湖南梦洁家纺股份有限公司 2022 年第三季度报告 证券代码：002397 证券简称：梦洁股份 公告编号：2022-077 湖南梦洁家纺股份有限公司 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。 一、主要财务数据 （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 | 本报告期比上年同 | 年初至报告期末 | 年初至报告期末比 | | --- | --- | --- | --- | --- | | | | 期增减 | | 上年同期增减 | | 营业收入（元） | 441,710,560.00 | -13.99% | 1,395,832,405.96 | -8.76% | | 归属于上市公司股东的净利润 （元） ...

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥954.12 million, a decrease of 6.12% compared to ¥1,016.33 million in the same period last year[19]. - The net profit attributable to shareholders was a loss of approximately ¥43.35 million, representing a decline of 192.04% from a profit of ¥47.10 million in the previous year[19]. - The weighted average return on net assets was -2.76%, a decrease of 5.33% compared to 2.57% in the previous year[19]. - The company's revenue for the reporting period was approximately ¥954.12 million, a decrease of 6.12% compared to the previous year[47]. - The company reported a net profit of 5,308,457.2 yuan from its subsidiary Hunan Meijia Home Textile Technology Co., Ltd., contributing significantly to overall profitability[80]. - The company reported a net loss of CNY 71,197,031.46 for the period, compared to a profit of CNY 22,197,921.11 at the beginning of the year[157]. - The total comprehensive income for the first half of 2022 was a loss of CNY 41.75 million, compared to a profit of CNY 48.79 million in the same period of 2021[161]. - The total comprehensive income for the current period was 173.0 million yuan, reflecting a decrease of 88.62% compared to the previous period[176]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly to approximately ¥166.48 million, compared to a negative cash flow of ¥109.49 million in the same period last year, marking a 252.05% increase[19]. - The company's cash and cash equivalents at the end of the reporting period were 532.72 million yuan, representing 15.03% of total assets, an increase of 3.20% from the previous year[63]. - The company's cash flow from operating activities showed a positive trend, with a net inflow of ¥119,024,949.55 for the parent company, compared to a net outflow of ¥52,690,992.22 in the previous year[169]. - Cash received from sales of goods and services was CNY 1,043.74 million, down from CNY 1,168.76 million in the first half of 2021, indicating a decline in cash flow from operations[166]. - The total cash outflow for debt repayment was ¥964,008,478.29, significantly higher than ¥464,300,000.00 in the same period of 2021[168]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥3.54 billion, an increase of 3.88% from ¥3.41 billion at the end of the previous year[19]. - The company's total liabilities rose to CNY 2,504,094,049.69, compared to CNY 2,214,105,315.74 at the start of the year, indicating an increase of about 13.06%[157]. - The company's total equity decreased to CNY 1,455,254,207.57 from CNY 1,548,649,160.14, reflecting a decline of approximately 6.03%[157]. - The company's short-term borrowings decreased to CNY 659,536,428.00 from CNY 729,024,962.75, a reduction of approximately 9.5%[151]. Market Position and Strategy - The company is focusing on high-end brand positioning and has upgraded its brand image through collaborations with international magazines, enhancing its high-end product sales[26]. - The company aims to achieve its vision of becoming the best bedding products provider globally, continuing its high-end strategic expansion[26]. - The company is implementing targeted upgrades in brand positioning, product development, market promotion, and supply chain efficiency to adapt to market changes[26]. - The company plans to maintain a high-end brand strategy, focusing on high-end bedding products to enhance core competitiveness and product quality[81]. - The company plans to continue expanding its market presence and invest in new product development to drive future growth[176]. Operational Efficiency - The operating costs increased by 7.32% to approximately ¥602.40 million, while sales expenses decreased by 4.82% to approximately ¥284.87 million[47]. - The company opened 73 new stores during the reporting period, significantly enhancing its high-end sales proportion[36]. - The average store efficiency for direct sales was ¥852,000, reflecting a year-on-year increase of 4.98%[52]. - The company has adopted a sales model that combines direct sales and franchising, integrating online and offline channels[55]. Research and Development - The company has been recognized as a national-level industrial design center and a national-level consumer goods standardization pilot enterprise, enhancing its research and development capabilities[34]. - The company has upgraded its supply chain system, implementing a "3+2" material research and development upgrade, including the production of 7A Xinjiang cotton and 7A down[39]. - Research and development expenses remained stable at CNY 35.58 million, slightly up from CNY 35.50 million in the same period last year[160]. Shareholder and Corporate Governance - The company did not declare any cash dividends or bonus shares for the reporting period[5]. - The company will not distribute cash dividends or issue bonus shares for the half-year period, focusing on reinvestment[86]. - The company has not experienced any changes in its board of directors or senior management during the reporting period, ensuring continuity in leadership[85]. - The company granted 26.9 million stock options at an exercise price of 4.02 CNY per share to 169 eligible participants as part of the 2021 stock option and restricted stock incentive plan[89]. Challenges and Risks - The GDP growth in China for the first half of 2022 was 2.5%, with a target of 5.5% for the year, indicating a significant gap that may affect consumer spending[81]. - The project for producing 200,000 mattresses has been delayed to December 2023 due to impacts from trade wars and the COVID-19 pandemic[74]. - The logistics base construction project is also delayed to December 2023, linked to the timeline of the mattress project[74]. - The company emphasizes enhancing supply chain resilience and optimizing raw material supply to mitigate risks[82].

