Core Viewpoint - Zhonghua Equipment (600579) reported a significant decline in revenue and a narrowing of losses in its 2025 interim report, indicating ongoing challenges following a major asset restructuring in 2024 [1][4]. Financial Performance Summary - Total operating revenue for 2025 was 658 million yuan, a decrease of 85.39% year-on-year [1]. - The net profit attributable to shareholders was -18.38 million yuan, an improvement of 93.6% compared to the previous year [1]. - The gross profit margin was 17.16%, down 18.48% year-on-year, while the net profit margin was -2.79%, an increase of 46.88% [1]. - Total expenses (selling, administrative, and financial) amounted to 89.24 million yuan, accounting for 13.56% of revenue, a reduction of 49.8% year-on-year [1]. - Earnings per share improved to -0.04 yuan, a 93.1% increase year-on-year [1]. Changes in Financial Items - Significant changes in financial items were attributed to a major asset restructuring in 2024, which excluded certain subsidiaries from the consolidated financial statements [4][5]. - The operating income decreased by 85.39% due to the exclusion of Luxembourg Equipment and its subsidiaries from the consolidation [4]. - Operating costs also fell by 84.67% for the same reason [4]. - Financial expenses decreased by 95.18%, reflecting the impact of the restructuring [5]. Cash Flow and Financial Health - The company reported a negative operating cash flow per share of -0.08 yuan, a decrease of 51.96% year-on-year [1]. - The cash flow from operating activities showed a decline of 51.42%, again linked to the restructuring [5]. - The liquidity ratio, indicated by cash and cash equivalents to current liabilities, was only 20.55%, suggesting potential liquidity issues [7]. Business Model and Historical Performance - The company's business model relies heavily on research and marketing efforts, necessitating a thorough examination of the underlying drivers [6]. - Historical performance indicates a median return on invested capital (ROIC) of -0.39% over the past decade, with a particularly poor ROIC of -35.04% in 2024 [5].

证券代码：600579 证券简称：中化装备 编号：2025-047 中化装备科技（青岛）股份有限公司 重大资产重组进展公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 特别提示： 一、本次交易的基本情况 公司拟发行股份购买中国化工装备有限公司持有的益阳橡胶塑料机械集 团有限公司 100%股权、北京蓝星节能投资管理有限公司持有的蓝星（北京） 化工机械有限公司 100%股权，并向不超过 35 名符合条件的特定投资者发行 股份募集配套资金（以下简称"本次交易"）。 根据《上市公司重大资产重组管理办法》等相关法律法规的规定，本次交 易构成关联交易，预计构成重大资产重组，本次交易不会导致公司控股股东、 实际控制人变更。 二、本次交易进展情况 公司因筹划重大资产重组事项，经公司向上海证券交易所（以下简称 "上交所"）申请，公司股票于2025年7月15日开市起停牌，具体内容详见公 司于2025年7月15日披露的《中化装备科技（青岛）股份有限公司关于筹划 中化装备科技（青岛）股份有限公司（以下简称"公司"）于 2025 年 7 月 29 ...

公司代码：600579 公司简称：中化装备 第一节 重要提示 1.1本半年度报告摘要来自半年度报告全文，为全面了解本公司的经营成果、财务状况及未来发展规 划，投资者应当到上海证券交易所（www.sse.com.cn）网站仔细阅读半年度报告全文。 1.2本公司董事会及董事、高级管理人员保证半年度报告内容的真实性、准确性、完整性，不存在虚假 记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 1.3公司全体董事出席董事会会议。 1.4本半年度报告未经审计。 1.5董事会决议通过的本报告期利润分配预案或公积金转增股本预案 不适用 第二节 公司基本情况 2.1公司简介 ■ 2.2主要财务数据 单位: 股 ■ 2.4截至报告期末的优先股股东总数、前10名优先股股东情况表 □适用 √不适用 2.5控股股东或实际控制人变更情况 单位：元 币种：人民币 ■ 2.3前10名股东持股情况表 □适用 √不适用 2.6在半年度报告批准报出日存续的债券情况 □适用 √不适用 第三节 重要事项 公司应当根据重要性原则，说明报告期内公司经营情况的重大变化，以及报告期内发生的对公司经营情 况有重大影响和预计未来会有重大影响的事项 □适 ...

Group 1 - The latest stock price of Sinochem Equipment is 9.15 yuan, up 1.89% from the previous trading day, with a trading volume of 211 million yuan [1] - The company operates in the specialized equipment manufacturing industry, focusing on the research, production, and sales of plastic machinery, chemical equipment, and rubber machinery, along with providing related services and digital solutions [1] - The actual controller of the company is China National Chemical Corporation [1] Group 2 - According to the latest semi-annual report, the company achieved an operating income of 658 million yuan in the first half of 2025, with a net profit loss attributable to shareholders of 18.38 million yuan, reducing the loss by 269 million yuan compared to the same period last year [1] - During the reporting period, the company received government subsidies amounting to 7.1 million yuan, and several new institutional investors appeared among the top ten circulating shareholders [1]

证券代码：600579 证券简称：中化装备 编号：2025-046 中化装备科技（青岛）股份有限公司 第八届董事会第二十次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 中化装备科技（青岛）股份有限公司（以下简称"公司"）第八届董事会第 二十次会议通知及相关议案于 2025 年 8 月 15 日以邮件形式发出，会议于 2025 年 8 月 25 日在北京市朝阳区北土城西路 9 号 511 会议室以现场结合通讯的方式 召开。会议应出席董事 9 人，实际出席董事 9 人。会议由董事长张驰先生主持， 公司高管列席会议。会议的召集、召开和表决符合《公司法》等法律法规以及《中 化装备科技（青岛）股份有限公司章程》的要求。会议同时听取了《2025 年半 年度董事会授权行使情况报告》。与会董事经认真审议，表决了以下议案，形成 如下决议： 一、审议通过了《关于 <公司 ensp="ensp" 年半年度报告="年半年度报告"> 及 <摘要> 的议案》 本议案已经第八届董事会审计委员会第十四次会议审议通过后提交董事会 审议。 具体内 ...

中化装备科技（青岛）股份有限公司第八届董事会独立董事第八次专门会议 会议决议 中化装备科技（青岛）股份有限公司 第八届董事会独立董事第八次专门会议决议 中化装备科技（青岛）股份有限公司（以下简称"公司"）第八届董事会独 立董事专门会议第八次会议通知及相关议案于 2025 年 8 月 19 日以邮件形式发出， 会议于 2025 年 8 月 22 日在北土城西路 9 号 511 会议室以现场与通讯相结合的方 式召开。本次会议应参与表决独立董事 3 名，实际参与表决独立董事 3 名。会议 由独立董事刘雪娇主持会议，会议的召集、召开和表决符合《公司法》等法律法 规以及《中化装备科技（青岛）股份有限公司章程》（以下简称"《公司章程》"） 的要求，表决所形成的决议合法、有效。 一、审议通过了《关于中化集团财务有限责任公司 2025 年半年度风险持续 评估报告的议案》 我们同意将该事项提交公司第八届董事会第二十次会议审议，关联董事需回 避表决。 表决结果：同意 3 票，反对 0 票，弃权 0 票。 （以下无正文） 中化装备科技（青岛）股份有限公司第八届董事会独立董事第八次专门会议 会议决议 （此页无正文，为中化装备科技（青 ...

