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]

Financial Performance - The company reported a net loss of CNY 684,343,494.57 for the year 2020, with a negative cash flow from operating activities of CNY 36,630,657.85[4]. - Due to the net loss of CNY 685 million, the company will not implement any profit distribution or capital reserve transfer to share capital for the year[5]. - The company's operating revenue for 2020 was approximately RMB 519.56 million, a decrease of 28.81% compared to RMB 729.80 million in 2019[25]. - The net profit attributable to shareholders of the listed company was approximately RMB -684.92 million, a significant decline from RMB 67.14 million in the previous year[25]. - The basic earnings per share for 2020 was -0.56 yuan, down 1,220% from 0.05 yuan in 2019[26]. - The total assets at the end of 2020 were approximately RMB 2.95 billion, a decrease of 19.93% from RMB 3.69 billion at the end of 2019[25]. - The weighted average return on net assets was -171.52% for 2020, a decrease of 180.73 percentage points from 9.21% in 2019[26]. - The company's net assets attributable to shareholders decreased by 92.33% to approximately RMB 56.86 million at the end of 2020 from RMB 741.77 million at the end of 2019[25]. - The net profit attributable to shareholders decreased by RMB 752.06 million year-on-year, primarily due to a decline in sales revenue of high-margin equipment products and increased financial expenses[28]. - The net cash flow from operating activities decreased by RMB 258.16 million year-on-year, mainly due to a decline in operating revenue[28]. Legal and Financial Risks - The company is facing significant uncertainties regarding its ability to continue as a going concern due to cash shortages and ongoing legal disputes, which have led to the freezing of multiple assets and bank accounts[4]. - There are ongoing litigation risks, with some accounts and assets already frozen, and the company is actively seeking to negotiate settlements with creditors[10]. - The controlling shareholders' pledged shares have reached the liquidation line, and their shares are subject to judicial freezing, posing a risk of change in actual control of the company[11]. - The company may face bankruptcy liquidation risks if creditors apply for auction, reorganization, or bankruptcy proceedings, although current operations are not affected[12]. - The company is actively negotiating with creditors to resolve asset freezes affecting bank accounts, properties, and subsidiary equity, which have not significantly impacted operations[107]. - The company has outstanding debts totaling RMB 42.90 million from Hangzhou Zunyan, with interest accrued of RMB 12.93 million in 2019 and RMB 7.85 million in 2020[106]. - The company is facing litigation risks, including potential investor lawsuits due to administrative penalties from the China Securities Regulatory Commission[108]. - The company has provided guarantees for loans totaling RMB 100 million and is involved in multiple lawsuits related to these debts[106]. - The company has a risk of bankruptcy liquidation if creditors file for auction or restructuring, although current frozen assets do not affect daily operations[110]. Operational Challenges - The company has experienced a significant decline in cash flow from operations, indicating potential liquidity challenges moving forward[32]. - The overall operating income decreased due to a slowdown in demand for processing equipment from downstream customers, despite an increase in sales of large-sized automotive bending equipment[59]. - The company has a high inventory value of 559 million yuan, which could lead to potential write-downs if market conditions worsen[105]. - The company reported accounts receivable of 424 million yuan, which is relatively high compared to total assets, posing a risk of bad debts if not collected[104]. Market and Product Development - The company plans to focus on the development of new technologies and products to enhance market competitiveness[26]. - The company is exploring market expansion opportunities and potential mergers and acquisitions to strengthen its market position[26]. - The demand for sapphire materials in consumer electronics, particularly for smartwatches, saw substantial growth, with sales volume and revenue for sapphire windows in consumer electronics significantly increasing year-on-year[41]. - The sapphire industry is expected to benefit from a recovery in demand as the pandemic is controlled, with significant growth potential in emerging applications like MicroLED and MiniLED[41]. - The company is committed to developing integrated production line solutions to meet the upcoming demands for equipment automation and intelligence[43]. Research and Development - Research and development expenses increased year-on-year, contributing to the overall financial strain[28]. - The company has focused on technological innovation, resulting in a robust patent portfolio that supports product quality improvement and cost reduction[46]. - The company has invested in the