Core Insights - The company reported a total revenue of 1.399 billion yuan for the first half of 2025, a decrease of 6.49% year-on-year, while the net profit attributable to shareholders was 2.6087 million yuan, an increase of 105.9% [1] - The second quarter revenue was 711 million yuan, down 8.64% year-on-year, but the net profit for the same period was 9.3266 million yuan, up 154.26% [1] - The company's profitability improved, with a gross margin increase of 33.34% and a net margin increase of 111.72% compared to the previous year [1] Financial Performance - Total revenue for 2024 was 1.496 billion yuan, while for 2025 it was 1.399 billion yuan, reflecting a decline of 6.49% [1] - The net profit for 2024 was a loss of 44.2223 million yuan, while for 2025 it turned into a profit of 2.6087 million yuan, marking a significant turnaround [1] - The gross margin for 2025 was 12.68%, up from 9.51% in 2024, and the net margin improved from -2.77% to 0.32% [1] Cost and Expenses - Total selling, administrative, and financial expenses amounted to 101 million yuan, accounting for 7.23% of revenue, which is an increase of 13.14% year-on-year [1] - The company's cash flow per share was -0.28 yuan, showing a 31.15% improvement from -0.4 yuan in the previous year [1] Asset and Liabilities - Cash and cash equivalents decreased by 52.28% from 932 million yuan in 2024 to 445 million yuan in 2025 [1] - Interest-bearing liabilities decreased by 29.36% from 775 million yuan to 547.1 million yuan [1] Business Model and Strategy - The company's performance is primarily driven by research and development, indicating a need for further analysis of the underlying factors supporting this growth [2]

Core Viewpoint - Nantong Acetic Acid Chemical Co., Ltd. reported a decrease in revenue and a significant increase in net profit for the first half of 2025, indicating a recovery from previous losses despite a challenging market environment [1][2]. Financial Performance - The company's operating income for the first half of 2025 was approximately CNY 1.399 billion, a decrease of 6.49% compared to the same period last year [2]. - Total profit reached approximately CNY 9.78 million, a significant increase of 120.81% year-on-year [2]. - The net profit attributable to shareholders was approximately CNY 2.61 million, up 105.90% from the previous year [2]. - The net cash flow from operating activities was negative CNY 56.45 million, but improved by 32.12% compared to the previous year [2]. Key Financial Indicators - Basic earnings per share were CNY 0.0126, a turnaround from a loss of CNY 0.2116 in the same period last year [2]. - The weighted average return on equity increased to 0.14%, up 2.38 percentage points from the previous year [2]. - The total assets of the company at the end of the reporting period were approximately CNY 3.459 billion, an increase of 3.07% from the end of the previous year [2]. Business Overview - The company operates in the fine chemical industry, focusing on the production and sale of food and feed additives, pharmaceutical and pesticide intermediates, and dye intermediates [3]. - The company has established a comprehensive fine chemical business system, including product research and development, process optimization, industrial production, and custom processing [3]. - Nantong Acetic Acid Chemical Co., Ltd. is recognized as a key high-tech enterprise and has received various accolades for its innovation and technology [3]. Market Environment - The company is navigating a challenging market influenced by global economic conditions and regulatory changes, particularly in the chemical industry [3]. - Recent government policies have emphasized technological innovation and green development, which may benefit companies with strong technical capabilities and cost advantages [3]. - The tightening of environmental regulations is expected to eliminate outdated production capacities, potentially increasing market concentration in the industry [3].

Core Viewpoint - Nantong Acetic Acid Chemical Co., Ltd. reported a decrease in operating income and an increase in net profit for the first half of 2025, indicating a recovery in profitability despite lower revenue [1][2]. Financial Summary - Total assets at the end of the reporting period amounted to CNY 3,459,406,528.08, reflecting a 3.07% increase from the previous year [1]. - Net assets attributable to shareholders reached CNY 1,835,029,661.03, a slight increase of 0.54% compared to the end of the previous year [1]. - Operating income for the period was CNY 1,399,059,087.84, down 6.49% from CNY 1,496,090,420.34 in the same period last year [1]. - Total profit for the period was CNY 9,784,364.85, a significant increase of 120.81% compared to a loss of CNY 47,023,224.48 in the previous year [1]. - Net profit attributable to shareholders was CNY 2,608,664.22, up 105.90% from a loss of CNY 44,222,320.27 in the same period last year [1]. - The net profit after deducting non-recurring gains and losses was CNY -6,583,510.09, showing an improvement of 87.06% from the previous year's loss of CNY 50,862,552.86 [1]. - The net cash flow from operating activities was CNY -56,448,463.71, an improvement of 32.12% from CNY -83,156,095.03 in the previous year [1]. - The weighted average return on net assets increased by 2.38 percentage points to 0.14% [1]. - Basic and diluted earnings per share were both CNY 0.0126, a significant recovery from CNY -0.2116 in the previous year [1]. Shareholder Information - The total number of shareholders at the end of the reporting period was 13,402 [1]. - The top shareholder, Gu Qingquan, holds 8.90% of the shares, followed by Nantong Xinyuan Investment with 8.57% [2][3]. - Other notable shareholders include Ding Caifeng (5.98%), Yang Meiyun (4.01%), and others, with various ownership percentages [2].

