JSSS(SH:600220)2023-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥772,022,371.67, a decrease of 13.65% compared to ¥894,098,508.68 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2023 was ¥8,799,287.26, down 82.62% from ¥50,618,415.10 in the previous year[20]. - Basic earnings per share for the first half of 2023 were ¥0.0049, down 82.75% from ¥0.0284 in the same period last year[22]. - The company reported a decrease of 29.11% in net profit after deducting non-recurring gains and losses, amounting to ¥29,052,962.70 compared to ¥40,982,960.98 in the previous year[20]. - Operating profit was 27 million RMB, down 44.88% compared to the previous year[35]. - The textile business generated main operating revenue of 628 million RMB, a decrease of 15.58% from the same period last year[35]. - The gross margin for the textile business was 24.71%, down 4.52 percentage points year-on-year[35]. - Domestic sales revenue was 429 million RMB, a decrease of 10.65% year-on-year, while foreign sales revenue was 199 million RMB, down 24.56%[35]. - The company reported a significant increase in credit impairment losses of CNY 24,667,500.78 compared to a loss of CNY 15,721,909.75 in the first half of 2022[107]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥435,945,413.18, compared to a negative cash flow of ¥255,388,354.97 in the same period last year, representing a 270.70% increase[20]. - Total assets at the end of the reporting period were ¥4,409,140,421.83, a decrease of 7.06% from ¥4,744,198,827.28 at the end of the previous year[21]. - Cash and cash equivalents decreased to CNY 144,697,131.00 from CNY 183,626,712.51, representing a decline of 21.23%[98]. - Accounts receivable decreased by 18.83% to CNY 898,918,037.10 from CNY 1,107,449,756.55[98]. - Inventory decreased to CNY 925,781,267.00, down 8.86% from CNY 1,015,650,605.71[98]. - The total cash inflow from operating activities was CNY 1,119,367,124.89, an increase of 49.2% from CNY 749,526,845.23 in the first half of 2022[111]. Investments and Subsidiaries - The company has invested in three thermal power companies, with a focus on electricity and steam production, although the thermal power business has seen a decline in revenue and profitability due to high coal prices[31]. - The company has decided to shut down its thermal power generation operations at its main facility, while its subsidiaries continue to operate in their respective thermal power businesses[31]. - The company established a wholly-owned subsidiary, Inner Mongolia Cheng'an New Energy Co., Ltd., with a registered capital of 2 billion RMB[45]. - The company acquired 75% of the equity of subsidiaries Xinqiao Thermal Power and Yangguang Post-processing, making them wholly-owned subsidiaries[45]. - The company plans to develop a polysilicon business in Shizuishan, Ningxia, although no significant progress has been reported as of the disclosure date[36]. Research and Development - Research and development expenses increased by 2.67% to 5.14 million RMB[38]. - The company reported an increase in research and development expenses to CNY 5,142,244.97 in the first half of 2023, up from CNY 5,008,326.29 in the same period of 2022[110]. - The company aims to improve operational efficiency and reduce costs in response to the declining revenue trend[108]. Environmental Compliance - The company reported no environmental pollution incidents during the reporting period, maintaining compliance with pollution discharge standards[62]. - The company has established wastewater treatment facilities to pre-treat wastewater before it is sent to centralized treatment plants, ensuring compliance with environmental standards[64]. - New Bridge Thermal Power has implemented various air pollution control technologies, including bag filters and desulfurization towers, with the third circulating fluidized bed boiler officially operational since December 22, 2022[64]. - The company has obtained pollution discharge permits from local environmental protection agencies, ensuring legal compliance for its operations[66]. Shareholder and Management Changes - The company has experienced significant management changes, including the election of a new chairman and general manager[57]. - The company has held multiple shareholder meetings in 2023, approving various financial and operational proposals[55][56]. - The concerted actions agreement was terminated and a new agreement was signed on May 15, 2023, to stabilize the company's control[138]. Legal and Regulatory Matters - There are no significant lawsuits or arbitration matters reported during the period[74]. - The company has taken measures to address a legal dispute involving its subsidiary, ensuring that the matter is being handled appropriately[75]. - The company received a total of RMB 25,993,300.00 in returned guarantee deposits and litigation fees from the Shanghai Second Intermediate People's Court on January 18, 2023[76]. Market and Industry Trends - The textile manufacturing industry is experiencing a shift from "capacity expansion" to "value growth," with a focus on technological upgrades and brand development, although the market demand remains complex and challenging[26]. - The company operates under an order-based production model, primarily using imported Australian wool to produce high-quality woolen fabrics for both domestic and international markets[26]. - The company is recognized as a leading enterprise in the domestic wool spinning industry, consistently ranking among the top 10 in competitiveness within the Chinese wool spinning and knitting sector[30]. Financial Reporting and Accounting Policies - The financial statements are prepared based on the assumption of going concern, indicating the company has the ability to continue operations for at least 12 months from the reporting date[143]. - The company's accounting policies comply with enterprise accounting standards, ensuring accurate reflection of financial status and performance[144]. - The company confirmed that it will recognize the fair value of identifiable assets and liabilities of newly acquired subsidiaries from the purchase date in the consolidated financial statements[150].