证券代码：603111 证券简称：康尼机电 公告编号：2023-014 南京康尼机电股份有限公司 会议召开时间：2023 年 05 月 25 日(星期四)下午 15:00-16:00 会议召开地点：上海证券交易所上证路演中心（网址： 关于召开 2022 年度业绩说明会的公告 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。 重要内容提示： http://roadshow.sseinfo.com/） 南京康尼机电股份有限公司（以下简称"公司"）已于 2023 年 4 月 29 日发布公司 2022 年度报告，为便于广大投资者更全面深入地了 解公司 2022 年度经营成果、财务状况，公司计划于 2023 年 05 月 25 日下午 15:00-16:00 举行 2022 年度业绩说明会，就投资者关心的问题 进行交流。 一、 说明会类型 本次投资者说明会以网络互动形式召开，公司将针对 2022 年度 的经营成果及财务指标的具体情况与投资者进行互动交流和沟通，在 三、 参加人员 副董事长、总裁：高文明 独立董事：王维胜 会议召开方 ...

Government Subsidies and Grants - The company received government subsidies totaling 19,838,665.91 RMB, a significant increase from the previous year's 10,520,246.74 RMB[3] - Government grants related to assets and income amounted to 12,975,193.72 RMB, with an additional 3,810,000.00 RMB related to income[11] Interest and Income - Interest income rose to 23,684,312.43 RMB from 16,492,481.36 RMB in the previous year[3] - The company's income tax expense for the year was 23,528,976.93 RMB[1] Cash and Cash Equivalents - The company's cash and cash equivalents decreased to 1,154,068,382.16 RMB from 1,296,360,882.11 RMB at the beginning of the year[7] - The company lost control of Nanjing Kangni Ring Network Switch Equipment Co., Ltd., resulting in a net cash reduction of 1,878,215.76 RMB[6] Foreign Currency and Exchange - The company's foreign currency payables included 101,709.22 USD, 86,690.60 EUR, and 2,081,700.00 JPY[9] - The company's foreign currency holdings include USD 1,477,987.83, EUR 2,748,226.75, and THB 1,075,487.87, converted to RMB at the respective exchange rates[51] - The company's accounts receivable include USD 5,672,269.05 and EUR 6,250,620.33, converted to RMB at the respective exchange rates[51] Subsidiaries and Ownership - Kangni Electronics holds a 100% direct ownership stake in Kangni Electronics, located in Nanjing, focusing on rail and public transportation equipment and automatic control system design[13] - Kangni Intelligent Control has a 66% indirect ownership stake, based in Nanjing, specializing in intelligent equipment, robotics, and electric tool sales[13] - Xuzhou Kangpeng is fully owned (100% indirect) and operates in Xuzhou, dealing with rail transit equipment and software development[13] - Kangni Technology holds a 62.5% direct stake, located in Nanjing, focusing on rail vehicle connectors and electrical equipment[13] - Kangni New Energy has a 65.64% direct ownership stake, based in Nanjing, specializing in automotive parts and charging equipment[13] - Kangni Precision Machinery holds a 62.2% direct stake, located in Nanjing, focusing on precision CNC machines and mechanical parts[13] - Kangni Smart has a 100% direct ownership stake, based in Nanjing, specializing in intelligent motion devices and electric bicycles[13] - Kangni France is fully owned (100% direct) and operates in La Rochelle, France, focusing on platform safety doors and rail vehicle interior systems[13] - Kangni USA is fully owned (100% direct) and operates in Albany, USA, specializing in rail transit equipment production and maintenance[13] - Kangni Thailand is fully owned (100% direct) and operates in Bangkok, focusing on platform safety doors and screen door systems[13] Financial Instruments and Risks - The company's financial instruments are exposed to market risks, including exchange rate risk and interest rate risk, with a focus on managing these risks within acceptable limits[17] - The fair value of trading financial assets at the end of the period is measured based on the closing price of the Shenzhen Stock Exchange[18] Guarantees and Liabilities - The company provided guarantees totaling RMB 24,300,000 for several subsidiaries, with guarantee periods extending up to 2026[20] - The company's total guarantee amount (including guarantees for subsidiaries) is RMB 203,469,893.68, accounting for 5.45% of the company's net assets[102] - The company's guarantee amount for subsidiaries is RMB 316,329,760.46[102] - The company's guarantee amount for entities with a debt-to-asset ratio exceeding 70% is RMB 117,468,057.24[102] - The company's board approved a guarantee limit of RMB 520 million for subsidiaries in 2022, including RMB 50 million for Kangni Electronics, RMB 80 million for Kangni Technology, RMB 130 million for Kangni Precision, and RMB 250 million for Kangni New Energy[102] Revenue and Profit - The company's revenue is segmented into Rail Division (RMB 2,210,274,348.36), New Energy Division (RMB 621,802,492.18), and Other Divisions (RMB 462,849,365.81), totaling RMB 3,294,926,206.35[27] - The company's net profit for the year was 290,509,063.78 RMB, up from 249,769,910.31 RMB in the previous period, representing a 16.3% increase[33] - The company's total revenue from external transactions was 314,038,040.71 RMB, up from 271,285,485.52 RMB in the previous period, representing