Chaojie fastening system (Shanghai) Co., Ltd
Financial statement report of 2021
The 2021 financial statements of Chaojie fastening system (Shanghai) Co., Ltd. (hereinafter referred to as ” Essence Fastening Systems (Shanghai) Co.Ltd(301005) ” or “the company”) have been audited by Tianjian Certified Public Accountants (special general partnership) and issued the audit report of Tianjian audit (2022) No. 1828. The audit opinion of the accountant is: we have audited the financial statements of Chaojie fastening system (Shanghai) Co., Ltd. (hereinafter referred to as Essence Fastening Systems (Shanghai) Co.Ltd(301005) company), including the consolidated and parent company’s balance sheet as of December 31, 2021, the consolidated and parent company’s income statement, consolidated and parent company’s cash flow statement, consolidated and parent company’s statement of changes in owner’s equity and notes to relevant financial statements in 2021. In our opinion, the attached financial statements are prepared in accordance with the provisions of the accounting standards for business enterprises in all material aspects and fairly reflect the consolidated and parent company’s financial position of Essence Fastening Systems (Shanghai) Co.Ltd(301005) company as of December 31, 2021, as well as the consolidated and parent company’s operating results and cash flow in 2021. The company’s financial statements for 2021 are reported as follows: overall operation:
In 2021, the company realized an operating revenue of 39397078056 yuan, a year-on-year increase of 14.31%; The total profit was 8626128955 yuan, a year-on-year decrease of 7.96%; The net profit attributable to the common shareholders of the company was 7586417584 yuan, a year-on-year decrease of 6.66%.
Main financial data and financial indicators:
Unit: RMB
Increase and decrease of the project in the same period of last year in the reporting period
Operating income 3939707805634465490398 14.31%
Total profit 86261289559371723906 – 7.96%
Net profit 75864175848127461469 -6.66%
Net profit attributable to ordinary shareholders of the company 75864175848127461469 – 6.66% profit
Amount of non recurring profit and loss 516709625310800736 66.25%
Net profit attributable to ordinary shareholders of the company after deducting 70697079597816660733 – 9.56% of non recurring profits and losses
Net cash flow from operating activities 72339476247106563697 1.79%
Increase or decrease at the end of the reporting period
Total assets 8803067197439465342852 123.06%
Net assets attributable to ordinary shareholders of the company: 7739697566226935948639 187.34%
Net assets per share 13.55 6.29 115.42%
Assets and liabilities, operating results and cash flow:
(I) composition and changes of main assets:
Unit: RMB
Increase or decrease at the end of the project reporting period
Monetary capital 44491638143487594958 27.57%
Trading financial assets 345230181724000 China High-Speed Railway Technology Co.Ltd(000008) 53075%
Accounts receivable 1029517084110553761644 – 2.45%
Receivables financing 1067739319957470455 11.52%
Prepayment 186818092389604809 – 52.05%
Other receivables 62596558442639921136803%
Inventory 113807657088452985887 34.64%
Other current assets 1212546081421416425 187.73%
Fixed assets 55020596655043207324 9.10%
Construction in progress 130852044244758658115 174.98%
Intangible assets 31438355883265087200 – 3.71%
Deferred income tax assets 199614001248429585 – 19.65%
Other non current assets 1278792126167493580 663.49%
Right of use assets 402131997 – 100.00%
Description of major changes:
1. Trading financial assets: the ending balance increased by 853075%, mainly due to the company’s use of idle funds to purchase financial products in the current period;
2. Prepayment: the ending balance decreased by 52.05%, mainly due to the company’s issuance expenses offsetting the capital reserve;
3. Other receivables: the ending balance increased by 136803%, mainly due to the company’s intention to pay the land reserve center of Zhenjiang Economic and Technological Development Zone in this period;
4. Inventory: the ending balance increased by 34.64%, which was mainly due to the increase of operating revenue and stock in the current period, and the increase of inventory cost caused by the rise of material price;
5. Other current assets: the ending balance increased by 187.73%, mainly due to the input tax to be deducted from the engineering equipment payment of Wuxi Chaojie raised investment project in this period;
7. Construction in progress: the ending balance increased by 174.98%, mainly due to the continuous increase of investment in the project under construction invested by Wuxi Chaojie in this period;
8. Other non current assets: the balance at the end of the period increased by 663.49%, mainly due to the prepayment of more engineering equipment by Wuxi Chaojie in the current period;
9. Right to use assets: the ending balance increased by 100%, mainly due to the adoption of new lease standards in the current period.
(II) composition and changes of main liabilities:
Unit: RMB
Increase or decrease at the end of the project reporting period
Short term loan 5005742 Xiamen Jihong Technology Co.Ltd(002803) 420450 – 82.14%
Accounts payable 80498338488041108137 0.11%
Contract liabilities 76916176136821189 – 43.78%
Payroll payable 1069008431880931708 21.35%
Tax payable 469355944642615006 – 26.96%
Other payables 5149674210843080 374.93%
Non current liabilities due within one year 650422974478826135222%
Other current liabilities 320106981175817262242%
Lease liabilities 319457976 – 100%
Description of major changes:
1. Short term borrowings: the ending balance decreased by 82.14%, mainly due to the repayment of bank borrowings in the current period; 2. Contract liabilities: the change of ending balance decreased by 43.78%, mainly due to the decrease of advance payment in the current period; 3. Other payables: the ending balance increased by 374.93%, mainly due to the provision of customer after-sales service fee in the current period;
4. Non current liabilities due within one year: the ending balance increased by 135222%, mainly due to the adoption of new lease standards in the current period and the reclassification of the present value of lease liabilities due within one year;
4. Other current liabilities: the ending balance increased by 262242%, mainly due to the provision of customer rebate in the current period; 5. Lease liabilities: the ending balance increased by 100%, mainly due to the adoption of new lease standards in the current period;
(III) composition and changes of owner’s equity:
Unit: RMB
Increase or decrease at the end of the project reporting period
Share capital 5712690 Lizhong Sitong Light Alloys Group Co.Ltd(300428) 4517700 33.33%
Capital reserve 531758546049158707130 480.60%
Surplus reserve 27068568351979482722 36.75%
Undistributed profit 1580157392311513241087 37.25%
Description of major changes:
1. Share capital: the ending balance increased by 33.33%, mainly due to the company’s initial public offering of shares in the current period; 2. Capital reserve: the ending balance increased by 480.60%, mainly due to the increase of capital reserve at the premium of initial public offering of the company in the current period;
3. Surplus reserve: the ending balance increased by 36.75%, mainly due to the withdrawal of legal surplus reserve in the current period; 4. Undistributed profit: the ending balance increased by 37.25%, mainly due to the increase of net profit in the current period.
(IV) analysis of main business conditions
