2022 Annual Financial Settlement Report
Ji Ai Technology Group Co., Ltd. (hereinafter referred to as "the Company") has audited its 2022 financial statements by Zhongshen Zhonghua Certified Public Accountants (Special General Partnership), which issued Audit Report No. 001670 (2023). Based on the specific circumstances of the Company's production and operations, the financial settlement situation is reported as follows:
1. Key Financial Indicators for 2022
| Indicator | 2022 | 2021 | Change (%) |
|---|---|---|---|
| Total Revenue | 51,494,620.44 | 72,591,310.17 | -29.06 |
| Operating Costs | 237,373,170.43 | 428,511,258.85 | -44.61 |
| Operating Profit | -910,090,456.29 | -868,681,962.62 | -4.77 |
| Total Profit | -947,788,168.89 | -1,019,415,325.12 | 7.03 |
| Net Profit Attributable to Shareholders | -1,040,107,525.50 | -1,023,747,188.74 | -1.60 |
| Net Profit Attributable to Shareholders (Excluding Non-Recurring Gains and Losses) | -613,227,158.40 | -878,177,930.41 | 30.17 |
| Net Cash Flow from Operating Activities | 63,358,591.15 | 40,330,446.58 | 57.10 |
2. Financial Condition
| Indicator | End of 2022 | End of 2021 | Change (%) |
|---|---|---|---|
| Total Assets | 1,325,868,829.64 | 4,336,314,720.21 | -69.42 |
| Total Liabilities | 3,151,970,972.99 | 5,121,350,516.27 | -38.45 |
| Equity Attributable to Parent Company | -1,830,025,884.72 | -795,881,990.06 | -129.94 |
| Total Share Capital | 886,123,765.00 | 886,123,765.00 | - |
During the reporting period, the Company was affected by the termination of agreements by project partners and the passive bankruptcy liquidation of subsidiaries, leading to delays in asset disposal and lower-than-expected project fund recovery. The Company prudently accrued project funding costs and various loan interests, confirmed investment losses and impairments, and accrued statutory compensation obligations and penalties, resulting in a comprehensive performance loss during the reporting period. Specific analyses are as follows:
- Due to the lack of significant improvement in cash flow during the disposal of acquisition and restructuring projects, the Company did not recognize the amortized income from these projects. However, the funding costs continued to accrue, leading to a total recognition of project funding costs and housing sales costs of ¥237 million during the reporting period.
- The Company continuously accrued interest on existing bank loans and private loans, recognizing foreign exchange gains and losses totaling ¥43.65 million during the reporting period.
- Assets in bankruptcy liquidation were taken over by the administrator, and the Company prudently recognized a total investment loss of ¥675 million due to loss of control over certain investments.
- The Company reversed previously accrued impairment provisions due to the termination of agreements by project partners, while prudently estimating the recoverable amounts of current project funding assets, resulting in a total reversal of impairment provisions of ¥169 million during the reporting period.
- The Company accrued penalties and late performance fees totaling ¥39.22 million based on court rulings and contractual agreements during the reporting period.
- The Company prudently predicted that future project revenues would not cover deductible losses, leading to a cautious reversal of previously recognized deferred income tax, resulting in a total income tax expense of ¥103 million during the reporting period.