a 15.8% increase[33] Investments and Assets - The company's total investment in subsidiaries increased to 325,427,098.91 RMB, up from 240,746,888.91 RMB in the previous period, representing a 35.2% increase[41] - The company's total assets increased to 5,958,145,545.03 RMB, up from 5,099,860,206.55 RMB in the previous period, representing a 16.8% increase[33] - The company's total liabilities increased to 2,258,857,960.20 RMB, up from 1,556,246,899.22 RMB in the previous period, representing a 45.1% increase[33] Accounts Receivable and Bad Debt - The company's total bad debt provision for the risk portfolio increased to 22,357,729.88 RMB, up from 14,822,582.41 RMB in the previous period, representing a 51% increase[30] - The company's total accounts receivable for the top five debtors was 429,554,863.74 RMB, accounting for 34.11% of the total accounts receivable balance[35] - The company's bad debt losses for the period include RMB -12,583,107.10 for accounts receivable and RMB -3,677,774.93 for notes receivable[46] Cash Flow and Operating Activities - The company's cash flow from operating activities decreased by RMB 476,980,500, a 100.61% drop compared to 2021, primarily due to a decrease in cash received from sales of goods and services by RMB 711,452,900[59] - Operating cash flow was negative RMB 317.12 million, a significant decline compared to the positive RMB 103.90 million in 2021[63] Market Share and Industry Outlook - The company's market share for urban rail vehicle door systems has exceeded 50% for over a decade, and its high-speed rail door system market share has also consistently exceeded 50%[67] - China's urban rail transit industry is expected to add 3,000 kilometers of new urban rail transit operation mileage during the 14th Five-Year Plan period[76] - By the end of 2025, China's railway operating mileage is expected to reach 165,000 kilometers, with high-speed railway mileage reaching 50,000 kilometers[77] Training and Development - The company conducted leadership training for 57 managers and technical training for 1,609 professionals in 2022[79] - The company's online learning platform, KN-ELN, launched 77 internal training courses and covered 100% of new employee training[80] Legal and Compliance - The company discovered that it overpaid 2.42 billion yuan to the original 20 shareholders of Longxin Technology during the acquisition process[97] - The company filed lawsuits against 17 original shareholders of Longxin Technology for violating the asset purchase agreement[97] - The company's lawsuits against the original shareholders of Longxin Technology were initially dismissed but later ordered to continue by the Jiangsu High People's Court[97] - The company received a criminal ruling from the Jiangsu High Court in May 2022, stating that Liao Liangmao is guilty of contract fraud and must return the criminal proceeds to the company. The execution case has been filed with the Nanjing Intermediate People's Court[98] Environmental and Social Responsibility - The company completed the environmental impact assessment and obtained approval for the bracket assembly robot and auxiliary facilities project in 2022[91] - The company conducted 2 emergency environmental incident drills in 2022, with post-drill evaluations and reports to enhance emergency response capabilities[91] - The company revised its environmental emergency response plan and related management systems, which were filed with the ecological environment bureau[92] - The company actively responded to heavy pollution weather emergency emission reduction requirements[92] Financial Reporting and Audits - The company paid a total of 1,400,000.00 for the services of Suya Jincheng Accounting Firm (Special General Partnership) for the 2022 annual report audit[95] - The company renewed its contract with Suya Jincheng Accounting Firm (Special General Partnership) for the 2022 annual report audit, including financial statement audits and internal control audits[95] - The company's financial report-related internal controls were audited by Suya Jincheng Accounting Firm, which issued a standard unqualified opinion[88] Investments and Financial Products - The company invested 135 million yuan in bank wealth management products using its own funds, with an outstanding balance of 54.5 million yuan[104] - The company invested 8 million yuan in securities firm products using its own funds[104] - A principal-guaranteed income certificate with Huatai Securities yielded an annualized return of 3.35%, generating 37.08 million yuan in actual income[107] - A 14 million yuan structured deposit with China CITIC Bank yielded an annualized return of 3.25%, generating 115.93 million yuan in actual income[107] - A 12.5 million yuan structured deposit with Nanjing Bank yielded an annualized return of 3.25%, generating 175.18 million yuan