Group 1 - The company reported a revenue of 1.236 billion yuan for the first half of the year, representing a year-on-year decrease of 14.87% [1] - The net profit attributable to shareholders was 83.10 million yuan, an increase of 33.85% compared to 62.09 million yuan in the same period last year [1] - The basic earnings per share were 0.2212 yuan [1]

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key terms used in the report, including the reporting period, company name, main subsidiaries, and product classifications, ensuring clear understanding of the report content - This report and semi-annual report refer to the **2025 semi-annual report**[10](index=10&type=chunk) - Company, this company, listed company, Aipu Co., and issuer refer to **Aipu Flavor & Fragrance Group Co., Ltd**[10](index=10&type=chunk) - This reporting period, reporting period, within the reporting period, this period, and within this period refer to the **first half of 2025**, specifically from January 1, 2025, to June 30, 2025[10](index=10&type=chunk) - Edible flavors are a product category of the company, including **food flavors and tobacco flavors**[11](index=11&type=chunk) - Daily-use fragrances are mixtures of daily-use spices and excipients, representing certain fragrance formulations[11](index=11&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information, contact details, stock overview, and key accounting data and financial indicators for the reporting period, along with detailed disclosure of non-recurring gains and losses and their amounts [I. Company Information](index=6&type=section&id=I.%20Company%20Information) This section discloses the company's Chinese name, abbreviation, foreign name and abbreviation, and legal representative information - Company Chinese Name: **Aipu Flavor & Fragrance Group Co., Ltd**[13](index=13&type=chunk) - Company Chinese Abbreviation: **Aipu Co**[13](index=13&type=chunk) - Company Legal Representative: **Wei Zhonghao**[13](index=13&type=chunk) [II. Contact Person and Contact Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section provides the names, contact addresses, telephone numbers, fax numbers, and email addresses of the Board Secretary and Securities Affairs Representative - Board Secretary: **Qin Hanqing**[14](index=14&type=chunk) - Securities Affairs Representative: **Ye Bing**[14](index=14&type=chunk) - Contact Address: **No. 733 Gaoping Road, Jing'an District, Shanghai**[14](index=14&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=6&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section introduces basic information such as the company's registered address, office address, website, and email address, noting no historical changes to the registered address - Company Registered Address: **No. 33 Caoxin Road, Jiading District, Shanghai**[15](index=15&type=chunk) - Company Office Address: **No. 733 Gaoping Road, Jing'an District, Shanghai**[15](index=15&type=chunk) - Company Website: **http://www.cnaff.com**[15](index=15&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=6&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) This section lists the company's designated information disclosure newspapers, the website address for the semi-annual report, and the report custody location - Company's selected information disclosure newspapers: **"Shanghai Securities News" and "Securities Times"**[16](index=16&type=chunk) - Website address for publishing the semi-annual report: **http://www.sse.com.cn**[16](index=16&type=chunk) - Company's semi-annual report custody location: **Securities Affairs Department, No. 733 Gaoping Road, Jing'an District, Shanghai**[16](index=16&type=chunk) [V. Company Stock Overview](index=7&type=section&id=V.%20Company%20Stock%20Overview) This section provides information on the company's A-share listing exchange, stock abbreviation, and code - Stock Type: **A-share**[17](index=17&type=chunk) - Stock Listing Exchange: **Shanghai Stock Exchange**[17](index=17&type=chunk) - Stock Abbreviation: **Aipu Co.**, Stock Code: **603020**[17](index=17&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=7&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by **14.87%** year-on-year, but net profit attributable to shareholders of the listed company increased by **33.85%**, mainly due to the disposal of a subsidiary, while net profit after deducting non-recurring gains and losses decreased by **29.38%** year-on-year Key Accounting Data (Jan-Jun 2025 vs. Prior Period) | Indicator | Current Reporting Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,236,222,737.48 | 1,452,107,820.06 | -14.87 | | Total Profit (CNY) | 120,815,661.74 | 109,354,630.04 | 10.48 | | Net Profit Attributable to Parent Company Shareholders (CNY) | 83,104,909.95 | 62,086,190.10 | 33.85 | | Net Profit Attributable to Parent Company Shareholders After Deducting Non-Recurring Gains and Losses (CNY) | 38,767,047.73 | 54,894,114.22 | -29.38 | | Net Cash Flow from Operating Activities (CNY) | -6,585,832.07 | 204,707,338.99 | -103.22 | | Net Assets Attributable to Parent Company Shareholders (End of Period, CNY) | 3,278,226,171.58 | 3,261,815,914.99 | 0.50 | | Total Assets (End of Period, CNY) | 3,719,654,249.10 | 3,646,890,333.32 | 2.00 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Period) | Indicator | Current Reporting Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.2212 | 0.1653 | 33.82 | | Diluted Earnings Per Share (CNY/share) | 0.2212 | 0.1653 | 33.82 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (CNY/share) | 0.1032 | 0.1461 | -29.36 | | Weighted Average Return on Net Assets (%) | 2.52 | 1.96 | Increased by 0.56 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 1.17 | 1.73 | Decreased by 0.56 percentage points | [IX. Non-Recurring Gains and Losses Items and Amounts](index=8&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the components and amounts of non-recurring gains and losses during the reporting period, totaling **CNY 44.34 million** Non-Recurring Gains and Losses Items and Amounts (Jan-Jun 2025) | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/losses on disposal of non-current assets | 60,729.01 | | Government grants recognized in current profit/loss | 2,207,403.02 | | Gains/losses from changes in fair value and disposal of financial assets and liabilities | 24,020,840.01 | | Other non-operating income and expenses apart from the above | -169,837.63 | | Other profit/loss items meeting the definition of non-recurring gains/losses | 20,008,982.30 | | Less: Income tax impact | 1,318,724.54 | | Impact on minority interests (after tax) | 471,529.95 | | **Total** | **44,337,862.22** | - Other profit/loss items meeting the definition of non-recurring gains/losses amounted to **CNY 20.01 million**, primarily due to non-recurring gains/losses related to the reduction in the scope of consolidation[22](index=22&type=chunk) [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry, main business, operating model, performance drivers, operating conditions, core competencies, and risks, noting steady growth in flavor business, decline in fragrance business, and reduced food ingredients revenue due to subsidiary disposal, with overall revenue down but net profit up due to non-recurring gains [I. Explanation of the Company's Industry and Main Business During the Reporting Period](index=9&type=section&id=I.