Financial Performance - The company's operating revenue for the first half of 2022 was CNY 894,098,508.68, representing a 9.55% increase compared to CNY 816,152,863.59 in the same period last year[17]. - Basic earnings per share increased by 735.29% to CNY 0.0284 from CNY 0.0034 year-on-year[18]. - Net profit attributable to shareholders reached CNY 50,618,415.10, a 726.49% increase compared to CNY 6,124,471.10 in the same period last year[19]. - The textile business generated main operating income of 743 million RMB, up 21.18% compared to the previous year[34]. - The gross margin for the textile business improved to 29.23%, an increase of 4.83 percentage points year-on-year[34]. - The company reported a net profit of CNY 374,922,009.83, an increase from CNY 359,970,401.25, showing a growth of approximately 4.4% in retained earnings[99]. - The company reported a total profit of approximately ¥118.81 million for the first half of 2022, compared to ¥27.37 million in the same period of 2021, marking an increase of approximately 334%[109]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 257.51% to -CNY 255,388,354.97 from CNY 162,143,339.13 year-on-year[19]. - The company's cash and cash equivalents decreased to CNY 645,062,985.88 from CNY 843,005,069.32, a decline of about 23.5%[97]. - The cash flow from operating activities showed a net outflow of approximately ¥255.39 million in the first half of 2022, contrasting with a net inflow of ¥162.14 million in the same period of 2021[110]. - The total cash and cash equivalents at the end of the period were 312,446,135.87 RMB, down from 459,508,365.04 RMB at the beginning of the period, indicating a decrease in liquidity[113]. Assets and Liabilities - The total assets increased by 3.56% to CNY 4,912,111,322.09 from CNY 4,743,356,815.69 at the end of the previous year[19]. - Total liabilities increased to CNY 2,576,321,872.56 from CNY 2,418,606,095.77, marking a rise of approximately 6.5%[99]. - The total current assets reached CNY 2,626,898,030.59, up from CNY 2,492,673,364.37, reflecting a growth of approximately 5.4%[97]. - Accounts receivable increased by 47.26% compared to the previous year, indicating a reduction in cash received from customers[40]. - Inventory increased by 7.71% year-over-year, reflecting ongoing operational activities[40]. Investments and Subsidiaries - The company invested 5 million RMB in establishing Inner Mongolia Cheng'an New Energy Co., Ltd. as part of its intention to enter the photovoltaic industry[35]. - The company established a wholly-owned subsidiary, Inner Mongolia Cheng'an New Energy Co., Ltd., with a registered capital of 2 billion RMB[44]. - The company has engaged in significant related party transactions, with total transactions amounting to approximately 1.02 billion RMB during the reporting period[80]. Risk Factors and Challenges - The company is facing challenges due to global economic downturns and reduced consumer demand in the textile sector[22]. - The company faces operational risks due to macroeconomic fluctuations, with uncertainties in market recovery and potential declines in demand due to the ongoing global pandemic and geopolitical conflicts[47]. - Labor costs have been rising in the labor-intensive industry, compressing profit margins; the company is investing in automation to reduce production costs[47]. Environmental Compliance - The company has implemented an environmental self-monitoring plan, with all discharge outlets equipped with automatic online monitoring devices[63]. - The company has not faced any administrative penalties for environmental issues during the reporting period[64]. - The company adheres to national environmental protection laws and regulations, emphasizing sustainable development and pollution reduction[64]. Corporate Governance and Compliance - The board of directors and senior management guarantee the authenticity and completeness of the semi-annual report[6]. - The company received a warning letter from the China Securities Regulatory Commission on May 30, 2022, requiring rectification of identified issues[72]. - The company has committed to improving legal compliance awareness and enhancing information disclosure quality following the rectification plan[73]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 114,891[87]. - The largest shareholder, Jiangsu Sunshine Group Co., Ltd., held 226,311,454 shares, accounting for 12.69% of the total shares[89]. - The top ten shareholders collectively held 34.23% of the voting rights as of the end of the reporting period[90]. Research and Development - The company has established a national wool textile new materials engineering technology research center to enhance its R&D capabilities[30]. - Research and development expenses decreased to ¥5,008,326.29 from ¥6,673,077.44, showing a reduction of 24.93%[103]. Financial Instruments and Accounting Policies - The company recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value with changes recognized in other comprehensive income[161]. - Financial liabilities are classified at initial recognition as either measured at fair value with changes recognized in profit or loss or at amortized cost[152]. - The company applies the equity method for investments in joint ventures, recognizing its share of assets, liabilities, and expenses[147].

2022 年第一季度报告 重要内容提示 证券代码：600220 证券简称：江苏阳光 公告编号：2022-026 江苏阳光股份有限公司 2022 年第一季度报告 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重 大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中 财务报表信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 项目 本报告期 本报告期比上年同期增 减变动幅度(%) 营业收入 417,402,993.73 42.48 归属于上市公司股东的净利润 16,902,341.14 136.32 归属于上市公司股东的扣除非 经常性损益的净利润 9,490,871.13 119.69 经营活动产生的现金流量净额 -48,095,134.66 -153.21 基本每股收益（元/股） 0.009 ...

