Core Viewpoint - The article highlights the significant growth of Juhua Co., Ltd. in the refrigerant industry, driven by rising product prices and stable sales volumes, positioning the company as a leader in the domestic and global markets for refrigerants and cooling liquids [2][3]. Group 1: Company Performance - Juhua Co., Ltd. reported a revenue of 13.33 billion yuan in the first half of 2025, marking a year-on-year increase of 10.36% [2]. - The net profit attributable to shareholders reached 2.05 billion yuan, reflecting a substantial year-on-year growth of 146.97% [2]. - Key performance drivers included the recovery in prices of core products, particularly fluorinated refrigerants, and stable growth in production and sales volumes, leading to increased gross margins and profits [2]. Group 2: Industry Context - Refrigerants are essential materials for air conditioning, refrigeration, and cold chain logistics, and are increasingly important in emerging applications such as data center liquid cooling and battery cooling [3]. - China has become a core production base for refrigerants, with Juhua Co., Ltd. recognized as an industry benchmark and a key player in the global fluorinated refrigerant supply chain [3]. Group 3: Product Development and Innovation - Juhua Co., Ltd. has developed a complete product matrix in the cooling liquid sector, including JHT (high boiling point), JHLO (low viscosity), and JX (immersion type) cooling liquids [4]. - The JX series immersion cooling liquid has successfully entered the supply chains of major tech companies like Alibaba and Tencent, demonstrating Juhua's technological and market breakthroughs [4]. - The company has achieved a significant technological breakthrough with the JX series perfluoropolyether-based cooling liquids, overcoming previous foreign monopolies and filling a domestic gap in high-end thermal management materials [5]. Group 4: Future Outlook - Juhua Co., Ltd. is expanding its refrigerant products into new fields such as data center liquid cooling and battery cooling, while also accelerating the development of low GWP refrigerants [5]. - The upcoming Sixth Thermal Management Industry Conference and Expo in December will focus on diverse thermal management materials and solutions, providing a platform for industry collaboration [5].

（编辑 何成浩） 证券日报网讯 8月27日晚间，巨化股份发布公告称，2025年半年度公司实现营业收入13，331，461， 429.24元，同比增长10.36%；归属于上市公司股东的净利润为2，050，820，025.28元，同比增长 146.97%。 ...

Financial Performance - Shandong Gold reported a net profit of 2.808 billion yuan for the first half of 2025, a year-on-year increase of 102.98%, with operating revenue of 56.766 billion yuan, up 24.01% [1] - Juhua Co. achieved a net profit of 2.051 billion yuan, marking a 146.97% increase, with operating revenue of 13.331 billion yuan, up 10.36% [2] - China Aluminum's net profit was 7.071 billion yuan, a slight increase of 0.81%, with operating revenue of 116.392 billion yuan, up 5.12% [5] - Huajin Technology reported a net profit of 1.889 billion yuan, a 46.3% increase, with operating revenue of 83.939 billion yuan, up 113.06% [8] - Transsion Holdings experienced a net profit decline of 57.48%, totaling 1.213 billion yuan, with operating revenue of 29.077 billion yuan, down 15.86% [9] - China Satellite Communications reported a net profit of 181 million yuan, a decrease of 55.59%, with operating revenue of 1.221 billion yuan, up 6.33% [7] - Honghe Technology's net profit surged to 87.375 million yuan, a staggering increase of 10587.74%, with operating revenue of 550 million yuan, up 35% [12] - China Life Insurance reported a net profit of 40.931 billion yuan, a 6.9% increase, with operating revenue of 239.235 billion yuan, up 2.1% [15] - China Pacific Insurance reported a net profit of 26.53 billion yuan, a 16.9% increase, with total operating revenue of 324.014 billion yuan, up 10.8% [14] Corporate Actions - Huayu Automotive plans to acquire a 49% stake in SAIC Qingtao for 206 million yuan, marking its entry into the solid-state battery sector [4] - Debang Lighting intends to acquire at least 51% of Jiali Co. through cash transactions, which is expected to constitute a major asset restructuring [6] - Xinjie Electric plans to invest 800 million yuan in a new robot intelligent control system production project [13] - Hehui Optoelectronics announced a plan to reduce its shareholding by up to 2% through block trading [10][16]

Core Insights - The company reported significant growth in its financial performance for the first half of 2025, with total revenue reaching 13.33 billion yuan, a year-on-year increase of 10.36%, and net profit attributable to shareholders rising by 146.97% to 2.05 billion yuan [1][2] Financial Performance - The total profit for the company was 2.61 billion yuan, reflecting a year-on-year growth of 48.27% [1] - The average price of refrigerants increased by 61.88% in the first half of 2025, reaching 39,400 yuan per ton [1] Industry Context - The company's performance is closely linked to the implementation of quota systems for refrigerants, with the second-generation refrigerants undergoing a rapid phase-out and the third generation entering a production freeze period [1][2] - The production quota for HCFC-22 in 2025 is set at 38,900 tons, accounting for 26.10% of the national total, while HFCs production quota is 297,800 tons, representing 39.33% of the same category [3] Strategic Initiatives - The company is actively building new business models for refrigerants and enhancing its competitive position globally by improving interactions with downstream manufacturers and optimizing resource allocation [3][4] - Research and development investments totaled 603 million yuan, with fixed asset investments reaching 1.99 billion yuan during the reporting period [4] Future Outlook - The company anticipates that differences in baseline quotas and production capacities among industry players will lead to varying economic performance, and it may pursue quota trading to enhance industry consolidation and efficiency [4]

Mergers and Acquisitions - Huayu Automotive plans to acquire 49% stake in SAIC Qingtao for 206 million yuan [2] - Debang Lighting intends to gain control of Jiali Co. by acquiring at least 51% of its shares, expected to constitute a major asset restructuring [3] Financial Performance - Honghe Technology reported a net profit of 87.3751 million yuan for the first half of 2025, a year-on-year increase of 10,587.74% [4] - China Pacific Insurance achieved a net profit of 26.53 billion yuan in the first half of 2025, up 16.9% year-on-year [5] - Juhua Co. reported a net profit of 2.051 billion yuan, reflecting a 146.97% increase year-on-year [6] - Transsion Holdings experienced a net profit decline of 57.48%, reporting 1.213 billion yuan for the first half of 2025 [7] - China Life Insurance's net profit reached 40.931 billion yuan, a 6.9% increase year-on-year [8] - Shandong Gold reported a net profit of 2.808 billion yuan, up 102.98% year-on-year, and plans to distribute a cash dividend of 1.8 yuan per 10 shares [9] - China Aluminum's net profit was 7.071 billion yuan, a slight increase of 0.81% year-on-year [10] Shareholding Changes - Hehui Optoelectronics announced that Shanghai Integrated Circuit Industry Investment Fund plans to reduce its stake by up to 2% [12] - Cambridge Technology's controlling shareholder reduced its stake by 1.8 million shares through block trading [13]

智通财经APP讯，巨化股份(600160.SH)披露2025年半年度报告，报告期公司实现营收133.31亿元，同比 增长10.36%;归母净利润20.51亿元，同比增长146.97%;扣非净利润20.26亿元，同比增长155.23%;基本每 股收益0.760元。 ...

格隆汇8月27日丨巨化股份(600160.SH)公布半年度报告，报告期，实现营业收入133.31亿元，同比增长 10.36%；实现利润总额26.07亿元，同比增长148.27%；实现归母净利润20.51亿元，同比增长146.97%。 ...