Financial Performance - The company's operating revenue for 2021 was ¥2,462,664,063.87, representing a 10.93% increase compared to ¥2,220,109,147.11 in 2020[19] - The net profit attributable to shareholders was -¥155,916,741.85, a decrease of 447.10% from ¥44,920,370.12 in the previous year[19] - The net cash flow from operating activities was ¥11,822,968.93, down 96.72% from ¥359,927,169.42 in 2020[19] - The basic earnings per share were -¥0.21, a decline of 450.00% compared to ¥0.06 in 2020[19] - Total assets at the end of 2021 were ¥3,411,289,000.09, an increase of 0.85% from ¥3,382,410,953.20 at the end of 2020[19] - The net assets attributable to shareholders decreased by 11.82% to ¥1,591,530,871.09 from ¥1,804,899,750.81 in 2020[19] - The company reported a significant decline in net profit, indicating uncertainty in its ability to continue as a going concern[19] Revenue Breakdown - The fourth quarter revenue was ¥932,775,893.19, contributing significantly to the annual total[24] - The revenue from bedding sets amounted to ¥971,277,495.70, accounting for 39.44% of total revenue, with an 18.17% increase from the previous year[70] - The revenue from franchise sales was CNY 1,064,773,806.15, which accounted for 43.24% of total sales, with a year-on-year increase of 15.45%[72] - The revenue from the central region (华中) was CNY 1,689,859,198.82, making up 68.62% of total revenue, with a year-on-year growth of 13.00%[74] - Online sales on the Tmall platform grew by 50%, with an average order value increasing by 59% in 2021[50] Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[6] - The company aims to strengthen its high-end strategy, focusing on premium bedding products and enhancing brand recognition to improve risk resistance[61] - The company strategically closed underperforming stores and focused on flagship stores over 600 square meters, maintaining high profitability[48] - The company has integrated a digital supply chain system to enhance efficiency and responsiveness to market demands[67] - The company has established the first "Bedding Consumer Experience Joint Laboratory" to address consumer sleep issues through systematic research[42] Product Development and Innovation - The company launched new high-quality products, including 7A large goose down and 7A organic silk, enhancing product quality and consumer experience[41] - The company developed over 110 new processes throughout the year, focusing on upgrading product craftsmanship and enhancing user experience[52] - The company received multiple awards for innovation, including the "China Top Ten Innovative Products Award" for its new Chinese-style bedding sets[46] - The company has integrated global resources for design and R&D, signing top designers to enhance its product offerings and brand positioning[41] Market Position and Brand Recognition - The company has positioned itself as the leading brand in high-end bedding, maintaining the top sales position for 13 consecutive years from 2009 to 2021[32] - The brand's high-end recognition increased by 23.5%, and future purchase consideration rose by 16.7%, particularly among the 25-30 age group[40] Operational Efficiency - The company established a professional laundry team, launching a comprehensive laundry service that utilizes top-tier equipment and eco-friendly detergents[54] - The company has achieved 7 national-level certifications for high-end products and materials, including 4 high-end product standards established in 2021[4] - The company has a total of 802 copyrighted works and 749 patents, with 80% of sales revenue coming from proprietary products[63] Financial Management - Financial expenses surged by 46.16% to ¥27,001,459.99 due to increased bank loans[84] - Operating cash inflow totaled approximately ¥2.79 billion, an increase of 10.58% year-over-year[95] - Operating cash outflow increased to approximately ¥2.78 billion, a rise of 28.46% year-over-year[95] - Cash and cash equivalents net increase amounted to approximately -¥118.92 million, a significant decline of 640.82%[95] Corporate Governance - The company’s financial report indicates that the stock incentive plan from 2018 did not meet performance targets, affecting several executives[128] - The company has established a performance evaluation system for senior management, which includes a target, responsibility, and performance evaluation framework[162] - The company has implemented internal control systems in accordance with relevant laws and regulations, with updates approved by the board of directors and supervisory board[162] - The company has a strategic focus on enhancing its supply chain and operational efficiency through various subsidiaries[136] Social Responsibility and Environmental Commitment - The company emphasizes environmental protection and has committed to maintaining a harmonious development between business and the environment[174] - The company has actively engaged in social responsibility initiatives, including disaster relief and educational support programs[174] Future Outlook - The company is focusing on expanding its market presence and enhancing product development strategies[127] - Future outlook includes continued investment in new technologies and potential mergers and acquisitions to drive growth[127]

