[Key Financial Highlights](index=1&type=section&id=%E4%B8%80%E3%80%81%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) This section provides an overview of the company's core financial performance and key indicators for the reporting period [Key Accounting Data and Financial Indicators](index=1&type=section&id=(%E4%B8%80)%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In Q1 2022, the company's operating revenue grew by 12.35% year-on-year, but net profit attributable to parent company shareholders decreased by 36.18%, with net cash flow from operating activities at -551.38 million RMB, a significant outflow of 163.03% year-on-year, indicating pressure on profitability and cash flow Key Financial Indicators for Q1 2022 | Indicator | Current Period (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 1,404,607,863.54 | 12.35% | | Net Profit Attributable to Shareholders | 53,920,500.45 | -36.18% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 49,160,037.66 | 12.85% | | Net Cash Flow from Operating Activities | -551,378,112.42 | -163.03% | | Basic Earnings Per Share (RMB/share) | 0.14 | -36.36% | | Weighted Average Return on Net Assets | 1.67% | Decreased by 1.16 percentage points | | Total Assets (Period-end) | 8,073,607,286.59 | -2.86% (vs. end of prior year) | | Total Owner's Equity Attributable to Shareholders (Period-end) | 3,247,573,423.88 | 1.50% (vs. end of prior year) | [Analysis of Non-Recurring Gains and Losses](index=2&type=section&id=(%E4%BA%8C)%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Total non-recurring gains and losses amounted to 4.76 million RMB in this reporting period, primarily from government subsidies, which had a positive impact on current net profit Non-Recurring Gains and Losses for Q1 2022 | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 39,997.36 | | Government Subsidies Recognized in Current Profit/Loss | 9,973,715.31 | | Other Non-operating Income and Expenses | -3,704,448.45 | | Less: Income Tax Impact | 563,984.47 | | Less: Impact on Minority Interests (After Tax) | 984,816.96 | | **Total** | **4,760,462.79** | [Analysis of Changes in Key Financial Indicators](index=2&type=section&id=(%E4%B8%89)%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E3%80%81%E5%8E%9F%E5%9B%A0) Multiple financial indicators showed significant changes during the reporting period, with administrative and financial expenses increasing by 43.65% and 74.11% respectively due to higher salaries, amortization, and increased borrowing, while net cash flow from operating activities sharply declined by 163.03% mainly due to increased payments for purchases and salaries Changes in Key Financial Indicators and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Administrative Expenses | 43.65 | Due to increased salaries, training, and amortization expenses in the current period | | Financial Expenses | 74.11 | Due to increased borrowing and interest expenses in the current period | | Investment Income | -101.96 | Due to recognition of gain from disposal of Shengxi Huashi equity in the prior period | | Net Cash Flow from Operating Activities | -163.03 | Due to increased payments for purchases and salaries in the current period | | Net Cash Flow from Investing Activities | -173.33 | Due to recovery of equity instrument investments in the prior period | | Net Cash Flow from Financing Activities | 178.17 | Due to increased borrowing in the current period | [Shareholder Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) This section details the company's shareholder structure and significant shareholdings as of the reporting period end [Shareholding Status of Shareholders](index=3&type=section&id=(%E4%B8%80)%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the end of the reporting period, the company had 9,938 common shareholders, with Zhejiang Huayi Intelligent Manufacturing Co., Ltd. and Shaoxing Yuecheng Huahan Equity Investment Partnership (Limited Partnership) being the top two shareholders, holding 21.89% and 9.50% respectively, and forming a concerted action with shareholder Chen Ayun - As of the end of the reporting period, the company had **9,938** common shareholders[13](index=13&type=chunk) Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholding Percentage (%) | Number of Shares Held | | :--- | :--- | :--- | | Zhejiang Huayi Intelligent Manufacturing Co., Ltd. | 21.89 | 84,799,659 | | Shaoxing Yuecheng Huahan Equity Investment Partnership (Limited Partnership) | 9.50 | 36,807,950 | | Hong Kong Securities Clearing Company Limited | 6.47 | 25,053,352 | | Zhou Weicheng | 3.43 | 13,300,705 | | Shen Dongliang | 1.30 | 5,025,000 | | Chen Ayun | 1.09 | 4,228,125 | | New China Life Insurance Co., Ltd. - Dividend - Individual Dividend - 018L - FH002 Shanghai | 1.06 | 4,110,390 | | China Merchants Bank Co., Ltd. - ICBC Credit Suisse New Financial Stock Investment Fund | 1.03 | 3,999,984 | | Hangzhou Jintou Qianjing Investment Management Co., Ltd. - Qianjing Bole No. 1 Private Securities Investment Fund | 0.98 | 3,790,000 | | National Social Security Fund Council 413 Portfolio | 0.94 | 3,656,552 | - Shareholders Zhejiang Huayi Intelligent Manufacturing Co., Ltd., Shaoxing Yuecheng Huahan Equity Investment Partnership (Limited Partnership), and Chen Ayun are **parties acting in concert**[16](index=16&type=chunk) [Quarterly Financial Statements](index=4&type=section&id=%E5%9B%9B%E3%80%81%20%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated financial statements for the quarter, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=4&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2022, total assets were 8.07 billion RMB, a 2.86% decrease from the end of the previous year, reflecting reduced cash, increased inventories and receivables financing, and on the liability side, a significant decrease in accounts payable alongside increases in short-term borrowings and notes payable, indicating changes in the company's working capital structure Key Balance Sheet Items (Unit: RMB) | Item | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **8,073,607,286.59** | **8,311,140,896.28** | | Cash and Cash Equivalents | 1,365,341,914.51 | 1,731,676,742.51 | | Inventories | 1,224,211,517.02 | 1,101,623,121.75 | | **Total Liabilities** | **4,633,147,993.55** | **4,925,629,916.23** | | Short-term Borrowings | 1,406,886,696.70 | 1,243,340,335.06 | | Accounts Payable | 1,147,176,469.85 | 1,664,686,903.63 | | **Total Owner's Equity** | **3,440,459,293.04** | **3,385,510,980.05** | [Consolidated Income Statement](index=7&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2022, total operating revenue reached 1.40 billion RMB, a 12.35% year-on-year increase, but rising operating costs, administrative expenses, and financial expenses led to a year-on-year decline in operating profit, resulting in a net profit attributable to parent company shareholders of 53.92 million RMB, a significant 36.18% year-on-year decrease Key Income Statement Items (Unit: RMB) | Item | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Total Operating Revenue | 1,404,607,863.54 | 1,250,177,982.02 | | Total Operating Costs | 1,356,632,913.36 | 1,201,800,553.79 | | Of which: Operating Costs | 923,376,778.48 | 819,295,003.84 | | Administrative Expenses | 89,964,671.08 | 62,628,346.33 | | Financial Expenses | 18,740,904.59 | 10,763,841.52 | | Operating Profit | 69,137,822.64 | 106,853,464.72 | | Total Profit | 65,433,374.19 | 106,922,994.67 | | Net Profit | 60,862,006.51 | 97,372,921.12 | | Net Profit Attributable to Parent Company Shareholders | 53,920,500.45 | 84,486,876.81 | [Consolidated Cash Flow Statement](index=9&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, net cash flow from operating activities was -551.38 million RMB, a significant outflow of 163.03% year-on-year, primarily due to increased cash outflows for purchases, payroll, and various taxes, while net cash flow from financing activities turned positive due to increased borrowings Key Cash Flow Statement Items (Unit: RMB) | Item | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -551,378,112.42 | -209,626,688.83 | | Net Cash Flow from Investing Activities | -93,087,391.68 | 126,936,916.52 | | Net Cash Flow from Financing Activities | 196,361,899.33 | -251,199,724.12 | | Net Increase in Cash and Cash Equivalents | -448,103,604.77 | -333,889,496.43 |

