Group 1 - The core viewpoint of the article highlights that Huanghe Xuanfeng has been experiencing a prolonged downturn in the superhard materials sector, resulting in consecutive losses over the past two years, with an expanded loss in the first half of this year [1] - In the first half of 2025, the company reported operating revenue of 699 million yuan, a year-on-year increase of 7.56%, while net profit loss reached 299 million yuan, compared to a loss of 248 million yuan in the same period last year, indicating a worsening financial situation [1] - The second quarter showed a narrowing of losses, with revenue of 379 million yuan, a year-on-year increase of 17.95% and a quarter-on-quarter increase of 18.59%, while the loss was 132 million yuan, a year-on-year reduction of 7.51% and a quarter-on-quarter reduction of 21.24% [1] Group 2 - The company operates primarily in the superhard materials sector, producing products such as industrial diamonds, cultivated diamonds, grinding wheels, tools, drill bits, and saw blades [1] - The company indicated that despite implementing cost-cutting and efficiency-enhancing measures, it could not mitigate the adverse effects of global macroeconomic conditions and fluctuations in the cultivated diamond market [1] - The company's debt ratio has been rising, reaching 84% as of the mid-2025 report, with a current ratio of only 0.4, and short-term loans amounting to 2.5 billion yuan against cash holdings of 323 million yuan [1] Group 3 - Cash flow is under significant pressure, with only the net cash flow from financing activities being positive, indicating that cash inflow primarily relies on financing, while net cash flows from operating and investing activities turned negative, with net outflows of 99.31 million yuan and 84.41 million yuan, respectively [2] - The company's right-of-use assets increased by 77.37% compared to the same period last year, attributed mainly to newly recognized rights for leased machinery and equipment [2]

Group 1 - The company, Huanghe Xuanfeng (600172.SH), reported a revenue of 699 million yuan for the first half of 2025, representing a year-on-year growth of 7.56% [1] - The net profit attributable to shareholders of the listed company was -299 million yuan, with a net profit of -300 million yuan after deducting non-recurring gains and losses [1] - The basic earnings per share were -0.2150 yuan [1]

Core Viewpoint - The report highlights the financial performance and operational challenges faced by Henan Huanghe Whirlwind Co., Ltd. in the first half of 2025, indicating a decline in net profit and cash flow despite a slight increase in revenue. Financial Performance - The company's operating revenue for the first half of 2025 was approximately CNY 699.24 million, representing a 7.56% increase compared to CNY 650.10 million in the same period last year [2]. - The total profit for the period was a loss of approximately CNY 312.04 million, compared to a loss of CNY 257.28 million in the previous year [2]. - The net profit attributable to shareholders was approximately CNY -299.26 million, compared to CNY -248.42 million in the same period last year [2]. - The net cash flow from operating activities was approximately CNY -99.31 million, a significant decrease from CNY 29.99 million in the previous year, indicating a 431.15% decline [2]. Key Financial Indicators - Basic earnings per share were CNY -0.2150, compared to CNY -0.1784 in the previous year [2]. - The weighted average return on net assets was -22.00%, down from -10.49% in the same period last year [2]. - The company's net assets attributable to shareholders decreased by 19.82% to approximately CNY 1.21 billion from CNY 1.51 billion at the end of the previous year [2]. Industry Overview - The synthetic diamond industry is recognized as a strategic emerging industry supported by national policies, with applications in various sectors including defense, aerospace, and electronics [3]. - The market for superhard materials has reached an internationally advanced level, with synthetic diamonds expanding beyond traditional applications into new consumer markets [3]. - The company faces challenges from price declines in the market, particularly due to competition from CVD diamonds, necessitating adjustments in production capacity [3]. Operational Challenges - The company has implemented cost-reduction measures but has not fully mitigated the adverse effects of market conditions [3]. - The net profit for the period was CNY -299 million, with a net profit of CNY -300 million after excluding non-recurring losses [3]. - The company plans to increase investment in product research and development, enhance production capacity, and extend the industrial chain to improve shareholder value [3]. Research and Development - The company possesses several national-level research platforms and has made significant advancements in synthetic diamond technology [4]. - It has initiated projects aimed at developing high-end applications for synthetic diamonds, achieving performance metrics that meet or exceed international standards [4]. - The company collaborates with universities to enhance its research capabilities and attract high-level talent for its development projects [5].

Core Viewpoint - The report highlights the financial performance of Henan Huanghe Whirlwind Co., Ltd. for the first half of 2025, indicating a significant increase in revenue but a continued net loss, reflecting ongoing challenges in profitability [1]. Financial Summary - Total assets at the end of the reporting period amounted to CNY 7,779,067,268, a slight increase of 0.04% compared to the previous year [1]. - Operating revenue reached CNY 699,238,134.16, representing a year-on-year increase of 7.56% from CNY 650,101,867.19 [1]. - The total profit for the period was a loss of CNY 312,041,165.31, compared to a loss of CNY 257,283,601.06 in the same period last year [1]. - The net profit attributable to shareholders was a loss of CNY 299,260,842.78, worsening from a loss of CNY 248,419,842.01 year-on-year [1]. - The net profit after deducting non-recurring gains and losses was a loss of CNY 300,119,388.68, compared to a loss of CNY 258,554,402.66 in the previous year [1]. - The net cash flow from operating activities was negative at CNY -99,307,786.14, a significant decline from a positive cash flow of CNY 29,988,461.32 in the same period last year [1]. - The weighted average return on net assets was -22.00%, down from -10.49% year-on-year [1]. - Basic and diluted earnings per share were both CNY -0.2150, compared to CNY -0.1784 in the previous year [1]. Shareholder Information - The total number of shareholders at the end of the reporting period was 105,036 [2]. - The largest shareholder, Xuchang State-owned Industrial Investment Co., Ltd., holds 8.82% of shares, amounting to 127,218,761 shares, with 26,035,713 shares pledged [2]. - Other significant shareholders include Henan Huanghe Industrial Group Co., Ltd. with 8.82% and Qiao Qiusheng with 2.18% [2]. - The report notes that certain shareholders are acting in concert, specifically Xuchang State-owned Industrial Investment Co., Ltd. and Xuchang Jintou Development Co., Ltd. [2].

