Financial Performance - The company's operating revenue for Q1 2023 was ¥44,692,125.71, a decrease of 68.04% compared to the same period last year[5] - The net profit attributable to shareholders was a loss of ¥12,251,201.05, with no applicable percentage change due to the loss[5] - The net cash flow from operating activities was ¥15,175,409.13, down by 9.67% year-on-year[5] - The company reported a net loss of RMB 2,004,340,943.45 in Q1 2023, compared to a net loss of RMB 1,992,089,742.40 in the same period last year[18] - In Q1 2023, the company reported a net loss of CNY 13,168,557.48, compared to a net loss of CNY 72,207,998.96 in Q1 2022, indicating a significant improvement[22] - The total operating profit for Q1 2023 was CNY -10,919,200.79, an improvement from CNY -58,468,993.84 in the same period last year[21] - The total comprehensive loss for Q1 2023 was CNY -13,168,557.48, compared to CNY -72,207,998.96 in Q1 2022, indicating a narrowing of losses[22] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,878,172,210.54, a decrease of 16.86% from the end of the previous year[6] - Total assets as of March 31, 2023, were RMB 2,878,172,210.54, down from RMB 3,461,821,682.82 at the end of 2022, indicating a decrease of approximately 16.8%[18] - Total liabilities decreased to RMB 1,134,582,227.18 from RMB 1,705,063,141.98, a reduction of about 33.5%[18] - The company's equity attributable to shareholders was RMB 1,723,572,171.06, slightly down from RMB 1,735,823,372.11 at the end of 2022[18] Shareholder Information - The total number of common shareholders at the end of the reporting period was 37,089[12] - The top shareholder, Qingdao Zhican Information Industry Development Partnership, holds 13.02% of the shares[12] Revenue and Costs - Total operating revenue for Q1 2023 was RMB 44,692,125.71, a decrease of 68% compared to RMB 139,829,582.04 in Q1 2022[20] - Total operating costs for Q1 2023 were RMB 64,348,556.18, down 68.5% from RMB 204,658,545.96 in Q1 2022[20] - The significant decline in operating revenue was primarily due to a decrease in sales of sapphire products[9] - The company’s total revenue from sales and services received in Q1 2023 was CNY 17,537,524.95, a decrease from CNY 98,016,183.97 in Q1 2022[24] Cash and Cash Equivalents - Cash and cash equivalents as of March 31, 2023, amounted to RMB 28,829,321.80, an increase from RMB 19,573,259.72 at the end of 2022[16] - The company’s cash and cash equivalents at the end of Q1 2023 stood at CNY 23,977,722.80, up from CNY 17,633,773.67 at the end of Q1 2022[26] Accounts Receivable and Inventory - Accounts receivable decreased to RMB 135,721,842.49 from RMB 144,160,519.12 at the end of 2022, reflecting a reduction of approximately 5.5%[16] - Inventory increased to RMB 398,403,081.48 from RMB 380,630,678.55, representing a growth of about 4.9%[16] Research and Development - Research and development expenses in Q1 2023 were CNY 3,296,325.97, significantly lower than CNY 16,216,342.30 in Q1 2022, reflecting a strategic shift in spending[21] Financial Management - The company incurred financial expenses of CNY 346,735.38 in Q1 2023, a decrease from CNY 33,697,918.91 in Q1 2022, suggesting improved financial management[21] - The company’s total cash outflow from operating activities was CNY 130,681,839.47 in Q1 2023, compared to CNY 123,271,278.54 in Q1 2022, indicating a slight increase in cash outflow[25]

Financial Performance - The company reported a net profit attributable to shareholders of 61 million RMB for the year 2022, with accumulated undistributed profits of -397 million RMB, resulting in no profit distribution for the year[5]. - The company's operating revenue for 2022 was CNY 531,252,923.20, a decrease of 24.07% compared to CNY 699,693,403.08 in 2021[25]. - The net profit attributable to shareholders of the listed company was CNY 60,655,741.46, marking a turnaround from a loss of CNY 483,122,435.32 in the previous year[25]. - The net cash flow from operating activities decreased by 40.16% to CNY 16,531,913.53 from CNY 27,626,865.53 in 2021[26]. - The total assets increased by 31.88% to CNY 3,461,821,682.82 from CNY 2,624,881,306.89 in 2021[26]. - The net assets attributable to shareholders of the listed company increased by CNY 204,719,070.00, primarily due to debt restructuring gains[29]. - Basic earnings per share improved to CNY 0.05 from a loss of CNY 0.39 in 2021[27]. - The company experienced a net loss attributable to shareholders of CNY 786,681,393.00 after excluding non-recurring gains and losses, an increase from CNY 505,996,996.28 in 2021[26]. - The fourth quarter saw a net profit of CNY 598,176,061.24, contrasting with losses in the previous three quarters[31]. Debt Restructuring and Financial Stability - The company has fully recovered non-operating fund occupation of 352.3 million RMB through debt compensation and restructuring investor compensation during the reporting period[7]. - The company completed its bankruptcy reorganization on December 31, 2022, effectively resolving debt risks and improving its asset-liability structure, with net assets turning positive[37]. - The company plans to continue focusing on debt restructuring and capital infusion to enhance financial stability and growth prospects[28]. - The company has resolved past fund occupation issues by its former controlling shareholder, eliminating negative impacts from previous guarantees[95]. - The company has confirmed a substantial increase in expected liabilities by 942.15% to CNY 506.822 million, related to guarantees for subsidiaries[74]. - The company has initiated a pre-restructuring process as of September 15, 2022, following a court decision[168]. - The restructuring plan was approved by the court on December 30, 2022, and the restructuring process was completed by December 31, 2022[170]. Market and Industry Dynamics - The company is positioned to benefit from the growing demand for sapphire materials in consumer electronics and the increasing penetration of Mini-LED and Micro-LED technologies[39]. - The demand for small-sized sapphire rods increased slightly year-on-year, while sales of 4-inch rods and chips decreased due to weak LED market demand[44]. - The LED industry is supported by national policies, with a target for over 80% of urban lighting to utilize efficient LED products by 2030[40]. - The company is facing intensified market competition in the LED chip industry, which may impact its operational performance[88]. - The company reported a significant increase in single crystal furnace revenue, which rose by 363.49% year-on-year, with a gross margin of 29.34%[54]. Research and Development - Research and development expenses increased by 172.78% to ¥90,092,745.46, reflecting a significant investment in innovation[48]. - The total R&D investment amounted to ¥81,216,017.94, representing 15.29% of total revenue[66]. - The company has implemented measures to enhance product quality control and improve management efficiency through refined internal processes[38]. - The company has established a unique technological research and development advantage, focusing on practical value and rapid adaptation to market changes[45]. Governance and Compliance - The company has maintained transparency in its financial reporting and compliance with regulatory