Financial Performance - The company's operating revenue for 2021 was approximately CNY 7.77 billion, representing a year-over-year increase of 38.21% compared to CNY 5.62 billion in 2020[29]. - Net profit attributable to shareholders for 2021 reached approximately CNY 558.75 million, a significant increase of 78.29% from CNY 313.40 million in 2020[29]. - The net cash flow from operating activities for 2021 was approximately CNY 703.61 million, showing a slight decrease of 4.92% compared to CNY 739.99 million in 2020[29]. - The company's total assets as of the end of 2021 were approximately CNY 8.31 billion, reflecting a 9.88% increase from CNY 7.56 billion at the end of 2020[29]. - Basic earnings per share for 2021 were CNY 1.45, an increase of 81.25% compared to CNY 0.80 in 2020[29]. - The weighted average return on equity for 2021 was 17.86%, an increase of 7.66 percentage points from 10.20% in 2020[29]. - The company reported a net profit of CNY 184.99 million in Q4 2021, with a total revenue of CNY 2.73 billion for the same quarter[32]. - The company achieved a revenue of 777,183.97 million RMB, representing a year-on-year growth of 38.21%[74]. - The net profit attributable to shareholders was 55,875.50 million RMB, with a year-on-year increase of 78.29%[74]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 49,573.30 million RMB, up 58.19% year-on-year[74]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.8 per 10 shares, totaling approximately RMB 106.58 million, which represents 53.08% of the net profit attributable to shareholders for the year 2021[6]. - As of December 31, 2021, the company's distributable profits amounted to RMB 1.65 billion[6]. - The total cash used for share repurchase in 2021 was RMB 189.98 million, which is considered as part of the cash dividend distribution[6]. - The total cash dividend for 2021, including share buybacks, was RMB 296,562,976.72, representing 53.08% of the net profit attributable to shareholders[184]. Corporate Governance - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[9]. - There are no violations of decision-making procedures regarding external guarantees[9]. - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - The company has not disclosed any significant risks that could affect its future development in the report[11]. - The company has not faced any significant legal or regulatory issues affecting its governance structure[144]. - The company has not faced any penalties from securities regulatory authorities in the past three years[165]. - The company has not reported any objections from directors regarding company matters during the reporting period[171]. Market Strategy and Expansion - The company plans to continue optimizing its business structure and expanding its market presence to sustain growth in the coming years[29]. - The mattress industry in China saw a market size doubling over the past decade, with significant growth driven by urbanization and rising household wealth[45]. - The company launched a new brand strategy focusing on "deep good sleep," enhancing brand value and targeting the younger demographic through celebrity endorsements and sponsorships of top variety shows[40]. - The company expanded its offline retail presence, completing a plan to open 1,000 new stores, while also enhancing online sales through innovative services like free trial and old-for-new exchanges[39]. - The company has established deep cooperation with major e-commerce platforms such as Tmall, JD.com, and Suning, enhancing its online sales channels[62]. - The company is actively exploring rural markets, which are showing increasing consumption power and growth rates that surpass urban areas[124]. - The company is focusing on the sleep industry with a strategy to expand from a single brand to multiple brands, targeting high-end and low-end markets simultaneously[131]. - The company plans to open over 1,000 new stores in traditional building materials channels, increasing the proportion of stores for its brands, including "Ximin" and "Keshang"[132]. Research and Development - The company holds 705 valid patents, including 684 domestic patents and 21 international patents, showcasing its strong R&D capabilities[73]. - The company has developed a comprehensive product research and development management system, integrating sleep science and ergonomic principles into its product design[67]. - The total R&D investment for the year was CNY 183,217,728.90, accounting for 2.36% of total revenue[95]. - The number of R&D personnel increased to 786, representing 7.79% of the total workforce, indicating a focus on talent development[96]. - The company is leveraging new technologies such as IoT and AI to enhance product design and manufacturing processes, reflecting a trend towards digital transformation in the mattress industry[126]. Employee Management and Compensation - The total number of employees in the parent company and major subsidiaries is 10,089, with 4,341 in the parent company and 5,748 in subsidiaries[178]. - The company has implemented a performance-based compensation system, linking basic salary, performance bonuses, and efficiency bonuses to employee roles and performance metrics[179]. - The company has a stock option incentive plan for 2021, aimed at motivating and retaining core talent[179]. - The total compensation for the board members amounted to 28,261,830, with an average compensation of 993.97 per member[152]. - The remuneration decision process for directors and senior management is based on the annual performance evaluation results and approved remuneration proposals[161]. Environmental and Social Responsibility - The company has implemented ISO 14001:2004 environmental management system certification and adheres to national environmental protection laws and regulations[199]. - The company actively responded to national carbon neutrality policies by establishing green factories and energy management systems, aiming to reduce carbon emissions and environmental impact[199]. - The establishment of a 5G + industrial internet platform has enabled multi-level data sharing and business collaboration, significantly enhancing production efficiency and energy utilization[199]. - The company has optimized product processes and shortened new product development cycles to reduce energy consumption[199]. Internal Control and Audit - The internal control system was strictly adhered to, ensuring compliance and accuracy in financial reporting and operational efficiency[192]. - The company conducted an internal control effectiveness evaluation as of December 31, 2021, and found no significant deficiencies in both financial and non-financial reporting controls[193]. - The independent audit of the internal control effectiveness was performed by Tianjian Accounting Firm, which issued a standard unqualified opinion report[193].

