Financial Performance - The company's operating revenue for the first half of 2022 was ¥512,835,165.43, a decrease of 0.41% compared to ¥514,955,270.46 in the same period last year[21]. - Net profit attributable to shareholders increased by 39.58% to ¥20,612,901.25 from ¥14,768,160.67 year-on-year[21]. - The net profit after deducting non-recurring gains and losses rose by 62.69% to ¥19,806,808.50 compared to ¥12,174,605.84 in the previous year[21]. - The basic earnings per share increased by 39.53% to ¥0.0300 from ¥0.0215 in the same period last year[21]. - The weighted average return on equity rose significantly by 14.48 percentage points to 16.80% from 2.32% year-on-year[21]. - The gross profit margin for the main business slightly increased due to the appreciation of the US dollar and a slight rise in sales prices[40]. - The company reported a total revenue of 2,526.38 million CNY for the first half of 2022, reflecting a significant increase compared to the previous period[113]. - The total comprehensive income for the first half of 2022 was CNY 20,216,252.59, an increase from CNY 14,495,022.09 in the first half of 2021[175]. - The total comprehensive income for the current period was 14.273 million, a decrease of 8.5% compared to the previous period[189]. - The total revenue for the current period is 14.768 million, reflecting a decrease of 0.6% compared to the previous period[190]. Assets and Liabilities - Total assets decreased by 5.72% to ¥1,381,955,112.78 from ¥1,465,874,829.10 at the end of the previous year[21]. - The company's total liabilities decreased to CNY 1,244,573,541.18 from CNY 1,349,142,125.27, representing a reduction of about 7.8%[168]. - Current assets totaled CNY 1,074,419,266.84, down from CNY 1,156,285,103.64, indicating a decrease of approximately 7.1%[166]. - The total liabilities amounted to CNY 549,340,842.07, slightly up from CNY 544,306,298.22 year-on-year[174]. - The total equity of the company decreased to CNY 80,430,148.81 from CNY 140,298,489.71 in the previous year, indicating a decline of 42.7%[174]. - The company's total equity increased to CNY 137,381,571.60 from CNY 116,732,703.83, representing an increase of approximately 17.7%[168]. Cash Flow - The net cash flow from operating activities showed a significant decline of 107.60%, dropping to -¥16,207,008.91 from ¥213,247,677.78 in the same period last year[21]. - Cash inflow from operating activities was 551,682,446.81 CNY, down 70.6% from 1,872,028,153.21 CNY in the first half of 2021[180]. - The ending balance of cash and cash equivalents was 134,224,052.45 CNY, down from 200,244,184.28 CNY at the end of the first half of 2021[181]. - The company reported a cash and cash equivalents net increase of 4,622,778.34 CNY, a significant drop from 107,409,880.24 CNY in the same period of 2021[181]. Investments and R&D - Research and development investment increased by 30.60% year-on-year, totaling CNY 13.77 million, primarily due to an increase in R&D personnel[44]. - The company has allocated 20 million yuan for research and development in new technologies for the upcoming fiscal year[186]. - The company is actively cultivating skilled talent, with a focus on enhancing its research and development capabilities[35]. - The company completed 29 patent applications during the reporting period, indicating a focus on innovation[42]. Market and Production Capacity - The company has an annual production capacity of approximately 800,000 industrial sewing machines, making it one of the largest production bases globally[30]. - The company’s products account for over 85% of the global output of sewing machines, positioning China as the largest manufacturing country in this sector[30]. - The company plans to expand its market presence and invest in new product development to drive future growth[186]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[189]. Risks and Challenges - The company faces significant risks including a 48.45% revenue dependency on export business, which is primarily settled in USD, exposing it to exchange rate fluctuations[79]. - The company has identified that direct material costs account for approximately 80% of its total costs, making it vulnerable to raw material price increases[80]. - The company is under investigation by the China Securities Regulatory Commission for alleged information disclosure violations, which could lead to significant penalties[80]. - The company is actively appealing a court ruling that could impose significant financial liabilities, which may affect its financial stability[83]. Corporate Governance and Compliance - The annual shareholders meeting had a participation rate of 29.94% and was held in June 2022[88]. - There were no changes in the board of directors, supervisors, or senior management during the reporting period[89]. - The company has not encountered any major changes in the investment direction of the raised funds, maintaining a focus on strategic growth initiatives[65]. - The company is actively cooperating with the China Securities Regulatory Commission regarding an ongoing investigation initiated on March 23, 2022[109]. Environmental and Social Responsibility - The company emphasizes employee welfare by ensuring timely payment of salaries and providing medical insurance and health check-ups[99]. - The company has established an emergency response plan for environmental incidents, which includes various specialized response teams[96]. - The company has installed an online monitoring system for pollution sources, which has passed inspection by environmental authorities[97]. - Zhongjie Technology has a wastewater treatment capacity of 50 tons per day, and the operation is reported to be normal[95].