Financial Performance - The net profit attributable to shareholders for 2021 was CNY 114,986,450.46, while the net profit for the parent company was CNY 136,550,382.70[5]. - The company achieved operating revenue of RMB 1.99 billion in 2021, a year-on-year increase of 1.02%[31]. - Net profit attributable to shareholders reached RMB 115 million, reflecting a significant growth of 622.50% compared to the previous year[31]. - The basic earnings per share rose to RMB 0.0645, an increase of 624.72% from RMB 0.0089 in 2020[21]. - The company reported a net cash flow from operating activities of RMB 669 million, a dramatic increase of 2,695.39% compared to RMB 24 million in 2020[21]. - The company’s weighted average return on equity increased to 5.59%, up 4.83 percentage points from the previous year[21]. - The company’s investment income increased by 68.64% to CNY 6,302,489.03 from CNY 3,737,269.00 in the previous year[47]. - The company reported a total comprehensive income of CNY 44,326,304.88 for 2021, compared to a loss of CNY 74,745,724.80 in 2020[192]. - The company’s net profit for 2021 was CNY 136,550,382.70, a significant increase from CNY 12,319,950.54 in 2020, representing a growth of approximately 1,107%[196]. Dividend and Profit Distribution - The total distributable profit at the end of the year was CNY 303,513,154.46 after accounting for the cash dividend of CNY 17,833,403.26 distributed for the previous year[5]. - The proposed cash dividend for 2021 is CNY 0.20 per 10 shares, amounting to a total of CNY 35,666,806.52 based on the total share capital of 1,783,340,326 shares[5]. - The remaining undistributed profit for the parent company after the dividend distribution is CNY 267,846,347.94, which will be carried forward to future years[5]. - The proposed cash dividend for 2021 is 0.20 RMB per 10 shares, totaling 35,666,806.52 RMB, which represents a cash dividend payout ratio of 31.02%[115]. Business Operations and Strategy - The company is focusing on digital and intelligent transformation, converting a weaving workshop into a high-efficiency IoT smart weaving workshop[32]. - The company plans to enhance its risk management capabilities through self-innovation and smart manufacturing[30]. - The company is preparing for the resumption of operations at its overseas subsidiary, Sunshine Ethiopia, which had been suspended since August 2020[80]. - The company aims to enhance its core competitiveness by focusing on technology innovation, quality management, and talent development[80]. - The company is committed to developing high-tech, high-value-added products to meet market demands and drive quality development[80]. Industry Trends and Challenges - The textile industry in China is transitioning from "capacity expansion" to "value growth," with a focus on technological upgrades and brand development[34]. - The textile industry faces challenges such as structural labor shortages and rising costs, which need to be addressed for sustainable development[36]. - The textile industry is expected to face complex development challenges in 2021, despite recovering from the impacts of the COVID-19 pandemic in 2020[70]. - Fluctuations in raw material prices, particularly wool and coal, pose significant risks to the company's operating costs and product demand[81]. - Labor costs have been on a continuous rise, impacting profit margins; the company is investing in automation to mitigate production costs[81]. Corporate Governance and Compliance - The board of directors and management have guaranteed the authenticity and completeness of the annual report[8]. - The company has implemented a robust corporate governance structure, ensuring compliance with relevant laws and regulations[84]. - The company held one annual general meeting and two extraordinary meetings during the reporting period, ensuring transparency and shareholder engagement[89]. - The company has established a system for managing insider information to prevent insider trading and ensure compliance[86]. - The company has not faced any penalties from securities regulatory authorities in the past three years[98]. Environmental Responsibility - The company has established wastewater treatment facilities to preprocess wastewater before connecting to centralized treatment plants, ensuring compliance with environmental standards[125]. - The company emphasizes sustainable development and energy conservation, aiming to minimize pollutant emissions[131]. - The company has obtained pollution discharge permits for its subsidiaries, ensuring compliance with local environmental regulations[128]. - Automatic online monitoring devices have been installed at all discharge outlets, with data connected to local environmental monitoring platforms[130]. - The company has developed emergency response plans for environmental incidents, with all plans filed with the Jiangsu Provincial Environmental Protection Department[129]. Related Party Transactions - The company engaged in related party transactions, with a total amount of 1,416.35 million RMB for purchasing raw materials, accounting for 2.35% of similar transactions[142]. - The company reported a related party transaction of 817.33 million RMB for wastewater treatment services, representing 78.28% of similar transactions[142]. - The company has established a strong relationship with related parties, ensuring fair market pricing for transactions, which enhances competitiveness[145]. - The company has maintained a focus on daily operational needs through related party transactions, ensuring no harm to minority shareholders[145]. Audit and Financial Reporting - The audit report confirmed that the financial statements fairly represent Jiangsu Sunshine's financial status as of December 31, 2021[174]. - The audit identified key audit matters, including the completeness of related party and related transaction disclosures, which were addressed through various audit procedures[175]. - The financial statements were prepared in compliance with the relevant accounting standards, ensuring transparency and accountability[176]. - The audit procedures included assessing the effectiveness of internal controls related to revenue recognition, which is critical for the company's financial reporting[178].

Financial Performance - The company's operating revenue for Q3 2021 was RMB 613,415,603.34, representing a year-on-year increase of 9.09%[3] - The net profit attributable to shareholders for Q3 2021 was RMB 62,250,573.92, a significant increase of 181.41% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was RMB 58,359,205.78, up 205.34% year-on-year[3] - The basic earnings per share for Q3 2021 was RMB 0.0349, reflecting an increase of 181.45% compared to the previous year[3] - The net profit for Q3 2021 was CNY 63,801,142.89, a significant increase from CNY 4,638,866.74 in Q3 2020, representing a growth of approximately 1,276%[16] - The total profit for Q3 2021 reached CNY 77,591,929.21, compared to CNY 25,695,482.52 in the same period last year, marking an increase of about 202%[16] - Operating profit for Q3 2021 was CNY 73,646,779.87, up from CNY 25,989,037.68 in Q3 2020, reflecting a growth of approximately 184%[16] Revenue and Costs - Total operating revenue for the first three quarters of 2021 reached CNY 1,429,568,466.93, an increase of 5.5% compared to CNY 1,354,047,643.84 in the same period of 2020[15] - Total operating costs for the first three quarters of 2021 were CNY 1,344,397,026.51, up from CNY 1,322,437,783.88 in 2020, reflecting a year-on-year increase of 1.4%[15] - The company experienced a significant increase in revenue from its woolen textile business, which was the primary driver for the profit growth[7] - Total revenue from sales of goods and services for the first three quarters of 2021 was CNY 1,186,546,001.69, compared to CNY 1,103,183,596.57 in the previous year, indicating an increase of about 7.5%[18] Cash Flow and Assets - The net cash flow from operating