ZJR(SZ:002021)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was ¥959,337,000.71, representing an increase of 82.54% compared to ¥525,535,334.50 in 2020[20]. - The net profit attributable to shareholders was -¥517,331,286.84 in 2021, a decline of 558.60% from -¥78,550,247.21 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥11,519,483.34, up 114.01% from -¥82,203,897.55 in 2020[20]. - The net cash flow from operating activities was ¥214,077,476.95, a significant increase of 688.45% from -¥36,379,808.00 in 2020[20]. - Total assets at the end of 2021 were ¥1,465,874,829.10, an increase of 70.08% from ¥861,860,219.59 at the end of 2020[20]. - The net assets attributable to shareholders decreased by 82.17% to ¥112,397,133.14 at the end of 2021 from ¥630,400,430.67 at the end of 2020[20]. - The company reported a basic earnings per share of -¥0.75 in 2021, a decline of 581.82% from -¥0.11 in 2020[20]. - The weighted average return on equity was -139.17% in 2021, down 126.75 percentage points from -11.73% in 2020[20]. - The company recognized a prepayment liability of approximately ¥537 million due to a court ruling related to a financial loan dispute[27]. - The company experienced significant fluctuations in cash flow due to increased use of bank acceptance bills for payments in the second and third quarters[28]. Shareholder Information - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into capital for the 2021 profit distribution proposal[5]. - The company’s major shareholder, Yuhuan Hengjie, holds 120 million shares, accounting for 17.45% of the total share capital[17]. - The company has no controlling shareholder or actual controller as of the latest board meeting[17]. Audit and Compliance - The company faced significant uncertainties related to going concern as noted in the audit report by Lixin Accounting Firm[5]. - The financial report for the year ended December 31, 2021, is confirmed to be true, accurate, and complete by the management team[5]. - The audit report includes a section emphasizing the significant uncertainties related to the company's future operations[5]. Market and Sales Performance - In 2021, the company's sales revenue increased by 81.85% year-on-year, reaching approximately CNY 959.34 million[46]. - The sewing machine business revenue accounted for CNY 952.77 million, representing an 82.20% increase compared to the previous year, driven by sustained demand in the downstream industry[52]. - Domestic market revenue reached CNY 561.24 million, a 130.51% increase year-on-year, while international market revenue was CNY 391.53 million, up 40.10%[56]. - The total sales volume of sewing machines reached 445,812 units, a 66.04% increase from 268,492 units in 2020, while production volume rose by 75.39% to 509,200 units[60]. Research and Development - The company has developed over 200 types of industrial sewing machines across 14 major series, showcasing its strong R&D capabilities[38]. - As of December 2021, the company holds 408 valid patents, including 31 invention patents, indicating a robust innovation pipeline[40]. - The company completed the development of 30 new products in 2021, including various sewing machines, and filed 60 patent applications, with 7 being invention patents[47]. - The company's R&D investment increased by 56.14% in 2021, totaling CNY 25,093,171.90, compared to CNY 16,070,947.57 in 2020[75]. - The number of R&D personnel rose to 143, a 38.83% increase from 103 in 2020, with R&D personnel now accounting for 11.63% of the total workforce[75]. Production and Capacity - The company has an annual production capacity of 800,000 industrial sewing machines, ranking among the top in China's sewing machinery industry[36]. - The company has invested 130 million RMB in advanced flexible manufacturing lines, positioning itself as a leader in production technology within the industry[41]. - The company has completed the construction of a new assembly plant, further strengthening its production capabilities[44]. Environmental Compliance - The company’s subsidiary, Zhongjie Technology, is listed as a key pollutant discharge unit by the Taizhou Ecological Environment Bureau for the year 2021[193]. - Zhongjie Technology has a wastewater treatment capacity of 50 tons per day, with normal operational status reported for both wastewater and exhaust treatment facilities[194]. - The company obtained a pollution discharge permit from the Taizhou Ecological Environment Bureau, valid from June 3, 2020, to June 2, 2023[195]. - The company established an emergency response plan for environmental incidents, including a command center and various specialized teams[196]. - The company installed an online monitoring system for environmental compliance, which has passed inspection by environmental authorities[197]. Governance and Management - The company has established a comprehensive and effective internal control system, ensuring that all business operations are conducted in accordance with established guidelines, which helps mitigate operational risks[184]. - The company’s governance structure includes independent directors who contribute to oversight and decision-making processes[167]. - The financial department is independent, maintaining a separate accounting system and making independent financial decisions[147]. - The company emphasizes compliance with legal regulations and has taken steps to enhance the understanding of these regulations among its management[163]. Strategic Initiatives - The company is actively pursuing technological upgrades and modern enterprise governance to enhance operational efficiency[44]. - The company plans to achieve a revenue target of RMB 1 billion in 2022, focusing on quality improvement, innovation, and cost reduction[128]. - The company aims to enhance its R&D capabilities and focus on providing high-value smart sewing solutions to maintain competitive advantages[128]. - The company plans to dynamically adjust sales prices in response to raw material price increases while maintaining stable gross margins[136].