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥512,835,165.43, a decrease of 0.41% compared to ¥514,955,270.46 in the same period last year[21]. - Net profit attributable to shareholders increased by 39.58% to ¥20,612,901.25 from ¥14,768,160.67 year-on-year[21]. - The net profit after deducting non-recurring gains and losses rose by 62.69% to ¥19,806,808.50 compared to ¥12,174,605.83 in the previous year[21]. - The basic earnings per share increased by 39.53% to ¥0.0300 from ¥0.0215 in the same period last year[21]. - The weighted average return on equity rose significantly by 14.48 percentage points to 16.80% from 2.32% year-on-year[21]. - The gross profit margin for the main business slightly increased due to the appreciation of the US dollar and a slight rise in sales prices[40]. - The company reported a net profit of 373 million yuan for the current period, down from 432 million yuan in the previous year, indicating a decline of 13.65%[187]. - The total comprehensive income for the first half of 2022 was 14 million, indicating a significant decline from the previous year[190]. Assets and Liabilities - Total assets decreased by 5.72% to ¥1,381,955,112.78 from ¥1,465,874,829.10 at the end of the previous year[21]. - The company's total liabilities as of June 30, 2022, were CNY 1,244,573,541.18, down from CNY 1,349,142,125.27 at the start of the year, indicating a reduction of about 7.8%[168]. - The total equity attributable to shareholders of the parent company increased to CNY 132,949,660.43 from CNY 112,397,133.14, reflecting a growth of approximately 18.4%[168]. - The company's total liabilities were reported at 3.6 billion yuan, which is an increase of 2.4% compared to the previous year[187]. Cash Flow - The net cash flow from operating activities showed a significant decline of 107.60%, dropping to -¥16,207,008.91 from ¥213,247,677.78 in the same period last year[21]. - Cash inflow from operating activities totaled 551,682,446.81 CNY, down from 1,872,028,153.21 CNY in the previous year[180]. - Cash outflow from operating activities was 567,889,455.72 CNY, compared to 1,658,780,475.43 CNY in the same period of 2021[180]. - The ending balance of cash and cash equivalents was 134,224,052.45 CNY, down from 200,244,184.28 CNY at the end of the first half of 2021[181]. Investment and R&D - The company has invested 130 million RMB in advanced flexible manufacturing lines, significantly improving production efficiency and capacity[36]. - Research and development investment increased by 30.60% year-on-year, totaling CNY 13.77 million, primarily due to an increase in R&D personnel[44]. - The company completed 29 patent applications during the reporting period, indicating a focus on innovation[42]. - The company is actively pursuing digital transformation initiatives to enhance management efficiency and operational effectiveness[42]. Market and Sales - The company has established a marketing network consisting of nearly 500 first-level distributors, enhancing brand visibility and market reach[34]. - Domestic sales of sewing equipment saw a significant decline, with a year-on-year drop of 19.24% in domestic revenue[47]. - Domestic sales amounted to ¥259.81 million, reflecting a decrease of 16.95% year-on-year, while overseas sales increased by 32.43% to ¥248.45 million[49]. Risks and Legal Matters - The report highlights potential risks and future plans, urging investors to pay attention to investment risks[3]. - The company faces significant risks, including a 48.45% revenue exposure to foreign markets, making it vulnerable to exchange rate fluctuations, particularly against the US dollar[80]. - The company is under investigation by the China Securities Regulatory Commission for alleged information disclosure violations, which could lead to significant penalties and potential delisting risks[80]. - The company is appealing a court ruling that could impose significant financial liabilities, which may affect its financial stability and operations[83]. Corporate Governance - The annual shareholders meeting had a participation rate of 29.94% and was held in June 2022[88]. - There were no changes in the board of directors, supervisors, or senior management during the reporting period[89]. - The company has not encountered any significant changes in the planned investment direction or expected returns for the projects[65]. Environmental and Social Responsibility - The company emphasizes employee welfare by ensuring timely payment of salaries and providing medical insurance and health check-ups[99]. - The company has established an emergency response plan for environmental incidents, which includes various specialized teams[96]. - The company has installed an online monitoring system for pollution sources, which has passed inspection by environmental authorities[97].

