Financial Performance - The company's total revenue for 2022 was CNY 1,148,583,808.97, representing a decrease of 11.78% compared to 2021[21]. - The net profit attributable to shareholders for 2022 was CNY 26,072,701.66, down 64.38% from the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 21,618,783.75, a decrease of 58.30% year-on-year[21]. - The net cash flow from operating activities was CNY 82,955,787.68, an increase of 10.60% compared to 2021[21]. - The company's total assets as of December 31, 2022, were CNY 2,057,734,180.81, a decrease of 2.61% from the end of 2021[21]. - The net assets attributable to shareholders at the end of 2022 were CNY 842,671,178.44, an increase of 0.86% compared to the end of 2021[21]. - Basic earnings per share decreased by 64.36% to CNY 0.0959 in 2022 from CNY 0.2691 in 2021[22]. - Diluted earnings per share also decreased by 64.36% to CNY 0.0959 in 2022 from CNY 0.2691 in 2021[22]. - The weighted average return on equity fell by 6.05 percentage points to 3.1064% in 2022 from 9.1608% in 2021[22]. - The net profit attributable to shareholders in Q4 2022 was a loss of CNY 1,511,094.58, contrasting with profits in the previous three quarters[24]. - The company reported a total revenue of CNY 210,792,491.72 in Q4 2022, down from CNY 327,711,070.45 in Q3 2022[24]. Dividend Policy - The proposed cash dividend for 2022 is CNY 0.288 per share, with a total distribution of CNY 7,833,600[6]. - The cash dividend payout ratio for the year was 30.05% of the net profit attributable to shareholders[6]. - The company plans to retain the remaining undistributed profits for future distribution[6]. - The company prioritizes cash dividends in its profit distribution policy, aiming for a minimum of 10% of the distributable profit to be allocated as dividends if both net profit and distributable profit are positive[167]. - The company aims for cash dividends to constitute at least 80% of profit distribution when in a mature stage without major capital expenditure plans[167]. - The company has a cash dividend policy that requires a cumulative distribution of at least 30% of the average distributable profit over the last three years[167]. - The company distributed a cash dividend of 0.808 RMB per 10 shares, totaling 21,977,600 RMB, which represents 30.03% of the net profit attributable to ordinary shareholders in the consolidated financial statements[173]. Operational Efficiency and Technology - The company is focusing on digitalization, intelligence, and green technology to enhance production efficiency and reduce costs[30]. - The company aims to improve product order structure and increase the proportion of high-value products to enhance profitability[30]. - The company has implemented smart energy-saving production equipment and automated systems to optimize production management[30]. - The company is committed to implementing green manufacturing practices and adhering to national environmental policies to enhance sustainability[53]. - The company is investing in new product development, emphasizing functionality, comfort, and innovative designs to meet market demands[52]. - The company is actively pursuing modernization in its dyeing facilities to become a benchmark in the industry[53]. - The company is committed to increasing research and development in green technologies to meet environmental standards[135]. - The company has established a comprehensive energy management center to lead energy-saving and emission-reduction efforts[190]. - The company has implemented advanced technologies for wastewater treatment, including an intelligent micro-aeration system and an automatic backwashing sand filtration system[193]. Market and Industry Trends - The textile industry is facing new challenges and opportunities due to digital economy, smart technology, and green development, prompting government policies to support transformation and upgrade[34]. - The RCEP agreement, effective from January 1, 2022, aims to reduce trade costs in East Asia, providing a platform for China's new development pattern[35]. - The "14th Five-Year" energy conservation and emission reduction plan targets a 13.5% reduction in energy consumption per unit of GDP by 2025 compared to 2020 levels[37]. - The introduction of the "China Cotton" sustainable production standard marks a significant step towards sustainable practices in the cotton industry[39]. - The textile industry is focusing on key technological advancements such as online dyeing liquid addition and efficient wastewater treatment and reuse, with a goal to create demonstration enterprises for wastewater recycling[43]. - The digital transformation plan for the textile industry (2022-2024) includes the promotion of intelligent production and digital management solutions[42]. - The government aims to enhance the integration of digital technology in the consumer goods industry, with specific goals set for 2025 to improve product variety, quality, and brand influence[44]. - The textile industry in China faced significant challenges in 2022, including geopolitical conflicts, raw material price fluctuations, and high shipping costs, leading to a weakened global economic growth and domestic demand[121]. Environmental and Social Responsibility - The company has established an environmental protection mechanism and invested 1,430.07 million RMB in environmental protection during the reporting period[180]. - The average COD emission concentration for 2022 was 62.68 mg/L, significantly below the standard value of 200 mg/L, with total COD emissions of 132.67 tons against a limit of 894.6 tons[182]. - The company has a wastewater treatment facility with a capacity of 25,000 tons/day at the old plant and 13,000 tons/day at the new plant, both operating effectively and meeting environmental standards[183][184]. - The company has not reported any instances of exceeding pollution discharge limits during the reporting period[181]. - The company has been recognized as a "National Advanced Environmental Protection Collective" and a "National Clean Production Demonstration Enterprise" among other accolades[191]. - The company has made direct donations totaling 1,166,000 CNY, including 1,000,000 CNY to the Red Cross for pandemic control efforts[196]. - The company has engaged in multiple charitable activities, benefiting a total of 344 individuals through various forms of assistance[200]. Governance and Management - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations, and protecting the rights of minority shareholders[138]. - The company has implemented internal rules for board meetings and established various committees to enhance oversight and decision-making processes[139]. - The company adheres to strict information disclosure practices, ensuring timely and accurate reporting of financial and operational information[141]. - The company’s governance practices include regular evaluations and elections of board members to ensure effective oversight[145]. - The company has maintained its shareholding structure, with no changes in the number of shares held by key executives during the reporting period[146]. - The company’s management team includes individuals with significant experience in finance, law, and management, contributing to strategic decision-making[147]. Future Outlook - The company's 2023 revenue target is set at 1.2 billion with a cost target of 1 billion[131]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[150]. - The company is exploring potential acquisitions to enhance its supply chain efficiency and market reach[150]. - The company aims to strengthen market development and innovate marketing models to fully leverage its potential[135]. - The company is committed to adhering to national environmental policies and investing in pollution control technologies[129].

