Zisun Annual Report of 2021
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Zisun Annual Report of 2021
This is an English translation version of the Annual Report 2021 of
Chongqing Zaisheng Technology Co., Ltd（《重庆再升科技股份有限公司 2021 年
年度报告》）which is disclosed on www.sse.com.cn, the official website of Shanghai
Stock Exchange.
If there is any inconsistency between the contents of this version and the
Chinese version, the Chinese version shall prevail.
All financial data in this report on PRC accounting standards.
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CONTET
Chapter 1 Interpretation ............................................................................................. 4
Chapter 2 Company Profile and Key Financial Indicators ..................................... 6
Chapter 3 Management Discussion and Analysis ................................................... 14
Chapter 4 Company Governance ........................................................................... 138
Chapter 5 Environmental and Social Responsibility ............................................ 159
Chapter 6 Important Matters ................................................................................. 163
Chapter 7 Changes in Shares and Shareholders ................................................... 171
Chapter 9 financial report....................................................................................... 182
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Zisun Annual Report of 2021
Chapter 1 Interpretation
In this report, unless the context otherwise requires, the terms are translated
as follows:
Zisun: Chongqing Zaisheng Technology Co.，Ltd
Current period, Reporting Period: the Year of 2021
Last Term, The Previous Year, Last Year: the year of 2020
2021 Convertible Bonds: A Share Convertible Bonds of Zisun Planed In 2021
Clean Air Products: Micro Glass Fiber Filter Media, Composite Micro Glass Fiber
Filter Media, Glass Fiber Filter Bag, Clean Air Equipment, Melt-Blown Filter
Material, PTFE Membrane, etc.
High Efficiency and Energy Saving Products: Vacuum Insulation Panel Core
Material, Inorganic Fiber Sprayed Glass Fiber, Absorbed Glass Mat Separator,
Ultra-Fine Micro Glass Fiber, Sound Insulation Mat, High Silica Fiber and Other
Products
VIP Core Material: Vacuum Insulation Panel Core Material
AGM Separator: Absorbed Glass Mat Separator
Melt-Blown Filter Material: Melt-Blown Chemical Fiber Filter Material
PTFE: Polytetrafluoro ethylene
TROX: TROX TECHNIK GmbH.
HVAC: Heating, Ventilation and Air Condition
MP Company: Microporous LLC
EUCEB: European Certification Board for Mineral fiber Products
Fraunhofer: Fraunhofer-Gesellschaft
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RoHS: Restriction of Hazardous Substances
REACH: Registration，Evaluation and Authorization of Chemicals
MPPS: Most Penetrating Particle Size
Articles of Association: The Articles of Association of Chongqing Zaisheng
Technology Co., Ltd
SSE: Shanghai Stock Exchange
Yuan: RMB in Chinese Yuan
N/A: Not applicable
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Chapter 2 Company Profile and Key Financial Indicators
Ⅰ. Company Information
Company Name in Chinese：重庆再升科技股份有限公司
Company Name：CHONGQING ZAISHENG TECHNOLOGY CO., LTD
Abbreviation of company name：ZAISHENG TECHNOLOGY
Legal representative of the company：Mr. GUO Mao
Ⅱ. Contact and Contact Information
Board Secretary Securities Affairs Representative
Name Ms. XIE Jia Ms. LIU Jiapei
Add. No. 1, Chanyi Road, Huixing Street, Yubei District, Chongqing
Phone 86-023-88651610
Fax 86-023-88202892
E-mail Add zskjzqb@cqzskj.com
Ⅲ. Basic Introduction
Registered Address No. 1, Chanyi Rd., Huixing St., Yubei Dist., Chongqing
Historical Changes of In Jan. 2020, it changes from No.197, Lianggang Ave.
Registered Address Yuebei Dist., Chongqing (IPO Add.) to the present one.
Official Address No. 1, Chanyi Rd., Huixing St., Yubei Dist., Chongqing
Postal Code 401120
Website www.cqzskj.com
E-mail mail@cqzskj.com
Ⅳ. Information Disclosure and Storage Location
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The name and website of the media where the company discloses its annual report:
Shanghai Securities News (www.cnstock.com)
China Securities News (www.cs.com.cn)
Securities Times (www.stcn.com)
Securities Daily- (www.zqrb.cn)
The website of the stock exchange where the company discloses its annual report:
Shanghai Stock Exchange, www.sse.com.cn
Location of company annual report: No. 1, Chanyi Rd., Huixing St., Yubei Dist.,
Chongqing
V. Stock Profile
Stock Type Stock Exchange Stock Abbreviation Stock Code
A Share Shanghai Stock Exchange ZAISHENG TECHNOLOGY 603601
Ⅵ. Other Relevant Information
(1) Accounting firm hired by the company (domestic):
Name: Baker Tilly China Certified Public Accountants (Baker Tilly China)
Office Add.: Areas A-1 and A-5, Building 68, No. 19, Chegongzhuang West
Rd., Haidian Dist., Beijing
Signing Accountant: Mr. SHEN Jun, Mr. HUANG Luyao
(2) Sponsor of Performance continuous supervision duties during the reporting
period：
Name: Huafu Securities Co., Ltd.
Office Add.: Floor 3rd, 4th and 5th, Building 1#, No. 27, Guping Rd., Gulou
Dist., Fuzhou City, Fujian Province
Sponsor representative name: Mr. CHEN Canxiong, Mr. Dai Kunzu
Period of continuous supervision: From 2020-5-9 to 2022-12-31
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Ⅶ. Major Accounting Data and Financial Indicators in The Past Three Years
1. Key Financial Data
Unit: Yuan Currency: CNY
Major Accounting Data 2021 2020 YOY (%) 2019
Operating revenue 1,884,228,703.44 1,252,193,566.26
Net profit attributable to the shareholders of the listed
359,677,001.99 170,937,571.47
company
Net profit attributable to the shareholders of the listed
company after deducting the non-recurring profits and 339,549,989.10 164,258,861.60
losses
Net cash flows from operating activities 291,270,329.26 344,513,801.22
At the end of 2021 At the end of2020 YOY (%) At the end of 2019
Net assets attributable to the shareholders of the listed
1,821,254,074.67 1,424,872,604.20
company
Total assets 2,742,389,115.64 2,448,260,581.66
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2. Key Financial Indicators
Unit: Yuan Currency: CNY
Major Financial Indexes 2021 2020 YOY 2019
Basic earnings per share 0.3461 0.5037 -31.29% 0.2432
Diluted earnings per share 0.3438 0.4971 -30.84% 0.2384
Basic earnings per share after deducting
0.3130 0.4755 -34.17% 0.2337
nonrecurring profits and losses
Weighted average ROE (%) 13.08 21.59 -8.51 PP 12.48
Weighted average ROE after deducting non-
recurring 11.83 20.38 -8.55 PP 11.99
profits and losses (%)
Explanation of the company's main accounting data and financial indicators for the first
three years at the end of the reporting period:
During the reporting period, Zisun operating income decreased by 14.04% over
the same period last year. The reason is that the epidemic caused a sharp increase in the
revenue in 2020 from masks and melt-blown material. After removing the impact factor
of epidemic related materials, our revenue from other products in 2021 hit an increase
of 0.92% over last year.
In2021, the net profit attributable to shareholders of the listed company decreased
by 30.64% compared with the same period of last year, and the net profit after deducting
non-recurring gains and losses decreased by 33.55%. The reason also is epidemic
related materials which has high sales revenue and gross profit in 2020 and drop
significantly in 2021.
Ⅷ. Differences in Accounting Data Under Domestic and Foreign Accounting
Standards
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1. Differences in Net Profit and Net Assets Attributable to Shareholders of Listed
Companies in The Financial Report Disclosed in Accordance with Both The
International Accounting Standards And The Chinese Accounting Standards
N/A
2. Differences Between Net Profit and Net Assets Attributable to Shareholders of
Listed Companies in Financial Reports Disclosed in Accordance with Foreign
Accounting Standards And Those Disclosed In Accordance With Chinese Accounting
Standards
N/A
3. Explanation of Differences Between PRC and Foreign Accounting Standards
N/A
Ⅸ. Key Financial Data by Quarter in 2021
Items Q1 Q2 Q3 Q4
Operating revenue 452,243,825.57 336,758,146.18 367,167,688.29 463,541,182.62
Net profit attributable to the
shareholders of the listed 80,444,838.44 59,588,415.44 47,122,840.90 62,315,257.25
company
Net profit after deducting non-
recurring gains and losses
76,469,217.74 53,702,649.19 38,014,028.42 57,432,298.52
attributable to shareholders of
listed companies
Net cash flows from operating
25,316,476.29 59,462,581.51 -13,185,127.86 77,178,749.03
activities
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Ⅹ. Non-Recurring Profit and Loss Items and Amount
Unit: Yuan Currency: CNY
Amount in Note Amount in Amount in
Non-recurring profit and loss items
2021 (If applicable) 2020 2019
Profit or loss from disposal of non-current assets -127,483.11 747,450.43 -98,022.36
Unauthorized approval, or no formal approval documents, or occasional tax refunds or
exemptions
Government subsidies included in current profits and losses except for government subsidies
closely related to the Company business, in line with national policies and obtained by quota 28,433,861.58 21,563,520.37 13,930,181.59
or quantity at unified state standards
Capital occupation fees charged to non-financial enterprises included in current profit and
loss
The investment cost of acquiring subsidiaries, associates and joint ventures is less than the
income generated by the fair value of the identifiable net assets of the investee when the
company acquires the investment
Profit and losses on non-monetary assets exchange
Profit and losses on entrusting others to invest or manage assets
Various asset impairment provisions accrued due to force majeure factors such as natural
disasters Debt restructuring gains and losses
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Debt Restructuring Profit and Losses
Enterprise restructuring costs, such as employee placement costs, integration costs, etc.
Profits and losses that exceed fair value from transactions where the transaction price is
obviously unfair
Net profit and loss for the current period from the beginning of the period to the date of
merger of subsidiaries arising from business combination under the same control
Profits and losses arising from contingent events unrelated to the normal operation of the
company
Profit or loss on changes in fair values of held-for-trading financial assets, derivative
financial assets, held-for-trading financial liabilities and derivative financial liabilities, and
investment income obtained from disposal of held-for-trading financial assets, derivative
-36,984.00 1,541,374.19 -4,257,111.97
financial assets, held-for-trading financial liabilities, derivative financial liabilities and other
credit investment, except for effective hedging operations associated with the company’s
normal operation
Reversal of provision for impairment of receivables subject to separate impairment test
Profits and losses from external entrusted loans
Gains and losses arising from changes in the fair value of investment properties that are
subsequently measured using the fair value model
The impact of a one-time adjustment on current profit and loss according to the requirements
of tax, accounting and other laws and regulations on current profit and loss
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Custody fee income from entrusted operations
Other non-operating revenue and expenses except for the abovementioned items 70,582.63 265,234.04 -1,667,616.05
Other profit and loss items that meet the definition of non-recurring profit and loss
Minus Income tax impact 4,244,470.37 3,755,402.28 1,234,469.26
Affected amount of minority equity（after-tax） 242,348.57 235,163.86 -5,747.92
Total 23,853,158.16 20,127,012.89 6,678,709.87
Ⅺ. Items Measured at Fair Value
Unit: Yuan Currency: CNY
Amount Of Impact on Current
Items Dec.31, 2020 Dec. 31, 2021 Current Period Change
Profit
Transaction Monetary Assets 20,428,616.00 2,391,632.00 -18,036,984.00 -36,984.00
Accounts Receivable Financing 94,794,793.11 82,675,886.76 -12,118,906.35
Accounts Receivable Financing 600,000.00 4,350,000.00 3,750,000.00
Total 115,823,409.11 89,417,518.76 -26,405,890.35 -36,984.00
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Chapter 3 Management Discussion and Analysis
I. Discussion and Analysis of Operating Conditions
(1) Company Profile
With the mission of “Clean Air” and the vision of “Working Hard for Energy
Saving and Cleanliness, Striving for The Happiness of Future Generations”. Zisun will
continue to uphold the goal orientation of start with purpose and devote all energy to
the work related to “Clean Air” without any distractions, carry out innovative R&D and
application around the beforehand, processing, and afterwards phrase of clean air, and
strive to achieve the long-term strategic goal of “Be the Global Leader In Clean Air
Industry”.
Zisun, with stable growth, is a future-oriented platform company driven by team
building and innovation. Zisun adheres to the organizational structure of “Life, Inter-
growth, Zisun”, aiming to realize platform-based transformation, with the cultural
platform of “Conscience, Self-drive, Platform Sharing, Mutual Growing and Win-win”.
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Focusing on the future, Zisun actively explores and utilizes the digital technology of
the times. Zisun continuously optimizes and iterates existing production methods and
product quality, improves production efficiency, and solves problems such as
overproduction, disorderly competition, and low-level repetitive construction in the
industry. At the same time, Zisun shares information, resources, and technology with
its peers and users to give full play to its symbiotic advantages.
Zisun focus on the research of new materials such as super-fine fibers, membrane,
adsorption materials, micro electrostatic materials, oil and gas separation materials, and
sound and heat insulation materials. Based on the owned technology of materials and
our National Enterprise Technology Center, Zisun deeply excavates the advantageous
properties of materials. Zisun gives full play to the technical advantages, material
advantages, testing advantages, R&D advantages and design advantages that have been
cultivated for many years in the fields of “Clean Air” And “High Efficiency and Energy
Saving”. Zisun implements a strong integration and cross-border strategy, continuously
expands the application field and has served the area of industry and civil, medical,
electronics, agriculture and animal husbandry, indoor public space, military industry,
aerospace and other fields.
Zisun focuses on innovative R&D and application exploration around the whole
process of the beforehand, processing, and afterwards phrase of “Clean Air”, and
implements a strong industrial interconnection strategy to provide professional
materials and products for the “Clean Air” And “High Efficiency and Energy Saving”
fields. Zisun holds a strong scientific research system, a large-scale production base,
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and sufficient capital sources, and is committed to building a leading company in the
clean air industry.
We think Clean Air has beforehand, processing, and afterwards phrase.
Afterwards phrase is to put a “Mask” on the protected object which not only is
human being, animals and plants but also people’s living and working space, and the
human body itself.
Processing phrase is to cover the pollutant with a “mask”, which means that the
pollutants generated in the process shall be removed as far as possible to prevent
pollutants from being discharged into the atmosphere.
Beforehand phrase is to make pollutants as little as possible, which means that to
use clean energy and energy-saving materials as much as possible, and adopt a clean
way of life and production, and adopt a clean way of life and production, and save
energy and electricity as much as possible. Beforehand phrase is also regards as energy
saving portfolio of Zisun. Finally, to eliminate the “Mask” and give a world of blue sky
and white clouds to future generations.
(2) Introduction to Zisun Technical Barriers
Zisun has been deeply involved in the research and development, production and
application of micro glass fiber for tens of years and had built extremely high technical
barriers. Micro glass fiber is the core raw material of glass fiber filter media, vacuum
insulation panel core material, insulation mat and AGM separator etc...
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Mainly made of minerals such as quartz sand, through the physical action of high-
speed airflow, micro glass fiber is super fine, short, flocculent, soft and cotton-like. It
presents low density, good insulation, heat resistance, corrosion resistance. These ultra-
small diameter micro glass fibers are intertwined with each other so that they form
numerous tiny gaps. Then this structure has good special effects on filtering, adsorbing,
restricting movement of small particles and molecules, etc.
Micro glass fiber is a new inorganic non-metallic material with strong
professionalism and high entry barriers. Pushed by the various national policy
promotion and industry technology iterative update, the productivity and numbers of
small producer declines year by year whereas large-scale ones gradually become bigger
and stronger.
The diameter of Zisun micro glass fiber could reach 0.1-3.5μm. Zisun holds the
industry-leading, production scale with a variety of patents of formula, equipment and
production process. The R&D and production of micro glass fiber has high industry
barriers, mainly including technical barriers, process barriers, brand barriers and scale
barriers.
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Zisun Micro Glass Fiber Industry Barriers
The ultrafineness of the fiber diameter has a direct impact on its
filtration, thermal insulation and other characteristics. The
production of stable ultra-fine nmicro glass fiber requires
Technical continuous R&D investment, superb production technology,
Barriers professional formula ratio and years of technical accumulation.
Our products have passed EUCEB and German Fraunhofer
certification, which are safe, harmless and environmentally
friendly.
Through self-designed production equipment, complex process
technology, systematic control process, unique ingredient formula,
and complex processes such as multiple accurate tests, Zisun can
Craft
produce micro-glass fiber wool with uniform microporous
Barriers
structure and stable chemical properties. In order to achieve ultra-
fineness and at the same time achieve mass production control,
the requirements for process technology are really high.
Excellent product performance and consistency are critical to
customer selection.
Brand The standards of customers are strict, and the introduction period
Barriers is generally long. Once selected, it will form a strong customer
stickiness, and will be more trustworthy to companies with brand
and technology accumulation in the industry.
Zisun has the large-scale production capacity from microfiber
glass wool to downstream products, and continuously improves
the automation and intelligence in production and operation
activities, continuously optimizes resource allocation, consolidates
Scale
the industrial chain, and taps economic benefits. ,
Barriers
Our industrialization, large-scale, intelligent production and
continuous process improvement continue to improve energy
utilization efficiency and continuously strengthen the ability to
continuously reduce costs.
The stable production of micro glass fiber requires continuous R&D investment,
superb production technology, professional formula ratio and years of technical
accumulation.
On a global scale, Zisun owns the ability to independently design manufacture
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equipment, unique ingredient formula patents, and the ability to control complex and
precise systems.
Micro Glass Fiber VS normal Glass Fiber
Micro Glass Fiber Micro Glass Fiber
Raw Quartz sand and other mineral Quartz sand and other mineral raw
Materials raw materials materials
Production Forming with high-speed Pool kiln drawing method, crucible
Process airflow and physical action method, etc.
More than ten microns to tens of
Physical Size 0.1um to 5um5
microns
Continuous, fixed-length, multiple
Appearance White, soft, flocculent
fiber bundles
Special properties such as
Insulation, heat resistance, corrosion
Performance filtration, adsorption,
resistance, high mechanical strength
restriction of movement, etc.
Made of glass fiber cloth/felt by
woven/non-woven process, Or to
As the core raw material of make composite materials by
glass fiber filter media, VIP composite reinforced resin, cement
Common Use
core material and battery and other materials,used for
separator etc. building waterproof and thermal
insulation, auto parts, wind power
blades, electronic cloth, etc.
(3) Introduction to Zisun Products by Application Fields
1. Main Products in Clean Air
Zisun holds multiple core filter materials and filter technologies including high
performance glass fiber filter media, low-resistance melt-blown filter, high-efficiency
PTFE membranes, micro electrostatic filter media, nano-filter materials (under
development) and chemical filter materials and other filter materials and equipment.
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Taking different regions, different scenarios, different industry characteristics into
consideration, Zisun provides customized products for users. There is a fully
consideration of temperature, humidity, space, region, environment, function and other
factors on air quality. The goal is to satisfy user’s pursuit of dust-free, sterile, and
healthy environment and solve the current problems of high energy consumption,
difficult maintenance, hardness of maintenance and loud noise.
As one of the few worldwide with the supply capacity of high-performance glass
fiber media, low-resistance melt-blown filter media, high-efficiency PTFE membranes,
micro electrostatic filter and chemical filter materials, our “Clean Air” materials cover
international standard filtration efficiency (such as EN779, EN1822 and
ASHRAE/HEPA/ULPA) with the MPPS efficiency of 99.999999% and above.
* The filtration efficiency of air filter material varies with dust particle size. At a
certain particle size point, the efficiency is the lowest, that is, the penetration rate is the
largest, which is called the most easily penetrable particle size (MPPS). MPPS varies
with filter material and air speed. For HEPA and ULPA air filter materials, MPPS is
generally between 0.1-0.25μm.
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Name Advantage Usage
made of ultra-fine glass fiber, fiber
distribution is uniform, high filtration Used in high-end manufacturing
Micro precision, large dust holding such as semiconductor, medicine,
Glassfiber capacity, good physical strength, biology, also in areas that require
Filter Media good machinability, heat resistance, the Solution of fine particles of
flame retardant, covering 0.3um and below
ASHRAE/HEPA/ULPA grades
made of polypropylene, the fiber
diameter of 1-5um, with a unique
capillary structure, electrostatic Used in air purifiers, fresh air
Melt-blown
electreted, the filtration efficiency of systems, personal protection and
Filter Media
HEPA level, with excellent other fields
performance of both of filtration
and physical strength
Used in fields with high filtration
Made of nano-fineness PTFE fiber, efficiency and low system
High- very high porosity, resistance requirements, such as
CLEAN AIR efficiency combination of ultra-low resistance electronics, semiconductors, etc.,
PTFE and ultra-high efficiency, and also in fields with waterproof
Membrance Waterproof and breathable, long life, and impact resistance
chemically stable requirements, such as vacuum
cleaners, etc.
Used in indoor air treatment,
dealing with polluting particles,
Micro
High capture efficiency, zero efficiently removing air VOCs,
Electrostatic
consumables, reusable cleaning, long quickly and effectively killing
Filter
life, low wind resistance, low noise, pathogenic microorganisms in the
Material
and more energy saving air, eliminating peculiar smell in the
air, and improving air freshness
Fiber diameter of 0.3-0.5um, could
Used in automobile cabin, engine
be used in combination with wood
intake, gas turbine and high-end
Nanofiber pulp fiber, synthetic fiber and other
manufacturing where there is a
Filter Media materials, with good durability,
need for particulate matter
physical strength, temperature
management
resistance and dust holding capacity
High-performance glass fiber filter media, low-resistance melt-blown filter
material, and high-efficiency PTFE membrane are produced by each patented
technology. Based on the connection and combination of superfine fibers of different
diameters, those air filter materials, which can be observed with distinct morphologies
under SEM, hold different filtration properties
During the production process, Zisun needs to control the raw material technology
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and stabilize large-scale production at the nanoscale. The comprehensive technology is
extremely high.
1.1 Glass Fiber Filter Paper
Fine micro glass fiber is the main raw material of glass fiber filter media which is
produce by Wet-laid process. Usually, the thickness of this glass fiber filter media is
0.3mm. Compared with other filter materials made of animal and plant fibers, synthetic
fibers and activated carbon, it has the characteristics of large dust holding capacity, high
filtration efficiency and uniform fiber distribution. As an ideal clean air filter material,
it is a core component of clean air equipment. Glass fiber filter media is widely used in
advanced manufacturing, biomedicine, animal husbandry and other fields that require
high air cleanliness.
(Fig of Glass Fiber Filter Media Product)
(High-performance glass fiber filter media，Zoom in 488 times)
1.2 High-efficiency PTFE Membrane
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PTFE is the abbreviation of polytetrafluoro ethylene. It has a molecular weight,
which is generally millions, either hundreds of thousands to the lowest or more than ten
million to the highest. The global industry continues to explore and develop new filter
materials in recent years. PTFE membrane has attracted widespread attention in the
industry for its unique molecular structure and superior filtration performance. Bulking
and stretching the PTFE molecule in two directions, here come a high-efficiency PTFE
membrane containing a large number of micropores and high porosity. It combines the
advantages of more stable chemical properties, more uniform fiber distribution, higher
filtration performance, and lower resistance and become an irreplaceable new high-end
filter material in some special application fields.
After several years of R&D, Zisun owning unique technical advantages, is one of
the few companies in the world that can stably produce high-performance PTFE
membranes in large quantities.
Due to ultra-high efficiency and ultra-low resistance, PTFE Filters shows low
system resistance, low energy consumption and stable chemical properties which are
widely used in panels, semiconductors, medicine, household appliances and other
industries. It can also be matched with other filter materials and equipment to provide
optimal "Clean Air" solutions for different scenarios
1.3 Low-resistance Melt-blown Media
Low-resistance melt-blown media is produced by melt-blown method, in which
polymer electret masterbatches such as polypropylene are blown through the polymer
melt at high temperature and high speed, so that the fibers are rapidly stretched, and the
fibers are then cured on the curtain device to form melt-blown filter media. The
filtration performance is influenced by the fineness of fiber diameter and electrostatic
adsorption effect. The low-resistance melt-blown media has a unique capillary structure
and the filtration efficiency can reach HEPA level, which can be used in air purifiers,
fresh air systems, individual protection and other fields.
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1.4 Micro Electrostatic Filtration Media
Micro electrostatic filtration media uses a strong electric field with a unique
dielectric material as the carrier to sterilize and adsorb fine particles (blocking aerosols)
to achieve air disinfection and purification technology. The dust collection module is
made of non-metallic materials (polymer) and graphene materials as carriers, and is
combined with driving circuits, which overcomes the disadvantages of traditional metal
electrostatic generation of ozone, lightens arc discharge, with powerful function of
efficient sterilization, adsorption of particles as small as 0.01um.
1.5 Chemical Filtration Media
Chemical filtration media is used for the treatment of nano-scale molecular
compound gases such as VOCs, AICD, BASE, etc., and extremely low concentrations
of airborne molecular pollutants at the ppb level one billionth concentration) or even
ppt level (one trillionth concentration).
Zisun has made a breakthrough in the bottleneck of airborne molecular pollutant
control technology through in-depth principle research and application practice. We
provided chemical filtration equipment for Hefei Jinghe Semiconductor Phase II project
in the semiconductor field, Nanjing China Electronics Panda Lighting, KinWong
Electronics and CSCEC Electronics in the panel field, Nine Dragons Paper, Jinhai Pulp
& Paper and other paper companies, as well as the Bank of China and China Settlement
Center data room projects to provide chemical filtration equipment to ensure safe
production in many industries.
With the national policy’s emphasis on “high-quality development” and “high-
quality life”, Zisun increasingly recognize that CLEAN AIR materials and technology
play an important role in this area of improving the work efficiency of people and
equipment, minimizing energy consumption, benefiting human health and
environmental safety.
Zisun has been cultivating the technology of clean air materials for many years,
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actively excavating the properties of materials, and striving to expand new materials
and new applications.
2. Technical Mechanism of Zisun Clean Air Materials
The materials, equipment and solution of Zisun Clean Air portfolio is capable to
protect human health, high-end manufacturing production processes, and the
environment from the harm the air pollutants.
Air pollutants components can be subdivided into particulate matter (PM) and
airborne molecules (AM). As shown in the figure, different particulate pollutants in the
air have different sizes, ranging from 0.1um to 500um.
(Fig from Visual Capitalist)
Common sources of particulate pollutants can be divided into four categories:
Natural source: soil dust, pollen, spore, bacteria.
Fixed Manmade source: fuel combustion (e.g., electricity generation,
metallurgy, petroleum Industry, chemical industry, textile industry, heating
supply, various industrial process, cooking etc.）
Moved Manmade source: Exhaust gas emitted into the atmosphere
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when various vehicles consume fossil fuel.