Key Financial Data [Key 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) The company achieved strong growth in Q1 2022, though net operating cash flow was negative and total assets slightly declined Key Financial Indicators for Q1 2022 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 305,013,683.65 | 236,543,412.06 | 28.95% | | Net Profit Attributable to Shareholders (RMB) | 14,751,030.39 | 9,029,258.27 | 63.37% | | Net Cash Flow from Operating Activities (RMB) | -41,102,542.28 | -25,096,506.80 | -63.78% | | Basic Earnings Per Share (RMB/Share) | 0.0214 | 0.0128 | 67.19% | | Weighted Average Return on Equity | 12.32% | 1.42% | Increased by 10.90 percentage points | | | **End of Current Period** | **End of Prior Year** | **Period-over-Period Change** | | Total Assets (RMB) | 1,438,858,502.23 | 1,465,874,829.10 | -1.84% | | Equity Attributable to Shareholders (RMB) | 127,150,114.17 | 112,397,133.14 | 13.13% | [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) Non-recurring gains totaled RMB 2.09 million, primarily driven by interest income from large-denomination bank certificates of deposit Details of Non-recurring Gains and Losses | Item | Amount for Current Period (RMB) | Note | | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -275,886.12 | Mainly from disposal of fixed assets | | Government Grants Recognized in Current Profit/Loss | 114,402.72 | - | | Gain/Loss from Trading Financial Assets/Liabilities | 2,265,260.96 | Mainly interest income from bank certificates of deposit | | Other Non-operating Income and Expenses | -16,927.18 | - | | **Total** | **2,086,850.38** | **--** | [Analysis of Major Financial Data Changes](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%E5%92%8C%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%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant fluctuations occurred across financial metrics, including higher receivables, surging expenses, and declining cash flows - Reasons for Balance Sheet Item Changes: - **Accounts Receivable** increased by **56.91%** from the beginning of the period due to sales growth - **Prepayments** decreased by **66.88%** from the beginning of the period, mainly due to reduced prepayments for subsidiary trading businesses - **Cash and Cash Equivalents** decreased by **35.71%** from the beginning of the period, as funds were allocated to production and operations[8](index=8&type=chunk) - Reasons for Income Statement Item Changes: - **R&D Expenses** increased by **109.87%** YoY, driven by higher salaries for R&D personnel and material costs - **Financial Expenses** rose by **187.58%** YoY, due to increased interest expenses and exchange losses - **Investment Income** grew by **513.09%** YoY, resulting from interest income on purchased bank certificates of deposit[10](index=10&type=chunk) - Reasons for Cash Flow Statement Item Changes: - **Net Cash Flow from Operating Activities** decreased by **63.78%** YoY, as cash paid to employees increased due to bonus payments - **Net Cash Flow from Investing Activities** declined by **108.26%** YoY, as a RMB 72.8 million investment recovery in the prior year period did not recur - **Net Cash Flow from Financing Activities** dropped by **103.17%** YoY, due to a significant increase in cash paid for debt repayment[11](index=11&type=chunk) Shareholder Information [Shareholder Holdings](index=4&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) The company had 22,512 common shareholders, with Yuhuan Hengjie Venture Capital being the largest, holding an 18.84% stake - At the end of the reporting period, the total number of common shareholders was **22,512**[13](index=13&type=chunk) Top Three Shareholders | Shareholder Name | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | | Yuhuan Hengjie Venture Capital Partnership (Limited Partnership) | 18.84% | 129,605,889 | | Ningbo Yuanxi Equity Investment Partnership (Limited Partnership) | 6.18% | 42,523,997 | | Southwest Securities Co., Ltd. | 5.00% | 34,390,700 | Other Important Matters [Material Litigation, Regulatory Actions, and Shareholder Changes](index=5&type=section&id=%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E7%9B%91%E7%AE%A1%E5%8F%8A%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8A%A8) The company is managing an ongoing lawsuit, a planned share reduction by a major shareholder, a CSRC investigation, and a change in control - The company is involved in a lawsuit regarding a "shortfall make-up agreement" with Guangzhou Rural Commercial Bank and has appealed an unfavorable first-instance ruling related to a guarantee for a RMB 2.5 billion trust loan[14](index=14&type=chunk)[15](index=15&type=chunk) - The third-largest shareholder, Southwest Securities, plans to reduce its stake by no more than **1% of the total share capital** and has already sold **0.38%** between March 23 and 28[16](index=16&type=chunk) - On March 23, 2022, the China Securities Regulatory Commission (CSRC) initiated an investigation into the company for **suspected violations of information disclosure laws and regulations**[16](index=16&type=chunk) - On April 28, 2022, the Board of Directors re-identified the controlling shareholder as **Yuhuan Hengjie** and the actual controller as the **Yuhuan Municipal Finance Bureau**[17](index=17&type=chunk) Quarterly Financial Statements [Financial Statement Details](index=6&type=section&id=(%E4%B8%80)%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the unaudited consolidated financial statements for the first quarter of 2022 [Consolidated Balance Sheet](index=6&type=section&id=1%E3%80%81%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 stood at RMB 1.44 billion, while equity attributable to the parent company grew by 13.13% Key Balance Sheet Items | Item | Closing Balance (RMB) | Opening Balance (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,438,858,502.23 | 1,465,874,829.10 | -1.84% | | Total Liabilities | 1,307,282,845.61 | 1,349,142,125.27 | -3.10% | | Equity Attributable to Parent Company | 127,150,114.17 | 112,397,133.14 | 13.13% | [Consolidated Income Statement](index=8&type=section&id=2%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2022, total operating revenue grew 28.95% YoY to RMB 305 million, boosting net profit attributable to the parent company by 63.37% Key Income Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 305,013,683.65 | 236,543,412.06 | 28.95% | | Total Operating Costs | 289,798,485.08 | 224,661,507.92 | 29.00% | | Total Profit | 14,000,343.36 | 10,118,432.01 | 38.37% | | Net Profit Attributable to Parent Company | 14,751,030.39 | 9,029,258.27 | 63.37% | [Consolidated Cash Flow Statement](index=10&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Cash flow weakened as operating activities generated a net outflow of RMB 41.10 million, while investing and financing activities also turned negative Key Cash Flow Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -41,102,542.28 | -25,096,506.80 | -63.78% | | Net Cash Flow from Investing Activities | -5,832,541.12 | 70,632,495.41 | -108.26% | | Net Cash Flow from Financing Activities | -1,694,378.56 | 53,504,629.60 | -103.17% | | Net Increase in Cash and Cash Equivalents | -48,037,724.65 | 99,744,698.09 | -148.16% | [Audit Status](index=12&type=section&id=(%E4%BA%8C)%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's financial report for the first quarter of 2022 is unaudited - The first quarter report has **not been audited**[29](index=29&type=chunk)