requirements[118]. - The company has not reported any significant internal control deficiencies during the reporting period[137]. - The company has established internal control systems in compliance with relevant laws and regulations, enhancing decision-making efficiency and governance capabilities[136]. - The company has not disclosed any new product developments or technological advancements in the reporting period[100]. Shareholder and Investor Relations - The company has a cash dividend policy that emphasizes stable returns to investors, but no cash dividends were declared for the reporting period due to negative retained earnings as of the end of 2022[132]. - The company will communicate with shareholders, especially minority shareholders, regarding profit distribution proposals[155]. - The company has commitments related to profit compensation, ensuring that cumulative actual net profits meet or exceed specified targets from previous years[149]. - Shareholders have agreed to lock-up periods for their shares, preventing transfer or trading for 36 months post-issuance, ensuring stability in shareholding[150]. Legal Matters - The company is currently involved in significant litigation and arbitration matters[171]. - The company has ongoing litigation involving various banks, including a case with Citic Bank regarding a loan dispute of 1.3 million RMB, which has reached a first-instance judgment[173]. - The company is facing a lawsuit from small investors claiming civil compensation for information disclosure violations, with some cases already resulting in first-instance judgments[172]. - The company has been ordered to pay 2,613,885.37 RMB in a ruling related to a dispute over goods payment, including principal and interest[176].

Financial Performance - The company's operating revenue for Q3 2022 was ¥99,327,556.86, a decrease of 31.91% compared to the same period last year[5]. - The net profit attributable to shareholders for Q3 2022 was -¥357,555,943.29, with a year-to-date net profit of -¥537,520,319.78[5]. - The basic earnings per share for Q3 2022 was -¥0.29, and the diluted earnings per share was also -¥0.29[6]. - Total operating revenue for the first three quarters of 2022 was CNY 410,364,397.34, a decrease from CNY 452,559,381.55 in the same period of 2021, representing a decline of approximately 9.3%[31]. - The net loss for the third quarter of 2022 was CNY 537,470,541.86, compared to a net loss of CNY 158,350,861.99 in the same quarter of 2021, indicating a significant increase in losses[33]. - Basic and diluted earnings per share for the third quarter of 2022 were both CNY -0.4400, compared to CNY -0.1290 in the same quarter of 2021[34]. - The total liabilities as of the end of the third quarter of 2022 amounted to CNY 3,297,445,987.47, an increase from CNY 2,914,307,170.64 at the same time last year[29]. - The total equity attributable to shareholders of the parent company was CNY -848,887,604.11, compared to CNY -311,367,284.33 in the previous year, indicating a worsening financial position[29]. Assets and Liabilities - The total assets at the end of Q3 2022 were ¥2,470,549,581.86, reflecting a decrease of 5.88% from the end of the previous year[6]. - As of September 30, 2022, the company's total current assets amounted to RMB 803,705,468.24, a decrease from RMB 863,608,284.97 at the end of 2021[27]. - The company's accounts receivable stood at RMB 271,243,787.74, down from RMB 313,999,041.10 in the previous year[27]. - The company's inventory decreased to RMB 463,416,474.24 from RMB 494,438,984.39 as of December 31, 2021[27]. - The company reported a negative net asset value of RMB -848,887,604.11 as of the end of the reporting period[25]. - The company has a non-operating fund occupation balance of 357.57 million RMB as of the end of the reporting period[15]. - The company has unauthorized guarantees totaling 55 million RMB[15]. - The company is involved in a lawsuit with a potential liability of 77.62 million RMB related to a guarantee contract[16]. - The company has a contingent liability of 168.29 million RMB from a trust loan that was not repaid[17]. Cash Flow - The cash flow from operating activities for the year-to-date period was ¥14,175,064.91, down 51.72% year-on-year[5]. - In the first three quarters of 2022, the cash inflow from operating activities was approximately $316.54 million, a decrease of 28.3% compared to $441.15 million in the same period of 2021[35]. - The net cash outflow from operating activities was $14.18 million in 2022, down from $29.36 million in 2021, indicating a decline of 51.8%[35]. - Cash outflow for purchasing goods and services was $130.02 million in 2022, compared to $144.74 million in 2021, reflecting a decrease of 10.2%[35]. - The cash inflow from investment activities was $30,000 in 2022, while cash outflow was $6.42 million, resulting in a net cash outflow of $6.42 million, compared to a net outflow of $5.08 million in 2021[36]. - The cash outflow for financing activities was $13,030.69 in 2022, significantly lower than $32.83 million in 2021, marking a reduction of 60.3%[36]. - The net increase in cash and cash equivalents for the period was $7.74 million in 2022, contrasting with a decrease of $8.55 million in 2021[36]. - The ending balance of cash and cash equivalents was $10.71 million in 2022, up from $5.40 million in 2021, indicating an increase of 98.5%[36]. - The company received $105,279.32 in tax refunds in 2022, a significant drop from $922,598.95 in 2021, representing a decline of 88.6%[35]. - The cash received from other operating activities was $4.61 million in 2022, down from $72.15 million in 2021, reflecting a decrease of 93.6%[35]. - The company reported a cash outflow of $55.55 million for other operating activities in 2022, compared to $163.90 million in 2021, indicating a reduction of 66.1%[35]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 36,517[13]. - The largest shareholder, Zuo Hongbo, holds 232,271,715 shares, accounting for 18.93% of total shares[13]. - The second-largest shareholder, Chu Shuxia, holds 155,722,213 shares, representing 12.6% of total shares[13]. - The company has not disclosed any relationships among other shareholders[14]. Legal and Regulatory Issues - The company is facing a risk of delisting due to negative net assets and potential bankruptcy if the restructuring fails[25]. - The company has received a court decision to initiate pre-restructuring procedures due to its inability to repay debts[23]. - The company is actively seeking to recruit and select restructuring investors, with two entities having submitted applications[24]. - The company is pursuing recovery of funds from its controlling shareholder to protect investor interests[15]. - The company is actively managing legal disputes to minimize adverse impacts on its operations[16]. Research and Development - The company reported a significant increase in research and development expenses, which rose to CNY 47,350,744.01 from CNY 23,516,432.66, representing an increase of about 100.5%[32]. - The company reported a significant increase in financial expenses and research and development costs, contributing to the decline in net profit[10]. - The company has not reported any new product developments or market expansion strategies in this quarter[10].