activities for the year-to-date period was RMB 222,971,739.17, with a year-on-year increase of 249.85%[7] - The cash flow from operating activities for the first three quarters of 2021 was CNY 222,971,739.17, a turnaround from a negative cash flow of CNY -148,796,239.47 in the same period of 2020[19] - The cash and cash equivalents at the end of Q3 2021 stood at CNY 404,180,991.56, an increase from CNY 311,272,210.68 at the end of Q3 2020[20] - The company reported a significant increase in cash and cash equivalents, totaling CNY 420,216,237.51 as of September 30, 2021, down from CNY 462,124,982.49 at the end of 2020[12] Assets and Liabilities - Total assets at the end of Q3 2021 were RMB 4,728,153,489.20, a decrease of 3.76% from the end of the previous year[5] - Accounts receivable increased to CNY 884,958,479.59 as of September 30, 2021, compared to CNY 435,878,771.78 at the end of 2020, representing a growth of 102.3%[12] - Inventory as of September 30, 2021, was CNY 1,009,760,652.55, an increase from CNY 955,023,221.72 at the end of 2020, showing a rise of 5.7%[12] - Total liabilities decreased to CNY 2,433,899,544.83 as of September 30, 2021, compared to CNY 2,614,705,521.51 at the end of 2020, a reduction of 6.9%[13] - The company’s total equity as of September 30, 2021, was CNY 2,294,253,944.37, a slight decrease from CNY 2,298,257,818.30 at the end of 2020[14] Shareholder Information - The company reported a total of 96,346 common shareholders at the end of the reporting period[9] - The largest shareholder, Jiangsu Sunshine Group Co., Ltd., held 226,311,454 shares, accounting for 12.69% of the total shares[9] Research and Development - Research and development expenses for the first three quarters of 2021 were CNY 9,520,396.92, slightly up from CNY 9,220,178.05 in the same period of 2020[15] Other Income - The investment income for Q3 2021 was CNY 6,588,237.12, an increase from CNY 5,820,724.49 in the same quarter of the previous year[16] - The company experienced a decrease in other comprehensive income, with a net amount of CNY -49,971,613.56 in Q3 2021, compared to CNY -64,438,828.78 in Q3 2020[16] Financing Activities - The company reported a net cash outflow from financing activities of CNY -270,254,725.77 in Q3 2021, compared to CNY -65,444,472.14 in Q3 2020[20]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 816,152,863.59, representing a 3.09% increase compared to CNY 791,720,973.00 in the same period last year[20]. - The net profit attributable to shareholders was CNY 6,124,471.10, a significant decrease of 119.01% from a loss of CNY 32,216,781.14 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 2,567,110.97, down 107.45% from a loss of CNY 34,447,131.98 in the same period last year[21]. - The net cash flow from operating activities was CNY 162,143,339.13, a turnaround from a negative cash flow of CNY 93,148,653.26 in the previous year, marking a 274.07% improvement[21]. - Basic earnings per share increased to CNY 0.0034 from a loss of CNY 0.0181, representing a growth of 118.78% year-over-year[22]. - Diluted earnings per share also rose to CNY 0.0034 from a loss of CNY 0.0181, reflecting the same percentage increase of 118.78%[22]. - The weighted average return on equity improved to 0.30% from -1.51%, an increase of 1.81 percentage points[22]. - Operating profit reached 970,600 yuan, up 110.36% year-on-year[38]. - The textile business generated revenue of 614 million yuan, a growth of 21.27% year-on-year, with a gross margin of 24.40%, up 6.87 percentage points[38]. - Domestic sales revenue was 463 million yuan, increasing by 35.13% year-on-year, while foreign sales revenue decreased by 7.94% to 150 million yuan[38]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 4,599,070,191.00, down 6.39% from CNY 4,912,963,339.81 at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 2.33% to CNY 1,994,494,898.49 from CNY 2,042,140,759.51 at the end of the previous year[21]. - The company's total liabilities decreased by 4.24% to CNY 1,803,053,404.09 from CNY 1,882,810,256.89 at the end of the previous year[41]. - The company's cash and cash equivalents decreased by 26.58% to CNY 339,292,202.23 from CNY 462,124,982.49 at the end of the previous year[41]. - The company's total assets included CNY 1,126,388,113.01 in inventory, which accounted for 24.49% of total assets, reflecting a 17.94% increase from CNY 955,023,221.72 last year[41]. - The company's short-term borrowings decreased by 4.24% to CNY 1,803,053,404.09 from CNY 1,882,810,256.89 at the end of the previous year[41]. Industry Trends and Challenges - The textile manufacturing industry is transitioning from "capacity expansion" to "value growth," emphasizing technological upgrades and brand development[26]. - The textile industry faces challenges such as rising commodity prices and structural labor shortages, impacting production and operational pressures[27]. - Wool prices have risen significantly since 2021, impacting operational costs and increasing business risks[49]. - The textile industry faces increased operational risks due to macroeconomic uncertainties and potential declines in market demand[48]. Research and Development - The company has established several research institutions, including a national engineering technology research center for new wool spinning materials[35]. - The company is advancing towards smart manufacturing, having transformed one weaving workshop into an efficient IoT smart weaving workshop[37]. - Research and development expenses for the first half of 2021 were CNY 6,673,077.44, up from CNY 6,233,723.76 in the same period of 2020, indicating a focus on innovation[95]. Environmental Compliance - Environmental protection measures are in place, with all subsidiaries meeting relevant emission standards[56]. - The company has developed emergency response plans for environmental incidents, ensuring compliance with regulatory requirements[58]. - The company has implemented an environmental self-monitoring plan, with automatic online monitoring devices installed at all discharge outlets[59]. - There were no administrative penalties due to environmental issues during the reporting period[60]. - The company adheres to national environmental protection laws and regulations, focusing on sustainable development and minimizing pollutant emissions[60]. Legal Matters - The company is involved in a significant lawsuit related to a rental contract dispute, with a claim amounting to RMB 10.8 million in deposits and RMB 15.1 million in compensation[66]. - The company has not received any legal documents regarding the lawsuit and is currently seeking a retrial in the Shanghai High Court[66]. - The company has not faced any violations or penalties involving its directors, supervisors, or senior management during the reporting period[67]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 99,451[78]. - The top ten shareholders collectively held 34.23% of the voting rights[81]. - Jiangsu Sunshine Group Co., Ltd. held 226,311,454 shares, accounting for 12.69% of total shares[80]. - Chen Lifeng held 148,181,020 shares, representing 8.31% of total shares[80]. - The report indicated no changes in the controlling shareholder or actual controller[82]. Financial Reporting and Accounting Policies - The company's financial statements are prepared in accordance with the Chinese accounting standards[124]. - The consolidated financial statements include all subsidiaries controlled by the company, reflecting the overall financial position, operating results, and cash flows of the entire corporate group[132]. - The company recognizes revenue when control of goods or services is transferred to customers, allocating transaction prices to performance obligations based on their standalone selling prices[198]. - The company recognizes employee benefits as liabilities during the accounting period in which services are provided, including social insurance and housing fund contributions[193].

Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of RMB 15,915,009.34, a decrease of 77.29% compared to RMB 70,076,297.17 in 2019[5]. - The total operating revenue for 2020 was RMB 1,972,351,946.25, reflecting a decline of 16.04% from RMB 2,349,026,226.65 in 2019[24]. - The net cash flow from operating activities was RMB 23,945,569.94, down 83.68% from RMB 146,756,605.96 in the previous year[24]. - The net profit attributable to shareholders for the fourth quarter was CNY 26,011,100.58, a significant recovery from a loss of CNY 38,953,413.76 in the first quarter[28]. - Basic earnings per share decreased by 77.35% to CNY 0.0089 in 2020 from CNY 0.0393 in 2019[25]. - Operating profit was CNY 69.59 million, down 59.22% compared to the previous year[44]. - The textile business generated revenue of CNY 1.317 billion, a decrease of 19.64% from the previous year[44]. - The gross margin for the textile business was 19.59%, an increase of 1.22 percentage points year-on-year[44]. - The company reported a significant increase in service fees, with labor services generating 564.51 million RMB, accounting for 100% of the revenue from that segment[102]. - The company achieved a revenue of 66,609.83 million RMB from fabric sales, which is a key product line[102]. Assets and Liabilities - As of the end of 2020, total assets amounted to RMB 4,912,963,339.81, a decrease of 2.01% from RMB 5,013,696,965.61 at the end of 2019[24]. - The net assets attributable to shareholders at the end of 2020 were RMB 2,042,140,759.51, a decrease of 6.31% from RMB 2,179,676,799.83 at the end of 2019[24]. - Total current assets as of December 31, 2020, amounted to CNY 2,414,753,075.63, an increase from CNY 2,332,221,297.96 in 2019, reflecting a growth of approximately 3.5%[170]. - Total current liabilities increased to CNY 2,605,534,956.55 in 2020 from CNY 2,269,408,480.42 in 2019, reflecting an increase of about 14.8%[171]. - The company reported a significant increase in inventory, which stood at CNY 955,023,221.72 in 2020, slightly up from CNY 951,296,590.72 in 2019[170]. Cash Flow - The company’s cash flow from operating activities showed a significant recovery in the fourth quarter, reaching CNY 172,741,809.41 after negative cash flows in the first half of the year[28]. - The net cash flow from operating activities for 2020 was ¥23,945,569.94, a decrease of 83.7% compared to ¥146,756,605.96 in 2019[184]. - Total cash inflow from operating activities was ¥2,349,938,694.39, up 10.4% from ¥2,127,575,057.98 in 2019[184]. - Cash outflow from operating activities increased to ¥2,325,993,124.45, compared to ¥1,980,818,452.02 in 2019, representing a rise of 17.4%[184]. - The ending cash and cash equivalents balance was ¥444,461,294.41, down from ¥578,083,222.68 in 2019, a decrease of 23.2%[184]. Research and Development - The company applied for 38 patents during the reporting period, with 21 patents granted, including 1 invention patent[40]. - The company’s R&D expenses were CNY 13.75 million, a decrease of 17.38% compared to the previous year[48]. - Research and development expenses amounted to CNY 13.75 million, a decrease of 17.25% from CNY 16.64 million in 2019[180]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 0.10 per share, totaling RMB 17,833,403.26 based on a total share capital of 1,783,340,326 shares[5]. - The total cash dividend proposed for 2020 is RMB 17,833,403.26, distributing RMB 0.10 per 10 shares[89]. - The company distributed a total of RMB 44,583,508.15 in cash dividends for the year 2019, which was 63.62% of the net profit attributable to shareholders[91]. Operational Risks - The company has outlined potential risks in its future development strategies, which are detailed in the report[10]. - The company faces operational risks due to macroeconomic uncertainties and potential declines in market demand[83]. - Fluctuations in raw material prices, particularly wool and coal, pose significant risks to the company's operating costs[83]. - Labor costs have been rising, impacting profit margins, prompting the company to invest in automation to reduce production costs[83]. Environmental Compliance - The company reported no environmental pollution incidents during the reporting period, with total emissions for Huangtang Thermal Power at 53.77 tons/year for particulate matter and 134.42 tons/year for sulfur dioxide[111]. - The company has established wastewater treatment facilities to pre-treat wastewater before centralized processing, ensuring compliance with environmental standards[113]. - The company operates pollution control facilities including bag filters, desulfurization towers, and denitrification systems, with all equipment functioning normally and meeting emission standards[113]. Shareholder Information - The largest shareholder, Jiangsu Sunshine Group Co., Ltd., holds 226,311,454 shares, accounting for 12.69% of the total shares[124]. - The total voting rights held by the major shareholders, including Jiangsu Sunshine Group and other individuals, is 34.23%[125]. - The total number of ordinary shareholders decreased from 100,784 to 99,478 during the reporting period[122]. Management and Governance - The company underwent a management reshuffle, with several new appointments including Gao Qinghua and Miao Feng as deputy general managers[139]. - The company maintains a transparent information disclosure policy, ensuring all shareholders have equal access to information[148]. - The audit committee held six meetings during the reporting period to review financial statements and internal control evaluations[152].