in actual income[107] - A 5 million yuan structured deposit with China Merchants Bank yielded an annualized return of 3.10%, generating 38.22 million yuan in actual income[107] - A 6 million yuan structured deposit with Bank of China is set to mature on February 10, 2023, with an annualized return of 3.663%[108] - A 12.5 million yuan structured deposit with Nanjing Bank is set to mature on May 10, 2023, with an annualized return of 3.25%[108] - A 5 million yuan structured deposit with China Merchants Bank is set to mature on February 1, 2023, with an annualized return of 2.85%[108] - A 5 million yuan structured deposit with Bank of Communications is set to mature on February 7, 2023, with an annualized return of 3.10%[108] Financial Statements and Accounting Policies - The company's financial statements are prepared using consistent accounting policies and periods across all subsidiaries[130] - The company's cash equivalents are defined as investments with a short maturity period (generally within three months from the date of purchase), high liquidity, and low risk of value fluctuation[133] - The company's merger costs are determined based on the fair value of assets, liabilities, and equity securities issued, along with any contingent consideration[125] - The company uses the spot exchange rate (middle rate) published by the People's Bank of China on the transaction date for initial recognition of foreign currency transactions[134] - Foreign currency monetary items are adjusted at the balance sheet date or settlement date using the spot exchange rate, with exchange differences recognized as financial expenses or capitalized if related to qualifying assets[134] - Foreign currency non-monetary items measured at historical cost are not adjusted for exchange rate changes, while those measured at fair value have exchange differences recognized in current profit or loss[134][135] - The company translates foreign currency financial statements using the spot exchange rate at the balance sheet date for assets and liabilities, and the transaction date rate for income and expenses[135] - Financial assets are classified into three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[138] - Financial liabilities are classified as either fair value through profit or loss or amortized cost[139] - Financial assets are initially measured at fair value, with transaction costs either expensed or capitalized depending on the classification[141] - Financial liabilities are initially classified as fair value through profit or loss or other financial liabilities, with transaction costs either expensed or capitalized accordingly[147] - The company designates certain non-trading equity investments as fair value through other comprehensive income, with dividend income recognized in profit or loss and fair value changes in other comprehensive income[146] - For financial liabilities designated as fair value through profit or loss, changes in fair value due to the company's own credit risk are recognized in other comprehensive income[148] - The company terminates recognition of financial assets when it transfers substantially all risks and rewards of ownership, and recognizes any resulting rights or obligations as separate assets or liabilities[150] - Financial liabilities are derecognized when the present obligation is discharged, with the difference between the carrying amount and the consideration paid recognized in profit or loss[151] - Financial assets and liabilities are presented separately on the balance sheet unless specific conditions for netting are met[152] - Equity instruments are treated as equity changes when issued, repurchased, sold or cancelled, with related transaction costs deducted from equity[155] - Fair value of financial instruments is determined using active market quotes or valuation techniques with observable inputs prioritized[156] - Expected credit losses are recognized for financial assets measured at amortized cost or fair value through other comprehensive income[157] - Credit risk is considered significantly increased if the probability of default is substantially higher than at initial recognition, or if payments are overdue by 30 days or more[162] - Expected credit losses are calculated using probability-weighted present value of cash flow shortfalls based on past events, current conditions and future economic forecasts[158] - Receivables are grouped based on credit risk characteristics to calculate expected credit losses when individual assessment is not feasible[163] - Loss allowances for financial assets measured at fair value through other comprehensive income are recognized in profit or loss while adjusting other comprehensive income[163] - Inventory is classified into in-transit materials, raw materials, packaging materials, work-in-progress, and finished goods[166] - The