automation and intelligence of its 3D bending equipment, achieving significant improvements in production efficiency and material yield[51]. - The company has established partnerships with two major universities to foster innovation and technology transfer[175]. Shareholder and Governance Issues - The company has not proposed any cash dividend distribution plans for the past three years, reflecting ongoing financial challenges[112]. - The shareholders collectively hold 145,434,697 shares, including newly issued and transferred shares from Taiji Group[115]. - The company guarantees the independence of its assets, operations, and financials, ensuring no harm to the legal rights of shareholders[118]. - The company will actively communicate with shareholders, especially minority shareholders, regarding dividend distribution plans and address their concerns promptly[119]. - The company has committed to reducing and regulating related party transactions with its controlling shareholders and affiliates[118]. Compliance and Regulatory Matters - The company has received administrative penalties from the China Securities Regulatory Commission for false disclosures in multiple financial reports, resulting in fines and a 10-year market ban for a key individual[138][139]. - The company is currently involved in significant litigation, including a lawsuit related to a trust investment agreement that has reached the execution stage[128]. - The company has implemented strict pandemic prevention measures during the COVID-19 outbreak, ensuring production continuity while adhering to government regulations[149]. - The company emphasizes transparency and investor communication through various platforms, enhancing trust and governance structure[150]. Employee and Management Structure - The company employed a total of 1,432 staff, with 1,022 in production, 26 in sales, 189 in technology, 53 in finance, and 142 in administration[184]. - The company has implemented a salary system for its directors and senior management based on industry standards and individual performance assessments[178]. - The total amount paid for labor outsourcing during the reporting period was 5,299,379 yuan[187]. - The company has a total of 4 employees in the parent company, indicating a lean management structure[184].

Financial Performance - Operating revenue for the first nine months was CNY 356,588,766.08, a decrease of 41.51% year-on-year[7] - Net profit attributable to shareholders was negative CNY 167,002,917.52, compared to a loss of CNY 26,065,036.26 in the same period last year[7] - Basic and diluted earnings per share were both negative CNY 0.1361[8] - The weighted average return on net assets decreased by 21.43 percentage points to -25.37%[7] - The company reported a net loss of CNY 1.05 billion as of September 30, 2020, compared to a net loss of CNY 884.71 million at the end of 2019[33] - Total operating revenue for Q3 2020 was ¥168,849,164.99, an increase of 11.8% compared to ¥150,873,812.52 in Q3 2019[38] - Net loss for Q3 2020 was ¥71,029,930.02, compared to a net profit of ¥13,384,574.82 in Q3 2019, reflecting a decline in profitability[39] - The company reported a total profit loss of ¥69,673,096.01 for Q3 2020, compared to a loss of ¥41,952,376.47 in Q3 2019[39] - The total comprehensive loss for Q3 2020 was ¥71,029,930.02, compared to a comprehensive income of ¥13,384,574.82 in Q3 2019[40] Cash Flow and Assets - Net cash flow from operating activities was negative CNY 47,786,431.16, a decrease of 153.77% compared to the same period last year[7] - The company's cash and cash equivalents decreased by 58.58%, from RMB 126,313,064.67 at the end of 2019 to RMB 52,317,701.96 as of September 30, 2020[15] - The company's current assets decreased from CNY 1.49 billion at the end of 2019 to CNY 1.27 billion as of September 30, 2020[31] - The company's cash and cash equivalents decreased from CNY 126.31 million at the end of 2019 to CNY 52.32 million as of September 30, 2020[31] - The total cash and cash equivalents at the end of the third quarter of 2020 was 4,647,114.08 yuan, down from 16,574,350.00 yuan at the end of the same period in 2019[50] Shareholder Information - The total number of shareholders at the end of the reporting period was 47,841[12] - The largest shareholder, Zuo Hongbo, held 232,271,715 shares, accounting for 18.93% of the total shares, with shares frozen[12] Liabilities and Financial Obligations - The company’s total liabilities decreased by 43.18% for current liabilities due to the repayment of short-term bank loans[15] - The company faces a total of RMB 250 million in unauthorized guarantees, with a specific guarantee amount of RMB 150 million related to Zhejiang Guodu Holdings[19] - The company is involved in litigation with a court ruling requiring payment of RMB 42.90 million in principal and interest from Hangzhou Zunyan[20] - The company has a risk of bankruptcy liquidation due to ongoing lawsuits and judicial freezes on some accounts and assets[22] - The actual controller's shares are at risk of forced liquidation