Group 1 - The board of directors of Nantong Acetic Acid Chemical Co., Ltd. held its 22nd meeting of the 8th session on August 27, 2025, which was conducted both in-person and via remote voting [1][2] - The meeting approved the "2025 Semi-Annual Report" and its summary, with a unanimous vote of 9 in favor and no votes against or abstentions [1] - The meeting also approved the proposal regarding the provision for impairment for the first half of 2025, again with a unanimous vote of 9 in favor [2]

Core Viewpoint - The company, Nantong Acetic Acid Chemical Co., Ltd. (醋化股份), has released its 2025 semi-annual report, highlighting significant financial data and the decision to not distribute profits or increase capital reserves during this period [1][5]. Group 1: Company Overview - The company is identified as Nantong Acetic Acid Chemical Co., Ltd. with the stock code 603968 [2]. - The report emphasizes the importance of reviewing the full semi-annual report for a comprehensive understanding of the company's performance and future plans [1]. Group 2: Financial Data - The company reported a total asset impairment loss of 25.99 million yuan for the first half of 2025, which includes credit impairment and inventory write-downs [13][14]. - The credit impairment provision amounted to 1.82 million yuan, while the inventory write-down provision was 24.17 million yuan, collectively reducing the total profit by 4.14 million yuan, representing 29.72% of the profit before impairment [15]. Group 3: Board Meeting - The 22nd meeting of the 8th Board of Directors was held on August 27, 2025, with all 9 directors participating, and the meeting was deemed legally valid [4][7]. - The board approved the semi-annual report and the asset impairment provision during this meeting [5][9].

（文章来源：证券日报） 证券日报网讯 8月28日晚间，醋化股份发布公告称，公司第八届董事会第二十二次会议审议通过了《关 于2025年半年度计提减值准备的议案》等。 ...

Group 1 - The company, Vine Chemical Co., Ltd. (SH 603968), announced its board meeting held on August 27, 2025, to discuss the proposal for impairment provision for the first half of 2025 [1] - For the year 2024, the revenue composition of Vine Chemical is as follows: chemical manufacturing accounts for 78.83%, other goods for 16.4%, and other businesses for 4.77% [1] - As of the report date, the market capitalization of Vine Chemical is 2.6 billion yuan [1]

证券代码：603968 证券简称：醋化股份 公告编号：临2025-030 经表决：赞成9票，反对0票，弃权0票。 一、董事会会议召开情况 南通醋酸化工股份有限公司（以下简称"公司"）第八届董事会第二十二次会 议于2025年8月27日在公司会议室以现场+通讯表决的方式召开。本次会议通知于 2025年8月15日以电子邮件方式发出，应参与表决董事9人，实际参与表决董事9人（独 立董事赵伟建、王宝荣以通讯表决方式参加本次会议）。会议的召集和召开程序符 合《公司法》等相关法律法规及《公司章程》的有关规定，会议决议合法、有效。 会议由董事长庆九先生主持，公司监事、高级管理人员列席了本次会议。 二、董事会会议审议情况 会议审议通过了如下议案： （一）审议并通过《2025年半年度报告》及《2025年半年度报告摘要》 同意公司《2024年半年度报告》及《2024年半年度报告摘要》。 具体内容详见上海证券交易所网站（www.sse.com.cn）。 南通醋酸化工股份有限公司 第八届董事会第二十二次会议决议的公告 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 ...

格隆汇8月28日丨醋化股份(603968.SH)公布半年度报告，营业收入13.99亿元，同比下降6.49%，归属于 上市公司股东的净利润260.87万元，同比扭亏，扣非净亏损658万元，基本每股收益0.0126元。 ...

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter provides definitions of common terms used in the report, covering regulatory bodies, exchanges, company entities, related parties, and fine chemical industry terms, ensuring accurate interpretation of the report - "Company", "the Company", or "Acetic Acid Chemical" refers to Nantong Acetic Acid Chemical Co., Ltd[13](index=13&type=chunk) - "Fine Chemicals" refers to the chemical industry producing fine chemical products, a strategic focus and one of the fastest-growing economic sectors in the world today[13](index=13&type=chunk) - "Food and Feed Additives" refers to chemically synthesized or natural substances added to food and feed to improve quality, for preservation, or for processing needs, such as sweeteners, food flavors, colorants, and preservatives[13](index=13&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [I. Company Information](index=5&type=section&id=I.%20Company%20Information) This section lists the company's basic identification information, including its Chinese name, abbreviation, foreign name and abbreviation, and the name of its legal representative - The company's Chinese name is Nantong Acetic Acid Chemical Co., Ltd., abbreviated as Acetic Acid Chemical[15](index=15&type=chunk) - The company's legal representative is Qing Jiu[15](index=15&type=chunk) [II. Contact Person and Contact Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including name, address, telephone, fax, and email, for investor communication - Both the Board Secretary and Securities Affairs Representative are Tang Xia, with the contact address at No. 968 Jiangshan Road, Nantong Economic and Technological Development Zone[16](index=16&type=chunk) - The contact telephone and fax are both 0513-68091213, and the email address is aac@ntacf.com[16](index=16&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section introduces the company's registered and office addresses and notes that there were no historical changes to the company's registered address during the reporting period - The company's registered and office addresses are both No. 968 Jiangshan Road, Nantong Economic and Technological Development Zone, postal code 226009[17](index=17&type=chunk) - The company's website is http://www.ntacf.com, and the email address is aac@ntacf.com[17](index=17&type=chunk) - There were no historical changes to the company's registered address during the reporting period[17](index=17&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) This section specifies the company's designated information disclosure newspapers, the website address for semi-annual reports, and the report custody location, with no changes during the reporting period - The company's designated information disclosure newspapers are "Shanghai Securities News", "China Securities Journal", and "Securities Daily"[18](index=18&type=chunk) - The website address for publishing semi-annual reports is www.sse.com.cn[18](index=18&type=chunk) - The company's semi-annual report is kept at the Board Office of Nantong Acetic Acid Chemical Co., Ltd[18](index=18&type=chunk) [V. Company Stock Profile](index=5&type=section&id=V.