Financial Performance - The company's operating revenue for the first half of 2022 was approximately CNY 610.08 million, representing a 2.26% increase compared to CNY 596.62 million in the same period last year[15]. - The net profit attributable to shareholders for the first half of 2022 was CNY 14.79 million, a decrease of 53.26% from CNY 31.65 million in the previous year[15]. - The basic earnings per share for the first half of 2022 was CNY 0.0544, down 53.22% from CNY 0.1163 in the same period last year[15]. - The net cash flow from operating activities decreased by 27.82% to CNY 38.02 million, compared to CNY 52.68 million in the previous year[15]. - The company's total assets at the end of the reporting period were approximately CNY 2.07 billion, a decrease of 1.91% from CNY 2.11 billion at the end of the previous year[15]. - The weighted average return on net assets for the first half of 2022 was 1.76%, down 2.28 percentage points from 4.04% in the same period last year[15]. - The company's operating profit decreased by 49.79% to RMB 18.58 million from RMB 37.01 million year-on-year, primarily due to increased raw material costs and inventory impairment provisions[40]. - Net profit fell by 53.26% to RMB 14.79 million from RMB 31.65 million in the previous year, reflecting the decline in operating profit[40]. Industry and Market Position - The company operates primarily in the textile industry, focusing on the production and processing of knitted and woven fabrics, with 70-80% of its products indirectly exported to markets including Hong Kong, the Middle East, Europe, and Japan[19]. - The company operates in the weaving and dyeing sector of the textile industry, primarily providing knitted and dyed fabrics for children's clothing, sportswear, and mid-to-high-end T-shirts and underwear, with relatively stable year-round operations and limited seasonal fluctuations[20]. - The textile industry has shown resilience during the COVID-19 pandemic, effectively ensuring public health and safety while facing challenges such as global economic instability and rising inflation pressures[23]. - The company is focusing on technological innovation, green manufacturing, and smart manufacturing as strategic priorities to adapt to the evolving industry landscape[24]. - The company is adapting to demographic changes, including an aging population and declining labor force, which are impacting the labor-intensive textile industry[26]. Environmental and Sustainability Initiatives - The company is responding to stringent environmental regulations and the global push for carbon neutrality by enhancing its green production capabilities and adopting sustainable practices[26]. - The company has achieved a significant upgrade in its production facilities, introducing advanced intelligent and green technologies, aiming to establish a digital factory that meets industry-leading standards[30]. - The new factory has been recognized as a three-star green industrial building, complying with national standards and receiving accolades from the Ministry of Industry and Information Technology[30]. - The wastewater treatment system has been upgraded to exceed national discharge standards, achieving a water reuse rate of over 50%[30]. - The company has developed a new dyeing process for polyester-cotton fabrics that reduces production steps by 4-5, significantly lowering energy consumption and pollution discharge[31]. - The introduction of the SORONA® fiber series aligns with sustainable development goals, utilizing renewable plant-based materials[31]. - The company has invested RMB 11,523.58 million in wastewater treatment engineering and equipment, with a depreciation of RMB 240.45 million in the first half of 2022[77]. - The company has been recognized as a "National Advanced Collective for Environmental Protection" and has received various environmental honors[84]. Research and Development - Research and development expenses increased by 33.49% to RMB 14.59 million from RMB 10.93 million year-on-year, indicating a focus on innovation[41]. - The company has filed 6 invention patent applications and received authorization for 2 patents in the first half of 2022, enhancing its intellectual property portfolio[34]. - The company has invested $10 million in research and development for new technologies aimed at improving operational efficiency[159]. Financial Management and Investments - Cash and cash equivalents decreased by 18.70% to ¥323,439,733.91, accounting for 15.61% of total assets[44]. - Accounts receivable increased by 4.07% to ¥204,044,692.52, representing 9.85% of total assets, attributed to increased sales revenue[45]. - Prepayments surged by 178.10% to ¥41,399,172.44, constituting 2.00% of total assets, due to advance payments for raw materials[45]. - Long-term borrowings increased by 35.34% to ¥281,750,000.00, representing 13.59% of total liabilities, due to new three-year long-term loans[50]. - The company has maintained cooperation with multiple banks to ensure funding needs and reduce financing costs[66]. Shareholder and Governance Matters - The company plans to ensure that cash dividends account for no less than 40% of the profit distribution in the next three years[91]. - The company will prioritize cash dividends during profit distribution, with the possibility of additional stock dividends and capital reserve transfers[91]. - The company has not reported any significant litigation or arbitration matters during the reporting period[93]. - The company has not disclosed any major contracts or significant related party transactions that are pending or have not been fulfilled[97]. Risks and Challenges - The company faces risks from international market uncertainties, including the ongoing COVID-19 pandemic and geopolitical tensions, which may impact demand and operational stability[64]. - Fluctuations in raw material and energy prices pose risks to production costs, particularly for cotton, dyes, and energy sources like natural gas and electricity[64]. - The company faces challenges from the digital economy, requiring more specialized and comprehensive digital applications across various production and service stages[25]. Future Outlook and Strategic Plans - The company plans to focus on market expansion and new product development to enhance future growth prospects[135]. - The company aims to strengthen its macro-strategic awareness and crisis management to maintain competitiveness in both domestic and international markets[28]. - The company is actively negotiating with government departments to expedite the relocation of its weaving, dyeing, and printing businesses, which are currently affected by land issues[56].