[Financial Summary and Shareholder Information](index=1&type=section&id=I.%20Key%20Financial%20Data) This section provides an overview of the company's key financial performance and shareholder structure for the reporting period [Overview of Core Financial Data](index=1&type=section&id=I.%20Key%20Financial%20Data) In Q1 2022, the company's operating revenue slightly increased by 2.25% year-on-year, but net profit attributable to shareholders turned from profit to loss, decreasing significantly by 126.77% to a net loss of RMB 9.21 million | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 514,221,591.43 | 502,915,615.88 | 2.25% | | Net Profit Attributable to Shareholders (RMB) | -9,212,631.16 | 34,407,778.01 | -126.77% | | Net Profit Attributable to Shareholders, Excluding Non-Recurring Gains/Losses (RMB) | -7,124,478.69 | 31,986,818.93 | -122.27% | | Net Cash Flow from Operating Activities (RMB) | 54,833,515.09 | -45,022,660.52 | 221.79% | | Basic Earnings Per Share (RMB/share) | -0.01 | 0.05 | -120.00% | | Total Assets (RMB) | 3,491,352,950.95 | 3,411,289,000.09 | 2.35% (vs. end of prior year) | | Total Equity Attributable to Shareholders (RMB) | 1,582,296,189.58 | 1,591,530,871.09 | -0.58% (vs. end of prior year) | [Non-Recurring Gains and Losses](index=1&type=section&id=(II.)%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to RMB -2.088 million, primarily due to net losses from other non-operating income and expenses | Item | Amount for Current Period (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -615,682.90 | | Government Grants Included in Current Period P&L | 473,769.54 | | Other Non-Operating Income and Expenses Excluding the Above | -2,391,010.74 | | **Total** | **-2,088,152.47** | [Changes and Reasons for Key Financial Indicators](index=2&type=section&id=(III.)%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, several financial indicators changed significantly year-on-year, driven by increased prepayments, new bank loans, higher consulting fees, and increased intercompany receivables - Prepayments increased by **106.03%** year-on-year, primarily due to increased payments for materials[6](index=6&type=chunk) - Long-term borrowings increased by **13,660.71%** year-on-year, primarily due to new bank loans[6](index=6&type=chunk) - Administrative expenses increased by **45.44%** year-on-year, primarily due to higher consulting fees[6](index=6&type=chunk) - Net cash flow from operating activities increased by **221.79%** year-on-year, primarily due to a significant increase in intercompany receivables compared to the prior period[6](index=6&type=chunk) [Shareholder Information](index=2&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company's top ten shareholders were all domestic natural persons, with controlling shareholder Jiang Tianwu holding 15.36% of shares, and several top shareholders having pledged a portion of their shares | Shareholder Name | Shareholding Percentage | Number of Shares Held | Number of Pledged Shares | | :--- | :--- | :--- | :--- | | Jiang Tianwu | 15.36% | 116,088,490 | 30,000,000 | | Wu Jing | 10.75% | 81,252,932 | 0 | | Li Jianwei | 6.85% | 51,758,982 | 40,000,000 | | Li Jing | 5.67% | 42,866,928 | 42,700,000 | | Zhang Aichun | 5.30% | 40,089,976 | 40,000,000 | - The company is unaware of any related party relationships or concerted actions among the top ten shareholders[9](index=9&type=chunk) [Quarterly Financial Statements](index=3&type=section&id=IV.%20Quarterly%20Financial%20Statements) This section presents the company's consolidated financial statements for the first quarter, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=3&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2022, the company's total assets were RMB 3.491 billion, a 2.35% increase from the beginning of the year, with total liabilities at RMB 1.896 billion | Item | Period-End Balance (RMB) | Year-Beginning Balance (RMB) | | :--- | :--- | :--- | | **Assets:** | | | | Total Current Assets | 1,780,800,329.77 | 1,752,554,333.57 | | Total Non-Current Assets | 1,710,552,621.18 | 1,658,734,666.52 | | **Total Assets** | **3,491,352,950.95** | **3,411,289,000.09** | | **Liabilities and Owners' Equity:** | | | | Total Current Liabilities | 1,792,092,318.61 | 1,733,147,172.55 | | Total Non-Current Liabilities | 103,818,077.55 | 74,605,375.75 | | **Total Liabilities** | **1,895,910,396.16** | **1,807,752,548.30** | | Total Equity Attributable to Parent Company Shareholders | 1,582,296,189.58 | 1,591,530,871.09 | | **Total Owners' Equity** | **1,595,442,554.79** | **1,603,536,451.79** | [Consolidated Income Statement](index=6&type=section&id=2.%20Consolidated%20Income%20Statement) During the reporting period, the company achieved operating revenue of RMB 514 million, a 2.25% year-on-year increase, but total operating costs rose by 11.0%, leading to an operating loss of RMB 12.54 million | Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 514,221,591.43 | 502,915,615.88 | | II. Total Operating Costs | 523,392,177.71 | 471,559,305.43 | | Of which: Operating Costs | 317,231,945.68 | 301,184,514.64 | | Selling Expenses | 138,827,677.10 | 116,550,108.64 | | Administrative Expenses | 34,309,695.83 | 23,589,841.21 | | III. Operating Profit (Loss indicated by "-") | -12,540,796.97 | 38,593,647.73 | | IV. Total Profit (Total Loss indicated by "-") | -14,931,807.71 | 39,503,016.22 | | V. Net Profit (Net Loss indicated by "-") | -8,102,942.05 | 34,851,932.89 | | Net Profit Attributable to Parent Company Shareholders | -9,212,631.16 | 34,407,778.01 | [Consolidated Cash Flow Statement](index=8&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement) In Q1 2022, net cash flow from operating activities significantly improved to RMB 54.83 million, while investing and financing activities resulted in net outflows, leading to a net decrease in cash and cash equivalents | Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 54,833,515.09 | -45,022,660.52 | | Net Cash Flow from Investing Activities | -92,677,045.66 | -43,005,392.23 | | Net Cash Flow from Financing Activities | -73,958,304.68 | -29,948,014.32 | | Net Increase in Cash and Cash Equivalents | -111,900,452.54 | -117,976,067.07 | | Cash and Cash Equivalents at Period-End | 236,375,494.19 | 349,217,788.10 | [Other Matters and Audit Opinion](index=3&type=section&id=III.%20Other%20Significant%20Matters) This section covers any other significant matters not previously discussed and the audit status of the quarterly report [Other Significant Matters](index=3&type=section&id=III.%20Other%20Significant%20Matters) During the reporting period, the company did not disclose any other significant matters requiring special mention - The company had no other significant matters requiring disclosure during the reporting period[10](index=10&type=chunk) [Audit Opinion](index=9&type=section&id=(II.)%20Audit%20Report) This quarterly report is unaudited - The company's first-quarter report is unaudited[21](index=21&type=chunk)

