Financial Performance - In 2022, the company reported a total revenue of CNY 5,109,342 thousand, a decrease of 6.6% compared to CNY 5,470,199 thousand in 2021[23]. - The net profit attributable to shareholders was CNY -323,332 thousand, an improvement from CNY -465,092 thousand in the previous year[23]. - The company's total assets decreased by 18.7% to CNY 9,860,249 thousand at the end of 2022, down from CNY 12,127,896 thousand in 2021[23]. - The net cash flow from operating activities was CNY 73,590 thousand, a decline of 14.3% from CNY 85,912 thousand in 2021[23]. - The company's net assets attributable to shareholders decreased by 4.7% to CNY 3,138,963 thousand at the end of 2022[23]. - The company reported a weighted average return on equity of -10.05% for 2022, an improvement from -12.87% in 2021[24]. - The net loss attributable to shareholders was 3.2 billion RMB, a reduction of 30.5% year-on-year, primarily due to a provision for bad debts of 650 million RMB[32]. - The company reported a net profit loss of approximately -4.65 billion yuan for 2021, with a net profit loss attributable to shareholders ranging from -2.8 billion to -1.4 billion yuan in the initial forecast[124]. Revenue Breakdown - The company's total revenue for 2022 was 5.11 billion RMB, a decrease of 6.6% compared to 2021, but a 15% increase when excluding revenue from sold businesses[32]. - Revenue from the spinning machinery division was 4.17 billion RMB, a slight decrease of 0.7%, while the technology division saw a significant decline of 27.2% to 940 million RMB[34]. - Revenue from the Indian market grew by 10.3% to 678.7 million RMB, while revenue from China fell by 32.9% to 1.21 billion RMB[33]. - The overseas business revenue proportion increased from 67.1% in 2021 to 76.3% in 2022, reflecting a strategic focus on global market expansion[32]. Operational Efficiency - The gross margin improved in the spinning division, increasing by 5 percentage points compared to the previous year[34]. - The gross margin for the spinning machinery segment increased by 3.8 percentage points to 15.7% despite a 6.6% decrease in revenue[50]. - The production of ring spinning machines increased by 36.2%, while sales rose by 28.2% compared to the previous year[51]. - The company completed the delivery of three products, optimizing its operational structure and reducing potential risks[32]. Research and Development - The company has over 300 R&D personnel and has registered more than 1,000 patents, showcasing its commitment to innovation in the textile machinery sector[44]. - Research and development expenses amounted to 342.83 million RMB, a decrease of 5.3% from the previous year, representing 5.1% of operating revenue[56]. - The company plans to continue increasing R&D investment to enhance core competitiveness and expand into new market areas[58]. - The company aims to maintain and expand its technological advantages through ongoing R&D efforts[58]. Strategic Initiatives - The company plans to expand its industrial automation business through internal development and cross-application collaborations and acquisitions[40]. - The company aims to enhance its digital and intelligent manufacturing capabilities by leveraging new technologies such as 5G, AI, and big data[41]. - The company will focus on green products and sustainable practices, actively participating in industry standards and certifications to enhance its competitive edge[79]. - The company aims to specialize in natural textile machinery, enhancing performance and reliability through continuous innovation and product optimization[78]. Governance and Compliance - The company received a qualified audit opinion from its auditor, which has been detailed in the report[5]. - The company has established various specialized committees to support effective governance and risk management[88]. - The company has committed to enhancing its internal control system and compliance training to prevent future regulatory violations[109]. - The company will ensure that all significant information is disclosed accurately and in a timely manner[109]. Market Outlook - The company provided an optimistic outlook for Q4 2023, projecting revenue growth of 10% to 12%[100]. - The spinning machinery industry is expected to focus on digitalization, automation, and intelligent upgrades in 2023, enhancing production efficiency and reducing costs[74]. - Economic risks may impact consumer purchasing power, affecting textile product demand[83]. - The company operates in 13 countries, facing overseas business operational risks due to cultural and political differences[84]. Shareholder Relations - The company emphasizes investor relations, ensuring transparent communication with shareholders[89]. - The profit distribution plan is subject to approval at the shareholders' meeting, requiring a majority vote[152]. - The company has maintained effective internal control over financial reporting, with no significant deficiencies identified during the reporting period[158]. - The company has not reported any significant changes in competition or business operations from its controlling shareholders[92].

2023 年第一季度报告 证券代码：600545 证券简称：卓郎智能 卓郎智能技术股份有限公司 2023 年第一季度报告 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法律责任。 重要内容提示 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。 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 单位：千元 币种：人民币 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 1,199,987 6.1 归属于上市公司股东的净利润 -48,709 -110.7 归属于上市公司股东的扣除非经常性损益的净利润 -48,308 不适用 经营活动产生的现金流量净额 -183,864 不适用 基本每股收益（元/股） -0.0272 -110.7 稀释每股收益（元/股） -0.0272 -110.7 ...

