Group 1: Impact of COVID-19 - The pandemic has affected employee attendance, logistics, and customer audits, impacting the company's operations [3] - The company's overseas sales as a percentage of total revenue have increased, although the pandemic and international policies have had some effect on performance [3] Group 2: Research and Development - The company has established a comprehensive R&D system covering basic materials, product design, process improvement, and production equipment, achieving significant improvements in charging speed, energy density, and safety [3][4] - In 2021, R&D expenses accounted for 9.42% of revenue, indicating a strong commitment to innovation [5] Group 3: Market Strategy and Customer Base - The company focuses on the emerging consumer lithium battery sector, leveraging a strong customer base that includes well-known brands like Huawei, Xiaomi, and Sony [6] - The company plans to expand its customer base and enhance customer loyalty by exploring new channels and fields [5][6] Group 4: Financial Performance and Challenges - The company experienced a significant decline in performance in Q3, attributed to the pandemic, macroeconomic conditions, and rising raw material costs [4][6] - The company is actively working to stabilize its performance by focusing on new customer acquisition and market expansion [4][5] Group 5: Future Outlook - The company aims to continue focusing on the development, production, and sales of consumer lithium-ion batteries, with future growth points identified in Bluetooth headsets, smart wearables, and smart home devices [6] - The company is monitoring order stability and production capacity utilization, which remain relatively stable [5]

Group 1: Event Details - The event is titled "Chongqing Listed Companies 2022 Investor Online Collective Reception Day" [1] - It is organized by the Chongqing Securities Regulatory Bureau, Chongqing Listed Companies Association, Shanghai Stock Exchange Information Network Co., Ltd., and Shenzhen Qianjing Network Co., Ltd. [1] - The event will take place on December 23, 2022, from 15:00 to 17:00 [1] Group 2: Participation Information - Senior management of ZhiJian Electronics will participate in the online event [1] - Investors can join the event via the "Qianjing Roadshow" platform at http://rs.p5w.net [1] - The company encourages widespread participation from investors [1]

Revenue and Profitability - The company's revenue for Q3 2022 was CNY 265,580,711.83, representing a year-on-year increase of 19.48%[3] - The net profit attributable to shareholders decreased by 64.82% to CNY 11,658,544.19 in Q3 2022[3] - The basic earnings per share (EPS) fell by 68.33% to CNY 0.20 for Q3 2022[3] - The company's total revenue for the period was CNY 668,220,692.38, up from CNY 579,925,217.22 in the previous period, indicating an increase of about 15.3%[22] - Operating profit for the third quarter was CNY 52,065,280.10, a decrease of approximately 48.7% compared to CNY 101,437,550.82 in the same period last year[23] - Net profit attributable to shareholders was CNY 53,488,422.94, down from CNY 94,090,912.16, reflecting a decline of about 43.2%[23] - The total comprehensive income for the period was CNY 53,488,422.94, compared to CNY 94,090,912.16 in the previous period, indicating a decrease of approximately 43%[24] - Basic and diluted earnings per share were both CNY 0.97, down from CNY 1.77 in the previous period, reflecting a decline of about 45%[24] Assets and Liabilities - Total assets increased by 86.37% to CNY 2,117,945,806.99 compared to the end of the previous year[3] - The equity attributable to shareholders rose by 165.12% to CNY 1,638,565,482.82 at the end of Q3 2022[3] - Total current liabilities decreased to CNY 444,665,703.02 from CNY 497,317,942.29, a reduction of about 10.6%[21] - The company’s long-term liabilities rose to CNY 34,714,621.15 from CNY 21,051,447.71, an increase of about 64.7%[21] - The capital reserve increased significantly to CNY 1,269,857,830.06 from CNY 320,536,602.80, reflecting a growth of approximately 296.5%[21] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 45,757,748.45, a decrease of 335.73%[3] - Cash inflow from operating activities totaled CNY 568,041,137.95, an increase from CNY 497,177,235.45 in the previous period, representing an increase of approximately 14.3%[26] - The net cash flow from operating activities was negative at CNY -45,757,748.45, compared to a positive CNY 19,411,266.39 in the previous period[26] - Cash flow from investing activities was negative at CNY -426,949,548.98, worsening from CNY -142,280,881.49 in the previous period[26] - Cash flow from financing activities generated a net inflow of CNY 894,797,916.51, significantly higher than CNY 43,081,365.40 in the previous period[26] - The ending balance of cash and cash equivalents was CNY 514,237,199.18, up from CNY 39,067,513.11 in the previous period[27] - The company reported a cash inflow of CNY 23,300,920.10 from other operating activities, compared to CNY 10,025,583.11 in the previous period, marking an increase of approximately 132%[26] - The company’s total cash and cash equivalents increased by CNY 429,643,234.80 during the period, contrasting with a decrease of CNY -80,115,263.82 in the previous period[26] Inventory and Operating Costs - The company’s inventory rose by 39.03% to CNY 270,137,248.01, reflecting increased stock levels[8] - The company's operating costs increased by 41.37% to ¥520,212,569.14 in the first nine months of 2022, primarily due to rising raw material and labor costs[9] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,864[11] - The largest shareholder, Zhu Chuanqin, holds 29.68% of the company's shares, totaling 21,014,650 shares[11] - The total number of restricted shares at the end of the period is 54,016,100 shares, with an increase of 913,716 shares during the period[16] - The largest shareholder, 重庆紫建投资有限公司, holds 3,610,750 restricted shares, which will be released on August 8, 2025[16] - The shareholder 朱传钦 holds 21,014,650 restricted shares, also set to be released on August 8, 2025[14] - The shareholder 肖雪艳 has 6,788,200 restricted