智通财经APP讯，中化装备(600579.SH)披露2025年半年度报告，报告期公司实现营收6.58亿元，同比下 降85.39%;归母净利润亏损1838万元;扣非净利润亏损2681万元;基本每股收益-0.04元。 ...

Group 1 - The core viewpoint of the article is that Sinochem Equipment (SH 600579) held its eighth board meeting on August 22, 2025, to review important financial risk assessment reports [1] - For the fiscal year 2024, Sinochem Equipment's revenue composition is as follows: 97.34% from chemical machinery and equipment manufacturing, and 2.66% from engineering, supervision, and technical services [1] - As of the report date, Sinochem Equipment has a market capitalization of 4.5 billion yuan [1] Group 2 - The A-share market has seen trading volumes exceed 2 trillion yuan for eight consecutive days, indicating strong market activity [1] - Major industry players are actively recruiting for fall positions, with 25 job openings highlighting various characteristics [1]

现公司股权结构如下： 中化财务公司母公司和最终控制方为中国中化控股有限责任公司。 中化装备科技（青岛）股份有限公司 关于中化集团财务有限责任公司 2025 年半年度 风险持续评估报告 根据《上海证券交易所上市公司自律监管指引第 5 号—交易与关联交易》的要求，中化 装备科技（青岛）股份有限公司（以下简称"本公司"）通过查验中化集团财务有限责任公司 （以下简称"公司"或"中化财务公司"）的《企业法人营业执照》《金融许可证》等证件资料， 并审阅了其包括资产负债表、利润表、现金流量表等在内的定期财务报告，基于大华会计师 事务所（特殊普通合伙）出具的（大华核字[2025]0011007565 号）《风险评估报告》，对中 化财务公司的经营资质、业务和风险状况进行了评估，现形成 2025 年半年度风险持续评估 报告如下： 一、中化财务公司基本情况 中化财务公司系经原中国银行业监督管理委员会批准，2008 年 5 月取得金融许可证， 于 2008 年 6 月 4 日 在 北 京 成 立 的 有 限 责 任 公 司 。 现 公 司 统 一 社 会 信 用 代 码 为 911100007109354688，注册资本 60 亿元 ...

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors and senior management guarantee the authenticity, accuracy, and completeness of this unaudited semi-annual report, which contains forward-looking statements that do not constitute substantial commitments and require investor risk awareness; no material risks were identified during the reporting period - The company's Board of Directors and senior management guarantee that the report is true, accurate, and complete, and bear legal responsibility[3](index=3&type=chunk) - This semi-annual report is **unaudited**[5](index=5&type=chunk) - The report contains forward-looking statements regarding future plans, which do not constitute substantial commitments to investors, who should be aware of investment risks[6](index=6&type=chunk) - During the reporting period, there were no particularly significant risks that had a substantial impact on the company's production and operation[7](index=7&type=chunk) [Section 1 Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines specific terms used in the report to ensure accurate reader comprehension - The reporting period refers to January 1, 2025, to June 30, 2025[15](index=15&type=chunk) - Due to a major asset restructuring, KM Group and its subsidiaries are no longer included in the consolidated financial statements as of December 31, 2024, and Equipment Luxembourg has been reclassified from a wholly-owned subsidiary to an associate company[15](index=15&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=4&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's basic information, contact details, stock profile, and key financial indicators, noting that a 2024 major asset restructuring significantly impacted financial performance, leading to a sharp decline in revenue but a reduced net loss [Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) Company Basic Information | Item | Details | | :--- | :--- | | Chinese Name | 中化装备科技（青岛）股份有限公司 | | Chinese Abbreviation | 中化装备 | | English Name | Sinochem Equipment Technology(Qingdao) Company Limited | | Legal Representative | Zhang Chi | [Contacts and Contact Methods](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Company Contact Information | Title | Name | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | | Secretary of the Board | Zhang Xiaofeng | 010-61958651 | 010-61958777 | IR.600579@sinochem.com | | Securities Affairs Representative | Yang Wei | 010-61958651 | 010-61958777 | IR.600579@sinochem.com | [Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) Company Registered and Office Addresses | Item | Details | | :--- | :--- | | Registered Address | No. 3, Jinling Industrial Park, Jihongtan, Chengyang District, Qingdao City, Shandong Province | | Office Address | No. 9, Beitu Chengxi Road, Chaoyang District, Beijing | | Company Website | www.sinochemeqpt.com | | Email | IR.600579@sinochem.com | [Changes in Information Disclosure and Document Location](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) Information Disclosure Channels | Item | Details | | :--- | :--- | | Information Disclosure Newspapers | "China Securities Journal", "Shanghai Securities News" | | Designated Website | Shanghai Stock Exchange (www.sse.com.cn) | | Report Location | Office of the Board of Directors | [Company Stock Profile](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) Stock Information | Stock Type | Stock Exchange | Stock Ticker | Stock Code | Previous Stock Ticker | | :--- | :--- | :--- | :--- | :--- | | A-Share | Shanghai Stock Exchange | 中化装备 | 600579 | 克劳斯 | [Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, operating revenue decreased significantly by 85.39% year-on-year, but net profit attributable to shareholders narrowed by CNY 269 million, primarily due to the exclusion of the plastics machinery business from consolidation following a major asset restructuring in 2024 Key Accounting Data (Jan-Jun 2025 vs Prior Year Period) | Indicator | Current Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 658,224,327.10 | 4,505,508,843.87 | -85.39 | | Total Profit | -13,125,178.63 | -289,111,977.80 | N/A | | Net Profit Attributable to Shareholders | -18,375,916.45 | -287,093,035.56 | N/A | | Net Cash Flow from Operating Activities | -41,856,502.80 | -27,642,785.01 | N/A | Key Financial Indicators (Jan-Jun 2025 vs Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/Share) | -0.04 | -0.58 | N/A | | Diluted Earnings Per Share (CNY/Share) | -0.04 | -0.58 | N/A | | Weighted Average Return on Equity (%) | -1.10 | -50.05 | N/A | - The changes in operating revenue and profit were primarily due to the major asset restructuring in 2024, after which Equipment Luxembourg and its KM Group were no longer included in the company's consolidated financial statements[21](index=21&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Non-recurring profit and loss for the reporting period totaled CNY 8,438,862.31, mainly comprising government grants and other non-operating income and expenses Non-recurring Profit and Loss Items | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 232,951.58 | | Government Grants Recognized in Current Profit or Loss | 7,102,509.03 | | Other Non-operating Income and Expenses | 2,592,794.36 | | Less: Income Tax Impact | 1,489,392.66 | | Total | 8,438,862.31 | [Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section details the company's industry, core business, operational results, core competencies, asset and liability status, and investment activities, while also disclosing potential risks and corresponding countermeasures as it focuses on its two main businesses of chemical and rubber machinery [Industry and Core Business Overview](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) As an equipment manufacturing company under Sinochem, the company's core business involves the R&D, production, and sales of chemical and rubber machinery, with both segments transitioning towards high-end, intelligent, and green solutions while expanding in "Belt and Road" markets - The company's core business includes the R&D, production, sales, and full-lifecycle services for chemical equipment and rubber machinery, classified under the C35 "Specialized Equipment Manufacturing" industry[26](index=26&type=chunk) - The chemical equipment manufacturing sector is advancing towards larger scale, energy efficiency, differentiation, and high-tech solutions, with an emphasis on "green production"[29](index=29&type=chunk) - The rubber machinery industry is shifting from "quantity growth" to "quality improvement" by advancing technology (composite extrusion, intelligent control), promoting green manufacturing (electric heating, recycled rubber equipment), and expanding into "Belt and Road" markets[29](index=29&type=chunk) [(I) Industry Overview and Development