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 2,314.58 million, a decrease of 7.3% compared to the same period last year[17]. - The net profit attributable to shareholders was CNY 319.23 million, a significant improvement from a loss of CNY 52.31 million in the previous year[17]. - The net cash flow from operating activities was CNY -141.51 million, a decline of 135.1% year-on-year[17]. - The company's total assets decreased by 11.7% to CNY 10,706.38 million compared to the end of the previous year[17]. - The net assets attributable to shareholders increased by 9.0% to CNY 3,591.34 million[17]. - The basic earnings per share for the first half of 2022 was CNY 0.1786, compared to a loss of CNY 0.0293 per share in the same period last year[18]. - The company achieved operating revenue of RMB 2.31 billion in the first half of 2022, a decrease of 7.3% year-on-year, but a 24.9% increase when excluding the revenue from sold businesses[32]. - Net profit attributable to shareholders was RMB 320 million, compared to a loss of RMB 52.3 million in the same period last year[32]. - The spinning division generated revenue of RMB 1.88 billion, a year-on-year increase of 2.5%, while the technology division's revenue decreased by 33.1% to RMB 443 million[35]. Market Challenges - The company faced challenges due to supply chain disruptions and rising raw material prices, impacting delivery volumes[19]. - Revenue from the Turkish market increased by 44.4% year-on-year, while revenue from China, India, the Americas, and Europe decreased by 33.8%, 11.2%, 24.4%, and 17.9% respectively[34]. - Operating cash flow turned negative at RMB -141.5 million, a decline of 135.1% year-on-year, primarily due to supply chain disruptions and increased accounts receivable[40]. - The overall market demand for textile machinery is gradually recovering, with the company focusing on optimizing product offerings and expanding market reach[39]. Business Strategy and Operations - The company operates in the textile machinery sector, providing comprehensive solutions from cotton opening to spinning, with well-known brands like Saurer, Schlafhorst, and Zinser[24]. - The spinning division focuses on enhancing automation and digitalization, offering solutions for various spinning processes, with star products including Autocard and Autocoro machines[25]. - The technology division aims to expand into industrial automation, leveraging expertise in precision sensors and magnetic levitation motors, with plans for mergers and acquisitions to strengthen this segment[25]. - The data and services division utilizes technologies like 5G and AI to enhance digital management in textile factories, creating three optimization loops for machine operation, production management, and enterprise collaboration[26]. - The company has over 300 R&D personnel and has registered more than 1,000 patents, emphasizing continuous innovation in textile machinery[29]. - The company has a global presence with production bases in 13 countries, serving customers in over 130 countries, and is strategically positioned to benefit from the "Belt and Road" initiative[30]. - The company employs a customized production model to meet individual equipment demands, ensuring high-quality assembly and integration processes[28]. Financial Management and Governance - The company has committed to ensuring the independence of its personnel, assets, and operations post-restructuring, with specific measures to avoid conflicts of interest and ensure financial independence[68]. - The controlling shareholder has pledged to minimize related party transactions and ensure that any unavoidable transactions are conducted on fair and market-based terms[69]. - The company has established a complete and independent asset structure, ensuring that all assets are under its control and not misappropriated by related parties[68]. - The company has a dedicated financial accounting department and independent financial management system to ensure financial autonomy[68]. - The company reported a total guarantee amount of RMB 2,670,761,084.03, which accounts for 74.37% of the company's net assets[89]. - The company provided guarantees totaling RMB 806,000,000.00 to its subsidiaries during the reporting period[89]. Compliance and Regulatory Issues - The company received disciplinary action from the Shanghai Stock Exchange for not following proper procedures in the asset sale, which was executed before obtaining shareholder approval[80]. - The company plans to improve its internal control systems and compliance training to prevent future violations[81]. - The company has committed to adhering to the Shanghai Stock Exchange's regulations and improving operational compliance[81]. - The company aims to strengthen its governance and risk management practices following the regulatory scrutiny[82]. Environmental Responsibility - The company emphasizes environmental responsibility, adhering to ISO14001:2004 standards and focusing on energy-efficient product development[63]. - The company has implemented measures to reduce carbon emissions, including the introduction of new equipment and technology, optimizing process design, and promoting clean production[65]. - The company has emphasized compliance with environmental protection laws and standards as part of its operational strategy[65]. Risks and Uncertainties - The company faces economic risks due to potential demand fluctuations from economic slowdowns, impacting consumer purchasing power in the textile sector[54]. - There is a risk of losing competitive advantage if the company fails to maintain its leading research and design capabilities in the rapidly evolving intelligent textile equipment industry[54]. - The company operates in 13 countries, exposing it to overseas business risks, including management challenges due to cultural differences and political instability[55]. - Exchange rate fluctuations pose a risk to the company's future operations, potentially affecting profitability due to currency conversion uncertainties[55]. - The ongoing COVID-19 pandemic creates uncertainty in global economic conditions, which may lead to delayed market demand in the textile machinery industry[55]. Shareholder Information - The company had a total of 67,005 common shareholders by the end of the reporting period[94]. - The largest shareholder, Jiangsu Jinsheng Industrial Co., Ltd., holds 46.94% of the shares, totaling 889,759,677 shares[95]. - The company did not report any significant changes in its share capital structure during the reporting period[92]. - There were no major related party transactions disclosed during the reporting period[86]. - The company maintained a good integrity status with no significant debts overdue[84]. Asset Management - The company completed the sale of assets to Rieter Holding AG for €300 million (approximately RMB 2.34 billion), which represents 59.47% of the company's audited net assets for 2020[77]. - The proceeds from the asset sale will be used to repay approximately €30 million in bank loans and to enhance working capital for normal operations[73]. - The company plans to sell its embroidery business assets for CHF 998,000 (approximately RMB 6.83 million) to enhance overall operating profit[38]. - The company completed a significant asset restructuring, expanding its business scope to include the production, R&D, and sales of intelligent textile equipment, robots, and automation equipment[129].