Core Viewpoint - The financial risk assessment report for the first half of 2025 indicates that Zhejiang Juhua Co., Ltd. has effectively managed its deposits with Juhua Group Financial Co., Ltd., ensuring that associated risks are controllable and that the financial company operates within regulatory requirements [1][12]. Group 1: Financial Company Overview - Juhua Group Financial Co., Ltd. was established with a registered capital of 500 million RMB, with ownership distributed among Juhua Group Co., Ltd. (50%), Zhejiang Juhua Co., Ltd. (40%), and Juhua Quzhou Public Co., Ltd. (10%) [1]. - The registered capital has increased to 1.2 billion RMB as of June 8, 2023, with the current ownership structure being Juhua Group Co., Ltd. (54%), Zhejiang Juhua Co., Ltd. (46%) [3][9]. Group 2: Financial Company Operations - As of June 30, 2025, the financial company reported total assets of 7.322 billion RMB, net assets of 1.419 billion RMB, operating income of 49 million RMB, member unit deposit balance of 5.859 billion RMB, and loan balance of 4.381 billion RMB [9]. - The financial company has maintained a focus on liquidity risk control, with no incidents of deposit withdrawals or inability to meet debt obligations reported [10]. Group 3: Risk Management and Internal Controls - The financial company has established a comprehensive internal control system, including a risk management committee and an audit committee, to oversee operations and ensure compliance with regulations [4][8]. - A total of over 120 business management measures have been developed to cover all business types, ensuring a robust framework for loan management and risk assessment [5][6]. Group 4: Regulatory Compliance and Performance - As of June 30, 2025, all regulatory indicators for the financial company met the required standards, reflecting its adherence to the guidelines set forth by the regulatory authorities [10]. - The company has implemented a risk control system that includes daily monitoring of key risk indicators, ensuring timely intervention when thresholds are exceeded [11].

[Important Notice](index=2&type=section&id=Important%20Notice) The unaudited semi-annual report, guaranteed by the board and management, confirms no profit distribution or irregular fund occupations/guarantees, and advises on forward-looking statement risks [Overview of Important Notice](index=2&type=section&id=Overview%20of%20Important%20Notice) The board and management guarantee the report's truthfulness and completeness; it is unaudited, with no profit distribution or irregular fund occupations/guarantees - The company's board, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness[4](index=4&type=chunk) - This semi-annual report is unaudited[6](index=6&type=chunk) - No profit distribution or capital reserve conversion to share capital will occur this reporting period[7](index=7&type=chunk) - There are no non-operating fund occupations by controlling shareholders or other related parties[9](index=9&type=chunk) - There are no external guarantees provided in violation of prescribed decision-making procedures[9](index=9&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides detailed definitions of common terms used in the report, covering company names, industry-specific terminology, key raw materials, and main product categories [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section defines common terms, including company and subsidiary names, industry-specific terms like Montreal Protocol and various refrigerants, key raw materials, and main product categories with their uses - Detailed definitions include 'Company' or 'the Company' referring to Zhejiang Juhua Co., Ltd., and 'Controlling Shareholder' referring to Juhua Group Corporation[13](index=13&type=chunk) - Industry-specific terms are explained, including the Montreal Protocol, ODS (Ozone Depleting Substances), GWP (Global Warming Potential), and the meanings and characteristics of different generations of refrigerants such as CFCs, HCFCs, HFCs, and HFOs[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - Key purchased raw materials are listed, such as fluorite, industrial salt, calcium carbide, VCM, benzene, sulfur, and glycerin, along with their uses[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Main products are categorized, including fluorochemical raw materials (e.g., AHF, methane chloride), refrigerants (e.g., R22, R32, R134a), fluoropolymer materials (e.g., PTFE, PVDF), fluorinated fine chemicals (e.g., octafluoropentanol, trifluoroacetic acid), food packaging materials (e.g., VDC, PVDC), petrochemical materials, and basic chemical products[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Section II Company Profile and Key Financial Indicators](index=13&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and presents key financial data and indicators for the reporting period, highlighting significant performance improvements [Company Information](index=13&type=section&id=Company%20Information) This section details the company's basic registration information, contact details, website, and stock listing, noting no changes during the reporting period - The company's Chinese name is Zhejiang Juhua Co., Ltd., with stock abbreviation Juhua Co.[23](index=23&type=chunk) - The company's legal representative is Zhou Liyang, and the Board Secretary is Liu Yunhua[23](index=23&type=chunk)[24](index=24&type=chunk) - The company's registered and office addresses are both in Kecheng District, Quzhou City, Zhejiang Province, and its website is http://www.jhgf.com.cn[25](index=25&type=chunk) - The company's A-shares are listed on the Shanghai Stock Exchange, with stock code **600160**[27](index=27&type=chunk) [Key Accounting Data and Financial Indicators](index=13&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the company's key accounting data and financial indicators for H1 2025, showing strong growth in revenue, profit, and cash flow, primarily due to recovering refrigerant prices H1 2025 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (CNY) | Prior Period (Jan-Jun) Adjusted (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,331,461,429.24 | 12,080,139,457.80 | 10.36 | | Total Profit | 2,607,041,814.18 | 1,048,173,537.99 | 148.72 | | Net Profit Attributable to Shareholders of Listed Company | 2,050,820,025.28 | 830,391,406.00 | 146.97 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 2,026,051,219.71 | 793,824,853.27 | 155.23 | | Net Cash Flow from Operating Activities | 2,665,670,072.93 | 605,112,955.59 | 340.52 | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 19,237,459,332.35 | 17,849,099,632.52 | 7.78 | | Total Assets (Period-End) | 32,434,770,588.15 | 28,523,635,760.99 | 13.71 | H1 2025 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period Adjusted | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.760 | 0.308 | 146.75 | | Diluted Earnings Per Share (CNY/share) | 0.760 | 0.308 | 146.75 | | Basic EPS Excluding Non-Recurring Gains/Losses (CNY/share) | 0.750 | 0.294 | 155.10 | | Weighted Average Return on Net Assets (%) | 10.86 | 4.91 | Increased by 5.95 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains/Losses (%) | 10.76 | 4.81 | Increased by 5.95 percentage points | - This period, the company merged Gansu Juhua New Material Co., Ltd. under common control, leading to retrospective adjustments of prior period data[30](index=30&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=14&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the company's H1 2025 non-recurring gains and losses, totaling **CNY 24.77 million**, and explains the reclassification of certain government subsidies and tax items as recurring H1 2025 Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 212,680.95 | | Government Subsidies Recognized in Current Profit/Loss (Excluding) | 38,536,129.56 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-Financial Enterprises | -1,784,516.01 | | Gains/Losses from Entrusted Investments or Asset Management | 1,031,183.37 | | Net Profit/Loss of Subsidiaries from Beginning of Period to Merger Date Arising from Business Combinations Under Common Control | -9,446,507.51 | | Other Non-Operating Income and Expenses Apart from the Above | -1,455,307.37 | | Less: Income Tax Impact | 5,331,980.92 | | Minority Interest Impact (After Tax) | -3,007,123.50 | | Total | 24,768,805.57 | Items Identified as Recurring Gains and Losses | Item | Amount Involved (CNY) | Reason | | :--- | :--- | :--- | | Amortization of Government Subsidies | 16,961,042.75 | Recognized in current profit/loss, closely related to the company's normal operations, compliant with national policies, enjoyed according to established standards, and has a continuous impact on the company's profit/loss | | Individual Income Tax Withholding Service Fees | 603,236.65 | Recognized in current profit/loss, closely related to the company's normal operations, compliant with national policies, enjoyed according to established standards, and has a continuous impact on the company's profit/loss | | Additional Deduction of Input VAT | 31,200,773.78 | Recognized in current profit/loss, closely related to the company's normal operations, compliant with national policies, enjoyed according to established standards, and has a continuous impact on the company's profit/loss | | Total | 48,765,053.18 | / | [Section III Management Discussion and Analysis](index=15&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the company's operating performance, industry trends, competitive landscape, and key financial results for the reporting period [I. Explanation of the Company's Industry and Main Business During the Reporting Period](index=15&type=section&id=I.