证券代码：002021 证券简称：ST 中捷 公告编号：2023-030 中捷资源投资股份有限公司 关于举办2022年度业绩网上说明会及现场投资者接待日活动 的通知 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 《中捷资源投资股份有限公司2022年年度报告全文及摘要》经中捷资源投资股份有 限公司（以下简称"公司"）第七届董事会第十六次会议审议通过，并刊登在2023年4 月28日的《证券时报》、《证券日报》和巨潮资讯网（http://www.cninfo.com.cn）上。 为便于广大投资者深入了解公司情况，公司将举办2022年度业绩网上说明会及现场投资 者接待日活动，具体情况如下： 一、2022年度业绩网上说明会的安排 1、活动时间：2023年5月16日（星期二）15:00-17:00 2、参与方式：采用网络远程的方式举行，投资者可登陆"中捷资源投资者关系" 小程序参与互动交流。为广泛听取投资者的意见和建议，提前向投资者征集问题，提 问通道自发出公告之日起开放。 参与方式一：在微信小程序中搜索 "中捷资源投资者关系"； 参与方式二：微信扫一扫以下二维码： 1 ...

Group 1: Shareholder Concerns - The three largest shareholders' stocks are under judicial freeze, but it currently does not affect the company's operations and management [2][3] - Other than the chairman who also serves as the vice chairman of the controlling shareholder, there are no other relationships between the board members and the controlling shareholder [3] Group 2: Future Planning - The company plans to gradually transform into a specialized investment management enterprise, focusing on diversified industries and forming multiple operational platforms to enhance profitability [3] Group 3: Asset Management - The company has not received information on how to resolve the judicial freeze on the stocks, but the production and operation remain normal [3] - The acquisition of mining rights and related fixed assets from Guizhou Tuoshi Energy Co., Ltd. will depend on the resolution of asset rights issues as per the asset acquisition agreement [3]

Financial Performance - In the first half of 2015, the company achieved total operating revenue of 47,130.88 million yuan, a decrease of 29.33% compared to the same period last year, primarily due to a decline in sewing equipment sales [2] - The net profit attributable to shareholders of the listed company was -4,901.60 million yuan, representing a decline of 334%, mainly due to a decrease in gross profit margin and an increase in the number and amount of losses from subsidiaries [4] Asset Restructuring - The major reason for the termination of the significant asset restructuring was the failure to reach an agreement on all terms with the counterparty before the end of the suspension period [4] - The company committed not to plan any significant asset restructuring within six months following the termination of this matter [4] Strategic Acquisitions - The acquisition of 95.83% of Jiangxi Jinyuan aims to expand into the organic agricultural sector, while the purchase of 60.00% of Xingbang Resources provides control over overseas asset projects, facilitating entry into the pulp manufacturing and wood processing industries [5][6] Market Expansion - The company is entering the organic agriculture sector, including organic meat, to enhance profitability due to declining earnings from its current main business of industrial sewing machines [6] - The demand for agricultural products in China is substantial, driven by a large population and increasing living standards, which is expected to boost overall consumption [6] International Projects - The company is currently preparing for organic agriculture projects in the Trans-Baikal region of Russia, including preliminary approvals and communications with domestic development and commerce departments [6] - Investment in Russia aligns with national industrial policies and the "Belt and Road" initiative, providing a favorable environment for economic cooperation [7] Internet Agriculture Initiative - The company plans to enter internet agriculture, leveraging the growing market demand for organic products and the rapid development of the organic product industry [8] - A strategic cooperation framework agreement was signed with Xinjiang Laodao Agricultural Technology Co., focusing on developing an agricultural service platform based on "internet technology + offline chain networks" [8] Stock Issuance - The company disclosed a plan for a non-public stock issuance on June 23, 2015, which is currently under revision for resubmission to the board for approval [8]

Group 1: Company Projects and Developments - The company received the acceptance notice for its non-public offering application from the China Securities Regulatory Commission on December 22, 2015 [1][2] - The non-public offering involves granting up to 45.9 million restricted shares at a price of 5.97 yuan per share, with performance targets set for net profit growth of no less than 30% in 2016 and 100% in 2018 [2][3] Group 2: Investment Projects - The company is investing in the Amazarlin Pulp and Timber Integration Project in Russia, which is part of a broader strategy to address the domestic timber supply gap as China gradually halts logging in natural forests [3][4] - Russia holds approximately 25% of the world's forest resources, with over 80 billion cubic meters of timber reserves, primarily located in the sparsely populated Siberian and Far East regions [3][4] Group 3: Strategic Importance - The Amazarlin project is recognized as a key cooperative project between China and Russia, receiving significant support from both governments and is aligned with national industrial policies and the Belt and Road Initiative [4]

Group 1: Company Strategy and Market Entry - The company is transitioning from its main business of industrial sewing machines to organic agriculture due to declining profitability in its current sector [1][3] - The acquisition of Jiangxi Jinyuan (95.83% stake) and Heilongjiang Xingbang (60.00% stake) aims to quickly enter the organic agricultural sector and pulp manufacturing industry [2][3] - The organic agricultural market in China is vast, driven by a large population and increasing consumer demand for safe and healthy food [3][4] Group 2: Product and Business Model - Jiangxi Jinyuan's main products include organic frozen strawberries, vegetables, and rice, which constitute a significant portion of its sales [4][5] - The business model involves a "company-base-farmer" approach, ensuring compliance with organic standards through partnerships with local farmers [4][5] - Sales are primarily order-based, with contracts established at the beginning of the year to secure supply and pricing [5][6] Group 3: Industry Trends and Future Outlook - The demand for paper and paperboard in China has been growing, with production increasing at an average annual rate of 7.20% from 2005 to 2014 [6] - The domestic market for wood products is expected to grow due to the increasing demand in construction and packaging industries [6] - The company plans to leverage internet technology to modernize agriculture and enhance its service offerings [7] Group 4: Talent Acquisition and Stock Issuance - The company will secure talent through acquisitions, external hiring, and incentive mechanisms to support its new business ventures [7] - A non-public stock issuance is in progress, with plans to submit the application to the China Securities Regulatory Commission following shareholder approval [7][8]

中捷资源投资股份有限公司 2022 年第三季度报告 证券代码：002021 证券简称：ST 中捷 公告编号：2022- 069 中捷资源投资股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误 导性陈述或重大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报 告中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □是 否 1 中捷资源投资股份有限公司 2022 年第三季度报告 | 项目 | 本报告期金额 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | --- | | 非流动资产处置损益（包括 | | | | | 已计提资产减值准备的冲销 | -91,382.10 | -375,766.01 | 主要为处置部分报废固定资 | | | | | 产损益。 | | 部分） | | | | | 计入当期损益的政府补助 ...

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].