Financial Performance - The company's operating revenue for 2021 was ¥959,337,000.71, representing an increase of 82.54% compared to ¥525,535,334.50 in 2020[20]. - The net profit attributable to shareholders was -¥517,331,286.84 in 2021, a decline of 558.60% from -¥78,550,247.21 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥11,519,483.34, up 114.01% from -¥82,203,897.55 in 2020[20]. - The net cash flow from operating activities was ¥214,077,476.95, a significant increase of 688.45% from -¥36,379,808.00 in 2020[20]. - Total assets at the end of 2021 were ¥1,465,874,829.10, an increase of 70.08% from ¥861,860,219.59 at the end of 2020[20]. - The net assets attributable to shareholders decreased by 82.17% to ¥112,397,133.14 at the end of 2021 from ¥630,400,430.67 at the end of 2020[20]. - The company reported a basic earnings per share of -¥0.75 in 2021, a decline of 581.82% from -¥0.11 in 2020[20]. - The weighted average return on equity was -139.17% in 2021, down 126.75 percentage points from -11.73% in 2020[20]. - The company recognized a prepayment liability of approximately ¥537 million due to a court ruling related to a financial loan dispute[27]. - The company experienced significant fluctuations in cash flow due to increased use of bank acceptance bills for payments in the second and third quarters[28]. Shareholder Information - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into capital for the 2021 profit distribution proposal[5]. - The company’s major shareholder, Yuhuan Hengjie, holds 120 million shares, accounting for 17.45% of the total share capital[17]. - The company has no controlling shareholder or actual controller as of the latest board meeting[17]. Audit and Compliance - The company faced significant uncertainties related to going concern as noted in the audit report by Lixin Accounting Firm[5]. - The financial report for the year ended December 31, 2021, is confirmed to be true, accurate, and complete by the management team[5]. - The audit report includes a section emphasizing the significant uncertainties related to the company's future operations[5]. Market and Sales Performance - In 2021, the company's sales revenue increased by 81.85% year-on-year, reaching approximately CNY 959.34 million[46]. - The sewing machine business revenue accounted for CNY 952.77 million, representing an 82.20% increase compared to the previous year, driven by sustained demand in the downstream industry[52]. - Domestic market revenue reached CNY 561.24 million, a 130.51% increase year-on-year, while international market revenue was CNY 391.53 million, up 40.10%[56]. - The total sales volume of sewing machines reached 445,812 units, a 66.04% increase from 268,492 units in 2020, while production volume rose by 75.39% to 509,200 units[60]. Research and Development - The company has developed over 200 types of industrial sewing machines across 14 major series, showcasing its strong R&D capabilities[38]. - As of December 2021, the company holds 408 valid patents, including 31 invention patents, indicating a robust innovation pipeline[40]. - The company completed the development of 30 new products in 2021, including various sewing machines, and filed 60 patent applications, with 7 being invention patents[47]. - The company's R&D investment increased by 56.14% in 2021, totaling CNY 25,093,171.90, compared to CNY 16,070,947.57 in 2020[75]. - The number of R&D personnel rose to 143, a 38.83% increase from 103 in 2020, with R&D personnel now accounting for 11.63% of the total workforce[75]. Production and Capacity - The company has an annual production capacity of 800,000 industrial sewing machines, ranking among the top in China's sewing machinery industry[36]. - The company has invested 130 million RMB in advanced flexible manufacturing lines, positioning itself as a leader in production technology within the industry[41]. - The company has completed the construction of a new assembly plant, further strengthening its production capabilities[44]. Environmental Compliance - The company’s subsidiary, Zhongjie Technology, is listed as a key pollutant discharge unit by the Taizhou Ecological Environment Bureau for the year 2021[193]. - Zhongjie Technology has a wastewater treatment capacity of 50 tons per day, with normal operational status reported for both wastewater and exhaust treatment facilities[194]. - The company obtained a pollution discharge permit from the Taizhou Ecological Environment Bureau, valid from June 3, 2020, to June 2, 2023[195]. - The company established an emergency response plan for environmental incidents, including a command center and various specialized teams[196]. - The company installed an online monitoring system for environmental compliance, which has passed inspection by environmental authorities[197]. Governance and Management - The company has established a comprehensive and effective internal control system, ensuring that all business operations are conducted in accordance with established guidelines, which helps mitigate operational risks[184]. - The company’s governance structure includes independent directors who contribute to oversight and decision-making processes[167]. - The financial department is independent, maintaining a separate accounting system and making independent financial decisions[147]. - The company emphasizes compliance with legal regulations and has taken steps to enhance the understanding of these regulations among its management[163]. Strategic Initiatives - The company is actively pursuing technological upgrades and modern enterprise governance to enhance operational efficiency[44]. - The company plans to achieve a revenue target of RMB 1 billion in 2022, focusing on quality improvement, innovation, and cost reduction[128]. - The company aims to enhance its R&D capabilities and focus on providing high-value smart sewing solutions to maintain competitive advantages[128]. - The company plans to dynamically adjust sales prices in response to raw material price increases while maintaining stable gross margins[136].