%20Explanation%20of%20the%20Company's%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) This section details the characteristics, challenges, opportunities, and trends of the chemical industry, particularly for fluororefrigerants, and outlines the company's diverse main business and leading market position - The company's main business belongs to the chemical raw materials and chemical products manufacturing industry, covering basic chemicals, fluorochemicals, food packaging materials, and petrochemicals[35](index=35&type=chunk) - The chemical industry is characterized by high entry barriers, sensitivity of operating performance to product/raw material prices, and strong cyclicality[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Trends in the fluororefrigerant business include continuous optimization of supply-demand dynamics, diversification of market structure, urgent development of substitutes, increasing industry concentration, and continued recovery in product prices[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - The company is a leading domestic advanced manufacturing base for high-performance fluorochemicals and chlor-alkali new materials, possessing a complete fluorochemical industry chain[68](index=68&type=chunk) - During the reporting period, fluororefrigerant prices continued their recovery, while non-refrigerant products faced intense competition and slight price declines[70](index=70&type=chunk) [(1) Industry Overview](index=15&type=section&id=(1)%20Industry%20Overview) This section analyzes the chemical industry's high barriers, price sensitivity, and cyclicality, noting current overcapacity and intense competition, but also opportunities for green and smart transformation, with fluororefrigerants showing stable price increases under quota management - The chemical industry is capital and technology-intensive, with high entry barriers influenced by safety, environmental protection, and industrial policies[36](index=36&type=chunk)[37](index=37&type=chunk) - Industry operating performance is highly sensitive to fluctuations in product prices, raw material prices, operating rates, and sales ratios, exhibiting strong cyclicality[38](index=38&type=chunk)[39](index=39&type=chunk) - In H1 2025, industry capacity utilization remained low (**72.7%**, a **3.7 percentage point YoY decrease**), product prices continued to fall, total profits declined, and the issue of increased production without increased profit was prominent[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - Under the quota system, the fluororefrigerant industry's supply-demand structure continues to optimize, market structure diversifies, and product prices maintain a steady upward trend[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) - The HFCs quota system has led to fundamental industry changes, including the reduction of excess capacity, recovery of product prices from low levels, and the gradual formation of functional agent attributes and a global 'franchise' business model 'gene'[61](index=61&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) [(2) Main Business Operations](index=24&type=section&id=(2)%20Main%20Business%20Operations) The company, a leading fluorochemical and chlor-alkali new materials base, boasts a complete fluorochemical value chain and diverse product lines, with fluororefrigerant prices recovering while non-refrigerant products face intense competition - The company is a leading domestic advanced manufacturing base for high-performance fluorochemicals and chlor-alkali new materials, possessing a complete fluorochemical industry chain[68](index=68&type=chunk) - Its product lines cover basic chemicals, specialty chemicals, new refrigerants (coolants), specialty polymers, and functional materials, with broad applications[69](index=69&type=chunk) - During the reporting period, fluororefrigerant prices continued their recovery, while non-refrigerant products faced intense competition and slight price declines[70](index=70&type=chunk) - The company's main product output increased by **5.12% YoY**, external sales volume increased by **6.81% YoY**, and operating revenue increased by **27.29% YoY**[83](index=83&type=chunk)[84](index=84&type=chunk) [(3) Main Business Model](index=37&type=section&id=(3)%20Main%20Business%20Model) The company operates on an integrated 'R&D + Procurement + Production + Sales' model, focusing on fluorochemicals, and strictly adheres to national production quotas for its core second and third-generation fluororefrigerants, reflecting a 'global franchise' approach - The company adopts an 'R&D + Procurement + Production + Sales' business model, ensuring raw material supply through bidding and agreement procurement, organizing production according to plans, and selling products via direct sales and distribution[97](index=97&type=chunk) - The company has a technology center responsible for R&D of new products, technologies, processes, materials, and equipment to meet its development needs[98](index=98&type=chunk) - The company has formed a complete fluorochemical industry chain with fluorochemicals at its core and highly synergistic related chemical industries, possessing specialized and intensive operational advantages[100](index=100&type=chunk) - The company's core products, second and third-generation fluororefrigerants (HCFCs, HFCs), are produced and sold according to nationally approved production quotas (global franchise rights)[101](index=101&type=chunk) [(4) Market Position](index=38&type=section&id=(4)%20Market%20Position) The company holds a leading position in domestic fluorochemicals, globally dominates fluororefrigerants and chloride raw materials, especially in third-generation HFCs, and leads nationally in fluoropolymer materials and globally in specialized chlor-alkali new materials - The company's core fluorochemical business holds a leading position domestically[102](index=102&type=chunk) - Fluororefrigerants and chloride raw materials hold a global leading position, with an even more prominent global leadership in the capacity and production quotas (nationally approved production volume) of mainstream third-generation fluororefrigerants (HFCs)[102](index=102&type=chunk) - Fluoropolymer materials are in a nationally leading position[102](index=102&type=chunk) - Specialty chlor-alkali new materials (VDC and PVDC industry chain) hold a global leading position[102](index=102&type=chunk) [(5) Competitive Strengths and Weaknesses](index=38&type=section&id=(5)%20Competitive%20Strengths%20and%20Weaknesses) As a fluorochemical leader, the company benefits from scale, integration, and a quota-driven fluororefrigerant business, but faces challenges in product structure optimization, R&D investment, and high operational costs in Zhejiang - As a fluorochemical leader, the company has formed distinctive industrial competitive advantages, including product scale, integrated industry chain, high integration of core and other industries, and park-based intensive operations[103](index=103&type=chunk) - Under supply constraints, the fluororefrigerant business has seen continuously rising prices and strengthening profitability[103](index=103&type=chunk) - Product structure needs optimization, with non-fluororefrigerant businesses undergoing deep adjustments, resulting in low product prices and profitability[104](index=104&type=chunk) - Technological innovation capabilities and levels need strengthening, with a significant gap remaining compared to world-class enterprises in R&D investment and technical R&D optimization capabilities[104](index=104&type=chunk) - Some factor costs are high, such as the relative scarcity of natural resources in Zhejiang Province, human resources, and environmental protection costs, which impact the company's operational cost control and project development[104](index=104&type=chunk) [(6) Key Performance Drivers](index=38&type=section&id=(6)%20Key%20Performance%20Drivers) The company's significant performance growth was primarily driven by the sustained recovery in fluororefrigerant prices and stable increases in main product output and sales, with non-refrigerant