[Important Notice](index=2&type=section&id=Important%20Notice) The board and senior management guarantee the report's truthfulness and completeness; it is unaudited, and forward-looking statements carry investment risks - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions, and assume individual and joint legal liabilities[4](index=4&type=chunk) - This semi-annual report is unaudited[6](index=6&type=chunk) - Forward-looking descriptions regarding the company's future operating plans and development strategies in this report do not constitute substantive commitments to investors, who are advised to note investment risks[7](index=7&type=chunk) [Section 1 Definitions](index=4&type=section&id=Section%201%20Definitions) This section defines common terms, clarifying 'the Company' as Henan Yellow River Whirlwind Co., Ltd., and listing full names of key related parties and subsidiaries for clarity - **'The Company'** refers to Henan Yellow River Whirlwind Co., Ltd[12](index=12&type=chunk) - Lists abbreviations and full names of several related companies and subsidiaries, such as **'Yellow River Group'**, **'Whirlwind International'**, and **'United Whirlwind'**[12](index=12&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=4&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides company basics, contact info, stock overview, and key financial data for H1 2025, showing revenue growth but negative net profit and operating cash flow, with declining net assets - The company's legal representative is **Pang Wenlong**[13](index=13&type=chunk) - The company's A-shares are listed on the Shanghai Stock Exchange, stock abbreviation **'Yellow River Whirlwind'**, stock code **'600172'**[17](index=17&type=chunk) Key Accounting Data for H1 2025 vs. Prior Period | Indicator | Current Period (Jan-Jun) (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 699,238,134.16 | 650,101,867.19 | 7.56 | | Total Profit | -312,041,165.31 | -257,283,601.06 | N/A | | Net Profit Attributable to Shareholders of the Listed Company | -299,260,842.78 | -248,419,842.01 | N/A | | Net Cash Flow from Operating Activities | -99,307,786.14 | 29,988,461.32 | -431.15 | | Net Assets Attributable to Shareholders of the Listed Company (Period-end) | 1,210,854,359.67 | 1,510,104,218.29 | -19.82 | | Total Assets (Period-end) | 7,779,067,268.00 | 7,776,020,067.79 | 0.04 | Key Financial Indicators for H1 2025 vs. Prior Period | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (CNY/share) | -0.2150 | -0.1784 | N/A | | Diluted EPS (CNY/share) | -0.2150 | -0.1784 | N/A | | Basic EPS Excluding Non-recurring Gains/Losses (CNY/share) | -0.2156 | -0.1857 | N/A | | Weighted Average Return on Net Assets (%) | -22.00 | -10.49 | N/A | | Weighted Average Return on Net Assets Excluding Non-recurring Gains/Losses (%) | -22.06 | -10.91 | N/A | [Section 3 Management Discussion and Analysis](index=7&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section analyzes the company's industry, main business, operations, core competitiveness, and risks, focusing on superhard materials, with H1 2025 net loss due to cultivated diamond market price fluctuations, and outlines strategies to leverage technology, talent, and brand advantages - The artificial diamond industry belongs to the **'New Functional Materials Industry'**, a strategic emerging industry supported and encouraged by national policies[23](index=23&type=chunk) - The company's main products cover superhard materials and products, and superhard composite materials and products, including industrial diamonds, cultivated diamonds, grinding wheels, tools, drills, and saw blades[24](index=24&type=chunk) - In H1 2025, the company achieved operating revenue of **CNY 699 million**, a **7.56% increase** YoY; net profit attributable to shareholders of the listed company was **-CNY 299 million**[24](index=24&type=chunk) - The company possesses three national-level research platforms, including a national enterprise technology center and a postdoctoral research workstation, along with fourteen provincial-level research platforms, demonstrating strong R&D capabilities in the superhard materials industry[26](index=26&type=chunk) - The company is the world's most stable and comprehensive superhard materials manufacturer, the first listed private enterprise in China's superhard materials industry, forming a strong brand effect[28](index=28&type=chunk) - The company faces macroeconomic risks, market risks (especially the significant decline in cultivated diamond market prices), management risks, and R&D risks[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) [Section 4 Corporate Governance, Environment and Society](index=14&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%20and%20Society) This section reports on corporate governance, including no changes in directors or senior management, no profit distribution or capital reserve transfer plans, and no disclosed equity incentive or employee stock ownership plans, with no environmental information disclosure or poverty alleviation details - No changes in the company's directors or senior management occurred during the reporting period[42](index=42&type=chunk) - This semi-annual report does not include a profit distribution or capital reserve to share capital increase plan[42](index=42&type=chunk) - The company did not disclose equity incentives, employee stock ownership plans, or other employee incentive measures[43](index=43&type=chunk) [Section 5 Significant Matters](index=15&type=section&id=Section%205%20Significant%20Matters) This section confirms the company's fulfillment of commitments, absence of non-operating fund occupation by controlling shareholders or related parties, no illegal guarantees, no major lawsuits or arbitrations, and no significant related party transactions or asset/equity sales during the reporting period - No unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself were observed during the reporting period[45](index=45&type=chunk) - No non-operating fund occupation by controlling shareholders or other related parties occurred during the reporting period[45](index=45&type=chunk) - No major lawsuits or arbitrations occurred during the reporting period[45](index=45&type=chunk) - No significant related party transactions occurred during the reporting period[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Section 6 Share Changes and Shareholder Information](index=17&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share changes and shareholder information, noting no changes in total shares or capital structure, with 105,036 common shareholders at period-end, and lists the top ten shareholders' holdings, proportions, restricted conditions, and affiliations - No changes in the company's total shares or capital structure occurred during the reporting period[49](index=49&type=chunk) - As of the end of the reporting period, the total number of common shareholders was **105,036**[50](index=50&type=chunk) Top Ten Shareholders' Holdings at Period-End (Partial) | Shareholder Name | Period-end Holding Quantity (shares) | Proportion (%) | Share Status | Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Xuchang State-owned Industrial Investment Co., Ltd. | 168,267,900 | 11.67 | Pledged | 67,500,000 | State-owned Legal Entity | | Henan Yellow River Industrial Group Co., Ltd. | 127,218,761 | 8.82 | Frozen | 127,218,761 | Domestic Non-state-owned Legal Entity | | Xuchang Jintou Development and Construction Co., Ltd. | 98,280,298 | 6.81 | Pledged | 49,140,000 | State-owned Legal Entity | | Qiao Qiusheng | 31,440,941 | 2.18 | Pledged | 31,440,941 | Domestic Natural Person | - Xuchang State-owned Industrial Investment Co., Ltd. and Xuchang Jintou Development and Construction Co., Ltd. are parties acting in concert; Henan Yellow River Industrial Group Co., Ltd. and Qiao Qiusheng are parties acting in concert[53](index=53&type=chunk)[54](index=54&type=chunk) [Section 7 Bond-Related Information](index=20&type=section&id=Section%207%20Bond-Related%20Information) This section states that the company had no corporate bonds (including enterprise bonds), non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[56](index=56&type=chunk) - The company has no convertible corporate bonds[56](index=56&type=chunk) [Section 8 Financial Report](index=21&type=section&id=Section%208%20Financial%20Report) This core section presents the company's unaudited consolidated and parent company 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 various financial items [Financial Statements](index=21&type=section&id=Financial%20Statements) This part provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, comprehensively presenting its financial position, operating results, and cash flow [Consolidated Balance Sheet](index=21&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, consolidated total assets slightly increased, but equity attributable to parent company owners decreased by 19.82% YoY, with total liabilities up 4.48%, indicating net asset pressure Consolidated Balance Sheet Key Data (Period-end vs. Period-beginning) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,779,067,268.00 | 7,776,020,067.79 | 0.04 | | Total Liabilities | 6,535,151,359.60 | 6,255,191,129.99 | 4.48 | | Total Equity Attributable to Parent Company Owners | 1,210,854,359.67 | 1,510,104,218.29 | -19.82 | - Period-end balance of right-of-use assets was **CNY 165,680,717.77**, a **77.37% increase** from the period-beginning, mainly due to newly recognized leased machinery and equipment right-of-use assets[33](index=33&type=chunk) - Period-end balance of other payables was **CNY 1,875,538,978.64**, a **26.21% increase** from the period-beginning, mainly due to new borrowings from Xuchang City Investment in the current period[33](index=33&type=chunk) [Parent Company Balance Sheet](index=23&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, parent company total assets and owner's equity both decreased, while total liabilities slightly increased, reflecting similar financial pressure as the consolidated statements Parent Company Balance Sheet Key Data (Period-end vs. Period-beginning) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,375,066,621.06 | 7,574,719,403.35 | -2.64 | | Total Liabilities | 6,102,999,322.58 | 5,993,808,939.51 | 1.82 | | Total Owner's Equity | 1,272,067,298.48 | 1,580,910,463.84 | -19.54 | - Parent company's period-end short-term borrowings were **CNY 2,239,692,991.67**, a **14.83% decrease** from the period-beginning[62](index=62&type=chunk) - Parent company's period-end other payables were **CNY 2,153,822,510.56**, a **32.88% increase** from the period-beginning[62](index=62&type=chunk) [Consolidated Income Statement](index=25&type=section&id=Consolidated%20Income%20Statement) In H1 2025, consolidated total operating revenue increased by 7.56% YoY, but total operating costs grew more significantly, resulting in negative total profit and net profit, with expanded losses compared to the prior period Consolidated Income Statement Key Data (Current Period vs. Prior Period) | Item | H1 2025 (CNY) | H1 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 699,238,134.16 | 650,101,867.19 | 7.56 | | Total Operating Cost | 951,823,902.72 | 861,217,722.86 | 10.52 | | Total Profit | -312,041,165.31 | -257,283,601.06 | N/A | | Net Profit | -298,680,598.83 | -248,419,842.01 | N/A | | Net Profit Attributable to Parent Company Shareholders | -299,260,842.78 | -248,419,842.01 | N/A | | Basic EPS (CNY/share) | -0.2150 | -0.1784 | N/A | - Operating costs increased by **19.33%** YoY, selling expenses increased by **19.91%** YoY, and administrative expenses decreased by **23.48%** YoY[30](index=30&type=chunk) - Financial expenses increased