Financial Performance - In 2021, the company achieved a total revenue of 5,470,199 thousand RMB, representing a 12.8% increase compared to 4,849,549 thousand RMB in 2020[20]. - The net profit attributable to shareholders was -465,092 thousand RMB, an improvement from -561,458 thousand RMB in the previous year[20]. - The net cash flow from operating activities was 85,912 thousand RMB, a significant recovery from -1,092,621 thousand RMB in 2020[20]. - The total assets decreased by 5.6% to 12,127,896 thousand RMB at the end of 2021, down from 12,846,342 thousand RMB in 2020[20]. - The company's net assets attributable to shareholders decreased by 16.3% to 3,294,859 thousand RMB compared to 3,934,982 thousand RMB at the end of 2020[20]. - The weighted average return on net assets was -12.87% in 2021, compared to -12.49% in 2020[21]. - The basic earnings per share for 2021 was -0.2601 RMB, an improvement from -0.3043 RMB in 2020[21]. - The gross margin decreased due to a significant rise in raw material costs and logistics expenses, despite revenue growth[51]. - The company reported a net loss of 548.082 million yuan for the fiscal year 2021, leading to no cash dividend distribution[136]. Operational Highlights - The company achieved operating revenue of 5.47 billion RMB, an increase of 12.8% year-on-year[29]. - The spinning division generated operating revenue of 4.20 billion RMB, up 8.8% year-on-year, while the technology division's revenue rose by 27.5% to 1.30 billion RMB[31]. - The company received orders that increased by 59% year-on-year, with year-end orders reaching 2.2 times that of the previous year[29]. - The company reported a significant increase in finished goods inventory by 25.11% year-on-year, reflecting a robust production capacity[39]. - The production volume of ring spinning machines decreased by 8.3% year-on-year, while sales volume increased by 7.7%[54]. Market and Strategic Initiatives - Revenue from the Indian market surged by 119.4% year-on-year, while revenue from China declined by 24.3%[30]. - The company aims to enhance its automation, digitalization, and intelligence levels in the spinning equipment sector, focusing on comprehensive solutions from cotton bales to yarn production[41]. - The company plans to expand its industrial automation business through internal development and external collaborations, including mergers and acquisitions[41]. - The company aims to enhance its digital and intelligent capabilities in textile machinery and prioritize the development of industrial automation as part of its strategic focus[83]. - The company plans to establish a closed-loop data service business to create smart factory solutions for the textile industry, aligning with the integration of new information technology and manufacturing[83]. Risk Management and Compliance - The company warns investors about potential risks related to its future development strategies and operational plans[6]. - The company emphasizes the importance of maintaining financial stability and risk resistance for future operations[4]. - The company has established a comprehensive safety production code to mitigate risks associated with complex production processes, although operational errors may still occur[86]. - The company is required to adhere strictly to legal and regulatory requirements to ensure proper operation and information disclosure in the future[113]. - The company has committed to enhancing its internal control systems and compliance training for management and staff to prevent future violations[166]. Governance and Shareholder Relations - The company has a well-defined corporate governance structure, with no mixed operations or interference from controlling shareholders in its organizational setup[94]. - The company has conducted four shareholder meetings during the reporting period, ensuring compliance with legal requirements and protecting the rights of all shareholders[90]. - The board of directors includes independent members, ensuring unbiased oversight of company operations[100]. - The company has not engaged in any related party transactions that could compromise its financial integrity[94]. - The company ensures that independent directors fulfill their responsibilities and that minority shareholders have opportunities to express their opinions[137]. Human Resources and Employee Development - The total number of employees reached 163,400, indicating a stable workforce[102]. - The company has established a comprehensive training system to help employees acquire new skills and knowledge, including on-the-job training and skills training[128]. - The company offers competitive salary and benefits policies, including annual performance bonuses based on employee and company performance[127]. - The number of R&D personnel is 342, accounting for 10.4% of the total workforce, indicating a strong focus on innovation[61]. Future Outlook - The company anticipates challenges in 2022 due to complex international economic conditions but remains confident in its long-term growth potential[81]. - The company plans to continue increasing R&D investment to enhance its competitive edge in the market[62]. - The company aims to achieve a revenue growth target of 10% for the upcoming fiscal year[103]. - The company is committed to maintaining strong financial health while pursuing strategic investments[105].