products having limited overall impact - The company's significant performance growth is primarily due to the sustained recovery in prices of its core fluororefrigerant products and stable increases in the output and sales of its main products, leading to higher gross profit and increased overall profit from main operations[105](index=105&type=chunk) - The sustained recovery in fluororefrigerant product prices and significant increase in gross profit are mainly attributed to the quota system, sufficient digestion of factory and channel inventories, strong downstream demand, and improved industry ecology and competitive order[106](index=106&type=chunk) - Achieving stable production of main production facilities and increased output and sales volume laid a solid foundation for the company's increased production, quality improvement, and efficiency gains[106](index=106&type=chunk) - Non-refrigerant chemical products generally faced 'strong supply and weak demand,' intense competition, falling prices, and a year-on-year decline in profitability, but had a minor impact on the company's overall performance[106](index=106&type=chunk) - Raw material prices, product mix adjustments, and expenses also had some impact on the company's performance[106](index=106&type=chunk) [II. Discussion and Analysis of Operations](index=39&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) Despite a challenging chemical industry, the company's fluororefrigerant business thrived under quota management, driving significant profit growth and mitigating cyclicality, achieved through refined operations, innovation, and value creation - The chemical raw materials and chemical products manufacturing industry, where the company operates, continues to suffer from capacity expansion, weak demand, 'strong supply and weak demand,' intensified 'involutionary' competition, and deteriorating industry operating quality[108](index=108&type=chunk) - Under production quota constraints, the company's fluororefrigerant business continued its price recovery from the 'involutionary' competition low, leading to significant performance growth and counter-cyclical upward movement, following 2024[108](index=108&type=chunk)[110](index=110&type=chunk) H1 2025 Key Operating Performance | Indicator | Amount | | :--- | :--- | | Operating Revenue | 13.31 billion CNY | | YoY Growth | 10.36% | | Total Profit | 2.61 billion CNY | | YoY Growth | 148.27% | | Net Profit Attributable to Parent Company | 2.05 billion CNY | | YoY Growth | 146.97% | - The company adhered to the general principle of 'seeking progress while maintaining stability, promoting stability through progress, taking proactive action, and seizing opportunities,' vigorously implementing annual operating targets and the '2025 Quality and Efficiency Enhancement and High Returns Special Action Plan,' resulting in significant improvements in operating quality and efficiency, and steady growth in stock market value[110](index=110&type=chunk) [(1) Analysis of Profit/Loss Factors](index=40&type=section&id=(1)%20Analysis%20of%20Profit/Loss%20Factors) In H1 2025, the company achieved a total profit of **CNY 2.61 billion**, primarily driven by a **CNY 2.13 billion** increase from fluororefrigerant price hikes, despite offsetting factors like falling petrochemical material prices and rising raw material costs - From January to June 2025, total profit reached **CNY 2.61 billion**, with profit-increasing factors totaling **CNY 2.90 billion** and profit-decreasing factors totaling **CNY 1.34 billion**, resulting in a net profit increase of **CNY 1.56 billion**[111](index=111&type=chunk) - Increased prices of main products contributed **CNY 2.20 billion** to profit, with fluororefrigerant products accounting for **CNY 2.13 billion**[112](index=112&type=chunk) - Decreased prices of main raw materials and energy in the cost of sales of main products contributed **CNY 0.39 billion** to profit[112](index=112&type=chunk) - Decreased sales prices of main products reduced profit by **CNY 0.33 billion**, with petrochemical materials accounting for **CNY 0.21 billion**[114](index=114&type=chunk) - Increased prices of main raw materials in the cost of sales of main products reduced profit by **CNY 0.38 billion**, primarily due to glycerin (**CNY 0.19 billion**), sulfur (**CNY 0.09 billion**), AHF (**CNY 0.07 billion**), and fluorite powder (**CNY 0.03 billion**)[114](index=114&type=chunk) [(2) Key Operating Characteristics](index=41&type=section&id=(2)%20Key%20Operating%20Characteristics) The company achieved stable production, increased sales, and revenue growth by optimizing resource allocation, established a new fluororefrigerant ecosystem, actively combated illegal ODS activities, boosted R&D investment, advanced fixed asset projects, and enhanced shareholder value - The company strengthened economic operation analysis of its industry chain and efficient resource allocation, achieving a **5.12% YoY increase** in main product output, a **6.81% YoY increase** in external sales volume, and a **27.29% YoY increase** in operating revenue[117](index=117&type=chunk) - The refrigerant marketing center's functions were improved and enhanced, implementing a production-sales separation, centralized decision-making, and intensive operation model for the company's fluororefrigerant industry chain, initially forming a business model and industry environment adapted to the quota system[118](index=118&type=chunk) - As the national ODS compliance and anti-illegal fund management unit, the company collaborates with national law enforcement agencies to maintain a high-pressure crackdown on illegal production, use, leakage, and emission of ozone-depleting substances and hydrofluorocarbons[118](index=118&type=chunk) - R&D investment totaled **CNY 0.60 billion**, with **32 technical patent applications** accepted and **25 patents granted** to the company and its subsidiaries[119](index=119&type=chunk) - Fixed asset investment reached **CNY 1.99 billion**, and the Gansu Juhua High-Performance Fluorine-Chlorine New Material Integration Project commenced full-scale construction[120](index=120&type=chunk) - The company actively implemented the 'Company's 2025 Special Action Plan for Quality and Efficiency Enhancement and High Returns,' achieving significant performance growth and seven consecutive years of steady stock price increases[121](index=121&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=43&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company has evolved into a global fluorochemical leader, boasting integrated industrial clusters, absolute leading production quotas for fluororefrigerants, a comprehensive product matrix, and dominant positions in fluoropolymers, fine chemicals, and novel food packaging materials, supported by strong R&D, brand, and operational advantages - The company has gradually transformed from a basic chemical enterprise into a leading fluorochemical enterprise in China, joining the ranks of global fluorochemical leaders and becoming a leading domestic advanced manufacturing base for fluorochlorine new materials[122](index=122&type=chunk) - The company possesses globally leading fluororefrigerant production quotas, with HCFC-22 production quota accounting for **26.10%** of the national total, and HFCs production quota accounting for **39.33%** of the national total for similar varieties[126](index=126&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - The company leads domestically in fluoropolymer varieties and capacity, with total capacities for TFE, HFP, VDF, PTFE, FEP, FKM, PVDF, and ETFE ranking among the industry leaders[133](index=133&type=chunk) - The company's novel food packaging material industry chain, centered on VDC-PVDC, holds an absolute dominant position domestically, with production capacity ranking first globally[136](index=136&type=chunk) - The company possesses a comprehensive R&D system and leading domestic fluorochemical industry R&D capabilities, having established over **20 provincial-level or higher scientific and technological innovation platforms**, including the National Fluorine Material Engineering Technology Research Center[139](index=139&type=chunk) - The company's 'JH Juhua®' trademark is a China Well-known Trademark, and multiple products have received 'Zhejiang Made' brand certification and the 'China Manufacturing Single Champion Product' title[144](index=144&type=chunk) - The company operates three major production bases in Zhejiang (Quzhou, Ningbo, Lanxi), Shandong, and the UAE, and is expanding future development space through the new Gansu Juhua base[149](index=149&type=chunk) [IV. Key Operating Performance During the Reporting Period](index=50&type=section&id=IV.