%20Explanation%20of%20the%20Company's%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company's main products are flavors, fragrances, and food ingredients, widely used in various consumer sectors, operating with a "production-to-order" model, direct sales, and driven by consumer demand, R&D, and digital transformation [(I) Company's Industry](index=9&type=section&id=(I)%20Company's%20Industry) The company's main products are flavors, fragrances, and food ingredients, widely used in dairy, beverages, snacks, baking, daily chemicals, and tobacco, belonging to the food manufacturing industry - The company's main products are **flavors, fragrances, and food ingredients**[25](index=25&type=chunk) - Downstream application areas primarily include **dairy products, beverages, snack foods, baked goods, daily chemicals, and tobacco**[25](index=25&type=chunk) - According to the classification of the China Association for Public Companies, the company belongs to C (Manufacturing), sub-category CA (Food, Beverages, Tobacco), major category 14 (Food Manufacturing)[25](index=25&type=chunk) [(II) Company's Main Business Operations](index=9&type=section&id=(II)%20Company's%20Main%20Business%20Operations) The company's main business has not changed significantly, covering flavors (edible, daily-use), fragrances (synthetic, natural), and food ingredients (industrial chocolate, imported dairy products), widely applied in consumer goods - During the reporting period, the company's main business did not undergo significant changes, primarily involving the R&D, manufacturing, and sales of **flavors, fragrances, and food ingredients**, as well as food ingredient trade[28](index=28&type=chunk) - Main products include **flavors (edible flavors and daily-use fragrances), fragrances (synthetic fragrances and natural fragrances), food ingredients (primarily industrial chocolate)**, while also engaging in import trade of internationally renowned brands of dairy products and other food ingredients[28](index=28&type=chunk) - The company's chocolate products are **industrial chocolate**, supplied to downstream food manufacturers for producing frozen drinks, baked goods, chocolate candies, and dairy products[29](index=29&type=chunk) [(III) Company's Operating Model](index=11&type=section&id=(III)%20Company's%20Operating%20Model) The company adopts a "production-to-order" and partial stock-up production model, with procurement divided into production business (planned procurement) and trade business (price locking), and sales primarily direct, supplemented by cooperation with wholesalers - Procurement Model: Production business procures in batches based on demand scale and inventory; trade business formulates procurement plans and locks in procurement prices **3-6 months in advance**[31](index=31&type=chunk) - Production Model: Combines **"production-to-order" with partial stock-up**, where the sales department formulates plans, the planning department prepares production plans, the quality control department inspects, and qualified products are put into storage[32](index=32&type=chunk) - Sales Model: Products are sold through a **direct sales model**, with sales subsidiaries established to serve key clients; cooperates with local trade wholesalers to expand market share[33](index=33&type=chunk) [(IV) Key Performance Drivers](index=11&type=section&id=(IV)%20Key%20Performance%20Drivers) The company's performance is primarily driven by six factors: upgrading consumer demand structure, synergistic development of diversified businesses, R&D innovation, digital and intelligent production, customer development, and talent cultivation - Upgrading Consumer Demand Structure: Policy promotion, rising resident incomes, changing consumption concepts, and improved logistics infrastructure drive the structural upgrade of domestic consumer demand[36](index=36&type=chunk) - Synergistic Development of Diversified Businesses: Adhering to the philosophy of "flavors and fragrances as the lead, integrated development of food ingredients," building a three-segment business architecture to enhance comprehensive competitiveness[37](index=37&type=chunk) - R&D as Core Driver: Continuously advancing R&D system construction and technological breakthroughs, focusing on extraction, synthesis, blending, application, and process improvement, leading innovation and optimization[38](index=38&type=chunk) - Introduction of Digital and Intelligent New Productive Forces: Jiangxi production base fully introduces **automated production lines**, enhancing quality stability, production efficiency, flexible production capacity, and reducing costs[39](index=39&type=chunk) - Customer Development Driving Business Growth: Adhering to a "customer-centric" approach, deeply understanding customer needs, providing one-stop integrated solutions, and deepening cooperative relationships[40](index=40&type=chunk) - Building Talent Foundation through Internal Training and External Recruitment: Continuously adopting a combination of internal training and external recruitment, optimizing the training system, improving the "teach, help, lead" mechanism, and solidifying the talent foundation[41](index=41&type=chunk) [II. Discussion and Analysis of Operating Conditions](index=13&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Conditions) In the first half of 2025, flavor business revenue grew by **8.96%** to **CNY 328.18 million** with a **39.16%** gross margin, while fragrance revenue declined due to competition, and food ingredients revenue decreased by **22.69%** due to subsidiary disposal, leading to an overall **14.87%** revenue decrease but **33.85%** increase in net profit attributable to parent company - Flavor business revenue reached **CNY 328.18 million**, an increase of **8.96%** compared to the prior period, with a sales gross profit margin of **39.16%**, a slight increase[42](index=42&type=chunk) - Fragrance business sales revenue was **CNY 81.52 million**, with a gross profit margin of **20.11%**, both decreasing compared to the prior period, mainly due to low-price competition from competitors[43](index=43&type=chunk) - Food ingredients business achieved sales revenue of **CNY 813.90 million**, a decrease of **22.69%** compared to the prior period, primarily due to the disposal of former subsidiary Tianshun (Hangzhou) Food Co., Ltd.; if the impact of subsidiary disposal is excluded, food ingredients operating revenue still increased compared to the prior period[43](index=43&type=chunk) - The company achieved operating revenue of **CNY 1.24 billion**, a decrease of **14.87%** compared to the prior period; net profit attributable to shareholders of the listed company was **CNY 83 million**, an increase of **33.85%** compared to the prior period; net profit attributable to parent company after deducting non-recurring gains and losses was **CNY 39 million**, a decrease of **29.38%** compared to the prior period[44](index=44&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=14&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies include a full industry chain, automated production, flexible management, R&D innovation, customer service, strong brand resources, and robust financing channels - Full Industry Chain Layout Advantage: Provides integrated "flavor + food ingredients" services, quickly responding to customer needs and enhancing risk resistance[45](index=45&type=chunk) - Fully Automated Production Line Advantage: Fully introduces **automated production lines**, enhancing quality assurance, delivery capability, and cost control[46](index=46&type=chunk) - Flexible Production Management Advantage: Accumulated rich experience in flavor production management, obtained multiple certifications, ensuring product quality stability and strengthening rapid R&D, production, and delivery capabilities[48](index=48&type=chunk) - R&D Innovation Advantage: Possesses qualifications such as a postdoctoral research station and national high-tech enterprise, multiple patents, and **over 30,000 flavor formulations**, enhancing product development efficiency[49](index=49&type=chunk) - Customer Service Advantage: Extensive marketing network, professional sales and R&D teams provide timely and precise services, assisting customers in enhancing product recognition[50](index=50&type=chunk) - High-Quality Customer Advantage: Established strong cooperative relationships with leading brand customers in downstream dairy, beverage, snack food, baking, daily chemical, and tobacco sectors[51](index=51&type=chunk) - Brand Resource Advantage: After **thirty years** of development, the "Aipu" brand is well-known in the domestic flavor and fragrance industry, being one of the largest edible flavor manufacturers in China[52](index=52&type=chunk) - Financing Channel Advantage: Maintained stable operations since its listing in **2015**, with a low asset-liability ratio and strong solvency, possessing stronger financing capabilities[53](index=53&type=chunk) [IV. Key Operating Conditions During the Reporting Period](index=16&type=section&id=IV.