Financial Performance - The company's operating revenue for the first half of the year was ¥311,036,840.48, a year-on-year increase of 1.42% compared to ¥306,675,739.40 in the same period last year [26]. - The net profit attributable to shareholders was a loss of ¥179,964,376.49, which is an increase in loss of ¥86,849,600 compared to a loss of ¥93,114,806.14 in the previous year [26]. - The net cash flow from operating activities decreased by 87.99%, amounting to ¥5,976,753.40, down from ¥49,784,722.03 in the same period last year [26]. - The total assets decreased by 3.81%, totaling ¥2,524,892,802.88, compared to ¥2,624,881,306.89 at the end of the previous year [27]. - The basic earnings per share decreased to -¥0.1500 from -¥0.0759 in the same period last year [28]. - The net assets attributable to shareholders decreased by ¥179,996,660.82, primarily due to the negative net profit for the period [27]. - The company reported a decrease in gross profit margin, leading to a reduction in gross profit, alongside increased financial, research and development, and management expenses [29]. - The company experienced a decrease in cash received from sales and an increase in cash paid for goods and services, impacting cash flow negatively [29]. - The company's main business includes the research, production, and sales of sapphire crystal materials and products, as well as specialized equipment for sapphire crystal growth and 3D glass bending [34]. Legal and Compliance Issues - The company is currently involved in litigation, with some accounts and assets frozen, and is actively seeking to reach settlements with creditors [11]. - There is a risk of change in actual control due to the controlling shareholders' pledged shares reaching the margin call line and being subject to judicial freezing [12]. - The company faces potential bankruptcy liquidation risks if creditors apply for auction, reorganization, or bankruptcy proceedings [13]. - The company has initiated legal actions against overdue accounts to mitigate the risk of bad debts, reflecting a proactive approach to accounts receivable management [62]. - The company is currently involved in 657 lawsuits from minority investors, with ongoing communication to mitigate negative impacts [75]. - The company has faced financial risks related to overdue loans, including a 240 million yuan loan from a bank that has gone into litigation [63]. - The company is facing potential bankruptcy risks due to ongoing litigation and asset freezes [78]. - The company is under scrutiny for its payment practices, which may impact its reputation and future business relationships [109]. - The company has been subject to disciplinary actions by the Shanghai Stock Exchange for financial reporting violations [114]. - The company and its controlling shareholders received corrective measures from the China Securities Regulatory Commission for compliance issues [113]. Shareholder and Capital Structure - The controlling shareholder, Mr. Zuo Hongbo, holds 232,271,715 shares, accounting for 18.93% of the total share capital, with all shares frozen [117]. - Ms. Zhu Shuxia holds 157,483,093 shares, representing 12.83% of the total share capital, with all shares also frozen [117]. - The total number of ordinary shareholders as of the end of the reporting period was 37,839 [128]. - The largest shareholder, Zuo Hongbo, held 232,271,715 shares, accounting for 18.93% of the total shares, with 93,471,715 shares frozen [130]. - The second-largest shareholder, Chu Shuxia, held 157,483,093 shares, accounting for 12.83% of the total shares, with 155,722,213 shares frozen [130]. - The company did not experience any changes in total shares or capital structure during the reporting period [127]. Debt and Financial Obligations - The company has a significant debt exposure, with ongoing litigation related to multiple overdue loans, which could impact financial stability [64]. - The company has a total debt of RMB 373.24 million due to a loan contract violation, with a demand for repayment including principal and interest [70]. - The company has accrued interest of RMB 12.93 million in 2019, RMB 7.85 million in 2020, RMB 7.83 million in 2021, and RMB 3.88 million in the first half of 2022 related to a debt of RMB 42.90 million [67]. - The company has received a loan of RMB 100 million from Citic Bank, which has not been repaid on time, resulting in litigation [71]. - The company is actively seeking solutions to resolve asset freezes and debt disputes with creditors [74]. - The company has a loan of RMB 60 million from Longjiang Bank, which is currently overdue and has led to legal action [72]. - The company has a total of 55,000 million RMB in irregular guarantees, with 15,000 million RMB related to Hangzhou Zunyan Investment Management Co., Ltd. and 10,000 million RMB related to Beijing Yaolai Investment Co., Ltd. [101]. - The actual controller, Zuo Hongbo, has a borrowing contract amounting to 20,000 million RMB, with a maximum guarantee amount of 30,000 million RMB signed without proper internal approval [101]. Operational Challenges and Strategies - The company is facing risks from raw material and electricity price fluctuations, which significantly impact product costs and profitability [59]. - The company is actively improving its production processes and equipment to reduce costs and enhance efficiency in response to market changes [59]. - The company plans to continue expanding its sapphire materials and equipment sales business, focusing on optimizing product structure and business types [43]. - The company aims to mitigate debt risks and improve profitability through continuous optimization of its operational processes and product offerings [43]. - The company plans to negotiate long-term procurement contracts with suppliers to alleviate payment pressures and improve cash flow management [191]. - The company intends to divest ineffective businesses to improve asset utilization and reduce performance drag, while also revitalizing idle assets [190]. - The company plans to enhance market expansion by focusing on customer needs and leveraging opportunities in emerging display technologies like Mini-LED/Micro-LED [189]. Research and Development - Research and development expenses increased by 121.62% year-on-year to CNY 33,903,995.59, reflecting the company's commitment to enhancing its technological capabilities [45]. - The company continues to invest in R&D to optimize crystal growth processes and improve product yield and efficiency, thereby reducing manufacturing costs [39]. - The company is focusing on technology development and product performance to enhance market competitiveness and expand application areas [61]. - The company aims to increase R&D efforts to accelerate the conversion of results and improve product gross margins, leveraging its technological expertise in sapphire materials [190]. Market and Industry Outlook - The LED industry, particularly in low-end lighting chips, has reached maturity, with stable demand, while new applications like Mini-LED and Micro-LED are rapidly developing, creating new opportunities for sapphire materials [37]. - The sapphire material market is expected to grow due to increasing applications in consumer electronics, including demand for sapphire in hair removal devices and beauty instruments [37]. - The company has improved the automation level of its large-size 3D glass bending equipment and is focusing on high-end equipment manufacturing and sales, aiming to provide comprehensive solutions including "turnkey projects" [38]. - The company maintains a strong competitive edge through its proprietary technologies in sapphire single crystal growth and processing, as well as high-end equipment manufacturing [39].