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes the company's H1 2025 operating performance, showing significant growth in operating revenue and net cash flow from operations, driven by rising refrigerant prices and increased sales, alongside changes in asset and liability structures due to project investments and acquisitions Changes in Key Accounting Data | Account | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,331,461,429.24 | 12,080,139,457.80 | 10.36 | | Operating Cost | 9,502,702,064.81 | 10,058,565,894.19 | -5.53 | | Net Cash Flow from Operating Activities | 2,665,670,072.93 | 605,112,955.59 | 340.52 | - Cash and cash equivalents at period-end increased by **50.58% YoY**, primarily due to increased cash received from sales during the period[153](index=153&type=chunk) - Construction in progress at period-end increased by **46.68% YoY**, mainly due to increased investment in ongoing projects[154](index=154&type=chunk) - Short-term borrowings at period-end decreased by **60.62% YoY**, while long-term borrowings increased by **33.56% YoY**[154](index=154&type=chunk) - Total external equity investment amounted to **CNY 2.00 billion**, an increase of **31.22%** compared to the prior period, primarily due to the acquisition and capital injection for Gansu Juhua New Material Co., Ltd.[158](index=158&type=chunk) - Overseas assets totaled **CNY 3.41 billion**, accounting for **10.51%** of total assets[155](index=155&type=chunk) [V. Other Disclosures](index=58&type=section&id=V.%20Other%20Disclosures) This section outlines significant risks including safety, environmental standards, market fluctuations, raw material/energy prices, carbon emissions, policy changes, product upgrades, high fixed asset proportion, and global trade policy shifts, along with the company's mitigation strategies - The company operates in the chemical industry, characterized by high temperature, high pressure, flammability, explosiveness, and toxicity, posing safety production risks[167](index=167&type=chunk) - Stricter environmental standards may impact the company's operating performance due to increased environmental investments, or lead to the risk of individual production facilities being phased out[168](index=168&type=chunk) - The chemical industry exhibits cyclical fluctuations, and a slowdown in macroeconomic growth or weak market demand could lead to low product prices, posing market risks[169](index=169&type=chunk) - Under carbon peak and carbon neutrality policy expectations, significant increases in raw material and energy prices, along with stricter energy consumption and carbon emission control policies, could adversely affect the company's production, operations, and performance[170](index=170&type=chunk)[171](index=171&type=chunk) - The accelerated upgrade of fluororefrigerant products may shorten the lifecycle of second and third-generation fluororefrigerant products and assets, posing upgrade and replacement risks[173](index=173&type=chunk) - The company operates in the capital-intensive chemical industry, with a high proportion of fixed assets, potentially facing risks of idle fixed assets or impairment[176](index=176&type=chunk) - Rising global trade protectionism and escalating geopolitical conflicts could significantly impact the supply and demand patterns for the company's products and raw materials, leading to increased market volatility[177](index=177&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=61&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's board and senior management, profit distribution plans, employee incentive schemes, and environmental information disclosure for the reporting period [I. Changes in Directors, Supervisors, and Senior Management](index=61&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Mr. Hu Xiaowen resigned from his position as Deputy General Manager due to work changes - Mr. Hu Xiaowen resigned from his position as Deputy General Manager due to work changes[180](index=180&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=61&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The board resolved not to proceed with any profit distribution or capital reserve conversion to share capital for this reporting period - No profit distribution or capital reserve conversion to share capital will occur this reporting period[7](index=7&type=chunk)[180](index=180&type=chunk) [III. Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=61&type=section&id=III.%20Status%20and%20Impact%20of%20Company's%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company did not disclose any progress or changes regarding equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company did not disclose any progress or changes regarding equity incentive plans, employee stock ownership plans, or or other employee incentive measures[180](index=180&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=61&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company and **13 major subsidiaries** are on the list of enterprises required to disclose environmental information by law, with query indexes provided for their respective reports, demonstrating transparency and compliance - A total of **13** of the company's enterprises are included in the list of enterprises required to disclose environmental information by law[181](index=181&type=chunk) - Query indexes are provided for the environmental information disclosure reports of each included enterprise, such as Zhejiang Quhua Fluorochemical Co., Ltd. and Zhejiang Lanxi Juhua Fluorochemical Co., Ltd.[181](index=181&type=chunk) [Section V Significant Matters](index=63&type=section&id=Section%20V%20Significant%20Matters) This section covers significant matters including the fulfillment of commitments, major related-party transactions, and the status of significant contracts and guarantees during the reporting period [I. Fulfillment of Commitments](index=63&type=section&id=I.%20Fulfillment%20of%20Commitments) The company did not disclose any commitments made by controlling shareholders, shareholders, related parties, acquirers, or the company itself that were ongoing or fulfilled during the reporting period - The company did not disclose any commitments made by controlling shareholders, shareholders, related parties, acquirers, or the company itself that were ongoing or fulfilled during the reporting period[184](index=184&type=chunk) [X. Major Related-Party Transactions](index=63&type=section&id=X.%20Major%20Related-Party%20Transactions) The company engaged in significant related-party transactions, including an estimated **CNY 5.84 billion** in daily operations, renewed financial service agreements with Juhua Finance Company, and invested **CNY 19.63 billion** in the Gansu Juhua New Material integration project - The company's estimated total daily related-party transactions for 2025 are **CNY 5.84 billion**[184](index=184&type=chunk) - A financial service cooperation agreement was signed with Juhua Finance Company, limiting deposit balances to **15%** of the company's prior year's audited net assets and loans not exceeding a **CNY 2.00 billion** credit limit[185](index=185&type=chunk) - The company increased its capital and gained controlling interest in Gansu Juhua New Material Co., Ltd. to implement the fluorochlorine integrated new material project, with a total investment of **CNY 19.63 billion**, and has completed industrial and commercial registration changes[186](index=186&type=chunk)[187](index=187&type=chunk) Deposit Business with Juhua Group Finance Co., Ltd. | Related Party | Related Party Relationship | Beginning Balance (Ten Thousand CNY) | Total Deposits This Period (Ten Thousand CNY) | Total Withdrawals This Period (Ten Thousand CNY) | Ending Balance (Ten Thousand CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Juhua Group Finance Co., Ltd. | Subsidiary of Juhua Group Corporation, associate of the Company | 11,509.44 | 384,441.82 | 370,743.95 | 25,207.31 | Loan Business with Juhua Group Finance Co., Ltd. | Related Party | Related Party Relationship | Loan Limit (Ten Thousand CNY) | Loan Interest Rate Range | Beginning Balance (Ten Thousand CNY) | Amount Incurred This Period (Ten Thousand CNY) | Ending Balance (Ten Thousand CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Juhua Group Finance Co., Ltd. | Subsidiary of Juhua Group Corporation, associate of the Company | 200,000.00 | 2.11%-2.44% | 25,818.54 | 24,500.31 | 34,818.85 | [XI. Major Contracts and Their Performance](index=66&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) As of June 30, 2025, the company's total external guarantees, primarily for subsidiaries, amounted to **CNY 655.87 million**, representing **3.42%** of its latest audited net assets - The company's total external guarantee balance amounted to **CNY 655.87 million**[196](index=196&type=chunk) - The total guarantee amount represents **3.42%** of the company's net assets[196](index=196&type=chunk) - These are primarily guarantees for subsidiaries, with the guarantee balance for Zhejiang Jinju Chemical Co., Ltd. being **CNY 628.86 million**[196](index=196&type=chunk) [Section VI Share Changes and Shareholder Information](index=68&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital stability and shareholder structure, including the total number of shareholders and the top ten shareholders' holdings [I. Changes in Share Capital](index=68&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[198](index=198&type=chunk) [II. Shareholder Information](index=68&type=section&id=II.