Stage](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E8%A1%8C%E4%B8%9A%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%8A%E5%8F%91%E5%B1%95%E9%98%B6%E6%AE%B5) - The national "14th Five-Year Plan" for the petrochemical equipment industry aims to develop high-end equipment, promote the localization of large-scale complete sets of equipment, and advance energy-saving and environmentally friendly technologies[29](index=29&type=chunk) - China's rubber machinery industry has become a global production and sales hub, with equipment such as hydraulic curing presses and giant OTR tire building machines reaching international advanced levels[29](index=29&type=chunk) [(II) Company's Industry Position](index=8&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E7%9A%84%E8%A1%8C%E4%B8%9A%E5%9C%B0%E4%BD%8D) - Tianhua Institute is recognized as a national "Manufacturing Single Champion" enterprise, possessing strong technical advantages and providing end-to-end solutions in the petrochemical, coal chemical, and chemical fiber industries[30](index=30&type=chunk) - Sinochem Rubber Machinery, a pioneer in manufacturing radial tire curing presses in China, **ranked 20th globally in rubber machinery sales revenue in 2024** and is transitioning towards becoming an integrated solution provider[30](index=30&type=chunk) [(III) Main Business, Products, and Applications](index=8&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E4%BA%A7%E5%93%81%E5%8F%8A%E7%94%A8%E9%80%94) - Chemical equipment products include large-scale drying equipment, waste heat recovery systems, industrial furnaces, and electrochemical anti-corrosion equipment, widely used in petrochemical, coal chemical, and new materials industries[31](index=31&type=chunk) - Rubber machinery products include curing equipment and electrical control cabinets for passenger, truck, and OTR tires, supporting intelligent, efficient, green, and safe tire production[31](index=31&type=chunk) [(IV) Business Operating Model](index=8&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E4%B8%9A%E5%8A%A1%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) - Both Tianhua Institute and Sinochem Rubber Machinery operate on a "make-to-order" production model, with the former providing comprehensive services and the latter handling equipment production, delivery, installation, and maintenance[31](index=31&type=chunk)[32](index=32&type=chunk) [(V) Performance Drivers](index=9&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) - The performance of the chemical equipment business is primarily driven by new construction and upgrade investment plans in downstream target industries[32](index=32&type=chunk) - The rubber machinery business is driven by technological innovation, localization of core technologies, a global strategy focusing on "Belt and Road" markets, and green upgrades spurred by "dual carbon" policies[32](index=32&type=chunk) [Discussion and Analysis of Operating Performance](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the reporting period, operating revenue fell 85.39% YoY to CNY 658 million, but net profit attributable to the parent company narrowed by CNY 269 million to CNY -18 million, while new orders grew 10% to CNY 723 million, driven by a 162% increase at Sinochem Rubber Machinery H1 2025 Operating Data | Indicator | Amount (CNY billion) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 0.658 | -85.39% | | Net Profit Attributable to Shareholders | -0.018 | Loss narrowed by CNY 0.269 billion | | Basic Earnings Per Share | -0.04 | Loss narrowed by CNY 0.54 | | New Orders Signed | 0.723 | +10% | | Orders on Hand | 1.299 | -6% | - The decline in operating revenue was mainly affected by long-cycle orders from the previous year and continued global geopolitical and economic uncertainty[34](index=34&type=chunk) - Tianhua Institute signed **new orders worth CNY 629 million**, a year-on-year increase of 2%; Sinochem Rubber Machinery signed **new orders worth CNY 93.51 million**, a year-on-year increase of 162%[33](index=33&type=chunk) - The company strengthened its technology planning, with Tianhua Institute applying for 29 patents and being granted 37, while Sinochem Rubber Machinery initiated 4 new R&D projects and applied for 14 patents[34](index=34&type=chunk) - The company achieved year-on-year growth in new orders by participating in domestic and international exhibitions, deepening technical exchanges with customers, and leveraging internal synergies[35](index=35&type=chunk) - The company advanced state-owned enterprise reforms by optimizing its list of powers and responsibilities, revising systems, promoting tenure and contractual management, and recruiting research talent[36](index=36&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies are rooted in the strong innovation capabilities, technological advantages, and industry qualifications of its two main subsidiaries, Tianhua Institute and Sinochem Rubber Machinery, which have achieved key technological breakthroughs and are transitioning towards high-end intelligent manufacturing - Tianhua Institute is a national-level enterprise technology center and an innovative pilot enterprise, holding **687 valid patents (including 235 invention patents)** and numerous industry qualification certificates[37](index=37&type=chunk) - Tianhua Institute has achieved significant breakthroughs and domestic substitution in key technologies such as methanation waste heat recovery units, PTA industrial liquid-solid separation, and LDPE plant hot box systems[37](index=37&type=chunk) - Sinochem Rubber Machinery is a national high-tech enterprise and a provincial "Manufacturing Single Champion," possessing a provincial enterprise technology center and independently developing high-grade hydraulic curing presses for passenger car radial tires with advantages in efficiency, stability, and energy savings[38](index=38&type=chunk) [Key Operating Activities During the Reporting Period](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This section analyzes the company's operating performance, including changes in its business composition, financial position, investment activities, and the performance of its main subsidiaries, noting a shift from three to two core business segments post-restructuring while maintaining a stable financial structure [(I) Analysis of Core Business](index=11&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Due to the 2024 major asset restructuring, the company's revenue, costs, and expenses all experienced significant changes as the business shifted from three segments to two, with profits now primarily generated by the parent company and its subsidiaries Tianhua Institute and Sinochem Rubber Machinery Changes in Financial Statement Items (Jan-Jun 2025 vs Prior Year Period) | Item | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 658,224,327.10 | 4,505,508,843.87 | -85.39 | | Operating Costs | 545,251,855.49 | 3,556,890,915.39 | -84.67 | | Selling Expenses | 14,034,611.73 | 660,803,092.82 | -97.88 | | Administrative Expenses | 67,530,834.41 | 396,823,958.84 | -82.98 | | Finance Costs | 7,676,169.67 | 159,327,282.82 | -95.18 | | R&D Expenses | 40,909,818.86 | 173,483,832.32 | -76.42 | - The significant changes in the above indicators were primarily due to the major asset restructuring in 2024, after which Equipment Luxembourg and its KM Group were no longer included in the company's consolidated financial statements[40](index=40&type=chunk) - The company's core business has shifted from three segments—plastics machinery, chemical equipment, and rubber machinery—to a focus on the latter two[41](index=41&type=chunk) [(III) Analysis of Assets and Liabilities](index=11&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) As of the period-end, total assets were CNY 3.76 billion, a 0.60% decrease from the previous year-end, while net assets attributable to shareholders were CNY 1.66 billion, a 1.03% decrease, with inventories and long-term borrowings increasing while right-of-use assets and lease liabilities decreased Changes in Assets and Liabilities (Period-end vs Prior Year-end) | Item | Current Period-end (CNY) | Prior Year-end (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 268,195,637.44 | 283,378,357.38 | -5.36 | | Inventories | 576,551,100.60 | 526,477,749.82 | 9.51 | | Short-term Borrowings | 262,221,096.67 | 249,931,698.19 | 4.92 | | Long-term Borrowings | 99,779,619.44 | 89,966,458.33 | 10.91 | | Lease Liabilities | 465,623.24 | 704,865.03 | -33.94 | - The increase in long-term borrowings was for operational purposes, while the decrease in lease liabilities was due to periodic rent payments[44](index=44&type=chunk) Major Restricted Assets (Period-end) | Item | Period-end Balance (CNY) | Restriction Type | | :--- | :--- | :--- | | Cash and Cash Equivalents | 59,538,145.73 | Security deposits, maintenance funds, etc. | | Notes Receivable | 44,212,164.19 | Pledged for discounting, endorsement, etc. | | Total | 103,750,309.92 | / | [(IV) Analysis of Investment Activities](index=12&type=section&id=(%E5%9B%9B)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) To integrate special equipment inspection resources, Tianhua Institute established Sinochem Tianhua (Lanzhou) Special Equipment Inspection Co., Ltd. with a registered capital of CNY 26.3 million to expand its inspection services and related technology R&D - On March 24, 2025, Tianhua Institute established Sinochem Tianhua (Lanzhou) Special Equipment Inspection Co., Ltd. with a **registered capital of CNY 26.3 million**[45](index=45&type=chunk) - The new company's business scope includes inspection and testing of special equipment, production safety inspection, and engineering and technology R&D[45](index=45&type=chunk) [(VI) Analysis of Major Subsidiaries and Associates](index=14&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's main subsidiaries, Tianhua Institute and Sinochem Rubber Machinery, showed varied performance, with the former achieving a net profit of CNY 42.93 million on CNY 601.19 million in revenue, while the latter recorded a net loss of CNY 26.29 million on CNY 57.02 million in revenue Financial Performance of Major Subsidiaries and Associates (Unit: CNY million) | Company Name | Company Type | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Tianhua Institute | Subsidiary | 601.19 | 48.95 | 42.93 | | Sinochem Rubber Machinery | Subsidiary | 57.02 | -29.54 | -26.29 | | Equipment Luxembourg | Associate | 3,597.47 | -98.34 | -125.55 | [Other Disclosures](index=16&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from macroeconomic conditions and business changes but is actively responding through reforms, innovation, and market expansion, while also committing to creating sustainable investor value by enhancing competitiveness, optimizing operations, and strengthening governance [(I) Potential Risks](index=16&type=section&id=(%E4%B8%80)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) - The company faces risks from external adverse factors such as **macroeconomic fluctuations, international geopolitical conflicts, a global economic slowdown, and intensified industry competition**[51](index=51&type=chunk) - Both the chemical and rubber machinery businesses are in cyclical industries, where an economic downturn could reduce demand, and new US tariff policies may increase costs[51](index=51&type=chunk) - The company's core business has shifted from three segments to two following a major asset sale, requiring a focus on improving quality and efficiency to expand volume and profit[52](index=52&type=chunk) - The company faces impairment risks related to receivables, inventory, and long-term assets, which it will mitigate by enhancing operational excellence[52](index=52&type=chunk) [(II) Other Disclosures](index=16&type=section&id=(%E4%BA%8C)%20%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company is actively implementing its "Quality and Efficiency Improvement and Shareholder Return" action plan by developing its "15th Five-Year" strategic plan, promoting operational excellence, strengthening innovation, improving governance, and enhancing investor communication to boost corporate value - The company has formulated its "15th Five-Year" strategic plan, focusing on a transformation towards "high-end, green, intelligent, international, localized, and service-oriented" development to build a new materials application ecosystem[53](index=53&type=chunk)[54](index=54&type=chunk) - The company is advancing its operational excellence management system, enhancing operational capabilities through synergistic marketing, cost reduction in procurement, and lean production, resulting in year-on-year growth in new orders[54](index=54&type=chunk) - The company adheres to innovation-driven development; in the first half of the year, Tianhua Institute applied for 29 patents and was granted 37, while Sinochem Rubber Machinery initiated 4 new R&D projects and applied for 14 patents[54](index=54&type=chunk) - The company has improved its governance mechanisms, optimized its list of powers and responsibilities, revised systems, and enhanced its ESG performance, with its **Wind ESG rating upgraded from BBB to A**[55](index=55&type=chunk) - The company has strengthened investor communication by improving the quality of information disclosure and actively conveying corporate value through earnings calls and investor meetings[55](index=55&type=chunk) - The company prioritizes investor returns, having used **share buybacks instead of dividends for six consecutive years since 2019**, with a cumulative repurchase amount exceeding CNY 40 million, and plans to continue repurchasing shares[56](index=56&type=chunk)[57](index=57&type=chunk) [Corporate Governance, Environment, and Society](index=19&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section discloses changes in directors and senior management, the profit distribution plan, and environmental information disclosure, noting the dissolution of the Supervisory Committee and the company's commitment to environmental protection and emissions reduction [Changes in Directors and Senior Management](index=19&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) - The company has **dissolved the Supervisory Committee**, with its functions now exercised by the Audit Committee of the Board of Directors[60](index=60&type=chunk) - Mr. Wang Feng and Ms. Gong Lili resigned from their positions as directors and members of relevant committees due to work adjustments[60](index=60&type=chunk) - Mr. Hu Bin and Mr. Sun Xiaotao have been nominated as non-independent director candidates for the eighth session of the Board of Directors[61](index=61&type=chunk) [Profit Distribution or Capitalization of Capital Reserve Plan](index=19&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%1%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) - No profit distribution or capitalization of capital reserve plan is applicable for this semi-annual report[62](index=62&type=chunk) [Environmental Information of the Company and its Subsidiaries Listed for Mandatory Disclosure](index=20&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company and its subsidiaries are listed for mandatory environmental information disclosure and strictly adhere to environmental regulations, increasing investment in environmental protection and implementing various energy-saving measures, resulting in a reduction of 726 tons of CO2 emissions in H1 - Tianhua Chemical Machinery & Automation Research and Design Institute Co., Ltd., Tianhua Institute (Nanjing) Intelligent Manufacturing Co., Ltd., and Sinochem (Fujian) Rubber & Plastics Machinery Co., Ltd. are all included in the list of enterprises for mandatory environmental information disclosure[64](index=64&type=chunk) - The company strictly complies with national environmental regulations, sets environmental goals, increases investment in environmental protection, and implements the Sinochem FORUS system to enhance environmental performance[64](index=64&type=chunk) - The company reduces energy consumption and carbon dioxide emissions through industrial equipment upgrades, production process optimization, product technology innovation, and photovoltaic power projects[67](index=67&type=chunk) - In the first half of 2025, the company's cumulative photovoltaic power generation reached **2.03 million kWh**, reducing carbon dioxide emissions by **726 