company uses the weighted average method for valuing issued materials and finished goods[166] - Inventory is measured at the lower of cost or net realizable value, with net realizable value determined based on estimated selling price minus selling expenses and taxes[166] - The company uses the perpetual inventory system and conducts regular physical inventory counts[168] - Contract assets are recognized when the company has the right to consideration for goods transferred to customers, contingent on factors other than time passage[169] - The company classifies non-current assets or disposal groups as held for sale when they are available for immediate sale and the sale is highly probable within one year[171] - Long-term equity investments are initially measured at cost, including directly attributable costs and taxes[174] - The company uses the cost method for long-term equity investments in subsidiaries and recognizes dividends as investment income[175] - For joint ventures and associates, the company uses the equity method and adjusts the investment cost if the initial cost differs from the share of net assets[176] - The company recognizes investment income from associates and joint ventures by offsetting unrealized internal transaction profits based on the shareholding ratio before confirming investment gains or losses[178] - The company determines the basis for joint control and significant influence over investees, with joint control requiring unanimous agreement among parties sharing control[179] - Fixed assets are recognized when economic benefits are likely to flow to the company and the cost can be reliably measured[180] - Depreciation methods and rates for fixed assets include straight-line method with annual rates ranging from 4.75% to 31.67% depending on the asset category[182] - Finance lease assets are recognized based on the lower of fair value or present value of minimum lease payments, with depreciation policies consistent with owned assets[183] - Construction in progress is converted to fixed assets when the asset reaches its intended usable state, with costs including direct materials, labor, and machinery expenses[184] - Borrowing costs are capitalized when directly attributable to the acquisition, construction, or production of qualifying assets, with capitalization starting when expenditures are incurred and activities begin[186] - Capitalization of borrowing costs is suspended if the construction or production of qualifying assets is interrupted abnormally for more than 3 months[186] - Borrowing costs cease to be capitalized when the qualifying asset reaches its intended usable or saleable state[187] - The amount of borrowing costs to be capitalized is determined by the actual interest expense on specific borrowings, less any interest income from unused funds[187] - The company capitalizes interest on general borrowings based on the weighted average of accumulated asset expenditures exceeding specific borrowings, multiplied by the capitalization rate of the general borrowings[188] - For leases other than short-term and low-value asset leases, the company recognizes right-of-use assets and lease liabilities at the commencement of the lease term, with depreciation and interest expenses recognized over the lease term[189] - The company uses the cost model for subsequent measurement of right-of-use assets, which is cost less accumulated depreciation and impairment losses[190] - The company capitalizes development stage expenditures for internally developed intangible assets if they meet specific criteria, including technical feasibility and the ability to generate future economic benefits[195] - The company amortizes intangible assets with finite useful lives using the straight-line method over their useful lives, with no residual value[192] - The company conducts impairment tests for long-term assets, including goodwill and intangible assets with indefinite useful lives, at least annually[197] - The company capitalizes foreign exchange differences on principal and interest of foreign currency-specific borrowings during the capitalization period[188] - The company recognizes lease incentives and initial direct costs in the initial measurement of right-of-use assets[189] - The company amortizes software over a useful life of 2-10 years with an annual amortization rate of 50.00-10.00%[193] - The company capitalizes borrowing costs related to specific borrowings and general borrowings based on the weighted average of accumulated expenditures[188] - The company conducts impairment tests on goodwill by allocating its book value to relevant asset groups or combinations based on their fair value or book value proportions[198] - Long-term deferred expenses are amortized using the straight-line method over their beneficial periods[199] - Contract liabilities are recognized when the company receives or is entitled to receive payment from customers before transferring goods[200]