Financial Performance - The company's revenue for Q1 2022 was CNY 1,131,238 thousand, representing a decrease of 8.9% compared to the same period last year[3]. - Net profit attributable to shareholders was CNY 455,009 thousand, showing a significant increase of 2,537.9% year-on-year[3]. - The company reported a net profit of CNY 952,374 thousand for the first quarter of 2022, compared to CNY 497,365 thousand in the same period of 2021, marking an increase of approximately 91.3%[13]. - Net profit for Q1 2022 reached 569,204 thousand RMB, significantly up from 28,410 thousand RMB in Q1 2021, marking an increase of 1,905.5%[16]. - Operating profit for Q1 2022 was 815,690 thousand RMB, compared to 30,270 thousand RMB in Q1 2021, reflecting a substantial increase[16]. - Total comprehensive income for Q1 2022 was 579,213 thousand RMB, compared to a loss of -84,786 thousand RMB in Q1 2021[17]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -251,003 thousand, a decline of 147.4% compared to the previous year[3]. - Cash flow from operating activities showed a net outflow of -251,003 thousand RMB in Q1 2022, down from a net inflow of 529,124 thousand RMB in Q1 2021[18]. - The company's cash and cash equivalents were CNY 767,684 thousand, compared to CNY 1,079,170 thousand at the end of 2021, reflecting a decrease of approximately 29%[12]. - Cash and cash equivalents at the end of Q1 2022 were 491,756 thousand RMB, compared to 268,236 thousand RMB at the end of Q1 2021, indicating an increase of 83.6%[19]. - Total assets at the end of the reporting period were CNY 11,108,967 thousand, down 8.4% from the end of the previous year[4]. - Current assets totaled CNY 7,142,342 thousand, down from CNY 8,048,711 thousand in the previous period[12]. - Total liabilities decreased to CNY 6,350,147 thousand from CNY 7,938,289 thousand, indicating a reduction of approximately 20%[13]. Shareholder Information - The number of common shareholders at the end of the reporting period was 62,296[8]. - The top shareholder, Jiangsu Jinsheng Industrial Co., Ltd., held 889,759,677 shares, accounting for 46.94% of total shares[8]. Equity and Return Metrics - The company's equity attributable to shareholders increased by 14.1% to CNY 3,757,913 thousand compared to the end of the previous year[4]. - The company's equity attributable to shareholders rose to CNY 3,757,913 thousand from CNY 3,294,859 thousand, an increase of about 14%[13]. - The weighted average return on equity was 12.9%, an increase of 12.46 percentage points[3]. Research and Development - Research and development expenses decreased by 32.6% due to the sale of certain business segments[6]. - Research and development expenses decreased to 63,750 thousand RMB in Q1 2022 from 94,539 thousand RMB in Q1 2021, a reduction of 32.7%[16]. - The company has ongoing research and development efforts, with intangible assets valued at CNY 768,640 thousand as of March 31, 2022[12]. Investment and Market Strategy - The company reported a significant increase in investment income due to the disposal of business units, contributing to the overall profit[6]. - The company reported a significant increase in investment income of 877,071 thousand RMB in Q1 2022, with no corresponding figure in Q1 2021[16]. - The company plans to expand its market presence and continue developing new technologies in the upcoming quarters[6]. Financial Expenses - The company experienced a 602.3% increase in financial expenses, primarily due to exchange rate fluctuations[6].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 1,591,828 thousand, representing an increase of 11.8% compared to the same period last year[3]. - Total revenue for the first three quarters of 2021 reached RMB 4,088,446 thousand, an increase from RMB 3,670,401 thousand in the same period of 2020, representing a growth of approximately 11.4%[23]. - The net profit attributable to shareholders was a loss of CNY 220,011 thousand, with a year-to-date loss of CNY 272,316 thousand[3]. - The net loss for the third quarter of 2021 was RMB 317,424 thousand, worsening from a net loss of RMB 142,796 thousand in the same quarter of 2020[24]. - Basic and diluted earnings per share for the third quarter of 2021 were both RMB -0.1523, compared to RMB -0.0717 in the same quarter of 2020, indicating a worsening in earnings performance[25]. Cash Flow - The net cash flow from operating activities was a negative CNY 654,765 thousand for the quarter, indicating a significant cash outflow[3]. - The net cash flow from operating activities decreased by 43.1% to -251,341 from -441,791 in the same period last year[13]. - In the first three quarters of 2021, the company generated cash inflows from operating activities amounting to RMB 5,284,777 thousand, a significant increase from RMB 3,400,953 thousand in the same period of 2020, representing a growth of approximately 55.4%[26]. - The net cash flow from operating activities for the first three quarters of 2021 was negative RMB 251,341 thousand, an improvement compared to negative RMB 441,791 thousand in the same period of 2020[26]. - The net cash flow from investing activities increased significantly to 2,151,730 from -1,005,077, indicating a substantial inflow due to advance payments for business sales[13]. - Cash inflows from investment activities totaled RMB 2,269,937 thousand in the first three quarters of 2021, compared to 641,330 thousand in the same period of 2020, indicating a substantial increase of approximately 254.5%[27]. - The net cash flow from investment activities for the first three quarters of 2021 was RMB 2,151,730 thousand, a significant recovery from negative RMB 1,005,077 thousand in the same period of 2020[27]. - The company reported a net cash outflow from financing activities of RMB 1,054,699 thousand in the first three quarters of 2021, compared to a smaller outflow of RMB 456,426 thousand in the same