Group 1: Event Overview - The company will hold an online performance briefing for the 2021 fiscal year on May 25, 2022, from 15:00 to 17:00 [1][2] - Investors can participate via the "Zhongjie Resources Investor Relations" mini-program or by scanning a provided QR code [1][2] Group 2: On-site Investor Reception Day - The on-site investor reception will take place on June 23, 2022, from 09:00 to 12:00 at the company's office in Zhejiang Province [3] - Participants must register in advance with the company's securities department [3] Group 3: Attendance and Contact Information - Key attendees include the Chairman and General Manager, Zhang Lishu, and other senior executives [2][3] - Registration can be done via phone, fax, or email, with specific contact details provided [3] Group 4: Important Notes - Investors are advised to bring necessary identification and documentation for verification [3] - The company encourages investors to submit questions in advance to enhance the efficiency of the reception [3][4]

Financial Performance - The company's operating revenue for Q3 2021 was CNY 241,646,702.47, representing a 65.62% increase year-over-year, and a total revenue of CNY 756,601,972.93 for the year-to-date, up 103.43% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was CNY 6,058,215.03, a 148.62% increase year-over-year, with a year-to-date net profit of CNY 20,826,375.70, up 180.93%[3]. - Total operating revenue for the third quarter reached CNY 756,601,972.93, a significant increase of 103.5% compared to CNY 371,923,954.98 in the same period last year[21]. - The company reported a net profit of CNY 20,826,375.70, a turnaround from a net loss of CNY 25,735,396.08 in the previous year[22]. - Basic earnings per share improved to CNY 0.0303, compared to a loss of CNY 0.0374 per share in the same quarter last year[23]. Cash Flow and Assets - The company's cash flow from operating activities showed a net amount of CNY 285,510,605.56 year-to-date, reflecting a significant increase of 979.48%[3]. - The company's cash flow from operating activities was CNY 2,378,756,605.40, a substantial increase from CNY 407,357,545.53 in the previous period[25]. - The net cash flow from operating activities was CNY 285,510,605.56, compared to a negative cash flow of CNY -32,463,602.78 in the same period last year[26]. - The total cash and cash equivalents at the end of the period were CNY 111,297,038.74, an increase of CNY 18,462,734.70 from the previous quarter[27]. - The company received tax refunds amounting to CNY 20,538,709.62, compared to CNY 10,066,767.14 in the same period last year[26]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 1,422,583,180.19, a 65.06% increase from the previous year-end[3]. - The total assets of the company reached CNY 1,422,583,180.19, compared to CNY 861,860,219.59 at the end of the previous year, indicating a growth of 64.9%[19]. - The total liabilities increased to CNY 771,755,692.53, up from CNY 231,459,788.92, representing a growth of 233.5%[19]. - The company's financial assets increased by 156.7% compared to the previous year-end, mainly due to investments in bank wealth management products[6]. - The company’s short-term borrowings increased by CNY 91,162,300, primarily due to new short-term bank loans taken during the reporting period[7]. Inventory and Costs - The company reported a 107.43% increase in operating costs year-over-year, primarily due to increased sales of sewing machines[7]. - The company’s inventory grew by 67.96% year-over-year, driven by increased sales and inventory buildup to meet demand[6]. - Total operating costs amounted to CNY 738,223,291.98, up 87.3% from CNY 394,153,003.53 year-on-year[21]. - Research and development expenses increased to CNY 20,563,811.37, compared to CNY 9,143,825.94 in the same quarter last year, reflecting a growth of 125.8%[22]. - The company's R&D expenses increased by 124.89% year-over-year, attributed to higher investments in product design and employee compensation[7]. Legal and Shareholder Matters - The company reported a significant legal issue involving a trust loan of CNY 2.5 billion, with ongoing investigations and court proceedings related to this matter[12]. - The company is currently under investigation regarding the aforementioned trust loan, with its bank accounts and properties being frozen as part of the legal proceedings[12]. - The major shareholder, Ningbo Yuanxi, reduced its stake from 16.42% to 10.41% through a share transfer of 13.8 million shares, which was completed on October 26, 2021[13]. - The company has committed to timely information disclosure regarding the developments of the share transfer and ongoing legal matters to ensure investor awareness[13]. Other Financial Metrics - The company's weighted average return on equity rose to 0.93%, an increase of 2.75 percentage points compared to the previous year[3]. - The company's deferred tax assets decreased to CNY 19,901,333.52 from CNY 21,869,132.56, a decline of 9%[19]. - Other comprehensive income after tax showed a loss of CNY 399,318.70, contrasting with a gain of CNY 193,790.40 in the previous year[23]. - The trading financial assets increased to CNY 186,879,273.97 from CNY 72,800,000.00, reflecting a growth of approximately 156%[17]. - The cash paid to employees was CNY 113,523,590.18, an increase from CNY 75,259,603.96 year-over-year[26].