Different production and living environments have different requirements for
clean air. From high-end manufacturing to thousands of households, Zisun Clean Air
materials have important applications scenarios.
In the semiconductor field, for example, the production environment requires
extremely high cleanliness, and the airborne particulate contaminants have a significant
impact on the process yield, performance and reliability of products. A rule of thumb is
that the particle size should be less than 1/10 times the size of the smallest feature on
the device, i.e., a particle with a diameter of 0.03m will damage a feature with a line
width of 0.3m. Therefore, controlling particulate contamination in the semiconductor
manufacture process is of great significance to the economics of the production process.
For the manufacturing process of panel field, the particles will adhere to the
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surface of the substrate. In addition, the electrostatic attraction, Brownian motion,
thermal motion, photosensitive phenomena, and colloidal micelle effects may cause
particle adhesion. The rule of thumb is that the particle size must be less than half of
the minimum device feature size, particles larger than this size can cause fatal defects,
such as a 2 μm feature size cannot touch particles larger than 1 μm in size.
For the public’s daily life related to indoor spaces such as homes, schools, offices,
hospitals, etc., the state, industry, and the public are gradually emphasizing, paying
attention, and popularizing the effects of airborne particulate pollutants on health.
Airborne particulate matter can enter the human body through respiratory, digestion and
skin, and has multiple negative impacts on human health.
Respirable particulate matter (PM10) with an aerodynamic equivalent diameter of
less than 10 μm can enter the upper and lower respiratory tract of the human body.
PM2.5 and smaller diameter particles can enter the lungs and alveoli. PM0.1 can
penetrate the body through the capillary membrane of the alveoli where the air is
separated from the blood flow.
In addition, fine particles may be enriched on heavy metals, acidic oxides, organic
pollutants (such as polycyclic aromatic hydrocarbons, pesticides, etc.), and may also be
carriers of bacteria and fungi, which are extremely harmful to humans.
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(Fig from encyclopedie-environnement.org)
Observed from the nano meter scale, Zisun high-performance glass fiber filter
media, low-resistance melt-blown filter media, and high-efficiency PTFE membranes
have unique filtration structures. According to the diffusion effect, interception effect,
inertial effect, van der Waals force and Brownian motion, and sieve effect, our materials
capture and intercept particulate pollutants in the air with various mechanisms.
With a variety of patented technologies, Zisun can produce high performance
fiberglass filter media, low resistance melt blown material and high efficiency PTFE
membrane in a stable and large scale and make different clean air materials with high
filtration efficiency with the help of connecting combinations of micron-level fibers of
different diameters, which can filter with specific efficiency for various particles in the
air. Zisun tests the performance of clean air filtration materials with 0.3um and 0.1um
diameter test particles, and the highest efficiency can reach 99.999999%.
There are common airborne molecular pollutants as follows:
VOCs: e.g., Benzene, Toluene, Octane, Butyl Acetate, Ethylbenzene, Xylene
and Nonane.
Acid: e.g., Hydrogen Sulfide, Sulfur Dioxide, Nitrogen Dioxide, Nitric Oxide,
Nitric Acid.
Alkaline: e.g., Ammonia
Organic Acids: e.g., hydrochloric acid, hydrogen fluoride, sulfur dioxide,
acetic acid, formic acid
Ozone molecules
Zisun chemical filter material is for the treatment of nano-scale molecular
compound gases such as VOCs gas, ACID gas, and BASE gas. Its main principle is to
use three recording routes based on van der Waals force adsorption, chemical reaction
adsorption and chemical reaction absorption to treat airborne molecular pollutants.
For different high-end manufacturing fields such as semiconductors, panels,
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electronics, and medical care, airborne molecular contamination has different
significant impacts on different production processes and production processes.
(Classification of airborne molecular pollutants in semiconductor industry)
Taking the semiconductor industry as an example, as SEMI F21-95 Standard
Classification of Airborne Molecular Contaminant levels in Clean Environments says,
airborne molecular contamination are generally divided into 4 categories. Airborne
molecular contamination directly affects the yield and production efficiency of
semiconductor manufacturers. For panel manufacturers, Airborne Molecular
Contaminant can cause various problems such as poor brightness, spots, and
acidification of the organic layer of the panel, especially the Lens Haze phenomenon in
the exposure machine process, which shortens the life of the equipment.
According to the specific production environment and process requirements of
different users, Zisun comprehensively considers the particle size, chemical properties,
pollutant concentration and other factors of the airborne molecular contamination to be
treated customizing the design of the type and structure of chemical filter materials to
ensure the "clean air" of the user's production environment.
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3. Solutions and Service of Zisun Clean Air Materials
In response to the specific composition of air particle pollutants and airborne
molecular pollutants, Zisun provides users with a "package" of clean air materials and
technology combinations, tailored to local conditions with Zisun high-performance
glass fiber filter media, low resistance melt-blown materials, high-efficiency PTFE
membrane, micro-electrostatic filtration materials, chemical filtration materials, to
meet the needs of industrial, commercial, residential and other customers in different
scenarios of dust-free, sterile, healthy. For different air pollutant control needs, Zisun
provides rich material combination solutions, and empowers the platform to provide
users with in-depth services, and firmly establish the brand image of “ENJOY CLEAN
AIR, USE ZISUN TECHN”.
4. Main Products of Zisun High Efficiency and Energy Saving
In the field of High Efficiency & Energy Saving, Zisun has Micro Glass Fiber,
Vacuum Insulation Panel Core (VIP core material), Absorbed Glassfiber Mat (AGM
separator), Aeronautics Insulation for Aircraft, Spray Glass Fiber, High Silica Fiber and
other products, which serve the high-end energy saving field with high requirements
for thermal insulation, acoustic insulation and energy saving.
Our products are conducive to reducing energy consumption, effectively
improving energy utilization efficiency, reducing carbon emissions, achieving energy
conservation and helping the national green and low-carbon development.
5. The Working Mechanism, Solutions and Service of Zisun High Efficiency
and Energy Saving Materials
Our products such as Aeronautics Insulation for Aircraft, Spray Glass Fiber, High
Silica Fiber, etc. are made into a series of high-efficiency energy-saving products
through a special process based on the ultra-fine, uniformity, insulation, corrosion
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resistance and other characteristics of our micro glass fiber.
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High efficiency and energy saving
Name Advantage Usage
A fibrous cotton-like material made of
high-temperature molten silicate (glass)
and formed by external forces such as
used in the fields of "clean air" and "high
high-speed airflow, the average fiber
efficiency and energy saving", the core
Micro diameter is about 0.1μm-3.5μm, and has
raw material of glass fiber filter paper,
glassfiber good mechanical strength, thermal
vacuum insulation panel core material,
conductivity, thermal insulation, sound
absorbed glass mat of battery etc.
absorption. Sound insulation, corrosion
resistance, chemical stability and other
characteristics
Vacuum Used in green home appliances, building
made of micro glass fiber, low thermal
insulation energy conservation and thermal
conductivity, small bulk density, non-
panel core insulation, etc., the core raw material of
combustible, good physical processability
material vacuum insulation panel
used in vehicles such as electric bicycles,
made of micro glass fiber,good acid automobiles, aircraft and ships, energy
corrosion resistance, uniform thickness, storage components of photovoltaic
high porosity, fast absorption of power generation equipment, wind power
absorbed electrolyte, good tensile strength in both generation equipment and urban energy
glass mat vertical and horizontal directions, good storage stations, as well as uninterrupted
compression performance to ensure a backup power supply (UPS) in
certain extreme pressure, good insulation, communication base stations, databases,
etc. traffic monitoring and other fields , is the
special core material of VRLA battery
used in application scenarios with high
made of micro glass fiber, with patented
Aeronautics requirements for comprehensive
process, with the characteristics of light
Insulation performance of sound and heat
weight, flame retardant, waterproof,
for Aircraft insulation in aircraft cabins, ship cabins,
sound absorption, heat insulation, etc.
high-speed railways, subways, etc.
used for fire protection of buildings,
made of micro glass fiber,Light texture,
tunnels and other places, heat
Inorganic non-toxic and harmless, sound-absorbing
preservation and sound absorption of
spray fiber and heat-insulating, fire-resistant and
special spaces, heat preservation and
flame-retardant
energy saving of mechanical equipment
an exclusive formula and adopts a new
process,
The diameter is stable between 1μm-2μm,
High silica has excellent chemical stability and used in the aerospace field, such as the
fiber excellent physical properties, is inert to thermal insulation layer of aircraft.
most chemicals, and can work normally
and continuously under high heat and
strong radiation conditions
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(A certain type of micro glass fiber of Zisun, magnified 500 times)
5.1 Vacuum Insulation Panel Core Material
Zisun Vacuum Insulation Panel Core Material relies on company’s independent
R&D. Based on the large-scale production capacity of micro glass fiber and made by a
variety of technical indicators of the microfiber glass，Zisun Vacuum Insulation Panel
Core Material has the unique pore structure, which confines the air molecules in
numerous microporous chambers, reducing heat transfer and convection.
As shown in the figure, a Vacuum Insulation Panel consists of cover, getter and
core material which is the key component for a panel’s performance.
Zisun VIP core material has a global leading comprehensive performance with
unique pore structure, excellent uniformity of density and ideal thermal conductivity
have reached the international advanced level and are one tenth of that of traditional
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materials, which means it more suitable for long time, extreme temperature, long-term
stable insulation and provide the user with long-lasting and stable thermal insulation
performance and greater storage and transportation space.
5.2 Absorbed Glass Mat Separator
AGM separator is one of the core components of the lead acid valve regulated
battery (aka VRLA battery) used in communication backup power supply, data centers
such as large Internet companies, operators, banks and financial institutions, in the
fields of rail transit and backup power supply for nuclear power plants, as well as in
new energy power generation, energy storage for industrial and commercial enterprises,
and more. It is applied to urban energy storage stations in the Energy Storage System
(ESS), serving the peak shaving and valley filling of wind energy, solar energy and
water energy, the safety of urban electricity consumption, and the peak shaving and
valley filling on the national grid side.
It is also widely used in automotive start-stop batteries to ensure that the vehicle
start-stop system (Star-Stop) works, relying solely on the battery to drive in-car
entertainment equipment, lighting equipment and other electrical systems when the
engine is turned off, and to provide motor energy storage for vehicles with energy
recovery functions (including fuel cars, hybrid cars and new energy vehicles).
AGM separator is used to wrap the lead plates of batteries, requiring excellent
insulation, chemical stability and a rich microporous structure that allows the passage
of electrons in sulfuric acid while isolating the lead plates from contact within the
battery. The performance of the battery separator has an important influence on the
safety, reliability, service life and electric capacity of VRLA batteries.
Our AGM separator is made of micro glass fiber with excellent acid corrosion
resistance and high porosity, excellent mechanical processing performance, and
outstanding physical indicators. After two years of rigorous testing by MP company,
the results confirm that our AGM products have excellent performance and quality.
Zisun AGM products have been supplied to Exide, Tianneng, Nandu, Chaowei and
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other outstanding battery manufacturers in batches.
5.3 Aeronautics Insulation for Aircraft
Made by fiberglass, through modified composite and other patented technology,
Zisun acoustic and thermal insulation blanket has excellent performance of light weight,
flame retardant, waterproof, sound insulation, heat insulation, etc., which can be used
in aircraft cabin, ship cabin, subway and other applications with high comprehensive
requirements for sound insulation and heat insulation.
Zisun has built an acoustic laboratory according to the standard of ASTM
completed the aerospace quality management system AS9100 certification, and Zisun
acoustic and thermal insulation blanket has obtained the qualification certificate of
COMAC.
The rapid development of global space technology has put forward new
application environment and requirements for the thermal protection materials of
spacecraft, such as long-time heat protection, high efficiency thermal insulation, high
bearing capacity and high reliability of materials. Zisun has successfully developed
high performance high silica fiber products, which can be used for spacecraft heat
insulation and thermal insulation, and has excellent chemical stability and excellent
physical properties, inert to most chemicals, and can work normally and continuously
under high heat and strong radiation conditions. At present, our high-silica fibers have
been used by international well-known aerospace companies to take the lead in reaching
deep commercial cooperation, which is of great significance to develop high-end
applications in aerospace.
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5.4 Micro Glass Fiber Products for Buildings
Our ultra-fine glass fiber is uniform and slender, with moderate aspect ratio,
excellent mechanical properties, and good sound absorption and heat insulation
properties. Zisun micro glass fiber has obtained EUCEB non-carcinogenic certification
and Fraunhofer Laboratory biodegradability certification. It has also passed RoHS and
REACH hazardous substance testing certification. It is green, environmentally friendly,
and biosafe.
Based on the various excellent characteristics of our micro glass fiber, Zisun has
explored the potential of the material to develop and produce a series of products for
the green building field.
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5.4.1. Granular Glass Fiber Products
Zisun granular glass fiber products are light, non-toxic and tasteless, with good
weather-resistance, continuous material and convenient construction, which can be
particularly suitable for special-shaped structures, seamless connection and effectively
blocking the cold and teat bridge, and have three powerful abilities of fire prevention,
thermal insulation, sound absorption and noise reduction. Granular glass can also be
subdivided into sprayed glass fiber and blown glass fiber.
Sprayed glass fiber - It is made of granular cotton to match the size of the fiber
spraying equipment. After mixing with water-based adhesive, it is sprayed on the
substrate to be protected by mixing with atomized water through air pressure pump to
form a coating. The coating is naturally dried to form a seamless, overall stable and
airtight spray coating with certain strength and thickness. The surface presents elastic
natural texture and fiber texture, and can be widely used in underground garages,
equipment rooms, exterior walls, transportation hubs, stadiums, art centers, museums,
factories and other different places.
Blown glass fiber - It is a kind of cotton with softer texture, larger granular size
and looser size. It can be directly sprayed into small spaces such as attic ceilings without
the use of adhesives through the construction of special blowing equipment. It forms a
thermal insulation layer with uniform density, no chemical substances, flexible and easy
to operate, and is very suitable for thermal insulation applications of high thermal
insulation and high airtight residential buildings.
5.4.2. Energy-saving Glass Fiber Insulation Material for Building
Zisun established Sichuan Zisun Building Energy Conservation Technology Co.,
Ltd to the develop and produce more energy efficient, more environmentally friendly,
more efficient high-end glass fiber products, relying on its R & D strength and brand
advantages in ultra-fine micro glass fiber industry.
Sichuan Zaisheng glass fiber products have excellent mechanical properties,
excellent thermal insulation and sound absorption properties, and the products are light,
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soft, non-allergic, low weight capacity, biodegradable and biosafe.
Industrial high-temperature glass fiber, with 4um to 6um of Zisun’ ultra-fine fiber
glass fiber as the core material and processed by environment-friendly high-
temperature adhesive curing process, has excellent thermal insulation performance, fire
and moisture resistance. The product can be widely used in thermal insulation of
equipment and pipelines in electric power, petroleum, chemical, light industry,
metallurgy and other industries. Industrial high-temperature glass fiber is made of ultra-
fine fiber glass fiber of 4um to 6um of Zaisheng Technology as the core material.
Glass fiber for steel structure building, with 4um to 6um of Zisun’ ultra-fine fiber
glass fiber of as the core material, organically combined with strength and resilience.
The product is easy to construct, effectively avoids the cold-bridge effect, and can be
widely used for thermal insulation and heat insulation of steel structure buildings, block
water vapor, and prevent the steel structure from corroding.
The special glass fiber for animal husbandry fire protection and heat preservation
is based on Zisun’ 5um to 7um ultra-fine fiber glass fiber as the core material. Compared
with other common animal husbandry heat preservation materials, it has obvious
advantages.
High-performance sound-absorbing cotton (also known as fiberglass high-density
panel) is widely used in applications with high sound-absorption requirements, such as
audio-visual rooms, underground parking garages, auxiliary floor sound insulation, etc.
The porosity of the microfiber structure achieves a balance between elastic shock
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absorption performance and mechanical strength, effectively absorbs vibration and
sound energy transmitted to the material by pressing layers of ultra-fine and ultra-long
fibers, and at the same time has excellent thermal insulation performance, with R value
reaching 0.3 (m2.K)/W. and class-A fireproof material.
II. Overview of the Development and Changes from 2015 to 2021
(1) Adhere To "Three Insistence", Keep an Eclectic and Steady Development
Zisun has logged to Shanghai Stock Exchange in 2015 aiming the R&D of the
technology and materials for the beforehand, processing, and afterwards phrase of clean
air.
Firstly, Zisun insists on standing at the forefront of technology. Secondly, Zisun
insists on developing around the country's industrial policy. Thirdly, Zisun insists on
sticking to the manufacturing industry, promoting the high-quality development of the
enterprise, and leading the high-quality life of the employees.
Our portfolio cover from Micro Glass Fiber，High Performance Fiber Glass Filter
Media, VIP Core Material to Melt Blown Material, PTFE Membrane, Micro Static
Filter, AMC Filter, Aeronautics Insulation for Aircraft, Spray Glass Fiber, High Silica
Fiber.
2022 is the ecological year of Zisun, and we will work around the following three
points:
Point one: To actively deploy the industrial ecology in the field of clean air.
Point two: To Establish a healthy workplace ecology for employee growth.
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Point three: To actively serve users to pursue a better life of science and technology
experience ecology.
(2) Forge Ahead and Develop Steadily
Since 2015, our main financial indicators have developed steadily, operating
income and net profit have increased steadily, the asset-liability ratio has remained low
for a long time, the gross profit margin of single product has been stable, and R&D
investment has continued to increase.
From 2015 to 2021, Zisun 's operating income will increase from 234 million yuan
to 1.62 billion yuan, CAGR 38.09%; the net profit will increase from 51 million yuan
to 249 million yuan, CAGR 30.25%.
Zisun attaches great importance to investor returns and has formulated a
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reasonable dividend policy, with total cash dividends of 475 million RMB from 2015
to 2020, accounting for 58.65% of the net profit attributable to ordinary shareholders
of the listed company since 2015.
(3) Steady Increase in Production Capacity, Consolidating the Leading
Position of The Industry
The production capacity of the main products has developed rapidly. Zisun
continues to consolidate its leading position in the industry in terms of production
technology, and the scale advantage of Zisun is becoming more and more obvious. As
of the date of this report, the project under construction of “50,000 tons per year of high
performance ultra-fine fiber glass construction project”, “8,000 tons per year of clean
air filtration material construction project” and “clean air filtration material upgrade
and transformation project” has been progressing in an orderly manner.
After the completion of “50,000 tons per year of high performance ultra-fine
fiberglass construction project”, it can provide sufficient raw materials for our
downstream products of micro glass fiber.
The above three proposed investment projects will push the Zisun’s product and
revenue scale to a new level, and employees strive to ensure that the project is
completed and put into production as soon as possible.
(4) Do not Hesitate to Invest in R&D to Consolidate Technical Strength
Zisun does not skimp on continuous R&D investment and values the technical
talents.
The R&D expenses have increased from 7.11 million RMB at the end of 2015 to
97.7947 million RMB in 2021, and the number of technical personnel has increased
from 40 at the end of 2015 to 236 at the end of 2021.
Zisun recruits talents on a global scale with an international perspective for the In-
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depth study of Clean Air. Zisun has built a stable talent echelon, created a unique talent
management plan, and supported efficient and targeted talent incentive policies, and
cultivated a group of technical elites with solid theory and with passion for both Zisun
and industry.
From a strategic point of view, Zisun always adheres to the high-quality
development of the enterprise to lead the high-quality life of employees, so that talents
can enjoy their reciprocation.
Zisun continues to move forward along the international advanced level, and
talents have a yearn.
The management team employs people without any doubts, so that our employee
can give full play to their strengths. Talents can stand out by streamline administration
and delegate power. Zisun recruits talents with energy fulfilled.
From a practical point of view, Zisun has constructed a talent incentive policy with
rich levels including assistance in settlement, daily subsidies, equity incentives and so
on.
Zisun attaches great importance to the Industry-University-Research cooperation,
cooperating with Tongji University, Chongqing University, Tianjin University and
other famous universities in various ways since 2015. Zisun has a professional R & D
design team, rich experience in R & D, and an independent R & D system.
Zisun has achieved the full coverage of the raw material formula and preparation
process of the product with patents. By the end of 2021, Zisun has obtained 151 patents
and dozens of patents have been submitted for review.
Zisun also actively participates in industry academic exchanges and information
sharing. Zisun has published many academic papers, and actively undertakes several
national and municipal projects. Zisun will continue to expand its R&D team, actively
incubate new products, gather the elements of enterprise development, attract high-end
talents to join, and serve the development of the whole industry.
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(5) Promote System Construction with International Vision
Zisun continues to promote the international standard specification system and
various authoritative certifications. So far, we have passed ISO 19001,IS0 24001,
AS9100 and IATF 16949:2016 system Certification. Our microfiber glass has obtained
EUCEB non-carcinogenic certification and Fraunhofer laboratory biodegradability
certification. In January 2022, Zisun has obtained the Test Qualification Certificate of
COMAC.
(6) Strict Management Operation and Continuous Improvement of
Management Level
As a listed company, Zisun will improve the corporate governance structure in
strict accordance with Company Law of the People's Republic of China, Securities Law
of the People's Republic of China, Code of Governance of Listed Companies, Stock
Listing Rules of Shanghai Stock Exchange and other relevant laws.
Zisun ensures the operation standardization and effectiveness of the Board of
shareholders, board of directors and board of supervisors and strictly abides by the
relevant laws and regulations of listed companies.
We strengthen the management of investor relations, continues to do a good job in
information disclosure, adheres to the guidance of investor needs, truthfully, accurately,
completely, timely and fairly disclose information.
We continuously improve the initiative, pertinence and effectiveness of
information disclosure, and actively accepts the supervision of the society and the
majority of investors.
(7) Value Each Employee and Continuously Optimize the Working
Environment
We realized that talent is a great help to promote the development of enterprises.
The development of Zisun cannot be separated from the effort of each employee.
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Therefore, we create a comfortable and self-driven working atmosphere from
multiple aspects and dimensions of individuals, teams and organizations.
From 2015 to the present, Zisun has a stable management structure with a stable
senior management staff, a rich middle-level staff structure and a continuous increase
in the number of technical staff.
Working environment: Zisun optimizes the office and workshop by the strictly
control of VOC, CO2, temperature, humidity and. And abundant plants are grown.
Zisun is committed to creating a comfortable, beautiful, clean and technologically
intelligent office experience center for employees.
Living service support: Zisun has built a courtyard residence in the Zhengyuan
factory area to improve the living environment of employees.
Also, we provide employees with three meals a day for the employees to meet the
needs of the personalized dietary tastes.
Individual and team incentives:
Zisun introduced the “Competitiveness” and comprehensively enhanced
employees’ sense of participation, gain and achievement through the processes of
“setting goals - organizing empowerment - evaluation and competitiveness - sharing
results”.
Zisun has set up the Gold Metal Award to stimulate the team awareness and
innovation enthusiasm.
Since January 2018, 2,006 silver medals has been provided, and issued and 103
gold medals have been issued.
The 2019 Stock Option Incentive Plan widely covers the middle-level and high-
level management employees. And The 2021 Employee Stock Purchase Plan is targeted
at the key technical staff.
Those two “plans” are organically combined to create a highly efficient and precise
staff incentive program.
The individual needs are guaranteed in Zisun. There are rich cultural activities and
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various team activities from time to time, such as fun sports games, Friday afternoon
tea and other activities.
(9) Multiple Branding Channels
With the brand strategy of “Enjoy Clean Air, Use Zisun Tech", Zisun has a leading
brand position in the industry.
On the one hand, Zisun has won the trust and reliance of global customers with
excellent product performance and stable supply capacity over the years.
On the other hand, with the development of economy and technology, Zisun uses
the Internet (such as WeChat public account, TIK TALK and other platforms) as a tool
to enhance brand popularity and expand brand value.
Facing the differentiation and diversification of product application fields, Zisun
adopts a differentiated marketing model.
Zisun explores the core of user needs, does not stick to stereotypes, and chooses
the appropriate model according to local conditions.
For example, Zisun actively participates in various industry exhibitions to
demonstrate the advanced nature of our materials, technology and production capacity,
and also through the establishment of experience stores, allowing users to experience
the many advantages of the whole-house comfort system.
III. Industry Situation of The Company During the Reporting Period
(1) Overview Of the Industry Situation
In The Fourteenth Five-Year Plan and the Outline of Vision 2035, it proposes to
promote green development, promote harmonious coexistence between man and nature,
emphasize in-depth pollution prevention and control actions, continuously improve
environmental quality, accelerate the green transformation of development methods,
and comprehensively improve resource utilization efficiency , vigorously develop the
green economy, build a green development policy system, formulate an action plan for
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peaking carbon emissions by 2030, strive to achieve carbon neutrality by 2060, promote
a comprehensive green transformation of economic and social development, and build
a beautiful China.
The “Opinions of the Central Committee of the Communist Party of China and the
State Council on Completely Accurately and Comprehensively Implementing the New
Development Concept and Doing a Good Job in Carbon Reaching Peak and Carbon
Neutrality” issued by the Party Central Committee and the State Council clearly pointed
out:
To accelerate the formation of green production and lifestyle. Vigorously
promote energy conservation and emission reduction, comprehensively
promote clean production, accelerate the development of circular economy,
strengthen comprehensive utilization of resources, and continuously improve
the level of green and low carbon development.
To vigorously develop green and low-carbon industries. Accelerate the
development of new-generation information technology, biotechnology, new
energy, new materials, high-end equipment, new energy vehicles, green
environmental protection, and strategic emerging industries such as aerospace
and marine equipment.
To vigorously develop energy-saving and low-carbon buildings. Continue to
improve energy conservation standards for new buildings, and accelerate the
large-scale development of ultra-low energy, near-zero energy, and low-
carbon buildings. Vigorously promote the energy-saving renovation of
existing buildings and municipal infrastructure in cities and towns and
improve the energy-saving and low-carbon level of buildings.
The “Proposal of the Central Committee of the Communist Party of China on
Formulating the 14th Five-Year Plan for National Economic and Social Development
and the Visionary Goals for 2035” has made “reaching a new level of people's well-
being” one of the main goals of China's economic and social development in the 14th
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Five-Year Plan period. To achieve this economic and social development goal, we must
adhere to the people-centered development ideology, further address the most direct
and realistic interests of the people, promote high-quality development, create a high-
quality life, and continuously realize the people's aspirations for a better life.
The China Central Committee and the State Council released the top-level policy
of “1+N dual carbon” to help achieve “carbon neutrality and carbon peaking”. Local
policies are frequently introduced one after another. The global requirements for green,
environmental protection and energy saving are constantly improving, and various
domestic and foreign demands have created more development opportunities for the
fields of “clean air” and “high efficiency and energy saving”.