Financial Performance - The company reported a net profit attributable to shareholders of -¥483 million for the year 2021, resulting in no profit distribution or capital reserve transfer to share capital [8]. - The company's operating revenue for 2021 was RMB 699,693,403.08, an increase of 34.67% compared to RMB 519,555,616.47 in 2020 [30]. - The net profit attributable to shareholders of the listed company was a loss of RMB 483,122,435.32, improving from a loss of RMB 684,915,831.55 in 2020 [31]. - The net cash flow from operating activities was RMB 27,626,865.53, compared to a negative cash flow of RMB -36,630,657.85 in 2020 [31]. - The total assets decreased by 11.09% to RMB 2,624,881,306.89 from RMB 2,952,180,363.25 in 2020 [31]. - The basic earnings per share for 2021 was -0.39, an improvement from -0.56 in 2020 [32]. - The company reported a decrease in net assets attributable to shareholders by RMB 311,367,284.33, primarily due to negative net profit [31]. - The company achieved operating revenue of ¥699,693,403.08, an increase of ¥180,137,786.61, representing a year-on-year growth of 34.67% [55]. - The net profit attributable to shareholders was -¥483,122,435.32, a year-on-year improvement of ¥201,793,396.23 [55]. Litigation and Legal Risks - As of December 31, 2021, the company has recognized a provision for liabilities amounting to ¥46.83 million related to 512 lawsuits from small and medium investors [6]. - The company is facing litigation risks, with some accounts and assets already frozen by judicial authorities [14]. - The actual controller's shares are under judicial freeze due to debt disputes, posing a risk of change in actual control [15]. - The company will continue to monitor the situation regarding potential bankruptcy risks as it faces multiple lawsuits [16]. - The company has received a total of 567 lawsuits from investors, with ongoing communication efforts to reach settlements [105]. - The company is currently involved in multiple debt disputes, including a loan of RMB 372.34 million that has been declared due by Guangfa Bank [101]. - The company has outstanding debts totaling RMB 92.7 million to Longjiang Bank, which have not been repaid due to liquidity issues [103]. - The company is actively seeking resolutions for its debts and is in discussions with creditors to minimize adverse impacts [100]. - The company is negotiating with creditors to resolve litigation issues that may affect operational stability [94]. - The company is involved in multiple lawsuits, with claims totaling 114,900.00 CNY, 163,550.00 CNY, and 269,976.07 CNY for unpaid goods [196]. Operational Challenges and Strategies - The company is facing challenges from the pandemic and power usage policies but managed to stabilize operations through strategic focus and customer collaboration [41]. - The company plans to enhance its market presence through the development of new sapphire products and expansion of sales channels [33]. - The company is focusing on expanding its sapphire crystal production capacity in regions with lower electricity costs to enhance profit margins [84]. - The company aims to divest ineffective assets to reduce performance drag and improve profitability [189]. - The company is actively seeking to resolve litigation matters and improve communication with creditors to mitigate the impact of lawsuits on operations [189]. Research and Development - The company has obtained over 30 patent authorizations during the reporting period, enhancing its technological innovation capabilities [52]. - Total R&D investment reached ¥75,999,814.91, representing 10.86% of operating revenue [72]. - The company reduced R&D expenses by 40.85% to ¥33,027,858.98, reflecting a strategic adjustment in project investments [56]. - The company emphasizes its technological R&D capabilities, enhancing automation levels and product quality through innovation [54]. - The company is investing in new materials and technologies, particularly in the semiconductor and optical sectors, to stay competitive [82]. Corporate Governance - The board of directors has established four specialized committees: the Strategy Committee, Nomination Committee, Compensation and Assessment Committee, and Audit Committee, which operate according to relevant regulations [111]. - The company has made continuous improvements to its corporate governance structure and internal management systems in accordance with relevant laws and regulations [110]. - The company emphasizes investor relations management, utilizing various communication channels to ensure all shareholders have equal access to information [113]. - The independent directors have actively participated in training to deepen their understanding of their rights and responsibilities, ensuring compliance with governance standards [112]. - The company has not reported any significant differences in governance practices compared to the regulations set by the China Securities Regulatory Commission [113]. Financial Management - The company has a significant inventory balance of 494 million yuan, with a provision for inventory depreciation at 35.92% of the inventory book value [95]. - The company is actively seeking new financing channels to alleviate debt risks and ensure stable business operations [89]. - The company has implemented measures to manage raw material and electricity price fluctuations, which significantly impact production costs [93]. - The company has implemented a transparent competitive mechanism for procurement, fostering long-term partnerships with quality suppliers [167]. - The company has a commitment to maintain its operational capabilities while ensuring long-term development through its profit distribution strategy [176]. Market Trends and Opportunities - The sapphire material market is experiencing growth, particularly in consumer electronics, with increasing demand for sapphire materials in smartwatches and other devices [45]. - The company anticipates new development opportunities in sapphire crystal growth equipment and substrate sales due to the expanding Mini-LED and Micro-LED markets [84]. - The large-scale commercialization of 5G technology is driving upgrade demands in smart devices, including smartphones and smart cars, creating a diverse and customized product landscape [85]. - The company is focusing on optimizing product structure and revitalizing idle assets, enhancing business layout to meet customer demands in the consumer electronics sector [41]. - The company is actively exploring investment opportunities in the sapphire crystal growth sector, driven by increased interest from investors [84].