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 264,431,004.95, representing a 15.00% increase compared to the same period last year [5] - The net profit attributable to shareholders decreased by 3.66% to CNY 4,701,304.42, while the net profit after deducting non-recurring gains and losses dropped by 49.18% to CNY 3,452,712.78 [5] - The total revenue for the first quarter of 2022 was not explicitly stated, but the company reported significant changes in various financial metrics, indicating a focus on improving operational efficiency [24] - The net profit for Q1 2022 was ¥1,073,290.86, down 76.0% from ¥4,473,736.55 in Q1 2021 [35] - Basic and diluted earnings per share for Q1 2022 were both ¥0.0173, a decrease from ¥0.0179 in Q1 2021 [26] Cash Flow - The net cash flow from operating activities was negative at CNY -29,039,295.66, indicating cash outflow during the quarter [5] - In Q1 2022, the cash inflow from operating activities was CNY 393,148,500.22, a significant increase of 78% compared to CNY 220,839,862.91 in Q1 2021 [36] - The net cash flow from operating activities turned positive at CNY 71,342,629.79, compared to a negative CNY 58,030,253.03 in the same period last year [36] - Cash flow from operating activities showed a net outflow of ¥29,039,295.66 in Q1 2022, improving from a net outflow of ¥41,847,139.08 in Q1 2021 [29] - The cash inflow from financing activities was CNY 94,062,454.56, a substantial increase from CNY 29,500,000.00 in Q1 2021, representing a 218% growth [38] Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,014,160,425.31, down 4.67% from the end of the previous year [6] - The company's current assets totaled CNY 947,870,795.55, down from CNY 1,084,184,819.26, indicating a decrease of about 12.56% [22] - The total liabilities decreased to CNY 1,173,447,313.58 from CNY 1,277,358,284.08, reflecting a decrease of approximately 8.14% [23] - The total assets decreased to ¥1,935,118,981.73 as of March 31, 2022, from ¥2,015,252,104.01 at the end of 2021 [33] - The company's cash and cash equivalents were ¥142,093,694.44 as of March 31, 2022, compared to ¥163,886,095.87 at the end of 2021 [31] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 22,413 [9] - The top three shareholders held a combined 28.96% of the company's shares, with the largest shareholder owning 10.72% [9] Investments and Projects - The total investment for the new factory project in Fujian Jinjiang Economic Development Zone is approximately RMB 850 million, increased from the original RMB 650 million [11] - The new factory has been completed and is now in the process of obtaining completion certificates, with the main dyeing production line officially in operation, stabilizing the original capacity from the old factory [12] - The Henan Anyang project has completed land reserve matters with a total of 424.08 acres acquired for the project [15] - The investment for the "Henan Fengzhu (Anyang) 30,000 tons dyeing project" is estimated to be around RMB 300 million, with the main structure of the dyeing workshop already capped [15] Operational Efficiency and Strategy - The company is focused on enhancing its market share and operational scale through the new factory's production capabilities [12] - The company is committed to environmental compliance and adapting to new regulations in the dyeing industry as part of its strategic initiatives [14] - The company has authorized management to handle the transfer of equity and land use rights to alleviate financial pressure and enhance liquidity [16] Research and Development - Research and development expenses increased to ¥7,811,664.99 in Q1 2022, up 54% from ¥5,058,996.72 in Q1 2021 [25] - Research and development expenses for Q1 2022 were ¥5,383,666.27, up from ¥3,074,328.74 in Q1 2021, indicating a focus on innovation [34]

Financial Performance - The company achieved a total revenue of ¥1,301,955,874.40 in 2021, representing a 24.03% increase compared to ¥1,049,746,676.39 in 2020[22]. - The net profit attributable to shareholders was ¥73,194,678.84, a significant increase of 147.05% from ¥29,627,686.74 in the previous year[22]. - The basic earnings per share rose to ¥0.2691, reflecting a 147.11% increase compared to ¥0.1089 in 2020[23]. - The company plans to distribute a cash dividend of ¥0.808 per 10 shares, amounting to a total of ¥21,977,600 (including tax) based on a total share capital of 272,000,000 shares[6]. - The cash dividend payout ratio for the year was 30.03%, calculated as the total cash dividends distributed relative to the net profit attributable to shareholders[6]. - Total assets increased by 10.57% to ¥2,112,810,074.45 at the end of 2021, compared to ¥1,910,833,283.78 at the end of 2020[22]. - The company's net assets attributable to shareholders reached ¥835,451,790.37, an 8.93% increase from ¥766,934,916.39 in the previous year[22]. - The operating cash flow net amount decreased by 42.05% to ¥75,007,031.13 from ¥129,428,197.45 in 2020[22]. - The total amount of non-recurring gains and losses for 2021 was approximately 21.35 million RMB, significantly higher than the previous year's 9.41 million RMB[26]. - The company reported a net cash flow from operating activities of ¥75,007,031.13, a decrease of 42.05% compared to ¥129,428,197.45 in the previous year[67]. Investment and Development - The company has invested in advanced low-bath ratio intelligent equipment to improve product quality and reduce energy consumption, aiming for industry-leading technology levels[30]. - The company has established a new production line at the Antong new plant, which has begun operations and is expected to enhance production capacity and efficiency[30]. - The company is investing in modernizing its dyeing factories to become a benchmark in the industry, emphasizing smart and green technologies[48]. - The company completed the construction of the new factory in An Dong, which is expected to enhance production capacity and market share[104]. - The total investment for the An Dong new factory project was approximately CNY 850,000,000.00[103]. - The company is actively negotiating with government departments to facilitate the relocation of its old factory[104]. - The investment for the "Henan Fengzhu (Anyang) 30,000 tons printing and dyeing project" is estimated to be around 300 million RMB, with the main structure of the dyeing workshop already capped and currently undergoing decoration[107]. Market and Industry Trends - The textile industry is facing challenges and opportunities due to high-end technology and environmental requirements, alongside the impacts of the COVID-19 pandemic[34]. - The new import tariff adjustments effective from January 1, 2021, aim to promote high-quality development in the textile and apparel sectors[35]. - The implementation of the new "Pollutant Discharge Permit Management Regulations" starting March 1, 2021, emphasizes the importance of environmental management in industrial production[36]. - The company is expected to benefit from the Regional Comprehensive Economic Partnership (RCEP), which will enhance trade scale and deepen supply chain cooperation in the textile industry[38]. - The "14th Five-Year Plan" for the textile industry emphasizes high-quality development focusing on technology, fashion, and sustainability[39]. - The company recognizes the importance of domestic demand as a strategic base for industry development, aiming to enhance supply quality and efficiency to address external uncertainties[115]. - The digital economy is shifting focus from consumer internet to industrial internet, requiring the textile industry to adapt to more complex application scenarios[116]. Environmental and Sustainability Initiatives - The company is committed to green manufacturing practices, adhering to national environmental policies and implementing clean production processes[48]. - The company has invested a total of RMB 1,360.93 million in pollution control measures in 2021, an increase of RMB 419.78 million from 2020[174]. - The company has constructed wastewater treatment facilities with a