(2) Introduction To the Clean Air Industry
1. Indoor Air Quality
Economic development, the continued prevalence of the epidemic, and the
public’s yearning for a better life have promoted the improvement of IAQ requirements.
In the short term, there is an increasing demand for existing air conditioning systems
and air quality improvement equipment and services（such as ventilators, Air Cleaning
Products and Air Filters. In the long run, the demand for indoor air quality solutions
continues to increase by focusing on providing users with value-added and high air
quality solutions.
1.1 Relevant Policies
According to the National Health Commission's "Indoor Air Quality Standards",
(1) People spend more than 80% of their time indoors every day, the air they
breathe mainly comes from indoors, and the chance and time of contact with indoor
pollutants are more than outdoor.
(2) The sources and types of indoor pollutants are increasing day by day, resulting
in an even heavier level of indoor air pollution on the basis of outdoor air pollution
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(3) In order to save energy, the degree of airtightness of modern buildings has
increased. Due to the imperfect central air-conditioning ventilation facilities, indoor
pollutants cannot be discharged outdoors in time, resulting in the deterioration of indoor
air quality.
WELL & Healthy Buildings Application Guide point out that the air, water,
nutrition, light, health, comfort and spirit of buildings affect human health and well-
being. Healthy Building Evaluation Standard (T/ASC 02-2016) require that the daily
average concentration of indoor PM2.5 is not higher than 25ug/m3, the daily average
concentration of PM10 is not higher than 25ug/m3, and the daily average concentration
of CO2 is not more than 900ppm.
According to the World Health Organization (WHO), nine out of ten people in the
world breathe polluted air and seven million premature deaths each year are linked to
air pollution which can be divided into 34% stroke; 26% ischemic heart disease; 22%
chronic obstructive pulmonary disease; 12% acute lower respiratory tract infection in
children; 6% lung cancer.
1.2 Industry Trends
Modern humans, especially urban populations, spend the vast majority of their
time indoors, and indoor air quality has a significant impact on the general public.
According to the U.S. Environmental Protection Agency, indoor air quality is about five
times worse than outdoor air quality. After the popularity of air conditioning systems in
the 1970s, the sick building syndrome (SBS) emerged, which refers to adverse health
or comfort reactions of people who spend varying amounts of time in buildings that are
not caused by disease or a well-defined pathology. Studies have proven that sick
building syndrome is mainly caused by severe indoor air pollution, high carbon dioxide
concentration, poor lighting, and lack of thermal comfort.
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In HVAC systems, air intakes often inhale dust particles, chemical contaminants,
harmful viruses and bacteria, and other toxic particles which are captured by filters or
lodged in ventilation ducts and other areas and may cause serious health risks. Then
keeping ventilation systems in good clean and hygienic conditions can help prevent the
build-up of harmful particles from spreading in the system.
The fresh air system is also subdivided into various modes such as one-way flow,
two-way flow and displacement ventilation. Displacement ventilation is a cutting-edge
ventilation technology that enables high air quality, thermal comfort, and ventilation
efficiency in residential areas, while also saving building energy consumption.
1.3 What Zisun Could Do with Indoor Air Quality
At present, indoor air quality and comfort are generally solved by single or
multiple systems such as HVAC unit, fresh air system and floor heating system.
Our subsidiary Zisun Jinghua , together with Germany TROX, relying on our 20
years of rich experience in the field of clean air, has formed a professional team to
create a comfortable and dust-free air conditioner for the high-end residential market.
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Zisun Comfort Dust-free Air Conditioner for residential integrates fresh air
purification, cooling and heating, dehumidification and humidification, variable air
volume intelligent monitoring, and intelligent control into one system to provide users
with a customized whole-house comfort system, combined with our rich “Clean Air”
Materials, professional equipment and first-class technology, and strive to create a high-
quality life for users that is energy-saving, dust-free, quiet, oxygen-rich, beautiful, and
intelligent, and strive to seize the trend of consumption upgrades and the rapid
development of the Internet of Things to promote the development of clean air, develop
to the user end, provide services, identify the enterprise positioning and competitive
advantages, and build a system integration ecology in the field of comfortable
residential market.
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2. New Energy Vehicles and Other Mobile Space Field
As the epidemic continues to spread, the public is paying more and more attention
to the safety of air quality in mobile spaces such as carriages, airplane cabins, and ship
cabins.
The structural design of new energy vehicles provides the conditions for them to
be equipped with large-sized, high-efficiency cabin filters.
With the gradual increase in the sales and ownership of new energy vehicles, the
cabin filter element of new energy vehicles has ushered in a huge market prospect.
2.1 Related Policies
In October 2021, the Central Committee of the Communist Party of China and the
State Council issued the Opinions on Completely Accurately Implementing the New
Development Concept and Doing a Good Job in Carbon Neutralization and the Carbon
Peaking Action Plan before 2030.
The plan clearly defines carbon reduction measures which calls for focusing on
the implementation of green and low-carbon transformation of energy, energy
conservation, carbon reduction and efficiency enhancement, carbon peaking action in
the industrial sector, urban and rural construction carbon peaking action, transportation
green and low-carbon action, circular economy boosting carbon reduction action, green
low-carbon action Carbon technology innovation action, carbon sink capacity
consolidation and improvement action, green and low-carbon national action, and
orderly carbon peaking action in various regions, etc.
The "New Energy Vehicle Industry Development Plan (2021-2035)" issued by the
General Office of the State Council pointed out that my country's new energy vehicles
have entered a new stage of accelerated development, and new energy vehicles have
become the main direction of the transformation and development of the global
automobile industry and a driving force for the continuous growth of the world
economy. important engine.
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The development of new energy vehicles by integrating various national policies
is an important strategic measure to deal with climate change and promote green
development.
2.2 Industrial Trends
According to the report of the Passenger Vehicle Market Information Joint
Conference, during the year of 2021, the cumulative sales of new energy vehicles
nationwide will be 2.446 million with a cumulative year-on-year increase of 168.0%.
By the end of 2021, the number of new energy vehicles in the country will reach
7.84 million, accounting for 2.60% of the total number of vehicles.
Cars gradually change from a means of transportation to a consumer product with
diverse functional needs. Automobile manufacture companies have moved to directly
facing consumer demand. As the public pays more and more attention to high quality
of life, car users have increasingly higher requirements for safety, comfort, health, and
intelligence during driving.
Therefore, healthy and intelligent new energy vehicles have become the
development direction of many automobiles manufacturing companies around the
world by investing a lot of resources in the research and development of "healthy cars".
Due to its structural advantages, new energy vehicles provide conditions for
assembling higher performance, larger size, faster and more efficient cabin filters. With
the continuous increase in the demand for new energy vehicles, the demand for cabin
filters is increasing day by day.
Some leading new energy vehicle companies have proposed that they have
developed “anti-biological and chemical weapons-grade” vehicles because air pollution
will reduce the life expectancy of the public. This type of new energy vehicle is
equipped with a variety of gas detectors and HEPA-level cabin filters, and the air
purification effect of the car cabin is hundreds of times better than other.
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New energy vehicles have two sets of electrical systems: high-voltage and low-
voltage, and the valve-regulated lead-acid battery has to ensure the power supply of the
low-voltage system of the vehicle and also wake up the high-voltage battery system.
As the sales and ownership of new energy vehicles continue to increase worldwide, the
installed capacity of valve-regulated lead-acid batteries continue to increase, and the
demand and technical requirements of AGM battery compartments are increasing.
2.3 Zisun in the Field of New Energy Vehicles and Other Mobile Space
Zisun has been established to provide a variety of filters for car cabin air safety
and air quality, effectively filtering airborne fine particles, gas pollutants, as well as
bacteria, viruses, dust, aerosols, plant Pollen, mold spores, dust mite excretion, etc. The
filtration effect of particles ≥0.3μm can reach 99.97% and above, allowing drivers to
enjoy clean and healthy air in the car, which can enhance driving comfort, protect the
health of drivers and enhance driving safety, prevent dust from accumulating inside the
air conditioning system and prolong its service life.
With the application of valve-regulated lead-acid batteries in automotive start-stop
batteries holding a rise, the installed capacity of valve-regulated lead-acid batteries in
new energy vehicles continues to increase, and Zisun AGM separator has also ushered
in continuous sales growth. We continue to explore customers of battery manufacturers,
insist on exploring material performance, and expand product capacity in real time to
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meet the multiple demands of the market for battery separator technology and capacity.
3. High Efficiency Agriculture
Chinese agriculture has created the miracle of feeding 20% of the world's
population with less than 10% of the world's land resources. Agriculture is China’s
basic industry. China's modernization is inseparable from agricultural modernization.
Comprehensively promoting the rural revitalization strategy and accelerating the
modernization of agriculture and rural areas are the basic policies of the state.
3.1 Related policies
The Fourteenth Five-Year Plan and Outline of Vision 2035 proposes:
to accelerate the modernization of agriculture, improve the quality, efficiency
and competitiveness of agriculture, enhance the comprehensive agricultural
production capacity, deepen the adjustment of agricultural structure, promote
the green transformation of agriculture, deeply implement the action of
reducing the number of pesticides and fertilizers, and improve the standard
system of green agriculture;
to accelerate the development of smart agriculture, promote the digital
transformation of agricultural production, operation and management services.
to adhere to the arable land protection system, strengthen the protection of the
quantity and quality of arable land, improve the agricultural science and
technology innovation system, and build smart agriculture.
In February 2021, the "Opinions of the Central Committee of the Communist Party
of China and the State Council on Comprehensively Promoting Rural Revitalization
and Accelerating the Modernization of Agriculture and Rural Areas" called for
accelerating the promotion of agricultural modernization, strengthening the support of
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modern agricultural technology and material equipment, and promoting the green
development of agriculture.
3.2 Industry Status
Plant factory, also known as three-dimensional agriculture, refers to an efficient
agricultural system that produces vegetables, medicinal plants and fruits at high spatial
density in a highly controlled environment, and achieves continuous crop production
on an annual basis through high-precision environmental control in the facility, which
is an automatic control of environmental conditions such as temperature, humidity, light,
CO2 concentration and nutrient solution for plant growth using intelligent computers
and electronic sensing systems, so that the growth and development of plants in the
facility are not or rarely constrained by natural conditions. Compared with traditional
field farming, its production process does not use pesticides, uses 90% less water, and
saves up to 95% or more of the land.
Precision agriculture is a new type of agriculture in which information technology
is fully integrated with agricultural production. Supported by information technology,
a whole set of modern farming operation technology and management system is
implemented according to space, positioning, timing and quantification to reduce the
use of fertilizers and pesticides while improving yields.
Plant factories and precision agriculture can save land resources as much as
possible, improve output efficiency, reduce resource consumption, especially reduce
the consumption of natural resources such as water, land and energy, reduce agricultural
carbon emissions, and achieve scientific, standardized, quantified and efficient
agriculture through industrial centralized planting.
As a pioneer of high-efficiency agricultural modernization, the container plant
factory has the technical advantages of standardization, automation, closed type, and
planting. They are equipped with advanced green crop planting systems, and carry out
research on the lighting, temperature and humidity environment and airflow
organization of plant factories to form a functional and economic closed micro-
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environment management plant factory platform, which can realize a sustainable
economy such as year-round planting, zero chemical agents, energy saving, and
resource recovery. Its sea and land transportation are flexible and mobile, can precisely
arrange production, digital operation and fine management of all aspects of agricultural
production, can meet the supply needs of agricultural urbanization and community, fill
the gap of local vegetable, flower and fruit trade, reduce intermediate links, and also
carry out the integration of home, office, commercial and planting laboratories to
achieve zero distance contact between vegetables and users.
3.3 Zisun in the Field of Efficient Agriculture
Zisun has carried out active research with experts and professors of Tongji
University, a well-known domestic university, to provide intelligent fresh air system
and insulation materials and equipment, to improve the production efficiency and
product quality of the plant factory and provide technical support for insect-free and
pesticide-free vegetables and fruits and serve modern smart agriculture. Zisun is
actively building a container plant factory with “Clean Air” and “energy efficient”
products and technologies, providing technological support for low-carbon, green,
modern and efficient agriculture, contributing to the “low carbonization” of agriculture
and creating more social benefits.
(Fig Of Zisun Container Plant Factory)
4. Animal Husbandry
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Animal husbandry listed as the two pillars of agricultural production alongside
planting is one of the main components of agriculture. Animal husbandry is related to
the supply of meat, eggs and milk to the masses. The comprehensive capacity of animal
husbandry is the guarantee of national food security.
4.1 Related polices
The General Office of the State Council's "Opinions on Promoting the High-
Quality Development of Animal Husbandry" (Guobanfa [2020] No. 31) pointed out:
Accelerate the implementation of regional prevention and control of major
animal diseases such as African swine fever, implement the inter-provincial
joint meeting system, and coordinate the prevention and control of animal
diseases, supervision of livestock and poultry and livestock and poultry
products, and market supply. Unified planning and implementation of
designated channel transportation of livestock and poultry. Support qualified
areas and large-scale farms (households) to build epidemic-free areas and
communities. Promote the purification of animal diseases, focus on breeding
livestock and poultry farms, give priority to the purification of vertically
transmitted animal diseases, and build a number of purification demonstration
farms.
Guide livestock and poultry slaughtering and processing enterprises to
transfer to the main breeding areas, promote the local slaughter of livestock
and poultry, and reduce the long-distance transportation of live livestock and
poultry. Encourage slaughtering and processing enterprises to build
refrigerated processing facilities such as cooling warehouses and low-
temperature segmentation workshops and configure cold chain transportation
equipment. Promote logistics and distribution enterprises to improve the cold
chain distribution system, expand the sales network, and promote the
transformation of live livestock and poultry transportation to meat
transportation. Standardize the management of cross-regional transfer of live
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livestock and poultry and improve the "point-to-point" transfer system.
Advocate the safe and healthy consumption of livestock and poultry products,
and gradually increase the proportion of chilled meat consumption.
Strengthen the comprehensive management of veterinary antibiotics,
implement the monitoring of animal-derived bacterial resistance, withdrawal
of medicated feed additives, and actions to reduce the use of veterinary
antibiotics. Establish an evaluation system for the green development of
animal husbandry and promote supporting technologies for green
development.
According to the "14th Five-Year Plan" National Animal Husbandry and
Veterinary Industry Development Plan formulated and issued by the Ministry of
Agriculture and Rural Affairs, by 2025, major progress will be made in the
modernization of the national animal husbandry, and dairy cattle, pigs and poultry
farming will take the lead in basically realizing modernization.
In terms of product guarantee goals, the self-sufficiency rate of pork is
maintained at about 95%, the self-sufficiency rate of beef and mutton is maintained at
about 85%, the self-sufficiency rate of milk is more than 70%, and poultry meat and
eggs are basically self-sufficient.
In terms of industrial safety goals, the ability to comprehensively prevent and
control animal diseases has been greatly improved, a breakthrough has been made in
the development of veterinary social services, and the supervision capacity of feed and
veterinary drugs has been continuously enhanced.
In terms of green development goals, the comprehensive utilization rate of
livestock and poultry manure will reach more than 80%, forming a new green and
circular development method that combines planting and breeding and recycling of
agriculture and animal husbandry.
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In terms of modernization construction goals, the self-sufficiency rate of the core
species of livestock and poultry will reach 78%, the scale rate of livestock and poultry
breeding will reach more than 78%, and the production and operation of the entire
industrial chain of breeding, slaughtering, processing, and cold chain logistics will be
intensified, standardized, and automated. , The level of intelligence has reached a new
level.
The "Animal Epidemic Prevention Law of the People's Republic of China" revised
in 2021 has significantly added the expression "purification and elimination" of animal
epidemics, mentioning that "animal epidemic prevention should be based on prevention,
and the policy of combining prevention with control, purification and elimination." And
"the state promotes the purification of animal epidemics and encourages and supports
units and individuals that raise animals to carry out purification of animal epidemics.
4.2 Industrial Trends
The use of land in our country's animal husbandry is limited by the available
natural resources, so the density of animal husbandry in my country is high, especially
the density of pig breeding is alarming. High-density farming is accompanied by the
pressure of environmental protection and disease protection. With the development
of society and economy, people's consumption of animal food has changed, the
requirements for quality are getting higher and higher, and the demand for categories is
constantly diversified. Driven by a variety of policies, the large-scale and intensive
trend of dairy cattle, pigs, and poultry farming has become more and more obvious, at
the same time the accompanying disease control requirements have become more and
more important.
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(The interior of pig house overseas)
Taking the pig farming industry as an example, China is the world's largest
producer and consumer of pigs, and pork is the mainstream meat consumption variety
in China. African swine fever is an infectious disease caused by African swine fever
virus (ASFV) infecting domestic and wild boars which broke out in China for the first
time on August 1, 2018. China's hog industry has encountered major epidemic
prevention pressure. According to the data released by the National Bureau of Statistics,
based on 2017 before the outbreak of African swine fever in China, China’s pork
production fell by 10.85 million tons and 12.27 million tons in 2019 and 2020,
respectively. The number of live pigs in 2019 and 2020 decreased by 144.42 million
and 161.57 million, respectively.
4.3 Zisun in Animal Husbandry
Since the large-scale outbreak of African swine fever in China, the pig breeding
enterprises have raised the requirements for the prevention and control of the disease in
pig houses. Zisun actively conducts technical communication with animal husbandry
users, and specially developed a new filter material, which is a high-efficiency, low-
resistance, high-temperature and high-humidity filter material with a filtration effect of
over 94% for 0.3μm particles, for the special environment of high temperature and high
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humidity in pig houses that require the fresh air of pig houses of outstanding breeding
enterprises.
(Fig of Fresh Air System of Pig House)
Zisun filter materials for animal husbandry has the international leading level
technical indicators. It solves the problems of insufficient efficiency and short life span
of chemical fiber filter materials used in the fresh air of pig houses，provides a reliable
application solution for effectively reducing the spread of the virus, solves the key
technical problems in the prevention and control of African swine fever, and provides
equipment and material guarantees. According to user feedback, after the Zisun filter
materials and equipment for animal husbandry were put into use, the air quality inside
the pig house was improved. For the more, the growth rate of live pigs was accelerated,
and the survival rate of live pigs was improved.
In 2021, Zisun continued to provide many outstanding animal husbandry
companies with fresh air filter materials and equipment. Affected by the progress of
downstream pig cycle expansion, some fresh air application projects for pig barn
slowed down during the reporting period will strive to promote the application of clean
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air core products in the field of animal husbandry, actively promote our products and
services through industry exhibitions and other means, provide materials and
equipment for different customer needs, and strive to improve the company profitability.
5. Biomedicine, medical and health fields
5.1 Related Policies
In January 2020, the General Administration of Market Regulation (GAMR)
issued the “Drug Registration Management Measures” to continuously regulate drug
registration practices and ensure the safety, efficacy and quality control of drugs.
In September 2021, the General Office of the State Council issued a notice on the
“14th Five-Year Plan” for national medical security.
On January 17, 2022, President Xi Jinping pointed out in his speech on “Steadfast
Confidence, Courageous Progress for a Better World in the Post-Epidemic Era” at the
World Economic Forum video conference that “the changes of the times and the
epidemic of the century have overlapped each other, and the world has entered a new
period of turbulent change. How to overcome the Covid-19 and how to build a post-
pandemic world, which are the major issues of common concern to the people of the
world, and an urgent and important question that we must answer.”
5.2 Industrial Trends
According to the National Bureau of Statistics, the total health expenditure in
China rose from 2,400 billion RMB to 6,600 billion RMB from 2011 to 2019, with a
compound annual growth rate of 13.24%.
Based on the macro trends such as domestic population structure and economic
development, and the environment of encouraging innovation and domestic substitution
and internationalization in the medical and health industry, China's biomedicine and
medical and health industries will continue to flourish.
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Globally, the continued focus on health and disease treatment in various countries
is driving increased investment and financing in the industry. The growing demand of
domestic and foreign biomedicine and healthcare industries directly drives the demand
for “clean air” materials and solutions for the industry.
The world has suffered untold shocks and disasters since the epidemic of Covid-
19. The ability of all industries to combat the impact of the Covid-19, respond to
unexpected health crises and awareness of epidemic prevention and control has been
greatly enhanced. The public health concept, consumption habits, psychological quality,
education and culture have changed accordingly. Globally, the continued emphasis on
health and disease treatment in various countries has driven continued investment in
the industry and continued increases in industry financing. As the epidemic of Covid-
19 continues to recur, the demand for medicine and medical treatment will always
continue globally. With the development of science and technology, there will be a
variety of needs such as new drugs, vaccines, makeshift hospitals and mobile hospitals,
which will directly promote the corresponding application scenarios on the importance
and technical requirements of “clean air”.
In summary, the growing demand in domestic and foreign biomedical and
healthcare industries is directly driving the demand for “clean air” materials and
solutions for the industry.
5.3 What Zisun Could Do with Biomedicine, Medical and Health Industry
For the bio-pharmaceutical, medical and health care industry, it can be subdivided
into pharmaceutical biology, chemical raw materials, pharmaceutical services,
traditional Chinese medicine, medical devices, biological products, chemical
preparations and other production, manufacturing, transportation, storage and other
environmental needs of different levels of "clean air" standard users.
For pharmaceutical companies, because their production process involves some
highly active, highly toxic, allergenic, teratogenic drugs or intermediates, the industry
has established OEB (occupational exposure band) level occupational exposure
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classification, which in turn has put forward strict requirements for the biosafety of the
production environment. The trend of production process confinement in the bio-
pharmaceutical industry is obvious, and the cleanliness requirements of bio-
pharmaceutical companies and the stringency of air management have also increased.
For vaccine manufacturers, who need both vaccine quality and bio-safety of
production activities, different levels of protection for vaccine production workshops
impose stringent requirements on “Clean Air” materials, equipment, and technical
solutions.
In the field of biomedical and medical health, “Clean Air” materials play an
important role in ensuring manufacturing and personnel safety. There are various
“Clean Air” materials used for ASHRAE/HEPA/ULPA filtration of clean rooms in this
field, with high reliability.
In addition, U-Air provides biosafety equipment and Bag In Bag Out Filter (BIBO)
equipment for biopharmaceuticals. With high purification efficiency and airtightness,
BIBO equipment is widely used in various fields with high risk or high isolation
requirements, such as: chemical and biological (CB) protection, chemical, biological
and radiological (CBR) protection, nuclear, biological and chemical (NBC) protection,
hospital isolation rooms, pharmaceutical facilities, microelectronic environments, food
processing areas, biological research, genetic and biotechnology laboratories, industrial
treatment and discharge systems, chemical processing equipment, animal disease
research laboratories, radioisotope research laboratories, radioactive isotopes, and other
equipment. It is safe and efficient, simple and reliable in use, effectively removing
contaminated particles and gases from hazardous environments and avoiding direct
contact with harmful contaminants inside the equipment during filter changes and
testing.
In addition, U-Air provides bio-safety equipment and BIBO equipment for
biopharmaceuticals. The BIBO equipment is safe, simple and reliable, removing
contaminated particles and gases from hazardous environments and preventing
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personnel from coming into direct contact with harmful contaminants inside the
equipment during filter changes and testing. U-Air has already provided services in
Liaoning Chengda Biological and Jinhe Youben P3 animal room projects. During the
reporting period,U-Air won the bids for the annual clean-room replacement project of
Huadong Pharmaceutical, the GMP plant purification project of Boshengji cell
production base, the Biological project of Haining Sibe , the project of Yunnan Baiyao
Shanghai International Center and the project of Shenyang Sanjiu Pharmaceutical.
（Figs of U-air UltraBIBO Filter Unit）
6. Semiconductor, Panel, Precision Instrument Processing and Other
Advanced Manufacturing Fields
6.1 Related Policies
The Central Network Security and Informatization Commission issued the "14th
Five-Year Plan for National Informatization" to make deployment arrangements for the
development of informatization in my country during the "14th Five-Year Plan" period.
Technical breakthrough. Promote innovations in computing chips, memory chips, etc.,
accelerate the research and development of key materials such as integrated circuit
design tools, key equipment, and high-purity targets, and promote breakthroughs in
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characteristic processes such as insulated gate bipolar transistors (IGBTs) and
microelectromechanical systems (MEMS).
6.2 Industrial Trends
In its World Fab Forecast, SEMI highlighted that global front-end fab equipment
spending is expected to grow 10% year-over-year in 2022 to a record high of more than
$98 billion. Fab equipment spending rose 17% in 2020 and 39% in 2021, marking
another three-year increase from 2016 to 2018.
SEMI released the Year-End Total Semiconductor Equipment Forecast (- OEM
Perspective), which states that total global sales of semiconductor manufacturing
equipment by original equipment manufacturers are expected to reach a new high of
$103 billion in 2021, compared with 710 in 2020. A record increase of 44.7% to $100
million. The total global semiconductor manufacturing equipment market is expected
to expand to $114 billion in 2022.
SIA data show that global semiconductor sales in 2021 will reach a record high of
US$555.9 billion, a year-on-year increase of 26.2%. Among them, the sales of the
Chinese market were US$192.5 billion, still the largest semiconductor market in the
world, with a year-on-year increase of 27.1%. SIA also expects global semiconductor
sales to grow 8.8% this year as chip manufacturers continue to expand capacity to meet
demand.
Frost & Sullivan expects a compound annual growth rate of 9% in global clean
room investment from 2020 to 2024, while domestic clean room investment, the
semiconductor industry's clean room will have a compound annual growth rate of 20%.
According to the data provided by Frost & Sullivan, the domestic clean room market is
mainly dominated by semiconductor and electronics industry, which occupies more
than half of the market.
According to SIA and BCG forecasts, the growth rate of foundry capacity in
mainland China during the period 2021-2030 will rank first in the world.
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A clean environment is an important guarantee for the smooth production of
semiconductors, panels, precision instrument processing and other industries at home
and abroad. The continuous investment in the industry will promote the demand for
new additions and replacements of "clean air" materials and equipment.
6.3 What Zisun Could Do Within Advanced Manufacturing Fields
Zisun in advanced manufacturing fields such as conductors, panels, and precision
instrument processing
In the semiconductor manufacturing process, the critical dimensions of printed
patterns are getting smaller and smaller, and the control of airborne particulate and
airborne molecular contamination is a key factor affecting its yield. A wafer has to go
through multiple processes, while any slight contamination in the entire process chain
will have a serious impact on its yield, performance, and reliability.
In clean rooms represented by advanced manufacturing fields such as
semiconductors, panels, and precision instrument processing, "Clean Air" materials
which play an important role in the reduction of air pollutants and energy saving will
be processed into various filters or filter units according to requirements. Zisun
continues to dig deep into the properties of materials and promote technological
progress.
