ZJR(SZ:002021)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥512,835,165.43, a decrease of 0.41% compared to ¥514,955,270.46 in the same period last year[21]. - Net profit attributable to shareholders increased by 39.58% to ¥20,612,901.25 from ¥14,768,160.67 year-on-year[21]. - The net profit after deducting non-recurring gains and losses rose by 62.69% to ¥19,806,808.50 compared to ¥12,174,605.84 in the previous year[21]. - The basic earnings per share increased by 39.53% to ¥0.0300 from ¥0.0215 in the same period last year[21]. - The weighted average return on equity rose significantly by 14.48 percentage points to 16.80% from 2.32% year-on-year[21]. - The gross profit margin for the main business slightly increased due to the appreciation of the US dollar and a slight rise in sales prices[40]. - The company reported a total revenue of 2,526.38 million CNY for the first half of 2022, reflecting a significant increase compared to the previous period[113]. - The total comprehensive income for the first half of 2022 was CNY 20,216,252.59, an increase from CNY 14,495,022.09 in the first half of 2021[175]. - The total comprehensive income for the current period was 14.273 million, a decrease of 8.5% compared to the previous period[189]. - The total revenue for the current period is 14.768 million, reflecting a decrease of 0.6% compared to the previous period[190]. Assets and Liabilities - Total assets decreased by 5.72% to ¥1,381,955,112.78 from ¥1,465,874,829.10 at the end of the previous year[21]. - The company's total liabilities decreased to CNY 1,244,573,541.18 from CNY 1,349,142,125.27, representing a reduction of about 7.8%[168]. - Current assets totaled CNY 1,074,419,266.84, down from CNY 1,156,285,103.64, indicating a decrease of approximately 7.1%[166]. - The total liabilities amounted to CNY 549,340,842.07, slightly up from CNY 544,306,298.22 year-on-year[174]. - The total equity of the company decreased to CNY 80,430,148.81 from CNY 140,298,489.71 in the previous year, indicating a decline of 42.7%[174]. - The company's total equity increased to CNY 137,381,571.60 from CNY 116,732,703.83, representing an increase of approximately 17.7%[168]. Cash Flow - The net cash flow from operating activities showed a significant decline of 107.60%, dropping to -¥16,207,008.91 from ¥213,247,677.78 in the same period last year[21]. - Cash inflow from operating activities was 551,682,446.81 CNY, down 70.6% from 1,872,028,153.21 CNY in the first half of 2021[180]. - The ending balance of cash and cash equivalents was 134,224,052.45 CNY, down from 200,244,184.28 CNY at the end of the first half of 2021[181]. - The company reported a cash and cash equivalents net increase of 4,622,778.34 CNY, a significant drop from 107,409,880.24 CNY in the same period of 2021[181]. Investments and R&D - Research and development investment increased by 30.60% year-on-year, totaling CNY 13.77 million, primarily due to an increase in R&D personnel[44]. - The company has allocated 20 million yuan for research and development in new technologies for the upcoming fiscal year[186]. - The company is actively cultivating skilled talent, with a focus on enhancing its research and development capabilities[35]. - The company completed 29 patent applications during the reporting period, indicating a focus on innovation[42]. Market and Production Capacity - The company has an annual production capacity of approximately 800,000 industrial sewing machines, making it one of the largest production bases globally[30]. - The company’s products account for over 85% of the global output of sewing machines, positioning China as the largest manufacturing country in this sector[30]. - The company plans to expand its market presence and invest in new product development to drive future growth[186]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[189]. Risks and Challenges - The company faces significant risks including a 48.45% revenue dependency on export business, which is primarily settled in USD, exposing it to exchange rate fluctuations[79]. - The company has identified that direct material costs account for approximately 80% of its total costs, making it vulnerable to raw material price increases[80]. - The company is under investigation by the China Securities Regulatory Commission for alleged information disclosure violations, which could lead to significant penalties[80]. - The company is actively appealing a court ruling that could impose significant financial liabilities, which may affect its financial stability[83]. Corporate Governance and Compliance - The annual shareholders meeting had a participation rate of 29.94% and was held in June 2022[88]. - There were no changes in the board of directors, supervisors, or senior management during the reporting period[89]. - The company has not encountered any major changes in the investment direction of the raised funds, maintaining a focus on strategic growth initiatives[65]. - The company is actively cooperating with the China Securities Regulatory Commission regarding an ongoing investigation initiated on March 23, 2022[109]. Environmental and Social Responsibility - The company emphasizes employee welfare by ensuring timely payment of salaries and providing medical insurance and health check-ups[99]. - The company has established an emergency response plan for environmental incidents, which includes various specialized response teams[96]. - The company has installed an online monitoring system for pollution sources, which has passed inspection by environmental authorities[97]. - Zhongjie Technology has a wastewater treatment capacity of 50 tons per day, and the operation is reported to be normal[95].