[Key Financial Data](index=1&type=section&id=I%E3%80%81Key%20Financial%20Data) [Core Financial Indicators](index=1&type=section&id=%28I%29%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's Q3 2021 saw 12.82% revenue growth but a **19.62 million RMB** net loss, with year-to-date operating cash flow at **-89.73 million RMB**, a **159.15% decrease**, indicating significant cash flow pressure Key Financial Indicators for the First Three Quarters of 2021 | Indicator | Year-to-Date (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 1,529,888,170.68 | 12.82% | | Net Profit Attributable to Shareholders of Listed Company | 27,477,683.97 | 8.77% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains/Losses | 22,285,487.69 | 58.26% | | Net Cash Flow from Operating Activities | -89,731,688.13 | -159.15% | | Total Assets | 3,695,611,800.32 | 9.26% (vs. end of prior year) | | Owners' Equity Attributable to Shareholders of Listed Company | 1,786,822,432.21 | -1.00% (vs. end of prior year) | Q3 2021 Single Quarter Financial Indicators | Indicator | Current Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 513,557,941.23 | 9.34% | | Net Profit Attributable to Shareholders of Listed Company | -19,621,984.50 | 4.10% | [Non-Recurring Gains and Losses](index=2&type=section&id=%28II%29%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Year-to-date, total non-recurring gains and losses were **5.19 million RMB**, mainly from government grants, with adjusted net profit attributable to shareholders at **22.29 million RMB**, up **58.26%**, showing improved core business profitability Details of Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 276,454.31 | | Government Grants Included in Current Period P&L | 6,108,464.00 | | Net Other Non-Operating Income and Expenses | -474,561.14 | | Less: Income Tax and Minority Interest Impact | 1,992,163.26 | | **Total** | **5,192,196.28** | [Analysis of Key Financial Indicator Changes](index=2&type=section&id=%28III%29%20Reasons%20for%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Significant financial indicator changes include a **109.43%** increase in prepayments, **42.42%** rise in short-term borrowings, **159.15%** decrease in operating cash flow due to inventory, and **177.00%** increase in financing cash flow from new bank loans, supporting business expansion - Prepayments increased by **109.43%** compared to the beginning of the year, primarily due to stocking up on raw materials[9](index=9&type=chunk) - Short-term borrowings increased by **42.42%** compared to the beginning of the year, mainly due to increased bank borrowings for production and operations[10](index=10&type=chunk) - Net cash flow from operating activities decreased by **159.15%** year-on-year, primarily due to increased inventory stocking in the current period[10](index=10&type=chunk) - Net cash flow from financing activities increased by **177.00%** year-on-year, primarily due to increased bank borrowings for production and operations in the current period[10](index=10&type=chunk) [Shareholder Information](index=3&type=section&id=II%E3%80%81Shareholder%20Information) [Shareholding Information](index=3&type=section&id=%28I%29%20Total%20Common%20Shareholders%2C%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the reporting period end, the company had **42,684 common shareholders**, with top ten shareholders mostly domestic individuals and significant share pledges, notably by controlling shareholder Jiang Tianwu - As of the end of the reporting period, the company had a total of **42,684 common shareholders**[12](index=12&type=chunk) Top Ten Shareholders' Holdings and Pledges | Shareholder Name | Holding Percentage | Number of Pledged Shares | | :--- | :--- | :--- | | Jiang Tianwu | 18.75% | 88,000,000 | | Wu Jing | 11.59% | 0 | | Li Jianwei | 8.19% | 41,800,000 | | Li Jing | 5.67% | 42,710,000 | | Zhang Aichun | 5.30% | 35,000,000 | | Li Jun | 4.25% | 21,283,290 | - The company is unaware of any related party relationships or concerted actions among the top ten shareholders[13](index=13&type=chunk) [Quarterly Financial Statements](index=4&type=section&id=IV%E3%80%81Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=4&type=section&id=1%E3%80%81Consolidated%20Balance%20Sheet) As of September 30, 2021, total assets reached **3.70 billion RMB** (+9.26%), liabilities **1.86 billion RMB** (+20.90%) due to increased borrowings, and owners' equity **1.79 billion RMB** (-1.00%) Key Balance Sheet Items | Item | September 30, 2021 (RMB) | December 31, 2020 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,695,611,800.32 | 3,382,410,953.20 | 9.26% | | Total Liabilities | 1,863,348,133.78 | 1,541,297,642.95 | 20.90% | | Owners' Equity Attributable to Parent Company | 1,786,822,432.21 | 1,804,899,750.81 | -1.00% | - Among current assets, prepayments increased by **109.43%** from approximately **99 million RMB** to **209 million RMB** due to inventory stocking[9](index=9&type=chunk)[16](index=16&type=chunk) - Among current liabilities, short-term borrowings increased from **495 million RMB** to **705 million RMB**, and notes payable from **406 million RMB** to **638 million RMB**, being the primary drivers of liability growth[10](index=10&type=chunk)[17](index=17&type=chunk) [Consolidated Income Statement](index=7&type=section&id=2%E3%80%81Consolidated%20Income%20Statement%20Year-to-Date) Q1-Q3 2021 operating revenue reached **1.53 billion RMB** (+12.82%), but