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥514,955,270.46, representing a 127.83% increase compared to ¥226,021,990.67 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2021 was ¥14,768,160.67, a significant turnaround from a loss of ¥13,274,808.12 in the previous year, marking a 211.25% increase[17]. - The net cash flow from operating activities reached ¥213,247,677.78, compared to a negative cash flow of ¥65,485,301.73 in the same period last year, reflecting a 425.64% improvement[17]. - The basic earnings per share for the first half of 2021 was ¥0.0215, compared to a loss of ¥0.0191 per share in the same period last year, indicating a 212.57% increase[17]. - The total comprehensive income for the first half of 2021 was ¥14,495,022.09, compared to a loss of ¥13,132,754.51 in the first half of 2020[167]. - The company reported a significant increase in cash received from other operating activities, totaling CNY 12,484,252.71, compared to CNY 9,255,195.61 previously[174]. - The company reported a gross profit margin of approximately 2.8% for the first half of 2021, compared to a negative margin in the previous year[164]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,211,155,155.04, a 40.53% increase from ¥861,860,219.59 at the end of the previous year[17]. - The total liabilities reached CNY 566,259,702.28, up from CNY 231,459,788.92, reflecting a growth of approximately 144.5%[158]. - The total current assets amounted to CNY 421,927,938.38, down from CNY 457,081,376.22, indicating a decline of approximately 7.7%[162]. - The total equity at the end of the reporting period was 644.89 million, with a notable increase in retained earnings[182]. Research and Development - Research and development expenses rose by 92.31% to ¥10,546,651.87, up from ¥5,484,054.38, due to increased investments in product design and employee compensation[43]. - The company filed 42 patent applications in the first half of the year, reflecting its commitment to innovation and technology advancement[35]. - The company holds 376 valid patents, including 29 invention patents, 293 utility model patents, and 54 design patents as of June 2021[29]. Market and Sales - Domestic sales accounted for 63.57% of total revenue, amounting to ¥327,349,573.88, a 194.64% increase from ¥111,102,533.98 in the previous year[46]. - The company achieved operating revenue of 515 million yuan in the first half of 2021, representing a year-on-year increase of 127.83%[33]. - The company is actively participating in various exhibitions to expand sales channels and enhance market presence[33]. Environmental and Social Responsibility - The company has implemented an online monitoring system for environmental self-monitoring, which has passed inspection by environmental authorities[85]. - The company ensures that hazardous waste, such as phosphating sludge and waste oil paint residue, is disposed of by qualified third parties as required by environmental regulations[88]. - The company emphasizes employee welfare by providing timely salary payments and various benefits, including medical insurance and health check-ups[90]. Legal Matters - The company reported a significant lawsuit involving Guangzhou Rural Commercial Bank with a claim amount of 358.207 million yuan, which is currently under litigation and has not yet reached a verdict[102]. - The company is involved in a legal case regarding a trust loan of 2.5 billion yuan, with ongoing investigations and court proceedings[100]. - The company has initiated legal actions against several entities for patent infringement, with ongoing litigation[103]. Future Outlook and Strategy - The company plans to enhance the quality of mid-to-low-end products while increasing the output of high-end products to avoid price wars in a competitive market[67]. - The company aims to improve market share and production capacity to enhance equipment utilization and mitigate fixed asset investment risks[67]. - The company plans to continue its strategy of capital increase through retained earnings and reserves[184].

Financial Performance - The company's operating revenue for 2020 was ¥525,535,334.50, a decrease of 25.64% compared to ¥706,762,459.09 in 2019[18]. - The net profit attributable to shareholders was -¥78,550,247.21, representing a decline of 865.80% from a profit of ¥10,257,273.01 in 2019[18]. - The net cash flow from operating activities was -¥36,379,808.00, a decrease of 216.84% compared to ¥31,137,146.34 in 2019[18]. - The total assets at the end of 2020 were ¥861,860,219.59, down 25.98% from ¥1,164,437,531.54 at the end of 2019[18]. - The weighted average return on equity was -11.73%, a decrease of 13.19 percentage points from 1.46% in 2019[18]. - Total profit and net profit attributable to shareholders decreased by 764.47% and 865.80% respectively, primarily due to the absence of gains from the transfer of trust beneficiary rights in the previous year[40]. - Total revenue for 2020 was CNY 525,535,334.50, a decrease of 25.64% compared to CNY 706,762,459.09 in 2019[49]. - Revenue from the sewing machine business was CNY 522,932,632.09, down 25.89% from CNY 705,635,750.04 in the previous year[52]. - Operating profit for 2020 was CNY -75,525,259.17, compared to CNY -70,417,838.81 in 2019, reflecting a 7.25% increase in losses[49]. - The company reported a significant decrease in period expenses by 46.18%, from CNY 136,535,767.87 in 2019 to CNY 73,485,148.92 in 2020[52]. Shareholder Structure and Governance - As of June 24, 2020, the company completed the transfer registration of 120 million shares, representing 17.45% of the total share capital, making Yuhuan Hengjie the largest shareholder[16]. - The company reported significant changes in its shareholder structure, with no controlling shareholder or actual controller identified after the transfer of shares[16]. - The company has fulfilled its commitments related to avoiding competition and reducing related party transactions as per the agreements made during the share reform[141]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[143]. Legal and Compliance Issues - The company is currently involved in a legal dispute with Guangzhou Rural Commercial Bank, with a claim amounting to 3.582 billion yuan, which raises concerns about the company's ongoing viability[144]. - Some of the company's assets have been judicially sealed or frozen due to the ongoing legal case[145]. - The board of directors acknowledges the significant uncertainty regarding the company's ability to continue as a going concern, as highlighted in the audit report[147]. - The company received a letter from Guangzhou Rural Commercial Bank regarding a 2.5 billion RMB trust loan, claiming a shortfall obligation under an agreement that the company could not find in its records[148]. - The company is currently involved in a lawsuit with an amount of 1,986.755 million RMB related to a trust beneficiary rights transfer, which is still under court review[156]. - The company has faced penalties for failing to disclose certain matters in a timely manner, resulting in warning letters