.67 at the end of 2021, indicating a decrease of approximately 17.2%[15]. - Total liabilities as of September 30, 2022, were ¥614,775,157.61, slightly down from ¥628,059,474.41 at the end of 2021, reflecting a decrease of about 2.1%[15]. - The company's cash and cash equivalents decreased to ¥135,794,925.74 from ¥154,830,738.76, a decline of approximately 12.3%[14]. - The company’s total equity decreased to ¥434,801,498.62 as of September 30, 2022, down from ¥638,552,084.26 at the end of 2021, representing a decline of about 31.9%[15]. - The equity attributable to shareholders of the listed company was CNY 470.02 million, down 27.82% from the previous year-end[5]. Expenses and Losses - The net profit attributable to shareholders of the listed company was CNY -110.68 million, with a year-to-date net profit of CNY -181.17 million[4]. - The company recognized a significant non-recurring loss of CNY 101.73 million related to employee severance benefits due to restructuring[12]. - Total operating costs for the first three quarters of 2022 were ¥851,809,965.44, up from ¥694,771,054.53 in 2021, indicating an increase of about 22.6%[18]. - Research and development expenses for the first three quarters of 2022 were ¥6,088,311.08, a decrease from ¥8,841,213.63 in the same period of 2021, showing a reduction of approximately 31.1%[18]. - Employee compensation payments rose significantly to 173,142,204.68 from 81,462,141.14, indicating increased workforce investment[21]. Other Financial Information - The company did not report any audited financial statements for this quarter[4]. - The weighted average return on net assets was -19.74%, a decrease of 14.76 percentage points compared to the previous year[4]. - The company received 83,819,267.91 in tax refunds, an increase from 76,544,724.96 in the previous year, reflecting improved tax recovery[21].

Group 1: Event Details - Hunan Huasheng Co., Ltd. will participate in the "2022 Investor Online Collective Reception Day" organized by the China Securities Regulatory Commission Hunan Supervision Bureau, Hunan Listed Companies Association, and Shenzhen Panorama Network Co., Ltd. [2] - The event will be held online on the "Panorama Roadshow" website on September 29, 2022, from 15:30 to 16:55 [2]. Group 2: Company Representation - The company's Vice General Manager and Board Secretary, Mr. Jiang Hongkai, will communicate with investors through an interactive online format [2]. - The company encourages investors to actively participate in the event [2]. Group 3: Legal Assurance - The Board of Directors of Hunan Huasheng Co., Ltd. guarantees that the announcement contains no false records, misleading statements, or major omissions, and assumes legal responsibility for the truthfulness, accuracy, and completeness of the content [2].

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 48,693.39 million, a decrease of 1.23% compared to CNY 49,301.52 million in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2022 was a loss of CNY 7,049.06 million, compared to a profit of CNY 781.27 million in the same period last year, representing a decrease of 1,002.26%[16]. - The basic earnings per share for the first half of 2022 was -0.1753 CNY, compared to 0.0194 CNY in the same period last year, reflecting a decrease of 1,003.62%[16]. - The weighted average return on net assets for the first half of 2022 was -11.44%, down 12.52 percentage points from 1.08% in the same period last year[16]. - The net cash flow from operating activities for the first half of 2022 was -6,632.68 million CNY, compared to -2,250.38 million CNY in the same period last year[16]. - The company's total revenue for the first half of 2022 was CNY 48,120.49 million, a slight decrease of 0.69% compared to the same period last year[22]. - The company experienced a net cash outflow from operating activities of CNY -6,632.68 million, indicating challenges in cash flow management[24]. - The net profit for the first half of 2022 was a loss of CNY 78,866,070.95, compared to a profit of CNY 4,748,923.17 in the first half of 2021, indicating a significant decline[76]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 115,095.14 million, a decrease of 9.13% from CNY 126,661.16 million at the end of the previous year[16]. - The net assets attributable to shareholders at the end of the reporting period were CNY 58,069.71 million, down 10.82% from CNY 65,118.77 million at the end of the previous year[16]. - Total assets at the end of the reporting period reached 114,000 million, a decrease of 2.53% compared to the previous year[29]. - The company's total liabilities were CNY 