due to debt disputes, which may lead to a change in control[25] Government Support and Subsidies - The company received government subsidies amounting to CNY 14,699,060.62 for the year-to-date[9] Research and Development - Research and development expenses for Q3 2020 were ¥17,674,517.10, up from ¥5,257,633.42 in Q3 2019, showing a 235% increase in investment in innovation[38] - The company incurred research and development expenses of RMB 7,008,067.67 in the first three quarters of 2020, compared to a negative R&D expense of RMB -81,368,951.82 in the same period of 2019[44] Compliance and Legal Issues - The company has faced administrative penalties from the China Securities Regulatory Commission, including a warning and fines[17] - The company is under investigation for potential violations of securities laws, which may lead to further legal and financial repercussions[17] Performance Commitments - The company has committed to achieving a cumulative net profit of no less than RMB 692.30 million from 2015 to 2017, with specific performance compensation obligations[26] - The performance commitment parties are required to compensate a total of 402.77 million shares due to unmet performance commitments and asset impairment[27] - The company has sent formal notifications to performance commitment parties regarding their asset impairment compensation obligations[28] - The company will continue to urge performance commitment parties to fulfill their compensation obligations and disclose relevant progress[28]

Financial Performance - The company's operating revenue for the first half of the year was ¥187,739,601.09, a decrease of 59.07% compared to ¥458,735,739.24 in the same period last year [26]. - The net profit attributable to shareholders was -¥95,742,410.94, compared to -¥39,597,092.90 in the previous year, indicating a significant decline [26]. - The net cash flow from operating activities was -¥52,348,862.50, a decrease of 201.25% from ¥51,700,630.12 in the same period last year [26]. - The total assets decreased by 4.46% to ¥3,522,515,462.17 from ¥3,686,840,474.99 at the end of the previous year [26]. - The net assets attributable to shareholders decreased by 12.64% to ¥647,994,177.74 from ¥741,774,037.65 at the end of the previous year [26]. - The basic earnings per share were -¥0.0800, down from -¥0.0323 in the same period last year [27]. - The weighted average return on net assets decreased by 7.75 percentage points to -13.80% from -6.05% in the previous year [27]. - The company reported a net loss of ¥95,790,888.43 for the first half of 2020, compared to a net loss of ¥39,466,205.28 in the first half of 2019, indicating an increase in losses [135]. - The total comprehensive income for the first half of 2020 was CNY -7,363,356.03, compared to CNY -45,774,643.96 in the same period of 2019, indicating a significant improvement [139]. Operational Challenges - The company faces litigation risks, including judicial freezes on some accounts and assets, which may impact its operations [10]. - 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 freezes [11]. - The company may face bankruptcy liquidation risks if creditors apply for auction or bankruptcy proceedings [12]. - The company experienced a significant decline in sales of sapphire products and hard brittle material processing equipment due to the impact of the pandemic [28]. - The company's overall operating revenue declined due to a slowdown in customer demand for hard and brittle material processing equipment, resulting in sales not meeting expectations [39]. - The company is facing intense competition in the sapphire market, particularly in the LED lighting sector, which may affect profitability [67]. - The company has a total of 226,249,130.40 RMB in accounts receivable that are currently frozen by the court [59]. - The company is actively negotiating with creditors regarding overdue loans totaling approximately 627.639 million yuan, with various loans having been overdue since 2017 [72]. Strategic Initiatives - The company continues to focus on R&D, enhancing the automation of large-size bending equipment, and is transitioning towards intelligent design innovations [42]. - The company has developed multiple automatic detection devices, with several prototypes completed and currently in the testing phase, indicating a shift towards intelligent manufacturing [42]. - The company has made significant progress in developing new automatic detection equipment and improving 3D bending equipment, enhancing automation and intelligence levels [49]. - The company has strengthened its sales team and improved marketing strategies, including setting up offices in southern China to respond quickly to customer needs [52]. - The company has continuously invested in R&D, collaborating with well-known domestic universities and research institutions to shorten product development cycles and ensure technological leadership [45]. - The company plans to enhance customer development and explore new application areas to mitigate market competition risks in the