period of 2020[27]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 13,979,148 thousand, an increase of 8.8% from the previous year-end[5]. - The company's total assets as of September 30, 2021, amounted to RMB 13,979,148 thousand, up from RMB 12,846,342 thousand at the end of 2020, reflecting a growth of approximately 8.8%[22]. - The total liabilities increased to RMB 9,400,558 thousand as of September 30, 2021, compared to RMB 7,756,717 thousand at the end of 2020, marking an increase of about 21.1%[22]. - The total liabilities of the company as of September 30, 2021, were RMB 7,756,717 thousand, compared to RMB 8,057,616 thousand at the beginning of the year, indicating a reduction in liabilities[30]. - The company's equity attributable to shareholders decreased by 10.3% to CNY 3,530,717 thousand compared to the previous year-end[5]. - The company's total equity decreased to RMB 4,578,590 thousand as of September 30, 2021, down from RMB 5,089,625 thousand at the end of 2020, reflecting a decline of about 10%[22]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 65,385[15]. - The largest shareholder, Jiangsu Jinsheng Industrial Co., Ltd., holds 46.94% of the shares, amounting to 889,759,677 shares[15]. - The company has a total of 10 major shareholders, with the top 10 holding a significant portion of the shares[16]. Corporate Actions - The company plans to sell its subsidiary Saurer Netherlands Machinery Company B.V.'s assets for €30 million (approximately RMB 234 million) to Rieter Holding AG[17]. - The restructuring protection application for two German subsidiaries was withdrawn, and the restructuring process has been terminated as of August 17, 2021[18]. - The company held its second extraordinary general meeting on September 28, 2021, to elect the new board of directors and supervisory board members[19]. - The company is actively working on the sale of its assets and will disclose further information as the project progresses[17]. Costs and Expenses - Total operating costs for the first three quarters of 2021 were RMB 4,343,101 thousand, compared to RMB 3,847,661 thousand in 2020, indicating an increase of about 12.9%[24]. - Research and development expenses for the first three quarters of 2021 were RMB 304,264 thousand, compared to RMB 290,242 thousand in the same period of 2020, showing an increase of approximately 4.8%[24]. - The financial expenses decreased by 37% to CNY 104,637 thousand, primarily due to reduced exchange losses[12]. Inventory and Cash Management - Cash and cash equivalents stood at RMB 1,612,307 thousand as of September 30, 2021, significantly higher than RMB 525,988 thousand at the end of 2020, indicating a growth of approximately 206.5%[22]. - The company's inventory increased to RMB 2,232,312 thousand as of September 30, 2021, compared to RMB 1,984,364 thousand at the end of 2020, representing an increase of about 12.5%[22]. - The company's cash and cash equivalents at the end of the third quarter of 2021 stood at RMB 937,235 thousand, a significant increase from RMB 149,306 thousand at the end of the previous year[27]. Accounting Standards - The company has adopted new leasing standards starting from 2021, which may impact future financial reporting and cash flow management strategies[27].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 2,496,618,000, representing an increase of 11.1% compared to CNY 2,247,071,000 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of CNY 52,305,000, an improvement from a loss of CNY 110,767,000 in the previous year[17]. - The net cash flow from operating activities was CNY 403,424,000, a significant recovery from a negative cash flow of CNY 48,827,000 in the same period last year[17]. - The total assets at the end of the reporting period were CNY 12,521,014,000, down 2.5% from CNY 12,846,342,000 at the end of the previous year[17]. - The net assets attributable to shareholders decreased by 3.8% to CNY 3,785,541,000 from CNY 3,934,982,000 at the end of the previous year[17]. - The basic earnings per share for the first half of 2021 was -CNY 0.0293, a 50.4% improvement from -CNY 0.0590 in the same period last year[18]. - The weighted average return on net assets improved to -1.35% from -2.26% in the previous year, an increase of 0.91 percentage points[18]. - The company reported non-recurring gains and losses totaling CNY 1,259,000, primarily from government subsidies and other income[18]. - The company achieved operating revenue of 2.497 billion RMB, an increase of 11.1% year-on-year[31]. - Net profit attributable to shareholders was -52 million RMB, indicating a loss[31]. - The total comprehensive income for the first half of 2021 was -170,240 thousand RMB, compared to -48,656 thousand RMB in the same period of 2020[109]. Operational Highlights - The company operates in the natural fiber textile machinery sector, providing comprehensive solutions from cotton opening to spinning machines, with a presence in over 130 countries[21]. - The company has three main divisions: Spinning Division, Technology Division, and Data & Services Division, focusing on automation, digitalization, and smart manufacturing[22]. - The company employs over 501 R&D personnel and has registered over 1,100 patents, emphasizing continuous innovation in textile machinery[25]. - The E³+I concept allows the company to reduce energy consumption by up to 25%, increase production by up to 30%, and decrease maintenance costs by 60% for its automatic spinning machines[25]. - The latest BD 480 Plus spinning machine can save up to 29% energy per kilogram of yarn compared to its predecessor, with a production speed of up to 105,000 revolutions per minute[27]. - The company plans to expand its industrial automation business through internal development and external collaborations, including mergers and acquisitions[22]. - The company aims to enhance its digital services by integrating