591,265,425.31, down from CNY 628,059,474.41 at the start of the period[70]. - The total equity attributable to shareholders decreased to CNY 580,697,080.60 from CNY 651,187,695.18[70]. - The total current liabilities amounted to CNY 409,880,908.46, a decrease from CNY 430,315,330.53[70]. Revenue Segments - The textile production business reported a revenue of CNY 4,229.27 million, a decrease of 5.48% compared to the previous year[17]. - The pharmaceutical machinery business achieved a revenue of CNY 1,026.44 million, with a gross profit margin of 38.30%[17]. - The gross profit margin for the textile segment (yarn) was -20.67%, while the gross profit margin for the textile segment (fabric) was -37.07%[22]. - The pharmaceutical machinery segment reported a gross profit margin of 38.30%, with revenue of CNY 1,026.44 million, an increase of 55.15% year-on-year[22]. Cash Flow and Investments - Cash and cash equivalents increased by 44.05% to 22,304 million, primarily due to the maturity of structured deposits[29]. - The company reported a net increase in cash and cash equivalents of CNY 65.04 million for the first half of 2022, compared to a decrease of CNY 67.53 million in the same period of 2021[81]. - Cash inflow from sales of goods and services was CNY 448.18 million, down from CNY 474.94 million year-on-year[80]. - Cash outflow for purchasing goods and services was CNY 483.44 million, slightly down from CNY 484.72 million in the previous year[80]. - The company received CNY 269 million from investment recoveries, a decrease from CNY 278.33 million in the first half of 2021[80]. - Cash outflow for investment activities totaled CNY 132.79 million, down from CNY 328.57 million in the same period last year[80]. Expenses and Management - Management expenses increased by 55.42% to CNY 4,494.03 million, primarily due to severance benefits related to personnel restructuring[25]. - Research and development expenses rose by 15.81% to CNY 367.49 million, reflecting increased investment in innovation[25]. - The company reported a significant fair value loss of CNY 32,270,399.99 in the first half of 2022, compared to a loss of CNY 9,515,623.64 in the previous year[76]. Environmental Compliance - The company reported a chemical oxygen demand (COD) of 144 mg/L, which is below the limit of 200 mg/L[45]. - The total nitrogen (N) level was recorded at 13.18 mg/L, significantly lower than the limit of 30 mg/L[45]. - The company has implemented an environmental monitoring plan to ensure pollutant emissions meet standards[49]. - There were no administrative penalties due to environmental issues during the reporting period[50]. - The company’s wastewater discharge indicators were all within the approved range, with no exceedances reported[47]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 25,210[62]. - The company had a total of 162,104,312 shares held by Hunan Huasheng Group, accounting for 40.31% of total shares[65]. Accounting Policies - The accounting policies comply with the requirements of enterprise accounting standards, ensuring accurate financial reporting[94]. - The company's accounting currency is Renminbi (CNY)[97]. - The company recognizes the operating results and cash flows of subsidiaries from the date control is obtained, adjusting the financial statements based on fair values determined on the acquisition date[101]. Accounts Receivable - The total accounts receivable at the end of the period amounted to CNY 141,702,826.97, with a breakdown showing CNY 59,826,743.03 for receivables within one year and CNY 30,829,086.66 for receivables between one to two years[186][187]. - The bad debt provision at the end of the period was CNY 54,191,827.62, which represents a decrease from CNY 54,822,367.46 at the beginning of the period, indicating a reduction of approximately 1.15%[193]. - The company has a bad debt provision ratio of 22.77% for the total accounts receivable, with specific provisions varying by aging category[191]. - The largest single account receivable is from Changsha Electronic Technology Co., Ltd., totaling CNY 25,976,653.09, which is 18.33% of the total accounts receivable[195]. Prepaid Expenses - The total balance of prepaid expenses at the end of the period is 79,135,160.49 RMB, an increase from 57,050,919.20 RMB at the beginning of the period, representing a growth of approximately 38.8%[198]. - The majority of prepaid expenses, 96.56%, are due within one year, compared to 94.37% in the previous period[198]. - The top five prepaid expense balances account for 17.41% of the total, with the largest being 3,728,032.02 RMB from a textile trading company[200].