%20Company%20Stock%20Profile) This section provides the company's stock listing information, including stock type, listing exchange, stock abbreviation, and stock code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[19](index=19&type=chunk) - The stock abbreviation is Acetic Acid Chemical, and the stock code is 603968[19](index=19&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=5&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by 6.49% year-on-year, but total profit and net profit attributable to shareholders of the listed company both achieved significant growth, increasing by 120.81% and 105.90% respectively, turning losses into profits; net cash flow from operating activities improved by 32.12% year-on-year Key Accounting Data (January-June 2025 vs. Prior Period) | Key Accounting Data | Current Reporting Period (Jan-Jun) (CNY) | Prior Period (CNY) | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,399,059,087.84 | 1,496,090,420.34 | -6.49 | | Total Profit | 9,784,364.85 | -47,023,224.48 | 120.81 | | Net Profit Attributable to Shareholders of the Listed Company | 2,608,664.22 | -44,222,320.27 | 105.90 | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | -6,583,510.09 | -50,862,552.86 | 87.06 | | Net Cash Flow from Operating Activities | -56,448,463.71 | -83,156,095.03 | 32.12 | | **Current Period-end vs. Prior Year-end** | | | | | Net Assets Attributable to Shareholders of the Listed Company | 1,835,029,661.03 | 1,825,205,300.81 | 0.54 | | Total Assets | 3,459,406,528.08 | 3,356,330,821.20 | 3.07 | Key Financial Indicators (January-June 2025 vs. Prior Period) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.0126 | -0.2116 | 105.96 | | Diluted Earnings Per Share (CNY/share) | 0.0126 | -0.2116 | 105.96 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (CNY/share) | -0.0318 | -0.2434 | 86.93 | | Weighted Average Return on Net Assets (%) | 0.14 | -2.24 | Increased by 2.38 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | -0.36 | -2.57 | Increased by 2.21 percentage points | [IX. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the company's non-recurring gains and losses items and their amounts for the reporting period, totaling CNY 9,192,174.31, primarily including gains/losses from disposal of financial assets and government grants Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets, including the reversal of impairment provisions | -304,783.29 | | Government grants recognized in current profit or loss | 4,191,326.80 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 8,572,759.40 | | Share-based payment expenses recognized in a lump sum due to cancellation or modification of equity incentive plans | -3,789,177.70 | | Other non-operating income and expenses apart from the above | 2,390,059.38 | | Less: Income tax impact | 1,969,267.61 | | Impact on minority interests (after tax) | -101,257.33 | | Total | 9,192,174.31 | [X. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact](index=7&type=section&id=X.%20Companies%20with%20Equity%20Incentive%20or%20Employee%20Stock%20Ownership%20Plans%20May%20Choose%20to%20Disclose%20Net%20Profit%20After%20Deducting%20Share-Based%20Payment%20Impact) This section discloses the net profit after deducting the impact of share-based payments, showing that this indicator for the current reporting period was CNY 10,017,270.70, a significant increase of 130.14% compared to the prior period Net Profit After Deducting Share-Based Payment Impact | Key Accounting Data | Current Reporting Period (Jan-Jun) (CNY) | Prior Period (CNY) | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 10,017,270.70 | -33,231,737.39 | 130.14 | [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) [I. Description of the Company's Industry and Main Business During the Reporting Period](index=8&type=section&id=I.%20Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company primarily engages in R&D, production, and sales of high-end specialized fine chemicals, mainly acetic acid and pyridine derivatives, with products widely used in food, medicine, pesticides, and pigments; the company holds a leading position in the industry due to its technological and brand advantages and actively responds to national policies to promote green, low-carbon transformation and high-quality development [1. Main Business](index=8&type=section&id=1.%20Main%20Business) The company's core business is the R&D, production, and sales of high-end specialized fine chemicals, covering acetic acid and pyridine derivatives, and involving chemical pesticide technicals and formulations, as well as chemical intermediates - The company primarily engages in the research, development, production, and sales of high-end specialized fine chemicals, mainly acetic acid derivatives and pyridine derivatives[29](index=29&type=chunk) - Business content covers a complete fine chemical business system including product R&D, process optimization and development, industrial production, supporting operations, and custom processing[29](index=29&type=chunk) [2. Main Products and Uses](index=8&type=section&id=2.%20Main%20Products%20and%20Uses) The company's products are mainly divided into food and feed additives (e.g., sorbic acid, dehydroacetic acid, acesulfame potassium), pharmaceutical and pesticide intermediates (e.g., acetoacetic acid methyl/ethyl ester), and pigment/dye intermediates (e.g., acetoacetanilide products), widely used in relevant fields - Main products include food and feed additives (sorbic acid (potassium), dehydroacetic acid (sodium), acesulfame potassium)[29](index=29&type=chunk) - Pharmaceutical and pesticide intermediates (acetoacetic acid methyl/ethyl ester) and pigment/dye intermediates (acetoacetanilide products)[29](index=29&type=chunk) - Major products of the controlling subsidiary Baoling Chemical include metalaxyl, mefenoxam, profenofos, and 2,6-dimethylaniline[29](index=29&type=chunk) [3. Business Model](index=8&type=section&id=3.%20Business%20Model) The company implements a centralized and unified procurement model, a production model based on sales orders, and a sales model combining direct sales and channel sales, forming a marketing network covering various product markets - The procurement model implements centralized and unified management, with detailed rules and regulations in place[30](index=30&type=chunk) - The production model adopts a make-to-order approach, ensuring compliance with national laws, regulations, and international common standards[30](index=30&type=chunk) - The sales model combines direct sales of self-produced products and channel sales, covering domestic and international markets[30](index=30&type=chunk) [4. Market Position and Performance Drivers](index=8&type=section&id=4.