increased operating, sales, and R&D costs limited net profit attributable to shareholders to **27.48 million RMB** (+8.77%), indicating limited profitability improvement Key Income Statement Items (Year-to-Date) | Item | Current Period (RMB) | Prior Period (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,529,888,170.68 | 1,356,028,388.66 | 12.82% | | Total Operating Costs | 1,498,139,815.67 | 1,354,181,631.48 | 10.63% | | Of which: Sales Expenses | 468,414,547.53 | 414,803,012.46 | 12.92% | | R&D Expenses | 56,173,669.60 | 45,257,722.15 | 24.12% | | Net Profit Attributable to Parent Company Owners | 27,477,683.97 | 25,262,744.15 | 8.77% | [Consolidated Cash Flow Statement](index=9&type=section&id=3%E3%80%81Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) Q1-Q3 2021 operating cash flow turned negative at **-89.73 million RMB** due to increased purchases, investing activities had a **214 million RMB** net outflow, financing activities a **140 million RMB** net inflow, leading to a **164 million RMB** net decrease in cash and equivalents Key Cash Flow Statement Items (Year-to-Date) | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -89,731,688.13 | 151,705,876.66 | | Net Cash Flow from Investing Activities | -214,232,677.14 | -161,632,275.18 | | Net Cash Flow from Financing Activities | 140,359,213.89 | -182,290,473.66 | | Net Increase in Cash and Cash Equivalents | -163,826,027.97 | -192,132,962.69 | - Among operating cash outflows, 'cash paid for goods and services' significantly increased to **1.14 billion RMB** from **703 million RMB** in the prior year, primarily causing negative operating cash flow[25](index=25&type=chunk) - In investing activities, 'cash paid for investments' was **53 million RMB**, compared to zero in the prior year, a key reason for the expanded investment outflow[25](index=25&type=chunk) [Notes on Financial Statement Adjustments](index=11&type=section&id=%28II%29%20Notes%20on%20Financial%20Statement%20Adjustments) Effective January 1, 2021, the company adopted new lease standards, retrospectively adjusting opening financial statements by recognizing **69.21 million RMB** in 'right-of-use assets' and 'lease liabilities,' without affecting opening owners' equity - The company first adopted new lease standards in 2021, adjusting its financial statements as of January 1, 2021[27](index=27&type=chunk) Impact of New Lease Standards Adoption on Opening Balance Sheet | Adjustment Item | Adjustment Amount (RMB) | | :--- | :--- | | Right-of-Use Assets | +69,205,724.20 | | Lease Liabilities | +69,205,724.20 | [Audit Report](index=14&type=section&id=%28III%29%20Audit%20Report) This quarterly report is unaudited - The company's Q3 2021 report is unaudited[32](index=32&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,016,330,229.45, representing a 14.67% increase compared to CNY 886,346,845.64 in the same period last year[21]. - The net profit attributable to shareholders was CNY 47,099,668.47, which is a 3.01% increase from CNY 45,722,887.32 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was CNY 42,635,131.27, up 14.41% from CNY 37,265,275.87 in the previous year[21]. - The company reported a significant decrease in net cash flow from operating activities, which was CNY -109,489,798.57, compared to CNY 59,648,591.69 in the same period last year, a decline of 283.56%[21]. - The company achieved a revenue of 1,016,330,229.45 CNY in the first half of 2021, representing a year-on-year growth of 14.67%[47]. - The net profit attributable to the listed company was 4,709.97 million CNY, an increase of 3.01% compared to the previous year[33]. - The company reported a 47.52% increase in revenue from pillow cores, totaling ¥67,045,057.70[51]. - The company reported a decrease in tax expenses to ¥8,456,042.79 from ¥4,666,074.11 in the previous year, indicating improved profitability[148]. - The total comprehensive income for the first half of 2021 was 45,292,000, a decrease of 534,930 compared to the previous period[163]. Assets and Liabilities - The company's total assets increased by 9.12% to CNY 3,690,938,868.49 from CNY 3,382,410,953.20 at the end of the previous year[21]. - The total liabilities rose to CNY 1,843,269,334.33 from CNY 1,541,297,642.95, marking an increase of approximately 19.6%[141]. - The company's equity increased to CNY 1,847,669,534.16 from CNY 1,841,113,310.25, showing a slight increase of approximately 0.4%[142]. - The total liabilities to equity ratio stands at approximately 1.00, indicating a balanced leverage position[141]. - The total assets at the end of the reporting period amounted to 7,588.00 million RMB, reflecting a slight increase from the previous period[162]. - The total liabilities at the end of the reporting period were 4,911.00 million RMB, reflecting a manageable debt level[162]. Cash Flow - The company's operating cash flow showed a significant decline of 283.56%, resulting in a negative cash flow of 109,489,798.57 CNY[47]. - Cash generated from operating activities was ¥1,168,755,892.81, compared to ¥1,114,631,580.92 in the first half of 2020, reflecting a positive cash flow trend[152]. - The net cash flow from investing activities was -100,574,188.06 CNY, showing a slight improvement from -114,298,737.62 CNY in the previous year[154]. - Cash inflow from financing activities totaled 613,350,000.00 CNY, up from 289,000,000.00 CNY in the same period last year[154]. - The ending cash and cash equivalents balance was 352,611,450.45 CNY, compared to 297,552,095.75 CNY at the end of the previous year[154]. Market Position and Strategy - The company aims to position itself as the leading brand in high-end bedding products, focusing on product, channel, and operational upgrades[29]. - The company collaborates with top luxury brand designers and institutions to enhance product quality and store image[30]. - The company has established a nationwide online