issued to its executives[158]. Audit and Financial Reporting - The company received an unqualified audit report with emphasis on matters related to going concern from Lixin Accounting Firm[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[4]. - The audit report issued by the accounting firm includes a section on significant uncertainties related to the company's ongoing operations[144]. - The company has not made any significant accounting policy changes during the reporting period, following the implementation of the new revenue standards effective January 1, 2020[151]. - There were no significant accounting errors that required restatement during the reporting period[152]. Operational Performance and Strategy - The company has not reported any changes in its main business since its listing[16]. - The company has developed over 200 types of industrial sewing machines across 14 major series, holding a total of 371 valid patents as of the end of 2020[35]. - The company has a strong competitive advantage in technology and talent, with a provincial-level research institute and a commitment to continuous R&D improvement[35]. - The company has initiated a new assembly building project to enhance production efficiency, covering over 13,000 square meters[40]. - The company has successfully reduced overdue payments to suppliers, thereby boosting supplier confidence and optimizing the supply chain[42]. - New product development has focused on enhancing the quality of step-type sewing machines and computer bag sewing machines, addressing customer demands for automation and efficiency[43]. - The company aims to enhance its market risk resilience and economic efficiency through the implementation of the direct drive overlock project, which will add 60,000 units of production capacity[100]. Environmental Compliance - The company is listed as a key pollutant discharge unit by the Taizhou Ecological Environment Bureau[184]. - The company has established a wastewater treatment facility with a processing capacity of 50 tons per day, operating normally[190]. - The company obtained a pollution discharge permit valid from June 3, 2020, to June 2, 2023[191]. - The company has developed an emergency response plan for environmental incidents[192]. - The company has installed an online monitoring system for environmental self-monitoring, which has passed inspection[193]. Investment and Financial Management - The company has invested approximately 41.3 million yuan in the construction of its No. 1 factory during the reporting period[33]. - The company has committed a total investment of RMB 88,535 million, with a cumulative investment of RMB 91,323.69 million, achieving an investment progress of 97.08%[99]. - The company has utilized RMB 5,024.19 million from the raised funds for the high-speed direct drive sewing machine project, which has been completed[100]. - The company has approved the use of idle raised funds for temporary working capital, with a total of RMB 40 million utilized in various instances[100]. - The company has a financial product with a return rate of 3.70% and an investment of 10,000 million[177]. Employee and Social Responsibility - The company emphasizes employee benefits, ensuring timely payment of salaries and social insurance[181]. - The company actively fulfills tax obligations and supports local economic development[182]. - The company has initiated new employee welfare projects and improved working conditions, which helped maintain employee confidence in the company's sustainable development[46].

中捷资源投资股份有限公司 2021 年第一季度报告全文 中捷资源投资股份有限公司 2021 年第一季度报告 2021 年 4 月 1 中捷资源投资股份有限公司 2021 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司第一季度财务报表经公司内部审计部门审计，未经会计师事务所审计。 公司负责人张黎曙、主管会计工作负责人倪建军及会计机构负责人(会计主 管人员)倪建军声明：保证季度报告中财务报表的真实、准确、完整。 2 中捷资源投资股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 236,543,412.06 | 114,943,239.32 | 105.79% | | 归属于上市公司股 ...

Financial Performance - The company's operating revenue for 2020 was ¥525,535,334.50, a decrease of 25.64% compared to ¥706,762,459.09 in 2019[18]. - The net profit attributable to shareholders was -¥78,550,247.21 in 2020, representing a decline of 865.80% from a profit of ¥10,257,273.01 in 2019[18]. - The net cash flow from operating activities was -¥36,379,808.00, a decrease of 216.84% compared to ¥31,137,146.34 in 2019[18]. - The total assets at the end of 2020 were ¥861,860,219.59, down 25.98% from ¥1,164,437,531.54 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 11.06% to ¥630,400,430.67 at the end of 2020 from ¥708,764,994.72 at the end of 2019[18]. - The company reported a basic earnings per share of -¥0.11 in 2020, a decline of 1,200.00% from ¥0.01 in 2019[18]. - The weighted average return on equity was -11.73% in 2020, a decrease of 13.19 percentage points from 1.46% in 2019[18]. - Total profit and net profit attributable to shareholders decreased by 764.47% and 865.80% respectively, primarily due to the absence of gains from trust beneficiary rights transfer in the current period[40]. - Total revenue for 2020 was CNY 525,535,334.50, a decrease of 25.64% compared to CNY 706,762,459.09 in 2019[49]. - Revenue from the sewing machine business was CNY 522,932,632.09, down 25.89% from CNY 705,635,750.04 in the previous year[52]. - Operating profit for 2020 was CNY -75,525,259.17, compared to CNY -70,417,838.81 in 2019, reflecting a 7.25% increase in losses[49]. - The company reported a significant decrease in operating cash inflows due to reduced sales and export tax refunds[53]. Shareholder Information - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the 2020 profit distribution proposal[5]. - The company has not distributed cash dividends for the past three years, with a total cash dividend amount of 0.00 for 2020, 2019, and 2018[139]. - The company reported a net profit attributable to ordinary shareholders of -78,550,247.21 in 2020, with a cash dividend payout ratio of 0.00%[139]. Legal and Compliance Issues - The company is currently involved in a legal dispute with Guangzhou Rural Commercial Bank, with the claimed amount being 3.582 billion yuan, which raises concerns about the company's ongoing viability[144]. - The company has received a non-standard audit report