shares, with a release date of August 8, 2023[14] - The shareholder 宁波梅山保税港区领慧投资合伙企业 holds 2,181,667 restricted shares, with a release date of August 8, 2023[14] - The shareholder 北京云晖投资管理有限公司 holds 2,785,400 restricted shares, with a release date of August 8, 2023[15] - The shareholder 贵州开开门投资管理有限公司 holds 166,667 restricted shares, with a release date of August 8, 2023[15] - The shareholder 朱金花 holds 2,888,600 restricted shares, with a release date of August 8, 2025[14] - The shareholder 重庆市维都利投资合伙企业 holds 4,462,700 restricted shares, with a release date of August 8, 2025[16] Other Income and Expenses - Other income surged by 633.62% to ¥22,670,473.38, mainly due to increased government subsidies received during the reporting period[9] - Cash received from other operating activities rose by 132.41% to ¥23,300,920.10, attributed to higher government subsidies[9] - The company reported a significant improvement in financial expenses, with a decrease of 169.53% to -¥1,666,289.91 due to increased exchange gains[9] - The company experienced a 83.13% reduction in asset impairment losses, amounting to -¥1,718,680.54, mainly due to inventory write-offs[9] - The company did not report any investment income during the current period, a 100% decrease compared to the previous year[9] - Research and development expenses for the period were CNY 56,299,852.62, slightly up from CNY 53,952,493.98, indicating a growth of about 4.3%[23]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 402,639,980.55, representing a 12.58% increase compared to CNY 357,635,911.74 in the same period last year[25]. - The net profit attributable to shareholders decreased by 31.37% to CNY 41,829,878.75 from CNY 60,952,780.43 year-on-year[25]. - Basic earnings per share fell by 31.30% to CNY 0.79 from CNY 1.15 in the same period last year[25]. - The company's total profit for the first half of 2022 was CNY 42.89 million, a decrease of 35.2% compared to CNY 66.06 million in the first half of 2021[158]. - The net profit margin for the first half of 2022 was reported at 5.0%, indicating a stable profitability level[170]. - The company reported a total comprehensive income of 60.952 million for the current period, reflecting a significant increase[174]. Cash Flow and Liquidity - The net cash flow from operating activities turned negative at CNY -16,084,760.67, a decline of 139.24% compared to CNY 40,990,561.74 in the previous year[25]. - The company's cash and cash equivalents decreased from ¥84,593,964.38 at the beginning of the year to ¥68,955,947.00 by June 30, 2022, a decline of approximately 18.5%[150]. - The company reported a net cash decrease of -17,088,017.38 CNY for the first half of 2022, an improvement from -61,031,566.43 CNY in the same period of 2021[166]. - The ending cash and cash equivalents balance for H1 2022 was 67,505,947.00 CNY, compared to 58,151,210.50 CNY at the end of H1 2021, showing a year-over-year increase of approximately 16%[166]. Assets and Liabilities - Total assets increased by 12.49% to CNY 1,278,380,521.01 from CNY 1,136,424,422.62 at the end of the previous year[25]. - The total liabilities increased to CNY 618,495,609.64 from CNY 518,369,390.00, representing a rise of 19.3%[152]. - The company's total assets at the end of the reporting period were 15.47 billion yuan, reflecting a stable financial position[172]. - The total liabilities at the end of the reporting period were 41.41 billion yuan, maintaining a manageable debt level[172]. Research and Development - Research and development expenses rose by 19.67% to ¥21,588,972.69, compared to ¥18,040,820.35 in the previous year, reflecting the company's commitment to innovation[64]. - The company focuses on basic research and application research, with basic research led by its wholly-owned subsidiary, ZhiJian New Energy, and application research primarily conducted by the parent company and Guangdong Weiduli[46]. - The company aims to enhance its technological capabilities through ongoing research and development initiatives[174]. Market Position and Strategy - The company emphasizes the importance of risk awareness for investors regarding forward-looking statements in the report[4]. - The company has established partnerships with leading brands such as Huawei, Xiaomi, and Sony, enhancing its market position and customer loyalty[57]. - The company has formed a competitive advantage in the emerging consumer lithium battery sector through years of investment and accumulation in technology, talent, and customer relationships[53]. - The company plans to enhance R&D investment to develop high-tech, competitive products that meet market demands, while also expanding its market channels and customer networks[88]. Production and Operations - The company implements a "make-to-order" production management model, ensuring production plans are based on customer orders to meet specific demands[42]. - The company has established a dynamic supplier evaluation management system to ensure the quality and stability of raw material supply, requiring suppliers to provide SGS test reports annually[41]. - The company utilizes a real-time monitoring and traceability system through MES technology, enhancing production efficiency and responsiveness[42]. Intellectual Property - As of June 30, 2022, the company holds 139 patents, including 11 invention patents, significantly breaking foreign monopolies in the button-type rechargeable lithium battery technology[33]. - The company has established a robust intellectual property management system to protect its innovations and ensure compliance with legal requirements[46]. Corporate Governance and Compliance - The semi-annual financial report was not audited[113]. - The company has not faced any administrative penalties related to environmental issues during the reporting period, indicating compliance with relevant regulations[103]. - The company did not engage in any major asset or equity sales during the reporting period[84]. Social Responsibility - The company actively engages in social responsibility initiatives, including employee training and community support, to foster a positive corporate culture[106].