tons**[67](index=67&type=chunk) [Section 5 Significant Events](index=22&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section discloses the fulfillment of significant commitments, major litigation, and related-party transactions, highlighting an ongoing major asset restructuring to acquire two companies via share issuance to enhance core business capabilities [Fulfillment of Commitments](index=22&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's ultimate controller, shareholders, and related parties have strictly fulfilled their commitments regarding non-competition, dividends, and related-party transactions, including plans to inject assets to resolve competition issues and using share buybacks to meet dividend commitments - China National Chemical Corporation and its equipment subsidiary have committed to resolving competition issues by planning to inject their equity in Yiyang Rubber Machinery and Guilin Rubber Machinery into the listed company once conditions are met[70](index=70&type=chunk) - The company and Tianhua Institute have committed to using **share buybacks in lieu of cash dividends**, with the repurchase amount being no less than 10% of the consolidated net profit for the year[71](index=71&type=chunk) - Equipment Global, Sanming Chemical Machinery, and Huarong Autocontrol have committed to avoiding competition and related-party transactions with the listed company and its subsidiaries[72](index=72&type=chunk)[73](index=73&type=chunk) - Huaxia Hanhua has committed to terminating and avoiding any related-party transactions with the listed company and its subsidiaries[75](index=75&type=chunk) [Major Litigation and Arbitration](index=28&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company is involved in several major legal disputes, including a product quality case where Tianhua Institute was ordered to pay CNY 31.87 million in the first instance, which is now under appeal, and a payment dispute involving Sinochem Rubber Machinery that has been remanded for retrial - Tianhua Institute is facing a subrogation claim of **CNY 38.62 million** from an insurance company due to product defects; the first-instance verdict ordered a payment of **CNY 31.87 million**, and the case is currently under appeal[77](index=77&type=chunk) - A contract dispute involving Tianhua Institute (Nanjing) Intelligent Manufacturing Co., Ltd. resulted in a court order for the plaintiff to continue the contract and pay **CNY 28.53 million**; the verdict was upheld on appeal and is now in enforcement[78](index=78&type=chunk) - In a payment dispute between Sinochem Rubber Machinery and Shouguang Fomex Tyre Co., Ltd., the first-instance court ordered mutual payments, but the case was remanded for retrial by the appellate court[81](index=81&type=chunk)[82](index=82&type=chunk) - A lawsuit filed by Tianhua Institute regarding fraud related to an independent letter of guarantee against Indorama PTA Montreal S.E.C. was dismissed in the first instance and is now under appeal[80](index=80&type=chunk) - A dispute between Tianhua Institute and Xinjiang Korla Zhongtai Petrochemical Co., Ltd. was settled through court mediation, resulting in the full recovery of **CNY 17.48 million** through a combination of cash and property[81](index=81&type=chunk) [Significant Related-Party Transactions](index=33&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in routine operational transactions with related parties, including financial services with Sinochem Group Finance Co., Ltd., where the company held deposits of CNY 183 million and had outstanding loans of CNY 222 million at the period-end - The company has a "Financial Services Agreement" with Sinochem Group Finance Co., Ltd. for deposits, settlements, credit, and other financial services[84](index=84&type=chunk) Deposit Business with Sinochem Group Finance Co., Ltd. | Related Party | Opening Balance (CNY) | Deposits this Period (CNY) | Withdrawals this Period (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Sinochem Group Finance Co., Ltd. | 216,683,804.32 | 8,207,098,808.07 | 8,240,648,006.38 | 183,134,606.01 | Loan Business with Sinochem Group Finance Co., Ltd. | Related Party | Opening Balance (CNY) | Loans this Period (CNY) | Repayments this Period (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Sinochem Group Finance Co., Ltd. | 125,000,000.00 | 147,240,000.00 | 50,000,000.00 | 222,240,000.00 | Credit Facility with Sinochem Group Finance Co., Ltd. | Related Party | Facility Type | Total Amount (CNY) | Amount Utilized (CNY) | | :--- | :--- | :--- | :--- | | Sinochem Group Finance Co., Ltd. | Comprehensive Credit | 650,000,000.00 | 222,240,000.00 | [Significant Contracts and Their Performance](index=35&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company provided new guarantees totaling CNY 136 million to its subsidiaries, bringing the total outstanding guarantee balance to CNY 166 million, which represents 10.03% of the company's net assets Company Guarantee Summary | Indicator | Amount (CNY) | | :--- | :--- | | New Guarantees for Subsidiaries in Reporting Period | 136,242,206.16 | | Outstanding Guarantee Balance for Subsidiaries at Period-end (B) | 166,281,606.16 | | Total Guarantees (A+B) | 166,281,606.16 | | Total Guarantees as a Percentage of Net Assets (%) | 10.03% | | Guarantees for Entities with Asset-Liability Ratio >70% (D) | 165,856,606.16 | [Explanation of Other Significant Events](index=37&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company plans to issue shares to acquire 100% equity in both Yiyang Rubber & Plastics Machinery Group Co., Ltd. and Beijing Bluestar Energy Conservation Investment Management Co., Ltd., a transaction constituting a major asset restructuring aimed at enhancing its capabilities and profitability - The company intends to issue shares to acquire **100% equity in Yiyang Rubber & Plastics Machinery Group Co., Ltd. and Beijing Bluestar Energy Conservation Investment Management Co., Ltd.**[97](index=97&type=chunk) - This transaction constitutes a related-party transaction and a major asset restructuring but not a reverse merger[97](index=97&type=chunk) - Upon completion, the transaction is expected to strengthen the company's professional capabilities, market scale, and profitability in the rubber machinery and chemical equipment industries[97](index=97&type=chunk) [Changes in Share Capital and Shareholders](index=37&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section discloses that the company's share capital structure remained unchanged during the reporting period and provides a detailed list of shareholders, noting that Equipment Global is the controlling shareholder and SASAC is the ultimate controller [Changes in Share Capital](index=37&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) - During the reporting period, the company's total number of shares and share capital structure remained unchanged[100](index=100&type=chunk) [Shareholder Information](index=38&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the period-end, the company had 30,744 common shareholders, with China National Chemical Research Institute Co., Ltd. and China National Chemical Equipment Global Holdings (Hong Kong) Limited being the top two shareholders, holding 43.40% and 14.50% respectively Total Number of Shareholders | Indicator | Number | | :--- | :--- | | Total number of common shareholders at period-end (households) | 30,744 | Top Ten Shareholders | Shareholder Name | Shares Held at Period-end | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | China National Chemical Research Institute Co., Ltd. | 214,723,549 | 43.40 | State-owned legal entity | | China National Chemical Equipment Global Holdings (Hong Kong) Limited | 71,750,400 | 14.50 | State-owned legal entity | | Fujian Sanming Double-Wheel Chemical Machinery Co., Ltd. | 9,592,088 | 1.94 | State-owned legal entity | | Fujian Huarong Autocontrol Technology Co., Ltd. | 9,038,847 | 1.83 | State-owned legal entity | | China National Chemical Equipment Co., Ltd. | 4,135,206 | 0.84 | State-owned legal entity | - Equipment Global holds a total of 312,240,090 voting shares, representing **63.12% of the company's total share capital**, through direct ownership and