JSSS(SH:600220)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 816,152,863.59, representing a 3.09% increase compared to CNY 791,720,973.00 in the same period last year[20]. - The net profit attributable to shareholders was CNY 6,124,471.10, a significant decrease of 119.01% from a loss of CNY 32,216,781.14 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 2,567,110.97, down 107.45% from a loss of CNY 34,447,131.98 in the same period last year[21]. - The net cash flow from operating activities was CNY 162,143,339.13, a turnaround from a negative cash flow of CNY 93,148,653.26 in the previous year, marking a 274.07% improvement[21]. - Basic earnings per share increased to CNY 0.0034 from a loss of CNY 0.0181, representing a growth of 118.78% year-over-year[22]. - Diluted earnings per share also rose to CNY 0.0034 from a loss of CNY 0.0181, reflecting the same percentage increase of 118.78%[22]. - The weighted average return on equity improved to 0.30% from -1.51%, an increase of 1.81 percentage points[22]. - Operating profit reached 970,600 yuan, up 110.36% year-on-year[38]. - The textile business generated revenue of 614 million yuan, a growth of 21.27% year-on-year, with a gross margin of 24.40%, up 6.87 percentage points[38]. - Domestic sales revenue was 463 million yuan, increasing by 35.13% year-on-year, while foreign sales revenue decreased by 7.94% to 150 million yuan[38]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 4,599,070,191.00, down 6.39% from CNY 4,912,963,339.81 at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 2.33% to CNY 1,994,494,898.49 from CNY 2,042,140,759.51 at the end of the previous year[21]. - The company's total liabilities decreased by 4.24% to CNY 1,803,053,404.09 from CNY 1,882,810,256.89 at the end of the previous year[41]. - The company's cash and cash equivalents decreased by 26.58% to CNY 339,292,202.23 from CNY 462,124,982.49 at the end of the previous year[41]. - The company's total assets included CNY 1,126,388,113.01 in inventory, which accounted for 24.49% of total assets, reflecting a 17.94% increase from CNY 955,023,221.72 last year[41]. - The company's short-term borrowings decreased by 4.24% to CNY 1,803,053,404.09 from CNY 1,882,810,256.89 at the end of the previous year[41]. Industry Trends and Challenges - The textile manufacturing industry is transitioning from "capacity expansion" to "value growth," emphasizing technological upgrades and brand development[26]. - The textile industry faces challenges such as rising commodity prices and structural labor shortages, impacting production and operational pressures[27]. - Wool prices have risen significantly since 2021, impacting operational costs and increasing business risks[49]. - The textile industry faces increased operational risks due to macroeconomic uncertainties and potential declines in market demand[48]. Research and Development - The company has established several research institutions, including a national engineering technology research center for new wool spinning materials[35]. - The company is advancing towards smart manufacturing, having transformed one weaving workshop into an efficient IoT smart weaving workshop[37]. - Research and development expenses for the first half of 2021 were CNY 6,673,077.44, up from CNY 6,233,723.76 in the same period of 2020, indicating a focus on innovation[95]. Environmental Compliance - Environmental protection measures are in place, with all subsidiaries meeting relevant emission standards[56]. - The company has developed emergency response plans for environmental incidents, ensuring compliance with regulatory requirements[58]. - The company has implemented an environmental self-monitoring plan, with automatic online monitoring devices installed at all discharge outlets[59]. - There were no administrative penalties due to environmental issues during the reporting period[60]. - The company adheres to national environmental protection laws and regulations, focusing on sustainable development and minimizing pollutant emissions[60]. Legal Matters - The company is involved in a significant lawsuit related to a rental contract dispute, with a claim amounting to RMB 10.8 million in deposits and RMB 15.1 million in compensation[66]. - The company has not received any legal documents regarding the lawsuit and is currently seeking a retrial in the Shanghai High Court[66]. - The company has not faced any violations or penalties involving its directors, supervisors, or senior management during the reporting period[67]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 99,451[78]. - The top ten shareholders collectively held 34.23% of the voting rights[81]. - Jiangsu Sunshine Group Co., Ltd. held 226,311,454 shares, accounting for 12.69% of total shares[80]. - Chen Lifeng held 148,181,020 shares, representing 8.31% of total shares[80]. - The report indicated no changes in the controlling shareholder or actual controller[82]. Financial Reporting and Accounting Policies - The company's financial statements are prepared in accordance with the Chinese accounting standards[124]. - The consolidated financial statements include all subsidiaries controlled by the company, reflecting the overall financial position, operating results, and cash flows of the entire corporate group[132]. - The company recognizes revenue when control of goods or services is transferred to customers, allocating transaction prices to performance obligations based on their standalone selling prices[198]. - The company recognizes employee benefits as liabilities during the accounting period in which services are provided, including social insurance and housing fund contributions[193].