(Figs of U-Air Cylinder Matrix Filter Set and Ultrafan FFU)
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Zisun has a wealth of “Clean Air” materials and equipment solutions, according
to the specific needs of different types and levels of clean rooms, we can provide
suitable materials and solutions to effectively deal with particle pollutants and gas
molecules in the clean room; effectively ensure the safe operation of personnel,
equipment and materials in the clean room, avoid the escape of pollutants during the
production process of the clean room, and ensure the safety of the surrounding
environment.
In 2021, U-air has provided “clean air” products and solutions for more than 40
outstanding companies, including Huizhou Xinli, Hefei Jinghe, Dongguan Huawei,
Jiasheng Semiconductor, Jingxin Semiconductor, Shanghai BYD and others. U-air also
continues to provide “Clean Air” services for BOE, Jiatai Optoelectronics, Xiamen
Tianma, Shanghai Hefei and other users, providing a variety of products and solutions.
U-air will continue to dig deeper into the material performance and continuously
improve the product quality to meet the increasing application needs of advanced
manufacturing fields such as semiconductor, panel and precision instrument processing.
(3) High-efficiency Energy-saving Industry
1. The Field of Green Appliances
Household appliances are the second largest source of residential energy
consumption, accounting for more than 20% of total residential energy consumption
(after heating), and up to 30% of residents' carbon emissions come from household
appliances.
Through the upgrading of the product structure of green household appliances,
especially the promotion and popularization of low-energy consumption products in the
market, the carbon emission of residents' consumption side can be effectively reduced.
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The structure of the household appliance industry under the requirement of carbon
neutrality is facing adjustment, and enterprises with high carbon emissions may be
eliminated.
1.1 Related polices
In June 2019, the “Green and Efficient Refrigeration Action Plan” jointly issued
by the National Development and Reform Commission and other seven ministries and
commissions put forward specific requirements for the municipal High efficiency and
energy saving level of refrigeration products such as air conditioners in my country.
In the policy documents such as the “Implementation Plan for Promoting the
Update and Upgrading of Key Consumer Goods and Smooth Resource Recycling
(2019-2020)” issued by the Ministry of Ecology and Environment and other
departments, it is proposed to support the sales of green and smart home appliances and
promote the upgrading of home appliances.
The “Technology Roadmap for China's Household Refrigerator Industry (2019
Edition)” clearly proposes to achieve a comprehensive balance between energy saving
and basic functions of refrigerators. By 2025, the High Efficiency and Energy Saving
level of refrigerators will be increased by 25% compared with 2019, and by 25% in
2030 compared with 2025.
1.2 Industrial Trends
Transmission is the major contributor (> 50%) to the total cooling load for typical
domestic refrigerators. Understandably, insulation in refrigerator walls plays an
important role in reducing it. Compared with traditional refrigerator insulation layer,
vacuum insulation board board has lower thermal conductivity, longer insulation time
and smaller thickness, with higher energy saving grade, and can enhance the effective
utilization rate of refrigerator volume.
With the continuous improvement of High efficiency and energy saving grade
standards and environmental protection requirements for relevant household appliances
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around the world, the traditional thermal insulation materials, especially for
applications such as high-power and large-volume refrigerators, can no longer meet the
requirements of high High efficiency and energy saving grade household appliances.
（Figs of Vacuum Insulation Panel in Premium Refrigerator）
At present, the VIP panels have been widely used in many premium refrigerator
brands around the world and have become an important means of achieving High
efficiency and energy saving upgrades for household appliances.
1.3 Zisun and Green Appliances
Refrigerators are an important part of appliances, and since their introduction more
than a hundred years ago, their related technologies and requirements have been
constantly improving. As the core component of a refrigerator, its insulation layer is
still mainly made of polyurethane. The excellent thermal insulation performance of VIP
board has been gradually extended to water heater, rice cooker, kettle and other
appliances that need thermal insulation and heat preservation.
The high-efficiency inorganic vacuum insulation board produced by Zisun is the
core insulation material of the VIP board. The core indicators such as thermal
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resistance coefficient, physical properties and stability of the core material directly
affect the vacuum degree, water absorption and thermal conductivity of the VIP board,
and determine the comprehensive performance and service life of the VIP board.
Zisun VIP core material owns the advantages of low thermal conductivity, thin
thickness, small volume, light weight, fluorine-free manufacture process and easy
recycling, etc., which could efficiently reduce the energy consumption of household
appliances and increase the use of space and has been widely used in a variety of green
home appliances, mainly high-end refrigerators. Zisun is grasping the market
opportunities, constantly improving product performance and increasing product
capacity to meet the growing market demand.
2. Cold Chain
Cold chain refers to the special supply of certain products in the process of
processing, storage, transportation, distribution and retailing, and use, in which each
link is always in a specific low-temperature environment necessary for the product to
reduce loss, prevent pollution and deterioration, and ensure product safety. chain system.
The cold chain has been deeply integrated into the lives of the public and has a
wide range of applications, including primary agricultural products, processed foods,
and special commodities (such as medicines and vaccines). One of the core components
of cold chain logistics is temperature control and insulation.
2.1 Related Policy
In December 2021, the State Council’s “14th Five-Year Plan for the Development
of Cold Chain Logistics” pointed out that cold chain logistics is the use of temperature
control, preservation and other technical processes and facilities and equipment such as
cold storage, refrigerated trucks, and refrigerated boxes to ensure that cold chain
products are in the initial stage.
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Professional logistics in which the whole process of processing, storage,
transportation, distribution processing, sales, and distribution is always under the
specified temperature environment.
Promoting the high-quality development of cold chain logistics is an important
means to reduce post-production losses of agricultural products and waste in food
circulation, expand high-quality market supply, and better meet the people's growing
needs for a better life; it is an important means to support the large-scale
industrialization of agriculture, promote agricultural transformation and it is an
important foundation for farmers to increase their income and help rural revitalization.
It is an important way to meet the individual, quality and differentiated
consumption needs of urban and rural residents, promote consumption upgrades and
cultivate new growth points, and deeply implement the strategy of expanding domestic
demand and promote the formation of a strong domestic market.
To improve the quality and safety system of fresh agricultural products “from
farmland to table, from branch to tip of tongue”, improve the quality control capability
of the whole process of pharmaceutical product logistics, support the implementation
of food safety strategy and an important guarantee for building a healthy China.
The “14th Five-Year” Cold Chain Logistics Development Plan requires:
to improve the development level of refrigerated vehicles, such as accelerating
the development and manufacture of light and micro new energy refrigerated
vehicles and refrigerated containers
to promote new refrigerated vehicles, railway refrigerated vehicles, and
refrigerated containers; unitization of transportation vehicles, such as guiding
cold chain transportation enterprises to use standardized pallets, turnover
boxes (baskets), cages and other transportation units, as well as unitized cold
chain vehicles such as cold storage boxes and incubators, and strengthen the
circulation and sharing system of standardized cold chain vehicles
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construction
to improve the energy-saving level of cold chain logistics facilities, such as
improving the thermal insulation and flame retardant properties of thermal
insulation materials in cold storage, refrigerated vehicles, etc.
to increase the research and development and application of green cold chain
equipment, such as encouraging the use of green, safe, energy-saving,
environmentally friendly refrigerated vehicles and supporting equipment
facility
to emphasize R&D and application of cold storage turnover boxes, thermal
insulation packaging, thermal insulation covers, etc. that meet the
characteristics of cold chain logistics. Encourage the use of green, low-carbon,
high-efficiency refrigerants and thermal insulation consumables
In May 2018, “Technical Specifications for Verification Performance Verification
of Temperature Control Facilities and Equipment for Cold Chain Logistics of
Pharmaceutical Products” stipulates the verification of temperature-controlled
warehouses, temperature-controlled vehicles, refrigerators, incubators and temperature
monitoring systems involved in cold chain logistics of pharmaceutical products
Contents, requirements and operation points of performance confirmation.
In March 2021, implement the “National Food Safety Standard Hygiene
Specification for Food Cold Chain Logistics” (GB 31605-2020) mandatory national
standards to improve and standardize the quality and management level of cold chain
logistics services. The healthy and sustainable development of the cold chain logistics
market plays an important role in promoting and promoting.
2.2 Industrial Trends
With the improvement of people’s living standards in our country, our demand for
cold chain is increasing day by day, and the market scale is constantly expanding.
According to the “2021 China Cold Chain Logistics Industry Research Report”, from
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2015 to 2020, the market scale of cold chain logistics will increase from 179.2 billion
yuan to 360.4 billion yuan with CAGR 15%.
At present, the demand for food cold chain drives the growth of demand for cold
chain logistics, and various policies support the expansion of cold chain application
scenarios and customer groups. Taking the promotion of food and beverages to the cold
chain industry as an example, the demand for cold chain transportation of cold
beverages, quick-frozen food, dairy products and agricultural products in my country
is increasing. As the penetration rate of the Internet continues to rise, the demand for
fresh food e-commerce in online consumption is also increasingly prominent. In
addition, pharmaceutical cold chain, chemical cold chain, and electronic cold chain will
continue to drive the demand for cold chain logistics.
The history of the cold chain industry in developed countries has been more than
150 years, and the development of cold chain logistics is in a leading position in the
world, with a cold chain market size of $98.47 billion in North America, $78.94 billion
in Europe, and $17.65 billion in Japan in 2020. According to the relevant reports,
(1) the cold storage capacity per urban resident in China was only 0.13 cubic
meters in 2018, lower than the global average of 0.15 cubic meters and much lower
than 0.49 cubic meters in the United States.
(2) from 2015 to 2018, the cold chain circulation rates of Chinese fruits and
vegetables, meat and aquatic products were increased from 22%, 34% and 41% to 25%,
39% and 63%, respectively. The spoilage rate was controlled at 15%, 8%, and 10% or
less, However, there is still a gap with the average cold chain circulation rate of 80%-
100% in developed countries and the corrosion rate of less than 5%.
In the post-epidemic era, as the epidemic prevention and control becomes more
difficult and the epidemic of the covid-19 may become a new normal, “vaccine +
therapeutic drugs” will become the strategy for the prevention and treatment of the
covid-19. Vaccinations are accelerating domestically and globally. According to iFinD
data, as of the end of October 2021, the total number of covid-19 vaccine doses in the
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world was 7.087 billion doses, 2.274 billion doses in China, 424 million doses in the
United States, 112 million doses in Germany, 99 million doses in France, and 104
million doses in the United Kingdom. 1.063 billion doses in India and 276 million doses
in Brazil. The demand for biomedical cold chain driven by the covid-19 vaccination is
vigorously driven.
In cold chain logistics, the insulation performance of various containers will
directly affect the delivery distance of cold chain logistics, the quality stability of goods
and other key indicators, which directly affects the product circulation rate and loss rate.
The current cold chain insulation materials are mainly based on traditional polystyrene
and polyurethane, with the increasing demand for biological products, pharmaceutical
products, various types of vaccines, the transport distance is getting longer and longer,
the cold chain logistics in each link of the thermal insulation requirements are also
increasing.
At present, the cold chain insulation materials are mainly based on traditional
polystyrene and polyurethane, which have disadvantages such as large volume, short
thermal insulation time, and easy generation of pollutants in the production process.
It can be seen that the thermal conductivity of VIP board is only one tenth of the
traditional materials, which can meet the requirements of long time, extreme
temperature and long-lasting stable heat insulation, providing users with longer-lasting
stable heat insulation performance and larger storage and transportation space.
In addition, the VIP board has better thickness advantage than traditional organic
insulation materials, which can improve the space utilization rate of logistics containers
and storage space.
Combining the various advantages of VIP board, it is expected to gradually replace
traditional thermal insulation materials in the future.
2.3 Zisun in Cold Chain Transportation
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The key material of the VIP board is the VIP core material. The thermal resistance
coefficient, physical properties, stability and other core indicators of the VIP core
material determine the thermal conductivity and service life of the VIP board. The VIP
core material developed and produced by Zisun, relying on the excellent performance
of microfiber glass, has a unique pore structure, minimizes heat transfer caused by
conduction and convection, and has excellent performance. The uniformity of surface
density and thermal conductivity have reached the international advanced level.
3. Green Building Field
3.1 Related Policy
The Outline of the 14th Five-Year Plan and Vision 2035 proposes to promote new
urban construction, green building materials, assembled buildings and steel structure
houses, and build low-carbon cities, emphasizing the acceleration of green
transformation of development. The Ministry of Housing and Urban-Rural
Development defines green building as “high-quality buildings that save resources,
protect the environment, reduce pollution, provide people with healthy, suitable and
efficient use space during the whole life cycle, and maximize the harmonious
coexistence between man and nature”.
In September 2021, the “Opinions of the Central Committee of the Communist
Party of China and the State Council on Completely, Accurately and Comprehensively
Implementing the New Development Concept and Doing a Good Job in Peaking and
Carbon Neutralization”(Zhongfa [2021] No. 36) pointed out that vigorously develop
energy-saving and low-carbon buildings, Continue to improve energy conservation
standards for new buildings, and accelerate the large-scale development of ultra-low
energy, near-zero energy, and low-carbon buildings. Vigorously promote the energy-
saving renovation of existing buildings and municipal infrastructure in cities and towns
and improve the energy-saving and low-carbon level of buildings. Gradually carry out
building energy consumption quota management, implement building High efficiency
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and energy saving evaluation labels, and carry out low-carbon development
performance evaluation in the building sector.
The new version of “Green Building Evaluation Standards” (GB/T51356-2019)
establishes a new model of green building development that is “people-oriented,
emphasizing performance, and improving quality”, and proposes the index system of
“safety and durability, health and comfort, life convenience, resource conservation and
environmental livability”. Green building should take into account the climate
characteristics, geographic environment, natural resources and other factors, and adopt
appropriate exterior insulation system, exterior window insulation system, ventilation
system, natural lighting, solar energy and building integration, green building materials
and intelligent control and other technologies.
The Ministry of Housing and Construction, Development and Reform
Commission and other departments issued the “Green Building Creation Action Plan”,
the proportion of green building area in new buildings in urban areas reached 70% by
2022, star-rated green buildings continued to increase, the level of High efficiency and
energy saving of existing buildings continued to improve, residential health
performance continued to improve, the proportion of assembled construction methods
steadily increased, the application of green building materials further expanded, green
residential user supervision fully promoted, the people actively participate in the
creation of green building activities, the formation of a social atmosphere that advocates
green living.
3.2 Industrial Trends
According to the China Building High efficiency and energy saving Association's
China Building Energy Consumption Research Report (2020), the building operation
phase accounts for 21.7% of the total national energy consumption, and the building
operation phase carbon emissions account for 21.9% of the national carbon emissions.
According to the UCLA paper “Phase Change Composite Materials for Energy
Efficient Building Envelopes”, the energy consumed by heating and cooling needs in
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all types of commercial and residential buildings accounts for more than 30% of the
total energy consumed to operate the building.
The insulation performance of building walls in building operation has a
significant impact on building energy consumption and indoor comfort. The insulation
in the building reduces the dissipation of indoor heat to the outdoors, reduces the energy
consumption of building heating and cooling, and improves the comfort of the building.
The performance of building insulation materials is affected by the external
environment, for example, condensation of water vapor in cold and warm air in the
insulation layer can cause deterioration of materials, shorten service life, breed mold
and other adverse effects.
Common building insulation materials such as organic materials, inorganic
materials and composite materials, such as bead rock board, polystyrene particle board,
rigid foam polyurethane, rock fiber, mineral fiber, glass fiber, aerogel, etc., and fiber
glass has a good market prospect because of its excellent sound absorption and
insulation performance, light and soft, affordable and easy to obtain, biosafe.
Currently, high-end construction cotton is monopolized by excellent foreign
companies, such as Owens Corning and other companies.
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Owens Corning is a developer, manufacturer and marketer of insulation materials,
roofing systems and fiberglass composites, including building materials such as fiber
glass insulation, Formica extruded foam panels, Langstone synthetic stone exterior
materials and Silentex systems and other composites for solutions in the automotive
industry. (Taken from the official website of Owens Corning)
3.3 Zisun and Green Buildings
In order to break the foreign monopoly and focus on high quality of life, Zisun is
actively laying out dust-free residential air conditioning system and developing and
producing energy-saving materials for buildings. At present, Zisun’ team of comfort
residential dust-free air conditioning system is actively working to promote product
R&D in order to creates a comfortable residential environment that is energy-saving,
quiet and dust-free for many customers.
In terms of building energy saving, our VIP core material owns the characteristics
of good fire resistance, low thermal conductivity, long service life, low energy
consumption in the production process, low water absorption, light weight, and easy
construction, which can meet the requirements of green buildings for high-efficiency
thermal insulation and energy-saving of walls
Considering the heat and thermal insulation needs around green buildings, relying
on Zisun R&D strength and industry brand advantages in microfiber glass, Sichuan
Zaisheng has been set to develop and produce more energy-saving, environmentally
friendly and efficient high-end microfiber glass aiming to provide excellent building
insulation solutions for green buildings.
Zisun has developed a series of green building insulation products with micro glass
fiber as the core material. These materials have excellent physical properties, good
thermal conductivity, lightweight flame retardant, and low water absorption.
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It can be widely used in building insulation fields such as household appliances,
public buildings, agriculture and animal husbandry, and intelligent workshops. It can
also be used with prefabricated buildings, BIPV (Building Integrated Photovoltaic,
building-integrated photovoltaics), passive houses, NET-ZERO buildings (Net Zero
Energy Building, near-zero energy buildings) and other applications. Zisun will actively
expand and promote the application of green building insulation products and
contribute to the green building field.
4. Aviation and Aerospace
In order to ensure the temperature and comfort of the cabin in flight, the aircraft is
installed with an insulation layer between the skin and inner wall which aims to reflect
heat radiation or reduce heat conduction, realize the functions of heat insulation, noise
reduction and noise reduction in the cabin, improve cabin comfort and reduce aircraft
energy and fuel consumption.
4.1 Related Policy
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The CAAC in “The 14th Five-Year Plan for Civil Aviation Development” requires
the improvement of the industry green development policy management system and the
improvement of the civil aviation green development capability support system. It
emphasizes the application of enhanced new technologies and new materials in aircraft
and airports. In detail, the plan, for the green development of the civil aviation industry,
proposes specific guidelines which is the carbon dioxide emission per ton-kilometer of
transport aviation will be reduced from 0.928 kg in 2020 to 0.886 kg in 2035, and the
energy consumption per passenger at the airport will be reduced from 0.948 kg of
standard coal to 0.853 kg of standard coal.
4.2 Industrial Trends
According to the “Commercial Aircraft Market Forecast Annual Report (2020-
2039)”, China’s aviation market will receive 8,725 passenger aircraft with more than
50 seats in the next 20 years, with an average annual growth rate of the fleet of 4.1%
and an average annual growth rate of passenger turnover of 4.3%; China’s fleet will
reach 9,641 by 2039. Global air passenger turnover (RPKs) will increase at an average
annual rate of 3.73%, with 40,664 new aircraft expected to be delivered. By 2039, the
global passenger aircraft fleet is expected to reach 44,400 aircraft, which is the current
fleet (23,856 aircraft) 1.9 times. Routine maintenance and repair affect the safety of the
aircraft, and aircraft must be inspected according to strict laws and regulations. The
interval between inspections is determined by flight hours, flight cycles (landing and
takeoff times), and calendar hours. During the inspection and maintenance, the
aircraft’s acoustic and thermal insulation blankets are replaced and maintained
according to specific standards and actual conditions.
With the development of technology and the improvement of quality of life, people
have put forward higher requirements for the comfort of transportation, and cabin noise
is one of the indicators that passengers focus on. At present, although the airworthiness
clause does not impose mandatory restrictions on cabin noise, in order for a model to
gain stronger competitiveness in the market, it is necessary to strictly control the noise,
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vibration and other comfort indicators in the aircraft cabin, and make sure that it is the
optimal design is carried out under the premise of considering various factors.
Aircraft noise is mainly divided into two categories: cabin noise and external noise.
Reducing the noise in the cabin is mainly to improve the comfort of passengers, while
reducing the external noise is to meet the airworthiness requirements of the regulatory
authorities for the aircraft.
Generally speaking, the main noise of the aircraft comes from the aerodynamic
noise of the high-speed rotating engine blades and the surface of the aircraft. Reducing
engine noise has become an important task in aircraft design. A better aircraft shape
design helps reduce the noise generated when high-speed airflow rubs against the
surface of the aircraft. The thermal and sound insulation layer laid in the aircraft
fuselage also contributes to the reduction of cabin noise.
With the increasing global requirements for aircraft energy saving and emission
reduction, as well as the maintenance of newly delivered aircraft and existing aircraft，
the need of aircraft insulation mat will be also increased from the aspects of quantity
and performance.
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(Fig of Insulation of Aircraft, from Virginaustralia Airline)
4.3 Zisun in Aviation and Aerospace
Zisun high-efficiency and energy-saving product, sound and heat insulation
blanket, have obtained the test qualification certificate of Commercial Aircraft
Corporation of China Limited. This product is made of glass fiber through patented
processes such as modification and compounding, which has excellent performance of
light weight, flame retardant, waterproof, sound insulation, heat insulation, etc. It can
be used in aircraft cabin, ship cabin, subway and other applications with high
comprehensive requirements for sound insulation and heat insulation. We have obtained
the aerospace quality management system AS 9100 certification and has built an
acoustic laboratory with ASTM standard.
In addition, the high-silica fibers developed and produced by Zisun have been used
for a long time by international well-known aerospace companies, and have reached in-
depth commercial cooperation, which is of great significance to develop high-end
applications in aerospace. Zisun will continue to make efforts to provide more users
with high-quality localized products and services.
5. Emerging Application Areas
Achieving peak carbon neutrality and striving to build a clean, low-carbon, safe
and efficient energy system is a major decision and deployment made by the Party
Central Committee and the State Council.
Pumped storage and new energy storage are important technologies and basic
equipment supporting new power systems. They have great significance to promoting
green energy transition, responding to extreme events, ensuring energy security,
promoting high-quality energy development, and supporting the realization of climate
change goals.
5.1 Related Policy
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In July 2021, the “Guiding Opinions of the National Development and Reform
Commission and the National Energy Administration on Accelerating the Development
of New Energy Storage” requires that by 2025, the transformation of new energy
storage from the initial stage of commercialization to large-scale development will be
realized. The innovation capability of new energy storage technologies has been
significantly improved, the independent and controllable level of core technology and
equipment has been greatly improved, and great progress has been made in terms of
high safety, low cost, high reliability, and long life. The business model is basically
mature, with an installed capacity of over 30 million kilowatts.
New energy storage plays a significant role in promoting the process of carbon
neutralization in the energy sector. By 2030, full market development of new energy
storage can be achieved. The core technology and equipment of new energy storage is
independently controllable, and its technological innovation and industrial level are at
the forefront of the world. The standard system, market mechanism, and business model
are mature and sound, and are deeply integrated with all aspects of the power system.
The installed capacity basically meets the corresponding needs of the new power
system. New energy storage has become one of the keys supports for the carbon
neutralization of the energy sector. The “Opinions” provide detailed planning guidance
for specific plans, including coordinating the development of special energy storage
plans, vigorously promoting the construction of power-side energy storage projects,
actively promoting the rational layout of grid-side energy storage, and actively
supporting the diversified development of user-side energy storage.
5.2 Industrial Trends
The power system is a stable and balanced system. The energy storage power
station is to adjust and buffer between various power sources and power demand, which
is equivalent to the role of a reservoir, which can effectively improve the system's ability
to regulate voltage and frequency. Energy storage is critical in electricity consumption.
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With the continuous advancement of the parity process of new energy sources such
as wind power and photovoltaics, the installed capacity of new energy sources has
continued to increase. However, due to the intermittent and unstable characteristics of
new energy power generation, the accompanying energy consumption problem has
become increasingly prominent. energy storage power stations can be used to cut peaks
and fill valleys and improve power supply reliability. As "new energy + energy storage"
has become a development trend, the energy storage power station industry has ushered
in rapid development
At present, for urban energy storage systems, lead-acid batteries, lithium-ion
batteries, etc. are the main ways for electrochemical energy storage systems. VRLA
batteries have the advantages of excellent capacity stability, reliable low temperature
operation, high cycle charging capacity, low accident risk and low environmental
pollution risk, and maintenance-free. It has important applications and wide markets in
global urban energy storage systems
（Valve-Regulated Lead-Acid Batteries In Energy Storage Stations,
Fig from OFFGRIDENERGY）
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5.3 What Zisun Strives
One of the core materials of VRLA batteries is the battery separator made of micro
glass fiber. The battery separator is placed in the two pole plates of the battery to prevent
the positive and negative plates from contacting each other and cause a short circuit,
and adsorb the sulfuric acid electrolyte, which is the core material to maintain the long-
term, stable and high-efficiency function of the battery. Important indicators such as
microporosity, chemical stability, and mechanical strength of battery separators
determine the deep cycle life, charge acceptance and safety performance of VRLA
batteries.
Zisun produces battery separators, using the self-developed micro glass fiber as
the core raw material, which has excellent affinity with water, acid corrosion resistance,
temperature resistance, oxidation resistance, and has a large specific surface area and
high porosity. The liquid absorption speed is fast, and it has good mechanical strength
and is easy to process. Due to the excellent performance of the Zisun microfiber glass,
the battery separator products have extremely low impurity content, which ensures the
low self-discharge rate of the VRLA battery. We digs deep into the performance of
materials, grasps the market demand, and continues to promote the continuous
improvement of the performance and production capacity of our battery separator
products.
IV. The Business of Zisun During the Reporting Period
Under the impact of the epidemic of the century, the evolution of the century-old
situation has accelerated, and the instability and uncertainty of the external environment
have increased significantly. Zisun takes high-quality development as the starting point,
focuses on the needs of users for high-quality life, tempers our core competitiveness,
and strives hard to give full play to our resilience, cultivate new products, expand new
production capacity, and quickly respond to changes in the external environment and
market demand.
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By integrating the advantageous resources of the industry, making full use of the
accumulation of long-period technology practice for many years, and deeply exploring
the advantages of materials, Zisun independently researches and develops a wide range
of high-performance products with full coverage, and carries out innovation and
application exploration around the beforehand, processing, and afterwards phrase of
clean air. We are committed to providing professional materials and products in the
fields of “clean air” and “High efficiency and energy saving” by implementing a strong
industrial interconnection strategy and exploring R&D and applications. With a strong
research system, a large-scale production base, and sufficient capital resources, Zisun
has built a leading company in the clean air industry, providing “clean air” and “High
efficiency and energy saving” applications and solutions for industrial and residential,
medical, electronics, agriculture and animal husbandry, indoor public space, military,
aerospace, and other fields.
(1) Indoors Applications
TROX TECHNIK Gmbh. was founded in Germany in 1951 and now has 33
subsidiaries in 29 countries, 19 production sites and representative offices in over 70
countries. TROX China offers a complete range of products and systems for centralized
and stand-alone ventilation and air conditioning technology, including diffuser, air-
water system ends, air adjusting valves, fire and smoke dampers, tunnel industrial
valves, mufflers, filters, air conditioning boxes as well as stand-alone ventilation
systems and laboratory system solutions.