Financial Performance - The company's operating revenue for Q1 2022 was ¥139,829,582.04, representing a year-on-year increase of 0.70%[5] - The net profit attributable to shareholders was a loss of ¥71,768,445.44, with a significant increase in losses compared to the previous year[5] - Basic and diluted earnings per share were both -¥0.06, reflecting a decrease due to increased net losses[6] - Total operating revenue for Q1 2022 was CNY 139,829,582.04, a slight increase from CNY 138,861,723.25 in Q1 2021, representing a growth of approximately 0.7%[29] - Total operating costs for Q1 2022 were CNY 204,658,545.96, up from CNY 191,011,216.22 in Q1 2021, indicating an increase of about 7.1%[29] - Net loss for Q1 2022 was CNY 72,207,998.96, compared to a net loss of CNY 49,150,676.60 in Q1 2021, reflecting a deterioration in performance[30] - The total comprehensive loss for Q1 2022 was CNY -72,207,998.96, compared to CNY -49,150,676.60 in Q1 2021, indicating a significant increase in overall losses[30] Cash Flow and Assets - The net cash flow from operating activities was ¥16,799,482.34, showing a decrease of 27.81% year-on-year[5] - The company's cash and cash equivalents were CNY 13.5 million as of March 31, 2022, compared to CNY 12.6 million at the end of 2021[26] - Accounts receivable decreased to CNY 275.6 million from CNY 314 million year-over-year[26] - Inventory stood at CNY 485.1 million, down from CNY 494.4 million at the end of 2021[27] - The ending balance of cash and cash equivalents was $17,633,773.67, up from $11,323,874.17 at the end of Q1 2021[33] Shareholder Equity and Liabilities - Total assets at the end of the reporting period were ¥2,600,783,853.43, a decrease of 0.92% from the end of the previous year[6] - The equity attributable to shareholders was -¥383,135,729.77, indicating a significant decline compared to -¥311,367,284.33 at the end of the previous year[6] - The company reported a total liability of CNY 2,962,417,716.14 as of Q1 2022, compared to CNY 2,914,307,170.64 in Q1 2021, showing a growth of about 1.6%[28] - The total equity attributable to shareholders of the parent company was CNY -383,135,729.77 in Q1 2022, worsening from CNY -311,367,284.33 in Q1 2021[28] Research and Development - The increase in net losses was primarily due to rising R&D expenses, financial costs, and income tax expenses[9] - Research and development expenses rose significantly to CNY 16,216,342.30 in Q1 2022, compared to CNY 7,427,848.64 in Q1 2021, marking an increase of approximately 118.5%[29] Legal and Compliance Issues - The company has received a civil ruling requiring a payment of RMB 42.90 million plus penalties and litigation fees related to a lawsuit involving a third party[15] - The company is involved in ongoing litigation regarding a loan guarantee that may require it to assume liability for up to RMB 100 million[18] - The company has reported a total of RMB 1 billion in guarantees issued without proper internal approval processes[16] - The company has a total of RMB 550 million in unauthorized guarantees that were not approved by the board or shareholders[13] - The company is actively pursuing the repayment of the occupied funds and has sent reminders to the controlling shareholder[13] - The company is working with relevant parties to resolve the unauthorized guarantee issues promptly[18] Risks and Future Outlook - The company's controlling shareholders, Zuo Hongbo and Chu Shuxia, have their shares frozen due to debt disputes, leading to a risk of performance commitment not being fulfilled[21] - The company's net assets at the end of 2021 were negative, which may result in a delisting risk as per the Shanghai Stock Exchange regulations[22] - The company faces potential bankruptcy liquidation risks if creditors apply for auction or reorganization, which could be accepted by the court[23] - The company has a risk of change in actual control due to the potential forced liquidation of shares held by the controlling shareholders[22] - The company is actively negotiating debt resolution plans to protect shareholder interests[24] Communication and Transparency - The company is committed to maintaining transparency and will disclose updates on the performance commitments and related compensations[20] - The company will strengthen communication with investors and intermediaries to explore feasible performance compensation methods[21]

Financial Performance - The company reported a net profit attributable to shareholders of -¥483 million for the year 2021, resulting in no profit distribution or capital reserve transfer to share capital[8]. - The company's operating revenue for 2021 was RMB 699,693,403.08, an increase of 34.67% compared to RMB 519,555,616.47 in 2020[30]. - The net profit attributable to shareholders of the listed company was a loss of RMB 483,122,435.32, improving from a loss of RMB 684,915,831.55 in 2020[31]. - The net cash flow from operating activities was RMB 27,626,865.53, compared to a negative cash flow of RMB 36,630,657.85 in 2020[31]. - The total assets decreased by 11.09% to RMB 2,624,881,306.89 from RMB 2,952,180,363.25 in 2020[31]. - The basic earnings per share for 2021 was -0.39, an improvement from -0.56 in 2020[32]. - The company experienced a reduction in asset impairment losses, contributing to the improved net profit[33]. - The company reported a net profit attributable to shareholders for Q4 2021 of -324,789,777.26 RMB, reflecting a decline compared to previous quarters[36]. - The company reported a significant increase in sales expenses by 47.69% to ¥9,457,889.65, primarily due to higher sales commissions and after-sales service costs[56]. - The company reported a total of 258,545,551.03 RMB in recovered occupied funds, with an outstanding amount of 352,296,638.33 RMB yet to be recovered[174]. Legal and Regulatory Issues - As of December 31, 2021, the company has recognized a provision