entrusted voting rights[105](index=105&type=chunk) - The company's controlling shareholder remains Equipment Global, and the ultimate controller is the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)[105](index=105&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=39&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[106](index=106&type=chunk) [Section 7 Bond-related Matters](index=41&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no corporate bonds, non-financial corporate debt financing instruments, or convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial corporate debt financing instruments[109](index=109&type=chunk) - During the reporting period, the company had no convertible corporate bonds[109](index=109&type=chunk) [Financial Report](index=42&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section contains the 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 providing a comprehensive overview of the company's financial position and performance [Auditor's Report](index=42&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) - This semi-annual report is unaudited[111](index=111&type=chunk) [Financial Statements](index=42&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the consolidated and parent company financial statements for the first half of 2025, offering a comprehensive view of the company's financial position, operating results, and cash flow changes [Consolidated Balance Sheet](index=42&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) - As of June 30, 2025, the company's **total consolidated assets were CNY 3,755,686,549.05**, total liabilities were CNY 2,098,207,190.25, and total equity was CNY 1,657,479,358.80[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [Parent Company Balance Sheet](index=44&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) - As of June 30, 2025, the parent company's **total assets were CNY 1,380,240,130.42**, total liabilities were CNY 451,562,823.13, and total equity was CNY 928,677,307.29[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) [Consolidated Income Statement](index=46&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) - For the period of January-June 2025, the company's **consolidated total operating revenue was CNY 658,224,327.10**, and the net profit was CNY -18,375,916.45[119](index=119&type=chunk)[120](index=120&type=chunk) [Parent Company Income Statement](index=48&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) - For the period of January-June 2025, the parent company's **operating revenue was CNY 183,990.96**, and the net profit was CNY -35,014,997.21[123](index=123&type=chunk)[124](index=124&type=chunk) [Consolidated Cash Flow Statement](index=50&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) - For January-June 2025, the company's **net cash flow from operating activities was CNY -41,856,502.80**, from investing activities was CNY -6,307,127.16, and from financing activities was CNY 31,293,578.37[126](index=126&type=chunk)[127](index=127&type=chunk) [Parent Company Cash Flow Statement](index=52&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) - For January-June 2025, the parent company's **net cash flow from operating activities was CNY -26,383,406.00**, from investing activities was CNY -3,655,440.88, and from financing activities was CNY 53,306,535.22[129](index=129&type=chunk)[130](index=130&type=chunk) [Consolidated Statement of Changes in Equity](index=54&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) - As of June 30, 2025, the company's **total consolidated equity was CNY 1,657,479,358.80**, a decrease of CNY 17,297,456.57 from the beginning of the period[132](index=132&type=chunk)[136](index=136&type=chunk) [Parent Company Statement of Changes in Equity](index=58&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) - As of June 30, 2025, the parent company's **total equity was CNY 928,677,307.29**, a decrease of CNY 35,118,112.80 from the beginning of the period[137](index=137&type=chunk)[139](index=139&type=chunk) [Company Profile](index=61&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section outlines the company's history, share capital changes, and ownership structure, noting its establishment in 1999, listing in 2002, and the 2018 acquisition that made Equipment Global the controlling shareholder with SASAC as the ultimate controller - The company was established on June 30, 1999, and listed on the Shanghai Stock Exchange on August 9, 2002[140](index=140&type=chunk) - In 2018, through an issuance of shares for assets, Equipment Global became the controlling shareholder with a **52.20% stake**[141](index=141&type=chunk) - As of June 30, 2025, the company's total share capital was **494,712,359.00 shares**[141](index=141&type=chunk) - Equipment Global is the company's parent, and the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is the ultimate controller[142](index=142&type=chunk) - The company's main business scope includes R&D and sales of machinery, manufacturing and sales of specialized equipment for plastics and rubber processing[142](index=142&type=chunk) [Basis of Preparation for Financial Statements](index=61&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) These financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and the information disclosure regulations of the CSRC, on a going concern basis - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" and the CSRC's "Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports"[143](index=143&type=chunk) - These financial statements are prepared on a going concern basis[144](index=144&type=chunk) [Significant Accounting Policies and Estimates](index=61&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the significant accounting policies and estimates used in preparing the financial statements, covering areas such as financial instruments, inventory, long-term equity investments, fixed assets, intangible assets, revenue recognition, and government grants to ensure accuracy and comparability - The company adheres to enterprise accounting standards to provide a true and complete reflection of its financial position and operating results[146](index=146&type=chunk) - The company's fiscal year is from January 1 to December 31, and its functional currency is the Renminbi (RMB)[147](index=147&type=chunk)[149](index=149&type=chunk) - The company classifies financial assets as those measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[159](index=159&type=chunk) - The company's revenue recognition principle is to recognize revenue when performance obligations are satisfied and the customer obtains control of the related goods or services[207](index=207&type=chunk) [Taxes](index=81&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main taxes and tax rates, as well as preferential tax policies, noting that several subsidiaries benefit from a reduced 15% corporate income tax rate for high-tech enterprises and other VAT incentives Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services revenue | 13%, 9%, 6%, 5%, 3%, 1% | | Corporate Income Tax | Taxable income | 25%, 15% | - Nanjing Tianhua, Nanjing Jianli, Sinochem Rubber Machinery, and Tianhua Institute Co., Ltd. have all obtained high-tech enterprise certificates and are eligible for a **preferential corporate income tax rate of 15%** for the 2025 fiscal year[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) - Sinochem Rubber Machinery is eligible for a **VAT refund policy** for its self-developed software products in 2025, where the actual tax burden exceeding 3% is refunded[227](index=227&type=chunk) - Tianhua Institute Co., Ltd., Nanjing Tianhua, and Sinochem Rubber Machinery benefit from a VAT super-deduction policy for advanced manufacturing enterprises, allowing an **additional 5% deduction** against their VAT payable[228](index=228&type=chunk) [Notes to Consolidated Financial Statement Items](index=82&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on each item in the consolidated financial statements, including cash, receivables, inventory, investments, fixed assets, intangible assets, borrowings, payables, equity, revenue, costs, expenses, and cash flow information - The period-end balance of cash and cash equivalents was **CNY 268 million**, of which CNY 59.54 million was restricted, primarily for performance guarantees[230](index=230&type=chunk)[231](index=231&type=chunk) - The period-end gross balance of accounts receivable was **CNY 1.001 billion**, with a provision for bad debts of CNY 205 million, resulting in a net carrying amount of CNY 796 million[243](index=243&type=chunk) - The period-end carrying amount of inventory was **CNY 576 million**, with a provision for inventory write-downs and contract cost impairments of CNY 45.97 million[276](index=276&type=chunk) - The period-end balance of short-term borrowings was **CNY 262 million**, including a CNY 119 million guaranteed loan for the subsidiary Sinochem (Fujian) Rubber & Plastics Machinery Co., Ltd.