capacity of 25,000 tons/day and 13,000 tons/day, both operating effectively and meeting environmental standards[172][173]. - The company has received multiple environmental honors, including being recognized as a "National Clean Production Demonstration Enterprise" and a "National Circular Economy Pilot Enterprise"[182]. - The company has established a photovoltaic power generation facility with an expected capacity of 6.5 MW, aiming for an annual output of 7 million kWh[184]. - The company has implemented a wastewater reuse rate of over 50%, achieving advanced levels in the industry[184]. - The company has developed a waste heat recovery system for its heat-setting machines, contributing to energy savings and efficiency improvements[182]. Corporate Governance and Management - The company has maintained a transparent and effective governance structure, aligning with legal and regulatory standards[168]. - The company has established various management systems, including shareholder meeting rules and information disclosure management, to ensure compliance and transparency[134]. - The company has implemented a robust internal control system to manage risks and ensure compliance with regulatory requirements[134]. - The company has a comprehensive shareholder return plan for 2020-2022, focusing on dividends and capital appreciation[134]. - The company has appointed new executives including Chen Qiang as Chairman and Chen Chengqing as General Manager due to internal restructuring[146]. - The company has a long-term commitment to not transfer or reduce its shareholdings within three years of the control period[188]. Research and Development - The company has focused on technological innovation and environmental sustainability, aligning with national policies on energy conservation and emission reduction[32]. - Research and development expenses increased by 28.13% to RMB 25,464,364.64, reflecting a rise in direct material inputs for R&D[67]. - The total R&D expenditure for the period amounted to ¥25,464,364.64, representing 1.96% of the operating revenue[86]. - The company developed several new fabric technologies in 2021, including anti-mite knitted fabric and hyaluronic acid blended fabric, targeting health-conscious consumer markets[60][61]. - Ongoing research and development efforts are focused on innovative textile technologies, with a budget allocation of 5 million RMB for the next year[140]. Challenges and Risks - The company is facing pressures from rising raw material prices and geopolitical tensions affecting the textile industry[44]. - The company recognizes potential risks from international trade tensions and the ongoing impact of the COVID-19 pandemic on the textile industry[123]. - The company faced risks from energy price fluctuations, particularly due to large-scale production limits and electricity restrictions during the reporting period[125]. - The RMB appreciated by 2.6% against the USD over the year, with the highest exchange rate at 6.35 and the lowest at 6.57, indicating potential volatility in the foreign exchange market[125]. Future Outlook - The company aims for a revenue target of 1.4 billion and a cost target of 1.18 billion for 2022[122]. - The company plans to enhance its production quality management system and ensure product quality compliance[120]. - The company will focus on expanding its overseas market share, targeting major clients as key growth points for export business[120]. - The company is committed to increasing investment in environmental protection facilities and adopting clean production processes[120]. - The company intends to strengthen new product development and maintain continuous growth in technology investment[120]. - The company will actively monitor international market dynamics and adjust strategies to maintain competitiveness[119].

Financial Performance - The company's operating revenue for the third quarter reached ¥371,513,186.43, an increase of 34.98% compared to the same period last year[5] - The net profit attributable to shareholders was ¥41,931,977.12, reflecting a significant increase of 446.26% year-over-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥35,229,123.08, up 793.22% from the previous year[5] - The basic earnings per share for the quarter was ¥0.1542, representing a 444.88% increase compared to the same period last year[6] - The company's net profit for the first nine months of 2021 was CNY 263,617,375.41, an increase from CNY 200,919,672.32 in the same period of the previous year[26] - Net profit for the first three quarters of 2021 was ¥73,577,703.09, significantly higher than ¥16,716,553.65 in the same period of 2020, representing a 340.5% increase[28] - Basic and diluted earnings per share for the first three quarters of 2021 were both ¥0.2705, compared to ¥0.0615 in the previous year[28] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥1,959,005,914.53, a slight increase of 2.52% from the end of the previous year[6] - As of September 30, 2021, the total assets of Fujian Fengzhu Textile Technology Co., Ltd. amounted to CNY 1,959,005,914.53, an increase from CNY 1,910,833,283.78 at the end of 2020[23] - The company's current assets reached CNY 1,016,869,522.73, up from CNY 935,531,866.50 in the previous year, reflecting a growth of approximately 8.7%[24] - The total liabilities decreased slightly to CNY 1,129,373,295.05 from CNY 1,143,898,367.39, indicating a reduction of approximately 1.3%[25] - The long-term borrowings decreased to CNY 254,650,000.00 from CNY 344,000,000.00, a reduction of about 26%[25] - The total equity attributable to shareholders increased to CNY 829,632,619.48 from CNY 766,934,916.39, representing a growth of approximately 8.2%[26] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥69,729,215.04, down 40.61% compared to the same period last year[5] - Cash flow from operating activities for the first three quarters of 2021 was ¥69,729,215.04, down from ¥117,400,514.94 in the same period of 2020[31] - Cash inflow from investment activities for the first three quarters of 2021 was ¥144,379,282.52, compared to ¥10,884,009.01 in the previous year[31] - Cash flow from financing activities resulted in a net outflow of ¥205,801,322.67 in the first three quarters of 2021, contrasting with a net inflow of ¥1,462,734.95 in the same period of 2020[32] - The ending balance of cash and cash equivalents as of the end of September 2021 was ¥123,609,511.58, down from ¥215,037,836.81 at the end of September 2020[32] - The company's cash and cash equivalents were CNY 255,274,395.07, down from CNY 333,100,075.74, reflecting a decrease of approximately 23.3%[24] Investments and Projects - The company attributed the increase in operating revenue to higher sales of exported self-produced light fabrics[9] - The company received government subsidies amounting to ¥3,282,300.00 during the quarter, contributing to the net profit increase[8] - The new factory project in An Dong is expected to have an annual production capacity of 100,000 tons of knitted printed fabric, 7,500 tons of knitted printing fabric, and 3,000 tons of yarn, with a total investment of approximately RMB 850 million[14] - The first phase of the An Dong factory's production workshop and equipment installation has entered the trial production stage, with full production expected by the end of the year[15] - The company has completed