%20Market%20Position%20and%20Performance%20Drivers) The company has been recognized as one of China's Top 100 Fine Chemical Enterprises and a National High-tech Enterprise, maintaining a leading competitive position in the industry through its product brand, quality, technological level, and customer resources - The company has been recognized as one of China's Top 100 Fine Chemical Enterprises, a National High-tech Enterprise, and a National Torch Program Key High-tech Enterprise[31](index=31&type=chunk) - The company consistently maintains a leading competitive position in the industry due to its product brand, quality, technological level, customer resources, and stable supply capacity[31](index=31&type=chunk) [5. Industry Overview](index=8&type=section&id=5.%20Industry%20Overview) The fine chemical industry is experiencing development opportunities under national high-quality development strategies and policy support, but faces challenges from a global economic slowdown and "reciprocal tariffs"; the industry is under pressure from tightening environmental standards and carbon emission accounting, driving the elimination of backward capacity and increased industry concentration, requiring the company to actively promote green technological innovation and international development - National policies emphasize "accelerating the construction of a new development pattern and striving to promote high-quality development," pointing the direction for China's economic development[31](index=31&type=chunk) - The global economic recovery slowed in 2025, and the impact of US "reciprocal tariffs" intensified, making industry competition normalized[31](index=31&type=chunk) - The state revised the "Industrial Structure Adjustment Catalog" and issued the "Green and Low-Carbon Transformation Industry Guidance Catalog (2024 Edition)," tightening environmental emission limits and promoting the industry's transformation towards "high-end, intelligent, and green" development[31](index=31&type=chunk)[32](index=32&type=chunk) - The EU Carbon Border Adjustment Mechanism (CBAM) includes chemical products in its scope, and domestic requirements mandate carbon footprint certification before 2025, forcing green technological innovation in the industry[32](index=32&type=chunk) [II. Discussion and Analysis of Operating Performance](index=9&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) During the reporting period, the company effectively increased product profitability, alleviated market competition pressure, and achieved overall profitability by actively responding to market changes, expanding marketing efforts, optimizing product and customer structures, improving production processes, and reducing costs and increasing efficiency - The company actively responded to market changes, increased marketing efforts, and adjusted its product, customer, and sales region structures[33](index=33&type=chunk) - By optimizing production organization, improving equipment processes, and promoting cost reduction and efficiency improvement, the company effectively enhanced product profitability[33](index=33&type=chunk) - These measures provided support for the company to achieve overall profitability[33](index=33&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=9&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company confirmed that its core competitiveness factors did not undergo significant changes during the reporting period, and no situations with severe impact on the company occurred - The company's core competitiveness factors did not undergo significant changes during the reporting period[34](index=34&type=chunk) - No situations with severe impact on the company occurred during this period either[34](index=34&type=chunk) [IV. Main Operating Performance During the Reporting Period](index=10&type=section&id=IV.%20Main%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue decreased by 6.49% year-on-year, but total profit significantly increased by 120.81%; financial expenses increased significantly due to exchange rate fluctuations and reduced interest income; the asset-liability structure was adjusted, with a decrease in monetary funds and an increase in financial assets held for trading and accounts receivable financing; the company's total external equity investment increased, and major controlled and invested companies performed well [(I) Analysis of Main Business](index=10&type=section&id=(I)%20Analysis%20of%20Main%20Business) The company's operating revenue decreased by 6.49% year-on-year, but operating costs decreased more significantly, leading to a substantial 120.81% increase in total profit; financial expenses increased significantly due to exchange rate fluctuations and reduced interest income, and net cash flow from investment activities saw a substantial outflow due to increased cash management investments Analysis Table of Financial Statement Items Changes | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,399,059,087.84 | 1,496,090,420.34 | -6.49 | | Operating Costs | 1,221,592,073.88 | 1,353,763,567.96 | -9.76 | | Selling Expenses | 16,693,973.55 | 15,974,081.28 | 4.51 | | Administrative Expenses | 78,498,651.44 | 83,189,065.29 | -5.64 | | Financial Expenses | 5,894,012.63 | -3,617,557.39 | 262.93 | | R&D Expenses | 46,827,383.40 | 45,112,089.91 | 3.80 | | Net Cash Flow from Operating Activities | -56,448,463.71 | -83,156,095.03 | 32.12 | | Net Cash Flow from Investment Activities | -235,393,593.10 | -61,009,154.36 | -285.83 | | Net Cash Flow from Financing Activities | 69,389,039.94 | 174,927,851.17 | -60.33 | - The change in financial expenses was mainly due to foreign currency exchange rate fluctuations, reduced exchange gains, and decreased interest income in the current period[35](index=35&type=chunk) - The change in net cash flow from investment activities was mainly due to an increase in net cash management investments in the current period[35](index=35&type=chunk) [(III) Analysis of Assets and Liabilities](index=11&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's monetary funds decreased by 32.39%, while financial assets held for trading and accounts receivable financing increased by 43.21% and 43.13% respectively, mainly due to increased cash management investments and higher balances of bank acceptance bills; short-term borrowings and non-current liabilities due within one year increased significantly, while long-term borrowings and employee benefits payable decreased Changes in Assets and Liabilities (Current Period-end vs. Prior Year-end) | Item