sapphire industry [68]. - The company aims to improve production efficiency and product yield through technological upgrades to counteract raw material price fluctuations [69]. Financial Management - The company has implemented measures to strengthen accounts receivable management and increase collection efforts to reduce bad debt risks [70]. - The company is focusing on improving its financial health by managing its cash flow and equity structure [146]. - The company has recognized an inventory impairment provision of 17.59% of the inventory book balance as of June 30, 2020, in response to the declining market prices [72]. - The company has reported a significant increase in credit impairment losses, amounting to ¥20,631,234.37, compared to ¥19,384,214.95 in the previous year [135]. - The company has incurred interest expenses of 12.933 million yuan in 2019 and an additional 3.903 million yuan in the first half of 2020 related to outstanding debts [74]. Shareholder and Governance Issues - The company reported a non-audited half-year profit distribution plan with no proposed capital reserve increase [4]. - The company has not proposed any profit distribution or capital reserve increase plans for the first half of 2020 [82]. - The shareholders are subject to a lock-up period of 36 months for their shares following the issuance [84]. - The company will ensure that any related party transactions follow market principles and are conducted at fair market prices [86]. - The company has committed to maintaining the independence of its assets, operations, and finances to avoid conflicts of interest [86]. - The company is under investigation by the China Securities Regulatory Commission for alleged violations of securities laws, with administrative penalties and market bans issued as of July 2020 [90]. - The controlling shareholder and actual controller have been listed as dishonest executors due to failure to fulfill financial obligations [100]. Market Outlook - The demand for sapphire materials in consumer electronics, particularly in smart wearable products, has been increasing, driving further growth in the sapphire industry [41]. - The market for LED lighting is expected to stabilize as the pandemic subsides, with a gradual recovery in traditional LED lighting applications [41]. - The company anticipates a rising demand for 3D automotive glass, indicating potential market expansion opportunities [68]. - The company is positioned to benefit from national policies supporting high-end equipment manufacturing and new materials industries, which are expected to provide significant market opportunities [39]. Legal and Compliance Issues - The company is involved in multiple civil lawsuits related to payment disputes, with claims totaling approximately 4.5 million yuan across various cases [104]. - The company has multiple ongoing civil lawsuits related to payment disputes, with amounts claimed including RMB 594,508, RMB 191,805, and RMB 354,080, among others [94]. - The company has a pending civil lawsuit with a claim of 3,824,620 for unpaid goods, currently under second instance review [96]. - The company has received a warning and a fine from the China Securities Regulatory Commission due to violations of securities laws, with a market ban imposed on a key individual for 10 years [99].

Financial Performance - The company reported a non-audited half-year financial report for the period from January 1, 2020, to June 30, 2020[4]. - The company's operating revenue for the first half of the year was ¥187,739,601.09, a decrease of 59.07% compared to ¥458,735,739.24 in the same period last year[26]. - The net profit attributable to shareholders was -¥95,742,410.94, compared to -¥39,597,092.90 in the previous year, indicating a significant decline[26]. - The net cash flow from operating activities was -¥52,348,862.50, a decrease of 201.25% from ¥51,700,630.12 in the same period last year[26]. - The company's total assets decreased by 4.46%, from ¥3,686,840,474.99 to ¥3,522,515,462.17[26]. - The net assets attributable to shareholders decreased by 12.64%, from ¥741,774,037.65 to ¥647,994,177.74[26]. - The basic earnings per share were -¥0.0800, down from -¥0.0323 in the previous year[27]. - The weighted average return on net assets decreased by 7.75 percentage points, from -6.05% to -13.80%[27]. - The company reported a net loss of ¥980,449,627.93, compared to a loss of ¥884,707,216.99 in the previous period[121]. - The total revenue for the first half of 2020 was 757,921,224 RMB, compared to 790,231,246 RMB in the same period of 2019, representing a decrease of approximately 4.1%[145]. Operational Challenges - The company faces litigation risks, with some accounts and assets currently frozen by judicial authorities[10]. - There is a risk of change in actual control due to the controlling shareholder's pledged shares reaching the liquidation line and being subject to judicial freezing[11]. - The company may face bankruptcy liquidation risks if creditors apply for auction or bankruptcy reorganization[12]. - The decline