land reserve for the Henan project, acquiring a total of 424.08 acres of land for the establishment of a wholly-owned subsidiary in Anyang[18] - The investment for the Henan Fengzhu (Anyang) 30,000 tons dyeing project is estimated to be around RMB 300 million, with the main structure of the dyeing workshop already completed[18] - The company has successfully completed the transfer of equity in the joint venture and the transfer of land use rights, with all related payments received by August 10, 2021[19] Financial Management - The company has engaged in various financial management activities, including structured deposit products with amounts ranging from RMB 4 million to RMB 20 million, achieving annualized returns between 2.61% and 3.65%[21] - The total amount of structured deposits managed by the company is approximately RMB 92.2 million, with a total income of RMB 2,200,000 from these investments[21] - The company reported a total of CNY 252,300,000 in structured deposit products, indicating a significant investment strategy[24] Operational Strategy - The company is focused on upgrading its product structure and enhancing product quality and competitiveness through technological transformation[14] - The company has authorized management to make adjustments to project investments based on changes in laws and regulations during the implementation of the An Dong project[14] - The company aims to transform its 30-year-old factory into a modern, intelligent, and environmentally friendly dyeing and finishing enterprise[14] Inventory and Receivables - Inventory increased significantly to CNY 340,728,155.01, compared to CNY 211,004,233.65 in the previous year, marking a rise of about 61.4%[24] - The accounts receivable rose to CNY 226,916,568.11, compared to CNY 188,352,851.92 at the end of 2020, showing an increase of about 20.4%[23] Investment Income - The company reported a significant increase in investment income, reaching ¥2,925,416.27 in the first three quarters of 2021, compared to ¥69,017.80 in the previous year[27] - The company experienced a credit impairment loss of -¥3,913,133.63 in the first three quarters of 2021, an improvement from -¥8,208,410.63 in the same period of 2020[28]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥596,624,132.82, representing a 42.28% increase compared to ¥419,326,357.09 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2021 reached ¥31,645,725.97, a significant increase of 250.05% from ¥9,040,321.08 in the previous year[17]. - The basic earnings per share for the first half of 2021 was ¥0.1163, up 250.30% from ¥0.0332 in the same period last year[18]. - Operating profit reached RMB 37.01 million, a significant increase of 165.50% compared to RMB 13.94 million in the same period last year[46]. - The company reported a net profit of 1,134.21 million CNY from its subsidiary Jiangxi Fengzhu Cotton Spinning Co., Ltd., with total assets of 25,547.20 million CNY and operating income of 12,153.51 million CNY[66]. Assets and Liabilities - The company's total assets increased by 7.54% to ¥2,054,895,644.13 compared to ¥1,910,833,283.78 at the end of the previous year[17]. - The company's total assets increased to CNY 1,888,918,647.17 in the first half of 2021, compared to CNY 1,737,198,380.60 at the end of 2020, representing an 8.7% growth[127]. - Total liabilities increased to CNY 1,267,195,001.77 from CNY 1,143,898,367.39, reflecting a rise of about 10.8%[122]. - Short-term borrowings rose to CNY 304,500,000.00 from CNY 240,909,012.22, indicating an increase of about 26.4%[121]. Cash Flow - The net cash flow from operating activities decreased by 57.49% to ¥52,679,337.57 from ¥123,915,540.79 in the previous year[17]. - The cash inflow from operating activities totaled CNY 702,472,996.84, a 32.5% increase from CNY 529,867,096.43 in the previous year[135]. - The cash and cash equivalents at the end of the period decreased to CNY 133,307,666.60 from CNY 239,544,212.48 at the end of the previous year[136]. Inventory and Production - Inventory levels rose by 67.06% to ¥352,512,368.83 due to increased stock for self-produced products[20]. - The company reported a 67.06% increase in inventory, amounting to RMB 352.51 million, due to increased production[50]. Market and Industry Dynamics - The company operates in the textile industry, focusing on the production and processing of knitted and woven fabrics, dyeing, spinning, and printing, with a significant portion (70-80%) of products exported indirectly as clothing to markets including Hong Kong, Taiwan, the Middle East, Europe, and Japan[24]. - The textile industry has shown resilience during the COVID-19 pandemic, effectively ensuring public health and safety while facing challenges such as global supply chain disruptions and fluctuating demand[29]. - The company faces challenges from geopolitical tensions and the impact of the pandemic on global supply and demand, necessitating strategic adjustments[31]. Technological Innovation and Sustainability - The company is committed to technological innovation and green manufacturing, responding to the evolving landscape of the textile industry and the need for sustainable practices[33]. - The company is advancing its technological upgrades by introducing advanced production equipment and promoting intelligent technology to enhance product quality and competitiveness[34]. - The company is committed to green and environmentally friendly practices, ensuring compliance with national environmental policies and achieving wastewater treatment reuse rates of 50%[37]. - The company has established a wastewater treatment facility with a capacity of 25,000 tons/day, ensuring compliance with environmental discharge standards[76]. Research and Development - The company completed the application for 7 invention patents and received authorization for 5 patents in the first half of 2021[44]. - The company has initiated a CNY 300,000,000 investment project in Henan Anyang, with the dyeing workshop structure nearing completion[60]. Shareholder and Financial Commitments - The company has not proposed any profit distribution or capital reserve transfer plans for the first half of 2021[74]. - The company plans to ensure that cash dividends account for no less than 40% of profit distribution in the next three years, considering significant capital expenditures during the transition period of the textile industry[94]. - The total amount of guarantees provided by the company to subsidiaries during the reporting period was RMB 216.11 million, with a balance of RMB 210.87 million at the end of the period[105]. Environmental Impact - The total environmental expenditure for the first half of 2021 was RMB 429.35 million, an increase of 7.71% compared to the same period in 2020[80]. - The average COD emission concentration for the reporting period was 29.61 mg/L, significantly better than the standard value of COD ≤ 200 mg/L[77]. - The company has been recognized as a "National Clean Production Demonstration Enterprise" and has received multiple environmental awards[87]. Corporate Governance - The company's financial statements were approved by the board of directors on August 28, 2021, ensuring compliance with regulatory requirements[151]. - The company has not reported any significant changes in accounting policies or prior period error corrections during the first half of 2021[145].