证券代码：603008 证券简称：喜临门 公告编号：2022-006 喜临门家具股份有限公司 关于接待机构调研情况的公告 | --- | --- | |--------------------------------------------------------------------|-------| | | | | 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性 | | | 陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带 | | | 责任。 | | 喜临门家具股份有限公司（以下简称"公司"）于 2022 年 3 月 15 日通过电 话会议交流形式接待了机构调研，现将主要情况公告如下： 一、调研基本情况 （一）调研时间：2022 年 3 月 15 日 14:00-15:00 （二）调研方式：电话会议交流 （三）调研机构名称：浙商证券、华宝基金、华夏基金、人寿资产等多家机 构 （四）公司接待人员：董事会秘书沈洁 二、投资者主要关注内容 （一）关于公司 2022 年经营规划 答：2022 年，公司围绕"高速度高质量发展"的战略目标，制定了稳健的 经营方针。从几个维度来讲： ...

Financial Performance - The company's operating revenue for Q3 2021 reached ¥1,935,805,357.90, representing a year-on-year increase of 31.06%[7] - The net profit attributable to shareholders for the same period was ¥156,142,717.72, reflecting a growth of 13.42% compared to the previous year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥147,110,122.33, with a year-on-year increase of 10.08%[7] - The basic earnings per share for Q3 2021 was ¥0.40, up 15.64% from the same period last year[10] - The diluted earnings per share also stood at ¥0.40, marking a 15.64% increase year-on-year[10] - The weighted average return on equity increased to 5.18%, up by 0.13 percentage points from the previous year[10] - Total operating revenue for the first three quarters of 2021 reached ¥5,042,684,072.65, a significant increase from ¥3,452,820,029.99 in the same period of 2020, representing a growth of approximately 46%[27] - Operating profit for the third quarter was ¥475,913,277.82, compared to ¥250,046,002.20 in the previous year, indicating a year-over-year increase of about 90%[30] - Net profit attributable to shareholders of the parent company for the third quarter was ¥373,762,657.10, up from ¥180,153,256.60 in the same quarter of 2020, reflecting a growth of approximately 107%[30] - Total comprehensive income amounted to CNY 393,666,684.38, compared to CNY 192,887,990.54 in the previous year, reflecting a significant increase[32] - Basic and diluted earnings per share were CNY 0.96, up from CNY 0.46 year-over-year[32] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥200,704,894.32, showing a year-on-year increase of 48.23%[10] - Cash inflow from operating activities reached CNY 5,919,334,098.81, compared to CNY 3,697,468,444.67 in the same period last year, indicating a growth of approximately 60.0%[36] - The company received CNY 325,176,059.69 in cash related to operating activities, up from CNY 193,037,473.13 year-over-year[36] - The company’s total cash outflow from operating activities was CNY 5,718,629,204.49, compared to CNY 3,562,064,689.81 in the previous year[36] - Cash inflow from financing activities totaled CNY 1,387,306,678.49, compared to CNY 1,183,602,261.30 in the previous year, showing an increase of about 17.2%[38] - Net cash flow from financing activities was negative at CNY -327,234,885.80, worsening from CNY -135,077,976.85 year-over-year[38] - Cash and cash equivalents at the end of the period were CNY 971,880,180.20, compared to CNY 549,123,696.72 at the end of the previous year[38] Assets and Liabilities - Total assets at the end of the reporting period were ¥7,569,649,045.96, a slight increase of 0.08% compared to the end of the previous year[10] - The company's total current assets as of September 30, 2021, amount to ¥4,066,185,743.65, a decrease from ¥5,118,052,230.40 at the end of 2020[22] - Accounts receivable increased to ¥942,534,692.23 from ¥745,372,946.06 year-over-year[22] - Inventory as of September 30, 2021, is reported at ¥1,012,016,540.07, up from ¥798,541,160.78 in the previous year[22] - Non-current assets total ¥3,503,463,302.31, compared to ¥2,445,824,522.75 at the end of 2020[22] - Total liabilities decreased to ¥4,292,220,418.03 from ¥4,391,543,672.24 year-over-year, showing a reduction of approximately 2.3%[28] - The company's total equity increased to ¥3,277,428,627.93, up from ¥3,172,333,080.91 in the previous year, representing a growth of about 3.3%[27] - Short-term borrowings amount to ¥1,319,886,754.66, down from ¥1,409,890,727.79[22] Research and Development - Research and development expenses increased by 73.84% year-to-date, indicating a significant investment in new product development[13] - Research and development expenses increased to ¥131,731,981.56 in the first three quarters of 2021, compared to ¥75,777,835.87 in the same period of 2020, marking an increase of about 74%[27] Shareholder Information - The total number of common shareholders at the end of the reporting period is 11,501[16] - The largest shareholder, Shaoxing Huayi Investment Co., Ltd., holds 84,799,659 shares, accounting for 21.89% of the total shares[16] - The company has no significant pledges, marks, or frozen shares among its top shareholders[16] Operational Costs - The total cost of operations for the first three quarters was ¥4,632,889,794.04, compared to ¥3,227,867,772.02 in the same period of 2020, indicating an increase of approximately 43.5%[27] - The company reported a significant increase in other income, which reached ¥35,630,011.83, compared to ¥21,068,837.47 in the previous year, reflecting a growth of about 69%[30] - The company's financial expenses decreased to ¥38,499,032.85 from ¥75,294,373.28 year-over-year, indicating a reduction of approximately 48%[27]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2021, representing a