Report Overview [Important Notice](index=1&type=section&id=Important%20Content%20Notice) The 2022 Q1 report for Hunan Huasheng Co., Ltd. is guaranteed for accuracy by management, with unaudited financial statements - The company's Board of Directors, Supervisory Board, and directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content, with no false records, misleading statements, or major omissions[2](index=2&type=chunk)[3](index=3&type=chunk) - The company's responsible person, chief accountant, and head of the accounting department guarantee the truthfulness, accuracy, and completeness of the financial statement information in the quarterly report[3](index=3&type=chunk) - The first-quarter financial statements are **unaudited**[4](index=4&type=chunk) Key Financial Data [Key Accounting Data and Financial Indicators](index=1&type=section&id=(I)Key%20Accounting%20Data%20and%20Financial%20Indicators) Q1 2022 saw a 19.68% revenue decline, a net loss of **39.69 million yuan**, and decreases in total assets and owners' equity Key Accounting Data and Financial Indicators for Q1 2022 | Item | Current Period (million yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 208.37 | -19.68 | | Net Profit Attributable to Shareholders | -39.69 | Not applicable | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | -23.30 | Not applicable | | Net Cash Flow from Operating Activities | -34.00 | Not applicable | | Basic EPS (yuan/share) | -0.0987 | Not applicable | | Diluted EPS (yuan/share) | -0.0987 | Not applicable | | Weighted Average ROE (%) | -6.29 | Increased 2.49 percentage points | Balance Sheet Indicators as of Q1 2022 End | Item | End of Current Period (million yuan) | End of Prior Year (million yuan) | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,187.33 | 1,266.61 | -6.26 | | Owners' Equity Attributable to Shareholders | 611.50 | 651.19 | -6.09 | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=(II)Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring losses for the period amounted to **16.39 million yuan**, mainly due to fair value changes in financial assets Non-recurring Gains and Losses Items and Amounts for Q1 2022 | Item | Amount for Current Period (yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 2,105.94 | | Government Grants Recognized in Current P&L | 1,781,361.55 | | Gains/Losses from Entrusted Investments/Asset Management | 723,045.92 | | Gains/Losses from Fair Value Changes & Investment Income | -24,435,199.99 | | Other Non-operating Income and Expenses | -24,589.52 | | Less: Income Tax Impact | -5,628,943.87 | | Minority Interests Impact (After Tax) | 63,138.44 | | **Total** | **-16,387,470.68** | - Total non-recurring gains and losses amounted to **-16,387,470.68 yuan**, primarily influenced by fair value changes from financial assets held for trading and derivative financial assets[5](index=5&type=chunk) [Changes in Key Accounting Data, Financial Indicators and Reasons](index=2&type=section&id=(III)Changes%20in%20Key%20Accounting%20Data%2C%20Financial%20Indicators%20and%20Reasons) Significant changes in key financial items were driven by structured deposit maturities, loan repayments, increased R&D, and reduced exchange losses Changes in Key Accounting Data, Financial Indicators and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | 37.50 | Increase in cash and cash equivalents due to maturity of some structured deposits | | Notes Receivable | -53.59 | Change due to maturity of bank acceptance bills | | Prepayments | 37.53 | Change resulting from the company's normal operating activities | | Other Current Assets | -63.54 | Maturity of some structured deposits | | Accounts Payable | -33.91 | Change resulting from the company's normal operating activities | | Non-current Liabilities Due Within One Year | -41.67 | Subsidiary Dongma Company repaid bank loan of 10 million yuan | | Deferred Income Tax Liabilities | -36.91 | Change due to the company recognizing fair value changes in Xiangcai Securities stock | | Administrative Expenses | 39.62 | Primarily due to increased administrative expenses at subsidiary Huasheng Textile Technology | | Research and Development Expenses | 56.05 | Company increased R&D investment | | Financial Expenses | -59.99 | Change due to reduced exchange gains and losses compared to the previous period | | Other Income | 1,011.07 | Subsidiary received government grants | | Cash Paid for Other Operating Activities | -34.05 | Primarily due to a year-on-year decrease in intercompany payments | | Cash Received from Investment Recovery | 105.15 | Primarily cash inflow from maturity of structured deposits | | Cash Received from Investment Income | 53.52 | Primarily investment income received from maturity of structured deposits | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-term Assets | -60.35 | Subsidiary Xuesong Company paid less for engineering projects year-on-year | | Subtotal of Cash Outflows from Financing Activities | 485.49 | Subsidiary Dongma Company repaid bank loan of 10 million yuan | - **R&D expenses** increased by **56.05%** year-on-year, primarily due to increased R&D investment by the company[5](index=5&type=chunk) - **Financial expenses** decreased by **59.99%** year-on-year, mainly due to reduced exchange gains and losses compared to the previous period[5](index=5&type=chunk) Shareholder Information [Total Number of Common Shareholders and Top Ten Shareholders' Shareholding](index=3&type=section&id=(I)Total%20Number%20of%20Common%20Shareholders%20and%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%20and%20Top%20Ten%20Shareholders'%20Shareholding%20Table) The company had **41,999 common shareholders**, with Hunan Huasheng Group Co., Ltd. holding **40.31%** of shares, a portion of which is pledged - The total number of common shareholders at the end of the reporting period was **41,999**[8](index=8&type=chunk) Top 10 Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Number of Shares Held | Shareholding Percentage (%) | Number of Restricted Shares Held | Pledge, Mark, or Freeze Status (Shares/Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hunan Huasheng Group Co., Ltd. | State-owned Legal Person | 162,104,312 | 40.31 | - | Pledged 20,000,000 | | An Tongliang | Domestic Natural Person | 9,700,000 | 2.41 | - | Unknown | | Ou Yanwu | Domestic Natural Person | 6,419,012 | 1.60 | - | Unknown | | Han Qiang | Domestic Natural Person | 4,647,300 | 1.16 | - | Unknown | | Jiang Runlin | Domestic Natural Person | 3,800,000 | 0.95 | - | Unknown | | Bai Changmin | Domestic Natural Person | 1,804,366 | 0.45 | - | Unknown | | Yuan Bin | Domestic Natural Person | 1,540,600 | 0.38 | - | Unknown | | Zhou Qin | Domestic Natural Person | 1,539,753 | 0.38 | - | Unknown | | Wang Li | Domestic Natural Person | 1,080,000 | 0.27 | - | Unknown | | Lin Weiping | Domestic Natural Person | 1,050,300 | 0.26 | - | Unknown | - Controlling shareholder Hunan Huasheng Group Co., Ltd. held **162,104,312 shares**, accounting for **40.31%** of the total share capital, with **20,000,000 shares** pledged[8](index=8&type=chunk) Other Reminders [Other Important Information Regarding Operating Performance](index=4&type=section&id=Other%20Important%20Information%20Regarding%20Operating%20Performance) No other significant operating information requiring investor attention was identified during the reporting period - The company has no other important information regarding its operating performance during the reporting period that requires investor attention[10](index=10&type=chunk) Quarterly Financial Statements [Type of Audit Opinion](index=4&type=section&id=(I)Type%20of%20Audit%20Opinion) The financial statements for this quarter are **unaudited** - The financial statements for this quarter are **unaudited**[10](index=10&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2022, total assets were **1.19 billion yuan**, a **6.26% decrease** from year-end, with total liabilities at **592 million yuan** Consolidated Balance Sheet Key Items (March 31, 2022 vs December 31, 2021) | Item | March 31, 2022 (yuan) | December 31, 2021 (yuan) | | :--- | :--- | :--- | | **Current Assets:** | | | | Cash and Cash Equivalents | 212,896,362.46 | 154,830,738.76 | | Financial Assets Held for Trading | 109,958,400.00 | 134,393,599.99 | | Notes Receivable | 579,718.00 | 1,249,008.22 | | Prepayments | 78,461,718.55 | 57,050,919.20 | | Other Current Assets | 65,189,321.95 | 178,805,117.83 | | **Total Current Assets** | **687,051,316.48** | **760,423,864.97** | | **Non-current Assets:** | | | | Fixed Assets | 276,505,393.27 | 281,106,525.72 | | Intangible Assets | 146,480,518.33 | 147,437,054.23 | | **Total Non-current Assets** | **500,278,805.09** | **506,187,693.70** | | **Total Assets** | **1,187,330,121.57** | **1,266,611,558.67** | | **Current Liabilities:** | | | | Accounts Payable | 60,023,334.61 | 90,813,750.22 | | Contract Liabilities | 116,848,933.81 | 118,236,052.40 | | Non-current Liabilities Due Within One Year | 14,000,000.00 | 24,000,000.00 | | **Total Current Liabilities** | **398,261,701.45** | **430,315,330.53** | | **Non-current Liabilities:** | | | | Deferred Income Tax Liabilities | 10,441,715.29 | 16,550,515.29 | | **Total Non-current Liabilities** | **193,783,751.04** | **197,744,143.88** | | **Total Liabilities** | **592,045,452.49** | **628,059,474.41** | | **Owners' Equity:** | | | | Total