Financial Performance - The company's operating revenue for Q1 2023 was ¥607,315,711.02, representing a decrease of 11.98% compared to the same period last year[2]. - Net profit attributable to shareholders was ¥33,269,731.33, an increase of 29.98% year-on-year[2]. - The net profit after deducting non-recurring gains and losses was ¥21,770,484.27, showing a significant increase of 90.00% compared to the previous year[2]. - The basic earnings per share for the period was ¥0.03, up by 29.83% year-on-year[2]. - Total revenue for Q1 2023 was ¥607.32 million, a decrease of 12.0% compared to ¥689.95 million in Q1 2022[18]. - Net profit for Q1 2023 reached ¥35.27 million, an increase of 26.4% from ¥27.88 million in Q1 2022[19]. - Operating profit for Q1 2023 was ¥39.65 million, up 26.7% from ¥31.31 million in Q1 2022[18]. - Total comprehensive income for Q1 2023 was ¥35.28 million, an increase of 27.0% from ¥27.76 million in Q1 2022[19]. Cash Flow - The company reported a net cash flow from operating activities of -¥151,630,062.34, which is not applicable for comparison[2]. - Cash flow from operating activities for Q1 2023 was negative at ¥151.63 million, an improvement from negative ¥317.12 million in Q1 2022[21]. - Cash flow from investing activities for Q1 2023 was negative at ¥43.49 million, compared to positive ¥175.08 million in Q1 2022[21]. - Cash flow from financing activities for Q1 2023 was positive at ¥4.31 million, a turnaround from negative ¥18.21 million in Q1 2022[21]. - The company's cash and cash equivalents decreased from 1,333,446,351.81 RMB at the end of 2022 to 1,122,021,788.40 RMB by March 31, 2023[13]. - The ending cash and cash equivalents balance was $824.16 million in Q1 2023, down from $986.44 million in Q1 2022[28]. Assets and Liabilities - The company's total assets at the end of the reporting period were ¥5,814,280,126.37, a decrease of 2.97% from the end of the previous year[2]. - The total current assets as of March 31, 2023, amounted to 5,187,865,384.24 RMB, a decrease from 5,379,509,303.42 RMB on December 31, 2022[13]. - The total liabilities as of March 31, 2023, were 2,048,601,405.63 RMB, down from 2,261,538,723.62 RMB at the end of 2022[15]. - The company's total equity increased from 3,730,403,420.38 RMB at the end of 2022 to 3,765,678,720.74 RMB by March 31, 2023[15]. - The company's total liabilities decreased to CNY 1,807,375,382.28 from CNY 1,865,719,985.04 at the end of 2022[23]. Operational Challenges - The decline in operating revenue was primarily due to project demand delays, resulting in a reduction of approximately ¥97 million in the rail business revenue[3]. - The company is facing risks related to administrative penalties and potential investor lawsuits due to past violations[11]. - The company has initiated legal proceedings against the original shareholders of Longxin Technology for compensation related to performance commitments[10]. Inventory and Expenses - The company's inventory increased to CNY 311,046,148.61 in Q1 2023, compared to CNY 266,087,659.25 in Q4 2022, reflecting a 16.9% increase[22]. - Research and development expenses for Q1 2023 were CNY 31,218,791.27, slightly down from CNY 33,360,528.46 in Q1 2022[24]. - The company's cash paid for purchasing goods and services was $305.99 million in Q1 2023, a decrease from $364.72 million in Q1 2022, indicating a reduction of approximately 16%[27]. - The cash paid to employees was $124.86 million in Q1 2023, down from $140.57 million in Q1 2022, representing a decrease of about 11%[27]. Financial Indicators - Significant changes in financial indicators included a 61.05% increase in right-of-use assets due to new leases[4]. - The company experienced a 140.19% increase in lease liabilities, attributed to new lease agreements during the period[4]. - The weighted average return on equity increased by 0.16 percentage points to 0.92%[2].

Financial Performance - The company's operating revenue for Q3 2022 was ¥764,128,971.42, a decrease of 9.26% compared to the same period last year[3]. - The net profit attributable to shareholders for the first nine months of 2022 was ¥168,980,703.71, down 48.61% year-on-year[3]. - The basic earnings per share for Q3 2022 was ¥0.06, a decline of 25.00% compared to the previous year[4]. - Net profit for Q3 2022 was ¥185,775,095.59, down from ¥330,645,794.77, representing a decline of about 43.8%[26]. - The net profit for the first three quarters of 2022 was ¥275.08 million, a decrease of 40.4% compared to ¥461.37 million in the previous year[32]. Cash Flow - The net cash flow from operating activities for the first nine months of 2022 was -¥382,101,307.83, indicating a significant cash outflow[3]. - Cash flow from operating activities showed