year-on-year increase of 15%[15]. - Net profit attributable to shareholders reached 150 million RMB, up 20% compared to the same period last year[15]. - The company’s gross margin improved to 35%, an increase of 2 percentage points year-on-year[15]. - The company achieved operating revenue of CNY 3,106,878,714.75 for the first half of the year, representing a 57.25% increase compared to CNY 1,975,805,678.38 in the same period last year[22]. - Net profit attributable to shareholders reached CNY 217,619,939.38, a significant increase of 412.17% from CNY 42,489,555.91 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 177,560,945.71, up 421.94% from CNY 34,019,446.06 year-on-year[22]. - Basic earnings per share rose to CNY 0.56, a 409.09% increase from CNY 0.11 in the same period last year[23]. - The total comprehensive income for the period was CNY 235,774,594.99, compared to CNY 43,409,592.70 in the same period last year, representing an increase of approximately 442.5%[166]. - The total profit for the period was CNY 267,575,181.79, compared to CNY 64,175,415.00 in the same period last year, reflecting an increase of approximately 317.5%[164]. Market Expansion and Product Development - User data indicates a growth in active customers by 25%, reaching 1.5 million users[15]. - The company plans to launch three new product lines in the second half of 2021, focusing on eco-friendly materials[15]. - Future outlook includes a revenue growth target of 10-15% for the full year 2021[15]. - The company is expanding its market presence in Southeast Asia, with plans to open two new stores in Vietnam by the end of 2021[15]. - The company plans to continue focusing on high-quality mattress products, emphasizing health and comfort features to meet consumer demands[33]. - The company is exploring new business channels, including cruise ships, military, and schools, to expand its market reach[51]. - The company has launched a new student mattress product with antibacterial and anti-mite features, targeting the student demographic and enhancing brand recognition[61]. Research and Development - Investment in R&D increased by 30% to 50 million RMB, aimed at developing smart furniture technology[15]. - Research and development expenses surged by 88.73% to ¥75,711,875.94 from ¥40,117,506.29, indicating a strong commitment to innovation[65]. - The company has achieved a total of 698 valid patents, including 678 domestic patents and 20 international patents, showcasing its strong R&D capabilities[56]. - The company has a mature product R&D management system and incentive mechanisms to foster innovation[52]. Financial Management and Cash Flow - The company reported a net cash flow from operating activities of CNY 180,298,037.50, a turnaround from a negative cash flow of CNY -194,704,277.82 in the same period last year, marking a 192.60% improvement[22]. - The net cash flow from investment activities increased by 66.26% to ¥72,418,267.22 from ¥43,556,748.46, reflecting effective capital management[65]. - The company reduced financial expenses by 46.66% to ¥25,916,049.79 from ¥48,584,264.16, primarily due to decreased borrowing costs[65]. - The ending balance of cash and cash equivalents was CNY 891,732,129.95, compared to CNY 388,204,967.89 at the end of the first half of 2020, showing an increase of approximately 129.0%[178]. Operational Strategy - The company emphasizes a production model primarily based on self-production, with core products like mattresses, beds, and sofas produced on an order basis[51]. - The company employs a centralized procurement strategy for raw materials to ensure quality and competitive pricing, utilizing an ERP system for data management[51]. - The company focuses on a multi-channel sales network, combining offline specialty stores and online platforms with a "1+N" strategy to capture new market opportunities[51]. - The company has established a total of 4,017 proprietary stores for its brands, including Xilinmen, Xiatou, and M&D, enhancing its marketing network across major cities and economically developed areas[56]. Corporate Governance and Compliance - The company has committed to not engaging in any direct or indirect competition with its subsidiaries and related businesses, ensuring compliance with performance commitments during the specified period[106]. - The controlling shareholder has pledged to minimize and avoid related party transactions, ensuring fair operations at market prices[109]. - There are no significant lawsuits or arbitration matters reported during the reporting period[116]. - The company has not faced any non-compliance issues or penalties related to its controlling shareholders or actual controllers during the reporting period[116]. Challenges and Risks - The company faces risks from raw material price fluctuations, intensified market competition, international trade frictions, operational management challenges, brand infringement, and recurring COVID-19 pandemic impacts[83]. - The company plans to optimize product structure and enhance management capabilities to improve profitability amid increasing market competition[83]. - The company will closely monitor international situations and adjust overseas factory layouts in response to trade frictions[83]. - The company encourages employees to get vaccinated and implements cost-saving strategies to mitigate the adverse effects of the pandemic[86].