Owners' Equity Attributable to Parent Company | 611,501,162.18 | 651,187,695.18 | | Minority Interests | -16,216,493.10 | -12,635,610.92 | | **Total Owners' Equity** | **595,284,669.08** | **638,552,084.26** | | **Total Liabilities and Owners' Equity** | **1,187,330,121.57** | **1,266,611,558.67** | - As of March 31, 2022, the company's **total assets** were **1,187,330,121.57 yuan**, a **6.26% decrease** from **1,266,611,558.67 yuan** at the end of 2021[5](index=5&type=chunk)[12](index=12&type=chunk) - **Total owners' equity attributable to the parent company** was **611,501,162.18 yuan**, a **6.09% decrease** from **651,187,695.18 yuan** at the end of 2021[5](index=5&type=chunk)[13](index=13&type=chunk) [Consolidated Income Statement](index=6&type=section&id=Consolidated%20Income%20Statement) Q1 2022 total operating revenue was **208.37 million yuan**, down **19.68%**, with a net loss of **39.69 million yuan** that narrowed year-on-year Consolidated Income Statement Key Items (Q1 2022 vs Q1 2021) | Item | Q1 2022 (yuan) | Q1 2021 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 208,367,620.36 | 259,429,997.37 | | Total Operating Costs | 235,041,073.07 | 276,110,177.32 | | Including: Operating Costs | 208,337,257.35 | 253,183,259.67 | | Administrative Expenses | 16,994,317.63 | 12,171,622.18 | | Research and Development Expenses | 1,817,598.17 | 1,164,743.76 | | Financial Expenses | 963,535.28 | 2,408,339.39 | | Other Income | 1,772,121.55 | 159,497.00 | | Investment Income | 762,022.40 | 187,883.82 | | Gains/Losses from Fair Value Changes | -24,435,199.99 | -63,453,893.64 | | Operating Profit | -49,362,971.60 | -79,745,044.77 | | Total Profit | -49,376,215.18 | -78,434,305.23 | | Net Profit | -43,267,415.18 | -62,570,831.82 | | Net Profit Attributable to Parent Company Shareholders | -39,686,533.00 | -60,660,979.79 | | Basic EPS (yuan/share) | -0.0987 | -0.1509 | - **Total operating revenue** was **208,367,620.36 yuan**, a year-on-year decrease of **19.68%**[4](index=4&type=chunk)[14](index=14&type=chunk) - **Net profit attributable to parent company shareholders** was **-39,686,533.00 yuan**, a narrowed loss compared to **-60,660,979.79 yuan** in the same period last year[4](index=4&type=chunk)[15](index=15&type=chunk) - **Gains/losses from fair value changes** amounted to **-24,435,199.99 yuan**, negatively impacting current period profit[14](index=14&type=chunk) [Consolidated Cash Flow Statement](index=7&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1 2022 saw a **34.00 million yuan** net cash outflow from operations, a **100.85 million yuan** net inflow from investing, and an **8.79 million yuan** net outflow from financing Consolidated Cash Flow Statement Key Items (Q1 2022 vs Q1 2021) | Item | Q1 2022 (yuan) | Q1 2021 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -33,995,617.85 | -11,359,731.94 | | Net Cash Flow from Investing Activities | 100,848,677.67 | -8,539,393.20 | | Net Cash Flow from Financing Activities | -8,787,436.12 | -1,768,394.06 | | Net Increase in Cash and Cash Equivalents | 58,065,623.70 | -21,667,519.20 | | Cash and Cash Equivalents at End of Period | 212,896,362.46 | 187,069,537.57 | - **Net cash flow from operating activities** was **-33,995,617.85 yuan**, an expanded net outflow compared to **-11,359,731.94 yuan** in the same period last year[4](index=4&type=chunk)[17](index=17&type=chunk) - **Net cash flow from investing activities** was **100,848,677.67 yuan**, turning positive from **-8,539,393.20 yuan** in the same period last year, mainly due to a significant increase in cash received from investment recovery[6](index=6&type=chunk)[17](index=17&type=chunk) - **Net cash flow from financing activities** was **-8,787,436.12 yuan**, an expanded net outflow compared to **-1,768,394.06 yuan** in the same period last year[6](index=6&type=chunk)[17](index=17&type=chunk)

Financial Performance - In 2021, the company's operating revenue was CNY 93,036.56 million, representing a 1.84% increase compared to CNY 91,353.87 million in 2020[19]. - The net profit attributable to shareholders was CNY -7,023.06 million, a decrease of 311.33% from CNY 3,323.23 million in the previous year[19]. - The total revenue amounted to 91,429.09 million, reflecting a 1.89% decrease year-over-year[39]. - The company's net profit and net assets were reported under both international and Chinese accounting standards, reflecting compliance with regulatory requirements[26]. - The company reported a net profit attributable to shareholders of -70.23 million in 2021, with a cumulative distributable profit of -93.68 million over the last three years[106]. - The total comprehensive