for liabilities amounting to ¥46.83 million related to 512 lawsuits from small and medium investors[6]. - The company is currently involved in multiple lawsuits, with some accounts and assets frozen, and is actively seeking to reach settlements with creditors[14]. - The company received a qualified audit opinion due to uncertainties surrounding litigation and guarantee matters, impacting the financial statements[6]. - The company has outstanding debts totaling RMB 92.7 million to Longjiang Bank, which have not been repaid due to liquidity issues[103]. - The company is currently involved in multiple debt disputes, including a loan of RMB 372.34 million that has been declared due by Guangfa Bank[101]. - The company has provided guarantees for loans totaling RMB 100 million to Shanghai Aijian Trust without following internal approval processes[98]. - The company is facing risks of asset freezes due to debt disputes, although the frozen assets do not significantly impact operations[103]. - The company has been named in multiple lawsuits concerning guarantee responsibilities, with ongoing legal proceedings[191]. - The company is involved in significant litigation matters, including a lawsuit against Hangzhou Zunyan regarding a trust investment agreement due to losses from an early termination of the trust plan[190]. - The company has disclosed its litigation status in a public announcement, detailing the cumulative litigation matters over the past year[191]. Corporate Governance - The board of directors has established four specialized committees: the Strategy Committee, Nomination Committee, Compensation and Assessment Committee, and Audit Committee, which operate according to relevant regulations[111]. - The company has implemented measures to enhance internal control systems, including the revision of the seal management system to prevent similar internal control deficiencies from occurring again[111]. - The company emphasizes investor relations management, utilizing various communication channels to ensure all shareholders have equal access to information[113]. - The independent directors have actively participated in training to better understand their rights, obligations, and responsibilities, ensuring compliance and promoting the company's overall interests[112]. - The company has made efforts to improve corporate governance and enhance competitiveness through continuous training for directors, supervisors, and senior management[113]. - The company has established a decision-making process for related party transactions to ensure fairness and compliance with legal regulations[174]. - The company has committed to rectifying issues raised by regulatory bodies, including a corrective action report submitted in January 2022[133]. Market and Operational Strategy - The company plans to expand its sales of sapphire products and related equipment, which contributed to the revenue growth[33]. - The sapphire material market is experiencing growth, particularly in consumer electronics, with increasing demand for sapphire materials in smartwatches and other devices[45]. - The company is actively seeking to improve its governance structure and has implemented measures to enhance team performance and cultural development[43]. - The company plans to continue developing new sapphire crystal growth equipment to improve automation and overall performance[46]. - The company is focusing on reducing production costs by locating crystal growth enterprises in regions with lower electricity costs[84]. - The company is actively investing in the development of new materials and technologies related to sapphire and semiconductor substrates[82]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 100 million allocated for this purpose[126]. Financial Health and Risks - The company’s net assets at the end of 2021 were negative, which will lead to a risk warning for delisting under the Shanghai Stock Exchange rules[12]. - The company faces potential bankruptcy liquidation risks if creditors file for auction or reorganization in court[16]. - The company has a significant inventory balance of 494 million yuan, with a provision for inventory depreciation at 35.92% of the inventory book value[95]. - The company is actively seeking new financing channels to alleviate debt risks and ensure stable business operations[89]. - The company is monitoring raw material and electricity price fluctuations, which significantly affect production costs[93]. - The company is facing risks from intensified market competition in the sapphire materials sector, with potential impacts on market share[92]. Employee and Management - The company has a total of 1,215 employees, with 879 in production, 15 in sales, 160 in technical roles, 44 in finance, and 117 in administration[144]. - The company emphasizes training programs to enhance employees' professional skills and overall quality[147]. - The company is committed to talent development, focusing on improving the quality and capabilities of its technical and management teams[88]. - The total remuneration paid for outsourced labor during the reporting period amounted to CNY 1,398,594.40[148]. - The company has established a differentiated assessment mechanism for its remuneration system, aligning it with long-term development goals[145]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to grow by 10% to 1.32 billion[125]. - New product launches are anticipated to contribute an additional 200 million in revenue over the next fiscal year[126]. - The company plans to distribute dividends primarily in cash, with a minimum of 10% of the distributable profit for the year, and aims for cumulative cash distributions over the last three years to be at least 30% of the average annual distributable profit[176]. - The company is committed to maintaining operational stability during the transition period of the board of supervisors[121].