Financial Performance - Operating revenue for the period reached CNY 1,250,177,982.02, representing a significant increase of 72.51% year-on-year[12] - Net profit attributable to shareholders was CNY 84,486,876.81, a remarkable increase of 255.55% compared to a net loss of CNY 54,316,316.01 in the same period last year[12] - Basic earnings per share were CNY 0.22, compared to a loss of CNY 0.14 per share in the same period last year, marking a 257.14% increase[12] - Operating profit for Q1 2021 was ¥106,853,464.72, compared to a loss of ¥66,323,747.39 in Q1 2020[44] - Net profit for Q1 2021 was ¥97,372,921.12, a turnaround from a net loss of ¥54,409,632.26 in Q1 2020[44] - Total operating revenue for Q1 2021 reached ¥1,250,177,982.02, a significant increase of 72.5% compared to ¥724,693,924.09 in Q1 2020[41] - The company reported investment income of ¥23,161,182.49 in Q1 2021, a significant improvement from a loss of ¥139,400.41 in Q1 2020[41] - Comprehensive income for Q1 2021 totaled ¥97,902,399.52, contrasting with a loss of ¥51,887,284.77 in Q1 2020[44] Cash Flow - The net cash flow from operating activities improved to -CNY 209,626,688.83, a 29.18% improvement from -CNY 296,008,890.57 in the previous year[12] - The company's cash inflow from operating activities reached CNY 1,672,911,696.53 in Q1 2021, a significant increase from CNY 695,612,053.74 in Q1 2020, representing a growth of approximately 140.5%[51] - The total cash outflow from operating activities was CNY 1,882,538,385.36, up from CNY 991,620,944.31 in the previous year, indicating a rise of about 89.8%[51] - The net cash flow from investing activities was CNY 126,936,916.52 in Q1 2021, a recovery from CNY -44,625,639.96 in Q1 2020[51] - The cash inflow from financing activities totaled CNY 325,210,656.62, down from CNY 705,567,190.12 in Q1 2020, reflecting a decrease of approximately 54.0%[53] - The net cash flow from financing activities was negative at CNY -251,199,724.12 in Q1 2021, contrasting with a positive flow of CNY 84,458,570.27 in Q1 2020[53] - The company's cash and cash equivalents at the end of Q1 2021 stood at CNY 766,489,308.81, compared to CNY 271,689,380.23 at the end of Q1 2020, marking an increase of approximately 182.5%[53] Assets and Liabilities - Total assets at the end of the reporting period were CNY 6,863,922,598.14, a decrease of 9.25% compared to the end of the previous year[12] - The company's financial liabilities, including short-term borrowings, decreased to ¥1,155,972,221.78 from ¥1,409,890,727.79, reflecting a reduction in debt levels[30] - Total liabilities decreased from 4,391,543,672.24 to 3,593,687,117.71, a reduction of approximately 18.2%[32] - Current assets decreased from 3,537,955,971.58 to 2,620,524,276.21, a decline of about 25.8%[36] - Cash and cash equivalents decreased from 805,600,957.09 to 664,330,094.60, a drop of approximately 17.5%[36] - Accounts receivable decreased from 662,499,058.23 to 649,196,301.66, a decrease of about 2.0%[36] - Total equity attributable to shareholders increased from 2,940,955,266.24 to 3,025,971,621.45, an increase of approximately 2.9%[32] - Non-current assets increased from 2,429,644,012.46 to 3,053,160,492.23, an increase of about 25.6%[36] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,154[14] - The largest shareholder, Shaoxing Huayi Investment Co., Ltd., held 21.89% of the shares, amounting to 84,799,659 shares[14] Government Subsidies and Other Income - The company received government subsidies amounting to CNY 13,264,513.74, which are closely related to its normal business operations[13] - Other income for Q1 2021 was ¥13,264,513.74, compared to ¥10,401,604.55 in Q1 2020, indicating a 27.0% increase[41] Research and Development - Research and development expenses increased by 93.64% to ¥3,306.34 million in Q1 2021, up from ¥1,707.44 million in Q1 2020, indicating a significant rise in investment in innovation[22] - Research and development expenses increased to ¥33,063,415.58 in Q1 2021, up from ¥17,074,376.08 in Q1 2020, reflecting a 93.8% increase[41]

Financial Performance - The company's operating revenue for 2020 was RMB 5,623,291,034.72, representing a 15.43% increase compared to RMB 4,871,398,275.97 in 2019[25]. - The net profit attributable to shareholders of the listed company was RMB 313,404,739.48, a decrease of 17.61% from RMB 380,410,692.04 in the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 313,387,471.77, an increase of 18.35% compared to RMB 264,793,509.40 in 2019[25]. - The net cash flow from operating activities was RMB 739,997,778.86, showing a significant increase of 48.46% from RMB 498,457,715.88 in 2019[25]. - As of the end of 2020, the net assets attributable to shareholders were RMB 2,940,955,266.24, a 10.78% increase from RMB 2,654,800,552.00 at the end of 2019[25]. - The total assets of the company reached RMB 7,563,876,753.15, reflecting a 13.61% increase from RMB 6,657,549,084.72 in 2019[25]. - Basic earnings per share for 2020 were CNY 0.80, down 18.37% from CNY 0.98 in 2019[26]. - The weighted average return on equity was 10.20%, a decrease of 5.19 percentage points from 15.39% in 2019[26]. - The company reported a significant decrease in accounts receivable, down 35.31% to 74,537.29 million, due to the reclassification of receivables related to the disposal of a subsidiary[102]. - Cash and cash equivalents increased by 38.63% to 145,286.26 million, attributed to strong net cash flow from operating activities[102]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 2.5 per 10 shares (including tax) to all shareholders based on the total share capital as of the dividend distribution registration date[7]. - The company distributed cash dividends of 0.5 RMB per 10 shares, totaling 19,370,889.35 RMB[145]. - The company reported a net profit of 313,404,739.48 RMB in 2020, with a cash dividend payout ratio of 30.90%[146]. - The total number of ordinary shares decreased by 3,720,000 shares, resulting in a total of 391,137,787 shares[181]. - The number of ordinary shareholders increased from 9,442 to 10,233 during the reporting period[184]. - The largest shareholder, Shaoxing Huayi Investment Co., Ltd., holds 21.89% of the shares, with a total of 84,799,659 shares[195]. - The second largest shareholder, Shaoxing Yuancheng Huahan Equity Investment Partnership, holds 9.50% of the shares, totaling 36,807,950 shares[195]. - The third largest shareholder, Zhou Weicheng, holds 4.41% of the