[319](index=319&type=chunk) - Both operating revenue and cost of sales decreased significantly due to the 2024 major asset restructuring, with revenue for the period at **CNY 658 million** and cost of sales at **CNY 545 million**[365](index=365&type=chunk) [Research and Development Expenses](index=129&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Total R&D expenditure for the reporting period was CNY 40,909,818.86, all of which was expensed, marking a significant decrease from the prior year period R&D Expenditure | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Expensed R&D | 40,909,818.86 | 173,483,832.32 | | Capitalized R&D | | 33,604,553.70 | | Total | 40,909,818.86 | 207,088,386.02 | [Changes in the Scope of Consolidation](index=130&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, there were no business combinations under common or non-common control, reverse acquisitions, or disposals of subsidiaries leading to a loss of control - During the reporting period, the company had no business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to a loss of control[398](index=398&type=chunk)[399](index=399&type=chunk) [Interests in Other Entities](index=131&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's interests in its subsidiaries and associate, including several wholly-owned subsidiaries and a 9.24% stake in the associate China National Chemical Equipment (Luxembourg) S.à r.l., which is accounted for using the equity method [(1).Composition of the Corporate Group](index=131&type=section&id=(1).%E4%BC%81%E4%B8%9A%E9%9B%86%E5%9B%A2%E7%9A%84%E6%9E%84%E6%88%90) Major Subsidiaries | Subsidiary Name | Principal Place of Business | Registered Capital | Business Nature | Ownership (%) | | :--- | :--- | :--- | :--- | :--- | | Tianhua Chemical Machinery & Automation Research and Design Institute Co., Ltd. | Lanzhou | CNY 183.70 million | Manufacturing | 100.00 | | Sinochem (Fujian) Rubber & Plastics Machinery Co., Ltd. | Fujian | CNY 250.00 million | Manufacturing | 100.00 | | Sinochem Tianhua (Lanzhou) Special Equipment Inspection Co., Ltd. | Lanzhou | CNY 26.30 million | R&D | 100.00 | [(3).Key Financial Information of Significant Associates](index=134&type=section&id=(3).%E9%87%8D%E8%A6%81%E8%81%94%E8%90%A5%E4%BC%81%E4%B8%9A%E7%9A%84%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E4%BF%A1%E6%81%AF) Financial Information of Significant Associate (China National Chemical Equipment (Luxembourg) S.à r.l.) | Item | Current Period/Period-end (CNY) | Prior Period/Period-start (CNY) | | :--- | :--- | :--- | | Total Assets | 13,058,018,389.82 | 12,104,653,123.45 | | Total Liabilities | 11,744,571,408.53 | 11,352,021,610.59 | | Equity Attributable to Parent Company | 1,313,446,981.29 | 752,631,512.86 | | Operating Revenue | 3,597,472,486.76 | 7,804,036,221.62 | | Net Profit | -125,548,469.24 | -2,056,998,073.68 | | Total Comprehensive Income | -126,664,438.74 | -2,219,704,250.80 | [Government Grants](index=136&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section discloses government grant-related liabilities and amounts recognized in profit or loss, with a period-end deferred income balance of CNY 10.36 million and CNY 4.41 million recognized in profit or loss during the period Changes in Government Grant Liabilities | Financial Statement Item | Opening Balance (CNY) | New Grants (CNY) | Recognized in Other Income (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Novel Steam Tube Rotary Dryer Technology for Coal Conditioning | 1,143,997.73 | | 79,675.30 | 1,064,322.43 | | Pressurized Roasting Equipment Technology for Refining Catalysts | 878,756.94 | 200,000.00 | 4,246.00 | 1,074,510.94 | | Science and Technology Fund | | 14,385,700.00 | 2,067,586.84 | 2,037,313.82 | | Others | 1,076,519.57 | 1,360,000.00 | 263,445.15 | 2,173,074.42 | | Total | 7,379,495.37 | 15,945,700.00 | 12,969,953.99 | 10,355,241.38 | Government Grants Recognized in Current Profit or Loss | Type | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Income-related | 4,413,354.38 | 10,458,763.05 | | Total | 4,413,354.38 | 10,458,763.05 | [Risks Related to Financial Instruments](index=137&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces market risk (interest rate, currency), credit risk, and liquidity risk, which it manages through credit policies, customer monitoring, maintaining sufficient cash reserves, and matching foreign currency exposures - The company's operating activities are exposed to **market risk (currency risk, interest rate risk, and other price risks), credit risk, and liquidity risk**[411](index=411&type=chunk)[416](index=416&type=chunk) - The company controls credit risk by assessing customer creditworthiness, regularly monitoring credit records, and shortening credit terms[412](index=412&type=chunk) - The company manages liquidity risk by consolidating cash flow forecasts, continuously monitoring funding needs, and maintaining sufficient cash reserves and backup facilities[414](index=414&type=chunk) - The company's interest rate risk primarily arises from bank borrowings, which it manages through fixed-rate loans and potential use of interest rate swaps[417](index=417&type=chunk) - The company mitigates currency risk by matching foreign currency revenues and expenses and may use forward foreign exchange contracts or currency swaps[417](index=417&type=chunk) [Disclosure of Fair Value](index=139&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) This section discloses the period-end fair values of assets and liabilities measured at fair value, primarily notes receivable financing, determined using methods such as market quotes, valuation techniques, and nominal amounts Total Assets Continuously Measured at Fair Value | Item | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | | Notes Receivable Financing | 18,671,685.82 | 18,671,685.82 | | Total assets continuously measured at fair value | 18,671,685.82 | 18,671,685.82 | - The market price for continuous Level 1 fair value measurement items is determined by public quotes in active markets[421](index=421&type=chunk) - Continuous Level 2 fair value measurement items (e.g., forward foreign exchange contracts) are valued using a discounted cash flow method based on the difference between the contract price and the market forward price[422](index=422&type=chunk) - Continuous Level 3 fair value measurement items (notes receivable financing) are valued at their nominal amount due to the short remaining maturity of the notes[423](index=423&type=chunk) [Related Parties and Related-Party Transactions](index=141&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section details the company's parent, subsidiaries, associates, and other related parties, and lists transactions involving sales, services, and financing, highlighting significant fund flows with Sinochem Group Finance Co., Ltd [1. Parent Company Information](index=141&type=section&id=1%E3%80%81%E6%9C%AC%E4%BC%81%E4%B8%9A%E7%9A%84%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%83%85%E5%86%B5) Parent Company Information | Parent Company Name | Place of Registration | Business Nature | Registered Capital (CNY 10,000) | Ownership (%) | Voting Rights (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | China National Chemical Equipment Global Holdings (Hong Kong) Limited | Hong Kong | Investment Holding | 369,621.87 | 14.50 | 63.12 | - The ultimate controlling party of the enterprise is the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)[425](index=425&type=chunk) [5. Related-Party Transactions](index=144&type=section&id=5%E3%80%81%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93%E6%83%85%E5%86%B5) The company engages in various related-party transactions, including procurement, sales, and financing, with significant purchases from related parties and notable interest income and expenses with Sinochem Group Finance Co., Ltd - The company procures goods and services from related parties such as Sinochem Information Technology Co., Ltd. and Yiyang Rubber & Plastics Machinery Group Co., Ltd.