Important Notice [Report Authenticity and Audit Status](index=3&type=section&id=1.1-1.4) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, which remains unaudited - The company's management (directors, supervisors, and senior executives) guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or material omissions, and assume legal responsibility[9](index=9&type=chunk) - This company's Q1 2021 report is unaudited[5](index=5&type=chunk) Company Overview [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2021, the company's operating revenue slightly increased by 1.26% year-over-year, but net profit attributable to shareholders was **-46.54 million CNY**, with losses expanding by 19.47% from the prior year, while operating cash flow significantly grew by 117.78% and total assets decreased by 6.99% from year-end Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Million CNY) | 292.95 | 289.31 | 1.26 | | Net Profit Attributable to Shareholders (Million CNY) | -46.54 | -38.95 | 19.47 (Loss Expansion) | | Net Profit After Non-Recurring Items (Million CNY) | -48.20 | -39.49 | 22.06 (Loss Expansion) | | Net Cash Flow from Operating Activities (Million CNY) | 90.39 | 41.50 | 117.78 | | Basic Earnings Per Share (CNY/share) | -0.0261 | -0.0218 | 19.72 (Loss Expansion) | | Weighted Average Return on Net Assets (%) | -2.31 | -1.81 | Decrease of 0.5 percentage points | | **Balance Sheet Indicators** | **End of Current Period** | **End of Prior Year** | **Period-End vs. Year-Start Change (%)** | | Total Assets (Billion CNY) | 4.57 | 4.91 | -6.99 | | Net Assets Attributable to Shareholders (Billion CNY) | 1.98 | 2.04 | -2.96 | Non-Recurring Gains and Losses for Q1 2021 | Item | Amount (Million CNY) | | :--- | :--- | | Government Grants | 1.07 | | Other Non-Operating Income and Expenses | 0.70 | | Other Items Defined as Non-Recurring Gains/Losses | 0.13 | | **Total** | **1.66** | [Shareholder Ownership](index=4&type=section&id=2.2%20Shareholder%20Information%20at%20Report%20End) As of the report period end, the company had **100,784 shareholders**, with controlling shareholder Jiangsu Sunshine Group Co., Ltd. and its concerted parties (Chen Lifen, Yu Qinfen, Sun Ningling) collectively holding **34.23% of voting rights**, and most shares held by the top four shareholders being pledged - As of the report period end, the company had a total of **100,784 shareholders**[11](index=11&type=chunk) - Controlling shareholder Jiangsu Sunshine Group Co., Ltd. and its concerted parties Ms. Chen Lifen, Ms. Yu Qinfen, and Ms. Sun Ningling collectively hold **34.23% of the company's voting rights**[12](index=12&type=chunk) Top Four Shareholders' Holdings and Pledges | Shareholder Name | Holding Ratio (%) | Pledged Shares Quantity | Pledged as % of Holdings | | :--- | :--- | :--- | :--- | | Jiangsu Sunshine Group Co., Ltd. | 12.69 | 194,000,000 | Approx. 85.7% | | Chen Lifen | 8.31 | 31,381,020 | Approx. 21.2% | | Yu Qinfen | 8.09 | 144,300,000 | 100% | | Sun Ningling | 5.14 | 91,648,980 | 100% | Significant Matters [Analysis of Significant Changes in Financial Statement Items](index=5&type=section&id=3.1%20Significant%20Changes%20in%20Financial%20Statements%20and%20Causes) During the reporting period, several financial items experienced significant changes: cash decreased by **29.14%** due to loan repayments, intangible assets increased by **57.49%** from new usufruct rights, sales expenses surged by **685.15%** due to accounting changes and renovation, and operating profit loss expanded by **48.11%** due to rising coal costs, while operating cash flow increased by **117.78%** from higher sales collections, and financing cash flow saw a **520.16%** outflow due to debt repayment Key Balance Sheet Changes and Causes | Item | Change (%) | Reason | | :--- | :--- | :--- | | Monetary Funds | -29.14 | Primarily due to repayment of bank loans in the current period | | Accounts Receivable Financing | -48.26 | Primarily due to decreased customer notes receivable in the current period | | Intangible Assets | 57.49 | Primarily due to new intangible assets—usufruct rights—in the current period | | Other Non-Current Assets | 255.94 | Primarily due to increased prepaid engineering costs in the current period | | Employee Compensation Payable | -71.63 | Primarily due to payment of last year's year-end bonus in the current period | Key Income Statement Changes and Causes | Item | Change (%) | Reason | | :--- | :--- | :--- | | Sales Expenses | 685.15 | Primarily due to sales personnel salaries being accounted for under this item and renovation of exhibition halls | | Credit Impairment Losses | -4722.15 | Primarily due to reversal of bad debt provisions resulting from decreased receivables in the current period | | Operating Profit | 48.11 (Loss Expansion) | Primarily due to increased coal prices in the thermal power industry leading to reduced profit in the current period | | Non-Operating Income | 71,705.50 | Primarily due to increased non-payable amounts in the current period | Key Cash Flow Statement Changes and Causes | Item | Change (%) | Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 117.78 | Primarily due to increased cash received from sales of goods and provision of services in the current period | | Net Cash Flow from Investing Activities | -94.39 (Reduced Outflow) | Primarily due to increased cash received from disposal of long-term assets in the current period | | Net Cash Flow from Financing Activities | -520.16 | Primarily due to increased cash paid for debt repayment in the current period | Appendix: Financial Statements [Consolidated Balance Sheet](index=7&type=section&id=4.1%20Consolidated%20Balance%20Sheet) As of March 31, 2021, the company's total assets were **4.57 billion CNY**, a 6.99% decrease from year-end; total liabilities were **2.34 billion CNY**, down 10.70%; the asset-liability ratio decreased from 53.22% to 51.10%; and net assets attributable to shareholders were **1.98 billion CNY**, down 2.96% from year-end Consolidated Balance Sheet Summary (Unit: Billion CNY) | Item | March 31, 2021 | December 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 2.11 | 2.42 | -12.75% | | Total Non-Current Assets | 2.46 | 2.50 | -1.44% | | **Total Assets** | **4.57** | **4.91** | **-6.99%** | | **Liabilities and Shareholder's Equity** | | | | | Total Current Liabilities | 2.33 | 2.61 | -10.74% | | Total Non-Current Liabilities | 