shares, totaling 17,090,705 shares[195]. - The top four shareholders collectively hold 32.48% of the company's shares[195]. - The actual controller, Chen Ayu, directly holds 1.09% of the shares and has a controlling interest through Huayi Investment[199]. Market and Product Strategy - The company focuses on high-quality bedroom furniture, with a product range including mattresses, beds, and sofas, emphasizing health and comfort[35]. - The "净眠" series targets the new middle class, promoting spinal protection and health through innovative mattress technology[35]. - The "法诗曼" series is designed for younger consumers, integrating aesthetic and functional elements in bedroom design[38]. - The company has developed a multi-brand strategy to cater to diverse consumer needs, including high-end and practical product lines[35]. - The company aims to enhance user experience in hotels by collaborating with major hotel chains to provide mattress and bedding solutions[53]. - The company is focusing on expanding its market presence and enhancing product quality to meet the evolving consumer preferences for health and comfort[125]. - The company has a diversified sales channel strategy, adapting to the rise of e-commerce and live-streaming sales models[131]. - The company plans to upgrade its value proposition from "mattresses that protect the spine" to "deep good sleep" focusing on typical sleep issues in China[136]. - The company aims to enhance its core mattress category while expanding into living room products and developing smart sleep systems[136]. Production and Supply Chain - The company’s production model is primarily based on self-production, with a focus on order-based production to meet customer demand[54]. - The company has implemented an ERP information management system to coordinate sales orders, material requirements, and inventory, enhancing supply chain efficiency[57]. - The company has established seven production bases across China and one overseas base in Thailand, optimizing its supply chain and production efficiency[68]. - The company has established a total of 2,340 retail stores for its brand "喜临门", 800 for "喜眠", 450 for "M&D Milano&Design", and 53 for "Chateau d'Ax" by the end of the reporting period[53]. - The company opened 733 new stores during the reporting period, increasing the total number of stores to 2,843, a net increase of 223 stores[109]. - The company has implemented a unified procurement model for raw materials to mitigate price fluctuation risks[137]. Research and Development - The company’s research and development integrates sleep science and ergonomic principles, aiming to create innovative products that meet market demands[58]. - The company holds 640 valid patents, including 624 domestic and 16 international patents, showcasing its strong R&D capabilities[70]. - Research and development expenses totaled 124,599,116.60, accounting for 2.22% of total revenue, with 453 R&D personnel representing 5.48% of the total workforce[96]. - The company is actively investing in R&D for new products and technologies to improve mattress comfort and environmental sustainability[131]. - The company has developed a new self-cleaning antibacterial mattress featuring dual-core antibacterial and anti-mite technology, authorized by DuPont and Sanitized[72]. - The company launched the Smart 1 intelligent mattress, integrating with Huawei's smart living platform and forming strategic partnerships with Tuya and Huazhu[72]. Market Trends and Challenges - The mattress market in China is expected to maintain stable growth, with a total consumption of 83.42 billion USD in 2019, reflecting a 39% increase over the past five years[60]. - The furniture manufacturing industry in China is expected to see increased concentration, with leading companies expanding their competitive advantages amid market challenges[63]. - The mattress industry in China has a low market concentration, with the top 5 manufacturers holding only 14.5% market share, indicating significant growth potential[125]. - The Chinese mattress market size reached 57.6 billion CNY in 2019, with expectations for stable growth driven by rising disposable income and urbanization[127]. - The average disposable income in China exceeded 30,000 CNY in 2019, growing by 8.9% year-on-year, which is expected to enhance mattress consumption[130]. - The mattress market is experiencing a trend towards increased concentration, with head companies gaining market share due to the exit of many small brands during the pandemic[130]. - The company is facing risks from intensified market competition and international trade tensions, particularly with the U.S.[138]. Corporate Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not faced any violations in decision-making procedures for providing guarantees[9]. - The company emphasizes the importance of risk awareness regarding future plans and development strategies, advising investors to be cautious[8]. - The company has committed to minimizing and avoiding related party transactions, ensuring fair market practices and compliance with legal requirements[151]. - There are no outstanding issues regarding the company's financial governance, ensuring compliance with regulations set by the China Securities Regulatory Commission[153]. - The company has not encountered any situations that may lead to joint liability for unexpired guarantees during the reporting period[171]. - The company has not issued any non-standard audit opinions during the reporting period, indicating a clean audit[154]. - The company has no significant litigation or arbitration matters during the reporting period[160]. - The company has not faced any risks of suspension or termination of listing during the reporting period[158]. Social Responsibility and Environmental Compliance - The company has actively fulfilled its social responsibilities, particularly in response to the COVID-19 pandemic[174]. - The company donated approximately 8 million yuan in anti-epidemic materials since the outbreak of the pandemic in 2020[174]. - The company has not experienced any significant pollution during its production and operations, adhering to ISO14001:2004 environmental management standards[175]. - There were no major violations of environmental regulations reported during the reporting period[176]. - The company has maintained compliance with national environmental protection laws and regulations throughout its operations[175].