by **2.36%** YoY, and R&D expenses decreased by **3.77%** YoY[31](index=31&type=chunk) [Parent Company Income Statement](index=27&type=section&id=Parent%20Company%20Income%20Statement) In H1 2025, parent company operating revenue increased by 5.24% YoY, but operating costs significantly rose by 20.83%, leading to negative net profit and expanded losses compared to the prior period Parent Company Income Statement Key Data (Current Period vs. Prior Period) | Item | H1 2025 (CNY) | H1 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 657,505,373.10 | 624,733,523.09 | 5.24 | | Operating Cost | 645,210,535.39 | 534,006,169.19 | 20.83 | | Total Profit | -318,430,331.95 | -243,960,592.42 | N/A | | Net Profit | -308,843,165.36 | -238,992,135.47 | N/A | | Basic EPS (CNY/share) | -0.2218 | -0.1717 | N/A | - Parent company's selling expenses decreased by **37.5%** YoY, and administrative expenses decreased by **18.4%** YoY[69](index=69&type=chunk) [Consolidated Cash Flow Statement](index=29&type=section&id=Consolidated%20Cash%20Flow%20Statement) In H1 2025, consolidated net cash flow from operating activities turned negative, net cash flow from investing activities also significantly decreased, while net cash flow from financing activities turned positive, indicating cash flow pressure from operations and investments, mitigated by financing Consolidated Cash Flow Statement Key Data (Current Period vs. Prior Period) | Item | H1 2025 (CNY) | H1 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -99,307,786.14 | 29,988,461.32 | -431.15 | | Net Cash Flow from Investing Activities | -84,408,354.62 | 112,655,246.53 | -174.93 | | Net Cash Flow from Financing Activities | 196,153,228.39 | -127,157,951.07 | 254.26 | | Net Increase in Cash and Cash Equivalents | 12,523,995.52 | 15,562,476.37 | -19.53 | - Cash outflow from operating activities increased YoY, leading to a significant decrease in net cash flow from operating activities[31](index=31&type=chunk) - Cash inflow from investing activities decreased YoY, causing net cash flow from investing activities to turn from positive to negative[31](index=31&type=chunk) - Cash inflow from financing activities increased YoY, causing net cash flow from financing activities to turn from negative to positive[31](index=31&type=chunk) [Parent Company Cash Flow Statement](index=31&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In H1 2025, parent company net cash flow from operating activities turned negative, net cash flow from investing activities also significantly decreased, while net cash flow from financing activities substantially increased, indicating cash flow challenges in operations and investments, primarily sustained by financing Parent Company Cash Flow Statement Key Data (Current Period vs. Prior Period) | Item | H1 2025 (CNY) | H1 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -102,105,180.69 | 45,215,758.24 | -325.80 | | Net Cash Flow from Investing Activities | -89,908,354.62 | 136,312,420.17 | -165.96 | | Net Cash Flow from Financing Activities | 193,584,864.44 | 122,319,684.78 | 58.26 | | Net Increase in Cash and Cash Equivalents | 1,575,606.64 | 303,874,361.61 | -99.48 | [Consolidated Statement of Changes in Owner's Equity](index=33&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owner%27s%20Equity) In H1 2025, consolidated total owner's equity significantly decreased due to net losses, with increased minority interests unable to offset the decline in equity attributable to parent company owners Total Equity Attributable to Parent Company Owners (Period-end vs. Period-beginning) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | Change Amount (CNY) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Owners | 1,210,854,359.67 | 1,510,104,218.29 | -299,249,858.62 | - Total comprehensive income for the current period was **-CNY 298,669,614.67**, of which total comprehensive income attributable to parent company owners was **-CNY 299,249,858.62**[79](index=79&type=chunk) - Minority interests increased by **CNY 22,336,829.22** in the current period, mainly from subsidiaries absorbing minority shareholder investments[79](index=79&type=chunk)[73](index=73&type=chunk) [Parent Company Statement of Changes in Owner's Equity](index=41&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owner%27s%20Equity) In H1 2025, parent company total owner's equity decreased due to net losses, consistent with the consolidated statements' trend Total Parent Company Owner's Equity (Period-end vs. Period-beginning) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | Change Amount (CNY) | | :--- | :--- | :--- | :--- | | Total Owner's Equity | 1,272,067,298.48 | 1,580,910,463.84 | -308,843,165.36 | - Total comprehensive income for the current period was **-CNY 308,843,165.36**[90](index=90&type=chunk) [Company Overview](index=44&type=section&id=Company%20Overview) This section outlines the company's establishment, listing date, registered capital, address, and main business, confirming its focus on industrial diamonds, cultivated diamonds, and diamond products - Henan Yellow River Whirlwind Co., Ltd. was listed on the Shanghai Stock Exchange on **November 26, 1998**[91](index=91&type=chunk) - As of June 30, 2025, the company's total issued share capital was **1,442.1845 million shares**, with registered capital of **CNY 1,442.1845 million**[91](index=91&type=chunk) - The company's main business is industrial diamonds, cultivated diamonds, and diamond products, belonging to the non-metallic mineral products industry[91](index=91&type=chunk) [Basis of Financial Statement Preparation](index=44&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) This section explains that the company's financial statements are prepared in accordance with CAS and CSRC disclosure rules, and assessed on a going concern basis - These financial statements are