Name | Current Period-end (CNY) | Proportion of Total Assets at Current Period-end (%) | Prior Year-end (CNY) | Proportion of Total Assets at Prior Year-end (%) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 444,977,884.90 | 12.86 | 658,162,888.55 | 19.61 | -32.39 | Mainly due to an increase in cash management investment balance at period-end | | Financial Assets Held for Trading | 673,962,137.86 | 19.48 | 470,610,917.70 | 14.02 | 43.21 | Mainly due to an increase in cash management investment balance at period-end | | Accounts Receivable Financing | 124,081,453.50 | 3.59 | 86,693,079.59 | 2.58 | 43.13 | Mainly due to an increase in the balance of bank acceptance bills with high credit ratings compared to the beginning of the year | | Prepayments | 56,917,194.23 | 1.65 | 37,316,812.82 | 1.11 | 52.52 | Mainly due to an increase in raw material procurement prepayments at period-end | | Other Receivables | 4,661,577.27 | 0.13 | 2,625,706.81 | 0.08 | 77.54 | Mainly due to an increase in petty cash loan balance and a decrease in bad debt provision balance at period-end | | Investment Properties | - | - | 3,178,681.19 | 0.09 | -100.00 | Mainly due to the expiration of property leases | | Construction in Progress | 64,322,721.92 | 1.86 | 46,865,016.69 | 1.40 | 37.25 | Mainly due to increased investment in construction in progress projects in the current period | | Other Non-current Assets | 16,930,271.62 | 0.49 | 12,656,014.15 | 0.38 | 33.77 | Mainly due to an increase in non-operating prepayments | | Short-term Borrowings | 208,000,000.00 | 6.01 | 97,000,000.00 | 2.89 | 114.43 | Mainly due to an increase in current portion of long-term borrowings due within one year at period-end | | Financial Liabilities Held for Trading | - | - | 2,245,071.80 | 0.07 | -100.00 | Mainly due to an increase in the fair value of financial derivatives at period-end | | Notes Payable | 416,487,528.78 | 12.04 | 305,848,903.98 | 9.11 | 36.17 | Mainly due to an increase in the balance of unmatured bank acceptance bills at period-end | | Employee Benefits Payable | 12,236,633.67 | 0.35 | 29,004,059.07 | 0.86 | -57.81 | Mainly due to the payment of year-end performance bonuses accrued last year in the current period | | Other Payables | 5,370,513.89 | 0.16 | 53,751,564.04 | 1.60 | -90.01 | Mainly due to the payment of equity incentive repurchase obligations and equity acquisition payments in the current period | | Non-current Liabilities Due Within One Year | 253,368,244.37 | 7.32 | 162,061,439.58 | 4.83 | 56.34 | Mainly due to an increase in long-term borrowings due within one year at period-end | | Long-term Borrowings | 79,725,582.58 | 2.30 | 174,898,052.34 | 5.21 | -54.42 | Mainly due to a decrease in long-term borrowings due beyond one year at period-end | | Lease Liabilities | 66,019.74 | - | 132,103.70 | - | -50.02 | Mainly due to a decrease in future lease payments | | Provisions | 109,242.31 | - | 967,150.03 | 0.03 | -88.70 | Mainly due to the reversal of estimated returns as the return period agreed in previous sales expired | - Overseas assets amounted to **CNY 193.73 million**, accounting for **5.60%** of total assets[39](index=39&type=chunk) [(IV) Analysis of Investment Status](index=12&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) The company's total external equity investment was CNY 107.05 million, with a period-end book value of CNY 132.54 million, primarily invested in Nantong Guoxin Financing Guarantee, Lanzhou Dingda Technology, and Beijing Huaguan Biotechnology Overall Analysis of External Equity Investments | Name of Investee | Initial Investment Amount (CNY) | Initial Shareholding Ratio (%) | Period-end Book Value (CNY) | | :--- | :--- | :--- | :--- | | Jiangsu Greenlily Co., Ltd. | 313,285.00 | 0.39 | - | | Nantong Guoxin Financing Guarantee Co., Ltd. | 8,000,000.00 | 8.00 | 2,818,771.03 | | Lanzhou Dingda Technology Co., Ltd. | 38,000,000.00 | 20.03 | 30,905,264.69 | | Beijing Huaguan Biotechnology Co., Ltd. | 20,000,000.00 | 5.56 | 36,801,000.00 | | Hefei Hongzhuan Dongfang Equity Investment Partnership (Limited Partnership) | 30,000,000.00 | 6.00 | 32,977,491.42 | | Nantong Emerging Industry Fund (Limited Partnership) | 10,000,000.00 | 4.98 | 19,857,805.45 | | Bank of Communications Co., Ltd. | 300,000.00 | 0.00 | 2,518,357.61 | | Jiangsu Youke Plant Protection Co., Ltd. | 435,000.00 | 29.00 | 6,666,166.68 | | Total | 107,048,285.00 | - | 132,544,856.88 | [(VI) Analysis of Major Controlled and Invested Companies](index=13&type=section&id=(VI)%20Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) The company's major controlled subsidiaries include Nantong Liyang Chemical, China San'ao Group, and Jiangsu Baoling Chemical, which play important roles in chemical product manufacturing and trade; Baoling Chemical is a controlled company with a 51.00% stake Major Subsidiaries and Invested Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (CNY 10,000) | Total Assets (CNY 10,000) | Net Assets (CNY 10,000) | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nantong Liyang Chemical Co., Ltd. | Subsidiary | Chemical Product Manufacturing | 8,000 | 36,374.16 | 20,707.86 | 24,267.03 | 2,310.60 | 2,018.92 | | Nantong Tianhong International Trade Co., Ltd. | Subsidiary | Chemical Product Trading | 100 | 14,042.91 | 3,956.26 | 5,777.33 | -14.87 | -42.53 | | China San'ao Group Co., Ltd. | Subsidiary | Sales of Chemical Products, International Trade, etc. | 672.32 | 19,372.95 | 5,307.98 | 18,924.21 | 44.96 | 37.43 | | Nantong Hongxin Chemical Co., Ltd. | Subsidiary | Production and Sales of Chemicals | 22,800 | 53,899.37 | -177.70 | 10,907.36 | -2,463.70 | -2,480.51 | | San'ao (Shanghai) Life Technology Co., Ltd. | Subsidiary | Sales of Chemical Products, Technical Services | 10,000 | 2,139.58 | 1,967.95 | 2,164.79 | -3.42 | -26.37 | | Jiangsu Baoling Chemical Co., Ltd. | Subsidiary | Chemical Product Manufacturing | 3,025.84 | 50,380.57 | 19,270.39 | 24,260.49 | 479.39 | 394.97 | | Lanzhou Dingda Technology Co., Ltd. | Invested Company | Production and Sales of Chemical Products | 24,976 | 20,441.11 | 14,339.21 | 2,700.62 | -1,295.74 | -1,281.69 | - Wholly-owned subsidiary China San'ao Group Co., Ltd. established a wholly-owned subsidiary, 3A USA LLC, in the United States at the end of 2018, primarily engaged in selling food and feed additives[44](index=44&type=chunk) - The company holds a **51.00%** equity stake in Jiangsu Baoling Chemical Co., Ltd[44](index=44&type=chunk) [V. Other Disclosures](index=15&type=section&id=V.