technologies such as 5G, AI, IoT, big data, and cloud computing into its textile machinery[22]. - The company’s brands, including Schlafhorst and Zinser, are leaders in spinning technology, contributing to its competitive edge in the market[28]. - The company’s production facilities are located in China, Germany, Switzerland, the UK, Singapore, and India, ensuring a global manufacturing footprint[21]. Market and Revenue Insights - Revenue from the Chinese market decreased by 31.8% due to reduced purchases from strategic customers, while revenue from India increased by 157.4%[32]. - The spinning division generated revenue of 1.83 billion RMB, a year-on-year growth of 1.8%[32]. - The technology division's revenue reached 660 million RMB, growing by 64.5% year-on-year[32]. - The company is focusing on high-margin products and has maintained a gross margin above 40% for its core parts sales and services[34]. - New product launches include the Autoairo spinning machine and the AutoBD spinning machine, which are expected to capture new market segments[34]. Financial Position and Liabilities - The company's total assets reached 12,530,000 thousand RMB, with overseas assets accounting for 4,998,013 thousand RMB, representing 39.9% of total assets[46]. - The company reported a significant increase in accounts payable, rising to 1,742,306 thousand RMB, a 75.5% increase compared to the previous period[45]. - Long-term borrowings decreased by 33.7% to 873,000 thousand RMB, primarily due to reclassification of some long-term borrowings to current liabilities[45]. - The company experienced a 58.0% decrease in employee compensation payable, amounting to 142,328 thousand RMB, due to the exclusion of two German subsidiaries from the consolidation scope[45]. - The company’s other comprehensive income showed a significant fluctuation, with a loss of 48,590 thousand RMB, primarily due to exchange rate volatility[45]. - The company’s total liabilities decreased to 1,516,390 thousand RMB in the first half of 2021 from 1,820,089 thousand RMB in the same period of 2020, indicating a reduction of approximately 16.7%[114]. Risks and Challenges - Economic risks include potential demand fluctuations due to economic slowdown, impacting consumer purchasing power for textile products[62]. - The company faces competition risk if it fails to maintain its technological edge and protect intellectual property in the rapidly evolving smart textile equipment industry[62]. - Global operations expose the company to overseas business risks, including management challenges due to cultural differences and political instability in 13 countries[63]. - Safety production risks are present due to the complex and potentially hazardous nature of the manufacturing process, despite established safety protocols[63]. - Currency fluctuation risks may affect future profitability due to operations in multiple currencies, including USD, EUR, and RMB[63]. Corporate Governance and Management - The company committed to ensuring the independence of its management team, with senior executives exclusively working for the company and not holding positions in other enterprises controlled by the shareholders[75]. - The company guarantees the independence of its assets, ensuring that all assets are under its control and not occupied by related parties[75]. - The company has established an independent financial accounting department and maintains separate bank accounts from related parties[75]. - The company has committed to minimizing related party transactions and ensuring that any unavoidable transactions are conducted at fair market conditions[76]. - The controlling shareholder has pledged not to interfere with the company's management activities or infringe on its interests post-restructuring[76]. Restructuring and Acquisitions - The company’s two German subsidiaries entered restructuring protection on June 16, 2021, due to financial difficulties[78]. - The company signed an asset sale agreement with Rieter Holding AG on August 13, 2021, for €300 million (approximately ¥2.34 billion), with €245 million (approximately ¥1.91 billion) allocated for debt repayment[79]. - The targeted business reported an EBITDA loss of €165 million in 2020 and €30.42 million in the first five months of 2021[80]. - The restructuring protection application was withdrawn on August 17, 2021, after the resignation of the previous management board and the signing of the asset sale agreement[81]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 69,387[91]. - The largest shareholder, Jiangsu Jinsheng Industrial Co., Ltd., held 889,759,677 shares, accounting for 46.94% of the total shares[93]. - The second-largest shareholder, Zhuolang Intelligent Technology Co., Ltd., held 107,500,773 shares, representing 5.67% of the total shares[93]. - The third-largest shareholder, Guokai Financial Co., Ltd., held 61,778,441 shares, which is 3.26% of the total shares[93]. - The total number of shares held by the top ten shareholders was significant, with the top shareholder holding nearly half of the total shares[93]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the Chinese Accounting Standards and reflect the company's financial position and operating results accurately[136]. - The company operates under a continuous business basis, ensuring ongoing operations and financial stability[134]. - The company recognizes expected credit losses based on reasonable and evidence-based information, considering past events, current conditions, and future economic forecasts[155]. - The company applies the equity method for long-term equity investments in associates and joint ventures, recognizing share of net profit and other comprehensive income[174]. - The company conducts impairment tests for long-term assets, including fixed assets and intangible assets, at least annually or when there are indications of impairment[199].