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) Operating revenue decreased by **14.87%** due to subsidiary disposal, while financial expenses increased by **139.43%** and operating cash flow decreased by **103.22%**, but investment cash flow significantly increased by **221.86%**, with non-recurring gains and losses rising by **CNY 35.44 million** from subsidiary disposal and fair value revaluation [(I) Analysis of Main Business](index=16&type=section&id=(I)%20Analysis%20of%20Main%20Business) During the reporting period, the company's operating revenue decreased by **14.87%**, mainly due to the disposal of subsidiary Tianshun (Hangzhou) Food Co., Ltd. Excluding this impact, operating revenue increased, with steady growth in the flavor business and an increase in the dairy products business. Various expenses (selling, administrative, R&D) also decreased due to the subsidiary disposal, while financial expenses increased due to lower interest income and exchange rate fluctuations. Net cash flow from operating activities decreased, net cash flow from investing activities significantly increased, and net cash flow from financing activities rapidly decreased - Operating revenue decreased by **14.87%** year-on-year, primarily due to the disposal of former subsidiary Tianshun (Hangzhou) Food Co., Ltd.; excluding this impact, operating revenue increased[55](index=55&type=chunk) - Selling expenses decreased by **9.68%** year-on-year, administrative expenses decreased by **18.20%** year-on-year, and R&D expenses decreased by **13.86%** year-on-year, all primarily due to the disposal of former subsidiary Tianshun (Hangzhou) Food Co., Ltd[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - Financial expenses increased by **139.43%** year-on-year, mainly due to reduced interest income from a smaller scale of large-denomination certificate of deposit purchases, coupled with the impact of foreign exchange rate fluctuations[57](index=57&type=chunk) - Net cash flow from operating activities decreased by **103.22%** year-on-year, primarily due to the combined impact of subsidiary disposal and expanded inventory for dairy products business[57](index=57&type=chunk) - Net cash flow from investing activities significantly increased by **221.86%** year-on-year, mainly due to expanded cash management scale and redemption of wealth management products at period-end[57](index=57&type=chunk) - Net cash flow from financing activities decreased by **93.12%** year-on-year, primarily because the 2024 annual cash dividend was distributed in July 2025, while the 2023 annual cash dividend was distributed in June 2024[57](index=57&type=chunk) - Income tax expense decreased by **21.91%** year-on-year, mainly due to the impact of utilizing deductible temporary differences or deductible losses for which deferred income tax assets were not recognized in prior periods[58](index=58&type=chunk) [(II) Explanation of Significant Profit Changes Caused by Non-Core Business](index=17&type=section&id=(II)%20Explanation%20of%20Significant%20Profit%20Changes%20Caused%20by%20Non-Core%20Business) During the reporting period, the company's non-recurring gains and losses significantly increased by **CNY 35.44 million**, mainly due to investment income from the disposal of equity in former subsidiary Shanghai Mengze Trading Co., Ltd., increased net profit from fair value revaluation of equity investments, and changes in wealth management product types - During the reporting period, non-recurring gains and losses attributable to the parent company were **CNY 44.34 million**, an increase of **CNY 35.44 million** compared to the prior period[59](index=59&type=chunk) - The increase primarily stemmed from the disposal of all equity in former controlled subsidiary Shanghai Mengze Trading Co., Ltd., resulting in an investment income of **CNY 20.01 million** for the current period[59](index=59&type=chunk) - Fair value revaluation of equity investments increased current net profit by **CNY 8.05 million**, compared to a decrease in net profit of **CNY 4.41 million** in the prior period[59](index=59&type=chunk) - Changes in wealth management product types led to more income being recognized as non-recurring gains and losses[59](index=59&type=chunk) [(III) Analysis of Assets and Liabilities](index=18&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's monetary funds, other current assets, construction in progress, other non-current assets, accounts payable, other payables, and special reserves all increased, while other receivables, non-current assets due within one year, contract liabilities, employee compensation payable, and taxes payable decreased Asset and Liability Status Changes (June 30, 2025 vs. Year-End 2024) | Project Name | Current Period End (CNY) | Percentage of Total Assets at Current Period End (%) | Prior Year End (CNY) | Percentage of Total Assets at Prior Year End (%) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 306,279,432.11 | 8.23 | 211,597,734.56 | 5.80 | 44.75 | Some wealth management products matured and were not repurchased, leading to higher bank deposits and an increase in monetary funds compared to the prior year-end | | Other Receivables | 3,968,703.47 | 0.11 | 6,326,618.10 | 0.17 | -37.27 | The company recovered construction project performance bonds during the reporting period, leading to a decrease in other receivables at the end of this reporting period | | Non-Current Assets Due Within One Year | 11,006,492.12 | 0.30 | 309,004,361.91 | 8.47 | -96.44 | The company's non-current assets due within one year were other debt investments—negotiable large-denomination certificates of deposit; with some large-denomination certificates of deposit maturing, the scale of large-denomination certificates of deposit held by the company at period-end decreased compared to the prior year-end | | Other Current Assets | 55,016,556.54 | 1.48 | 36,251,022.40 | 0.99 | 51.77 | Primarily due to an increase in bank time deposits with maturities shorter than one year at the end of the reporting period | | Construction in Progress | 6,000,892.53 | 0.16 | 4,501,493.07 | 0.12 | 33.31 | At the end of this reporting period, the company had no significant construction in progress | | Other Non-Current Assets | 6,209,261.12 | 0.17 | 1,771,320.32 | 0.05 | 250.54 | Primarily due to an increase in the company's prepaid engineering and equipment costs | | Accounts Payable | 137,403,038.21 | 3.69 | 100,913,256.77 | 2.77 | 36.16 | During the reporting period, to mitigate risks from fluctuations in important raw material market prices and promote new products, the company expanded its raw material and product inventory, leading to an increase in accounts payable at period-end | | Contract Liabilities | 7,229,947.19 | 0.19 | 16,259,042.12 | 0.45 | -55.53 | Primarily due to subsidiaries fulfilling contractual obligations and recognizing revenue | | Employee Compensation Payable | 277,373.70 | 0.01 | 19,372,326.46 | 0.53 | -98.57 | Primarily due to the company's distribution of prior year-end bonuses | | Taxes Payable | 14,029,593.83 | 0.38 | 28,010,895.04 | 0.77 | -49.91 | In October 2024, the company disposed of former subsidiary Tianshun (Hangzhou) Food Co., Ltd., resulting in significant investment income and a larger amount of income tax payable at the end of 2024. The company fulfilled its tax obligations during this reporting period, leading to a decrease in taxes payable compared to the prior year-end | | Other Payables | 76,953,743.10 | 2.07 | 17,740,466.04 | 0.49 | 333.78 | Primarily due to the company's declaration of the 2024 annual cash dividend | | Special Reserves | 5,668,543.31 | 0.15 | 4,025,823.33 | 0.11 | 40.80 | Primarily due to surplus safety production fees of subsidiaries | - Overseas assets amounted to **CNY 387.54 million**, accounting for **10.42%** of total assets[63](index=63&type=chunk) - For details on major restricted assets at the end of the reporting period, please refer to Section VIII, Note VII: Notes to Consolidated Financial Statement Items; 31, "Assets with Restricted Ownership or Use Rights"[64](index=64&type=chunk) [(IV) Analysis of Investment Status](index=19&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the reporting period, the company had no significant external equity investment matters. Financial assets measured at fair value at the end of the period totaled **CNY 1.32 billion**, mainly comprising bank wealth management products and structured deposits. The company holds equity in Wuxi Jinghai and participated in Aice Holdings Limited's private placement. Forward foreign exchange contracts, as hedging instruments, were expected to be largely effective, increasing net profit by **CNY 0.22 million** - During the reporting period, the company had **no significant external investment matters**[65](index=65&type=chunk) Financial Assets Measured at Fair Value (June 30, 2025) | Asset Category | Period-end Balance (CNY) | Period-beginning Balance (CNY) | | :--- | :--- | :--- | | Financial assets held for trading | 1,317,016,283.30 | 1,190,426,730.43 | | Of which: Bank wealth management products and structured deposits | 1,301,680,283.30 | 1,181,042,730.43 | | Wuxi Jinghai (836547) | 15,336,000.00 | 9,384,000.00 | | Derivative financial assets (derivative financial liabilities if negative) | -84,793.25 | -121,600.12 | | Other debt investments | 64,014,779.79 | 361,244,019.44 | | Of which: Negotiable large-denomination certificates of deposit | 64,014,779.79 | 361,244,019.44 | | Other non-current financial assets | 316,851,184.00 | 