[429](index=429&type=chunk) - The company sells goods and provides services to related parties including Jiangsu Ruiheng New Materials Technology Co., Ltd., Sinochem Quanzhou Petrochemical Co., Ltd., and KraussMaffei Machinery (China) Co., Ltd.[430](index=430&type=chunk)[431](index=431&type=chunk) Related-Party Borrowings (Inward) | Related Party | Borrowing Amount (CNY) | Start Date | End Date | | :--- | :--- | :--- | :--- | | Sinochem Group Finance Co., Ltd. | 74,700,000.00 | 2024/7/24 | 2026/7/24 | | Sinochem Group Finance Co., Ltd. | 72,540,000.00 | 2025/1/17 | 2026/1/17 | | China National Chemical Equipment Co., Ltd. | 26,000,000.00 | 2021/9/29 | Actual Repayment Date | Other Related-Party Transactions (Interest) | Related Party | Transaction | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | :--- | | Sinochem Group Finance Co., Ltd. | Interest Income | 1,615,996.69 | 1,020,917.41 | | Sinochem Group Finance Co., Ltd. | Interest Expense | 2,645,680.54 | 360,000.01 | | China National Chemical Equipment Co., Ltd. | Interest Expense | 1,170,899.06 | 2,152,368.11 | | China National Chemical Equipment (Hong Kong) Co., Ltd. | Interest Expense | | 18,379,317.28 | | Sinochem Hong Kong (Group) Co., Ltd. | Interest Expense | | 69,694,764.91 | [6. Outstanding Balances with Related Parties](index=149&type=section&id=6%E3%80%81%E5%BA%94%E6%94%B6%E3%80%81%E5%BA%94%E4%BB%98%E5%85%B3%E8%81%94%E6%96%B9%E7%AD%89%E6%9C%AA%E7%BB%93%E7%AE%97%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) As of the period-end, the company had multiple outstanding receivable and payable balances with related parties, including significant cash deposits with Sinochem Group Finance Co., Ltd. and various trade payables to entities like Sichuan Bluestar Machinery Co., Ltd - At period-end, **cash held with related party Sinochem Group Finance Co., Ltd. amounted to CNY 183 million**[439](index=439&type=chunk) - At period-end, accounts receivable from related parties included CNY 15.83 million from the Chemical Industry Equipment Quality Supervision and Inspection Center and CNY 2.41 million from Jiangxi Bluestar Xinghuo Silicone Co., Ltd.[439](index=439&type=chunk)[440](index=440&type=chunk) - At period-end, accounts payable to related parties included **CNY 21.21 million to Sichuan Bluestar Machinery Co., Ltd.** and CNY 3.38 million to KraussMaffei Technologies GmbH[444](index=444&type=chunk) - At period-end, other payables to related parties included **CNY 74.54 million to China National Chemical Equipment Co., Ltd.** and CNY 32.44 million to KraussMaffei Technologies GmbH[444](index=444&type=chunk) - At period-end, contract liabilities to related parties included **CNY 27.26 million to Cangzhou Dahua Co., Ltd.** and CNY 3.44 million to Sinochem Bluestar Adisseo Animal Nutrition Technology (Quanzhou) Co., Ltd.[445](index=445&type=chunk) [Commitments and Contingencies](index=156&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) This section discloses significant contingencies as of the balance sheet date, primarily related to major lawsuits involving subsidiaries Tianhua Institute and Sinochem Rubber Machinery, for which provisions have been made - Tianhua Institute is facing a subrogation claim of **CNY 38.62 million** from an insurance company over a product quality dispute; a full provision has been made, although the first-instance verdict was for a payment of CNY 31.87 million[448](index=448&type=chunk) - Sinochem Rubber Machinery is involved in a mutual lawsuit over a payment dispute and has made a **bad debt provision of CNY 8.30 million** for the related accounts receivable[449](index=449&type=chunk) [Events After the Balance Sheet Date](index=157&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) There were no significant non-adjusting events, profit distributions, or sales returns between the end of the reporting period and the date of approval of the financial report - Between the end of the reporting period and the date of approval of the financial report, the company had no significant non-adjusting events, profit distributions, or sales returns[451](index=451&type=chunk) [Notes to Key Items in the Parent Company's Financial Statements](index=158&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments, which had a carrying value of CNY 724 million at period-end [1. Accounts Receivable](index=158&type=section&id=1%E3%80%81%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) - The parent company's gross accounts receivable at period-end was **CNY 6,043,373.62**, with bad debt provisions made on an individual basis for the full amount[453](index=453&type=chunk)[455](index=455&type=chunk) [2. Other Receivables](index=159&type=section&id=2%E3%80%81%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE) - The parent company's gross other receivables at period-end was **CNY 20,307,524.47**, primarily consisting of intercompany balances[461](index=461&type=chunk)[463](index=463&type=chunk) [3. Long-term Equity Investments](index=164&type=section&id=3%E3%80%81%E9%95%BF%E6%9C%9F%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84) Parent Company Long-term Equity Investments | Item | Period-end Carrying Value (CNY) | Period-start Carrying Value (CNY) | | :--- | :--- | :--- | | Investments in Subsidiaries | 661,446,576.33 | 661,446,576.33 | | Investments in Associates and Joint Ventures | 62,614,200.87 | 74,317,995.02 | | Total | 724,060,777.20 | 735,764,571.35 | - Investments in subsidiaries primarily include **CNY 619 million in Tianhua Chemical Machinery & Automation Research and Design Institute Co., Ltd.** and CNY 42.55 million in Sinochem (Fujian) Rubber & Plastics Machinery Co., Ltd.[469](index=469&type=chunk) - The investment in associates is primarily in China National Chemical Equipment (Luxembourg) S.à r.l., with a period-end carrying value of **CNY 62.61 million**[472](index=472&type=chunk) [4. Operating Revenue and Costs](index=166&type=section&id=4%E3%80%81%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E5%92%8C%E8%90%A5%E4%B8%9A%E6%88%90%E6%9C%AC) Parent Company Operating Revenue and Costs | Item | Current Period - Revenue (CNY) | Prior Period - Revenue (CNY) | | :--- | :--- | :--- | | Other Business | 183,990.96 | 1,301,319.71 | | Total | 183,990.96 | 1,301,319.71 | [5. Investment Income](index=166&type=section&id=5%E3%80%81%E6%8A%95%E8%B5%84%E6%94%B6%E7%9B%8A) Parent Company Investment Income | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Income from long-term equity investments under the cost method | | 51,134,310.66 | | Income from long-term equity investments under the equity method | -11,600,678.56 | | | Total | -11,600,678.56 | 51,134,310.66 | [Supplementary Information](index=167&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides a detailed breakdown of non-recurring profit and loss and information on return on equity and earnings per share, with non-recurring items totaling CNY 8.44 million and a weighted average ROE of -1.10% Detailed Schedule of Non-recurring Profit and Loss | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 232,951.58 | | Government Grants Recognized in Current Profit or Loss | 7,102,509.03 | | Other Non-operating Income and Expenses | 2,592,794.36 | | Less: Income Tax Impact | 1,489,392.66 | | Total | 8,438,862.31 | Return on Equity and Earnings Per Share | Profit for the Period | Weighted Average Return on Equity (%) | Basic Earnings Per Share | | :--- | :--- | :--- | | Net profit attributable to common shareholders | -1.10 | -0.04 | | Net profit attributable to common shareholders after deducting non-recurring items | -1.61 | -0.05 |