In China, TROX has provided variable air volume air conditioning systems (VAV
system) for the top three tall buildings in China (Shenzhen Ping An Financial Center,
China Resources Building, Shanghai Center Building), as well as for Beijing Daxing
Airport, Shanghai Pudong Airport, Hong Kong-Zhuhai-Macao Bridge Tunnel, the
Water Cube, National Museum of China, Suzhou Museum, Shanghai Disneyland,
China Central Television, One Shenzhen Bay, Zhujiang City and other famous
buildings in China. TROX China has a wide range of air conditioning products,
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including all-air systems, air-water air conditioning systems, stand-alone ventilation
systems and laboratory ventilation systems and multi-functional accessories for each
system, which can provide a wide range of choices for different indoor environments
and user needs.
Zisun and TROX will work together to develop a new generation of products,
determined to serve the low-carbon energy-saving society and high-quality urban and
rural life, to provide users with solutions that can run quietly throughout the year, ensure
high indoor comfort, and protect indoor air quality, to ensure that users are in constant
humidity, constant temperature, constant oxygen, constant cleanliness, constant quiet,
constant intelligence indoor environment throughout the year.
Based on years of precipitation in the field of “clean air”, relying on the Zisun
“Clean Air” materials and technology, the comfort and dust-free air conditioning
system has been launched. This system has many advantages such as low energy
consumption, quiet operation and dust-free, which can satisfy the public’s yearning for
a better life and ensure the “high-quality life”.
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The “dust-free “comfort residential air conditioning system refers to the use of
Zisun clean air materials and technologies to efficiently remove airborne particulate
pollutants and gas pollutants and ensure that there is no dust accumulation in the air
conditioning pipeline, and there is no need for pipeline ash removal and other
maintenance like the traditional central air conditioning system.
Compared with conventional fan-coil unit or the central air conditioning system
of multi variable units, Zisun dust-free comfort air conditioning system for residential
has a variety of advantages.
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Traditional home central air Zisun Comfort Air Condition
conditioning system System
A variety of Zaisheng Technology "clean
Air quality cannot be guaranteed, air" materials and technologies to
IAQ additional fresh air system or air efficiently remove particulate matter
purifier is required (such as PM2.5) and airborne pollutants
(VOCs, etc.).
The air outlet area of the air
conditioner is small, the wind speed The air supply temperature is uniform,
is high, and the temperature the air supply temperature difference is
Air
difference is large. small, and the air supply speed is low.
Distribution
The room temperature is very The room temperature and air speed
uneven and the air speed is are evenly distributed.
unevenly distributed.
There are fans at the end of the It is suitable for rooms with high
room, and the noise is comfort requirements. There are no
Acoustic
unacceptable for environments fans and moving parts at the end of the
Environment
with high comfort requirements, air conditioner, and the operation is
such as bedrooms. very quiet.
The room is dehumidified by the
The terminal runs in dry conditions
cold coil, and the condensed water
without generating condensed water;
is collected in the condensed water
the fresh air is accurately distributed to
pan, which is easy to breed
Hygiene Level each room after filtering,
bacteria, and it is difficult to
dehumidification, etc., to create a
maintain the furniture and interior
healthy and comfortable indoor
decoration. Fresh air volume cannot
environment.
be guaranteed.
There is lack of unified planning for There is organized ventilation, air flows
supply and return air,and no orderly from the comfort zone to the auxiliary
Air Flow
air pressure gradient established function zone, and controls the scent of
across the rooms. odor and humid air.
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(Fig of Zisun Residential Comfort & Dust-Free Air Conditioners)
Zisun residential comfort & dust-free air conditioners provide targeted solutions
for the needs of air quality, thermal comfort and noise levels in indoor environments.
1. Solution of Indoor Air Quality
Hong Kong of China is the first area to propose legislation on indoor air quality
(IAQ). According to the information provided by the Hong Kong Environmental
Protection Department. Humans need to breathe every second and clean air is very
important for our health. We spend most of our time indoors in our homes, schools,
offices and shopping malls. A polluted indoor environment can cause headaches, itchy
eyes, breathing difficulties, skin irritation, vomiting and fatigue. Children, the elderly
and people with respiratory or heart conditions are more vulnerable to indoor air
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pollutants. Improving indoor air quality can improve the health, productivity and
psychological well-being of indoor populations.
Indoor air pollutants originate from the external environment and indoor activities.
As shown in the figure below, the composition of indoor air pollutants in rooms with
different external environments and different functions is different. If the air
conditioning system does not have the function of “clean air”, polluted outside air will
be continuously introduced into the room, and many pollutants in the room cannot be
discharged, thus deteriorating the indoor air quality.
（Picture from International WELL Building Institute）
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Zisun clean air materials are empowered to efficiently purify the indoor air, remove
particulate pollutants, gas pollutants, and ensure individual fresh air volume. According
to specific design requirements, constant air volume variable air volume terminals are
used to control different rooms and fresh air volume accurately and automatically in the
area.
2. Solution of Thermal Comfort
Thermal comfort is a state of mind and an expression of people’s ideological
satisfaction with heat and cold. Dr. P.O. Fanger proposed an evaluation index
characterizing the human thermal response, and this index represents the average value
of the hot and cold sensations of most people in the same environment. The factors
influencing thermal comfort include thermal radiation, heat and cold, humidity, blowing
sensation, clothing, and metabolism, of which the first four indicators are directly
related to the air conditioning system.
Based on the thermal comfort standard EN ISO 7730, the indoor comfort level is
evaluated by the airflow dissatisfaction DR, which is related to the wind speed,
temperature, and vortex intensity in the area where personnel stay. The comfort level is
divided into three grades A, B and C, corresponding to DR values of 10%, 20% and
30%. When the grade is B, it indicates that more than 80% of the personnel are satisfied
with the indoor environment. TROX has four different air conditioning technologies,
based on various technical principles such as Kanda effect, thermal plume effect,
natural convection and radiation cooling, to meet users’ thermal comfort needs, analyze
airflow distribution characteristics, optimize indoor airflow organization by optimizing
air delivery, increase indoor radiant heat transfer surface, ensure uniform indoor air
speed and temperature distribution, and control the range of vertical temperature
gradient fluctuation and cold air sensation.
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（Picture from Simulationhub）
3. Solution of Indoor Noise
According to the “Burden of Disease due to Noise Pollution Report” released by
the World Health Organization, noise is second only to air pollution in terms of harm
and has become an invisible killer affecting human public health. Studies have shown
that prolonged exposure to a noisy environment may lead to delayed reactions,
increased annoyance, and harm to the human cardiovascular system, endocrine system,
and nervous system. Therefore, a good acoustic environment is vital, which not only
enhances people’s attention, but also reduces mental stress and improves sleep.
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No fans or other mechanical equipment at the end of the room to ensure no sense
of cold air, no noise and temperature balance in the room, and silent operation all year
round. The operation of ordinary air conditioning system generates airflow noise,
radiation noise and over-flow noise, which will interfere with the hearing of indoor
people and affect the comfort of life.
(Picture from TROX)
In accordance with ISO 3741, Trox has built the world’s most advanced acoustic
laboratory. The lab is an irregular structure with an overall suspended partition design,
which accurately measures airflow noise, radiated noise and insertion loss of HVAC
equipment by the reverberation method, and combines the measured sound power with
the evaluation standard ARI 885 to provide NC noise values for the indoor occupancy
area.
The diffuser, valves and other products of Zisun residential comfort & dust-free
air conditioning products conform to the aerodynamic principle to avoid airflow noise;
products such as mufflers and flow-overs are made of environmentally friendly
materials and have excellent noise reduction functions; products are designed with no
moving parts , to achieve a good quite effect.
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Zisun residential comfort & dust-free air conditioning can achieve low air speed,
low temperature difference, low noise and mild air supply, ensuring no cold air feeling,
no noise and balanced temperature in the room, and a variety of product appearance to
meet the needs of various interior design styles, which can provide users with a state of
“wind and sunshine”.
1.Variable air volume system
The residential comfort dust-free air conditioning system has a unique variable air
volume adjustment system, which can be adjusted intelligently according to user needs
through the change of air supply volume to achieve room cooling and heating
adjustment; there is no need to install fan parts indoors again, combined with reasonable
air outlet arrangement to ensure orderly indoor airflow organization and low operation
noise; to meet the requirements of different air supply methods, and can achieve
independent temperature and humidity control in each room.
The VAV system ensures that the direction and flow rate of airflow in the room are
carefully calculated to avoid the sense of blowing wind, so that the house can ensure
micro-positive pressure relative to the outdoors and avoid the outside polluted air or
humid air from directly penetrating into the room, and also realize the flow of indoor
air from the comfort area to the auxiliary function area, and control the odorous air and
humid air in the room can be discharged in an organized manner and not scattered.
TROX provides residential RSD diffuser with special blade structure, through the
airflow simulation and experiment, comprehensive air supply, air supply angle and
installation height and other factors, to achieve the best air supply, to avoid cold air
sense blowing sense, High level of user comfort. The series has exquisite appearance,
various styles, easy to decorate with, to meet the personalized aesthetic needs of users.
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2. HEPA Purification
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Zisun residential comfort and dust-free air conditioning system has been
customized with Zisun “clean air” materials, technology, equipment, to ensure that the
indoor air quality into the excellent, to eliminate particles, aerosols, germs and other
pollutants, to achieve HEPA (99.97%@0.3um) above the purification effect.
The common pipes of traditional central air-conditioning systems accumulate dust
and produce a breeding ground for harmful microorganisms such as bacteria, mold, etc.,
resulting in secondary pollution of indoor air; Zisun residential dust-free and
comfortable air-conditioning system pipes are protected by HEPA level to keep dust-
free and clean. There is secondary pollution.
3. Low Operating Energy Consumption
Zisun residential comfort and dust-free air conditioning system replaces the
traditional HVAC system's cooling and heating function, floor heating and fresh air
system and other systems.
During the construction stage, the system was upgraded to reduce the floor height
occupation of the house and save the indoor floor height for users.
In the actual use stage, the system not only provides users with a high-comfort
indoor space, but also consumes less energy than traditional multiple systems.
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(Project scene of Zisun residential comfort and dust-free air conditioning system)
In a comprehensive manner, the Zisun dust-free and comfort air conditioning
system can run all year round and is supported by an intelligent control system to ensure
that the user's indoor environment maintains the following environment all year round.
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Indoor temperature distribution uniformity: set temperature plus or minus 0.5K
Indoor wind speed distribution uniformity: 0.2m/s to 0.3m/s
Noise level 40cmh/person
PM2.5 <25u/m3
Zisun residential dust-free and comfort air conditioning system can be organically
combined with its thermal insulation glass product line to create a comfortable and
pleasant living environment, excellent indoor air quality, and near-zero energy
consumption. Considering the needs of building layout, orientation, shape factor and
use function and the climatic conditions of the building, the thermal insulation glass
product is used in the non-transparent maintenance structure of the building to optimize
the overall air tightness of the building and improve the thermal insulation performance
of the building, reduce indoor and outdoor energy transfer, reduce building cooling and
heating energy consumption.
As the construction of ecological civilization in China continues to progress, the
concept, awareness and demand for green buildings are gradually increasing throughout
the society. Zisun will follow the direction of the policy, pay close attention to
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technology improvement, increase product capacity, and continuously meet the market
demand for green building.
(2) Mobile Space Field Such as New Energy Vehicles
Zisun has set up Chongqing Langzhirui New Material Technology Co., Ltd. to
focus on the research and development of high-performance, long-life, anti-
biochemical weapons-grade automotive air conditioning filter element, which can
effectively filter fine particles, gas pollutants, as well as bacteria, viruses, dust, aerosols,
plant pollen, mold spores, dust mite excrement, etc. The filtration effect of particles
≥0.3μm can reach 99.97% and above, allowing drivers and passengers to enjoy clean
and healthy air in the car. It can also prevent dust from accumulating inside the air
conditioning system and prolong its service life.
The high-efficiency PTFE membrane products produced by Baoman New
Materials, a subsidiary of Zisun, have been adopted by well-known international
companies and applied to the air-conditioning filter elements of automobile cabins,
providing stable, efficient and reliable “clean air” guarantee for many users.
We will persistently explore the application prospects of various “clean air”
materials and technologies in the field of new energy vehicles, and strive to provide
“clean air” cabin environment protection for new energy vehicle users worldwide.
(3) Animal Husbandry
Zisun has developed a special filter material with high efficiency, low resistance,
high temperature and high humidity resistance for 0.3μm particles with a filtration
effect of more than 94%, which is the leading level in the world. Our product index is
at the international level, which provides reliable application solutions to effectively
reduce the spread of virus and solve the key technical problems of preventing and
controlling African swine fever.
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(Filter for Pig House)
According to users’ feedback, Zisun fresh air filter material and equipment for
livestock industry have been put into use, which has improved the air quality inside the
pig house, accelerated the growth rate of pigs and improved the survival rate of pigs.
In 2021, Zisun will continue to actively explore and provide “clean air” solutions
and quality services to high-end domestic pig suppliers. In the first half of 2021, U-air
was awarded the title of Grade 5A supplier of Shepherd Plains, and became the supplier
of Xinda Animal Husbandry, and cooperated with Guangxi Nongken Group and Yurun
Group.
Affected by the downstream pig cycle expansion progress, the new air application
project of sub-pig barn slowed down during the reporting period. Zisun will continue
to make efforts to promote the application of clean air core products in the field of
animal husbandry, actively promote our products and services through various ways
such as industry exhibitions, provide materials and equipment for different customer
needs, and strive to improve our profitability.
(4) Advanced Manufacturing Fields (Semiconductors, Panels, Precision
Instrument Processing, Biomedicine, And Medical Health etc.)
For high-end manufacturing fields such as semiconductor, panel, precision
instrument processing, biomedical, medical and health care, etc., different links in their
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production activities have different requirements for "clean air". The typical application
requirements for "clean air" are clean rooms.
(Fig of Typical Clean Room Structure)
A cleanroom is a controlled environment where pollutants like dust, airborne
microbes, and aerosol particles are filtered out to provide the cleanest area possible. A
cleanroom can be classified into different levels of contamination depending on the
amount of particles allowed in the space, per cubic meter. Cleanrooms also control
variables like temperature, air flow, and humidity. Most cleanrooms are used for
manufacturing products such as electronics, pharmaceutical products, and medical
equipment.
Cleanrooms work to remove pollutants, particles, and contaminants from outside
ambient air. Outside air is first circulated to a filter system. The filters (either HEPA or
ULPA) then clean and decontaminate this outside air according to their specifications.
The filtered air is then forced into the cleanroom. Additionally, contaminated air within
the cleanroom is forced outside the room by registers, or it is recirculated back into the
filters, and the process restarts.
There are a wide variety of reasons that a company may need a cleanroom. for the
manufacture of something is easily affected by contaminants or particles in the air.
Some common industries that regularly use cleanrooms, such as: high-end
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manufacturing, Research facilities, pharmaceutical production, medical laboratories,
electronic part production, aerospace industry nanotechnology production, optics and
lens manufacturing, military applications.
Zisun has successfully provided “clean air” products and solutions for outstanding
enterprises in the industry such as BOE, CSOT, SMIC, Xiamen Tianma, Hefei Jinghe,
and ISV. Zisun will continue to dig deep into material properties and continuously
improve product quality to meet the increasing application needs of advanced
manufacturing fields such as semiconductors, panels, and precision instrument
processing.
V. Analysis of Core Competitiveness in the Reporting Period
Zisun insists on “team building + innovation” to lead the development of the
enterprise, consolidate the moat of the enterprise, cast the brand of “clean air” and refine
the core competitiveness. Our core competitiveness is subdivided into five major
advantages: technical advantages, intelligent manufacturing advantages, overall R&D
advantages, brand advantages and management advantages.
(1) Technology Advantage
Zisun has two research institutes, Chongqing Fiber Research Institute and
Chongqing Paper Research and Design Institute, relying on the “National Enterprise
Technology Center”, making full use of years of long-period technical practice
accumulation, constantly increasing investment in research and development, focusing
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on intellectual property protection and quality system construction, and consolidating
the enterprise technology.
As of the date of this report, Zisun has obtained 151 patents, including 68 invention
patents, 75 utility model patents and 8 design patents; in recent years, we has
continuously increased its investment in R&D, and invested 97.7947 million RMB in
R&D in 2021, an increase of 31.14% compared with 2021; we has strengthened the
construction of professional R&D and design team, and actively introduced
professional technical talents from home and abroad to reserve technical strength for
the fields of “Clean Air” and “High Efficiency and Energy Saving”, overcome technical
barriers, and develop materials and products that can be applied to different
environments, conditions and requirements. Zisun strengthens the construction of
professional R & D design team, actively introduces professional technical talents from
home and abroad, reserves technical strength in the field of “Clean Air” and “High
Efficiency and Energy Saving”, tackles technical barriers, develops materials and
products that can be applied to different environments, different conditions, and
different requirements, and promotes the enterprise in the field of “Clean Air” and
“High Efficiency Energy Saving”. We will promote the development of technology and
open up new application markets.
(2) Intelligent Manufacturing Advantage
Zisun continues to improve the level of intelligent and smart manufacturing in the
production workshop by introducing intelligent production equipment, transforming
the automated production system and creating a paperless workshop, using unique
processes for green transformation and improving the efficiency of production kiln
melting. The construction of intelligent factory not only effectively reduces the
production loss, reduces the labor cost elements on the development of enterprises, and
stabilizes product quality, but also significantly improves the production efficiency of
enterprises, which lays a good foundation for the Company's Continuous Steady and
Healthy Development.
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(3) Collaborative R&D Advantage
Zisun continues to take advantage of the overall thinking of the clean air industry,
industrial systems research and development to serve the needs of clean air afterwards,
during and beforehand.
Zisun has strong advantages in research and development of industrial systems.
We are a high-tech enterprise with a variety of core filtration materials and technologies,
including high-performance glass fiber filter media, low-resistance melt-blown filter
media, high-efficiency PTFE, micro-electrostatic filtration materials, nano-filtration
materials (under research and development) and other filtration materials and
equipment. Relying on two research institutes and overseas R&D platforms,
professional R&D and design team, independent R&D system and abundant R&D
achievements, we strive to grasp new demands and trends in the industry. Zisun
continues to integrate a variety of materials and technologies to provide customized
products for different application scenarios.
(4) Brand Advantage
Taking “Enjoy clean air with Zisun Tech” as the brand strategy, Zisun has the
advantage of leading the industry brand status, priority benefit industry demand
explosion. We take “Clean Air” as its mission and serves global high-quality customers.
Its products cover the core material end, intelligent manufacturing end and user service
end of clean air, forming a unique business model with leading product scale, quality,
and technology in the industry.
(5) Management Advantages
Taking “Enjoy Clean Air, Use Zisun Tech “as the brand strategy, has the advantage
of leading the industry brand position, priority benefit industry demand explosion.
Zisun takes “Clean Air” as mission, and serves global quality customers, with products
covering the core material end, intelligent manufacturing end and user service end of
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clean air, forming a unique business model with leading product scale, quality and
technology in the industry.
The initial grant portion of the 2019 Stock Option Incentive Plan formulated
entered the second exercise period and the reserved grant portion entered the second
exercise period. Zisun repurchased 1,124,353 shares from the secondary market in 2020
has been used for the employee stock ownership plan, covering the core technical staff
of the company.
The implementation of Ziusn Employee Option Incentive Plan and Employee
Stock Ownership Plan effectively enhances the happiness and sense of belonging of
employees, the cohesion and centripetal force of Zisun, fully mobilizes the enthusiasm
of the middle and senior management and key employees, closely combines the
interests of middle and senior management and core employees with those of the
company and promotes the sustainable development of the company.
VI. Main Business Operations During the Reporting Period
The global economic and political environment is changing, and the epidemic of
Covid-19 continues to infest. In 2021, we will insist on focusing on our main business,
taking “high quality development” as the starting point, responding efficiently to the
market demand for “Clean Air” And “High Efficiency And Energy Saving”, continuing
to refine our three major capabilities of “continuous cost reduction, continuous R&D
investment and ecological development”, promote the construction of new production
capacity, continue to invest in research and development, and insist on new product
development.
(1) Analysis of The Main Financial Data of The Company
During the reporting period, Zisun realized an operating income of RMB
1,619,710,800. The main business income was RMB 1,590,257,500, a decrease of
RMB 274,307,500 compared with the same period of last year, or 14.71%, of which the
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clean air segment operating income was RMB 896,106,500, a 29.55% decrease
compared with the same period last year, and the high-efficiency energy-saving
segment operating income was RMB 694,151,100, compared with last year, an increase
of 17.15% over the same period. Zisun realized a net profit attributable to the parent
company of RMB 249,471,400, and net profit attributable to the parent company of
RMB 225,618,200 after deducting non-recurring gains and losses.
1. Description of the Decrease in Operating Income
In 2020, the sudden outbreak of Covid-19 in China, Zisun quickly responded to
the demand of the government and users and promptly adjusted the company’s strategy,
relying on the technical strength and production capacity of its subsidiary Shenzhen
Zhongfang melt-blown materials, and utilized its clean production workshop to produce
a batch of melt-blown materials for individual protective masks and multi-series
personal protective masks. The operating revenue of our masks and melt-blown
materials in 2020 was RMB312,578,000, accounting for 16.76% of the main business
in the period.
In 2021, as the global ecvid-19 continues, the supply chain and production
capacity of other domestic companies have been restored and melt-blown materials and
personal protective materials are no longer in short supply. Our masks and melt-blown
material operating revenue was $33,534,100, a significant decrease from the same
period last year, accounting for only 2.10% of the main business revenue for the period.
The decline in our operating income in this reporting period is mainly due to the
decrease in demand for masks and melt-blown materials. In addition, due to the multiple
influences of industrial policy and consumption cycle of pig breeding industry, the
demand for fresh air for pig barns from domestic livestock breeding industry customers
has slowed down since the second quarter of 2021, and thus the demand for filter
materials and equipment for fresh air for pig houses has decreased. For the whole year
of 2021, we achieved operating income of RMB100.6123 million from the sales of filter
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materials and equipment for fresh air in pig houses, a decrease of RMB 136.9302
million.
Combined with our business strategy, product structure, market demand and other
comprehensive situation, after deducting the masks and melt-blown materials for
operating income analysis, operating income of Zisun in 2020 is RMB 1,551.968
million and in 2021 operating income is RMB 1,586.1767million. As shown in the chart
below, reviewing our operation from 2015 to 2021, our main business remains for
continuous growth.
(Fig of the revenue without masks and melt-blown materials)
2. 2021 Revenue Analysis
In 2021, the sales revenue of “Clean Air” products was RMB 896.1065 million,
accounting for 56.35% of the main business revenue, a decrease of 11.87% compared
with the same period last year. The main reason is that the revenue of melt-blown
materials and masks drop significantly in 2021. For the more, Clean Air Equipment has
been affected by factors such as the fluctuation of the construction cycle of downstream
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users whose sales revenue is RMB 397.068 million with a decease of 10.41% from
2020.
In 2021, “high-efficiency and energy-saving” products achieved sales revenue of
RMB 694.1511 million, accounting for 43.65% of the main business revenue, an
increase of 11.87% over the same period last year.
Benefiting from the demand for “High-Efficiency and Energy-Saving” products
in many application fields around the world, our VIP materials and AGM separators
continue to have strong demand. Among them, Chongqing Paper Research Institute
efficiently completed the relocation of the AGM separator production line and actively
put it into production. In 2021, the AGM separator shipments reached 8,137.11 tons, an
increase of 18.06% compared with it in 2020.
3.The Superimposed Impact of The Global Shipping Situation on Revenue
and Profits
The Ministry of Transport pointed out that, due to the impact of multiple factors,
the demand for international container transport has been released centrally since June
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2020, and the ship capacity of major liner companies has been basically fully committed
to the market except for the necessary repair and maintenance. With the spread of the
overseas Covid-19, ports in the United States, Europe and other places have continued
to experience severe congestion since the fourth quarter of 2020, resulting in chaos and
reduced efficiency of the international logistics supply chain, extensive delays in ship
schedules, and seriously affecting operational efficiency. The Suez Canal blocking
incident and the outbreak of the Covid-19 in South Asia such as India since March 2021
have exacerbated the contradiction between supply and demand in the logistics supply
chain. The tight shipping capacity and rising freight rates have become a global issue.
During the reporting period, the freight-to-value ratio of the export products
increased due to the rise in shipping costs. Zisun actively took various ways to cope
with the situation, including multiple coordination of container supply, price adjustment
and delivery method adjustment, etc., and made every effort to protect the export supply
chain and reduce the shipping cost. However, in the context of the sharp rise in global
sea freight, the export orders have been delayed and the shipping cost was still higher
than the same period last year.
The main export products are “Clean Air” materials and “High Efficiency and
Energy Saving” materials. During the reporting period, our overseas sales revenue
amounted to RMB 535.0392 million, a decrease of 3.11 % compared with the same
period last year.
(2) The Proposed Fundraising and Investment Projects Are Progressing
Smoothly, The Product Production Capacity Continues to Expand
Our board of directors reviewed and approved the “Proposal on the Company’s
Public Issuance of A-Share Convertible Corporate Bonds in 2021” in February 2021
and has raised funds to invest in the construction project with an annual output of
50,000 tons of high-performance ultra-fine fiberglass media., 8,000 tons of CLEAN
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AIR filter material construction project and clean air filter material upgrade project.
During the reporting period, the construction of the proposed capital raising
project advanced as scheduled, production equipment was in place as scheduled, and
the overall construction of the proposed capital raising project went smoothly. After the
completion of the construction of the proposed project, it will help to meet the growing
customer demand and consolidate the security guarantee of production capacity.
(3) Continuous Expansion of Products and Application Fields
Zisun gives full play to its technical, R&D and production advantages in the fields
of “clean air” and “high efficiency and energy saving” materials and continues to lay
out a variety of new products and new applications.
During the reporting period, t Zisun actively expanded the scope of application of
its products around “clean air” and “high efficiency and energy saving” applications
through various means such as xx and “introduction” and strived to take the lead in the
policy wave of “high-quality production” and “high-quality life”.
Zisun digs deeply into the material characteristics of micro fiberglass fiber and
develops and produces fiber glass filter media for oil and gas separation and hydraulic
filtration, expanding the application of the products in petrochemical, industrial
equipment and other scenes.
Zisun has explored the performance of PTFE membrane and expanded the
application of high efficiency PTFE membrane from high-end manufacturing
applications to household appliance products. During the reporting period, our PTFE
membrane has opened application scenarios in high-end sweeping robots, vacuum
cleaners and other household appliances, and the moisture-proof applications of 5G
communication base station.