%20Other%20Disclosures) The company faces multiple risks, including public misunderstanding of food additive products, the risk of losing enterprise income tax preferential policies due to tax policy changes, increased environmental costs from increasingly stringent environmental policies, safety production risks in the dangerous chemical production process, and market risks from market uncertainties [(I) Potential Risks](index=15&type=section&id=(I)%20Potential%20Risks) The company faces multiple risks, including public misunderstanding of food additive products, changes in tax policies, tightening environmental policies, safety production, and market uncertainties, which may adversely affect the company's operating performance and profitability - Risk of public misunderstanding of food additive products: Public confusion between food additives and illegal additives, or fear of excessive use, may affect the company's product sales[46](index=46&type=chunk)[47](index=47&type=chunk) - Tax policy change risk: As a high-tech enterprise, the company enjoys a 15% enterprise income tax preferential rate; if it cannot be re-certified in the future, it will be taxed at a 25% rate, affecting operating performance[48](index=48&type=chunk)[50](index=50&type=chunk) - Environmental risk: Chemical production involves "three wastes" emissions, and increasingly stringent environmental policies will increase treatment costs, affecting profitability[51](index=51&type=chunk) - Safety production risk: Some raw materials and semi-finished products are dangerous chemicals, posing accident risks that may affect normal production and operations[52](index=52&type=chunk) - Market risk: Although products are in inelastic demand, increasing uncertainties in recent years and market fluctuations may bring unpredictable impacts[53](index=53&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=17&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [I. Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Mr. Qi Zheng, an independent director, resigned due to the expiration of his term, and Mr. Zhao Weijian was elected as an independent director of the company's Eighth Board of Directors by the shareholders' meeting - Independent director Mr. Qi Zheng applied to resign from his position as an independent director of the company in May 2025 due to the expiration of his term[56](index=56&type=chunk) - Mr. Zhao Weijian was elected as an independent director of the company's Eighth Board of Directors at the company's first extraordinary general meeting in 2025[56](index=56&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=17&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's board of directors resolved that no profit distribution or capital reserve conversion to share capital will be carried out during the current reporting period - No profit distribution or capital reserve conversion to share capital will be carried out during the current reporting period[57](index=57&type=chunk) - The number of bonus shares, dividends, and conversion shares per 10 shares is 0[57](index=57&type=chunk) [III. Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact](index=17&type=section&id=III.%20Company%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures%20and%20Their%20Impact) The company's 2022 stock option and restricted stock incentive plan was terminated due to the failure to meet performance targets for the second vesting period, and the cancellation of stock options and repurchase and cancellation of restricted shares have been completed - The company terminated the implementation of the 2022 stock option and restricted stock incentive plan[58](index=58&type=chunk) - The cancellation of stock options and repurchase and cancellation of restricted shares under the 2022 equity incentive plan have been completed[58](index=58&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=18&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company and four major subsidiaries (Acetic Acid Chemical, Liyang Chemical, Hongxin Chemical, Baoling Chemical) are included in the list of enterprises required to disclose environmental information by law, with corresponding inquiry indexes provided - The company and 4 major subsidiaries are included in the list of enterprises required to disclose environmental information by law[60](index=60&type=chunk) - These include Acetic Acid Chemical, Liyang Chemical, Hongxin Chemical, and Baoling Chemical[60](index=60&type=chunk) [V. Specific Information on Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=18&type=section&id=V.%20Specific%20Information%20on%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20etc.) The company actively fulfills its social responsibilities, donating CNY 200,000 to the Nantong Development Zone Charity Federation in the first half of 2025, demonstrating its commitment to giving back to society - In the first half of 2025, the company donated **CNY 200,000** to the Nantong Development Zone Charity Federation[61](index=61&type=chunk) - The company has always been enthusiastic about public welfare and actively gives back to society[61](index=61&type=chunk) [Section V Significant Matters](index=19&type=section&id=Section%20V%20Significant%20Matters) [I. Fulfillment of Commitments](index=19&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's actual controllers, directors, senior management, and corporate shareholders have strictly fulfilled commitments regarding share lock-up, avoidance of horizontal competition, and share reduction, with no violations during the reporting period - Actual controllers Gu Qingquan, Qing Jiu, Ding Caifeng, Shuai Jianxin, Qian Jin, and Xue Jinquan committed that during their tenure as directors and senior management, they would not transfer more than **25%** of their total shares in the company annually[63](index=63&type=chunk) - Corporate shareholders Nantong Chan Kong and Xinyuan Investment, holding more than **5%** of the company's shares, committed to announcing any share reduction 3 trading days in advance, with the reduction price not lower than the issuer's audited net asset value per share of the previous year[63](index=63&type=chunk) - Actual controllers Gu Qingquan, Qing Jiu, Ding Caifeng, Shuai Jianxin, Qian Jin, and Xue Jinquan committed not to directly or indirectly engage in or participate in any business or activity that competes with Acetic Acid Chemical, both