a net outflow of ¥382,101,307.83 compared to a net outflow of ¥161,227,605.29 in the same period last year[29]. - The company's cash flow from operating activities showed a significant decline, with a net decrease of ¥464.69 million in Q3 2022[30]. - Total cash inflow from operating activities decreased to 1.02 billion in 2022 from 1.61 billion in 2021, a drop of about 36.4%[35]. - Cash outflow from operating activities also decreased to 1.41 billion in 2022 from 1.78 billion in 2021, reflecting a reduction of approximately 20.7%[35]. Assets and Liabilities - The total assets at the end of Q3 2022 were ¥5,799,223,330.84, a slight decrease of 0.65% from the end of the previous year[4]. - As of September 30, 2022, the company's total assets amounted to ¥5,799,223,330.84, a slight decrease from ¥5,837,241,809.35 at the end of 2021[19]. - The company's total liabilities decreased to ¥2,191,102,660.68 from ¥2,407,186,977.54, indicating a reduction of about 9%[21]. - The company's total liabilities decreased to ¥1.98 billion from ¥2.13 billion, indicating a reduction of approximately 7.1%[31]. - The company's total current assets were ¥5,187,641,044.46, compared to ¥5,190,039,934.31 at the end of 2021, indicating a marginal decline[19]. Equity - The company's equity attributable to shareholders increased by 5.06% year-on-year, reaching ¥3,507,676,963.85[4]. - The company's equity attributable to shareholders increased to ¥3,507,676,963.85 from ¥3,338,630,126.60, reflecting an increase of approximately 5.1%[21]. - The company's total equity increased to ¥3.04 billion as of September 30, 2022, compared to ¥2.76 billion at the end of 2021, marking an increase of approximately 10.1%[32]. Legal Matters - The company is pursuing legal action against the original shareholders of Longxin Technology, seeking the return of 787 million RMB and 257 million RMB in share transfer payments, along with corresponding interest[15]. - As of the end of the reporting period, some of the lawsuits related to performance compensation have been initiated, and the company is actively taking measures to protect its and shareholders' legal rights[15]. - The company has initiated litigation against performance compensation parties following the second-instance judgment in the Liao Liangmao contract fraud case, with some cases already in court[15]. - The company received a court ruling in June 2022 to continue the litigation against the original shareholders of Longxin Technology, indicating ongoing legal proceedings[16]. - Liao Liangmao was sentenced to life imprisonment for contract fraud, and the company is pursuing the recovery of 1.93297884095 billion RMB in criminal proceeds[11]. Operational Highlights - Revenue from the rail transit main business decreased by ¥398 million, a drop of 20.44%, primarily due to production halts caused by the pandemic[7]. - Revenue from new energy vehicle components increased by ¥173 million, a growth of 67.78%, driven by the rapid development of the new energy vehicle industry[7]. - Total operating costs decreased to ¥2,099,537,348.32 from ¥2,247,522,958.72, a reduction of approximately 6.6% year-over-year[25]. - Research and development expenses were ¥196,701,367.46, slightly down from ¥199,762,905.45, a decrease of about 1.0%[25]. - Research and development expenses for the first three quarters of 2022 were ¥105.38 million, down from ¥116.75 million in the same period of 2021, representing a decrease of about 9.7%[32].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,536,764,044.73, a decrease of 11.14% compared to ¥1,729,494,354.50 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥106,539,183.04, down 56.66% from ¥245,847,979.86 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥107,771,972.60, a decrease of 51.68% compared to ¥223,031,536.80 in the same period last year[20]. - The basic earnings per share decreased by 56.65% to 0.1073 RMB compared to 0.2475 RMB in the same period last year[22]. - The company reported a revenue of 1.537 billion RMB for the first half of the year, a decrease of 1.93 billion RMB or 11.14% compared to the same period last year[22]. - The net profit attributable to shareholders was 107 million RMB, down 1.39 billion RMB or 56.66% year-on-year, primarily due to a decline in the revenue share of the higher-margin rail business[23]. - The company achieved a sales revenue of CNY 1.54 billion, a year-on-year decrease of 11.14%[36]. - The net profit attributable to shareholders was CNY 107 million, down 56.66% year-on-year, while the net profit after deducting non-recurring gains and losses was CNY 108 million, a decrease of 51.68%[36]. - The company reported a total profit of CNY 126,816,560.62, down 53.1% from CNY 269,402,468.62 in the same period last year[113]. - The company’s total comprehensive income for the first half of 2022 was CNY 