and offline retail network, integrating both direct sales and franchise models[30]. - The company has maintained a leading position in the high-end bedding market, ranking first in sales for 12 consecutive years from 2009 to 2020[43]. - The company plans to enhance its high-end bedding product offerings and improve operational capabilities to meet market demands[77]. - The company plans to expand its market presence and invest in new product development to drive future growth[143]. Research and Development - The company’s R&D investment increased by 10.95% to 35,501,258.94 CNY, reflecting a commitment to product quality and innovation[47]. - The company has launched a high-end bedding standard in collaboration with Guangzhou Inspection and Testing Certification Group, leading the industry in quality grading for premium materials[39]. - The company has initiated research and development for new technologies aimed at improving product offerings and market competitiveness[162]. Risks and Challenges - The company faces risks such as intensified industry competition and rising costs of raw materials and labor[5]. - Raw material costs, particularly for fabric and filling materials, account for over 85% of operating costs, making the company vulnerable to price fluctuations[77]. - The company faces risks from intensified industry competition and changing consumer preferences, particularly regarding fabric quality and style[77]. Shareholder Information - The company did not plan to distribute cash dividends or issue bonus shares for this period[6]. - The total number of common shareholders at the end of the reporting period was 42,461[125]. - The largest shareholder, Jiang Tianwu, holds 19.36% of the shares, totaling 146,770,133 shares[125]. - The second-largest shareholder, Wu Jing, holds 11.80% of the shares, totaling 89,484,432 shares, with a decrease of 3,553,200 shares during the reporting period[125]. Corporate Governance and Compliance - The semi-annual financial report was not audited[96]. - The company had no major litigation or arbitration matters during the reporting period[98]. - There were no significant related party transactions during the reporting period[100]. - The financial statements were approved by the board of directors on August 26, 2021, reflecting the company's commitment to transparency and compliance with accounting standards[185]. - The accounting policies comply with the latest enterprise accounting standards issued by the Ministry of Finance, ensuring accurate financial reporting[189].

Revenue and Profit - Revenue for Q1 2021 reached ¥502,915,615.88, an increase of 38.68% compared to ¥362,650,635.29 in the same period last year[8] - Net profit attributable to shareholders was ¥34,407,778.01, up 12.55% from ¥30,571,807.45 year-on-year[8] - Net profit excluding non-recurring items increased by 30.44% to ¥31,986,818.93 from ¥24,522,026.41 in the previous year[8] - Total operating revenue for Q1 2021 was CNY 502,915,615.88, an increase of 38.7% compared to CNY 362,650,635.29 in Q1 2020[38] - Net profit for Q1 2021 reached CNY 34,851,932.89, representing a 20.5% increase from CNY 29,025,757.16 in Q1 2020[40] - Total operating profit for Q1 2021 was a loss of CNY 601.14 thousand, an improvement from a loss of CNY 29.70 million in Q1 2020[41] Cash Flow and Investments - Operating cash flow turned negative at -¥45,022,660.52, a decline of 143.45% compared to ¥103,609,700.18 in the same period last year[8] - Cash flow from investment activities decreased by 40.38%, reflecting a reduction in the purchase of long-term assets[15] - Operating cash flow for Q1 2021 showed a net outflow of CNY 45.02 million, compared to a net inflow of CNY 103.61 million in Q1 2020[46] - The net cash flow from financing activities was negative at ¥26.93 million in Q1 2021, contrasting with a positive net cash flow of ¥7.5 million in Q1 2020[49] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,422,125,777.08, a slight increase of 1.17% from ¥3,382,410,953.20 at the end of the previous year[8] - The company's current assets totaled CNY 1,929,404,638.87 as of March 31, 2021, compared to CNY 1,881,670,739.17 at the end of 2020, indicating an increase of about 2.53%[29][28] - Total liabilities were CNY 1,546,256,164.58 as of March 31, 2021, slightly up from CNY 1,541,297,642.95, indicating a marginal increase of about 0.06%[31][32] - The company's total assets as of March 31, 2021, were CNY 4,897,680,327.28, compared to CNY 4,801,791,485.07 at the end of 2020[36] - Total liabilities as of March 31, 2021, were CNY 3,275,254,337.05, compared to CNY 3,180,951,998.54 at the end of 2020, indicating a rise of 3.0%[36] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 43,476[10] - The company's equity attributable to shareholders reached CNY 1,839,131,767.25, compared to CNY 1,804,899,750.81 at the end of 2020, marking an increase of approximately 1.89%[32][32] - The total equity attributable to shareholders as of March 31, 2021, was CNY 1,622,425,990.23, a slight increase from CNY 1,620,839,486.53 at the end of 2020[36] Expenses - Management expenses surged by 76.39%, primarily due to organizational restructuring and an increase in management personnel[15] - Total operating costs for Q1 2021 were CNY 471,559,305.43, up 34.0% from CNY 351,895,424.86 in the same period last year[39] - Research and development expenses for Q1 2021 were CNY 15,741,258.78, an increase from CNY 12,692,772.24 in the previous year, reflecting a growth of 24.0%[39] - Research and development expenses increased to CNY 12.32 million, up 59.73% from CNY 7.74 million in the previous year[41] - The company incurred a financial expense of CNY 7.50 million, slightly up from CNY 7.28 million in the previous year[41] Compliance and Adjustments - The company reported no significant non-compliance issues or overdue commitments during the reporting period[18][22] - The company did not engage in any significant research and development activities or new product launches during the reporting period[21][24] - The company did not adjust the balance sheet for the new leasing standards implemented from January 1, 2021, as it did not require retrospective adjustments[50] - The Q1 2021 report was not audited, indicating that the figures may be subject to change upon final audit[51]