prepared in accordance with the **Accounting Standards for Business Enterprises** issued by the Ministry of Finance and the disclosure requirements of **Rule No. 15 for Information Disclosure by Companies Issuing Securities Publicly – General Provisions for Financial Reports** by the China Securities Regulatory Commission[93](index=93&type=chunk) - The company prepares its financial statements on a **going concern basis** and has assessed its ability to continue as a going concern for 12 months from the end of the reporting period[94](index=94&type=chunk) [Significant Accounting Policies and Estimates](index=44&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's accounting policies and estimates for business combinations, financial instruments, inventories, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax, and leases, highlighting management's significant judgments and assumptions - The company's accounting year runs from **January 1 to December 31** of the Gregorian calendar, with a 12-month operating cycle, and the functional currency is **RMB**[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - Financial assets are classified into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[121](index=121&type=chunk) - Inventories are measured at the lower of cost and net realizable value, and are priced using the **weighted average method** at month-end when issued[146](index=146&type=chunk) - Fixed assets are depreciated using the **straight-line method** by category, with depreciation periods of **20-40 years** for buildings and **10-20 years** for machinery and equipment[169](index=169&type=chunk) - Revenue is recognized when the performance obligation in the contract is satisfied, i.e., when the customer obtains control of the relevant goods or services[191](index=191&type=chunk) [Taxation](index=76&type=section&id=Taxation) This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, and corporate income tax, noting a 15% preferential corporate income tax rate due to its high-tech enterprise status Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | VAT | Calculated based on sales of goods and taxable services as per tax laws, determining output tax, and after deducting input tax allowed for the current period, the difference is VAT payable | 13%, 9%, 6%, 3% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT and consumption tax paid | 7% | | Corporate Income Tax | Calculated based on taxable income | 25%, 15% | | Education Surcharge | Calculated based on actual VAT paid | 3% | | Local Education Surcharge | Calculated based on actual VAT paid | 2% | - The company was recognized as a high-tech enterprise on **October 28, 2024**, and the income tax rate for the current reporting period is **15%**[215](index=215&type=chunk) [Notes to Consolidated Financial Statement Items](index=77&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for consolidated financial statement items, including cash, receivables, inventory, fixed assets, borrowings, payables, revenue, costs, and various expenses, offering in-depth explanations and analysis of financial data Period-end Cash and Bank Balances | Item | Period-end Balance (CNY) | | :--- | :--- | | Cash on Hand | 977,152.38 | | Bank Deposits | 318,838,688.70 | | Other Cash and Bank Balances | 3,076,249.99 | | Total | 322,892,091.07 | - Period-end restricted cash and bank balances totaled **CNY 3,076,249.99**, primarily for deposits[217](index=217&type=chunk) - Period-end book value of accounts receivable was **CNY 844,456,776.29**, with an impairment provision rate of **32.78%**[229](index=229&type=chunk) - Period-end book value of inventories was **CNY 690,180,535.58**, with an inventory impairment provision of **CNY 77,426,519.18**[251](index=251&type=chunk)[253](index=253&type=chunk) - Period-end book value of fixed assets was **CNY 3,950,077,720.25**, of which the book value of buildings without completed property certificates totaled **CNY 783,786,358.86**[267](index=267&type=chunk)[269](index=269&type=chunk) - Period-end short-term borrowings totaled **CNY 2,510,907,749.67**, primarily consisting of guaranteed and mortgaged borrowings[291](index=291&type=chunk) - Period-end retained earnings balance was **-CNY 2,067,670,454.66**, indicating a further expanded loss compared to the period-beginning[319](index=319&type=chunk) Operating Revenue and Operating Cost (Current Period) | Contract Category | Operating Revenue (CNY) | Operating Cost (CNY) | | :--- | :--- | :--- | | Superhard Materials | 470,011,827.61 | 484,343,448.53 | | Metal Powder | 81,161,475.31 | 65,118,038.62 | | Domestic Region | 669,747,353.40 | 635,152,230.93 | | Foreign Region | 29,490,780.76 | 22,833,798.82 | [Research and Development Expenses](index=130&type=section&id=Research%20and%20Development%20Expenses) This section details the company's H1 2025 R&D expenses, totaling 39.16 million CNY, primarily comprising employee compensation, material consumption, fuel and power, and depreciation/amortization, with all R&D expenses recognized as period costs R&D Expenses by Nature (Current Period vs. Prior Period) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 12,264,979.56 | 14,781,845.33 | | Material Consumption | 16,785,237.71 | 15,340,524.94 | | Fuel and Power | 2,970,976.19 | 3,370,106.93 | | Depreciation and Amortization | 7,100,208.90 | 7,189,677.43 | | Total | 39,161,517.37 | 40,697,049.30 | - All R&D expenses for the current period were expensed, with no capitalized R&D expenses[357](index=357&type=chunk) [Changes in Consolidation Scope](index=131&type=section&id=Changes%20in%20Consolidation%20Scope) This section reports changes in the company's consolidation scope, primarily the establishment of a wholly-owned subsidiary, Liany Diamond (Henan) Co., Ltd., on April 22, 2025, which has been included in the consolidated financial statements - On **April 22, 