The cooperation between Zisun and MP (Microporous LLC), a world-renowned
battery compartment company with deep channel resources and brand awareness in the
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European and American markets, is progressing smoothly. Zisun started cooperation
with MP in May 2019, and the Zisun AGM separator products have achieved excellent
test results and gained recognition from users after two years of severe battery cycle
testing. During the reporting period, Zisun has supplied AGM separator products to MP
in batches.
During the reporting period, Zisun Platform welcomed new members and
established Chongqing Langzhirui New Material Technology Co., Ltd., invested in
Sichuan Zisun Building Energy Saving Technology Co., Ltd., and cooperated with
Insulation Technology Investment Co., Ltd. to invest in Sichuan Youpusi New
Materials Co., Ltd., cultivating products such as “clean air” and “high efficiency and
energy saving”. Sichuan Zisun focuses on the application of micro fiberglass products
in building energy conservation and thermal insulation, serving the green building
market; Sichuan Youpusi deeply explores the synergistic application of micro fiberglass
media and aerogel, which has great prospects in the fields of thermal insulation, energy
saving and insulation.
(4) Adhere To the Driving Force of High-Quality Development and High-
Quality Life
Achieving carbon peak and carbon neutral is an extensive and profound economic
and social systemic change, facing unprecedented difficulties and challenges. Under
the background of the carbon policy, Zisun continues to dig deeper into the product
performance and improve “internal strength” from management, technology,
production and other aspects to maintain a continuous leadership in the industry.
Zisun has maintained “high quality development” for many years and obtained
certain technical and economic achievements. We are deeply aware that the results of
our high-quality development will continue to be efficiently transformed into services
for the people’s “high quality of life”, which is the driving force for our continuous
advancement and help for our continuous development.
The “high-quality development” of the people is inseparable from “clothing, food,
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housing and transportation”. Zisun “clean air” and “high-efficiency energy-saving”
materials and technologies continue to serve various application fields and continue to
open new application fields. For example, “clothing” involves industrial production of
“Clean Air”, “food” involves “Clean Air” and “High Efficiency and Energy Saving” in
agriculture and animal husbandry, and “housing” has a broader scope, ranging from
indoor air quality to the pursuit of low energy consumption for building insulation and
thermal insulation, and “transportation” is the various application of aircraft, new
energy vehicles and other transportation tools.
Zisun will continue to put its various strengths to the service of “high quality of
life” with firm determination and strive to continue to gain more and better
achievements in the field of “clean air” and “high-efficiency energy-saving”.
Zisun adheres to the organizational structure of the platform transformation of “life,
symbiosis, and promotion”, focusing on the future, actively exploring and utilizing the
digital technology of the times, continuously optimizing and iterating on the existing
production methods and product quality, improving production efficiency, while
sharing information, resources and technology with the industry, release huge growth
space for the industry, and give full play to the advantages of symbiosis. The layout of
the company is centered on the core line of leading enterprise development with science
and technology and laying out the Clean Air industry.
(5) Forge Ahead with Cooperation and Share Platforms
5.1 Zisun Purification
During the reporting period, Zisun Purification introduced a new team of
comfortable air conditioning, equity participated in Dongxi Home Furnishing. In order
to further extend the industrial chain, Zisun launched fresh air purification, cooling and
heating, dehumidification and humidification, VAV intelligent monitoring, and
intelligent control in one whole house comfort system for the high-end residential
market. Combined with the rich “Clean Air” materials, We strive to create energy-
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saving, dust-free, quiet, oxygen-rich, beautiful, intelligent management of high-quality
whole-house comfort systems for users, and strive to seize the trend of consumer
upgrading, the rapid development of the Internet of Things, promote the development
of clean air, to the user side of the development, to provide services, to find the right
corporate positioning and competitive advantage, and build a system integration
ecology in the field of residential comfort.
During the reporting period, the dust-free air conditioning team of Zisun
Purification was aggressive and had completed numbers of projects on the ground,
which were well received by users.
5.2 U-Air
During this reporting period, U-Air Environment actively explored customers in
the semiconductor field and provided services to leading companies in the
semiconductor industry, including the Huizhou Xinli project, the Hefei Jinghe project,
the Xi’an Yiswell project and the Hangzhou Silan project.
U-Air Environment also works for Beijing Kehua photoresist production line
transformation project, Riyuexin semiconductor project, Shantou ultrasound project,
North Huachuang project, Sunking Asia Pacific semiconductor project, Yuexin Phase
II project, Nansha Lianjingxin Energy Phase I Projects, Hefei Tongfu Project, Xuzhou
Zhineng Semiconductor Project, Guangdong Pilot Project, Nantong Shennan Circuit
Project, Jiangyin Changdian Project, Deqing Advanced Chip Project, Shenyang
Xinyuan Project, Shanxi Zhongke Jingdian Project, Star Zhongda Semiconductor
Project, INFI Semiconductor, Dongguan Zhongtu Semiconductor, Shandong Yuneng
Project, Dongguan Huawei Project, Jiasheng Semiconductor, Zhongkexin Times
Project, Jingxin Semiconductor Project, Shanghai BYD Project, Qixing Huachuang
Project, Sanmenxia Zhongkexin Times Project. U-Air has provided “clean air” products
and solutions for more than 60 well-known domestic semiconductor projects
throughout 2021.
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At the same time, U-Air Environment actively cooperates with the laboratory
projects of major universities, such as the Integrated Circuit Center of Tsinghua
University, Hefei University of Science and Technology Laboratory, Zhejiang
University Ningbo Campus Laboratory, etc.
Electronic panel industry: During this reporting period, with years of deep
cultivation in the air cleaning industry, U-Air Environment continued to provide
products and services for BOE’s major projects. Up to now, U-Air Environment has
served BOE for more than ten major projects one after another. U-Air has also
performed well in the TEGA G8.5 ultra-thin glass substrate deep processing project,
the bid for Xi’an Yiswei Silicon Industrial Base project, the Shucheng Jingzhuo project,
and the bid for Xiamen Tianma’s 6th generation flexible AMOLED production line
project, contributing a variety of CLEAN AIR solutions for customers. U-Air has won
the bids for Huaxing Optoelectronics Huizhou and Guangzhou (T9) projects and
Shanghai Hehui Phase II project.
Agriculture and animal husbandry field: U-Air continued to provide pig barn fresh
air system solutions and products for Shepherd Group. In the first half of 2021, U-Air
was awarded the title of Grade 5A supplier of Shepherd Group. During this reporting
period, U-Air became the supplier of Xinda Herding and cooperated with Guangxi
Nongken Group and Yurun Group.
Biomedical field: U-Air provided biosafety equipment and BIBO equipment for
Liaoning Chengda Bio, which specializes in the R&D, production and marketing of
human and veterinary vaccines, and Jinhe Youben P3 large animal room project. 2021,
U-Air also won the bidding for the annual clean room replacement project of Huadong
Pharmaceutical, the GMP plant purification project of Boshengji cell production base,
the Haining Sibai Bio project, the Yunnan Baiyao Shanghai International Center Project
and Shenyang Sanjiu Pharmaceutical Project.
Chemical filtration field: U-Air has provided clean air to many data centers to
protect customers’ data security. U-Air provided chemical filtration equipment for the
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data room project of Xinhua Life Insurance Hefei Backup Center.
U-Air has provided clean air solutions for many pulp and paper companies,
including Nine Dragons Paper, Jinhai Pulp & Paper, Pingsheng Paper, Dongguan
Taichang Paper, Jingui Pulp & Paper, and Asia Pacific Semper, etc. Golden Light Group
is a large international paper manufacturing group, and the chemical filter provided by
U-Air provides clean air for its automated control room to ensure stable production in
the pulp and paper industry.
U-Air provides chemical filters for AMOLED factories such as Nanjing
Zhongdian Panda, Jingwang Electronics, China Construction Electronics, Xiamen
Meiri Fengchuang, Shanghai Hehui Optoelectronics Co., Ltd., Huaxing T4
Optoelectronics Technology Co., Ltd., etc., for the production process of customers,
and provide CLEAN AIR to our customers’ production processes, which greatly
improves product yields. The chemical filters provided by U-Air also perform well in
the semiconductor field, actively adding to the development of the national
semiconductor industry and breaking the technological bottleneck of the industry. U-
Air has already provided chemical filters for Hefei Jinghe Semiconductor Phase II
project.
U-Air’s chemical filtration equipment serves customers in the petrochemical
industry, including Sinopec, Fujian Petrochemical, Xianglu Petrochemical, Qingdao
Steel, etc. In the manufacturing industry of safety glass, typical customers of U-Air’s
chemical filtration equipment include Wuhan Saint-Gobain. In the data center field, U-
Air’s chemical filtration equipment has served the Bank of China, China Clearing
House, etc.
Emerging application areas: U-Air keeps continues to expand customers in new
application areas. During the reporting period, U-Air actively cooperated with JA
Technology, a leading enterprise in the photovoltaic industry, to provide guarantee for
a clean production environment for solar cells.
5.3 Shenzhen Zhongfang
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During the reporting period, Zisun successfully integrated the majority minority
shareholding of Shenzhen Zhongfang, and shareholding ratio increased from 73.8672%
at the beginning of the period to 98.32%. This equity integration is conducive to further
focus management and effectively improve production efficiency. Shenzhen Zhongfang
will continue to focus on the development of the demand for CLEAN AIR, vigorously
promote the development of melt-blown materials, chemical filtration materials and
products in the high-end market, and strive to build the industry’s leading chemical
filtration materials production base.
5.4 Chongqing Paper Research Institute
Chongqing Paper Research Institute has efficiently completed the relocation of the
production line of the “AGM separator construction project”, grasped the market
demand, and continued to supply AGM separator products for mainstream battery
manufacturers such as Exide, Narada Power, Chaowei, and Tianneng. After 2 years of
battery deep cycle testing, Chongqing Paper Research Institute’s AGM separator
products have been approved by Microporous, LLC, a U.S. company, and have been
supplied in batches during the reporting period.
Chongqing Baoman New Material Co., Ltd., a subsidiary of Chongqing Paper
Research Institute, has developed many new high performance products, such as U-
class ultra-high efficiency and low resistance PTFE filter media, high efficiency and
washable PTFE filter media for vacuum cleaners, low resistance and washable PTFE
filter media for household air purifiers, precision liquid filtration filter media, high-end
dust removal PTFE filter media, PTFE filter media for atmospheric testing machines,
etc.
5.5 Xuanhan Zhengyuan
Xuanhan Zhengyuan focuses on the R&D, production and manufacturing of high-
efficiency and energy-saving products such as micro glass fiber and vacuum insulation
panel core material and has the largest production capacity of micro glass fiber in Asia.
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In 2021, Xuanhan Zhengyuan promotes the "annual output of 50,000 tons of high-
performance ultra-fine micro glass fiber". The project has been implemented on
schedule, which fully reflects our management advantages.
Xuanhan Zhengyuan insists on taking technology as the driving force of enterprise
development, taking technological innovation as the starting point, and taking the long-
term goal of increasing cost and efficiency. In 2021, Xuanhan Zhengyuan will achieve
an operating income of RMB 549.0189 million, an increase of 19.03% over the same
period last year, and a net profit of RMB 142.3078 million, an increase of 32.53% over
the same period last year.
Xuanhan Zhengyuan actively promotes the promotion and application of products
to downstream applications and gives full play to the platform advantages of the parent
company. During the reporting period, Xuanhan Zhengyuan established two
subsidiaries and invested in one company to continue to explore the application of
micro glass fiber in new fields.
Based on the geographical advantage of Xuanhan county having the largest marine
integrated natural gas field in China, Xuanhan Zhengyuan completed the engineering
construction of the Microfiber International Technology Center so that Xuanhan
Zhengyuan strongly promotes the Xuanhan government's plan to build China's first full-
industry-chain microfiber new material industrial park.
(6)) Keep Upright and Innovate, And Move Forward
During the reporting period, Zisun received various awards and certifications,
including the First Prize of Chongqing Science and Technology Progress and
Chongqing May Day Labor Certificate. Our high-efficiency air filtration was awarded
the single champion product of the Ministry of Industry and Information Technology,
and our sound insulation and heat insulation blanket obtained the China Commercial
Aircraft Test Qualification Certificate. The company successfully re-evaluated as a
second-level enterprise of safety standardization and was also rated as “Environmental
Integrity Enterprise”, “Chongqing Health Enterprise” and “Yubei District Peaceful
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Enterprise Model Unit”. The company won the “Yubei District Mayor Quality Award”
and actively participated in the selection of “China Quality Award”.
The company continues to improve its process and manufacturing level internally
and actively participates in industry communication and exchange. During the reporting
period, the company participated in several industry exhibitions.
(7) Healthy Internal Competition and Self-driven Win-Win
The company introduced the Competitiveness mechanism, through “setting goals
- organization empowerment - evaluation and competitiveness - sharing results”,
creating a gold medal culture and other methods to comprehensively enhance
employees’ sense of participation, gain and achievement, and rationally allocate and
integrate human resources to give full play to employee job potential. The company
emphasizes self-driven and win-win, self-management, self-improvement, and refined
assessment management such as “daily elite class schedule” to reduce ineffective labor.
(8) Standardized Company Operation and High-Quality Operation
Management
The board of directors, board of supervisors and senior management of the
company are all diligent and conscientious in fulfilling their responsibilities, which
strictly abide by all laws and regulations. During the reporting period, the company held
8 board meetings, 8 supervisory meetings and 3 shareholders’ meetings.
The company strives to actively establish open, fair, transparent and multi-
dimensional investor relations through various channels, enhance investors’ recognition
of the company, effectively improve the value and market influence, establish and
maintain a good image of the listed company, and promote the long-term healthy
development in the capital market.
During the reporting period, the company answered 294 questions from SSE E-
interactive investors; participated in 1 online collective reception day for investors in
Chongqing in 2021; accepted more than 10 on-site investigations by investors;
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participated in dozens of investor exchange calls; kept the investor hotline open and
actively answered investor calls.
The management team continues to pay attention to the latest national policy
trends, maintain a good operational structure, strengthen internal control supervision
and audit, and provide more feasible internal control management demand services and
results delivery for the healthy and benign operation, so as to make the internal control
system more perfect, reasonable and orderly, guarantee the orderly operation activities,
and promote the continuous improvement of corporate governance.
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II Analysis of Main Business
(1) Analysis Table of Changes in Relevant Items In The Income Statement
And Cash Flow Statement
Unit: Yuan Currency: CNY
Amount in the Amount of the
Items Change (%)
current period last year
Operating revenue 1,619,710,842.66 1,884,228,703.44 -14.04
Operating costs 1,118,367,804.01 1,167,101,588.03 -4.18
Selling and distribution expenses 43,617,359.04 48,811,269.44 -10.64
General and administrative expenses 107,248,428.48 107,164,520.12 0.08
Financial expenses 13,209,745.73 14,194,182.53 -6.94
Research and development expenditures 89,510,799.50 72,901,869.46 22.78
Cash flow from operating activities 148,772,678.97 291,270,329.26 -48.92
Cash flows from investment activities -214,729,467.05 -162,706,081.47 N/A
Cash flows from financing activities -46,326,348.26 -19,432,987.82 N/A
Other income 39,611,932.99 19,668,353.70 101.40
Investment income 8,917,050.80 7,576,882.93 17.69
Credit impairment loss -8,850,016.29 -14,686,997.60 N/A
Reasons for changes in operating income：the revenue of masks and meltb-lown
materials decreased by 89.27% compared with it in 2020.
Reasons for changes in operating costs：costs are reduced due to lower operating
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income
Reasons for changes in selling expenses：employee compensation are reduced due to
lower operating income
Reasons for changes in management expenses：basically the same as last year。
Reasons for changes in financial expenses：mainly due to the decrease in interest
expenses during the reporting period.
Reasons for changes in R&D expenses：mainly due to the increase in investment in
new product research and development during the reporting period.
Reasons for changes in net cash flow from operating activities：：mainly due to the
sales of masks and melt-blown materials in 2020 received more money.
Reasons for changes in net cash flow from investing activities：the main reason is
that the projects to be raised and invested during the reporting period were
successively invested and constructed.
Reasons for changes in net cash flow from financing activities：the main reason is
that the bank borrowings obtained in the reporting period decreased compared with it
in 2020, and the dividend distribution increased.
Reasons for changes in other income：mainly due to the increase in government
subsidies received during the reporting period compared with the same period of last
year.
Reasons for changes in investment income：mainly due to the increase in the
company's bank principal-guaranteed wealth management income during the
reporting period.
reasons for changes in credit impairment losses: mainly because the increase in
accounts receivable at the end of the reporting period compared with the beginning of
the period decreased compared to the same period last year
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(2) Revenue and Cost Analysis
The operating costs of 2021 decreased by 4.18% over the same period of 2020. Due to the decrease in revenue in 2021,the operating cost
decreased accordingly YOY. The decrease of cost in2021 is smaller than the decrease of revenue (9.86%), mainly because the raw material cost of
core products in the current period is at a historically high level
1. Main Business by Industry, Product, Region and Sales Model (Unit: RMB YUAN)
Main Business by Industry
Change Of Change Of Change Of Gross
Gross Margin
By Industry Operating Income Operating Cost Operating Income Operating Costs Margin Over 2020
(%)
Over 2020（%） Over 2020（%） （%）
Clean Air 896,106,459.26 573,374,338.01 36.01 -29.55 -14.71 -11.14 pp
High Efficiency& Energy Saving 694,151,060.63 524,924,180.28 24.38 17.15 8.21 6.25
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Main Business by Product,
Change Of
Change Of Change Of Gross
Operating Gross Margin Operating
By Product Operating Cost Operating Costs Margin Over 2020
Income (%) Income Over
Over 2020（%） （%）
2020（%）
Clean Air 896,106,459.26 573,374,338.01 36.01 -29.55 -14.71 -11.14 pp
In Which, The Equipment 397,067,978.58 285,431,171.22 28.12 -10.41 -12.69 +1.88 pp
High Efficiency and Energy Saving 694,151,060.63 524,924,180.28 24.38 17.15 8.21 +6.35 pp
Main business by region
Change Of Change Of
Change Of Gross
By Region Operating Income Operating Cost Gross Margin (%) Operating Income Operating Costs
Margin Over 2020
Over 2020（%） Over 2020
Domestic 1,055,218,283.63 711,291,610.91 32.46 -19.75 -10.08 -7.26 pp
Overseas 535,039,236.26 387,006,907.38 27.94 -2.74 5.65 -5.72 pp
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Main business by sales model
Change Of Change Of
Change Of Gross
By Sales Model Operating Income Operating Cost Gross Margin (%) Operating Income Operating Costs
Margin Over 2020
Over 2020（%） Over 2020
direct sales 1,590,257,519.89 1,098,298,518.29 30.94 -14.71 -5.10 -6.99
2. Production and sales analysis table
Change Of Production Change Of Sales Volume Change Of Inventory
Main Products Unit Production Sales Volume Inventory
Over 2020（%） Over 2020（%） Over 2020（%）
Filter material Tons 11,234.26 9,106.28 671.93 -1.74 -12.05 -7.88
Filter equipment PCS 655,789.00 653,151.00 46,210.00 -49.17 -48.97 6.05
Energy saving material Tons 76,305.49 56,111.24 3,467.39 8.04 6.83 -25.11
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3. Implementation of major purchase contracts and major sales contracts
N/A
4. Cost analysis table
Cost analysis table by industry
of the total Amount of last of total cost in Proportion of changes
By industry Cost Components Current Amount statement
cost (%) year last year (%) over previous year (%)
CLEAN AIR Raw and auxiliary 573,374,338.01 52.21 672,247,271.36 58.08 -14.71
materials, energy and
power, labor,
HIGH EFFICIENCY& manufacturing costs 524,924,180.28 47.79 485,117,635.78 41.92 8.21
ENERGY SAVING
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Cost analysis table by product
Of The Of Total Cost Proportion Of
Amount Of
By Product Cost Components Current Amount Total Cost In Last Year Changes Over Statement
Last Year
(%) (%) Previous Year (%)
Direct Materials 409,477,585.92 71.42 500,359,477.95 74.43 -18.16 产量减少
Clean Air Other material 42,038,986.76 7.33 46,373,248.01 6.90 -9.35 产量减少
labor and manufacturing costs 121,857,765.34 21.25 125,514,545.40 18.67 -2.91 产量减少
Direct Materials 347,946,441.06 66.29 316,803,522.19 65.30 9.83 产量增加
High
辅助材料回收
Efficiency& Other material 10,840,565.65 2.07 11,248,607.77 2.32 -3.63
利用
Energy Saving
labor and manufacturing costs 166,137,173.56 31.65 157,065,505.83 32.38 5.78 产量增加
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5. Changes in the scope of consolidation due to changes in the shareholdings of
major subsidiaries during the reporting period
N/A
6. Significant changes or adjustments to the company's business, products or
services during the reporting period
N/A
7. Information on major sales customers and major suppliers
A. The main sales customers of the company
The sales of the top five customers amounted to RMB 414.9122 million,
accounting for 25.62% of the total annual sales; among the sales of the top five
customers, the sales of related parties amounted to RMB 101.1699 million, accounting
for 6.25% of the total annual sales.
During the reporting period, the proportion of sales to a single customer exceeds
50% of the total, and there are new customers among the top 5 customers, or the
situation is heavily dependent on a small number of customers
N/A
B. The main suppliers of the company
The purchase amount of the top five suppliers was RMB 467,537,700, accounting
for 32.37% of the total annual purchase; among the purchase amount of the top five
suppliers, the purchase amount of related parties was RMB 195,583,300, accounting
for 13.54% of the total annual purchase.
During the reporting period, the proportion of purchases from a single supplier
exceeded 50% of the total, and there were new suppliers among the top 5 suppliers or
a heavy reliance on a small number of suppliers
N/A
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(4) R&D
1. R&D Investment Table
Unit: Yuan
Expenditure R&D investment in the current period 89,510,799.50
Capitalized R&D investment in the current period 8,283,905.12
Total R&D investment 97,794,704.62
Proportion of total R&D investment to operating income 6.04%
Proportion of capitalization of R&D investment 8.47%
2. R&D Personnel Information Table
The number of R&D personnel in the company 236
The ratio of the number of R&D personnel to the total number of the company 15.71%
Educational Structure Of R&D Personnel
Educational Structure Category Number Of People
PhD 1
Postgraduate 10
Undergraduate 55
College 5
High school and below 164
Age Structure Of R&D Staff
Age Structure Category Number Of People
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Under 30 years old (excluding 30 years old) 52
30-40 years old (excluding 40 years old) 121
40-50 years old (excluding 50 years old) 43
50-60 years old (excluding 60 years old) 20
60 years old and above 0
(5) Cash flow
Unit: Yuan
Amount of this Amount of the last Change
Items
period year ratio (%)
Net cash flow from operating activities 148,772,678.97 291,270,329.26 -48.92
Net cash flow from investing activities -214,729,467.05 -162,706,081.47 N/A
Net cash flow from financing activities -46,326,348.26 -19,432,987.82 N/A
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IV. Analysis of Assets and Liabilities
(1) Assets And Liabilities
The closing
Changes in the
The ratio to Closing amount of the
Closing amount of amount compared
Item the total amount of last previous period Statement
the current period with the end of the
assets (%) period to the total
previous period (%)
assets (%)
Tradable Financial Assets 2,391,632.00 0.08 20,428,616.00 0.74 -88.29 1
Accounts Receivable 630,601,740.67 21.51 487,189,958.67 17.77 29.44 2
Contract Assets 13,133,663.80 0.45 9,821,763.55 0.36 33.72 3
Other Current Assets 12,430,684.45 0.42 8,056,456.66 0.29 54.29 4
Long-Term Equity Investment 85,379,046.38 2.86 39,794,148.03 1.45 114.55 5
Investment In Other Equity Instruments 4,350,000.00 0.15 600,000.00 0.02 625.00 6
Construction In Progress 147,696,378.50 5.04 12,589,767.15 0.46 1,073.15 7
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Long-Term Prepaid Expenses 7,126,744.84 0.24 15,299,957.46 0.56 -53.42 8
Bills Payable 19,085,011.09 0.65 28,333,230.21 1.03 -32.64 9
Other Payables 20,172,881.81 0.69 11,718,151.31 0.43 72.15 10
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1) Main reasons for changes in financial assets held for trading: mainly due to the
redemption of all wealth management products during the reporting period.
2) Main reasons for changes in accounts receivable: mainly due to the increase in the
company's shipments at the end of the year, and the relatively long order cycle for
large projects.
3) Main reasons for changes in contract assets: mainly due to the increase in the quality
assurance fund receivable within one year during the reporting period.
4) Main reasons for changes in other current assets: mainly due to the report expects to
increase the deductible value-added tax
5) Main reasons for changes in long-term equity investments: mainly due to additional
investment in participating companies during the reporting period.
6) Main reasons for changes in investments in other equity instruments: mainly due to
the increase in foreign investment during the reporting period.
7) Main reasons for changes in construction in progress: mainly due to the increase in
the construction of projects to be raised and invested in the reporting period.
8) Main reasons for changes in long-term deferred expenses: mainly due to the increase
in plant decoration costs during the reporting period.
9) Main reasons for changes in notes payable: mainly due to the payment of notes due
during the reporting period
10) Main reasons for changes in other payables: mainly due to the increase in retirement
payments paid on behalf of the Company during the reporting period.
(2) Overseas Assets
The overseas assets are 791,999.49 (unit: yuan currency: RMB), accounting for
0.03% of the total assets.
(3) Restrictions On Major Assets as At the End of The Reporting Period
At the end of the period, there were mortgages, pledges, freezes, etc. with
restrictions on use of RMB 8,402,697.94. All that are all other monetary funds, which
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were bank acceptance bill deposits and guarantee deposits.
V. Analysis of Industry Operating Information
VI. Analysis of Investment Status
(1) Significant equity investment
N/A
(2) Significant non-equity investments
N/A
(3) Financial assets measured at fair value
N/A
(4) The specific progress of major asset restructuring and integration during the
reporting period
N/A
VII. Significant Assets and Equity Sales
N/A
VIII. Analysis of major holding companies
Refer to the original Chinese version report.
IX. The Company's Discussion and Analysis on The Future Development of The
Company
All details refer to Chapter 3 in this report.
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(四)可能面对的风险
1. Risk of Changes in Raw Material Costs
In the cost composition of micro glass fiber, natural gas costs account for a
relatively high proportion of the total cost, and the price of natural gas has a greater
impact on the price of micro glass fiber.
Fluctuations in natural gas prices in the future will directly cause fluctuations in
the price of micro glass fiber. If the price and production cost of micro glass fiber
fluctuate significantly in the future, it will directly affect the company's net profit.
2. Risk of Changes In Export Tax Rebate Policy.
Our export sales revenue accounted for about 33.77% of the total combined main
business revenue of 2021.