Financial Performance - The company's operating revenue for 2020 was ¥2,220,109,147.11, a decrease of 14.73% compared to ¥2,603,609,857.53 in 2019[18] - The net profit attributable to shareholders for 2020 was ¥44,920,370.12, down 47.39% from ¥85,389,617.58 in 2019[18] - The net profit after deducting non-recurring gains and losses was ¥32,666,951.43, a decline of 60.00% compared to ¥81,670,020.68 in 2019[18] - The net cash flow from operating activities was ¥359,927,169.42, a decrease of 35.12% from ¥554,772,599.51 in 2019[18] - The total assets at the end of 2020 were ¥3,382,410,953.20, down 2.65% from ¥3,474,412,097.13 at the end of 2019[18] - The net assets attributable to shareholders decreased by 6.07% to ¥1,804,899,750.81 from ¥1,921,513,149.85 at the end of 2019[18] - The basic earnings per share for 2020 was ¥0.06, a decrease of 45.45% from ¥0.11 in 2019[18] - The weighted average return on net assets was 2.22%, down from 4.39% in 2019, reflecting a decline of 2.17%[18] Dividend Distribution - The company plans to distribute a cash dividend of ¥0.6 per 10 shares (including tax) to all shareholders[5] - In 2019, the company distributed a cash dividend of 1.5 RMB per 10 shares, totaling 114.40 million RMB[92] - In 2020, the company increased its cash dividend to 2 RMB per 10 shares, amounting to 150.94 million RMB[93] - The proposed cash dividend is CNY 0.6 per 10 shares (tax included), with a total distributable profit of CNY 94,577,465.12[96] - The cash dividend distribution accounted for 100% of the total profit distribution amount[96] Market Challenges - The company faced challenges due to the COVID-19 pandemic, which impacted offline sales channels and limited online business growth[36] - The company faces risks including intensified industry competition and rising costs of raw materials and labor[5] - Raw materials and labor costs account for over 85% of the company's operating costs, making fluctuations in these prices a significant risk[87] Sales and Revenue Breakdown - The company's main product, bedding sets, generated revenue of CNY 821.91 million, accounting for 37.02% of total revenue, which is a decline of 19.95% year-on-year[40] - The revenue from the central region (华中) increased by 18.16% to CNY 1.50 billion, accounting for 67.36% of total revenue[43] - The average revenue per direct store decreased by 18.86% to CNY 943,200[44] - The sales volume of home textiles decreased by 9.40% to 2.61 million units, while production volume dropped by 21.08% to 2.67 million units[46] - The total sales revenue from the top five customers was CNY 115.48 million, representing 5.20% of total sales[50] - The total procurement amount from the top five suppliers was CNY 250.09 million, accounting for 20.39% of total procurement[51] Strategic Initiatives - The company is focusing on integrating online and offline sales channels to improve customer experience and adapt to changing market conditions[29] - The company has implemented a strategy to enhance home care services and product offerings in response to increased consumer demand during the pandemic[37] - The company has established a strong R&D team and has obtained a total of 729 patents, enhancing its innovation capabilities[33] - The company plans to focus on high-end bedding products, aiming to become the leading brand in this segment[84] - The company will enhance its brand image by collaborating with top design resources and upgrading its brand logo[85] Operational Adjustments - The company opened 59 new direct stores but closed 111 due to operational challenges and strategic adjustments[44] - The company is actively optimizing its internal structure and enhancing talent acquisition to improve operational efficiency[37] - The company has established a comprehensive training and incentive system to attract and retain talent, addressing the risk of human resource shortages[88] Project Developments - The company achieved a project investment progress of 99.77% for the new production line with an annual capacity of 300,000 bedding sets[75] - The logistics base construction project showed a completion rate of only 0.76% as of the end of 2020[75] - The smart factory information technology project had a completion rate of 0.13% by the end of the reporting period[75] - The company plans to delay the construction period of the "annual production of 200,000 mattresses project" to December 2023 due to delays caused by trade wars and the COVID-19 pandemic[76] Governance and Compliance - The company has established a sound risk control system to protect the rights and interests of all shareholders and creditors[126] - The company has maintained effective communication with investors, ensuring timely and accurate information disclosure[126] - The company has implemented stock incentive plans, repurchasing and canceling 5,010,000 shares from the 2018 plan and 800,000 shares from the 2019 plan due to performance not meeting targets[108][109] - The company has not engaged in any major related party transactions during the reporting period[110] Employee and Management Structure - The total number of employees in the company is 3,150, with 2,142 in the parent company and 1,008 in major subsidiaries[171] - The company has a total of 4,150 employees receiving salaries during the reporting period[171] - The management team is focused on leveraging their industry experience to drive future growth and operational efficiency[162] - The company has established a management academy for regular employee training, focusing on various training forms including onboarding and skills training[173] Audit and Financial Reporting - The audit opinion for the financial statements was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position[195] - The company’s internal control over financial reporting was deemed effective, with no material misstatements found during the audit[196] - The management's assessment of the expected credit loss model for accounts receivable was highlighted as a key audit matter due to its significant impact on financial reporting[199]