2025**, the company established a new wholly-owned subsidiary, Liany Diamond (Henan) Co., Ltd., which was included in the consolidated financial statements for the current period[360](index=360&type=chunk) [Interests in Other Entities](index=132&type=section&id=Interests%20in%20Other%20Entities) This section details the company's interests in subsidiaries, joint ventures, and associates, including their registered capital, business nature, shareholding percentages, and accounting methods, illustrating the group's organizational structure and investment portfolio List of Major Subsidiaries (Partial) | Subsidiary Name | Registered Capital (CNY) | Shareholding (%) | Acquisition Method | | :--- | :--- | :--- | :--- | | Henan Yellow River Whirlwind International Co., Ltd. | 20,000,000.00 | 100 | Established | | Henan United Whirlwind Diamond Co., Ltd. | 46,195,019.50 | 100 | Established | | Henan Whirlwind New Material Technology Co., Ltd. | 50,000,000.00 | 66.67 | Established | | Liany Diamond (Henan) Co., Ltd. | 10,000,000.00 | 100 | Established | List of Significant Associates | Associate Name | Shareholding (%) | Accounting Method | | :--- | :--- | :--- | | Henan Xuzuan Technology Co., Ltd. | 20 | Equity Method | | Xuchang Industrial Investment New Quality Equipment Manufacturing Co., Ltd. | 20 | Equity Method | [Government Grants](index=137&type=section&id=Government%20Grants) This section discloses government grants received by the company during the reporting period, totaling 2.23 million CNY, primarily asset-related grants supporting high-tech industrialization demonstration projects and superhard material R&D Government Grants Recognized in Current Period P&L (Current Period vs. Prior Period) | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Asset-related | 2,031,028.44 | 1,908,333.76 | | Income-related | 200,000.00 | 10,382,859.00 | | Total | 2,231,028.44 | 12,291,192.76 | - Current period government grants primarily include asset-related subsidies for high-tech industrialization demonstration projects such as millimeter-bore press synthesis of high-quality coarse-grained diamonds and superhard composite materials[371](index=371&type=chunk) [Risks Related to Financial Instruments](index=138&type=section&id=Risks%20Related%20to%20Financial%20Instruments) This section analyzes the company's market risks (foreign exchange and interest rate), credit risk, and liquidity risk, outlining risk management policies and measures to balance risk and return within defined limits - The company's main financial instruments include cash and cash equivalents, notes receivable, accounts receivable, borrowings, notes payable, and accounts payable[372](index=372&type=chunk) - The company's foreign exchange risk is primarily related to **USD** and **EUR**, but no measures have been taken to hedge foreign exchange risk at present[372](index=372&type=chunk) - Interest rate risk is mainly associated with floating-rate bank borrowings, and the company's policy is to maintain these borrowings at floating rates[373](index=373&type=chunk) - To mitigate credit risk, the company approves credit limits and implements monitoring procedures to ensure the recovery of overdue receivables and the provision of adequate impairment allowances[373](index=373&type=chunk) - The company manages liquidity risk by maintaining sufficient cash and cash equivalents and monitoring the utilization of bank borrowings[374](index=374&type=chunk) [Fair Value Disclosures](index=139&type=section&id=Fair%20Value%20Disclosures) This section discloses the company's period-end assets and liabilities measured at fair value, primarily involving receivables financing, and explains valuation techniques and key parameters for Level 3 fair value measurements, such as receivables financing and unlisted equity investments Total Assets Continuously Measured at Fair Value (Period-end) | Item | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | | Receivables Financing | 6,532,394.18 | 6,532,394.18 | - Level 3 financial assets primarily include receivables financing and the company's equity investments in unlisted companies, with fair values approximated by book values or determined by reference to input costs and development stages[378](index=378&type=chunk) [Related Parties and Related Party Transactions](index=141&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) This section details the company's parent company, subsidiaries, joint ventures, associates, and other related parties, disclosing transactions such as purchases, sales, services, leases, guarantees, and fund borrowings, and lists period-end balances of receivables and payables with related parties - The company's controlling shareholder is **Xuchang State-owned Industrial Investment Co., Ltd.**, and the ultimate controlling party is the **Xuchang Municipal Finance Bureau**[381](index=381&type=chunk) Related Party Transactions for Goods Purchased/Services Received (Current Period) | Related Party | Related Transaction Content | Current Period Amount (CNY) | | :--- | :--- | :--- | | Xuchang Digital Technology Supply Chain Management Service Co., Ltd. | Materials | 8,546,858.36 | | Henan Xuzuan Technology Co., Ltd. | Processing Services | 17,332,526.00 | Related Party Transactions for Goods Sold/Services Provided (Current Period) | Related Party | Related Transaction Content | Current Period Amount (CNY) | | :--- | :--- | :--- | | Changge Yellow River Electrical Co., Ltd. | Sales of Goods | 93,369.79 | | Henan Xitan Synthetic Material Co., Ltd. | Sales of Materials | 257,489.72 | - The company, as the guaranteed party, received multiple guarantees from related parties such as **Yellow River Group**, **Qiao Qiusheng**, and **Wu Gaohua**[391](index=391&type=chunk)[392](index=392&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk) - The company borrowed multiple sums of funds from **Xuchang State-owned Industrial Investment Co., Ltd.