0.01 | 0.01 | 1.36% | | **Total Liabilities** | **2.34** | **2.62** | **-10.70%** | | Total Equity Attributable to Parent Company Owners | 1.98 | 2.04 | -2.96% | | Non-Controlling Interests | 0.25 | 0.26 | -1.31% | | **Total Equity** | **2.23** | **2.30** | **-2.78%** | | **Total Liabilities and Equity** | **4.57** | **4.91** | **-6.99%** | [Consolidated Income Statement](index=12&type=section&id=4.1%20Consolidated%20Income%20Statement) In Q1 2021, the company's operating revenue was **293 million CNY**, up 1.26% year-over-year; however, due to increased operating costs (up 6.7%) and sales expenses (up 685.2%), operating profit recorded a loss of **48.46 million CNY**, expanding by 48.11% year-over-year, with net profit attributable to parent company shareholders at **-46.54 million CNY** compared to **-38.95 million CNY** in the prior year Consolidated Income Statement Summary (Unit: Million CNY) | Item | 2021 Q1 | 2020 Q1 | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 292.95 | 289.31 | 1.26% | | Total Operating Costs | 348.08 | 322.84 | 7.82% | | Operating Costs | 259.88 | 243.55 | 6.70% | | Sales Expenses | 8.60 | 1.10 | 685.15% | | Operating Profit | -48.46 | -32.72 | 48.11% (Loss Expansion) | | Total Profit | -47.75 | -33.16 | 43.99% (Loss Expansion) | | Net Profit | -49.90 | -37.90 | 31.66% (Loss Expansion) | | Net Profit Attributable to Parent Company Shareholders | -46.54 | -38.95 | 19.47% (Loss Expansion) | [Consolidated Cash Flow Statement](index=15&type=section&id=4.1%20Consolidated%20Cash%20Flow%20Statement) In Q1 2021, net cash flow from operating activities was **90.39 million CNY**, a significant 117.78% increase year-over-year, primarily due to higher cash receipts from sales; net cash outflow from investing activities significantly narrowed to **0.96 million CNY**; net cash outflow from financing activities was **209 million CNY** due to debt repayment, a stark contrast to the prior year's **49.67 million CNY** inflow, resulting in a **135 million CNY** decrease in cash and cash equivalents at period end Consolidated Cash Flow Statement Summary (Unit: Million CNY) | Item | 2021 Q1 | 2020 Q1 | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 90.39 | 41.50 | 117.78% | | Net Cash Flow from Investing Activities | -0.96 | -17.13 | -94.39% (Reduced Outflow) | | Net Cash Flow from Financing Activities | -208.69 | 49.67 | -520.16% | | Effect of Exchange Rate Changes on Cash | -15.77 | -13.78 | -14.44% | | **Net Increase/Decrease in Cash and Cash Equivalents** | **-135.03** | **60.26** | **-323.99%** | [Parent Company Financial Statements](index=9&type=section&id=4.1%20Parent%20Company%20Statements) Parent company statements reflect the headquarters' financial position; in Q1 2021, the parent company reported a net loss of **28.02 million CNY**, less than the consolidated loss of **46.54 million CNY**, indicating some subsidiaries are unprofitable, and the parent company's operating cash flow of **220 million CNY** significantly exceeded the consolidated **90.39 million CNY**, suggesting potential net cash outflow from subsidiaries' operations or internal fund transfers - The parent company's net loss for Q1 2021 was **28.02 million CNY**, while the consolidated net loss attributable to the parent was **46.54 million CNY**, a difference of **-18.52 million CNY**, indicating a negative contribution from subsidiaries to current period net profit[26](index=26&type=chunk)[28](index=28&type=chunk) - The parent company's net cash flow from operating activities was **220 million CNY**, whereas the consolidated net cash flow from operating activities was **90 million CNY**, suggesting an approximate **130 million CNY** net cash outflow from subsidiaries' operating activities[30](index=30&type=chunk)[31](index=31&type=chunk)

Financial Performance - Net profit attributable to shareholders was CNY -10,096,091.24, a decline of 111.95% year-on-year[5] - Operating revenue for the first nine months was CNY 1,354,047,643.84, down 21.72% from the same period last year[5] - Net profit for Q3 2020 decreased by 95.59% to ¥4,638,866.74 compared to ¥105,308,805.97 in the same period last year[11] - Investment income dropped by 80.28% to ¥5,820,724.49 from ¥29,510,467.81 year-on-year[11] - The company anticipates a significant decline in cumulative net profit for the year due to the impact of COVID-19 and economic downturn[12] - Total operating revenue for Q3 2020 was CNY 562.33 million, a decrease of 13.0% compared to CNY 646.64 million in Q3 2019[21] - Total operating costs for Q3 2020 were CNY 522.20 million, down 11.7% from CNY 591.62 million in Q3 2019[21] - Net profit for the first three quarters of 2020 was CNY 192.10 million, a decrease of 11.5% compared to CNY 217.06 million in the same period of 2019[21] - The total profit for Q3 2020 was CNY 35.84 million, a decrease of 52.1% from CNY 74.90 million in Q3 2019[24] - The company reported a total profit of CNY 65,297,636.09 for Q3 2020, down from CNY 87,905,315.38 in Q3 2019, marking a decline of approximately 25.8%[26] Cash Flow - Cash flow from operating activities showed a net outflow of CNY -148,796,239.47, a decrease of 140.72% compared to the previous year[5] - Cash flow from operating activities for the first three quarters of 2020 was negative at CNY -148,796,239.47, compared to a positive CNY 365,435,049.89 in the same period of 2019[30] - Cash flow from investing activities for the first three quarters of 2020 was negative at CNY -47,908,521.32, compared to CNY -89,926,756.12 in the same period of 2019[30] - The net cash flow from operating activities for the first three quarters of 2020 was -156,685,616.04 RMB, compared to -98,339,234.56 RMB in the same period of 2019, indicating a decline of approximately 59%[32] - Total cash inflow from operating activities decreased to 696,413,475.76 RMB in 2020 from 1,415,423,811.42 RMB in 2019, a drop of about 51%[32] - Cash outflow from operating activities also decreased to 853,099,091.80 RMB in 2020 from 1,513,763,045.98 RMB in 2019, reflecting a reduction of approximately 44%[32] - Cash flow from investment activities showed a net inflow of 57,946,262.96 RMB in 2020, up from 40,816,323.94 RMB in 2019, representing an increase of about 42%[33] - The net cash flow from financing activities turned negative at -37,105,669.35 RMB in 2020, compared to a positive 270,414,511.13 RMB in 2019[33] Assets and Liabilities - Total assets decreased by 2.33% to CNY 4,897,097,532.47 compared to the end of the previous year[5] - Total assets as of September 30, 2020, were ¥4,897,097,532.47, down from ¥5,013,696,965.61 at the end of 2019[15] - Total liabilities as of September 30, 2020, were CNY 2,919.12 million, compared to CNY 2,728.76 million at the end of 2019, reflecting an increase of 6.9%[20] - The company’s equity attributable to shareholders was CNY 2,060.56 million as of September 30, 2020, down from CNY 2,179.68 million at the end of 2019[20] - The company reported a total current asset of 2,332,221,297.96 RMB, consistent with the previous year’s figures[35] - The company's total liabilities amounted to CNY 2,728,759,791.79, with current liabilities at CNY 2,436,845,742.07[40] Shareholder Information - The company had a total of 108,030 shareholders at the end of the reporting period[8] - The largest shareholder, Jiangsu Sunshine Group Co., Ltd., held 10.98% of the shares, with significant pledges on its holdings[8] Other Financial Metrics - The weighted average return on equity decreased by 4.30 percentage points to -0.47%[5] - Cash and cash equivalents decreased by 46.73% to CNY 327,856,471.91 due to reduced sales receipts[10] - Accounts receivable increased by 58.75% to CNY 832,218,847.56, indicating a decrease in cash collection from customers[10] - Prepayments decreased by 81.56% to CNY 18,089,308.32, reflecting that previously prepaid amounts have been received[10] - Other comprehensive income showed a significant change, with a loss of ¥-64,438,828.78 compared to a gain of ¥3,027,181.73 in the previous year[11] - The company reported a decrease in other comprehensive income of CNY -47,841,044.75[37]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 791,720,973, a decrease of 26.90% compared to CNY 1,083,070,419 in the same period last year[17]. - The net profit attributable to shareholders was a loss of CNY 32,216,781.14, representing a decline of 181.07% from a profit of CNY 39,741,628.35 in the previous year[18]. - The net cash flow from operating activities was a negative CNY 93,148,653.26, down 142.25% from CNY 220,444,231.51 in the same period last year[18]. - The total assets at the end of the reporting period were CNY 4,927,667,681.14, a decrease of 1.72% from CNY 5,013,696,965.61 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 4.97% to CNY 2,071,392,292.17 from CNY 2,179,676,799.83 at the end of the previous year[18]. - Basic earnings per share for the reporting period (1-6 months) decreased to -0.0181 yuan/share, a decline of 181.17% compared to the same period last year[19]. - The weighted average return on net assets dropped to -1.51%, a decrease of 3.32 percentage points year-on-year[19]. - The company reported a revenue of 792 million RMB, a decrease of 26.90% year-on-year[34]. - The textile business generated a revenue of 506 million RMB, down 33.14% compared to the same period last year[34]. - The gross margin for the textile business was 17.54%, a decrease of 1.83 percentage points from the previous year[34]. - The company’s cash flow from operating activities was -93.15 million RMB, a decline of 142.25% compared to the previous year[38]. - The company anticipates a substantial decline in cumulative net profit compared to the same period last year due to the impact of COVID-19 and economic downturns[47]. - The comprehensive income for the current period showed a total loss of 55,533,420, reflecting a significant decline in profitability[106]. - The company reported a decrease in retained earnings by 44,583,530, indicating challenges in profit distribution to shareholders[105]. Industry Context - The company operates in the textile manufacturing industry, specifically in the wool spinning sector, with a focus on high-end woolen fabrics[22]. - The textile industry is facing challenges due to the global economic downturn and the impact of the COVID-19 pandemic, leading to a decline in export trade[25]. - Rising raw material prices, particularly wool and coal, pose a risk to the company's production costs and overall profitability[49]. - Labor cost increases in the labor-intensive industry may adversely affect profit growth, prompting the company to adopt automation and overseas investments to mitigate costs[49]. - The textile and apparel market demand is affected by macroeconomic uncertainties, which may negatively impact the company's operations[49]. Operational Challenges - The company faced challenges in its overseas operations due to the pandemic and geopolitical risks, particularly in Ethiopia[33]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period[54]. - The company has not reported any changes or progress in previously disclosed asset acquisitions or disposals involving related parties[57]. - The company has not disclosed any new significant related party transactions that have not been previously announced[56]. - The company has not reported any overdue guarantees or defaults related to its financial commitments[62]. Related Party Transactions - The total amount of related party transactions reached 24,192.75 million RMB, with various transactions including labor services and sales of goods[57]. - The company engaged in carbonization processing with a related party, generating a transaction amount of 21.63 million RMB, accounting for 100% of similar transactions[55]. - Wastewater treatment services were provided to a related party, amounting to 325.61 million RMB, also representing 100% of similar transactions[55]. - The company purchased gasoline from a wholly-owned subsidiary, with a transaction value of 196.87 million RMB, which accounted for 96.40% of similar transactions[55]. - The company’s related party transactions are based on market prices, ensuring fairness and avoiding harm to the interests of minority shareholders[57]. Environmental Compliance - The company has established wastewater treatment facilities to pre-treat wastewater before centralized processing, ensuring compliance with environmental standards[65]. - Major pollutants from the company's subsidiaries include particulate matter and sulfur dioxide, with emissions from Huantang Thermal Power being 53.77 tons/year and 134.42 tons/year respectively, both within regulatory limits[64]. - The company has implemented air pollution control measures, including bag filters and desulfurization towers, with all facilities