Financial Performance - Operating revenue for the reporting period was CNY 469,681,543.02, a decrease of 12.67% year-on-year, and a total of CNY 1,356,028,388.66 for the year-to-date, down 19.64%[9] - Net profit attributable to shareholders was a loss of CNY 20,460,143.17, a decline of 236.36% compared to the same period last year, with a year-to-date net profit of CNY 25,262,744.15, down 74.24%[9] - Basic earnings per share for the reporting period was -CNY 0.0270, a decrease of 239.90% year-on-year[9] - Total operating revenue for the third quarter was CNY 469,681,543.02, a decrease of 12.7% compared to CNY 537,841,417.02 in the same period last year[41] - The company reported a net loss of CNY 5,041,359.95 for the year-to-date period, compared to a profit of CNY 37,067,001.49 in the previous year[44] - The net profit for Q3 2020 was a loss of CNY 18,652,639.02, compared to a profit of CNY 12,509,187.30 in Q3 2019[43] - The total profit for Q3 2020 was CNY 34,236,494.07, down 68.3% from CNY 108,276,852.72 in the previous year[50] - The company's total operating revenue for the year-to-date period was CNY 1,356,028,388.66, a decrease of 19.6% from CNY 1,687,541,250.74 in the same period last year[48] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 3,576,438,755.21, an increase of 2.94% compared to the end of the previous year[9] - The total liabilities increased to CNY 3,299,328,480.84, up from CNY 2,311,468,979.24, reflecting a significant rise in current liabilities[39] - The total assets reached CNY 4,875,588,691.22, compared to CNY 4,068,525,487.37 in the previous year, indicating growth in the company's asset base[39] - The total current liabilities amounted to CNY 1,437,188,370.55, compared to CNY 1,142,233,648.15 in the previous year, indicating a significant increase[34] - The company's total assets reached CNY 4,068,525,487.37, with current assets totaling CNY 2,475,352,831.44[68] - Total liabilities amounted to CNY 1,423,900,922.88, with current liabilities at CNY 1,343,484,991.88[65] Cash Flow - Cash flow from operating activities increased by 86.74% year-to-date, totaling CNY 151,705,876.66[9] - The cash flow from operating activities for the period was CNY 151,705,876.66, an increase of 86.3% compared to CNY 81,237,918.16 in the same period last year[56] - The net cash flow from operating activities for the third quarter was CNY 117,221,631.11, an increase from CNY 90,039,685.83 in the same period last year[59] - The total cash inflow from financing activities was CNY 629,000,360.00, compared to CNY 593,676,000.00 in the previous year[60] - The cash outflow from financing activities amounted to CNY 811,290,833.66, up from CNY 532,297,701.63 year-on-year[60] - The net cash flow from investing activities was -CNY 161,632,275.18, a decrease from -CNY 211,731,448.01 in the previous year[57] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 45,337[12] - The top shareholder, Jiang Tianwu, holds 19.36% of the shares, amounting to 146,770,133 shares, with 110,077,600 shares pledged[13] - The company has completed the repurchase and cancellation of 5,010,000 shares of the 2018 restricted stock plan at a price of CNY 3.0231 per share, which accounted for 0.66% of the total share capital before repurchase[20] - The repurchase and cancellation of 800,000 shares from the 2019 restricted stock plan was completed at a price of CNY 2.0934 per share, representing 0.10% of the total share capital before repurchase[21] Inventory and Receivables - Prepayments increased by 552.11% compared to the beginning of the period, mainly due to inventory purchases of raw materials and home products[17] - Other receivables grew by 71.25% compared to the beginning of the period, primarily due to prepaid rent and employee advances[17] - Accounts receivable decreased to CNY 362,578,811.61 from CNY 457,980,116.60, indicating a reduction of approximately 20.8%[33] - Inventory decreased to CNY 673,610,721.75 from CNY 718,154,248.38, reflecting a decline of about 6.2%[33] - The company reported a decrease in inventory to CNY 437,731,982.48 from CNY 418,097,748.46, suggesting improved inventory management[36] Research and Development - Research and development expenses decreased to CNY 13,260,601.02 in Q3 2020 from CNY 36,073,440.56 in Q3 2019, a reduction of 63.3%[44] - The company's R&D expenses in Q3 2020 were CNY 45,257,722.15, a decrease of 13.5% from CNY 52,482,532.90 in Q3 2019[50] Management Strategy - The company's management indicated a focus on market expansion and new product development in the upcoming quarters[50]

Group 1: Event Details - The company will participate in the "2020 Annual Investor Online Reception Day" organized by the Hunan Securities Regulatory Bureau and other associations [1] - The event will be held online via the "Panorama Roadshow" platform on September 11, 2020, from 15:00 to 17:00 [1] - Investors can access the event through the website: http://rs.p5w.net/ [1] Group 2: Company Commitment - The company and its board members guarantee the accuracy and completeness of the disclosed information [1] - The board secretary and securities affairs representative will engage in online communication with investors during the event [1] Group 3: Investor Engagement - The company encourages widespread participation from investors [1]