Financial Performance - Net profit attributable to shareholders of the listed company was CNY 180,153,256.60, down 37.33% year-on-year[18] - Operating income for the period was CNY 3,452,820,029.99, an increase of 3.02% compared to the same period last year[18] - The net profit after deducting non-recurring gains and losses was CNY 167,661,660.00, a decrease of 34.47% year-on-year[18] - Basic earnings per share were CNY 0.46, down 36.99% compared to the previous year[21] - The weighted average return on net assets decreased by 5.25 percentage points to 6.56%[21] - The total operating profit for the first three quarters of 2020 was ¥158,737,035.51, down 51.0% from ¥323,988,594.96 in the same period of 2019[68] - Total operating revenue for Q3 2020 reached ¥1,477,014,351.61, an increase of 12.8% compared to ¥1,309,641,706.17 in Q3 2019[51] - Total operating costs for Q3 2020 were ¥1,299,717,572.54, up 12.0% from ¥1,160,211,744.21 in Q3 2019[51] - Net profit for Q3 2020 was ¥150,813,515.71, representing a 5.4% increase from ¥143,040,445.63 in Q3 2019[58] Cash Flow - The net cash flow from operating activities was CNY 135,403,754.86, a decrease of 64.29% year-on-year[18] - The cash flow from operating activities for the first three quarters of 2020 was ¥3,697,468,444.67, compared to ¥3,745,875,332.04 in the same period of 2019[74] - The company achieved a net cash flow from operating activities of ¥135,403,754.86 in Q3 2020, down from ¥379,182,742.76 in Q3 2019[74] - Total cash inflow from operating activities amounted to CNY 4,204,447,412.53, compared to CNY 4,000,702,829.01 in the previous year, indicating a year-over-year increase of about 5.1%[78] - Cash outflow from operating activities totaled CNY 3,777,195,762.42, up from CNY 3,617,825,440.69 in 2019, reflecting an increase of approximately 4.4%[78] Assets and Liabilities - Total assets at the end of the reporting period were CNY 6,602,831,234.57, a decrease of 0.82% compared to the end of the previous year[18] - Total liabilities decreased from CNY 3,781,340,878.98 to CNY 3,585,273,029.37, a reduction of approximately 5.2%[43] - Current liabilities totaled CNY 3,283,614,333.21, down from CNY 3,534,065,094.85, reflecting a decrease of about 7.1%[43] - Non-current liabilities increased from CNY 247,275,784.13 to CNY 301,658,696.16, representing an increase of approximately 21.9%[43] - Total equity rose from CNY 2,876,208,205.74 to CNY 3,017,558,205.20, an increase of about 4.9%[45] Shareholder Information - The total number of shareholders at the end of the reporting period was 12,655[22] - The largest shareholder, Shaoxing Huayi Investment Co., Ltd., held 21.89% of the shares, with 84,799,659 shares pledged[22] Investments and Acquisitions - The company completed the acquisition of 40% equity in Happy Foam Co., Limited for RMB 3.9225 million, resulting in 100% ownership[32] - The company established a wholly-owned subsidiary, Zhejiang Shunxi Supply Chain Co., Ltd., with a registered capital of RMB 100 million in September 2020[35] Research and Development - The company plans to continue investing in R&D to enhance product offerings and market competitiveness[55] - Research and development expenses for Q3 2020 amounted to ¥35,660,329.58, a rise of 22.5% from ¥29,017,502.31 in Q3 2019[55] Other Financial Metrics - The company reported government subsidies of CNY 21,068,837.47 for the year-to-date period[21] - The company recorded other income of ¥946,017.67 in Q3 2020, up from ¥413,402.16 in Q3 2019, marking a 128.5% increase[68] - The company has implemented new revenue recognition standards since January 1, 2020[95]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,975,805,678.38, a decrease of 3.23% compared to CNY 2,041,824,329.58 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 42,489,555.91, down 72.25% from CNY 153,108,947.33 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 34,019,446.06, a decline of 75.78% compared to CNY 140,482,715.51 in the previous year[23]. - The net cash flow from operating activities was negative at CNY -194,704,277.82, a significant decrease from CNY 208,262,731.89 in the same period last year, representing a decline of 193.49%[23]. - Basic earnings per share for the first half of 2020 were CNY 0.11, a decrease of 71.79% from CNY 0.39 in the same period last year[24]. - The weighted average return on net assets was 1.59%, down 4.89 percentage points from 6.48% in the previous year[24]. - The company achieved a revenue of 1.241 billion CNY in the furniture segment for Q2 2020, representing a year-on-year growth of 10%[69]. - The net profit attributable to shareholders in the furniture segment for Q2 2020 was 88 million CNY, a year-on-year increase of 3.54%, reversing the loss from Q1[69]. - The company reported a net profit increase in retained earnings from ¥761,585,126.43 to ¥804,476,172.34, an increase of about 5.62%[138]. - The total comprehensive income for the first half of 2020 was CNY 43,409,592.70, significantly lower than CNY 166,923,745.90 in the previous year[151]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 6,366,508,525.82, down 4.37% from CNY 6,657,549,084.72 at the end of the previous year[23]. - The total liabilities decreased to CNY 2,225,472,492.01 from CNY 2,580,156,829.06, representing a reduction of approximately 13.76%[145]. - Total current assets amounted to RMB 3,588,351,426.47 as of June 30, 2020, compared to RMB 3,834,941,061.45 at the end of 2019, reflecting a decrease of around 6.4%[133]. - Total liabilities decreased from ¥3,781,340,878.98 to ¥3,471,346,237.38, a decline of about 8.19%[138]. - The company's cash and cash equivalents decreased to RMB 784,213,546.36 as of June 30, 2020, from RMB 1,048,038,357.55 at the end of 2019, representing a decline of approximately 25.3%[133]. Operational Strategy - The company has implemented a production model primarily based on order production, supplemented by stock production to meet market demand during peak periods[46]. - The company utilizes a centralized procurement model to ensure quality and competitive pricing for raw materials, employing an ERP system for data management and supply chain coordination[49]. - The company established a real-time monitoring mechanism for bulk raw material prices to stabilize supply during the pandemic[74]. - The company has established a unified procurement model for raw materials, ensuring stable supply from at least three major suppliers for key materials[86]. Market Position and Competition - The company operates nearly 2,700 proprietary stores for its brands, enhancing its market presence and control over sales channels[63]. - The company is recognized as a national high-tech enterprise, with a focus on innovation and product development in the mattress sector[60]. - The mattress industry is expected to maintain stable growth due to urbanization, increasing household wealth, and evolving consumer preferences[56]. - The company is responding to intensified market competition by leveraging its brand, channels, and product advantages to increase market share[86]. Research and Development - The company is committed to product research and development, integrating sleep science and ergonomic principles with smart technology and green materials[50]. - The company has obtained a total of 651 patents, including 640 domestic patents and 11 international patents, showcasing its strong R&D capabilities[62]. - The company is advancing the development of smart mattress products and related sleep aid items[69]. Corporate Governance and Compliance - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[6]. - There were no non-operating fund occupations by controlling shareholders or their related parties during the reporting period[7]. - The company has not experienced any significant violations of laws and regulations during the reporting period[117]. - The company is committed to not engaging in direct or indirect competition with its subsidiaries, ensuring compliance with competitive commitments[94]. Financial Management - The company’s financial expenses rose by 8.81% to ¥48,584,264.16, attributed to increased borrowing interest expenses[74]. - The company actively supported its franchisees during the pandemic by covering their base salaries for a month, ensuring no franchisee left the company[71]. - The company reported a goodwill balance of 538 million yuan, indicating potential risks of impairment due to economic conditions or acquired companies' performance[89]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 14,804[123]. - The largest shareholder, Shaoxing Huayi Investment Co., Ltd., holds 21.68% of the shares, amounting to 84,799,659 shares[123]. - The company repurchased and canceled 3.72 million shares of restricted stock due to unmet performance targets for the fiscal year 2019[120].