With the changes in the country's economic situation, the country may adjust the
relevant export tax rebate policies in the future.
If the export tax rebate rate of our main products is reduced or cancelled, it may
have an adverse impact on the net profit.
3. Risk of exchange rate changes.
Due to the large proportion of our export business, the current exchange rate in the
international market fluctuates frequently.
If the exchange rate fluctuation of RMB against the US dollar and the euro
continues to increase in the future, the company will face the risk of exchange loss due
to exchange rate fluctuations.
4. The Risk of Large Book Balance of Accounts Receivable.
Zisun implements a consistent and prudent credit policy, and the increase in the
book balance of accounts receivable is mainly due to changes in the sales revenue and
customer structure.
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However, if the book balance of accounts receivable continues to rise sharply in
the future, on the one hand, the operating cash flow will continue to decrease, which
will put the company under greater financial pressure, which may lead to the risk of not
being able to raise funds in time for necessary research and development and investment
in fixed assets. On the other hand, the possibility of bad debts in the company's accounts
receivable increases, increasing the risk of uncollectible accounts receivable.
5. The risk of talent shortage.
The rapid growth of the company is accompanied by the growing demand for
talents, especially the demand for high-end technical talents and management talents is
obvious in the short term.
6. Goodwill impairment risk.
There is a large goodwill in the process of merger and acquisition. If the
performance of the acquired party develops in an unfavorable direction in the future,
there may be impairment of goodwill, which will have a certain impact on the
company's performance.
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Chapter 4 Company Governance
I. Description of Corporate Governance
During the reporting period, according to the relevant laws and regulations such as the
Company Law, the Securities Law, and the Corporate Governance Guidelines for Listed Companies,
as well as the requirements of the Articles of Association, Zisun has continuously improved its
corporate governance structure and internal control system. The powers and responsibilities among
the powers, decision-making bodies, supervisory bodies and management are clearly defined, and
the operation is standardized, effectively protecting the legitimate rights and interests of the
company and shareholders.
At present, Zisun, in accordance with the requirements of listed companies, has
established a corporate governance structure with clear rights and responsibilities,
mutual checks and balances, and an effective internal control system for supervision.
Zisun operates in strict accordance with the law. The actual status of company
governance complies with the requirements of relevant laws and regulations. Zisun
does not have the problem that the regulatory authorities require rectification within a
time limit.
(1) About Shareholders and the General Meeting of Shareholder:
Strictly following the regulations and requirements of the Articles of Association
and the Rules of Procedure for the General Meeting of Shareholders, Zisun regulates
the convening, convening and deliberation procedures of the general meeting of
shareholders, and hires lawyers to issue legal opinions on the legality of the general
meeting of shareholders. Zisun ensures the equal status of all shareholders, especially
small and medium shareholders, and fully exercises the legitimate rights and interests
of shareholders. Zisun guarantees the shareholders' right to know, participate and vote
on the company's major issues.
(2) The Relationship Between the Controlling Shareholder and the Listed
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Company
The controlling shareholder of the company, who did not directly or indirectly
interfere in the company's decision-making and business activities beyond the general
meeting of shareholders exercises the rights of the investor through the general meeting
of shareholders. The company is separated from the controlling shareholder in terms of
personnel, assets, finance, organization and business.
Zisun has independent and complete business and independent management
capabilities. Our board of directors, supervisory board and management are capable to
operate independently. During the reporting period, Zisun did not provide guarantee for
the controlling shareholder and its affiliated enterprises, nor did the controlling
shareholder occupy the company's funds for non-operational purposes.
(3) Regarding The Directors and The Board of Directors and The
Professional Committees of The Board of Directors
Zisun selects and appoints directors in strict accordance with the provisions of the
“Articles of Association”. The number and composition of directors comply with
relevant laws and regulations. All directors are able to perform their duties
conscientiously and diligently by actively participating in relevant business training and
earnestly learning relevant laws and regulations. The rights, obligations and
responsibilities of company directors are clearly defined.
(4) Supervisors and the Supervisory Committee
The Supervisory Committee performs its duties diligently and responsibly, in strict
accordance with relevant laws and regulations and the relevant provisions of the
Articles of Association. The board of supervisors supervises the operation of the
company in accordance with the law including supervising the company's board of
directors and senior management to exercise their powers, supervising the company's
related transactions, financial status and the preparation of regular reports.
(5). Relevant Stakeholders
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Zisun fully respects the legal rights of customers, employees, suppliers and
partners, the public and other stakeholders. Zisun strives to actively cooperate with
stakeholders and jointly promote the sustainable and healthy development of the
company. We take into account the simultaneous improvement of the economic and
social benefits of the company.
(6) Information Disclosure and Transparency
Zisun has formulated the “Information Disclosure Management System” and “The
Accountability System for Major Errors in Information Disclosure in Annual Reports”
etc., which clarify the person responsible for information disclosure, and fulfill the
obligation of information disclosure in a true, accurate, complete and timely manner.
The company discloses the latest information of the company in the newspapers,
periodicals and websites designated by the Zisun, so that all shareholders have an equal
right to know.
Both the company and its controlling shareholders have formulated a registration
and filing system for insiders of inside information in accordance with the requirements
of the regulatory authorities, which regulates the management of inside information by
the company and controlling shareholders, strengthens the confidentiality of inside
information, and maintains the principle of fairness in information disclosure.
During the reporting period, the company strictly followed the “Inside Information
Insider Management System” to keep the inside information confidential and the
insider's registration and filing work, and strictly control the insider to the minimum
scope and ensure that the major information will not be leaked during the window
period.
Our directors, supervisors, and senior managers did not use inside information to
buy or sell the company's stock during the sensitive period. Corporate governance is a
long-term task for enterprises. Zisun will continue to improve the corporate governance
structure, the internal control mechanism of the company, and further enhance the
company's directors, supervisors and senior management staff's awareness of
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standardized operation and risk control, and promote the company's sustainable, stable
and healthy development.
Whether there is a material difference between corporate governance and laws,
administrative regulations and the Zisun regulations on listed company
governance; if there is a material difference, the reasons shall be explained
N/A
II. The Specific Measures Taken by The Controlling Shareholder and Actual
Controller of The Company to Ensure the Independence of The Company's
Assets, Personnel, Finance, Organization, Business, Etc., As well as the
solutions, work progress and follow-up work plans that affect the company's
independence.
N/A
If the controlling shareholder, actual controller and other units controlled by
it are engaged in the same or similar business as the company.
The impact of horizontal competition or major changes in horizontal
competition on the company, the resolution measures that have been taken, the
progress of the resolution and the follow-up resolution plan
N/A
III. Brief Introduction to The General Meeting of Shareholders
Disclosure
Session Date Search Index Meeting Outcome
Date
2021 1st Extraordinary
2021-4-30 www.sse.com.cn 2021-4-30 Announcement No. 2021-044
Meeting
2020 Annual Meeting 2021-5-18 www.sse.com.cn 2021-5-19 Announcement No. 2021-049
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2021 2nd Extraordinary
2021-9-13 www.sse.com.cn 2021-9-14 Announcement No. 2021-078
General
Preference shareholders with restored voting rights request to convene an extraordinary
general meeting
N/A
Description of the General Meeting of Shareholders
N/A
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IV. Information of Directors, Supervisors and Senior Management
(1) Changes in shareholding and compensation of the current and resigned directors, supervisors and senior executives during the
reporting period Current and resigned directors, supervisors and senior management during the reporting period.
Total Pre-Tax
Shares Held at Shares Held at Changes In
Remuneration
Name Job Title Age Term Start Term End The Beginning The End of The Shares During
(Ten Thousand
of The Year Year the Year
Yuan)
Mr. GUO Mao Chairman 52 2020/4/23 2023/4/23 265,758,863 265,758,863 0 134.54886
Director,
Mr. LIEW Xiaotong 51 2020/4/23 2023/4/23 180,180 180,180 0 120.00
General Manager
Ms. LIU Xiuqin Vice Chairman 50 2020/4/23 2023/4/23 204,800 254,800 50,000 101.846431
Mr. TAO Wei Director 47 2020/4/23 2023/4/23 68,300 170,789 102,489 16.598560
Mr. Yi Wei Director 35 2020/4/23 2023/4/23 0 110,419 110,419 147.758137
Ms. GUO Sihan Director 27 2020/4/23 2023/4/23 0 0 0 15.548912
Independent
Dr. JIANG Jihai 47 2020/4/23 2023/4/23 0 0 0 9.60
Director
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Independent
Dr. LIU Bin 60 2020/4/23 2023/4/23 0 0 0 9.600
Director
Independent
Dr HUANG Zhong 40 2020/4/23 2023/4/23 0 0 0 9.60
Director
Mr. ZHENG Kaiyun Supervisor 44 2020/4/23 2023/4/23 0 0 0 29.782962
Mr. DU Delu Supervisor 56 2020/4/23 2023/4/23 0 0 0 24.383257
Ms. ZENG Ying Supervisor 32 2020/4/23 2023/4/23 0 0 0 31.968873
Deputy General
Mr. QIN Dajiang 41 2020/4/23 2023/4/23 136,500 150,100 13,600 74.932770
Manager
Deputy General
Ms. ZHOU Lingya 40 2020/4/23 2023/4/23 136,500 131,500 -5,000 199.835438
Manager
Deputy General
Mr. YU Yangming 43 2020/4/23 2023/4/23 116,104 87,104 -29,000 64.509967
Manager
Deputy General
Mr. YANG Jinming Manager, Chief 36 2020/4/23 2023/4/23 27,430 169,062 141,632 35.164249
Financial Officer
Deputy General
Ms. XIE Jia Manager, Board 36 2020/4/23 2023/4/23 50,000 144,732 94,732 105.632611
Secretary
TOTAL / / / / 266,678,677 267,157,549 478,872 1,131.311027
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(2) Employment of current and outgoing directors, supervisors and senior management during the reporting period
A. Employment in shareholder
N/A
B. Employment in other organization
Name Company Name Positions Term Start Date Term End Date
President and Vice
Mr. TAO Wei Matsushita Vacuum Energy Saving New Material (Chongqing) Co. 2016/08/
President
Dr. JIANG Jihai College of Economics and Business Administration, Chongqing University Professor 2013/09
Dr. JIANG Jihai Chongqing Baiya Sanitary Products Co. Independent Directors 2021/08
Southwest University of Political Science and Law, School of Civil and Professor, Doctoral
Dr HUANG Zhong 2007
Commercial Law Supervisor
Dr HUANG Zhong Chongqing Qinsuo Lian Plastic Co. Ltd Independent Directors 2017/08
Dr HUANG Zhong Xin Anjie Environmental Sanitation Co. Ltd Independent Directors 2020/09
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Dr HUANG Zhong Shandong Mining Machinery Group Co. Ltd Independent Directors 2021/05
Dr HUANG Zhong Chongqing Ant Consumer Finance Co. Ltd Independent Directors 2021/06
Professor, Doctoral
Dr. LIU Bin College of Economics and Business Administration, Chongqing University 1994/04
Supervisor
Dr. LIU Bin Chongqing Department Store Co. Ltd Independent Directors 2016/01
Dr. LIU Bin Chongqing Xiaokang Industrial Group Co. Ltd Independent Directors 2017/04
Dr. LIU Bin Chongqing Hualong Network Group Co. Ltd Independent Directors 2016/12
Dr. LIU Bin Sichuan Gaojin Co., Ltd Directors 2020/07
Dr. LIU Bin Chongqing Cultural Tourism Creative Development Co., Ltd. Directors 2019/1
Ms. LIU Xiuqin Chongqing Hongjiu Fruit Products Co. Ltd Independent Directors 2020/07
Description of employment in other units N/A
(3) Remuneration of Directors, Supervisors and Senior Management
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Directors, supervisors and senior executives are organized and
assessed by the Remuneration and Assessment Committee of the
Decision-making procedures for compensation of directors, supervisors and senior
Company's Board of Directors in accordance with the Articles of
management
Association and the relevant internal regulations of the
Company.
The remuneration of directors, supervisors and senior
management personnel is determined and distributed in
accordance with the provisions of the "Working Rules of the
The basis for determining the compensation of directors, supervisors and senior
Remuneration and Appraisal Committee" of the company's
management
board of directors, in combination with their business
performance, work ability, job rank, and annual performance
targets.
Actual payment of compensation to directors, supervisors and senior management Refer to the table of VI (1)
Total actual remuneration received by all directors, supervisors and senior
1131.311027 million
management at the end of the reporting period
(4) Changes in directors, supervisors and senior management of the company
N/A
(5) Explanation on Punishments by Securities Regulatory Authorities in the Past Three Years
N/A
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V. Information about the Board of Directors held during the reporting period
Session Date Meeting Resolution refer to
The 8th meeting of the 4th Board of Directors 2021-2-8 the Announcement 2021-006
The 9th meeting of the 4th Board of Directors 2021-4-13 the Announcement 2021-017
The 10th meeting of the 4th Board of Directors 2021-4-19 the Announcement 2021-023
The 11th meeting of the 4th Board of Directors 2021-6-1 the Announcement 2021-053
The 12th meeting of the 4th Board of Directors 2021-7-6 the Announcement 2021-064
The13th meeting of the 4th Board of Directors 2021-8-25 the Announcement 2021-067
The 14th meeting of the 4th Board of Directors 2021-10-27 the Announcement 2021-083
The 15th meeting of the 4th Board of Directors 2021-12-08 the Announcement 2021-092
VI. Directors' Performance of Duties
(1) Directors' participation in the board of directors and shareholders'
general meetings
General
Board Meetings
Meetings
Name Number Of Attendance By Number Of
Attendance In Delegated
Meetings to Means of Absence Meetings to
Person Attendance
Attend Communication Attend
Mr. GUO Mao 8 8 4 0 0 3
Mr. LIEW 8 8 3
4 0 0
XIAOTONG
Ms. LIU Xiuqin 8 8 4 0 0 3
Mr. TAO Wei 8 8 4 1 0 3
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Mr. YI Wei 8 8 4 0 0 3
Ms. GUO Sihan 8 8 4 0 0 3
Dr. JIANG Jihai 8 8 4 0 0 3
Dr. LIU Bin 8 8 4 0 0 3
Dr HUANG 8 8 3
4 0 0
Zhong
No. of board meetings held during the year: 8
Of which,
No. of on-site meetings: 4
No. of meetings held by means of communication: 4
No. of meetings held on-site combined with communication methods: 0
(2) Objections raised by directors on matters related to the company
N/A
(3) Others
N/A
VII. Special Committees Under the Board of Directors
(1) Special Committees under the Board of Directors
The Audit Committee: Dr. LIU Bin, Dr. JIANG Jihai, Ms. LIU Xiuqin
Nomination Committee: Dr. HUANG Zhong, Dr. JIANG Jihai, Mr. YI Wei
Remuneration and Appraisal Committee: Dr. HUANG Zhong, Dr. LIU Bin, Ms.
GUO Sihan
Strategy Committee: Ms. GUO Mao, Mr. TAO Wei, Dr. JIANG Jihai
(2) During the reporting period, the Audit Committee held 4 meetings
(3) During the reporting period, the Remuneration and Appraisal Committee
held 2 meetings
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(4). During the reporting period, the Strategy Committee held 3 meetings
(5). The specific circumstances of the objection：N/A
VIII. Explanation of The Supervisory Board Finding That the Company Has
Risks
The Supervisory Committee has no objection to the supervision matters during the
reporting period.
IX. At the End of The Reporting Period, Employees Of The Parent Company And
Major Subsidiaries
(1) Employee Information
Number of current employees of parent company: 440
Number of current employees of major subsidiaries: 1056
The total number of active employees: 1496
Number of retirees for which the parent company and its major subsidiaries are
required to bear the expenses: 0
Employees by Profession
Type Number
Production personnel 920
salesperson 98
technician 235
financial personnel 43
Administrative staff 200
Total 1496
Employees by Education Level
Level Number
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Master’s degree and above 25
Undergraduate 225
College 152
High school and below 1094
Total 1496
(2) Salary Policy
Salary policy is a full reflection of the reward for the employee's work. The
company is based on the principle of contribution reflecting the corresponding
remuneration, and the overall goal is to motivate talents to work hard to create better
economic and social benefits.
Zisun salary categories include basic salary, job salary, performance bonus,
allowance, subsidy, assessment award, etc. In accordance with The Labor Law,
combined with the economic level of each subsidiary and the industry wage level, Zisun
has formulated the company's salary scale table, and set the company's departments at
all levels and various types of work salary standards to fully stimulate the enthusiasm
and creativity of employees.
According to the development stage, Zisun has formulated the employee equity
incentive plan and employee stock ownership plan, so as to deepen the company's
incentive system, built a long-term effective incentive and restraint mechanism, further
improve the company and employees' benefit sharing mechanism, and enhance the
company's cohesion and competitiveness, which is beneficial to the company
sustainable development.
(3) Training Program
The training program is divided into internal training and external training.
Internal training includes, but is not limited to, employee job skills training, team
performance management training, special production safety training, and target
management and execution improvement training. External training includes, but is not
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limited to, job certificate training and professional skills training.
Staff job skills training. It includes induction training, job skills education, safety
knowledge training, intellectual property training, legal training, etc. The company's
enterprise management department cooperates with various departments and factories
to carry out
Team performance management training. The purpose is to guide the organization
to pursue excellent performance, improve the quality of products, services and
operations, improve the level of enterprise management, and enhance the competitive
advantage.
Special training on production safety, conducted by the enterprise management
department which regularly organizes special training for each factory, aiming to
strengthen employees' awareness of standardized operation and safe production, no less
than twice a year.
Target management and training to improve execution is to improve the efficiency
of enterprise management and operation and to ensure that the business objectives of
the enterprise are decomposed and implemented at every level.
Job license training. For positions that require certification, organize employees to
participate in license training, review and annual audit training.
Professional skills training. It is to organize people with the positions acquiring
higher professional skills to participate in professional training. The training topics
include marketing, on-site management, enterprise structure, production technology,
etc.
The purpose is to strengthen the professional foundation of each professional team
of the company, cultivate teamwork awareness, broaden professional ideas and enhance
market competitiveness.
(4) Outsourcing of Labor Services
Total man-hours for labor outsourcing: 1,393,255.70 hours
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Total remuneration paid for labor outsourcing: RMB 27,492,767.36
X. Profit Distribution or Capital Reserve Conversion Plan
(1) The Formulation and Adjustment of The Cash Dividend Policy
A. Formulation and adjustment of the cash dividend policy
During the reporting period, no adjustment was made to the Company's cash
dividend policy. The current cash dividend policy was considered and approved by the
first extraordinary general meeting of the Company in 2014 on May 6, 2014, and the
specific profit distribution policy is detailed in the relevant articles of profit distribution
in the Articles of Association. During the reporting period, the Company's profit
distribution plan strictly implemented the provisions of the relevant dividend
distribution policy.
In order to further plan the profit distribution and cash dividend matters of the
Company and guide shareholders to establish long-term investment and rational
investment concepts, the Board of Directors of the Company formulated the "Proposal
on the Company's Shareholder Return Planning for the Next Three Years (2015-2017)",
which was voted by the Company at the First Extraordinary General Meeting in 2015.
The Company held the fourteenth meeting of the third session of the Board of Directors
on April 19, 2018, and considered and approved the Proposal on the Company's
Shareholder Return Plan for the Next Three Years (2018-2020), which was voted by
the Company at the 2017 Annual General Meeting. The company held the eighth
meeting of the fourth session of the board of directors on February 8, 2021 and
considered and passed the Zisun shareholder return plan for the next three years (2021-
2023)", which was considered and passed at the shareholders' meeting of the company's
first extraordinary shareholders' meeting in 2021.
B. Implementation of cash dividend policy
The 2021 profit distribution and capital reserve conversion plan: the company
plans to use the total share capital on the equity registration date when the profit
distribution plan is implemented as the base and use the capital reserve to transfer 4
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shares for every 10 shares to all shareholders. All shareholders will distribute a cash
dividend of RMB 1.05 (tax included) for every 10 shares.
If there is a change in the company's total share capital before the equity
registration date for the implementation of equity distribution, it is proposed to maintain
the distribution amount per share unchanged, and the total distribution amount will be
adjusted accordingly. The remaining undistributed profits are carried forward for
distribution in subsequent years. The above profit distribution plan is yet to be reviewed
and approved at the company's 2021 annual general meeting.
Whether it complies with the provisions of the company's articles of association or
the requirements of the resolution of the general meeting of shareholders
-Yes
Whether the dividend standard and ratio are clear and clear
-Yes
Whether the relevant decision-making procedures and mechanisms are complete
-Yes
Whether the independent directors performed their duties and played their due role
-Yes
Whether minority shareholders have the opportunity to fully express their opinions
and demands, and whether their legitimate rights and interests have been fully
protected
-Yes
(3) If it is profitable during the reporting period and the parent company's
profit available to shareholders for distribution is positive, but no cash profit
distribution plan has been proposed, the company shall disclose the reasons in
detail and the purpose and use plan of the undistributed profits.
N/A
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XI. Status and Impact of Company Equity Incentive Plans, Employee Stock
Ownership Plans or Other Employee Incentives
(1) Relevant incentive matters have been disclosed in the temporary
announcement and there is no progress or change in the subsequent
implementation.
All details refer to the Announcement of 2021-031, 032, 033, 034 on April 4th,
2021, the Announcement of 2021-054 on June 2nd, 2021, the Announcement of 2021-
063 on July 7th, 2021, the Announcement of 2021-067 on August 26th, 2021, he
Announcement of 2021-078 on September 14th, 2021, and he Announcement of 2021-
090 on November 24th, 2021.
(2) Incentives not disclosed in the temporary announcement or with follow-
up progress
N/A
(3) Share incentives granted to directors and senior executives during the
reporting period
(4) The evaluation mechanism for senior management personnel and the
establishment and implementation of the incentive mechanism during the
reporting period
XII. Construction and Implementation of Internal Control System During the
Reporting Period
In order to strengthen and standardize the internal control of enterprises, improve
the level of enterprise management and risk prevention, the company continues to
optimize and improve the construction of the company's internal control system,
strengthen the Internal Audit Oversight.
The company established the "Chongqing Zisun Technology Co., Ltd. Internal
Audit System", which aims to improve the comprehensive risk management
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Zisun Annual Report of 2021
mechanism, improve the company's internal control system, strengthen the company's
self-discipline, improve business management, ensure the healthy development of the
company's production and business activities, and improve economic benefits, to
realize the preservation and appreciation of the company's assets. Continuously inspect
and evaluate the integrity, rationality and effectiveness of the company's internal control
system, and continuously monitor the legality, compliance, authenticity and integrity of
the company's economic activities. Assist in the establishment and improvement of the
anti-fraud mechanism, determine the key areas, key links and main contents of anti-
fraud, and focus on reviewing the integrity of the internal control system for matters
such as external investment, purchase and sale of assets, external guarantees, related
transactions, use of raised funds, and information disclosure. the validity, rationality
and effectiveness of implementation. In order to adapt to the changing external
environment and internal management requirements.
The company has a legal review and supervision department to supervise the
implementation of the company's management philosophy, corporate culture, strategic
planning, and annual goals. Supervise R&D design, marketing management, etc.,
improve management opinions and rectification measures, and supervise the
implementation of inspections. Continuously promote and enhance the company's
culture and level of supervision and execution and improve the company's own risk
management and control capabilities.
During the reporting period, the aforesaid internal control system was well
implemented, the implementation of internal control was basically effective, and there
was no significant legacy.
Explanation on material defects of internal control during the reporting period:
N/A
XIII. Management and Control of Subsidiaries During the Reporting Period
Zisun has built an internal control system construction system based on the
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headquarters system and implemented by all subsidiaries, centers and departments.
As of the end of the reporting period, the company continued to check and evaluate
the completeness, rationality and implementation effectiveness of the internal control
systems of its subsidiaries, and conducted inspections on the legality, compliance,
authenticity and integrity of its economic data and economic activities. Audits,
including financial reports, performance flashbacks, voluntary disclosures of forward-
looking financial information, etc.
The company continues to supervise the operation and management of each
subsidiary company's due diligence, manages and supervises matters such as project
investment, production and operation, and continuously improves the standard
operation level of the subsidiary companies.
The internal audit department of the company regularly conducts on-site
inspections on the system construction and business activities of the branch companies
and tracks the problems existing in the inspection process and urges rectification.
Strengthen the internal management control and coordination of branch companies and
improve the operation and management level of branch companies.
XIV Relevant Information on The Internal Control Audit Report
At the Sixteenth Meeting of the Fourth Session of the Board of Directors of the
Company, the "Proposal on the Confirmation of the Company's 2021 Annual Self-
Evaluation Report on Internal Control" was considered and approved, the full report is
available on the Shanghai Stock Exchange at www.sse.com.cn 披露的内容 on March
10, 2022.
Whether to disclose the internal control audit report:
- YES
Type of opinion on the internal control audit report:
Standard unqualified opinion
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XV. Listed companies governance special action self-examination problems
rectification
N/A
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Chapter 5 Environmental and Social Responsibility
I. Environmental information
(1) Explanation On the Environmental Protection of The Company and Its
Main Subsidiaries That Are Key Pollutant Discharge Units Announced by The
Environmental Protection Department
Zisun attaches great importance to environmental protection work, strictly
implements and implements the Environmental Protection Law of the People's
Republic of China and other relevant laws and regulations. Adhering to the company
vision of "working hard for energy conservation and cleanliness, and striving for the
happiness of future generations", Zisun continues to carry out standardized
management of environmental protection and pollution prevention.
During the reporting period, the company did not have any environmental
pollution accident, was not subject to environmental administrative penalties, and
discharged the three wastes up to the standard.
The company has passed the ISO14001:2015 environmental management system
certification and passed the clean production audit. In recent years, the company has
successively won the title of Environmental Credit Evaluation and Environmental
Integrity Unit.
Zisun has achieved the standard treatment and comprehensive utilization of
wastewater, meets the requirements of environmental protection laws and regulations
and the production and reuse water standards, reduces environmental pollution and
social impact, protects and improves environmental quality, and meets the needs of
clean production and water conservation.
Zisun continues to improve the production line process, reduce the use of natural
gas, improve production efficiency, reduce energy consumption, and continue to carry
out standardized management of environmental protection and pollution prevention.
A. Pollution Information
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Exhaust Emission Standards：During the reporting period, Zisun strictly follows
the regulations and discharges up to the standard, and there is no excessive
discharge.
Wastewater Discharge Standard：
Main monitoring indicators: pH, suspended solids, COD, ammonia nitrogen, total
phosphorus, animal and vegetable oils.
Number of discharge outlets: 1; distribution
Location: next to the dormitory building.
Monitoring results: monitoring does not exceed the standard. Sewage discharge
into the park sewage treatment plant.
Noise Emission Standard：
Main source: Equipment operation.