Financial Performance - The company reported a net profit of -671,542 thousand RMB for the year 2020, indicating a loss [4]. - The board proposed not to distribute profits or increase share capital due to the lack of profitability in the consolidated financial statements [5]. - The company's basic earnings per share (EPS) for 2020 was -0.3043 CNY, a decrease of 194.6% compared to 0.3218 CNY in 2019 [21]. - Total revenue for 2020 was 4,849,549 thousand CNY, representing a 43.4% decline from 8,575,309 thousand CNY in 2019 [22]. - The net profit attributable to shareholders for 2020 was -561,458 thousand CNY, a decrease of 192.2% from 608,934 thousand CNY in 2019 [22]. - The weighted average return on equity (ROE) for 2020 was -12.49%, a decrease of 25.18 percentage points from 12.69% in 2019 [21]. - The company's net assets attributable to shareholders decreased by 20.4% to 3,934,982 thousand CNY at the end of 2020 from 4,942,804 thousand CNY at the end of 2019 [22]. - The company reported a net cash flow from operating activities of -1,092,621 thousand CNY for 2020, compared to -252,733 thousand CNY in 2019 [22]. - The company reported a net loss of 670 million RMB, compared to a net profit of 790 million RMB in the previous year, resulting in a cash flow decrease of 1.46 billion RMB [63]. - The total comprehensive income for the year was -102,812 thousand RMB, compared to -146,128 thousand RMB in the previous year, indicating an improvement [186]. Share Repurchase and Dividends - The company repurchased shares amounting to 491,079.06842 thousand RMB, which is considered equivalent to cash dividends for the year [4]. - The cash dividend amount for 2020 was RMB 491,079,068.42, but no percentage was applicable due to the negative profit [96]. - The company has not declared any cash dividends for 2019, citing economic pressures from the pandemic and the need for financial stability for future investments [90]. - In 2019, the total amount of share repurchase by the company was RMB 108,931.20602 thousand, accounting for 17.89% of the distributable profit for the year [91]. - The company distributed a total of RMB 557,384.175043 thousand in cash dividends from 2017 to 2019, representing 80.49% of the average annual distributable profit over the three years [91]. Operational Risks and Strategic Plans - The company emphasizes the importance of maintaining financial stability and risk resistance for future operations [5]. - The company has outlined significant risk factors in its operational analysis section, urging investors to be cautious [7]. - The company’s strategic development and future operational plans are subject to investment risks and do not constitute a commitment to investors [6]. - The company aims to enhance its core competitiveness by adjusting its sales structure, focusing on key customers, and expanding into new markets [82]. - The company plans to enhance its competitive edge by establishing a new Data and Services Division to leverage advancements in industrial internet and smart manufacturing technologies [42]. - The company aims to expand its market presence in Asia and along the "Belt and Road" initiative, targeting regions with lower labor costs to improve profitability [44]. Research and Development - The company has established R&D centers in China, Germany, and Switzerland to support both foundational and customized product development [30]. - The total R&D investment amounted to 540,373 thousand RMB, representing 11.14% of total revenue, with 25.7% of R&D costs capitalized [60]. - The company has over 501 R&D personnel and has registered more than 1,100 patents, enhancing its competitive edge in the textile machinery industry [32]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency [143]. Market Performance - Revenue from the Chinese market declined by 50.2% to RMB 2.38 billion, primarily due to the impact of the COVID-19 pandemic [39]. - The Turkish market saw a significant increase in revenue, growing by 119.9% to RMB 631.66 million [39]. - The spinning division generated revenue of RMB 3.86 billion, down 47.2% year-on-year [39]. - The technology division reported revenue of RMB 1.02 billion, a decline of 23.3% [39]. - The company reported a significant increase in orders as the textile machinery market begins to recover globally [44]. Governance and Compliance - The company guarantees the independence of its assets, ensuring that all assets are under its control and not misappropriated by controlling parties [100]. - The company has committed to maintaining an independent corporate governance structure, ensuring separation from controlling parties in terms of organizational structure [100]. - The company has established an independent financial accounting department and a separate financial management system, ensuring independent financial decision-making [100]. - The company has not faced any penalties from securities regulatory authorities in the past three years [149]. - The company’s internal control was evaluated as effective in all material aspects as of December 31, 2020, according to the internal control audit report [162]. Environmental and Social Responsibility - The company emphasizes environmental protection and has implemented the E³+I concept in product development to reduce energy consumption and improve production efficiency [116]. - The company actively participated in social welfare activities during the COVID-19 pandemic, providing resources to medical equipment manufacturers and donating to local charities [116]. - The company has a strong focus on employee rights and has implemented various training and team-building activities to foster a positive work environment [116]. - The company’s important subsidiaries have passed the ISO14001:2004 environmental management system certification, ensuring compliance with environmental regulations [117]. Financial Position - The total assets of the company as of December 31, 2020, were 12.85 billion RMB, with net assets attributable to shareholders at 3.94 billion RMB [46]. - The total liabilities rose to RMB 7,756,717 thousand in 2020, compared to RMB 6,872,172 thousand in 2019, indicating an increase of approximately 12.8% [178]. - Cash and cash equivalents decreased by 78.1% to 525,988 thousand RMB, primarily due to share repurchase expenditures and increased operating cash outflows [68]. - The company reported a decrease in retained earnings to RMB 962,457 thousand in 2020 from RMB 1,523,915 thousand in 2019, a decline of about 36.8% [178]. - The total equity attributable to shareholders decreased to RMB 3,934,982 thousand in 2020 from RMB 4,942,804 thousand in 2019, a decline of approximately 20.4% [178].