Financial Performance - The company's operating revenue for 2019 was RMB 4,871,398,275.97, representing a 15.68% increase compared to RMB 4,210,934,502.23 in 2018[24]. - The net profit attributable to shareholders of the listed company was RMB 380,410,692.04, a significant turnaround from a loss of RMB 438,267,306.36 in 2018, marking a 186.80% increase[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 264,793,509.40, compared to a loss of RMB 468,581,391.41 in the previous year, reflecting a 156.51% improvement[24]. - The net cash flow from operating activities reached RMB 498,457,715.88, a substantial increase of 457.55% from a negative cash flow of RMB 139,410,326.73 in 2018[24]. - The company reported a significant recovery in financial performance compared to the previous year, indicating a positive trend in business operations[24]. - The company achieved a revenue of CNY 487,139.83 million, representing a year-on-year growth of 15.68%[85]. - The net profit attributable to shareholders was CNY 38,041.07 million, a significant increase of 186.80% from a loss of CNY 43,826.73 million in the previous year[28]. - Basic earnings per share reached CNY 0.98, compared to a loss of CNY 1.13 per share in 2018, marking a growth of 186.73%[28]. - The weighted average return on equity increased to 15.39%, up by 32.95 percentage points from -17.56% in 2018[28]. Market Expansion and Product Development - The company plans to continue expanding its market presence and developing new products, although specific details were not disclosed in the report[7]. - The company plans to expand its product lines focusing on high-quality mattresses and related furniture, emphasizing health and comfort[38]. - The company aims to enhance its market presence through innovative designs and strategic branding initiatives[38]. - The company has established deep cooperation with major e-commerce platforms such as Tmall, JD.com, and Suning, enhancing its online sales capabilities[54]. - The company has formed strategic partnerships with brands like Xiaomi and DXY to enhance brand awareness and market influence[81]. - The company is focusing on expanding its market presence amidst increasing competition from international brands like Serta and Sealy[128]. - The company is adapting to changing consumer behaviors, with a notable increase in online mattress sales due to the rise of e-commerce platforms[132]. Production and Supply Chain - The company’s production model primarily focuses on self-production, with core products like mattresses and sofas produced based on customer orders[55]. - The company has established seven production bases across China and two overseas production bases in Thailand and Vietnam to enhance its supply chain[74]. - The company has adopted a centralized procurement strategy to ensure quality and competitive pricing for raw materials[56]. - The company is enhancing its manufacturing efficiency through lean production techniques and smart technology upgrades[137]. Research and Development - The company increased its R&D expenses to CNY 122,328.65 million, reflecting a growth of 48.83% year-on-year[88]. - The company’s technology research and development integrates sleep science and ergonomic principles, aiming to enhance product quality and innovation[60]. - The company aims to enhance its product offerings by developing self-cleaning antibacterial products in collaboration with international manufacturers, focusing on health-conscious consumer demands[137]. Corporate Governance and Compliance - The board of directors and management have confirmed the authenticity and completeness of the annual report, underscoring their commitment to transparency[4]. - The company has engaged Tianjian Accounting Firm for a standard unqualified audit report, ensuring the accuracy of financial statements[5]. - The company has no significant litigation or arbitration matters during the reporting period[168]. - The company has not disclosed any significant related party transactions that have not been reported previously[171]. - The company has confirmed that there are no unfulfilled court judgments or significant debts due that have not been settled by the controlling shareholders or actual controllers[168]. Social Responsibility and Environmental Compliance - The company actively engages in social responsibility initiatives, including donations to support local communities[184]. - The company has passed the ISO 14001:2004 environmental management system certification and complies with national environmental protection laws[185]. - The company has not reported any significant violations of environmental regulations during the reporting period[185]. Shareholder Structure and Stock Performance - The total number of ordinary shares decreased from 394,857,787 at the end of 2018 to 391,137,787 due to the repurchase and cancellation of 3,720,000 restricted stock units[194]. - The total number of unrestricted circulating shares increased from 319,560,000 to 387,417,787, representing 99.05% of total shares[189]. - The largest shareholder, Shaoxing Huayi Investment Co., Ltd., increased its holdings by 20,785 shares, holding a total of 84,799,659 shares, representing 21.68% of the total shares[196]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest two shareholders alone accounting for over 31%[196].