income for the year was CNY -70,230,557.04, reflecting a significant decline in profitability[174]. - The net profit for 2021 was a loss of CNY 84,549,094.01, compared to a profit of CNY 19,440,560.76 in 2020, reflecting a significant decline[165]. Cash Flow and Assets - The net cash flow from operating activities was CNY -3,452.29 million, worsening from CNY -1,709.55 million in 2020[19]. - The total assets at the end of 2021 were CNY 126,661.16 million, a decrease of 1.19% from CNY 128,180.90 million in 2020[19]. - The company's cash and cash equivalents decreased to CNY 154,830,738.76 from CNY 205,814,303.25 at the end of 2020, representing a decrease of approximately 25%[170]. - The company's total liabilities as of December 31, 2021, were CNY 628,059,474.41, an increase from CNY 568,707,805.99 in 2020, which is an increase of approximately 10.5%[162]. - The company's long-term borrowings remained stable at 12,000,000 RMB, with no change from the previous year[65]. - The total current liabilities as of December 31, 2021, were CNY 430,315,330.53, compared to CNY 358,627,878.36 in 2020, reflecting an increase of approximately 19.9%[162]. Revenue Segmentation - The revenue from the textile production segment was CNY 8,277.94 million, with a gross margin of -22.79%, a decrease of 19.52 percentage points year-on-year[38]. - The pharmaceutical machinery segment reported revenue of CNY 2,957.74 million, with a gross margin of 58.99%, an increase of 9.82 percentage points year-on-year[38]. - The overseas sales revenue reached CNY 77,761.87 million, with a gross margin of 2.82%, reflecting a year-on-year increase of 1.13 percentage points[38]. - Domestic sales for the year reached 13,667.22 million, a decrease of 8.84% compared to the previous year[39]. - The trading business generated revenue of 97,992 million, an increase of 2.90% from the previous year, while the gross margin decreased by 0.44 percentage points to 2.65%[39]. Cost Management - The operating cost for the reporting period was CNY 89,630.44 million, reflecting a growth of 3.57% from CNY 86,538.13 million in the previous year[35]. - The gross profit margin for the main business decreased by 1.89 percentage points compared to the previous year[36]. - The textile production segment's total costs rose to 10,164.53 million, a 14.28% increase from the previous year, primarily due to higher labor and manufacturing expenses[46]. - The pharmaceutical machinery segment's costs increased to 1,212.99 million, reflecting a 48.72% rise year-over-year[46]. - The company saved approximately 15 million RMB in costs through effective cost control measures during the year[30]. Research and Development - The company’s R&D expenses increased by 35.00% to CNY 1,419.33 million from CNY 1,051.36 million in the previous year[35]. - The company plans to focus on technological breakthroughs and increase investment in research and development to address key technical challenges in the hemp industry[75]. - The company has established a training system that combines internal and external training tailored to different job positions[105]. Governance and Compliance - The company strictly adhered to the information disclosure management system, enhancing the management of insider information and ensuring compliance with regulations[83]. - The report indicates that there were no significant differences in corporate governance compared to regulatory requirements[83]. - The company has plans to continue enhancing its compliance and governance practices to safeguard shareholder interests[83]. - The audit committee held four meetings during the reporting period, with all proposals receiving unanimous approval[98]. - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, ensuring the protection of shareholders' rights[108]. Market and Strategic Outlook - The overall economic environment in 2021 showed a GDP growth of 8.1% in China, with a declining trend in growth rates throughout the year[32]. - The company plans to continue its investment strategy focusing on upgrading production capabilities and expanding market reach[66]. - The company intends to develop four major processing bases for hemp raw materials, spinning, weaving, and dyeing[74]. - The company’s management indicated a cautious outlook for 2022, emphasizing the need for strategic adjustments in response to market conditions[167]. Environmental and Social Responsibility - The company prioritizes employee welfare by ensuring timely payment of social insurance and providing health check-ups and recreational facilities[121]. - The company has developed emergency response plans for environmental incidents and conducts regular drills to enhance preparedness[117]. - The wastewater discharge from Dongma Company and Xuesong Company complies with national standards, with no exceedances reported[116]. Shareholder Information - The annual shareholder meeting held on April 20, 2021, resulted in all resolutions being passed unanimously[83]. - The company has not proposed any cash profit distribution plan for 2021 due to insufficient distributable profits[106]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 1.5088 million yuan[92].