**, totaling several hundred million CNY[395](index=395&type=chunk)[396](index=396&type=chunk) Receivables from Related Parties (Period-end Balance) | Item Name | Related Party | Book Balance (CNY) | Impairment Provision (CNY) | | :--- | :--- | :--- | :--- | | Accounts Receivable | Henan Xitan Synthetic Material Co., Ltd. | 1,083,385.49 | 126,262.81 | | Other Receivables | Henan Yellow River Industrial Group Co., Ltd. | 170,003,120.00 | 11,900,218.40 | Payables to Related Parties (Period-end Book Balance) | Item Name | Related Party | Period-end Book Balance (CNY) | | :--- | :--- | :--- | | Other Payables | Xuchang State-owned Industrial Investment Co., Ltd. | 1,459,951,521.17 | | Other Payables | Henan Jifeng Diamond Material Technology Co., Ltd. | 3,500,000.00 | [Share-based Payment](index=153&type=section&id=Share-based%20Payment) This section states that the company had no share-based payment transactions or expenses during the reporting period - No share-based payment expenses were incurred by the company during the reporting period[403](index=403&type=chunk) [Commitments and Contingencies](index=153&type=section&id=Commitments%20and%20Contingencies) This section discloses an unfulfilled capital contribution commitment to Henan Jifeng Diamond Material Technology Co., Ltd., which has not yet commenced, and confirms no other significant contingent matters at the balance sheet date - The company has an unfulfilled capital contribution commitment to Henan Jifeng Diamond Material Technology Co., Ltd., which has not yet commenced, and the company has not yet made the capital contribution[404](index=404&type=chunk) - The company had no significant contingent matters requiring disclosure at the balance sheet date[405](index=405&type=chunk) [Post-Balance Sheet Events](index=153&type=section&id=Post-Balance%20Sheet%20Events) This section states that no significant non-adjusting events, profit distributions, or sales returns occurred between the balance sheet date and the report disclosure date - No significant non-adjusting events, profit distributions, or sales returns occurred between the end of the reporting period and the report disclosure date[405](index=405&type=chunk) [Other Significant Matters](index=154&type=section&id=Other%20Significant%20Matters) This section discloses a major legal dispute regarding the acquisition of Shanghai Mingjiang equity, where original shareholders failed to fulfill performance compensation obligations, leading to a court judgment for share compensation and cash dividend return, which remains unfulfilled as of the report date - Due to Shanghai Mingjiang's unfulfilled performance commitments, original shareholders Chen Jun, Jiang Yuanyuan, and Shen Shanjun were unable to fulfill their performance compensation obligations[407](index=407&type=chunk) - The Xuchang Intermediate People's Court of Henan Province ruled that Chen Jun, Jiang Yuanyuan, and Shen Shanjun compensate the company with Yellow River Whirlwind shares and return cash dividends[409](index=409&type=chunk) - As of the report date, Chen Jun, Jiang Yuanyuan, Shen Shanjun, and others have not yet fulfilled their compensation obligations[410](index=410&type=chunk) [Notes to Parent Company Financial Statement Items](index=155&type=section&id=Notes%20to%20Parent%20Company%20Financial%20Statement%20Items) This section provides detailed notes for key parent company financial statement items, including accounts receivable, other receivables, and long-term equity investments, with comprehensive explanations of impairment provisions and investments in subsidiaries and associates - Parent company's period-end book value of accounts receivable was **CNY 747,538,716.21**, with an impairment provision rate of **35.71%**[415](index=415&type=chunk) - Parent company's period-end book value of other receivables was **CNY 704,432,887.90**, with a period-end impairment provision balance of **CNY 180,375,572.24**[424](index=424&type=chunk)[428](index=428&type=chunk) - Parent company's period-end book value of investments in subsidiaries was **CNY 157,368,802.23**, and investments in associates and joint ventures was **CNY 263,952,350.97**[434](index=434&type=chunk) [Supplementary Information](index=167&type=section&id=Supplementary%20Information) This section provides supplementary financial report information, including a detailed statement of non-recurring gains and losses, net asset return, and earnings per share, offering more comprehensive financial analysis data for investors Statement of Non-recurring Gains and Losses (Total) for the Current Period | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -520,951.42 | | Government Grants Recognized in Current Period P&L | 2,231,028.44 | | Other Non-operating Income and Expenses Apart from the Above | -700,896.23 | | Less: Income Tax Impact | 150,967.39 | | Minority Interests Impact (After Tax) | -332.50 | | Total | 858,545.90 | Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets (%) | Basic EPS (CNY/share) | Diluted EPS (CNY/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | -22.00 | -0.2150 | -0.2150 | | Net Profit Attributable to Common Shareholders of the Company Excluding Non-recurring Gains/Losses | -22.06 | -0.2156 | -0.2156 |

黄河旋风公告，2025年上半年营业收入6.99亿元，同比增长7.56%。净利润亏损2.99亿元。 ...

金融界消息 截至2025年8月25日收盘，黄河旋风（600172）报收于4.94元，下跌0.2%，换手率5.17%， 成交量65.99万手，成交金额3.27亿元。 天眼查商业履历信息显示，河南黄河旋风股份有限公司，成立于1998年，位于许昌市，是一家以从事非 金属矿物制品业为主的企业。企业注册资本144218.4476万人民币，实缴资本144218万人民币。公司法 定代表人为庞文龙。 通过天眼查大数据分析，河南黄河旋风股份有限公司共对外投资了27家企业，参与招投标项目276次， 知识产权方面有商标信息99条，专利信息649条，此外企业还拥有行政许可119个。 来源：金融界 资金流向方面，今日主力资金净流出2595.14万元，占比成交额7.95%。其中，超大单净流出249.43万 元、占成交额0.76%，大单净流出2345.71万元、占成交额7.18%，中单净流出流入242.88万元、占成交 额0.74%，小单净流入2352.26万元、占成交额7.2%。 黄河旋风最新一期业绩显示，截至2025一季报，公司营业总收入3.20亿元、同比减少2.61%，归属净利 润16741.11万元，同比减少58.14%，扣非净利 ...