indicating significant uncertainties regarding its ability to continue as a going concern[144]. - The board of directors acknowledges the audit report's emphasis on the uncertainties and believes it accurately reflects the company's financial condition and operating results[147]. - The company received a letter from Guangzhou Rural Commercial Bank regarding a 2.5 billion RMB trust loan, claiming a shortfall obligation under an agreement that the company could not find in its records[148]. - The company is currently involved in a lawsuit with Guangzhou Rural Commercial Bank, with the case accepted by the Guangzhou Intermediate People's Court, and the company has received a summons but has not yet gone to trial[149]. - The company has engaged a lawyer to analyze the case and prepare for litigation, indicating proactive measures in response to the legal situation[149]. - The company has faced penalties for failing to disclose certain matters in a timely manner, resulting in warning letters issued to its executives[158]. Operational Performance - The company has an annual production capacity of approximately 800,000 industrial sewing machines, making it one of the largest production bases globally in this sector[30]. - The company reported a 100% increase in construction projects, primarily due to investments in the No. 1 factory, SAP upgrade, and waste gas treatment projects[33]. - Cash and cash equivalents decreased by 77.54% compared to the beginning of the period, mainly due to investments in production operations and loan repayments[33]. - Inventory increased by 35.35 million yuan compared to the beginning of the period, as the company increased stock to meet customer demand during the peak sales season[33]. - The company has established a marketing network consisting of over 400 primary distributors, enhancing brand visibility and market reach[34]. - The company’s market demand is influenced by the production conditions and economic health of downstream industries such as textiles and apparel[32]. - The company has a strong competitive advantage in scale, marketing, brand recognition, and technology, positioning it favorably in the industrial sewing machine market[34]. - The company implemented a series of marketing activities and online promotions, leading to a recovery in sales channels[42]. - New product quality improvements were made, focusing on noise reduction, appearance, stitch quality, and functionality for new models of sewing machines[43]. - The company completed the development of new products and received two "Zhejiang Manufacturing" product certifications[44]. - The company maintained stable operations and sustainability despite the challenges posed by the pandemic[40]. - The company focused on enhancing employee satisfaction and well-being during the pandemic[44]. Research and Development - The company holds 371 valid patents, including 29 invention patents, 288 utility model patents, and 54 design patents, with 18 new patents filed in 2020[35]. - Research and development expenses decreased by 40.17% to CNY 16,070,947.57 from CNY 26,860,989.48 in 2019[52]. - The number of R&D personnel decreased by 16.26% to 103, with R&D expenses accounting for 3.06% of total revenue[74]. - The company has 10 ongoing R&D projects, with total R&D expenditures for these projects amounting to approximately 1.12 million yuan[73]. Environmental Compliance - The company is listed as a key pollutant discharge unit by the Taizhou Ecological Environment Bureau[184]. - The company has established a wastewater treatment station with a processing capacity of 50 tons per day, operating normally[190]. - The company obtained a pollution discharge permit valid from June 3, 2020, to June 2, 2023[191]. - The company has developed an emergency response plan for environmental incidents, including a comprehensive emergency management structure[192]. - The company has installed an online monitoring system for environmental self-monitoring, which has passed inspection by environmental authorities[193]. - The company has a commitment to ensure compliance with environmental monitoring standards and regulations[196]. Investment and Financial Management - The company has not engaged in any significant equity or non-equity investments during the reporting period[92][93]. - The company has not made any securities or derivative investments during the reporting period[92][93]. - The company has a remaining balance of 134,046.73 CNY in its fundraising special account as of December 31, 2020, which consists of interest accrued from the raised funds[95]. - The company has committed a total investment of RMB 88,535 million, with a cumulative investment of RMB 91,323.69 million, achieving a completion rate of 97.08%[99]. - The company has utilized RMB 4,000 million of idle raised funds to supplement working capital multiple times, all of which have been returned[100]. - The company has shifted the implementation of the embroidery machine project to its wholly-owned subsidiary to streamline operations and improve efficiency[100]. - The company has approved a guarantee limit of 20 million yuan for its subsidiary, with actual guarantees amounting to 487,000 yuan during the reporting period[172]. - The company has invested 41.4 million yuan in bank wealth management products using idle self-owned funds, with a remaining balance of 7.28 million yuan[175]. Future Outlook and Strategy - For 2021, the company plans to achieve a revenue target of RMB 10 billion, focusing on governance, technical R&D, and market strategies[124]. - The company aims to enhance its technology development by focusing on "fast response" and optimizing standard components to reduce costs[124]. - The company anticipates increased market consolidation and competition in the sewing machine industry, leading to potential mergers and acquisitions[123]. - The company plans to optimize its supply chain and implement electronic procurement to manage costs effectively[127]. - The company will focus on quality and quantity for mid-to-low-end products while enhancing high-end product quality to avoid price wars[133]. - The company will adjust sales prices and settlement methods to mitigate risks from currency fluctuations[133].