246,960,000.00 | | Of which: Equity in Aice Holdings Limited | 316,851,184.00 | 246,960,000.00 | | **Total** | **1,697,797,453.84** | **1,798,509,149.75** | - The company holds **600,000 shares** of Wuxi Jinghai, with a shareholding ratio of **0.77%**, and the fair value at period-end is determined by the closing price on the balance sheet date[69](index=69&type=chunk) - Forward foreign exchange contracts, as hedging instruments, were expected to be largely effective, increasing net profit by **CNY 0.22 million**[70](index=70&type=chunk) [(V) Significant Asset and Equity Sales](index=23&type=section&id=(V)%20Significant%20Asset%20and%20Equity%20Sales) During the reporting period, the company had no significant asset and equity sales [(VI) Analysis of Major Holding and Participating Companies](index=23&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Disclosed financial information for major subsidiaries including Shanghai Aipu Food Technology, Shanghai Pujia Food Technology, Jiangxi Aipu Biotechnology, and Shanghai Shensun Food Co., Ltd. Among them, Shanghai Shensun Food Co., Ltd.'s "Food Ingredients R&D and Manufacturing Base" project has taken initial shape, but its capacity utilization rate is low, and benefits have not yet met expectations. During the reporting period, the company disposed of all equity in former subsidiary Shanghai Mengze Trading Co., Ltd., resulting in an investment income of **CNY 20.01 million** - Shanghai Shensun Food Co., Ltd.'s "Food Ingredients R&D and Manufacturing Base" fundraising project has taken initial shape, but due to factors such as raw material supply and price fluctuations, long product development cycles, long customer certification cycles, and weak consumer expectations, its **capacity utilization rate is low**, and project benefits have not yet met expectations[72](index=72&type=chunk) - During the reporting period, the company disposed of all equity in former subsidiary Shanghai Mengze Trading Co., Ltd., resulting in an investment income of **CNY 20.01 million** for the current period[73](index=73&type=chunk) Major Subsidiary Financial Information (Unit: CNY 10,000) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Aipu Food Technology (Group) Co., Ltd. (incl. subsidiaries) | Subsidiary | Food Ingredients | 20,000.00 | 34,166.39 | 27,227.48 | 45,555.04 | -181.42 | -184.99 | | Shanghai Pujia Food Technology Co., Ltd. (incl. subsidiaries) | Subsidiary | Flavors, Food Ingredients | 2,000.00 | 31,518.27 | 19,428.36 | 45,672.70 | 3,907.61 | 2,969.24 | | Jiangxi Aipu Biotechnology Co., Ltd. | Subsidiary | Flavors and Fragrances | 25,000.00 | 38,584.34 | 30,095.99 | 5,699.56 | -7.99 | -5.66 | | Shanghai Shensun Food Co., Ltd. | Subsidiary | Food Ingredients | 28,000.00 | 34,565.01 | 33,637.97 | 951.57 | -1,524.67 | -1,586.14 | [V. Other Disclosure Matters](index=24&type=section&id=V.%20Other%20Disclosure%20Matters) The company faces various risks including macroeconomic fluctuations, food safety, new business development, consumer preference changes, market competition, gross profit margin volatility, accounts receivable losses, inventory impairment, exchange rate fluctuations, fundraising project implementation, and environmental policies [(I) Potential Risks](index=24&type=section&id=(I)%20Potential%20Risks) The company faces various risks including macroeconomic fluctuations, food safety, new business development, consumer preference changes, market competition, gross profit margin volatility, accounts receivable losses, inventory impairment and losses, exchange rate fluctuations, fundraising project implementation, and environmental policies - Risk of Macroeconomic Fluctuations: Slowing global economic growth and insufficient domestic effective demand may affect the company's revenue and profit[75](index=75&type=chunk) - Food Safety Risk: Numerous production and operation links, with third-party services used for transportation and warehousing, may lead to food safety issues[76](index=76&type=chunk) - Risk of New Business Development: Uncertainties exist in technological advancement, market demand tracking, new product launch, and market capture[77](index=77&type=chunk) - Risk of Changes in Consumer Preferences: Failure to adjust in a timely manner according to market demand changes may result in products not being recognized by consumers[78](index=78&type=chunk) - Market Competition Risk: The industry has both large-scale enterprises and small production enterprises, leading to fierce market competition; failure to continuously innovate will put the company at a disadvantage[79](index=79&type=chunk)[80](index=80&type=chunk) - Risk of Gross Profit Margin Fluctuations: Factors such as raw material supply and demand, price fluctuations, changes in end-consumer preferences, changes in downstream customer demand, and changes in competitive strategies of peer companies may all adversely affect the company's sales gross profit margin[81](index=81&type=chunk) - Risk of Accounts Receivable Losses: The large scale of accounts receivable means that if customer operating conditions deteriorate, the company may face the risk of accounts receivable losses[82](index=82&type=chunk) - Risk of Inventory Impairment and Losses: Intensified market competition and changes in market demand may lead to significant product price declines or sluggish sales, increasing the scale of inventory impairment and losses[83](index=83&type=chunk) - Exchange Rate Fluctuation Risk: Food ingredient trade primarily involves foreign currency procurement and settlement, and exchange rate fluctuations may further increase the risk of exchange gains and losses[84](index=84&type=chunk) - Risk of Implementation of Fundraising Investment Projects: Project implementation may be affected by poor organizational management, failure to start or complete as planned, changes in consumer preferences, significant adverse changes in market environment, and other situations[85](index=85&type=chunk) - Environmental Policy Risk: The government's efforts to strengthen environmental protection are continuous, and stricter environmental standards may be introduced, impacting the company's production and operations[86](index=86&type=chunk) [Section IV Corporate Governance, Environment and Society](index=26&type=section&id=Section%20IV%20Corporate%20Governance,%20Environment%20and%20Society) This section covers changes in directors, supervisors, and senior management, profit distribution plans, equity incentive plans, and environmental information disclosure, noting an independent director's resignation, no semi-annual profit distribution, and three subsidiaries on the environmental disclosure list [I. Changes in Company Directors, Supervisors, and Senior Management](index=26&type=section&id=I.%20Changes%20in%20Company%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, independent director Ms. Tao Ningping resigned due to serving for six years; her resignation will take effect after a new independent director is elected, and she will continue to perform her duties until then - Independent director Ms. Tao Ningping applied to resign from her position as an independent director of the company's Fifth Board of Directors due to serving for **six years**[89](index=89&type=chunk) - After her resignation, Ms. Tao Ningping will no longer hold any positions in the company, but her resignation application will take effect after a new independent director is elected at the company's general meeting of shareholders, and she will continue to perform her duties until then[89](index=89&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=26&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's proposed semi-annual profit distribution or capital reserve conversion plan is "None" - Proposed semi-annual profit distribution plan or capital reserve to share capital conversion plan: **None**[90](index=90&type=chunk) [III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=26&type=section&id=III.%20Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company had no disclosed equity incentive matters with no subsequent progress or changes, nor any undisclosed or progressing incentive situations [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information](index=27&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information) The company has **3** subsidiaries included in the list of enterprises required to disclose environmental information, with corresponding inquiry indexes provided - Number of enterprises included in the list of enterprises required to disclose environmental information: **3**[92](index=92&type=chunk) - Including Shanghai Aipu Plant Technology Co., Ltd., Jiangxi Aipu Biotechnology Co., Ltd., and Henan Hualong Fragrance Co., Ltd[92](index=92&type=chunk) [V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=27&type=section&id=V.