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 143.14 million, a decrease of 29.06% compared to the same period last year[5]. - The net profit attributable to shareholders of the listed company was CNY -35.40 million, with a year-to-date net profit of CNY -27.59 million[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -17.64 million, a decrease of 67.20% year-on-year[5]. - The basic and diluted earnings per share for the period were both CNY -0.0880, compared to CNY -0.0686 in the same period last year[6]. - The weighted average return on equity was -4.98%, a decrease of 6.35 percentage points compared to the previous year[6]. - Total operating revenue for the first three quarters of 2021 was CNY 636,156,425.03, a decrease of 4.4% compared to CNY 665,074,872.43 in the same period of 2020[16]. - Net profit for the third quarter of 2021 was a loss of CNY 33,646,343.93, compared to a profit of CNY 25,501,790.55 in the same quarter of 2020[17]. - The company's equity attributable to shareholders decreased to CNY 693,831,809.33 from CNY 721,418,252.22 year-over-year, a decline of 3.8%[14]. - The company reported an operating profit loss of CNY 35,750,010.41 for the third quarter of 2021, compared to an operating profit of CNY 24,791,454.81 in the same quarter of 2020[17]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,274.37 million, a decrease of 0.58% from the end of the previous year[6]. - The company’s total assets as of the end of the third quarter of 2021 were CNY 1,274,366,600.17, slightly down from CNY 1,281,808,984.26 at the end of 2020[14]. - Total liabilities increased to CNY 594,911,765.83 in the third quarter of 2021, compared to CNY 568,707,805.99 in the same period of 2020, marking an increase of 4.6%[14]. - The total equity attributable to shareholders of the listed company was CNY 693.83 million, down 3.82% from the end of the previous year[6]. Cash Flow - The company reported a cash flow from operating activities of CNY -40.66 million year-to-date[5]. - In the first three quarters of 2021, the cash inflow from operating activities was CNY 809,493,349.72, an increase of 1.07% compared to CNY 793,648,015.31 in the same period of 2020[19]. - The net cash flow from operating activities for the first three quarters of 2021 was -CNY 40,664,654.33, a significant decline from CNY 1,587,986.37 in the first three quarters of 2020[19]. - The cash inflow from investment activities totaled CNY 488,970,186.88, down 16.56% from CNY 585,968,682.17 in the previous year[19]. - The net cash flow from investment activities was -CNY 25,064,188.00, an improvement compared to -CNY 31,027,507.60 in the same period of 2020[19]. - The cash inflow from financing activities was CNY 5,000,000.00, a decrease of 97.61% compared to CNY 209,115,662.58 in the previous year[20]. - The net cash flow from financing activities was -CNY 1,046,078.64, contrasting with a positive net flow of CNY 130,164,058.83 in the same period of 2020[20]. - The total cash and cash equivalents at the end of the period were CNY 139,099,757.51, down from CNY 219,800,775.04 at the end of the same period in 2020[20]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 23,745[10]. - The largest shareholder, Hunan Huasheng Group Co., Ltd., held 40.31% of the shares, with 162,104,312 shares pledged[10]. Research and Development - Research and development expenses increased to CNY 8,841,213.63 in the first three quarters of 2021, up from CNY 4,783,993.63 in 2020, representing an increase of 84.9%[16]. Other Financial Metrics - The company recorded a significant decrease in fair value gains, reporting a loss of CNY 14,209,451.27 in the third quarter of 2021, compared to a gain of CNY 66,853,701.76 in the same period of 2020[17]. - The cash outflow for employee payments was CNY 81,462,141.14, up from CNY 71,382,662.62 in the same period of 2020[19]. - The company reported a cash outflow of CNY 724,289,320.24 for purchasing goods and services, which increased from CNY 676,734,976.82 in the previous year[19]. - The company experienced a cash inflow of CNY 76,544,724.96 from tax refunds, slightly increasing from CNY 76,188,803.72 in the previous year[19].