Financial Performance - Operating revenue for the year-to-date reached CNY 229,942,644.60, a 19.07% increase year-on-year [5] - Net profit attributable to shareholders increased by 212.90% to CNY 4,879,768.76 compared to the same period last year [5] - The company reported a 385.77% increase in net profit attributable to shareholders after deducting non-recurring gains and losses, totaling CNY 6,794,526.98 [5] - The company has not reported any significant changes in net profit expectations compared to the previous year, indicating stable financial performance [23] - The company reported a net profit of CNY 204,657,094.74, slightly up from CNY 200,919,672.32, indicating a growth of about 2.3% in retained earnings [28] - Net profit for Q1 2021 was CNY 4,879,768.76, up 212.5% from CNY 1,559,505.16 in Q1 2020 [36] - Earnings per share for Q1 2021 were CNY 0.0179, compared to CNY 0.0057 in Q1 2020, indicating significant growth [36] - The net profit for the first quarter of 2021 was CNY 4,473,736.55, an increase from CNY 2,894,749.54 in the same period of 2020, representing a growth of approximately 54.6% [38] Assets and Liabilities - Total assets increased by 3.63% to CNY 1,980,270,127.75 compared to the end of the previous year [5] - Current assets totaled CNY 978,012,339.18, up from CNY 935,531,866.50 at the end of 2020, indicating an increase of about 4.6% [26] - Non-current assets reached CNY 1,002,257,788.57, compared to CNY 975,301,417.28 at the end of 2020, marking an increase of about 2.5% [27] - Total liabilities were CNY 1,208,463,238.21, up from CNY 1,143,898,367.39, reflecting an increase of approximately 5.6% [28] - The company's total liabilities increased to CNY 1,120,897,449.83 in Q1 2021 from CNY 1,048,622,181.45 in Q1 2020 [35] - Short-term borrowings rose to CNY 253,285,965.00 from CNY 240,909,012.22, an increase of about 5.7% [27] - Long-term borrowings rose to CNY 362,500,000.00 in Q1 2021, up from CNY 344,000,000.00 in Q1 2020 [35] Cash Flow - The net cash flow from operating activities showed a significant decline of 12,914.16%, resulting in a net outflow of CNY 41,847,139.08 [5] - Cash inflow from operating activities was CNY 320,353,910.59, significantly higher than CNY 171,117,737.87 in Q1 2020, marking an increase of approximately 87.2% [41] - The net cash flow from operating activities was negative at CNY -41,847,139.08, contrasting with a positive CNY 326,569.40 in the previous year [41] - Cash outflow from investing activities was CNY 27,918,287.84, a decrease from CNY 111,281,591.63 in Q1 2020, showing a reduction of approximately 75.1% [41] - The net cash flow from investing activities was -19,980,070.61 CNY, compared to -97,846,165.03 CNY in the previous year [44] - The total cash inflow from financing activities was 29,500,000.00 CNY, an increase from 21,640,000.00 CNY year-over-year [44] - The net cash flow from financing activities was 16,213,188.11 CNY, slightly down from 17,998,269.32 CNY in the previous year [44] - The cash and cash equivalents at the end of the period were 59,222,342.58 CNY, down from 112,863,544.21 CNY year-over-year [44] Inventory and Contract Liabilities - Inventory increased by 50.76% to CNY 31,810.93 due to increased sales leading to higher raw material purchases [13] - Contract liabilities surged by 420.55% to CNY 2,102.26, reflecting an increase in customer prepayments due to higher sales [13] Investments and Projects - The company plans to relocate its new factory in Fujian Jinjiang Economic Development Zone with a total production capacity of 100,000 tons of knitted dyeing fabric, 7,500 tons of knitted printed fabric, and 3,000 tons of yarn, with a total investment of approximately 850 million RMB [15] - The company has approved an investment of around 300 million RMB for the "Henan Fengzhu (Anyang) 30,000 tons dyeing project," with construction progressing steadily and necessary permits obtained [19] - The company has established a joint venture with CITIC Environment to invest in the Anyang North District dyeing demonstration park, adapting to new environmental regulations [18] - The company is focusing on upgrading its product structure and enhancing competitiveness to meet government urban construction needs [15] - The company is actively coordinating construction work and equipment installation for the new factory, despite uncertainties due to the ongoing global pandemic [16] Financial Management - The total amount of entrusted financial management for the first quarter is 192.2 million RMB, with a total income of approximately 2.04 million RMB from these investments [21] - The company experienced a significant reduction in financial expenses, decreasing to CNY 2,269,947.87 in Q1 2021 from CNY 6,156,410.34 in Q1 2020 [35] - The company distributed dividends and interest payments totaling 4,370,634.03 CNY during the period [44] - The impact of exchange rate changes on cash and cash equivalents was -3,736,913.09 CNY [44]

Financial Performance - The company achieved a total operating revenue of ¥1,049,746,676.39 in 2020, representing a 2.56% increase compared to ¥1,023,581,621.88 in 2019[21]. - The net profit attributable to shareholders of the listed company was ¥29,627,686.74, marking a 14.16% increase from ¥25,953,606.96 in the previous year[21]. - The net cash flow from operating activities significantly increased to ¥129,428,197.45, up 804.85% from ¥14,303,808.92 in 2019[21]. - The total assets of the company reached ¥1,910,833,283.78 at the end of 2020, reflecting a 13.18% increase from ¥1,688,374,429.65 in 2019[21]. - The company's net assets attributable to shareholders increased to ¥766,934,916.39, a 3.23% rise from ¥742,957,347.85 in 2019[21]. - Basic earnings per share for 2020 increased by 14.15% to CNY 0.1089 compared to CNY 0.0954 in 2019[22]. - The net profit attributable to shareholders for Q4 2020 was CNY 12,911,133.09, showing a significant increase from CNY 7,676,232.57 in Q3 2020[23]. - The weighted average return on equity rose to 3.93% in 2020, up from 3.57% in 2019, an increase of 0.3558 percentage points[22]. - The company achieved a consolidated revenue of RMB 1,049.75 million in 2020, a 2.56% increase from RMB 1,023.58 million in the previous year[48]. - The net profit for the year was RMB 296.28 million, representing a 14.16% increase compared to the previous year[48]. Dividend Policy - The proposed cash dividend distribution is ¥0.4 per 10 shares, totaling ¥10,880,000 (including tax) based on a total share capital of 272,000,000 shares[6]. - The cash dividend payout ratio for the year is 36.72%, indicating a strong return to shareholders relative to the net profit[6]. - The company plans to retain the remaining undistributed profits for future distribution, amounting to ¥111,680,955.08 at year-end[6]. - The company is committed to maintaining a stable cash dividend policy, distributing at least 10% of the available profit if the net profit is positive[129]. - The company plans to distribute cash dividends not less than 40% of the current profit distribution in the next three years[132]. - The company aims to ensure that the cash dividends distributed in each accounting year