Core Viewpoint - The new export control policy in 2024 marks a new stage of technological protection for the industry, shifting the policy focus from scale expansion to the construction of an innovation ecosystem through collaboration between industry, academia, and research [1]. Policy Evolution and Development Planning - The development of superhard materials in China can be divided into four stages: initiation, growth, accelerated development, and transformation breakthrough. The initiation phase began with the inclusion of superhard materials in the national strategic emerging industries during the "12th Five-Year Plan" in 2012. The growth phase was marked by the clear distinction of superhard materials in "Made in China 2025," which emphasized the need to overcome high-performance diamond and cubic boron nitride (CBN) preparation technologies. The accelerated development phase saw the emergence of "bottleneck" risk awareness from 2018 to 2020, leading to multiple regulations and guidelines that clarified the project's status and encouraged development. Since the "14th Five-Year Plan" in 2021, the industry has entered a transformation breakthrough phase, aiming to overcome high-end production technology challenges with the help of the existing upstream supply chain [2][3]. Differentiated Development Pattern Led by Henan - Henan Province has prioritized the development of the superhard materials industry, implementing policies such as "Six New Breakthroughs in Manufacturing" and "High-end Materials Cluster Construction Action Plan." The province focuses on high-end products like gem-grade and functional diamonds, supporting enterprises in increasing technological innovation and R&D investment. Comprehensive measures, including the establishment of national and provincial innovation platforms, collaboration among leading enterprises, and financial subsidies, are enhancing the overall industry chain cooperation level. Henan aims to transition from "quantity leading" to "quality leading" and "high-end application breakthroughs," solidifying its core position in the superhard materials industry both nationally and globally [5]. Industry Development Goals and Strategies - By 2025, the goal is to form a trillion-level industry chain and establish the world's largest superhard materials R&D and production base, cultivating a national-level industry cluster and striving for an internationally leading industry chain. The industry is expected to upgrade from traditional manufacturing to high-end, intelligent, and green production, promoting vertical extension (from raw materials to end products) and horizontal expansion (cross-industry integration with 5G, chips, medical, and biological fields) [6]. Innovation-Driven Strategy Upgrade - In recent years, Henan has emphasized technological innovation and high-end breakthroughs in the superhard materials industry, focusing on composite superhard materials, high-end diamond products, and polycrystalline diamond composites. The province is increasing policy and financial support, promoting technological breakthroughs and the transformation of results. Additionally, Henan is facilitating deep integration of superhard materials with high-value industries such as chip manufacturing, 5G communication, and biomedical fields, enhancing the innovation ecosystem and strengthening intellectual property protection and standard system construction [7]. Funding-Driven Market Ecosystem Integration - In response to rapid global technological advancements and the trend of high-quality industrial development, Henan's superhard materials industry policy will further deepen towards intelligent manufacturing, digital transformation, and green low-carbon directions. Future focus areas include intelligent equipment and automation production, cross-industry applications of superhard materials in new energy, semiconductors, and healthcare, as well as the promotion of green low-carbon processes. The policy is expected to strongly promote international cooperation and standardization, supporting leading enterprises in participating in international rule-making and integrating into the "Belt and Road" industrial network [9]. Policy Support Trends - The policy content is shifting from broad industry scale support to precise technological breakthroughs and support for high-end segments of the industry chain, emphasizing the construction of an industrial ecosystem. The government-led industry support is gradually integrating market mechanisms, encouraging social capital participation in the construction of the innovation ecosystem. Future policies will highlight the deep integration of intelligent manufacturing, digital transformation, and low-carbon green manufacturing with the superhard materials industry, promoting cross-industry innovation with cutting-edge technologies [10].

Group 1 - The core viewpoint of the article highlights the recent performance and financial metrics of Huanghe Xuanfeng Co., Ltd. as of August 13, 2025, showing a significant increase in stock price and notable changes in financial results [1] - Huanghe Xuanfeng's stock closed at 5.32 yuan, up 9.92%, with a trading volume of 1.3463 million hands and a transaction amount of 696 million yuan [1] - The company experienced a net inflow of 158 million yuan in main funds, accounting for 22.66% of the transaction amount, with large orders showing a net inflow of 211 million yuan [1] Group 2 - For the first quarter of 2025, Huanghe Xuanfeng reported total operating revenue of 320 million yuan, a year-on-year decrease of 2.61%, and a net profit attributable to shareholders of 167.41 million yuan, down 58.14% [1] - The company's liquidity ratios are concerning, with a current ratio of 0.392 and a quick ratio of 0.284, alongside a high debt ratio of 82.61% [1] - Huanghe Xuanfeng has made investments in 27 companies and participated in 276 bidding projects, holding 99 trademarks and 647 patents, along with 123 administrative licenses [2]

Core Viewpoint - Huanghe Xuanfeng's stock price reached a closing price of 5.32 yuan on August 13, with a significant increase of 9.92% and a market capitalization of 1.01 billion yuan, indicating strong market interest and positive sentiment towards the stock [1][2]. Group 1: Stock Performance - The stock hit the daily limit and closed at 5.32 yuan, with a closing price increase of 9.92% on August 13 [1][2]. - The stock's limit was reached at 9:55 AM and remained unbroken until the market closed, with a total of 1.01 billion yuan in closing orders, accounting for 1.49% of its circulating market value [1]. Group 2: Factors Influencing Stock Movement - Positive industry policy expectations are increasing, with ongoing support for the manufacturing sector signaling favorable conditions [1]. - There is an anticipated improvement in the company's fundamentals, with market focus on potential business restructuring and cost optimization opportunities [1]. - Institutional participation has increased, as indicated by the disclosed holdings data, which enhances investor confidence [1]. - A technical breakout from a trading range has triggered market sentiment, attracting short-term investors [1]. Group 3: Capital Flow Analysis - On August 13, the net inflow of main funds was 1.58 billion yuan, representing 22.66% of the total trading volume, while retail investors experienced a net outflow of 7706.14 million yuan, accounting for 11.07% of the total trading volume [1][2]. - The stock is associated with the cultivated diamond, diamond wire, and intelligent manufacturing concepts, which saw respective increases of 2.58%, 1.08%, and 0.89% on the same day [2].