JSSS(SH:600220)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 894,098,508.68, representing a 9.55% increase compared to CNY 816,152,863.59 in the same period last year[17]. - Basic earnings per share increased by 735.29% to CNY 0.0284 from CNY 0.0034 year-on-year[18]. - Net profit attributable to shareholders reached CNY 50,618,415.10, a 726.49% increase compared to CNY 6,124,471.10 in the same period last year[19]. - The textile business generated main operating income of 743 million RMB, up 21.18% compared to the previous year[34]. - The gross margin for the textile business improved to 29.23%, an increase of 4.83 percentage points year-on-year[34]. - The company reported a net profit of CNY 374,922,009.83, an increase from CNY 359,970,401.25, showing a growth of approximately 4.4% in retained earnings[99]. - The company reported a total profit of approximately ¥118.81 million for the first half of 2022, compared to ¥27.37 million in the same period of 2021, marking an increase of approximately 334%[109]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 257.51% to -CNY 255,388,354.97 from CNY 162,143,339.13 year-on-year[19]. - The company's cash and cash equivalents decreased to CNY 645,062,985.88 from CNY 843,005,069.32, a decline of about 23.5%[97]. - The cash flow from operating activities showed a net outflow of approximately ¥255.39 million in the first half of 2022, contrasting with a net inflow of ¥162.14 million in the same period of 2021[110]. - The total cash and cash equivalents at the end of the period were 312,446,135.87 RMB, down from 459,508,365.04 RMB at the beginning of the period, indicating a decrease in liquidity[113]. Assets and Liabilities - The total assets increased by 3.56% to CNY 4,912,111,322.09 from CNY 4,743,356,815.69 at the end of the previous year[19]. - Total liabilities increased to CNY 2,576,321,872.56 from CNY 2,418,606,095.77, marking a rise of approximately 6.5%[99]. - The total current assets reached CNY 2,626,898,030.59, up from CNY 2,492,673,364.37, reflecting a growth of approximately 5.4%[97]. - Accounts receivable increased by 47.26% compared to the previous year, indicating a reduction in cash received from customers[40]. - Inventory increased by 7.71% year-over-year, reflecting ongoing operational activities[40]. Investments and Subsidiaries - The company invested 5 million RMB in establishing Inner Mongolia Cheng'an New Energy Co., Ltd. as part of its intention to enter the photovoltaic industry[35]. - The company established a wholly-owned subsidiary, Inner Mongolia Cheng'an New Energy Co., Ltd., with a registered capital of 2 billion RMB[44]. - The company has engaged in significant related party transactions, with total transactions amounting to approximately 1.02 billion RMB during the reporting period[80]. Risk Factors and Challenges - The company is facing challenges due to global economic downturns and reduced consumer demand in the textile sector[22]. - The company faces operational risks due to macroeconomic fluctuations, with uncertainties in market recovery and potential declines in demand due to the ongoing global pandemic and geopolitical conflicts[47]. - Labor costs have been rising in the labor-intensive industry, compressing profit margins; the company is investing in automation to reduce production costs[47]. Environmental Compliance - The company has implemented an environmental self-monitoring plan, with all discharge outlets equipped with automatic online monitoring devices[63]. - The company has not faced any administrative penalties for environmental issues during the reporting period[64]. - The company adheres to national environmental protection laws and regulations, emphasizing sustainable development and pollution reduction[64]. Corporate Governance and Compliance - The board of directors and senior management guarantee the authenticity and completeness of the semi-annual report[6]. - The company received a warning letter from the China Securities Regulatory Commission on May 30, 2022, requiring rectification of identified issues[72]. - The company has committed to improving legal compliance awareness and enhancing information disclosure quality following the rectification plan[73]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 114,891[87]. - The largest shareholder, Jiangsu Sunshine Group Co., Ltd., held 226,311,454 shares, accounting for 12.69% of the total shares[89]. - The top ten shareholders collectively held 34.23% of the voting rights as of the end of the reporting period[90]. Research and Development - The company has established a national wool textile new materials engineering technology research center to enhance its R&D capabilities[30]. - Research and development expenses decreased to ¥5,008,326.29 from ¥6,673,077.44, showing a reduction of 24.93%[103]. Financial Instruments and Accounting Policies - The company recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value with changes recognized in other comprehensive income[161]. - Financial liabilities are classified at initial recognition as either measured at fair value with changes recognized in profit or loss or at amortized cost[152]. - The company applies the equity method for investments in joint ventures, recognizing its share of assets, liabilities, and expenses[147].