are at least 10% of the distributable profits[132]. - The company will prioritize cash dividends during profit distribution, with a minimum of 80% if in a mature stage without major capital expenditures[132]. Operational Efficiency - The company maintained effective control over selling and administrative expenses, contributing to the increase in net profit[48]. - The company has developed new products, including eco-functional fiber fabrics, which cater to health and wellness trends[43]. - The company maintained a high production-to-sales ratio of over 90%, indicating effective inventory management[54]. - The company achieved a significant improvement in dyeing quality and brand influence through product research and process innovation, leading to energy savings[35]. - The company upgraded its new factory with advanced intelligent and green high-end equipment systems, including a smart three-dimensional warehouse logistics system that can save nearly 50% of labor and significantly improve logistics efficiency[38]. Market Strategy - The company’s product exports account for 70-80% of its sales, primarily targeting markets in Hong Kong, the Middle East, Europe, and Japan[28]. - The company plans to enhance brand building and marketing management to strengthen its market position[101]. - The company aims to improve its technological capabilities by upgrading equipment and adopting advanced production technologies[101]. - The company is focused on expanding its market presence by participating in various textile exhibitions and enhancing brand awareness[47]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[190]. Research and Development - The company completed 14 invention patent applications in 2020 and received authorization for 9 patents from the National Intellectual Property Administration[42]. - The company led the drafting of 1 national standard and participated in the drafting of 2 national standards and 2 industry standards in 2020[42]. - Research and development investments increased by 18%, focusing on innovative fabric technologies[190]. - The company is committed to investing in technology innovation and maintaining a continuous increase in technical input to improve product technology content[120]. Environmental Responsibility - The company is committed to implementing green manufacturing practices to meet stricter environmental regulations[101]. - The wastewater treatment and reuse system achieves a wastewater reuse rate of 50%, exceeding domestic discharge standards, contributing to green production[38]. - The company reported no exceedance of pollution discharge standards during the reporting period[165]. - The average COD discharge concentration was 35.62 mg/L, significantly below the standard limit of 200 mg/L[165]. - The total annual expenditure on environmental protection measures decreased from CNY 1,204.59 million in 2019 to CNY 941.15 million in 2020[167]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no significant omissions or misleading statements[7]. - The company is focused on maintaining strong governance and transparency in its operations, as evidenced by detailed disclosures in the report[189]. - The company has established a common interest foundation among shareholders to ensure equal rights, particularly for minority shareholders[200]. - The company has a diverse board with a mix of genders, including 3 female directors out of 11 total[188]. Challenges and Risks - The company faces uncertainties in the international market due to the ongoing COVID-19 pandemic and geopolitical tensions[122]. - The company anticipates facing risks related to raw material cost fluctuations and environmental regulatory pressures in 2021[124]. - The company will continue to monitor the volatility of the RMB exchange rate and utilize financial tools to mitigate its impact on profits[125]. Social Responsibility - The company is committed to fulfilling its social responsibility by participating in national poverty alleviation efforts and improving the living standards of impoverished individuals[159]. - The total investment for targeted poverty alleviation amounted to CNY 2,569,235[161]. - Investment in vocational skills training for employment poverty alleviation reached CNY 737,162.5, with 317 participants[161]. Legal Matters - The company is involved in a lawsuit with Foshan Basuni Machinery Co., Ltd. regarding a sales contract dispute, with a claim amount of CNY 207.7 million[143]. - Another lawsuit involves a dispute with Ping An International Financial Leasing (Tianjin) Co., Ltd. and Basuni Co., with a claim amount of CNY 258.4 million[143]. - The company has not reported any major litigation or arbitration matters other than those mentioned[143].

Financial Performance - Net profit attributable to shareholders decreased by 46.97% to CNY 16,716,553.65 year-on-year[6] - Operating income decreased by 11.19% to CNY 694,554,871.25 compared to the same period last year[6] - Operating profit decreased by 44.79% to CNY 2,275.86 million compared to CNY 4,121.99 million in the same period last year, primarily due to the impact of the pandemic on the Jiangxi subsidiary's operating profit[10] - Total profit fell by 46.70% to CNY 2,126.04 million from CNY 3,989.14 million year-on-year, mainly driven by the decrease in operating profit[10] - Basic earnings per share decreased by 46.94% to CNY 0.0615[6] - Net profit for Q3 2020 was ¥7,676,232.57, a decrease of 44.6% from ¥13,839,353.59 in Q3 2019[27] - Net profit for the first three quarters of 2020 was ¥16,716,553.65, down 47.9% from ¥31,523,312.38 in the same period of 2019[27] - The company reported a total of ¥4,921,862.76 in other income for Q3 2020, compared to ¥997,873.38 in Q3 2019[26] Assets and Liabilities - Total assets increased by 12.71% to CNY 1,903,000,729.96 compared to the end of the previous year[6] - The total liabilities of the company were CNY 1,083,302,664.42, compared to CNY 860,092,390.00 in the previous year, marking an increase of approximately 25.9%[20] - Total liabilities increased to CNY 1,151,486,059.23, up from CNY 945,417,081.80, representing a growth of approximately 22% year-over-year[21] - Current assets rose to CNY 777,092,947.83, compared to CNY 584,689,307.09, marking an increase of about 33%[23] - The company's current assets totaled CNY 972,877,573.70, up from CNY 793,899,936.87 in the previous year, indicating a growth of approximately 22.5%[19] - Total equity reached CNY 751,514,670.73, up from CNY 742,957,347.85, reflecting a modest increase of about 1%[21] Cash Flow - Cash flow from operating activities increased by 92.73% to CNY 117,400,514.94 year-to-date[6] - Net cash flow from operating activities increased by 92.73% to CNY 11,740.05 million, mainly due to reduced cash payments for raw material purchases and increased export tax rebates[10] - Cash flow from operating activities for the first three quarters of 2020 was CNY 117.40 million, an increase of 92.5% compared to CNY 60.91 million in 2019[30] - Cash and cash equivalents at the end of Q3 2020 were CNY 215.04 million, compared to CNY 118.12 million at the end of Q3 2019, reflecting a year-on-year increase of 