operating normally and meeting emission standards during the reporting period[65]. - The company has obtained pollution discharge permits for its thermal power plants, ensuring compliance with local environmental regulations[66]. - The company has developed emergency response plans for environmental incidents, which have been filed with the local environmental protection authority[67]. Financial Position - The total liabilities and equity at the end of the period amounted to 2,342,455,000, showing a stable financial position despite losses[104]. - The total owner's equity at the end of the first half of 2020 was CNY 2,071,494,741.05, a decrease of CNY 90,260,656.63 compared to the beginning of the year[109]. - The total assets at the end of the reporting period were CNY 2,451,484,023.85, indicating a need for strategic asset management[112]. - The company has no outstanding guarantees for subsidiaries, indicating a conservative approach to financial risk management[63]. - The company reported a significant increase in intercompany loans, with the balance rising to CNY 581,452,651.87 from CNY 433,053,776.18[59]. Management and Governance - The company appointed new executives, including Gao Qinghua and Miao Feng as deputy general managers[80]. - There were no changes in the controlling shareholder or actual controller during the reporting period[78]. - The company has subsidiaries including Jiangsu Sunshine Woolen Garment Sales Co., Ltd. and Jiangyin Jindi Wool Textile Co., Ltd.[118]. - The company confirmed that during the reporting period, if a subsidiary or business is added due to a merger not under common control, the income, expenses, and profits from the acquisition date to the end of the reporting period will be included in the consolidated income statement[128]. Accounting Policies - The company follows the accounting standards for enterprises, ensuring that the financial statements reflect a true and complete picture of its financial status[120]. - The company has implemented changes in accounting estimates and policies as per the revised accounting standards issued by the Ministry of Finance[192]. - The company has adopted the new revenue recognition standards starting from January 1, 2020, without retrospective adjustment to comparative financial statements[192]. - The company recognizes expected liabilities when certain conditions are met, measuring them based on the best estimate of required expenditures[184]. - The company recognizes expected credit losses for financial assets based on significant increases in credit risk since initial recognition[143].

Financial Performance - Net profit attributable to shareholders decreased by 259.02% to a loss of CNY 38,953,413.76 compared to the same period last year[6]. - Operating revenue decreased by 29.53% to CNY 289,311,573.53 compared to the same period last year[6]. - Basic earnings per share decreased by 257.38% to CNY -0.0218 compared to CNY -0.0061 in the same period last year[6]. - Total revenue for Q1 2020 decreased significantly, resulting in an operating profit of -32,715,561.07 RMB, a decline of 4962.58% compared to the previous year[13]. - Net profit attributable to the parent company was -38,953,413.76 RMB, representing a 259.02% increase in losses year-over-year[13]. - The company reported a significant decrease in other income, down 50.25% to 1,034,691.11 RMB, primarily due to reduced government subsidies[13]. - The company's total comprehensive income for the period was -43,622,568.40 RMB, reflecting a 666.09% increase in losses year-over-year[13]. - The company's operating profit for Q1 2020 was -¥34,734,661.14, compared to -¥15,681,713.29 in Q1 2019, showing increased operational losses[28]. - The net profit for Q1 2020 was a loss of ¥37,904,147.85, compared to a loss of ¥6,857,080.57 in Q1 2019, reflecting a significant decline in profitability[26]. Cash Flow and Liquidity - Net cash flow from operating activities improved to CNY 41,504,283.80 from a negative CNY 88,125,825.19 in the previous year[6]. - Cash flow from operating activities showed a net inflow of 41,504,283.80 RMB, a change of -147.10% compared to the previous year, primarily due to reduced cash payments for goods and services[13]. - Total cash inflow from operating activities was ¥352,718,243.99, while cash outflow was ¥311,213,960.19, resulting in a net cash inflow of ¥41,504,283.80[32]. - The net cash flow from operating activities for Q1 2020 was ¥41,504,283.80, a significant improvement compared to a net outflow of ¥88,125,825.19 in Q1 2019[32]. - The cash outflow for purchasing goods and services was ¥141,947,520.31 in Q1 2020, down from ¥524,444,622.06 in Q1 2019, indicating a reduction of about 73.0%[32]. Assets and Liabilities - Total assets increased by 1.40% to CNY 5,083,836,894.20 compared to the end of the previous year[6]. - Current assets totaled 2,430,996,924.56 RMB, compared to 2,332,221,297.96 RMB in the previous year, indicating growth in liquidity[19]. - Total liabilities increased to CNY 2,933,718,506.43 in Q1 2020 from CNY 2,728,759,791.79 in Q1 2019, reflecting a rise of 7.5%[23]. - The company's total assets reached CNY 5,060,289,842.97, up from CNY 4,890,515,189.47 in the previous year[24]. - Cash and cash equivalents were CNY 399,169,464.07, compared to CNY 282,059,407.16 in the previous period, indicating a significant increase[22]. - Inventory levels rose to CNY 964,814,824.97 from CNY 917,012,964.44, showing a growth of 5.2%[22]. - The total equity attributable to shareholders was CNY 2,126,571,336.54, down from CNY 2,161,755,397.68, indicating a decrease of 1.6%[24]. Shareholder Information - The number of shareholders reached 122,139, with the top ten shareholders holding a combined voting power of 31.52%[10][11]. Investment Activities - The company invested 480 million RMB in the establishment of a wholly-owned subsidiary in Ethiopia, which has commenced trial production[13]. - Investment activities resulted in a net cash outflow of -17,132,180.49 RMB, a decrease of 73.27% compared to the previous year[13]. Government Subsidies and Other Income - The company reported a government subsidy of CNY 1,034,691.11 during the period[8]. - The company experienced a decrease in cash received from sales of goods and services, totaling ¥204,371,941.20 in Q1 2020 compared to ¥338,660,688.37 in Q1 2019, representing a decline of approximately 39.6%[35].