currently and in the future[63](index=63&type=chunk)[64](index=64&type=chunk) [IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller During the Reporting Period](index=20&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20Its%20Controlling%20Shareholder%2C%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 overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity[65](index=65&type=chunk) - There were no unfulfilled effective court judgments or overdue large debts[65](index=65&type=chunk) [XI. Significant Contracts and Their Performance](index=22&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Performance) This section discloses the company's significant guarantees performed and unperformed during the reporting period, primarily guarantees for subsidiaries, with the total guarantee amount accounting for 7.72% of the company's net assets [(II) Significant Guarantees Performed and Unperformed During the Reporting Period](index=22&type=section&id=(II)%20Significant%20Guarantees%20Performed%20and%20Unperformed%20During%20the%20Reporting%20Period) The company did not provide guarantees for entities other than its subsidiaries during the reporting period; the total amount of guarantees provided to subsidiaries was CNY 130.00 million, with a period-end guarantee balance of CNY 141.71 million, accounting for 7.72% of the company's net assets Company External Guarantees (Excluding Guarantees to Subsidiaries) | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Guarantee Amount Incurred During the Reporting Period (Excluding Guarantees to Subsidiaries) | 0 | | Total Guarantee Balance at Period-end (A) (Excluding Guarantees to Subsidiaries) | 0 | Company Guarantees to Subsidiaries | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Guarantee Amount Incurred for Subsidiaries During the Reporting Period | 13,000.00 | | Total Guarantee Balance for Subsidiaries at Period-end (B) | 14,170.55 | Company Total Guarantee Amount (Including Guarantees to Subsidiaries) | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Guarantee Amount (A+B) | 14,170.55 | | Proportion of Total Guarantee Amount to Company's Net Assets (%) | 7.72 | | Amount of Guarantees Provided for Shareholders, Actual Controllers, and Their Related Parties (C) | 0 | | Amount of Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 7,500.00 | | Amount of Total Guarantees Exceeding 50% of Net Assets (E) | 0 | | Total of the Above Three Guarantee Amounts (C+D+E) | 7,500.00 | [Section VI Share Changes and Shareholder Information](index=23&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) [I. Share Capital Changes](index=23&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital and share structure remained unchanged; however, after the reporting period, the company terminated its equity incentive plan due to unmet performance targets, repurchased and cancelled some restricted shares and stock options, leading to a reduction in total share capital and an impact on earnings per share and net assets per share [1. Table of Share Capital Changes](index=23&type=section&id=1.%20Table%20of%20Share%20Capital%20Changes) During the reporting period, the company's total share capital and share structure remained unchanged - During the reporting period, the company's total share capital and share structure remained unchanged[74](index=74&type=chunk) [3. Impact of Share Changes Occurring Between the End of the Reporting Period and the Disclosure Date of the Semi-Annual Report on Financial Indicators such as Earnings Per Share and Net Assets Per Share (if any)](index=23&type=section&id=3.%20Impact%20of%20Share%20Changes%20Occurring%20Between%20the%20End%20of%20the%20Reporting%20Period%20and%20the%20Disclosure%20Date%20of%20the%20Semi-Annual%20Report%20on%20Financial%20Indicators%20such%20as%20Earnings%20Per%20Share%20and%20Net%20Assets%20Per%20Share%20(if%20any)) Due to the failure to meet performance targets for the second vesting period of the 2022 equity incentive plan, the company terminated the plan, repurchased and cancelled 2,901,000 restricted shares, and cancelled an equal number of stock options, changing the total share capital from 207,381,000 shares to 204,480,000 shares, and adjusting basic earnings per share and weighted average net assets per share accordingly - The company's 2022 stock option and restricted stock incentive plan's second vesting period company-level performance targets were not met, leading to the cancellation of 1,934,000 stock options granted but not yet exercised by incentive recipients, and the repurchase and cancellation of 1,934,000 restricted shares granted but not yet vested by incentive recipients[75](index=75&type=chunk) - The company terminated the incentive plan, cancelling 967,000 stock options granted but not yet exercised for the third vesting period, and repurchasing and cancelling 967,000 restricted shares granted but not yet vested for the third vesting period[75](index=75&type=chunk) - After this repurchase and cancellation, the company's total share capital changed from **207,381,000 shares** to **204,480,000 shares**, with basic earnings per share attributable to ordinary shareholders of **CNY 0.0126/share** and weighted average net assets per share attributable to ordinary shareholders of **CNY 8.94/share**[75](index=75&type=chunk) [II. Shareholder Information](index=23&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the total number of ordinary shareholders was 13,402; among the top ten shareholders, Gu Qingquan was the largest shareholder with an 8.90% stake, and Nantong Xinyuan Investment Development Co., Ltd. and Nantong Industrial Holdings Group Co., Ltd. were state-owned corporate shareholders; multiple shareholders had concerted action relationships [(I) Total Number of Shareholders](index=23&type=section&id=(I)%20Total%20Number%20of%20Shareholders) As of the end of the reporting period, the total number of ordinary shareholders was 13,402, with no preferred shareholders whose voting rights had been restored - As of the end of the reporting period, the total number of ordinary shareholders was **13,402**[76](index=76&type=chunk) - As of the end of the reporting period, the total number of preferred shareholders whose voting rights had been restored was **0**[76](index=76&type=chunk) [(II) Shareholding of Top Ten Shareholders and Top Ten Circulating Shareholders (or Shareholders with Unlimited Sales Conditions) at the End of the Reporting