in revenue was attributed to the impact of the pandemic, which affected the company's operating rate and sales of sapphire products[28]. - The overall operating revenue of the company declined due to a slowdown in customer demand for hard and brittle material processing equipment, resulting in sales not meeting expectations[38]. - The company's cash flow from operating activities decreased, leading to a 43.44% year-on-year decline in cash and cash equivalents, amounting to a decrease of ¥54,864,169.55[42]. - The company has faced judicial freezes on certain bank accounts, properties, and subsidiary equity due to debt disputes, but these do not significantly impact production operations[74]. - The company is at risk of bankruptcy liquidation if creditors file for auction or restructuring, although current frozen equity does not affect daily operations[78]. Legal and Regulatory Issues - The company has been subject to administrative penalties from the China Securities Regulatory Commission, which may lead to investor litigation risks[9]. - The company is under investigation by the China Securities Regulatory Commission for alleged violations of securities laws, which may impact its financial reporting[88]. - The company has ongoing litigation related to loan agreements, with a total claim amount of approximately RMB 1,204,000 in one case and RMB 700,000 in another[90]. - A civil lawsuit has been filed against the company for a claim of RMB 3,000,000 regarding product quality and after-sales service issues[93]. - The company has multiple lawsuits related to loan agreements and product quality, indicating potential financial implications[90]. Research and Development - The company continues to focus on the research, production, and sales of sapphire crystal materials and related equipment[34]. - The company has made substantial progress in R&D, successfully developing multiple automatic detection devices, with several prototypes completed and in the testing phase[41]. - The company has increased its investment in R&D, collaborating with well-known universities and research institutions to shorten product development cycles and ensure technological leadership[44]. - The company is involved in the research and development of various electronic products, including touch screens and display technologies[62]. - The company is focusing on technological innovation and product upgrades, continuously enhancing core technical capabilities and accelerating the transformation of R&D results[50]. Financial Management and Strategy - The company has not proposed any profit distribution or capital reserve transfer to increase share capital during the reporting period[5]. - The company emphasizes the importance of investors being aware of investment risks and encourages careful reading of announcements[12]. - The company has implemented comprehensive management system optimizations to reduce operational risks and enhance management efficiency[51]. - The company plans to enhance customer development and explore new application areas to mitigate market competition risks in the sapphire industry[68]. - The company intends to address debt issues through negotiations with local governments and creditors, as well as seeking support from financial institutions[166]. Shareholder and Equity Information - The controlling shareholder has a non-operating fund occupation balance of RMB 585.07 million as of the end of the reporting period[6]. - The company has committed to ensuring the independence of its operations, assets, and finances, maintaining a clear separation from its controlling entities[86]. - The shareholders are subject to a lock-up period of 36 months for newly issued shares, which will be extended if compensation obligations are not fulfilled[84]. - The company plans to distribute dividends in cash, with a minimum of 10% of the distributable profit for the year, and aims for a cumulative cash distribution of at least 30% of the average annual distributable profit over the last three years[86]. - The company has a total of 93,471,715 shares held by Zuo Hongbo, which are subject to lock-up conditions until May 9, 2021[111]. Market and Industry Trends - The demand for sapphire materials in consumer electronics, particularly in smart wearable products, has been increasing, driving further growth in the sapphire industry[40]. - The market for automation and CNC equipment manufacturing continues to grow, supported by national policies and industry revitalization efforts[41]. - The company has adjusted its sapphire product structure to maximize output efficiency, increasing the proportion of revenue from consumer electronics sapphire products significantly[50]. - The company has established a complete production chain for sapphire products, ensuring timely supply and competitive manufacturing costs, with sapphire crystal, rod, and chip output capacity ranking among the industry leaders[45]. - The company plans to enhance development momentum by focusing on customer needs and improving product quality to ensure stable growth[166].