82.1%[31] - The ending balance of cash and cash equivalents reached 150,197,640.54 CNY, up from 89,578,519.38 CNY in the previous period[33] Investments and Projects - The new Antong factory project has a total production capacity of 100,000 tons of knitted printing and dyeing fabric, with a total investment of approximately CNY 850 million[11] - The company has completed land reserve for the Henan Anyang project, totaling 424.08 acres, and is progressing with the construction of a 30,000-ton dyeing project with an estimated investment of CNY 300 million[14] - Investment cash flow net decreased significantly to CNY -13,314.28 million from CNY -17,184.85 million year-on-year, primarily due to increased expenditures for the construction of the new Antong factory[10] - The company reported a net cash outflow from investing activities of CNY 133.14 million for the first three quarters of 2020, an improvement from a net outflow of CNY 171.85 million in 2019[31] Research and Development - The company is actively engaged in research and development of new products and technologies, although specific details were not provided in the report[18] - Research and development expenses for Q3 2020 were ¥5,494,312.65, an increase of 20.5% compared to ¥4,559,231.84 in Q3 2019[26] - Research and development expenses increased to CNY 8.77 million for the first three quarters of 2020, up 36.4% from CNY 6.43 million in 2019[29] - The company plans to continue focusing on research and development to enhance product offerings and market competitiveness[28] Shareholder Information - The total number of shareholders reached 20,049, with the top ten shareholders holding significant stakes[8]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 419,326,357.09, a decrease of 18.10% compared to CNY 511,997,205.44 in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2020 was CNY 9,040,321.08, down 48.88% from CNY 17,683,958.79 year-on-year[16]. - The basic earnings per share for the first half of 2020 were CNY 0.0332, a decrease of 48.92% from CNY 0.0650 in the same period last year[17]. - The company reported a weighted average return on equity of 1.2094%, down 1.2199 percentage points from 2.4293% year-on-year[17]. - Operating profit was RMB 13.94 million, down 41.02% from RMB 23.64 million in the same period last year, mainly due to a significant drop in profit from the Jiangxi subsidiary[41]. - Net profit decreased by 48.88% to RMB 9.04 million, attributed to the decline in operating profit[41]. - The company reported a total current liability of CNY 579,284,631.11, slightly down from CNY 579,924,593.54, indicating a decrease of about 0.1%[111]. - The total comprehensive income for the first half of 2020 was CNY 12,800,238.57, up from CNY 11,947,177.51 in the previous year, reflecting a growth of about 7.1%[122]. Cash Flow and Assets - The net cash flow from operating activities increased by 19.51% to CNY 123,915,540.79 compared to CNY 103,687,409.36 in the previous year[16]. - The total assets at the end of the reporting period were CNY 1,699,155,264.59, reflecting a 0.64% increase from CNY 1,688,374,429.65 at the end of the previous year[16]. - Cash and cash equivalents decreased to CNY 285,565,240.31 from CNY 301,866,229.60, a decline of about 5.3%[110]. - The company's total assets increased by 0.64% to RMB 1,699.16 million, mainly due to investments in the Andong Engineering project[41]. - The company has increased its cash reserves, with cash and cash equivalents at RMB 28.56 million, accounting for 16.81% of total assets[47]. Investments and Projects - The company plans to invest in a modern dyeing factory in Andong, aiming to become a benchmark in the dyeing industry[29]. - The total investment for the new factory project in Fujian Jinjiang Economic Development Zone is approximately RMB 850 million, with an annual production capacity of 100,000 tons of knitted printing fabric and 7,500 tons of knitted printed fabric[58]. - The construction of the new factory is currently in the interior decoration and equipment installation phase, with completion expected by September 30, 2020, subject to uncertainties due to the COVID-19 pandemic[59]. - The company has established a wholly-owned subsidiary in Anyang, with land use rights secured for the project, and is progressing with the investment in the dyeing demonstration park[61]. Research and Development - Research and development expenses rose by 22.58% to RMB 10.11 million, reflecting increased investment in R&D materials[44]. - The company has completed 6 invention patent applications in 2020, with 3 patents granted and 2 utility model patents authorized[37]. - The company is focusing on high-end, functional, and environmentally friendly fabrics to enhance product suitability and profitability[24]. - The development of "Robu hemp antibacterial knitted fabric" is in progress, utilizing advanced technology to enhance product quality and reduce resource consumption[32]. Environmental Compliance - The company is committed to implementing green manufacturing practices and adhering to national environmental policies[29]. - The average COD discharge concentration for the first half of 2020 was 34.39 mg/L, significantly below the standard limit of 200 mg/L[90]. - The company’s wastewater treatment facility operates at a capacity of 25,000 tons per day, ensuring compliance with environmental standards[91]. - The company has not reported any exceedances in pollutant emissions during the reporting period[89]. Shareholder Relations and Dividends - The company has no plans for profit distribution or capital reserve conversion for the first half of 2020[69]. - The company plans to maintain a cash dividend ratio of no less than 40% in future profit distributions over the next three years[71]. - The company will prioritize cash dividends in profit distribution, ensuring that at least 10% of the distributable profits are allocated as dividends if the net profit is positive[70]. - The company will provide various channels for communication with shareholders, especially minority shareholders, regarding dividend proposals[71]. Market and Industry Challenges - The textile industry is facing challenges such as trade protectionism and the impact of the COVID-19 pandemic, affecting global demand[26]. - The company anticipates facing uncertainties related to domestic and international cotton price fluctuations and raw material cost volatility in the second half of 2020[64]. - The company aims to enhance market development and innovate marketing models to improve competitiveness[65]. Financial Management and Accounting - The financial statements prepared by the company comply with the requirements of the accounting standards, reflecting the financial position and operating results accurately[143]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[149]. - The company assesses expected credit losses for financial assets based on both individual and collective evaluations, considering significant credit risk differences[173]. - The company applies a perpetual inventory system for inventory management, using a weighted average method for inventory cost calculation[184].