Monitoring results: The monitoring does not exceed the standard.
B. Construction and Operation of Pollution Prevention and Control Facilities
Xuanhan Zhengyuan adopts a variety of pollution prevention and control facilities
and ensures that the environmental protection facilities are in good operation.
C. Environmental Impact Assessment of Construction Projects And Other
Environmental Protection Administrative Permits
Xuanhan Zhengyuan conducts environmental impact assessment in strict
accordance with regulations, and obtains project acceptance and discharge permits, and
obtains project approval documents respectively.
D. Contingency Plan for Unexpected Environmental Incidents
In order to implement the requirements of relevant laws, regulations and rules such
as the Environmental Protection Law of the People's Republic of China, the Emergency
Response Law of the People's Republic of China, the National Emergency Response
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Zisun Annual Report of 2021
Plan for Environmental Emergencies and the Interim Measures for the Management of
Emergency Response Plans for Environmental Emergencies, the company has
established and improved the emergency rescue system for environmental emergencies,
so as to improve the prevention, emergency response and disposal capability of
environmental emergencies.
The company avoids and reduces the occurrence of environmental emergencies as
much as possible by implementing effective preventive and monitoring measures. By
responding quickly to environmental emergencies and carrying out effective emergency
actions, the company effectively eliminates and reduces the pollution hazards of
environmental emergencies. The company has prepared a contingency plan for
environmental emergencies, which has been filed with the environmental protection
department of Xuanhan County.
E. Environmental Self-Monitoring Program
N/A
F. Administrative Penalties for Environmental Issues During the Reporting
Period
N/A
G. Other Environmental Information That Should Be Made Public
N/A
(2) Explanation On Environmental Protection of Companies Other Than Key
Pollutant Discharge Units
N/A
(3) Relevant Information That Is Conducive to Protecting Ecology,
Preventing and Controlling Pollution, And Fulfilling Environmental
Responsibilities
N/A
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(4) Measures Taken to Reduce Carbon Emissions During the Reporting
Period and Their Effects
N/A
II. Social Responsibility Work
For details, please refer to our ESG report 2021.
III. Consolidate and Expand the Achievements of Poverty Alleviation and Rural
Revitalization
Zisun is well aware of the social responsibility of the company and actively
undertakes the social responsibility of the company. In 2021, Zisun has invested a total
of 378,600 yuan through charitable donations, agricultural product assistance, and
funding for poor students.
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Chapter 6 Important Matters
I. Fulfillment of Commitments
(1) Commitments Made by The Company's Actual Controller, Shareholders, Related Parties, Acquirers And The Company And
Other Relevant Parties During The Reporting Period Or Continuing To The Reporting Period.
All details refer to SSE website（http://www.sse.com.cn/disclosure/credibility/supervision/promisho/）
(2) There Is a Profit Forecast for The Company's Assets or Projects, And the Reporting Period Is Still In The Profit Forecast Period,
The Company's Assets Or Projects Are Still In The Profit Forecast Period.
N/A
(3) Completion Of Performance Commitments and Its Impact on Goodwill Impairment Testing
During the reporting period, Suzhou U-air, Papermaking Institute , Shenzhen Zhongfang had no goodwill impairment in the evaluation test.
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II. During the Reporting Period, Non-Operating Capital Occupation by The
Controlling Shareholder and Other Related Parties
N/A
III. Violation of Guarantee
N/A
IV. Explanation of The Board of Directors of The Company on the "Non-Standard
Opinion Audit Report" of the Accounting Firm
N/A
V. The Company's Analysis and Explanation on The Reasons and Effects of
Changes in Accounting Policies, Accounting Estimates or Correction of
Major Accounting Errors
(1) The company's analysis and explanation on the reasons and impact of changes
in accounting policies and accounting estimates
N/A
(2) The company's analysis and explanation on the reasons and impact of the
correction of major accounting errors
N/A
(3) Communication with the former accounting firm
N/A
(4) Others
N/A
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Zisun Annual Report of 2021
VI. Appointment and Dismissal of Accounting Firms
Current appointment
Baker Tilly China Certified Public
Name of domestic accounting firm Accountants (Baker Tilly China)
(Special General Partnership)
Remuneration of domestic accounting firms 57
Audit period of domestic accounting firm 12
Name of overseas accounting firm N/A
Remuneration of overseas accounting firms N/A
Audit period of overseas accounting firm N/A
Name Remuneration
Internal Control Audit Baker Tilly China Certified Public
20
Accounting Firm Accountants (Baker Tilly China)
Financial Consultant Huafu Securities Co. 15
Sponsor Huafu Securities Co. 0
Description of Appointment and Dismissal of Accounting Firms
The Company held the second meeting of the Audit Committee of the Fourth
Session of the Board of Directors for 2021 on April 16, 2021, and reviewed the
professional competence, investor protection capability, independence, integrity status
and other information of TIANZHI International CPA Firm (Special General
Partnership), and considered that it could follow the professional standards of
independence, objectivity and impartiality and carry out the audit work independently,
and agreed to re-appoint Baker Tilly China Certified Public Accountants (Baker Tilly
China) (Special General Partnership) as the auditor of financial report and internal
control of the Company for 2021.
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The company held the 2020 annual general meeting on May 18, 2021, and
considered and approved the proposal on the renewal of the appointment of the
accounting firm.
Explanation on the change of the accounting firm during the audit period
VII. Situations at Risk of Delisting
N/A
VIII. Bankruptcy and Reorganization Related Matters
N/A
IX. Major Litigation and Arbitration Matters
(1) Litigation and arbitration matters have been disclosed in temporary
announcements and there is no subsequent progress
All details refer to the announcement No. 2019-068 on August 14th 2019 and the
announcement No. 2019-075 on October 11th 2019.
（2）Litigation and arbitration that were not disclosed in the interim
announcement or that have follow-up progress
N/A
X. The Listed Company and Its Directors, Supervisors, Senior Managers,
Controlling Shareholders and Actual Controllers Are Suspected of Violations
of Laws and Regulations, Punishments and Rectifications
N/A
XI. Explanation on The Integrity of The Company and Its Controlling
Shareholder and Actual Controller During the Reporting Period
N/A
XII. Significant Related Transactions
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(1) Related Party Transactions Related to Daily Operations
A. Matters that have been disclosed in the interim announcement and have no
progress or change in subsequent implementation
N/A
B. Matters that have been disclosed in the interim announcement but have progress
or changes in subsequent implementation.
All details refer to the Announcement on the 2020 Annual Related Party
Transactions and the 2021 Annual Related Party Transactions Expectation (No. 2021-
025) on April 20th, 2021.
C. Matters not disclosed in the interim announcement
N/A
(2) Affiliated Transactions Arising from The Acquisition and Sale of Assets or
Equity
N/A
(3) Significant Connected Transactions Involving Joint Foreign Investment
A. Matters that have been disclosed in the interim announcement and have no
progress or change in subsequent implementation
All details refer to the announcement No. 2021-010 on February 9th 2021, the
announcement No. 2021-045 on May 8th, 2021, the announcement No. 2021-037 on
February 9th，the announcement No. 2021-060 on July 1st 2021.
B. Matters that have been disclosed in the interim announcement but have progress
or changes in subsequent implementation
N/A
C. Matters not disclosed in the interim announcement
N/A
(4) Credit And Debt Transactions with Related Parties
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N/A
(5) Financial business between the company and the financial company with
an associated relationship, the financial company controlled by the company and
the related party
N/A
(6) Others
N/A
XIII Significant Contracts and Their Performance
(1) Entrustment, Contracting and Leasing Matters
N/A
(2) Guarantee
External Guarantee Amount
Total amount of guarantees to subsidiaries during the reporting period 203,500,000.00
Total balance of guarantees to subsidiaries
124,385,133.81
at the end of the reporting period
Total Guarantee 124,385,133.81
The ratio of total guarantees of the company's net assets 6.27%
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(3) Entrusting others to manage cash assets
A. Entrusted Financial Management
a. Overall Situation of Entrusted Financial Management
Unit: Ten Thousand Yuan Currency: RMB
Type Resource Amount Outstanding Balance Overdue Amount Not Recovered
Bank wealth management products Idle raised funds 1,800.00 0 0
b. Individual Entrusted Financial Management
Unit: Ten Thousand Yuan Currency: RMB
Remuneration Annualized
Investment Actual Profit Actual Return
Trustee Type Amount Start Date End Date Sources Determination Rate of
Type or Loss on Investment
Method Return
Bank wealth
Capital raised Annualized yield
CCB 400 2018/11/21 2021/5/12 management 2.99% 29.541918 withdrawn
Guaranteed funds by bank
products
Bank wealth
Capital raised Annualized yield
CCB 1,400 2018/11/21 2021/8/30 management 2.89% 112.425753 withdrawn
Guaranteed funds by bank
products
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c. Provision for impairment of entrusted wealth management
N/A
Entrusted loans
N/A
XIV. Explanation of Other Major Events That Have a Significant Impact on
Investors' Value Judgments and Investment Decisions
N/A
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Zisun Annual Report of 2021
Chapter 7 Changes in Shares and Shareholders
I. Changes in Share Capital
(1) Statement Of Changes in Shares
1. Statement of Changes in Shares
Before this change Increase or decrease in this change（＋，－） After this change
Transfer Of
Proportion New Shares Bonus Proportion
Quantity Provident Fund Other Subtotal Quantity
(%) Issued Shares (%)
to Shares
Restricted shares 0 0
1 State holdings
2 State-owned legal person holding
3 Other domestic holdings
Of which: Shares held by domestic
non-state-owned legal persons
Of which: Domestic natural person
holding
4 Foreign holding
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Of which: Shares held by foreign legal
persons
Of which: Shares held by foreign
natural persons
Unrestricted shares 718,994,343 100 6,036,663 6,036,663 725,031,006 100
1 RMB ordinary shares 718,994,343 100 6,036,663 6,036,663 725,031,006 100
2 Domestically listed foreign capital
3 Overseas listed foreign shares
4 Others
Total number of shares 718,994,343 100 6,036,663 6,036,663 725,031,006 100
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Zisun Annual Report of 2021
2. Description of Changes in Shares
During the reporting period, 6,036,663 shares of Zisun 2019 Stock Option
Incentive Plan were exercised, and the total number of shares of the company increased
from 718,994,343 shares at the beginning of the period to 725,031,006 shares at the end
of the reporting period.
3. The impact of changes in shares on financial indicators such as earnings
per share and net assets per share in the last year and the latest period (if any)
During the reporting period, due to the exercise of 2019 Stock Option Incentive
Plan, the total number of shares of the company increased by 6,036,663 shares from
718,994,343 shares at the beginning of the period to 725,031,006 shares at the end of
the reporting period.
4. Other contents deemed necessary by the company or required by securities
regulators to disclose
N/A
(2) Changes in restricted shares
N/A
II. Securities Issuance and Listing
(1) Securities issuance as of the reporting period
N/A
(2) Changes in the total number of shares of the company and changes in
shareholder structure and changes in the company's asset and liability structure
N/A
(3) Existing internal staff shares
N/A
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III. Shareholders and Actual Controllers
(1) Total number of shareholders
1.Total number of common shareholders as of the end of the reporting period:
26,547
2. The total number of ordinary shareholders at the end of the previous month
before the disclosure date of the annual report ：29,337
3.The total number of preferred shareholders whose voting rights have been
restored by the end of the reporting period:0
4. The total number of preferred shareholders whose voting rights have been
restored at the end of the previous month before the disclosure date of the annual
report:0
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(2) As at the end of the reporting period, the shareholding situation of the top ten shareholders and the top ten tradable shareholders (or
shareholders without restrictions on sales) as of the end of the reporting period.
Situation Of the Top Ten Shareholders
quantity of shares at Proportion Restricted
Shareholder name (Full name) Changes in 2021
the end of the period (%) shares held
Mr. Guo Mao 0 265,758,863 36.65 0
Hong Kong Securities Clearing Company Limited 15,154,818 45,433,279 6.27 0
上海广岑投资中心（有限合伙） 0 44,924,880 6.20 0
兴业银行股份有限公司－天弘永利债券型证券投资基金 13,632,134 19,673,965 2.71 0
UBS AG 19,653,009 19,653,009 2.71 0
南京融京汇聚股权投资合伙企业（有限合伙） 0 17,600,013 2.43 0
中国建设银行股份有限公司－景顺长城环保优势股票型证券投资基金 -1,139,298 12,278,896 1.69 0
中国银行股份有限公司－景顺长城优选混合型证券投资基金 -1,947,495 9,827,582 1.36 0
MERRILLLYNCHINTERNATIONAL 7,114,792 9,114,710 1.26 0
施罗德投资管理（香港）有限公司－施罗德环球基金系列中国 A 股（交易所） 0 8,681,104 1.20 0
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Shareholdings Of the Top 10 Shareholders with Unrestricted Shareholding
Shareholder name (Full name) quantity of unrestricted shares held
Mr. Guo Mao 265,758,863
Hong Kong Securities Clearing Company Limited 45,433,279
上海广岑投资中心（有限合伙） 44,924,880
兴业银行股份有限公司－天弘永利债券型证券投资基金 19,673,965
UBSAG 19,653,009
南京融京汇聚股权投资合伙企业（有限合伙） 17,600,013
中国建设银行股份有限公司－景顺长城环保优势股票型证券投资基金 12,278,896
中国银行股份有限公司－景顺长城优选混合型证券投资基金 9,827,582
MERRILLLYNCHINTERNATIONAL 9,114,710
施罗德投资管理（香港）有限公司－施罗德环球基金系列中国 A 股（交易所） 8,681,104
Description of the special account for repurchase among the top ten shareholders
N/A
Explanation of the above-mentioned shareholders' entrusted voting rights, entrusted voting rights and abstention from voting
N/A
Explanation of the related relationship or concerted action of the above shareholders
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Zisun Annual Report of 2021
N/A
Description of preferred shareholders with restored voting rights and the number of shares they hold
N/A
(3) Strategic investors or general legal persons become the top 10 shareholders due to placement of new shares
N/A
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Zisun Annual Report of 2021
IV. Controlling Shareholders and Actual Controllers
(I) Controlling Shareholders
1. legal person
N/A
2. Natural Persons
Name Mr. Guo Mao
Nationality China
Whether to obtain residency in other countries or regions No
Main occupation and position Chairman Of Zisun
3. The company does not have a special explanation for controlling shareholders
N/A
4. Explanation on Changes of Controlling Shareholders during the Reporting
Period
N/A
5. Block diagram of property rights and control relationship between company and
controlling shareholder
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(2) Information about the actual controller
1. legal person
N/A
2. Natural Persons
Name Mr. Guo Mao
Nationality China
Whether to obtain residency in other countries or regions No
Main occupation and position Chairman Of Zisun
Domestic and overseas listed companies that have held controlling interest in the
past 10 years
N/A
3. Special explanation on the fact that the company has no actual controller
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Zisun Annual Report of 2021
N/A
4. Explanation on the change of the company's control during the reporting period
N/A
5. Block diagram of the property rights and control relationship between the
company and the actual controller
6. The actual controller controls the company through trust or other asset
management methods
N/A
(3) Other Information on Controlling Shareholders and Actual Controllers
N/A
V. The Controlling Shareholder or The Largest Shareholder of The Company and
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Zisun Annual Report of 2021
Its Persons Acting in Concert Have Accumulatively Pledged Shares That
Account for More Than 80% Of the Company's Shares Held by Them
N/A
VI. Other Legal Person Shareholders Holding More Than 10% Of the Shares
N/A
VII. Explanation on Share Restriction and Reduction
N/A
VII. Specific Implementation of Share Repurchase During the Reporting Period
N/A
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Zisun Annual Report of 2021
Chapter 9 Financial Report
Consolidated Balance Sheet
As at December 31, 2021
Prepared by: CHONGQING ZAISHENG TECHNOLOGY CO., LTD
Unit: Yuan Currency: CNY
Items As at December 31,2021 As at December 31,2020
Monetary funds 310,812,258.76 432,479,722.16
Settlement provisions
Lending funds
Held-for-trading financial assets 2,391,632.00 20,428,616.00
Derivative financial assets
Notes receivable 57,812,297.68 80,228,584.59
Accounts receivable 630,601,740.67 487,189,958.67
Receivables financing 82,675,886.76 94,794,793.11
Advances to suppliers 14,302,242.83 16,022,970.18
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables 22,564,580.85 29,863,885.12
Including: Interest receivable
Dividend receivable
Financial assets purchased under agreements to
resell
Inventories 178,193,155.62 154,512,208.69
Contract assets 13,133,663.80 9,821,763.55
Assets held for sale
Non-current assets due within one year
Other current assets 12,430,684.45 8,056,456.66
Total current assets 1,324,918,143.42 1,333,398,958.73
Non-current assets:
Disbursement of loans and advances
Debt investment
Other debt investments
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Zisun Annual Report of 2021
Long-term receivables
Long-term equity investments 83,817,327.91 39,794,148.03
Other equity instrument investment 4,350,000.00 600,000.00
Other non-current financial assets
Investment properties
Fixed assets 804,101,316.51 798,935,379.91
Construction in progress 147,696,378.50 12,589,767.15
Productive biological assets
Oil and gas assets
Right-of-use assets 31,004,504.23
Intangible assets 183,372,910.73 199,183,483.65
Development expenditures 8,283,905.12
Goodwill 280,180,513.05 280,180,513.05
Long-term deferred expenses 7,126,744.84 15,299,957.46
Deferred income tax assets 12,745,153.99 13,991,153.12
Other non-current assets 43,877,399.60 48,415,754.54
Total non-current assets 1,606,556,154.48 1,408,990,156.91
Total assets 2,931,474,297.90 2,742,389,115.64
Current liabilities:
Short-term borrowings 344,353,954.85 342,484,860.80
Borrowings from the Central Bank
Borrowing funds
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 19,085,011.09 28,333,230.21
Accounts payable 232,910,068.38 226,965,722.65
Advances from customers
Contract liabilities 21,960,749.50 27,769,100.54
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable 30,827,314.55 38,780,379.70
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Zisun Annual Report of 2021
Tax payable 14,569,705.01 18,361,636.35
Other payables 20,172,881.81 11,718,151.31
Including: Interest payable 49,305.55
Dividends payable
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within a year 3,291,571.22
Other current liabilities 54,352,356.88 54,160,084.65
Total current liabilities 741,523,613.29 748,573,166.21
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings 50,000,000.00
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities 19,985,845.41
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 71,716,919.44 75,920,386.03
Deferred income tax liabilities 17,407,696.89 19,741,032.58
Other non-current liabilities
Total non-current liabilities 159,110,461.74 95,661,418.61
Total liabilities 900,634,075.03 844,234,584.82
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) 725,031,006.00 718,994,343.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserves 477,168,526.93 434,828,330.55
Less: treasury stock 7,847,983.94 15,681,209.18
Other comprehensive income
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Special reserves
Surplus reserves 100,039,481.14 91,006,800.95
General risk preparation
Undistributed profits 688,446,262.59 592,105,809.35
Total owners' equities attributable to the owners of
1,982,837,292.72 1,821,254,074.67
parent company
Minority equity 48,002,930.15 76,900,456.15
Total owners’ equity (or shareholders' equity) 2,030,840,222.87 1,898,154,530.82
Total liabilities and owners’ equity (or
2,931,474,297.90 2,742,389,115.64
shareholders' equity)
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Zisun Annual Report of 2021
Consolidated Income Statement
January to December in 2021
Unit: Yuan Currency: CNY
Items 2021 2020
I. Total operating revenue 1,619,710,842.66 1,884,228,703.44
Including: Operating revenue 1,619,710,842.66 1,884,228,703.44
Interest income
Premiums earned
Fee and commission income
II. Total operating cost 1,387,931,782.21 1,429,334,938.02
Including: operating costs 1,118,367,804.01 1,167,101,588.03
Interest expenses
Fee and commission expense
Surrender value
Net amount of compensation payout
Net reserves for insurance liabilities
Policy holder dividend expense
Reinsurance expenses
Taxes and surcharges 15,977,645.45 19,161,508.44
Selling and distribution expenses 43,617,359.04 48,811,269.44
General and administrative expenses 107,248,428.48 107,164,520.12
Research and development expenditures 89,510,799.50 72,901,869.46
Financial expenses 13,209,745.73 14,194,182.53
Including: interest expenses 9,896,426.11 11,069,698.09
Interest income 2,879,879.64 2,329,029.40
Plus: other incomes 39,611,932.99 19,668,353.70
Income from investment (loss expressed with
8,917,050.80 7,576,882.93
“-”)
Including: Income from investment of joint
7,497,374.09 7,757,245.82
venture and cooperative enterprise
Income from derecognition of financial
assets measured at amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed
with “-”)
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Zisun Annual Report of 2021
Income from fair value changes (loss
-36,984.00 1,541,374.19
expressed with “-”)
Credit impairment losses (loss expressed
-8,850,016.29 -14,686,997.60
with “-”)
Assets impairment losses (loss expressed
-1,394,658.13 651,785.25
with “-”)
Income from disposal of assets (loss
-127,483.11 747,450.43
expressed with “-”)
III. Operating profits (loss expressed with “-”) 269,898,902.71 470,392,614.32
Plus: non-operating income 933,194.04 979,922.79
Less: non-operating expenditure 800,342.15 714,688.75
IV. Total profits (total loss expressed with “-”) 270,031,754.60 470,657,848.36
Less: income tax expenses 18,728,984.29 76,110,628.24
V. Net profits (net loss expressed with “-”) 251,302,770.31 394,547,220.12
(I) Classified by business continuity
1.Net profits from ongoing operation (net loss
251,302,770.31 394,547,220.12
expressed with “-”)
2.Net profits from discontinuing operation (net
loss expressed with “-”)
(II) Classified by ownership
1.Net profit attributable to the shareholders of
249,471,352.03 359,677,001.99
parent company (net loss expressed with “-”)
2.Minority interests (net loss expressed with
1,831,418.28 34,870,218.13
“-”)
VI. Net of tax of other comprehensive income
(I) Net amount of after-tax other comprehensive
income attributable to the owners of the
parent company
1. Other comprehensive income that can't be
reclassified into profit and loss
(1) Remeasure the variation of net indebtedness or
net asset of defined benefit plan
(2) Other comprehensive income that can't be
reclassified into profit and loss in the invested
enterprise under equity method
(3) Fair value change of other equity instrument
investments
(4) Fair value change of enterprise credit risks
2. Other comprehensive income that will be
reclassified into profit and loss
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Zisun Annual Report of 2021
(1) Other comprehensive income that will be
reclassified into profit and loss in the invested
enterprise under equity method
(2) Fair value change of other debt investments
(3) Amount of financial assets reclassified into
other comprehensive income
(4) Provision for credit impairment of other debt
investments
(5) Cash flow hedging reserve
(6) Translation reserve
(7) Others
(II) Net of tax of other comprehensive income
attributable to the minority shareholders
VII. Total comprehensive income 251,302,770.31 394,547,220.12
(I) Total comprehensive income belonging to
249,471,352.03 359,677,001.99
parent company
(II) Total comprehensive income belonging to
1,831,418.28 34,870,218.13
minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share) 0.3461 0.5037
(II) Diluted earnings per share (Yuan/share) 0.3438 0.4971
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Zisun Annual Report of 2021
Consolidated Statement of Cash Flows
January to December in 2021
Unit: Yuan Currency: CNY
Items 2021 2020
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 1,228,519,393.00 1,553,552,497.86
Net increase of customer deposit and deposit from
other banks
Net increase of borrowings from central bank
Net increase of borrowing funds from other
financial institutions
Cash from obtaining original insurance contract
premium
Net cash received from reinsurance business
Net increase in the deposits and investment of
insured
Cash from interest, handling charges and
commissions
Net increase of borrowing funds
Net increase of repurchase of business funds
Net cash from acting trading securities
Refund of tax and levies 73,126,199.17 40,534,473.79
Other cash received related to operating activities 90,688,737.48 69,148,583.57
Subtotal cash inflows from operating activities 1,392,334,329.65 1,663,235,555.22
Cash paid for goods purchased and services
861,091,149.59 923,564,877.51
received
Net increase of customer loans and advances
Net increase of amount due from central bank and
interbank
Cash paid for original insurance contract claims
payment
Net increase of lending funds
Cash paid for interest, handling charges and
commissions
Cash paid for policy dividend
Cash paid to and for employees 185,877,779.40 159,745,102.82
Taxes and fees paid 103,397,485.56 184,765,044.03
Other cash paid related to operating activities 93,195,236.13 103,890,201.60
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Zisun Annual Report of 2021
Subtotal cash outflows from operating activities 1,243,561,650.68 1,371,965,225.96
Net cash flows from operating activities 148,772,678.97 291,270,329.26
II. Cash flows from investment activities:
Cash from investment withdrawal 18,000,000.00 274,250,000.00
Cash from investment income 1,817,461.59 2,242,958.63
Net cash received from disposal of fixed assets,
75,610.00 956,990.00
intangible assets and other long-term assets
Net cash from disposal of subsidiaries and other
business units
Other cash received related to investment
activities
Subtotal cash inflows from investment activities 19,893,071.59 277,449,948.63
Cash paid for purchase of fixed assets, intangible
158,847,282.49 94,206,030.10
assets and other long-term assets
Cash paid for investments 75,775,256.15 213,950,000.00
Net increase in hypothecated loan
Net cash paid for obtaining subsidiaries and other
business units
Other cash paid related to investment activities 132,000,000.00
Subtotal cash outflows from investment activities 234,622,538.64 440,156,030.10
Net cash flow from investment activities -214,729,467.05 -162,706,081.47
III. Cash flows from financing activities:
Cash from absorption of investments 51,626,545.64 37,085,076.08
Including: cash received from subsidies’
9,009,500.00 1,472,750.00
absorption of minority shareholders’ investment
Cash received from borrowings 430,829,000.00 473,625,052.72
Other cash received related to financing activities 7,847,983.94
Subtotal cash inflows from financing activities 490,303,529.58 510,710,128.80
Cash repayments of amounts borrowed 376,212,202.72 410,984,550.00
Cash paid for distribution of dividends, profits or
155,390,093.96 83,378,630.70
interest expenses
Including: dividends and profits paid by
subsidiaries to minority shareholders
Other cash paid related to financing activities 5,027,581.16 35,779,935.92
Subtotal cash outflows from financing activities 536,629,877.84 530,143,116.62
Net cash flows from financing activities -46,326,348.26 -19,432,987.82
IV. Impact of exchange rate movements on cash and -1,326,818.37 -3,446,228.00
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Zisun Annual Report of 2021
cash equivalents
V. Net increase of cash and cash equivalents -113,609,954.71 105,685,031.97
Plus: beginning balance of cash and cash
416,019,515.53 310,334,483.56
equivalents
VI. Ending balance of cash and cash equivalents 302,409,560.82 416,019,515.53
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