114,187,500.58, a decrease of 53.3% compared to CNY 244,286,560.75 in the same period of 2021[113]. Cash Flow and Assets - The net cash flow from operating activities was -¥213,221,582.46, compared to -¥288,125,211.32 in the previous year, indicating an improvement[21]. - The company’s cash and cash equivalents decreased by 1.36% to CNY 1.46 billion, accounting for 24.67% of total assets[39]. - The accounts receivable increased by 21.62% to CNY 1.81 billion, representing 30.70% of total assets[39]. - The total assets increased by 1.23% to ¥5,908,883,483.84 from ¥5,837,241,809.35 at the end of the previous year[21]. - The total current assets as of June 30, 2022, amounted to RMB 5,285,099,982.14, an increase from RMB 5,190,039,934.31 at the beginning of the period, reflecting a growth of approximately 1.83%[104]. - Cash and cash equivalents decreased to RMB 1,457,851,741.96 from RMB 1,477,913,965.40, indicating a decline of about 1.36%[104]. - The company reported a net loss of CNY 1,025,010,930.30, an improvement from a loss of CNY 1,131,550,113.34 in the previous period[106]. - The total liabilities decreased to CNY 2,364,641,151.45 from CNY 2,407,186,977.54, a decrease of approximately 1.77%[106]. Research and Development - The company’s R&D expenses were CNY 124 million, a decrease of 6.86% year-on-year[36]. - The company has developed several innovative technologies in rail vehicle door systems, including a core technology for automatic door locking and a new generation of micro-motion door products[31][32]. - The company has established a comprehensive technology innovation system and is committed to developing new products that meet user needs and solve customer pain points[31]. Market Position and Competition - The company maintains a market share of over 50% in domestic urban rail vehicle door systems and has a leading global market share in rail vehicle door systems according to SCI reports[30]. - The company maintains a market share of over 50% in both the domestic urban rail market and the high-speed train market, positioning itself as a leading enterprise globally[50]. - The company has identified major risk factors including macroeconomic and policy changes, market competition, and potential performance compensation risks from related parties[8]. Legal and Compliance Issues - The company is actively pursuing legal measures to recover compensation from performance commitment parties due to significant losses incurred by a subsidiary, with ongoing litigation regarding this matter[52]. - The company confirmed a provision of RMB 35.03 million for investor compensation in the first half of 2022, reflecting ongoing legal challenges[80]. - The company is pursuing legal action against 17 original shareholders of Longxin Technology for economic losses due to alleged breaches of the asset purchase agreement[81]. - The company has been involved in a significant lawsuit regarding the acquisition of 100% equity in Longxin Technology, with a total payment of 2.42 billion RMB to the original 20 shareholders[81]. Environmental and Social Responsibility - The company has established an environmental management system compliant with ISO14001 to ensure systematic and standardized environmental management[68]. - The company has committed to increasing its environmental protection budget to support its management needs and reduce pollutant emissions[68]. - The company is currently implementing an environmental impact assessment for its smart paint line project, which is in the process of being compiled[64]. - The company has reduced the use of VOCs cleaning agents by approximately 50% through process improvements aimed at lowering material consumption[69]. Shareholder and Governance - The company has a relatively dispersed shareholding structure, with the largest shareholder holding only 8.57%, which may pose risks of takeover and control changes[52]. - The company appointed a new board of directors and management team as of June 30, 2022, following the election at the annual general meeting[60]. - The company did not propose any profit distribution or capital reserve transfer plans for the half-year, with no dividends or stock bonuses declared[61]. Financial Instruments and Accounting Policies - The company recognizes expected credit losses for financial assets measured at amortized cost and debt instruments measured at fair value through other comprehensive income based on a probability-weighted present value of cash flow differences[182]. - Financial assets are initially measured at fair value, with transaction costs accounted for differently based on the asset category[170]. - The company assesses expected credit losses for accounts receivable, contract assets, and related receivables based on the entire duration's expected credit loss, without significant financing components[183].