%20Specific%20Progress%20in%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements,%20Rural%20Revitalization,%20and%20Other%20Work) During the reporting period, the company had no specific progress in consolidating and expanding poverty alleviation achievements, rural revitalization, or other related work [Section V Significant Matters](index=28&type=section&id=Section%20V%20Significant%20Matters) This section details the company's fulfillment of significant commitments, major guarantees, progress in the use of raised funds, and other significant matters, including the closure of an equity repurchase lawsuit and the release of external guarantees [I. Fulfillment of Commitments](index=28&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's shareholders, directors, senior management, and controlling shareholder Wei Zhonghao strictly fulfilled all commitments related to initial public offering and refinancing, such as share lock-up, resolution of horizontal competition, and related-party transactions. All commitments are long-term effective and strictly fulfilled, with no unfulfilled situations - Company shareholder Shanghai Xinyu Investment Management Co., Ltd. strictly fulfilled its **share lock-up commitment**[95](index=95&type=chunk) - Company directors Wei Zhonghao, Xu Yaozhong, and company directors or senior management indirectly holding company shares, Ge Wenbin, Zhu Zhonglan, Huang Jian, Feng Linxia, all strictly fulfilled their **share lock-up commitments**[95](index=95&type=chunk)[96](index=96&type=chunk) - Controlling shareholder and actual controller Wei Zhonghao made long-term effective and strictly fulfilled commitments regarding resolving **horizontal competition**, implementing measures to mitigate dilution of immediate returns from non-public issuance of shares, and resolving **related-party transactions**[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - Company directors, supervisors, and senior management made long-term effective and strictly fulfilled commitments regarding resolving **horizontal competition** and implementing measures to mitigate dilution of immediate returns from non-public issuance of shares[97](index=97&type=chunk)[98](index=98&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period](index=33&type=section&id=II.%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, there was no non-operating fund occupation by the controlling shareholder and other related parties [III. Irregular Guarantees](index=33&type=section&id=III.%20Irregular%20Guarantees) During the reporting period, the company had no external guarantees provided in violation of decision-making procedures [IV. Semi-Annual Report Audit Status](index=33&type=section&id=IV.%20Semi-Annual%20Report%20Audit%20Status) This semi-annual report is unaudited [V. Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Prior Year's Annual Report](index=33&type=section&id=V.%20Changes%20and%20Handling%20of%20Matters%20Involving%20Non-Standard%20Audit%20Opinions%20in%20the%20Prior%20Year's%20Annual%20Report) During the reporting period, there were no changes or handling of matters involving non-standard audit opinions in the prior year's annual report [VI. Bankruptcy Reorganization Matters](index=33&type=section&id=VI.%20Bankruptcy%20Reorganization%20Matters) During the reporting period, the company had no bankruptcy reorganization matters [VII. Significant Litigation and Arbitration Matters](index=33&type=section&id=VII.%20Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no significant litigation or arbitration matters [VIII. Listed Company and Its Directors, Supervisors, Senior Management, Controlling Shareholder, Actual Controller Suspected of Violations, Penalties, and Rectification](index=33&type=section&id=VIII.%20Listed%20Company%20and%20Its%20Directors,%20Supervisors,%20Senior%20Management,%20Controlling%20Shareholder,%20Actual%20Controller%20Suspected%20of%20Violations,%20Penalties,%20and%20Rectification) During the reporting period, there were no instances of the listed company, its directors, supervisors, senior management, controlling shareholder, or actual controller being suspected of violations, receiving penalties, or undergoing rectification [IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller During the Reporting Period](index=33&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company,%20Its%20Controlling%20Shareholder,%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained **good integrity**[100](index=100&type=chunk) - There were no unfulfilled effective court judgments or large overdue debts[100](index=100&type=chunk) [X. Significant Related-Party Transactions](index=33&type=section&id=X.%20Significant%20Related-Party%20Transactions) During the reporting period, the company had no daily operating related-party transactions, asset acquisition or equity acquisition/disposal related-party transactions, joint external investment related-party transactions, related-party creditor-debtor relationships, or other significant related-party transactions that were previously disclosed in temporary announcements and had no subsequent progress or changes [XI. Significant Contracts and Their Fulfillment](index=34&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company had no entrustment, contracting, or leasing matters. The company's guarantee amount for subsidiaries was **CNY 300 million**, accounting for **9.15%** of the company's net assets. The company had no external guarantees (excluding guarantees for subsidiaries) [(I) Entrustment, Contracting, Leasing Matters](index=34&type=section&id=(I)%20Entrustment,%20Contracting,%20Leasing%20Matters) During the reporting period, the company had no entrustment, contracting, or leasing matters [(II) Significant Guarantees Performed and Not Yet Completed During the Reporting Period](index=35&type=section&id=(II)%20Significant%20Guarantees%20Performed%20and%20Not%20Yet%20Completed%20During%20the%20Reporting%20Period) During the reporting period, the company's total guarantee amount for subsidiaries was **CNY 300 million**, accounting for **9.15%** of the company's net assets. The company had no external guarantees (excluding guarantees for subsidiaries) - The total amount of guarantees provided to subsidiaries during the reporting period was **CNY 300 million**[105](index=105&type=chunk) - The total outstanding guarantee balance for subsidiaries at the end of the reporting period was **CNY 300 million**[105](index=105&type=chunk) - The total guarantee amount accounted for **9.15%** of the company's net assets[105](index=105&type=chunk) - The company had **no external guarantees** (excluding guarantees for subsidiaries)[105](index=105&type=chunk) [(III) Other Significant Contracts](index=36&type=section&id=(III)%20Other%20Significant%20Contracts) During the reporting period, the company had no other significant contracts [XII. Explanation of Progress in Use of Raised Funds](index=36&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company's total raised funds were **CNY 750 million**, with a net amount of **CNY 731 million**. Cumulative investment of raised funds totaled **CNY 305 million**, representing an investment progress of **41.69%**. The current year's investment was **CNY 17.30 million**, accounting for **2.37%**. The "Food Ingredients R&D and Manufacturing Base" project is planned to invest **CNY 731 million**, with **CNY 305 million** invested as of the end of the reporting period, an investment progress of **41.69%**, and the project is expected to reach its intended usable state by December 2026. The company used idle raised funds for cash management, with an approved limit of **CNY 489 million** and an outstanding balance of **CNY 446 million** at period-end [(I) Overall Use of Raised Funds](index=36&type=section&id=(I)Overall%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company's total raised funds were **CNY 750 million**, with a net amount of **CNY 731 million**. Cumulative investment of raised funds totaled **CNY 305 million**, representing an investment progress of **41.69%**. The current year's investment was **CNY 17.30 million**, accounting for **2.37%** Overall Use of Raised Funds (Unit: CNY 10,000) | Indicator | Amount | | :--- | :--- | | Total Raised Funds | 75,000.00 | | Net Raised Funds | 73,105.56 | | Total Investment Committed in Prospectus or Offering Document | 75,000.00 | | Total Cumulative Raised Funds Invested as of Period-End | 30,474.97 | | Cumulative