%20Shareholder%20Information) As of the reporting period end, the company had **51,479** common shareholders, with controlling shareholder Juhua Group Corporation holding **52.70%** and Hong Kong Securities Clearing Company Limited holding **3.15%** - As of the end of the reporting period, the total number of common shareholders was **51,479**[199](index=199&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-End (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Juhua Group Corporation | 1,422,780,317 | 52.70 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 84,920,522 | 3.15 | Other | | China Merchants Bank Co., Ltd. - Xingquan Hecun Mixed Securities Investment Fund | 50,473,875 | 1.87 | Other | | China Merchants Bank Co., Ltd. - Xingquan Heyi Flexible Allocation Mixed Securities Investment Fund (LOF) | 24,952,097 | 0.92 | Other | | Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 ETF | 24,166,275 | 0.90 | Other | | National Council for Social Security Fund 601 Portfolio | 24,032,656 | 0.89 | Other | | Zhejiang Juhua Investment Co., Ltd. | 23,854,178 | 0.88 | State-owned Legal Person | | Shanghai Zigao Investment Management Co., Ltd. - Zigao Junyi No. 3 Private Securities Investment Fund | 23,160,890 | 0.86 | Other | | Zheng Wenbao | 18,213,500 | 0.67 | Domestic Natural Person | | China Construction Bank Corporation - E Fund CSI 300 ETF Initiated Fund | 17,156,000 | 0.64 | Other | - Zhejiang Juhua Investment Co., Ltd. is an acting-in-concert party of the company's controlling shareholder, Juhua Group Corporation[203](index=203&type=chunk) [Section VII Bond-Related Information](index=71&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms that the company has no corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds [Overview of Bond-Related Information](index=71&type=section&id=Overview%20of%20Bond-Related%20Information) The company has no corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[206](index=206&type=chunk) - The company has no convertible corporate bonds[206](index=206&type=chunk) [Section VIII Financial Report](index=72&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited H1 2025 financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, taxes, and financial items [I. Audit Report](index=72&type=section&id=I.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[6](index=6&type=chunk)[208](index=208&type=chunk) [II. Financial Statements](index=72&type=section&id=II.%20Financial%20Statements) This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, reflecting growth in assets, equity, profitability, and cash flow Consolidated Balance Sheet (Summary) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 32,434,770,588.15 | 28,523,635,760.99 | | Total Liabilities | 10,884,434,871.46 | 9,251,572,689.14 | | Total Equity Attributable to Parent Company Owners | 19,237,459,332.35 | 17,849,099,632.52 | Consolidated Income Statement (Summary) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 13,331,461,429.24 | 12,080,139,457.80 | | Total Profit | 2,607,041,814.18 | 1,048,173,537.99 | | Net Profit Attributable to Parent Company Shareholders | 2,050,820,025.28 | 830,391,406.00 | | Basic Earnings Per Share (CNY/share) | 0.760 | 0.308 | Consolidated Cash Flow Statement (Summary) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 2,665,670,072.93 | 605,112,955.59 | | Net Cash Flow from Investing Activities | -1,871,386,358.51 | -1,617,985,086.94 | | Net Cash Flow from Financing Activities | 308,607,065.74 | 738,320,654.93 | [III. Company Overview](index=89&type=section&id=III.%20Company%20Overview) Zhejiang Juhua Co., Ltd., established on June 17, 1998, is headquartered in Quzhou, Zhejiang, listed on the Shanghai Stock Exchange (600160), primarily engaged in R&D, production, and sales of chemical raw materials and products, with **27 subsidiaries** included in its consolidated financial statements - Company Name: Zhejiang Juhua Co., Ltd., Stock Code: **600160**, Listing Exchange: Shanghai Stock Exchange[1](index=1&type=chunk)[27](index=27&type=chunk)[234](index=234&type=chunk) - Main Business: R&D, production, and sales of chemical raw materials and chemical products, food additives, as well as providing related technical services, consulting, and technology transfer, and engaging in import and export business[234](index=234&type=chunk) - The scope of consolidated financial statements for this period includes **27** subsidiaries (and sub-subsidiaries), such as Zhejiang Quhua Fluorochemical Co., Ltd., Gansu Juhua New Material Co., Ltd., and Juhua New Energy (Yumen) Co., Ltd.[235](index=235&type=chunk) [IV. Basis of Financial Statement Preparation](index=89&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, with an assessment confirming no issues affecting its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis[236](index=236&type=chunk) - The company assessed its ability to continue as a going concern for **12 months** from the end of the reporting period, found no matters affecting this ability, and thus considers the preparation of financial statements on a going concern basis to be reasonable[237](index=237&type=chunk) [V. Significant Accounting Policies and Estimates](index=89&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, adhering to enterprise accounting standards, covering areas such as business combinations, financial instruments, inventory, fixed assets, intangible assets, revenue recognition, and government grants - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truthfully and completely reflecting the company's financial position, operating results, and cash flows, among other relevant information[238](index=238&type=chunk)[239](index=239&type=chunk) - Detailed explanations are provided for the accounting treatment of business combinations under common control and not under common control[244](index=244&type=chunk) - The accounting treatment for the classification, measurement, impairment, and transfer of financial instruments is explained, including the measurement of expected credit losses[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - The classification of inventories, issuance pricing method (**weighted average method**), inventory system (**perpetual inventory system**), and impairment provision methods are stipulated[277](index=277&type=chunk)[278](index=278&type=chunk)[280](index=280&type=chunk) - The recognition criteria, depreciation methods, and useful lives for fixed assets are clearly defined[303](index=303&type=chunk)[304](index=304&type=chunk) - Detailed explanations are provided for the accounting policies used in revenue recognition and measurement, including criteria for judging performance obligations fulfilled over time or at a point in time[328](index=328&type=chunk)[329](index=329&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk)[333](index=333&type=chunk) [VI. Taxation](index=117&type=section&id=VI.%20Taxation) This section outlines the company's main tax categories and rates, including VAT, urban maintenance and construction tax, and corporate income tax, with several subsidiaries benefiting from high-tech enterprise tax incentives and other preferential policies Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Calculated based on sales of goods and taxable services as per tax law, with output VAT minus deductible input VAT being the VAT payable | 13%, 10%, 9%, 6% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 1% | | Corporate Income Tax | Taxable income | 25%, 20%, 16.5%, 15%, 9%, 8.25% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2%, 1% | - Several subsidiaries (e.g., Ningbo Juhua Co., Quhua Fluorochemical Co., Lanxi Fluorochemical Co., Technology Center Co., Jusheng Fluorochemical Co., Jusu Chemical Co., Lianzhou Refrigeration Co., Juhua Nylon Co., Feiyuan Chemical Co., Feiyuan New Material Co.) enjoy high-tech enterprise income tax incentives, paying corporate income tax at a **15%** rate[354](index=354&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk) - Jubang High-Tech Co. and Tianjin Bairui Co. are small low-profit enterprises, enjoying income tax preferential policies where the portion of annual taxable income not exceeding **CNY 1 million** is reduced by **12.5%** into taxable income, and corporate income tax is paid at a **20%** rate[357](index=357&type=chunk) - Jubang High-Tech Co. enjoys a **50% reduction** in urban maintenance and construction tax, property tax, urban land use tax, stamp duty, education surcharge, and local education