Financial Performance - The net profit attributable to the parent company's shareholders for 2021 was CNY 370,396,645.41, with accumulated undistributed profits amounting to CNY -1,131,550,113.34[6] - The company will not distribute cash dividends or stock dividends for 2021 due to negative accumulated undistributed profits[6] - In 2021, the company achieved operating revenue of CNY 3,525,220,662.26, an increase of 6% compared to 2020[23] - The net profit attributable to shareholders was CNY 370,396,645.41, a decrease of 13.16% from the previous year, primarily due to a provision for investor compensation losses of CNY 65,991,000[25] - The net cash flow from operating activities was CNY 474,093,671.61, down 19.14% year-on-year, attributed to increased cash outflows for purchasing goods and services[25] - The company's total assets at the end of 2021 were CNY 5,837,241,809.35, reflecting a 7.81% increase from the end of 2020[23] - The weighted average return on equity decreased to 11.75% in 2021, down 3.73 percentage points from 2020[24] - The basic earnings per share for 2021 was CNY 0.37, a decrease of 13.95% compared to 2020[24] - The company reported a net asset attributable to shareholders of CNY 3,338,630,126.60 at the end of 2021, an increase of 12.47% from the previous year[23] Revenue Breakdown - Revenue from the rail transit main business was CNY 265,270,060.00, a decrease of 5.4% year-on-year, due to project delays caused by the pandemic[25] - Revenue from new energy vehicle components increased by 129.45% to CNY 21,265,120.00, driven by growth in the new energy vehicle industry[25] - The company's operating revenue for the rail transit main business in 2021 was CNY 2.653 billion, a decrease of CNY 152 million or 5.43% compared to the previous year[35] - The sales revenue from the new energy vehicle parts business increased by CNY 213 million compared to 2020[35] Legal and Compliance Issues - As of April 29, 2022, the Nanjing Intermediate People's Court has accepted 8 claims from investors against the company, with a provision for estimated liabilities recognized at CNY 65,991,000[5] - The company has not confirmed any performance compensation income from Longxin Technology due to unmet performance targets as of December 31, 2019[5] - The company is involved in significant litigation, including a case against 20 former shareholders of Longxin Technology for breaching the "Agreement on Issuing Shares and Paying Cash to Purchase Assets" and seeking compensation[156] - The Jiangsu High Court upheld the lower court's decision to dismiss the company's lawsuit against the defendants due to the case being classified as involving economic crime, not a general economic dispute[156] - The company has been under investigation by the China Securities Regulatory Commission since August 22, 2018, and received an administrative penalty notice on May 12, 2020[157] - The company received a penalty of 300,000 RMB from the China Securities Regulatory Commission for violations of the Securities Law[158] Corporate Governance - The company has established a sound corporate governance structure and internal control system, ensuring compliance with relevant laws and regulations[98] - The annual shareholders' meeting on May 14, 2021, approved all eight ordinary resolutions with over 50% of voting rights present[99] - The total remuneration for directors and senior management during the reporting period amounted to CNY 2,216.14 million, with a decrease of CNY 41.88 million compared to the previous year[101] - The company has implemented measures to enhance the management of insider information and strengthen information disclosure practices[98] - The company’s board of directors has not raised any objections to company matters during the reporting period[114] Research and Development - Research and development expenses rose by 11.29% to 285 million RMB, reflecting the company's commitment to innovation[51] - The number of R&D personnel was 677, accounting for 20.90% of the total workforce[63] - The company has established a technology center for independent research and development, focusing on key technologies and market trends in the rail transit door systems and other main products[42] - The company has developed innovative technologies, including the "variable lead drive and locking" system for automatic doors, which has received national and international patents[45] Market Expansion and Strategy - The company actively expanded its market presence, establishing operations in Zhengzhou and setting up branches in Wuhan, Jinan, and Guiyang[39] - The company aims to focus on the core business of rail transit products and the growth business of new energy vehicle components, with a strategic positioning of a "smart transportation equipment platform" centered on electromechanical technology[84] - The company is committed to maintaining the integrity of its financial practices and ensuring compliance with legal obligations regarding investor compensation[151] Environmental Responsibility - The company has completed an environmental impact assessment for the 2021 bracket assembly robot project, which is currently in progress[135] - The company has reduced the use of VOCs cleaning agents by approximately 50% through process improvements[140] - The company has established an environmental protection management responsibility system, ensuring accountability at all levels[139] - The company has made significant investments in environmental protection, ensuring compliance with environmental management needs[139] Shareholder Information - The total number of ordinary shareholders increased to 28,199 by the end of the reporting period, up from 26,532 in the previous month[179] - The top ten shareholders hold a total of 85,094,595 shares, representing 8.57% of the total shares[181] - The largest shareholder, Nanjing Engineering Institute Asset Management Co., Ltd., holds 85,094,595 shares, with no restrictions on sale[181] - The company has a diversified shareholding structure with no controlling shareholder, with major shareholders being asset management companies holding over 5%[184] Financial Management - The company has entrusted cash asset management with a total of 1,590,000,000.00 RMB in bank wealth management products[166] - The company has consistently recovered principal and interest from all financial investments, indicating effective management of financial assets[168] - The company plans to continue engaging in entrusted financial management in the future, reflecting a strategy for capital growth[168]