Financial Performance - The company's operating revenue for Q3 2021 was ¥145,883,642.15, representing a decrease of 13.6% compared to the same period last year[5] - The net profit attributable to shareholders was -¥65,217,851.92, with a year-to-date net profit of -¥158,332,658.06[5] - The basic and diluted earnings per share for the period were both -¥0.0531[6] - Total operating revenue for the first three quarters of 2021 reached ¥452,559,381.55, an increase of 27% compared to ¥356,588,766.08 in the same period of 2020[18] - Net loss for the third quarter of 2021 was ¥158,350,861.99, compared to a net loss of ¥166,820,818.45 in the same quarter of 2020, indicating an improvement of about 5%[19] - The total comprehensive loss for the third quarter of 2021 was ¥158,350,861.99, compared to a loss of ¥166,820,818.45 in the same quarter of 2020, showing a reduction of about 5%[20] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,875,019,948.60, a decrease of 2.61% from the end of the previous year[6] - Total assets as of September 30, 2021, amounted to CNY 2,875,019,948.60, a decrease from CNY 2,952,180,363.25 at the end of 2020[15] - Current assets totaled CNY 1,061,993,579.48, down from CNY 1,098,245,090.29 in the previous year[16] - Non-current assets totaled CNY 1,813,026,369.12, a decrease from CNY 1,853,935,272.96[16] - The total liabilities as of the end of the third quarter of 2021 amounted to ¥2,839,507,843.37, a slight decrease from ¥2,873,214,340.92 at the end of 2020[18] Equity - The equity attributable to shareholders decreased by 76.39% year-to-date, amounting to ¥13,422,492.93[6] - The company's total equity attributable to shareholders was ¥35,512,105.23, down from ¥78,966,022.33 in the previous year, reflecting a decline of approximately 55%[18] - The decline in equity was primarily due to losses incurred in the first three quarters of the year[10] Cash Flow - The cash flow from operating activities for the year-to-date was ¥29,357,158.15[6] - The company's cash flow from operating activities for the first three quarters of 2021 was ¥368,079,902.83, significantly higher than ¥210,543,281.56 in 2020, representing a growth of approximately 75%[22] - The net cash flow from operating activities was $29,357,158.15, a significant improvement compared to a net outflow of $47,786,431.16 in the previous period[23] - Total cash inflow from operating activities amounted to $441,154,663.52, while cash outflow was $411,797,505.37, resulting in a positive net cash flow[23] - Cash received from tax refunds was $922,598.95, contributing to the overall cash inflow from operating activities[23] Shareholder Information - The company reported a total of 41,553 common shareholders at the end of the reporting period[12] - The top shareholder, Zuo Hongbo, holds 18.93% of shares, with 93,471,715 shares frozen[12] Research and Development - Research and development expenses for the first three quarters of 2021 were ¥23,516,432.66, a decrease of about 50% compared to ¥46,905,461.11 in the same period of 2020[18] - The company has not disclosed any new product developments or market expansion strategies in this report[14] Operational Costs - Total operating costs for the first three quarters of 2021 were ¥610,553,645.87, up from ¥551,169,269.02 in 2020, reflecting a rise of approximately 11%[18] - The company spent $144,744,257.62 on purchasing goods and services, reflecting operational expenditures[23] Interest and Financing - The company reported a decrease in interest expenses from ¥97,686,261.47 in 2020 to ¥84,073,373.13 in 2021, indicating a reduction of approximately 14%[19] - Cash inflow from financing activities was $127,000,000.00, primarily from borrowings, while cash outflow totaled $32,825,369.38, leading to a net cash outflow from financing activities[24] - The company paid $30,245,298.92 in dividends and interest during the financing activities[24]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 306,675,739.40, representing a 63.35% increase compared to CNY 187,739,601.09 in the same period last year [24]. - The net profit attributable to shareholders was a loss of CNY 93,114,806.14, an improvement of CNY 2,627,604.80 compared to a loss of CNY 95,742,410.94 in the previous year [25]. - The net cash flow from operating activities increased by CNY 49,784,722.03, compared to a negative cash flow of CNY 52,348,862.50 in the same period last year [24]. - The company's net assets attributable to shareholders increased by 38.31% to CNY 78,640,344.85 from CNY 56,858,206.10 at the end of the previous year [24]. - The total assets decreased by 1.65% to CNY 2,903,352,138.07 from CNY 2,952,180,363.25 at the end of the previous year [24]. - The basic earnings per share for the first half of 2021 was -CNY 0.0759, slightly improved from -CNY 0.08 in the same period last year [24]. - The weighted average return on net assets was -903.96%, a significant decline from -13.80% in the previous year [24]. - The company reported a significant increase in prepayments, which rose to RMB 31,463,319.23 from RMB 21,172,872.87, an increase of approximately 48.66% [123]. - The total cash flow from operating activities for the first half of 2021 was 49,784,722.03 RMB [165]. Research and Development - The company has not disclosed any new product or technology developments in the report [17]. - The company reported a decrease in research and development expenses, contributing to the improved financial performance [25]. - Research and development expenses for the first half of 2021 were CNY 15,298,087.45, down from CNY 29,230,944.01 in the same period last year, indicating a reduction of approximately 47.7% [132]. - The company is actively involved in the development of sapphire crystal growth equipment and precision processing equipment, indicating ongoing innovation and market expansion efforts [31]. - The company plans to focus on R&D efforts to advance equipment and product upgrades, aiming for high-quality development [45]. Legal and Compliance Issues - The company is currently involved in litigation, with some accounts and assets frozen, and is actively seeking to reach a settlement with creditors [9]. - There is a risk of change in actual control due to the controlling shareholders' pledged shares reaching the liquidation line and being subject to judicial freezing [10]. - The company faces potential bankruptcy liquidation risks if creditors apply for auction or reorganization, although current operations are not affected [11]. - The company has signed external guarantee contracts without following normal approval procedures, involving a total guarantee principal of RMB 250 million [8]. - The company has been involved in significant litigation matters, including disputes related to loan contracts and guarantees [95]. - The company has received a total of 310 civil lawsuits from investors regarding false securities statements, with a total claim amount of RMB 71,297,649.68 [96]. - The company is facing risks of asset freezes due to debt disputes, but the frozen assets do not significantly impact its operations [66]. - The company has accrued interest on debts, totaling 12.93 million CNY in 2019, 7.85 million CNY in 2020, and 3.88 million CNY in the first half of 2021 [65]. Shareholder and Equity Information - The company reported a total of 145,434,697 shares issued, with a