Financial Performance - Operating revenue rose by 6.8% to CNY 1,242,008 thousand year-on-year[5] - Net profit attributable to shareholders was CNY 17,249 thousand, a significant recovery from a loss of CNY 48,170 thousand in the same period last year[5] - Operating profit for Q1 2021 was CNY 30,270 thousand, a significant improvement from a loss of CNY 51,344 thousand in Q1 2020[23] - Net profit for Q1 2021 reached CNY 28,410 thousand, compared to a net loss of CNY 51,018 thousand in the same period last year[23] - The company reported a basic and diluted earnings per share of CNY 0.0096 in Q1 2021, recovering from a loss of CNY 0.0256 in Q1 2020[24] Cash Flow - Net cash flow from operating activities reached CNY 529,124 thousand, a turnaround from a negative cash flow of CNY -1,243,307 thousand in the previous year[5] - Cash flow from operating activities showed a net inflow of 529,124 thousand RMB, a substantial increase compared to a net outflow of 1,243,307 thousand RMB in the previous year[17] - Cash flow from investing activities recorded a net outflow of 41,234 thousand RMB, a decrease from 64,777 thousand RMB in the previous year, due to reduced cash payments for fixed assets and intangible assets[17] - Cash flow from financing activities showed a net outflow of 293,604 thousand RMB, a significant increase compared to a net inflow of 93,437 thousand RMB in the previous year, primarily due to bank loan repayments[17] - Operating cash inflow for Q1 2021 was CNY 1,876,869 thousand, a 74.8% increase from CNY 1,074,468 thousand in Q1 2020[27] - Cash outflow from investing activities in Q1 2021 was CNY 43,133 thousand, down 89.4% from CNY 407,160 thousand in Q1 2020[28] - Cash inflow from financing activities in Q1 2021 was CNY 966,463 thousand, a decrease of 26.8% from CNY 1,321,194 thousand in Q1 2020[28] - Net cash flow from financing activities for Q1 2021 was negative CNY 293,604 thousand, compared to a positive CNY 93,437 thousand in Q1 2020[28] Assets and Liabilities - Total assets increased by 4.5% to CNY 13,428,466 thousand compared to the end of the previous year[5] - Total assets increased to 13,428,466 thousand RMB from 12,846,342 thousand RMB year-over-year[18] - Total liabilities rose to 8,423,627 thousand RMB from 7,756,717 thousand RMB year-over-year[19] - Total liabilities as of Q1 2021 were CNY 2,786,311 thousand, compared to CNY 2,653,454 thousand in Q1 2020[21] - Total assets as of Q1 2021 amounted to CNY 12,846,342 thousand, compared to CNY 13,147,241 thousand at the beginning of the year[34] Shareholder Information - The number of shareholders reached 70,809, with the largest shareholder holding 46.94% of the shares[9] - Shareholders' equity decreased to 5,004,839 thousand RMB from 5,089,625 thousand RMB year-over-year[19] - The company's equity attributable to shareholders was CNY 3,934,982 thousand as of Q1 2021, unchanged from the previous year[35] Expenses and Income - Tax and additional fees decreased by 63.1% to 2,324 thousand RMB due to increased raw material purchases leading to reduced VAT payments[15] - Financial expenses dropped by 94.5% to 4,325 thousand RMB, influenced by increased exchange gains and a decrease in net interest expenses[15] - Other income surged by 434.4% to 23,376 thousand RMB, primarily due to an increase in operational government subsidies received[15] - Research and development expenses for Q1 2021 were CNY 94,539 thousand, down from CNY 107,522 thousand in Q1 2020, reflecting a focus on cost management[23] Credit and Impairment - Credit impairment losses amounted to 13,170 thousand RMB, a significant improvement from a loss of 5,368 thousand RMB in the previous year, attributed to an improved macroeconomic environment[15] - The company experienced a credit impairment loss of CNY 13,170 thousand in Q1 2021, compared to a gain of CNY 5,368 thousand in Q1 2020, indicating increased credit risk[23] Other Financial Metrics - The weighted average return on equity improved to 0.44% from -0.98% year-on-year[5] - The company recorded a significant decrease of 84.3% in receivables financing, down to CNY 24,912 thousand, primarily due to the maturity and discounting of notes receivable[13] - New lease liabilities were introduced, resulting in a 100% increase in lease liabilities to CNY 114,966 thousand, reflecting the implementation of new leasing standards[13] - Other comprehensive income for Q1 2021 was a loss of CNY 113,196 thousand, contrasting with a gain of CNY 16,530 thousand in Q1 2020, highlighting volatility in financial markets[24]