Investment Progress of Raised Funds as of Period-End (%) | 41.69 | | Amount Invested This Year | 1,729.71 | | Percentage of Amount Invested This Year (%) | 2.37 | [(II) Details of Fundraising Investment Projects](index=37&type=section&id=(II)Details%20of%20Fundraising%20Investment%20Projects) The company's "Food Ingredients R&D and Manufacturing Base" project plans to invest **CNY 731 million**, with **CNY 305 million** invested as of the end of the reporting period, an investment progress of **41.69%**, and the project is expected to reach its intended usable state by December 2026 Details of Fundraising Investment Projects (Unit: CNY 10,000) | Project Name | Total Planned Investment of Raised Funds (1) | Total Cumulative Raised Funds Invested as of Period-End (2) | Investment Progress (%) (2)/(1) | Date Project Reaches Intended Usable State | | :--- | :--- | :--- | :--- | :--- | | Construction of Food Ingredients R&D and Manufacturing Base | 73,105.56 | 30,474.97 | 41.69 | 2026.12 | [(III) Changes or Termination of Fundraising Investment Projects During the Reporting Period](index=37&type=section&id=(III)Changes%20or%20Termination%20of%20Fundraising%20Investment%20Projects%20During%20the%20Reporting%20Period) During the reporting period, the company had no changes or termination of fundraising investment projects [(IV) Other Uses of Raised Funds During the Reporting Period](index=37&type=section&id=(IV)Other%20Uses%20of%20Raised%20Funds%20During%20the%20Reporting%20Period) The company used idle raised funds for cash management, with an approved limit of **CNY 489 million** and an outstanding balance of **CNY 446 million** at period-end. Additionally, the "Food Ingredients R&D and Manufacturing Base Project" has been extended to December 2026 to reach its intended usable state - The approved limit for cash management of raised funds was **CNY 489 million**, and the cash management balance at the end of the reporting period was **CNY 446 million**[110](index=110&type=chunk) Idle Raised Funds Cash Management Status (Unit: CNY) | Counterparty | Product Name | Amount | Value Date | Maturity Date | Annualized Yield | Actual Principal Recovered | Actual Income Earned | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Everbright Bank | Structured Deposit | 471,500,000.00 | 2024/12/27 | 2025/3/26 | 2.10% | 471,500,000.00 | 2,475,375.00 | | Everbright Bank | Structured Deposit | 474,000,000.00 | 2025/3/27 | 2025/6/27 | 2.05% | 474,000,000.00 | 2,429,250.00 | | Everbright Bank | Structured Deposit | 446,000,000.00 | 2025/6/27 | 2025/9/27 | 1.95% | Not due | Not due | | SPD Bank | Structured Deposit | 15,000,000.00 | 2024/12/23 | 2025/1/23 | 2.20% | 15,000,000.00 | 27,500.00 | | SPD Bank | Structured Deposit | 5,000,000.00 | 2025/2/10 | 2025/3/10 | 1.95% | 5,000,000.00 | 8,125.00 | | Period-end (June 30, 2025) Balance | 446,000,000.00 | | | | | | | - The date for the "Food Ingredients R&D and Manufacturing Base Project" to reach its intended usable state has been extended to **December 2026**[112](index=112&type=chunk) [(V) Conclusive Opinions of Intermediary Agencies on Special Verification and Attestation of Raised Funds Storage and Use](index=39&type=section&id=(V)Conclusive%20Opinions%20of%20Intermediary%20Agencies%20on%20Special%20Verification%20and%20Attestation%20of%20Raised%20Funds%20Storage%20and%20Use) During the reporting period, the company had no conclusive opinions from intermediary agencies on special verification and attestation of raised funds storage and use [(VI) Subsequent Rectification of Unauthorized Changes in Use of Raised Funds and Illegal Occupation of Raised Funds](index=39&type=section&id=(VI)Subsequent%20Rectification%20of%20Unauthorized%20Changes%20in%20Use%20of%20Raised%20Funds%20and%20Illegal%20Occupation%20of%20Raised%20Funds) During the reporting period, the company had no subsequent rectification of unauthorized changes in the use of raised funds or illegal occupation of raised funds [XIII. Explanation of Other Significant Matters](index=39&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company's equity repurchase lawsuit was fully executed and closed in June 2025. Additionally, external guarantees passively formed by the company's sale of subsidiary equity were released in January 2025 - The company filed a lawsuit requesting defendants Xu Guangyi and Dai Xiaowen to repurchase the equity of the company's controlled subsidiary Shanghai Mengze Trading Co., Ltd. After winning the first instance and mediation, the case was **fully executed and closed in June 2025**[113](index=113&type=chunk) - After the company sold its equity in controlled subsidiary Tianshun (Hangzhou) Food Co., Ltd., the **CNY 60 million** credit guarantee provided for its subsidiary Shanghai Tianshun Food Co., Ltd. was **released in January 2025**[116](index=116&type=chunk) [Section VI Share Changes and Shareholder Information](index=41&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section discloses the company's unchanged share capital structure, **19,102** common shareholders, with controlling shareholder Wei Zhonghao holding **30.53%** and **7.6 million** treasury shares in the repurchase account [I. Share Capital Changes](index=41&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital and share capital structure remained unchanged - During the reporting period, the company's total share capital and share capital structure remained **unchanged**[118](index=118&type=chunk) [II. Shareholder Information](index=41&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had a total of **19,102** common shareholders. Among the top ten shareholders, Wei Zhonghao held **30.53%**, being the largest shareholder and an acting-in-concert party with Shanghai Yile Industrial Co., Ltd. The company's dedicated share repurchase account held **7.6 million shares**, accounting for **1.9831%** of the total share capital - Total number of common shareholders at the end of the reporting period: **19,102**[120](index=120&type=chunk) Top Ten Shareholders' Shareholdings (As of Period-End) | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Wei Zhonghao | 117,014,266 | 30.53 | Domestic Natural Person | | Shanghai Yile Industrial Co., Ltd. | 13,320,000 | 3.48 | Domestic Non-State-Owned Legal Person | | Shanghai Xinyu Investment Management Co., Ltd. | 9,750,000 | 2.54 | Domestic Non-State-Owned Legal Person | | Qi Liping | 8,216,600 | 2.14 | Domestic Natural Person | | Liu Jiali | 4,398,400 | 1.15 | Domestic Natural Person | | Shanghai Xinhang Construction Investment Co., Ltd. | 3,600,000 | 0.94 | Domestic Non-State-Owned Legal Person | | Tang Xiaoyan | 3,070,000 | 0.80 | Domestic Natural Person | | Wang Jin | 2,950,510 | 0.77 | Domestic Natural Person | | Liu Quanfu | 2,419,200 | 0.63 | Domestic Natural Person | | Su Yuping | 1,810,100 | 0.47 | Domestic Natural Person | - Mr. Wei Zhonghao and Shanghai Yile Industrial Co., Ltd. are **acting-in-concert parties**[123](index=123&type=chunk) - As of June 30, 2025, the company's dedicated share repurchase account held **7.6 million shares**, and the repurchased shares accounted for **1.9831%** of the company's total share capital[122](index=122&type=chunk) [III. Information on Directors, Supervisors, and Senior Management](index=43&type=section&id=III.%20Information%20on%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, there were no changes in shareholdings of current or former directors, supervisors, and senior management, nor any equity incentives granted [IV. Changes in Controlling Shareholder or Actual Controller](index=43&type=section&id=IV.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the controlling shareholder or actual controller [V. Preferred Share Related Matters](index=43&type=section&id=V.%20Preferred%20Share%20Related%20Matters) During the reporting period, the company had no preferred share related matters [Section VII Bond-Related Matters](index=44&type=section&id=Section%20VII%20Bond-Related%20Matters) This section discloses the company's bond-related matters during the reporting period. During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=44&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments [II. Convertible Corporate Bonds](index=44&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds [Section VIII Financial Report](index=45&type=section&id=Section%20VIII%20Financial%20Report) This section includes the company's unaudited consolidated and parent company financial statements and detailed notes, showing total assets up **2.00%**, net profit up **33.85%**, but operating revenue down **14.87%**, with negative operating cash flow and significantly increased investment cash flow [I. Audit Report](index=45&type=section&id=I.