surcharge[357](index=357&type=chunk) - If the concentration of taxable atmospheric or water pollutants discharged by the company is **30% lower** than national and local emission standards, environmental protection tax is levied at **75%** of the standard rate[358](index=358&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=119&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for all consolidated financial statement items, including cash, receivables, inventories, fixed assets, long-term investments, borrowings, revenues, costs, and profits, offering comprehensive insights into the company's financial position and performance - Cash and cash equivalents at period-end totaled **CNY 4.01 billion**, of which **CNY 575.77 million** were restricted funds such as bank acceptance bill deposits[360](index=360&type=chunk) - Accounts receivable at period-end had a carrying value of **CNY 1.25 billion**, with an allowance for doubtful accounts of **CNY 72.67 million** recognized on a portfolio basis[371](index=371&type=chunk)[375](index=375&type=chunk) - Inventories at period-end had a carrying value of **CNY 2.67 billion**, with inventory impairment provisions of **CNY 92.94 million**[404](index=404&type=chunk)[406](index=406&type=chunk) - Construction in progress at period-end had a carrying value of **CNY 4.30 billion**, with major projects including the **150,000 tons/year** specialty polyester chip new material project and the high-performance fluorochlorine new material integration project[444](index=444&type=chunk)[446](index=446&type=chunk)[448](index=448&type=chunk)[449](index=449&type=chunk) - Long-term equity investments at period-end had a carrying value of **CNY 2.59 billion**, primarily investments in associates[425](index=425&type=chunk)[426](index=426&type=chunk) - Short-term borrowings at period-end totaled **CNY 477.32 million**, and long-term borrowings totaled **CNY 3.62 billion**[487](index=487&type=chunk)[514](index=514&type=chunk) - Operating revenue was **CNY 13.33 billion**, operating cost was **CNY 9.50 billion**, with refrigerant operating revenue at **CNY 6.13 billion**[532](index=532&type=chunk)[535](index=535&type=chunk) - Total profit was **CNY 2.61 billion**, and net profit attributable to parent company shareholders was **CNY 2.05 billion**[217](index=217&type=chunk) - Net cash flow from operating activities was **CNY 2.67 billion**[219](index=219&type=chunk) [VIII. Research and Development Expenses](index=182&type=section&id=VIII.%20Research%20and%20Development%20Expenses) During the reporting period, the company's total R&D expenditure was **CNY 603.76 million**, all expensed, primarily comprising direct input costs, personnel expenses, depreciation, and outsourced technical development fees R&D Expenses by Nature of Expense | Item | Amount Incurred This Period (CNY) | Amount Incurred Prior Period (CNY) | | :--- | :--- | :--- | | Direct Input Costs | 435,281,923.10 | 357,725,350.39 | | Depreciation Expense | 29,310,383.35 | 33,500,323.52 | | Personnel Labor Costs | 88,248,369.52 | 83,465,662.81 | | Outsourced Technical Development Fees | 38,350,672.62 | 42,109,438.54 | | Other | 12,566,713.48 | 23,769,235.55 | | Total | 603,758,062.07 | 540,570,010.81 | | Of which: Expensed R&D Expenditure | 603,758,062.07 | 540,570,010.81 | - Total R&D expenditure for this period was **CNY 603.76 million**, all expensed, with no capitalized R&D expenditure[576](index=576&type=chunk)[577](index=577&type=chunk) [IX. Changes in Consolidation Scope](index=183&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company acquired substantive control over Gansu Juhua New Material Co., Ltd. and its subsidiary Juhua New Energy (Yumen) Co., Ltd. through a capital increase under common control, impacting net profit by **-CNY 8.99 million** Business Combinations Under Common Control Occurring This Period | Name of Acquiree | Basis for Constituting Business Combination Under Common Control | Merger Date | Basis for Determining Merger Date | Net Profit of Acquiree from Beginning of Current Period to Merger Date (CNY) | | :--- | :--- | :--- | :--- | :--- | | Gansu Juhua New Material Co., Ltd. | Both before and after the merger, controlled by the same ultimate controlling party | 2025.5.1 | Substantive control has been transferred | -9,446,507.51 | | Juhua New Energy (Yumen) Co., Ltd. | Both before and after the merger, controlled by the same ultimate controlling party | 2025.5.1 | Substantive control has been transferred | -16,651.26 | - This period, the company acquired Gansu Juhua New Material Co., Ltd. through a capital increase under common control, with a capital injection of **CNY 1.82 billion**, gaining substantive control on May 1, 2025, after an initial capital increase of **CNY 700.28 million**[580](index=580&type=chunk) - This merger had an impact of **-CNY 8.99 million** on the net profit attributable to the parent company for this period[165](index=165&type=chunk) [X. Interests in Other Entities](index=186&type=section&id=X.%20Interests%20in%20Other%20Entities) This section details the company's interests in **27 subsidiaries** and several important associates, including Feiyuan Chemical Co. (a significant non-wholly owned subsidiary) and key joint ventures/associates like Juhua Group Finance Co. and iGas USA Inc., all accounted for using the equity method - The company owns **27** subsidiaries (and sub-subsidiaries), including Jubang High-Tech Co., Lanxi Fluorochemical Co., and Quhua Fluorochemical Co.[586](index=586&type=chunk)[587](index=587&type=chunk) Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio (%) | Profit/Loss Attributable to Minority Shareholders This Period (CNY) | Dividends Declared to Minority Shareholders This Period (CNY) | Minority Interest Balance at Period-End (CNY) | | :--- | :--- | :--- | :--- | :--- | | Feiyuan Chemical Co. | 49.00 | 50,443,120.78 | 87,032,293.86 | 1,149,004,071.62 | Significant Associates | Name of Joint Venture or Associate | Principal Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Accounting Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Juhua Group Finance Co., Ltd. | Quzhou | Quzhou | Financial Industry | 46.00 | Equity Method | | Zhongjuxin Technology Co., Ltd. | Quzhou | Quzhou | Manufacturing | 26.40 | Equity Method | | iGas USA Inc | USA | USA | Commercial | 34.00 | Equity Method | | Xinya Shanshan New Material (Quzhou) Co., Ltd. | Quzhou | Quzhou | Manufacturing | 15.91 | Equity Method | - The company holds a **15.91%** stake in Xinya Shanshan New Material (Quzhou) Co., Ltd. and appoints one director, exercising significant influence over it[590](index=590&type=chunk) [XI. Government Grants](index=193&type=section&id=XI.%20Government%20Grants) During the reporting period, the company recognized **CNY 87.85 million** in government grants, comprising **CNY 15.61 million** related to assets and **CNY 72.25 million** related to income, primarily recognized in other income or amortized over asset useful lives Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (CNY) | New Grants Added This Period (CNY) | Amount Recognized in Non-Operating Income This Period (CNY) | Amount Transferred to Other Income This Period (CNY) | Ending Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 704,274,769.86 | 6,316,472.37 | - | 15,608,863.99 | 694,982,378.24 | Asset-related | | Deferred Income | 8,235,856.25 | 4,743,100.00 | - | 8,979,176.92 | 3,999,779.33 | Income-related | | Total | 712,510,626.11 | 11,059,572.37 | - | 24,588,040.91 | 698,982,157.57 | / | Government Grants Recognized in Current Profit/Loss | Type | Amount Incurred This Period (CNY) | Amount Incurred Prior Period (CNY) | | :--- | :--- | :--- | | Asset-related | 15,608,863.99 | 23,950,888.68 | | Income-related | 72,245,016.16 | 82,311,994.20 | | Total | 87,853,880.15 | 106,262,882.88 | [XII. Risks Related to Financial Instruments](index=194&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company manages financial instrument risks, including credit, liquidity, and market risks (foreign exchange and interest rate), through credit policies, cash management, diverse financing, and continuous monitoring of interest rate levels - The company's financial instrument risks stem from credit risk, liquidity risk, and market risks (foreign exchange risk, interest rate risk)[601](index=601&type=chunk) - Credit risk primarily arises from cash and cash equivalents, notes receivable, and accounts receivable, controlled by assessing customer creditworthiness, setting credit terms, and regularly monitoring credit records[602](index=602&type=chunk) - Liquidity risk is managed by coordinating cash management across subsidiaries, utilizing various financing methods such as bill settlements and bank loans, and appropriately combining long-term and short-term financing[612](index=612&type=chunk) - Foreign exchange risk is not significant as the company operates in mainland China, and its main activities are denominated in CNY[615](index=615&type=chunk) - Interest rate risk primarily arises from long-term interest-bearing debts such as long-term bank borrowings and bonds payable, with the company's headquarters finance department continuously monitoring group interest rate levels[617](index=617&type=chunk) [XIII. Disclosure of Fair Value](index=198&type=section&id=XIII.