lock-up period of 36 months for certain shareholders [84]. - The company’s major shareholder, Zuo Hongbo, holds 232,271,715 shares, representing 18.925% of the total share capital, all of which are under a freeze [101]. - The company’s other major shareholder, Chu Shuxia, holds 157,483,093 shares, representing 12.831% of the total share capital, also fully frozen [102]. - The total number of ordinary shareholders at the end of the reporting period was 42,702 [112]. - The company has not reported any changes in the control of major shareholders or actual controllers during the reporting period [118]. Operational Challenges - The company is facing risks from macroeconomic fluctuations and the ongoing impact of the COVID-19 pandemic, which could affect production and market promotion [58]. - There is an increasing competition in the sapphire material market, with some competitors planning to expand production, which may lead to a decline in market share for the company [59]. - The company plans to enhance its internal management and cost control to mitigate the impact of uncontrollable risks [58]. - The company is actively negotiating with creditors to resolve overdue loans, including a loan of 240 million CNY from Bank of Communications that has been overdue since October 12, 2018 [63]. Cash Flow and Financial Management - Cash and cash equivalents decreased by 33.33% to CNY 34,980,030.45, attributed to the payment of due bills [50]. - The company reported a cash inflow from financing activities of 127,000,000.00 RMB in the first half of 2021, with cash outflows totaling 31,325,369.38 RMB [139]. - The company’s management is focused on improving cash flow management and operational efficiency moving forward [142]. - The company has implemented measures to strengthen accounts receivable management and reduce the risk of bad debts [62]. Market and Product Development - The main business focus remains on the research, production, and sales of sapphire crystal materials and products, with significant growth in sapphire product sales [31]. - The LED industry is recovering, with a forecast of over 70 million MiniLED backlight products expected to be shipped by 2025, indicating a strong growth potential for sapphire as a mainstream substrate material [34]. - The market for high-quality 3D automotive glass is expanding, driven by the increasing integration of new technologies in vehicles [36]. - The company aims to expand its market presence by developing potential customers and new application areas [60]. Corporate Governance and Management - The company has experienced changes in its board, with several directors and supervisors resigning and new members being elected [75]. - The company has committed to continuous innovation and improvement of core technologies, maintaining a leading position in the industry [38]. - The company has achieved various quality management certifications, including ISO9001 and IATF16949, enhancing its competitive advantage in product quality [40]. - The company is committed to maintaining communication with creditors to resolve asset freezes affecting shareholder compensation [83].

Financial Performance - Operating revenue increased by 84.38% to CNY 138,861,723.25 compared to the same period last year[7] - Net profit attributable to shareholders was a loss of CNY 48,509,224.40, compared to a loss of CNY 20,315,419.97 in the same period last year[7] - Basic and diluted earnings per share were both CNY -0.04, compared to CNY -0.02 in the same period last year[7] - The weighted average return on net assets was -148.78%, a significant decline from -2.78% in the same period last year[7] - Total operating revenue for Q1 2021 reached ¥138.86 million, a significant increase of 84.5% compared to ¥75.31 million in Q1 2020[37] - The net loss for Q1 2021 was ¥49.15 million, compared to a net loss of ¥20.69 million in Q1 2020, indicating a deterioration in financial performance[38] - The company reported a total profit loss for Q1 2021 of ¥49.29 million, compared to a loss of ¥17.50 million in Q1 2020, indicating a worsening financial situation[37] Assets and Liabilities - Total assets decreased by 1.93% to CNY 2,895,061,853.15 compared to the end of the previous year[7] - The total liabilities decreased from CNY 2,873,214,340.92 to CNY 2,865,246,507.42, indicating a reduction of about 0.3%[31] - The owner's equity decreased from CNY 78,966,022.33 to CNY 29,815,345.73, representing a significant decline of approximately 62.2%[31] - The total current assets increased from CNY 1,085,525.26 to CNY 1,764,826.17, marking an increase of approximately 62.5%[33] - The non-current assets totaled CNY 1,824,097,723.72, down from CNY 1,853,935,272.96, reflecting a decrease of approximately 1.6%[30] Cash Flow - Net cash flow from operating activities was CNY 23,270,940.18, a significant improvement from a negative cash flow of CNY 45,991,657.96 in the same period last year[7] - Cash inflows from operating activities totaled ¥148.41 million in Q1 2021, a decrease from ¥270.09 million in Q1 2020[43] - The total cash and cash equivalents at the end of Q1 2021 were ¥11,323,874.17, down from ¥24,700,750.50 at the end of Q1 2020, indicating a decrease of approximately 54% year-over-year[45] - The company’s cash and cash equivalents decreased by ¥2,623,521.85 in Q1 2021, compared to a decrease of ¥47,216,157.45 in Q1 2020, indicating a reduced cash burn rate[45] Shareholder Information - The total number of shareholders at the end of the reporting period was 42,999[12] - The largest shareholder, Zuo Hongbo, held 18.93% of the shares, with 232,271,715 shares, of which 93,471,715 shares were frozen[12] Government and Legal Issues - The company received government subsidies amounting to CNY 4,901,700.09 during the reporting period[7] - The company received a notice from the China Securities Regulatory Commission regarding a potential violation of securities laws, leading to an investigation[21] - The actual controller's shares have been judicially frozen due to debt disputes, posing a risk of change in actual control[22] - The company faces litigation risks, with some accounts and assets frozen, potentially leading to bankruptcy or liquidation risks if creditors pursue legal action[20] Operational Costs and Expenses - Operating costs rose by ¥62,388,650.78, reflecting a 98.52% increase, attributed to the rise in operating revenue[15] - Sales expenses surged by ¥3,650,380.79, marking a 182.99% increase due to increased market expansion and product promotion efforts[15] - Research and development expenses decreased by ¥5,739,733.10, a reduction of 43.59%, as the company cut back on certain R&D projects for cost-effectiveness[15] Debt and Performance Commitments - The company has recognized a total of ¥250,000,000.00 in unauthorized guarantees, which were issued without board approval[18] - The company is required to compensate for unfulfilled performance commitments totaling 40,277.21 million shares due to unmet profit targets[25] - The performance commitment from the actual controllers includes a cumulative net profit of no less than RMB 69,229.58 million for 2015 and 2016, which has not been fulfilled[23] - The company plans to continue pursuing repayment from the controlling shareholder to resolve the non-operating fund occupation issue and protect investor interests[17]