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is **unaudited**[127](index=127&type=chunk) [II. Financial Statements](index=45&type=section&id=II.%20Financial%20Statements) This section provides the company's unaudited consolidated and parent company financial statements, showing total assets of **CNY 3.72 billion** (up **2.00%**), total operating revenue of **CNY 1.24 billion** (down **14.87%**), net profit attributable to parent company shareholders of **CNY 83 million** (up **33.85%**), negative operating cash flow, and positive investment cash flow [Consolidated Balance Sheet](index=45&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's total assets were **CNY 3.72 billion**, an increase of **2.00%** from the end of the prior year. Total current assets were **CNY 2.61 billion**, and total non-current assets were **CNY 1.11 billion**. Total liabilities were **CNY 296 million**, and total owners' equity was **CNY 3.42 billion** Consolidated Balance Sheet Major Data (As of June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 3,719,654,249.10 | 3,646,890,333.32 | | Total Current Assets | 2,610,891,146.20 | 2,586,730,139.33 | | Total Non-Current Assets | 1,108,763,102.90 | 1,060,160,193.99 | | Total Liabilities | 295,960,774.74 | 246,173,909.18 | | Total Owners' Equity | 3,423,693,474.36 | 3,400,716,424.14 | [Parent Company Balance Sheet](index=47&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were **CNY 3.38 billion**, an increase of **2.42%** from the end of the prior year. Total current assets were **CNY 1.69 billion**, and total non-current assets were **CNY 1.69 billion**. Total liabilities were **CNY 336 million**, and total owners' equity was **CNY 3.05 billion** Parent Company Balance Sheet Major Data (As of June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 3,384,283,686.00 | 3,304,473,828.09 | | Total Current Assets | 1,691,217,506.40 | 1,650,072,419.89 | | Total Non-Current Assets | 1,693,066,179.60 | 1,654,401,408.20 | | Total Liabilities | 336,001,491.91 | 257,012,114.16 | | Total Owners' Equity | 3,048,282,194.09 | 3,047,461,713.93 | [Consolidated Income Statement](index=49&type=section&id=Consolidated%20Income%20Statement) In the first half of 2025, the company achieved total operating revenue of **CNY 1.24 billion**, a year-on-year decrease of **14.87%**. Net profit was **CNY 101 million**, a year-on-year increase of **20.16%**. Net profit attributable to parent company shareholders was **CNY 83 million**, a year-on-year increase of **33.85%**. Basic earnings per share were **CNY 0.2212/share** Consolidated Income Statement Major Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 1,236,222,737.48 | 1,452,107,820.06 | | Total Operating Costs | 1,152,709,057.85 | 1,340,859,272.11 | | Total Profit | 120,815,661.74 | 109,354,630.04 | | Net Profit | 101,174,741.72 | 84,202,791.62 | | Net Profit Attributable to Parent Company Shareholders | 83,104,909.95 | 62,086,190.10 | | Basic Earnings Per Share (CNY/share) | 0.2212 | 0.1653 | [Parent Company Income Statement](index=51&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2025, the parent company achieved operating revenue of **CNY 262 million**, a year-on-year increase of **0.85%**. Net profit was **CNY 68 million**, a year-on-year increase of **92.36%** Parent Company Income Statement Major Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 262,120,481.05 | 259,910,350.37 | | Operating Profit | 76,228,390.52 | 39,538,701.66 | | Total Profit | 76,077,083.97 | 39,389,675.57 | | Net Profit | 68,435,279.48 | 35,574,387.35 | [Consolidated Cash Flow Statement](index=52&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, the company's net cash flow from operating activities was **-CNY 6.59 million**, a year-on-year decrease of **103.22%**. Net cash flow from investing activities was **CNY 105 million**, a year-on-year increase of **221.86%**. Net cash flow from financing activities was **-CNY 3.43 million**, a year-on-year decrease of **93.12%**. Cash and cash equivalents at period-end were **CNY 306 million** Consolidated Cash Flow Statement Major Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -6,585,832.07 | 204,707,338.99 | | Net Cash Flow from Investing Activities | 104,895,912.07 | -86,076,539.23 | | Net Cash Flow from Financing Activities | -3,430,730.12 | -49,836,270.94 | | Net Increase in Cash and Cash Equivalents | 94,918,078.09 | 67,198,185.35 | | Cash and Cash Equivalents at Period-End | 305,653,963.01 | 472,545,032.85 | [Parent Company Cash Flow Statement](index=54&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first half of 2025, the parent company's net cash flow from operating activities was **CNY 31.89 million**, a year-on-year decrease of **19.14%**. Net cash flow from investing activities was **CNY 60.65 million**, a year-on-year increase of **241.29%**. Net cash flow from financing activities was **-CNY 4.65 million**, a year-on-year decrease of **89.28%**. Cash and cash equivalents at period-end were **CNY 167 million** Parent Company Cash Flow Statement Major Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 31,885,685.42 | 39,434,562.26 | | Net Cash Flow from Investing Activities | 60,654,656.27 | -42,933,796.09 | | Net Cash Flow from Financing Activities | -4,652,758.96 | -43,364,806.59 | | Net Increase in Cash and Cash Equivalents | 87,972,513.58 | -46,391,593.89 | | Cash and Cash Equivalents at Period-End | 167,245,534.97 | 149,948,920.51 | [Consolidated Statement of Changes in Owners' Equity](index=55&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners'%20Equity) In the first half of 2025, total owners' equity attributable to the parent company increased by **CNY 16.41 million**, minority interests increased by **CNY 6.57 million**, and total owners' equity increased by **CNY 22.98 million** Consolidated Statement of Changes in Owners' Equity (Jan-Jun 2025) | Item | Beginning Balance (CNY) | Amount of Change in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 3,261,815,914.99 | 16,410,256.59 | 3,278,226,171.58 | | Minority Interests | 138,900,509.15 | 6,566,793.63 | 145,467,302.78 | | Total Owners' Equity | 3,400,716,424.14 | 22,977,050.22 | 3,423,693,474.36 | [Parent Company Statement of Changes in Owners' Equity](index=57&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners'%20Equity) In the first half of 2025, the parent company's total owners' equity increased by **CNY 0.82 million**, with an ending balance of **CNY 3.05 billion** Parent Company Statement of Changes in Owners' Equity (Jan-Jun 2025) | Item | Beginning Balance (CNY) | Amount of Change in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 3,047,461,713.93 | 820,480.16 | 3,048,282,194.09 | [III. Company Basic Information](index=58&type=section&id=III.%20Company%20Basic%20Information) The company, formerly Shanghai Aipu Flavor Co., Ltd., was established in 1995 and listed on the Shanghai Stock Exchange in 2015. After several share capital changes, as of June 30, 2025, the company's total share capital was **CNY 383 million**, with **7.6 million treasury shares**. The registered capital is **CNY 383 million**, legal representative is Wei Zhonghao, and its main business is flavors, fragrances, and food ingredients, classified as a food production enterprise - The company's predecessor was Shanghai Aipu Flavor Co., Ltd., established on **June 28, 1995**[150](index=150&type=chunk) - The company was listed on the Shanghai Stock Exchange on **March 25, 2015**[150](index=150&type=chunk) - As of June 30, 2025, the company's total share capital was **CNY 383.24 million** (shares), with **7.6 million treasury shares**[151](index=151&type=chunk) - Registered Capital: **CNY 383.24 million**; Legal Representative: **Wei Zhonghao**[152](index=152&type=chunk) - Industry Nature: **Food production enterprise**; Main Products: **Flavors, fragrances, and food ingredients**; Main business did not change during the reporting period[154](index=154&type=chunk) - The company's actual controller is **Wei Zhonghao**[154](index=154&type=chunk) [IV. Basis of Financial Statement Preparation](index=59&type=section&id=IV.%20Basis%20of%20Financial%20Statement%2

Core Viewpoint - The company reported a decline in revenue for the first half of 2025, while net profit showed significant growth compared to the previous year [1] Financial Performance - The company's operating revenue for the first half of 2025 was 1.236 billion yuan, representing a year-on-year decrease of 14.87% [1] - Net profit reached 83.1049 million yuan, which is a year-on-year increase of 33.85% [1] - Basic earnings per share were 0.2212 yuan, reflecting a year-on-year growth of 33.82% [1]