%20Disclosure%20of%20Fair%20Value) This section discloses the fair value of assets and liabilities measured at fair value at period-end, with total continuously measured assets at **CNY 2.93 billion** (primarily equity investments and receivables financing) and liabilities at **CNY 3.11 million** (mainly derivative financial liabilities), using market and cost methods for valuation Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Fair Value at Period-End (CNY) | | :--- | :--- | | Total Assets Continuously Measured at Fair Value | 2,933,845,098.09 | | Of which: Other Equity Instrument Investments | 1,068,801,263.33 | | Financing for Accounts Receivable | 1,865,043,834.76 | | Total Liabilities Continuously Measured at Fair Value | 3,107,436.09 | | Of which: Financial Liabilities Held for Trading (Derivative Financial Liabilities) | 3,107,436.09 | - For forward foreign exchange contracts held by the enterprise, the fair value is determined using the market approach[621](index=621&type=chunk) - For notes receivable held by the company, the fair value is determined using the face amount[622](index=622&type=chunk) - Other equity instrument investments continuously measured at Level 3 fair value primarily consist of the company's equity investments in unlisted companies, measured using investment cost as a reasonable estimate of fair value[622](index=622&type=chunk) [XIV. Related Parties and Related-Party Transactions](index=200&type=section&id=XIV.%20Related%20Parties%20and%20Related-Party%20Transactions) This section details the company's related parties, including its ultimate controlling party (Zhejiang Provincial People's Government State-owned Assets Supervision and Administration Commission) and controlling shareholder (Juhua Group Corporation, with **53.58%** voting rights), and lists various related-party transactions such as purchases, sales, services, leases, guarantees, and fund borrowings - The ultimate controlling party of the enterprise is the Zhejiang Provincial People's Government State-owned Assets Supervision and Administration Commission[624](index=624&type=chunk) Parent Company's Shareholding and Voting Right Ratios in the Company | Parent Company Name | Registered Place | Nature of Business | Registered Capital (Ten Thousand CNY) | Parent Company's Shareholding Ratio in the Company (%) | Parent Company's Voting Right Ratio in the Company (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Juhua Group Corporation | Hangzhou | Manufacturing, Commercial, etc. | 470,670.00 | 52.70 | 53.58 | - Related-party transactions for goods purchased/services received totaled **CNY 1.60 billion** this period, and related-party transactions for goods sold/services provided totaled **CNY 1.19 billion**[629](index=629&type=chunk)[631](index=631&type=chunk) - As a lessee, the company recognized related-party lease income of **CNY 921,188.58** this period[635](index=635&type=chunk) - As a guaranteed party, the company received guarantees from Juhua Group Corporation totaling **CNY 134.75 million**[636](index=636&type=chunk) - The company has related-party fund borrowings, such as **CNY 87.25 million** borrowed from iGas USA, Inc. and **CNY 128.36 million** borrowed from Juhua Group Corporation[638](index=638&type=chunk) - Key management personnel compensation incurred this period amounted to **CNY 2.00 million**[643](index=643&type=chunk) [XV. Share-Based Payment](index=215&type=section&id=XV.%20Share-Based%20Payment) This section does not disclose details of equity instruments, outstanding stock options, equity-settled or cash-settled share-based payments, or any related expenses, modifications, or terminations during the reporting period - The company did not disclose details of various equity instruments[215](index=215&type=chunk) - The company did not disclose outstanding stock options or other equity instruments at period-end[215](index=215&type=chunk) - The company did not disclose equity-settled share-based payment information[215](index=215&type=chunk) - The company did not disclose cash-settled share-based payment information[215](index=215&type=chunk) - The company did not disclose share-based payment expenses for this period[215](index=215&type=chunk) - The company did not disclose any modifications or terminations of share-based payments[215](index=215&type=chunk) [XVI. Commitments and Contingencies](index=215&type=section&id=XVI.%20Commitments%20and%20Contingencies) As of June 30, 2025, the company had outstanding irrevocable foreign currency letters of credit and guarantees totaling **CNY 27.02 million**, and a subsidiary, Feiyuan Chemical Co., is involved in a construction contract dispute with frozen bank deposits of **CNY 9.10 million** - As of June 30, 2025, the company had outstanding irrevocable foreign currency letters of credit totaling **EUR 1,693,300** and **USD 1,786,700**, equivalent to **CNY 27.02 million**, and outstanding guarantees of **CNY 250,000**[215](index=215&type=chunk) - Subsidiary Feiyuan Chemical Co. is involved in a construction and maintenance contract dispute with Shandong Hongzheng Electromechanical Equipment Installation Co., Ltd., being sued for payment of project fees totaling **CNY 8.15 million** plus interest[215](index=215&type=chunk) - The court froze Feiyuan Chemical Co.'s bank deposits of **CNY 8.55 million** and **USD 77,000**, totaling **CNY 9.10 million**, with the case still under further review[215](index=215&type=chunk) [XVII. Events After the Balance Sheet Date](index=216&type=section&id=XVII.%20Events%20After%20the%20Balance%20Sheet%20Date) This section does not disclose any significant non-adjusting events, profit distribution, or sales returns occurring after the balance sheet date - The company did not disclose any significant non-adjusting events occurring after the balance sheet date[216](index=216&type=chunk) - The company did not disclose any profit distribution information[216](index=216&type=chunk) - The company did not disclose any sales return information[216](index=216&type=chunk) [XVIII. Other Significant Matters](index=216&type=section&id=XVIII.%20Other%20Significant%20Matters) The company has no prior period accounting error corrections, major debt restructurings, asset replacements, annuity plans, or discontinued operations, and does not disclose segment information as its main business is managed as a single chemical product entity - The company has no other significant matters such as prior period accounting error corrections, major debt restructurings, asset replacements, annuity plans, or discontinued operations[216](index=216&type=chunk) - The company's main business is the production and sale of chemical products. The company manages and evaluates this business as a single entity; therefore, segment information is not disclosed[217](index=217&type=chunk) [XIX. Notes to Parent Company Financial Statement Items](index=217&type=section&id=XIX.%20Notes%20to%20Parent%20Company%20Financial%20Statement%20Items) This section provides detailed notes for the parent company's key financial statement items, including accounts receivable (**CNY 144.25 million**), other receivables (**CNY 1.67 billion**, mainly intercompany loans), and long-term equity investments (**CNY 11.95 billion**, primarily in subsidiaries) - Parent company's accounts receivable at period-end had a carrying balance of **CNY 144.25 million**, with an allowance for doubtful accounts of **CNY 9.24 million**[218](index=218&type=chunk) - BYD Co., Ltd. is the largest of the parent company's top five accounts receivable at period-end, amounting to **CNY 89.61 million** and accounting for **62.12%**[219](index=219&type=chunk) - Parent company's other receivables at period-end had a carrying balance of **CNY 1.67 billion**, primarily intercompany loans to subsidiaries[222](index=222&type=chunk)[674](index=674&type=chunk) - Parent company's long-term equity investments at period-end had a carrying value of **CNY 11.95 billion**, including **CNY 9.55 billion** in investments in subsidiaries[225](index=225&type=chunk)[226](index=226&type=chunk)[688](index=688&type=chunk) - Parent company's operating revenue was **CNY 1.79 billion**, and operating cost was **CNY 1.47 billion**[229](index=229&type=chunk)[696](index=696&type=chunk) - Parent company's investment income was **CNY 151.43 million**, primarily from long-term equity investment income accounted for using the cost method and equity method[230](index=230&type=chunk)[7

（文章来源：第一财经） 巨化股份晚间公告，2025年上半年营业收入133.31亿元，同比增长10.36%。净利润20.51亿元，同比增 长146.97%。 ...