Group 1: Event Details - The company will participate in the "2021 Hunan Listed Companies Investor Online Reception Day" on September 24, 2021, from 15:00 to 17:00 [1] - The event will be conducted online through the platform provided by Shenzhen Qianjing Network Co., Ltd. [1] - Investors can access the event via the "Qianjing Roadshow" website [1] Group 2: Communication Format - The company's Secretary of the Board, Mr. Jiang Hongkai, will engage in an online Q&A session with investors [1] - The format aims to enhance interaction and communication with investors [1] Group 3: Company Assurance - The company and its board members guarantee the authenticity, accuracy, and completeness of the disclosed information [1] - There are no false records, misleading statements, or significant omissions in the announcement [1]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 49,301.52 million, representing a 6.42% increase compared to CNY 46,328.44 million in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was CNY 781.27 million, a decrease of 64.38% from CNY 2,193.04 million in the previous year[20]. - The basic earnings per share for the first half of 2021 was CNY 0.0194, down 64.40% from CNY 0.0545 in the same period last year[20]. - The company's total revenue for the reporting period was CNY 48,455.36 million, representing a year-on-year increase of 5.90%[22]. - The gross profit margin for the overall business was 1.76%, a decrease of 2.50% compared to the previous year[22]. - The company reported a significant increase in tax payable by 521.07% to 1,583 million, attributed to investment income from the sale of Xiangcai shares[33]. - The company achieved a profit increase of CNY 2,339 million from the reduction of shares in Xiangcai Co., with a cash inflow of CNY 10,133 million[31]. Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 2,250.38 million, compared to positive CNY 375.29 million in the previous year, indicating a significant decline[20]. - Cash and cash equivalents decreased by 32.51% to 14,088 million, down from 20,874 million in the previous year[33]. - The total cash and cash equivalents at the end of the first half of 2021 were CNY 138,282,001.33, down from CNY 246,694,215.29 at the end of the first half of 2020, a decrease of approximately 44%[91]. - The cash inflow from investment activities totaled CNY 287,536,279.68, down from CNY 372,595,805.85 in the same period last year, reflecting a decrease of approximately 23%[90]. - The cash outflow for investment activities was CNY 328,568,307.83, compared to CNY 390,289,221.78 in the previous year, showing a decrease of about 16%[90]. - The company reported a significant increase in cash received from other operating activities, which rose to CNY 1,068,553.55 from CNY 439,703.99 in the previous year, marking an increase of about 143%[92]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 129,552.78 million, a slight increase of 1.07% from CNY 128,180.90 million at the end of the previous year[20]. - The company's total liabilities as of June 30, 2021, were CNY 577,677,656.15, compared to CNY 568,707,805.99 at the end of 2020[78]. - Accounts receivable increased by 22.06% to 10,965 million, compared to 8,984 million last year[33]. - Inventory decreased by 13.62% to 12,240 million, down from 14,170 million in the previous year[33]. - The company has a total of CNY 5,572,777.76 in other monetary funds, which includes bank guarantee deposits and securities account funds[186]. Research and Development - R&D expenses increased by 9.16% year-on-year, amounting to CNY 317.32 million, reflecting the company's commitment to innovation[29]. - Research and development expenses increased to ¥3,173,211.64 in the first half of 2021, compared to ¥2,906,986.77 in the first half of 2020, reflecting a growth of 9.2%[83]. Environmental and Regulatory Compliance - The company has established and operates pollution prevention facilities within the approved emission limits, with no exceedance reported[53]. - The company has developed emergency response plans for environmental incidents in accordance with national regulations, enhancing skills through regular drills[54]. - There were no administrative penalties due to environmental issues during the reporting period[56]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,229[68]. - The major shareholder, Hunan Huasheng Group Co., Ltd., holds 40.31% of the shares, with 162,104,312 shares as of the report date[71]. - The company has not disclosed any significant contracts or their performance during the reporting period[64]. Credit Risk Management - The company has identified several accounts with significant amounts that are fully reserved for bad debts, indicating a cautious approach to credit risk management[194]. - The provision for bad debts is applied on a combination basis, reflecting the credit risk characteristics of the accounts receivable[196]. - The company has a 100% provision for accounts receivable over 5 years, indicating a high risk of non-recovery[196]. Accounting Policies - The financial statements comply with the enterprise accounting standards, ensuring accurate reflection of the company's financial status[103]. - The company recognizes lease liabilities at the present value of future lease payments, including fixed payments and variable payments based on indices[161]. - The company recognizes provisions for obligations related to guarantees, commercial acceptance bills, and product quality assurance when certain conditions are met[164].