Core Insights - The demand for food flavoring agents, particularly food flavoring, is increasing due to the rising living standards and fast-paced lifestyle of consumers, who prefer convenient processed foods with rich and diverse flavors [1][12] - The food flavoring industry in China has shown a consistent upward trend since 2018, with the market size projected to reach 23.607 billion yuan in 2024, reflecting a year-on-year increase of 4.59% [1][12] - The industry is influenced by advancements in biotechnology, nanotechnology, and AI flavoring, which enhance the quality and stability of food flavoring products [1][12] Industry Overview - Food flavoring is a mixture that imparts aroma to food, combining natural and synthetic flavors to enhance the sensory experience of various food products [3][4] - Food flavoring is widely used across multiple food categories, including beverages, baked goods, frozen foods, candies, and dairy products, providing diverse flavor profiles [3][4] - The usage of food flavoring is strictly controlled, typically ranging from 0.1% to 0.6% in food products to ensure safety and avoid overwhelming flavors [3] Industry Classification - Food flavoring can be classified based on manufacturing methods into natural flavors, equivalent natural flavors, artificial flavors, microbiological methods, and reaction-type flavors [5] - It can also be categorized by state into liquid flavors, emulsified flavors, and powdered flavors [5] Regulatory Environment - The Chinese government has implemented various policies to ensure the safety of food additives, including food flavoring, emphasizing the need for strict quality control and compliance with safety standards [6][12] - Recent regulations focus on the safe use of food additives in pre-packaged foods and the prohibition of unauthorized additives in food production [6][12] Market Dynamics - The food industry is increasingly reliant on flavoring agents to enhance product appeal and drive sales, with the food flavoring market closely tied to the overall food industry performance [10][12] - The revenue of large-scale food manufacturing enterprises in China showed a slight decline in 2022-2023 but is expected to recover with a projected increase of 0.78% in 2024 [10] Competitive Landscape - The global food flavoring market is dominated by a few major international companies, while the Chinese market is characterized by lower concentration but is gradually consolidating [14] - Key players in the Chinese food flavoring industry include Huabao Flavors & Fragrances Co., Ltd., Aipu Flavor Group Co., Ltd., and Anhui Huaye Flavor Co., Ltd., among others [14][16] Financial Performance of Key Companies - Huabao Flavors & Fragrances Co., Ltd. reported a revenue of 853 million yuan in 2024, reflecting a year-on-year decrease of 10.60% [16] - Aipu Flavor Group Co., Ltd. achieved a revenue of 622 million yuan in 2024, marking a year-on-year increase of 14.72% [18] - Anhui Huaye Flavor Co., Ltd. reported a revenue of 345 million yuan in 2024, with a significant year-on-year increase of 28.12% [16] Future Trends - The food flavoring industry is shifting towards healthier and more natural products in response to consumer demand for transparency and quality [20] - New technologies such as biotechnology and supercritical extraction are improving production processes and product safety, creating new growth opportunities [20] - Environmental sustainability and resource recycling are becoming critical drivers for industry development, alongside the increasing demand for diverse and personalized flavors [20]

Core Viewpoint - The company has announced a differentiated cash dividend distribution plan, with a cash dividend of 0.18 yuan per share (before tax) for A shares, following the approval at the 2024 annual general meeting [1][2]. Dividend Distribution Plan - The total share capital as of the record date is 383,237,774 shares, with 7,600,000 shares in the company's repurchase account excluded, resulting in 375,637,774 shares eligible for cash dividends [2]. - The total cash dividend distribution amounts to 67,614,799.32 yuan (before tax), with each 10 shares receiving 1.80 yuan [2]. - The company will not conduct capital reserve transfers or issue bonus shares [2]. Relevant Dates - The key dates for the dividend distribution are as follows: - Record date: July 8, 2025 - Last trading day: July 9, 2025 - Ex-dividend date: July 9, 2025 - Cash dividend payment date: To be announced [3]. Calculation of Ex-Dividend Price - The ex-dividend reference price is calculated as the previous closing price minus the cash dividend, as there will be no changes in the number of circulating shares [3]. - The actual cash dividend per share, after adjustments, is approximately 0.17643 yuan [3]. Taxation on Dividends - For individual shareholders holding shares for over one year, dividend income is exempt from personal income tax; for those holding shares for one month or less, the full amount is taxable at a rate of 20% [5]. - For qualified foreign institutional investors (QFII), a 10% withholding tax applies, resulting in a net cash dividend of 0.162 yuan per share [6]. - Other institutional investors are responsible for their own tax declarations, with a cash dividend of 0.18 yuan per share [7]. Contact Information - For inquiries regarding the dividend distribution, shareholders can contact the company's securities affairs department at 021-66523100 or visit the office at 733 Gao Ping Road, Jing'an District, Shanghai [7].

证券代码：603020 证券简称：爱普股份 公告编号：2025-029 爱普香料集团股份有限公司 2024年年度权益分派实施公告 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。 重要内容提示： 每股分配比例 A 股每股现金红利0.18元（含税） 相关日期 | 股份类别 | 股权登记日 | 最后交易日 | 除权（息）日 | 现金红利发放日 | | --- | --- | --- | --- | --- | | Ａ股 | 2025/7/8 | － | 2025/7/9 | 2025/7/9 | 差异化分红送转： 是 一、通过分配方案的股东大会届次和日期 本次利润分配方案经爱普香料集团股份有限公司（以下简称：公司或本公司） 2025 年 5 月 23 日召开的2024年年度股东大会审议通过。 二、分配方案 1. 发放年度：2024年年度 2. 分派对象： 截至股权登记日下午上海证券交易所收市后，在中国证券登记结算有限责任 公司上海分公司（以下简称：中国结算上海分公司）登记在册的本公司全体股东。 根据《中华人民共和国公司法》、《中华人 ...

上海市广发律师事务所 关于爱普香料集团股份有限公司 差异化分红事项之 专项法律意见 一广发律师事务所 电话:021-8358013 | 传真: 021-58358012 网址：http://www.gffirm.com| 电子信箱：gf@gffirm.com 办公地址： 上海市南泉北路 429 号泰康保险大厦 26 楼 | 邮政编码：200120 上海市广发律师事务所 关于爱普香料集团股份有限公司差异化分红事项之 专项法律意见 致:爱普香料集团股份有限公司 上海市广发律师事务所(以下简称"本所")接受爱普香料集团股份有限公 司(以下简称"公司")的委托,根据《中华人民共和国公司法》(以下简称"《公 司法》")、《中华人民共和国证券法》(以下简称"《证券法》")、《上海证券交易所 上市公司自律监管指引第 7 号 -- 回购股份》(以下简称"《自律监管指引第 7 号》")等法律法规、其他规范性文件以及《爱普香料集团股份有限公司章程》(以 下简称"《公司章程》"）的规定,就公司 2024年度利润分配所涉及的差异化分红 特殊除权除息处理(以下简称"本次差异化分红")的相关事宜进行专项核查并 出具法律意见书。 为出具本 ...

Core Viewpoint - The lawsuit regarding the equity repurchase of the subsidiary Shanghai Mengze Trading Co., Ltd. has been concluded, with the company successfully executing the judgment and impacting its financial results [1][4]. Summary of Relevant Sections Basic Situation of the Lawsuit - The company initiated a lawsuit in March 2024 against defendants Xu Guangyi and Dai Xiaowen for the repurchase of equity in its subsidiary, with a claim amount of 32 million yuan [1]. - The first-instance court ruled in favor of the company, which was later appealed by the defendants [2]. Progress of the Lawsuit - The company agreed to a mediation proposal from the Shanghai Second Intermediate People's Court, which was documented in a civil mediation letter [2][3]. - The defendants failed to fulfill their obligations within the agreed timeframe, prompting the company to seek enforcement of the payment from the court [3][4]. Execution Progress - The company received a notification from the court confirming that the lawsuit has been fully executed and concluded [4].

证券代码：603020 证券简称：爱普股份 公告编号：2025-028 爱普香料集团股份有限公司 关于控股子公司股权回购诉讼进展 暨执行结案的公告 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。 重要内容提示: ● 是否会对上市公司损益产生影响：本次诉讼已执行完毕并结案，对公司 损益将产生影响。具体会计处理及相关财务数据以经会计师事务所审计的结果为 准。 一、本次诉讼的基本情况 本案一审被告许广益、戴晓雯不服嘉定法院（2024）沪 0114 民初 7467 号民 事判决，向上海市第二中级人民法院（以下简称：二中院）提出上诉。具体内容 详见公司 2025 年 4 月 9 日披露于上海证券交易所网站（www.sse.com.cn）及刊 载于《上海证券报》、《证券时报》的《爱普香料集团股份有限公司关于控股子公 司股权回购诉讼进展的公告》（公告编号：2025-005）。 2025 年 5 月，公司收到二中院《传票》。根据《传票》信息，二中院已受理 公司与许广益、戴晓雯之间的上述股权转让纠纷案件，案号：（2025）沪 02 民终 502 ...

● 是否会对上市公司损益产生影响：公司本次诉讼的后续进展和执行情况 尚存在不确定性，对本公司利润的影响尚存在不确定性，具体会计处理及相关财 务数据以经会计师事务所审计的结果为准。 证券代码：603020 证券简称：爱普股份 公告编号：2025-027 爱普香料集团股份有限公司 关于控股子公司股权回购诉讼进展 暨申请执行的公告 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。 重要内容提示: 二、申请执行情况 由于民事调解书确定的履行期限已届满，许广益、戴晓雯未在约定的期限内 履行相应的义务，公司为维护自身合法权益向嘉定法院申请依法强制执行许广益、 戴晓雯向申请执行人支付股权转让款3,200万元。 一、本次诉讼的基本情况 爱普香料集团股份有限公司（以下简称"公司"）就要求被告许广益、戴晓 雯回购公司控股子公司上海盟泽商贸有限公司股权事项于 2024 年 3 月向上海市 嘉定区人民法院（以下简称：嘉定法院）提起诉讼并申请诉前财产保全。具体内 容详见公司 2024 年 3 月 14 日披露于上海证券交易所网站（www.sse.com. ...