Period](index=23&type=section&id=(II)%20Shareholding%20of%20Top%20Ten%20Shareholders%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Shareholders%20with%20Unlimited%20Sales%20Conditions)%20at%20the%20End%20of%20the%20Reporting%20Period) Among the company's top ten shareholders, Gu Qingquan held 18,459,700 shares, accounting for 8.90%, making him the largest shareholder; Nantong Xinyuan Investment Development Co., Ltd. and Nantong Industrial Holdings Group Co., Ltd. were state-owned corporate shareholders; multiple natural person shareholders had concerted action relationships, and Yang Meiyun entrusted her voting rights to Qing Jiu Shareholding of Top Ten Shareholders (Excluding Shares Lent Through Securities Lending) | Shareholder Name (Full Name) | Change During Reporting Period | Number of Shares Held at Period-end | Proportion (%) | Number of Restricted Shares Held | Pledge, Mark, or Freeze Status Share Status | Pledge, Mark, or Freeze Status Quantity | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gu Qingquan | 0 | 18,459,700 | 8.90 | 0 | None | 0 | Domestic Natural Person | | Nantong Xinyuan Investment Development Co., Ltd. | 0 | 17,777,392 | 8.57 | 0 | None | 0 | State-owned Legal Person | | Nantong Industrial Holdings Group Co., Ltd. | 0 | 15,893,729 | 7.66 | 0 | None | 0 | State-owned Legal Person | | Ding Caifeng | 0 | 12,395,598 | 5.98 | 0 | None | 0 | Domestic Natural Person | | Yang Meiyun | 0 | 8,306,593 | 4.01 | 0 | None | 0 | Domestic Natural Person | | Shuai Jianxin | 0 | 6,403,400 | 3.09 | 0 | None | 0 | Domestic Natural Person | | Qian Jin | 0 | 5,860,400 | 2.83 | 0 | None | 0 | Domestic Natural Person | | Xue Jinquan | 0 | 5,826,987 | 2.81 | 0 | None | 0 | Domestic Natural Person | | Qing Jiu | 0 | 4,091,307 | 1.97 | 0 | None | 0 | Domestic Natural Person | | Nantong Guotai Venture Capital Co., Ltd. | 0 | 3,842,000 | 1.85 | 0 | None | 0 | State-owned Legal Person | - Yang Meiyun signed a "Voting Rights Entrustment Agreement" with Mr. Qing Jiu, entrusting all voting rights corresponding to her **8,306,593 shares** to Mr. Qing Jiu[79](index=79&type=chunk) - Gu Qingquan, Qing Jiu, Ding Caifeng, Shuai Jianxin, Qian Jin, and Xue Jinquan are persons acting in concert; Yang Meiyun and Qing Jiu are persons acting in concert; Nantong Guotai Venture Capital Co., Ltd. is a controlled subsidiary of Nantong Industrial Holdings Group Co., Ltd[79](index=79&type=chunk) [III. Information on Directors, Supervisors, and Senior Management](index=25&type=section&id=III.%20Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section explains the changes in shareholdings of the company's directors, supervisors, and senior management, primarily due to the termination of the 2022 stock option and restricted stock incentive plan, resulting in the cancellation or repurchase and cancellation of granted but unexercised/unvested stock options and restricted shares [Other Explanations](index=25&type=section&id=Other%20Explanations) The company's 2022 stock option and restricted stock incentive plan was terminated due to unmet performance targets, resulting in the cancellation or repurchase and cancellation of granted stock options and restricted shares, totaling 2,901,000 stock options cancelled and 2,901,000 restricted shares repurchased and cancelled - The company's 2022 stock option and restricted stock incentive plan's second vesting period company-level performance targets were not met, leading to the cancellation of 1,934,000 stock options granted but not yet exercised by incentive recipients, and the repurchase and cancellation of 1,934,000 restricted shares granted but not yet vested[83](index=83&type=chunk) - The company terminated the incentive plan, cancelling 967,000 stock options granted but not yet exercised for the third vesting period, and repurchasing and cancelling 967,000 restricted shares granted but not yet vested for the third vesting period[83](index=83&type=chunk) - A total of **2,901,000 stock options** were cancelled, and **2,901,000 restricted shares** were repurchased and cancelled in this instance[83](index=83&type=chunk) [Section VII Bond-Related Information](index=26&type=section&id=Section%20VII%20Bond-Related%20Information) [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=26&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 - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[86](index=86&type=chunk) [II. Convertible Corporate Bonds](index=26&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - The company had no convertible corporate bonds[86](index=86&type=chunk) [Section VIII Financial Report](index=27&type=section&id=Section%20VIII%20Financial%20Report) [I. Audit Report](index=27&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [II. Financial Statements](index=27&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation [Consolidated Balance Sheet](index=27&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were CNY 3,459,406,528.08, an increase of 3.07% from the end of the previous year; among current assets, monetary funds decreased, while financial assets held for trading and accounts receivable financing increased; on the liability side, short-term borrowings and non-current liabilities due within one year increased significantly Consolidated Balance Sheet Key Data | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Monetary Funds | 444,977,884.90 | 658,162,888.55 | | Financial Assets Held for Trading | 673,962,137.86 | 470,610,917.70 | | Notes Receivable | 91,079,813.75 | 113,433,525.50 | | Accounts Receivable | 445,865,881.39 | 417,449,339.29 | | Accounts Receivable Financing | 124,081,453.50 | 86,693,079.59 | | Inventories | 315,740,199.23 | 252,436,349.54 | | Total Current Assets | 2,179,638,514.34 | 2,060,925,607.67 | | Fixed Assets | 862,752,299.04 | 892,099,178.37 | | Total Assets | 3,459,406,528.08 | 3,356,330,821.20 | | Short-term Borrowings | 208,000,000.00 | 97,000,000.00 | | Notes Payable | 416,487,528.78 | 305,848,903.98 | | Non-current Liabilities Due Within One Year | 253,368,244.37 | 162,061,439.58 | | Total Current Liabilities | 1,350,863,252.00 | 1,159,776,096.30 | | Total Liabilities | 1,529,951,970.14 | 1,438,950,953.60 | | Total Owners' Equity Attributable to Parent Company | 1,835,029,661.03 | 1,825,205,300.81 | | Total Owners' Equity | 1,929,454,557.94 | 1,917,379,867.60 | [Parent Company Balance Sheet](index=29&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were CNY 2,713,596,872.51, an increase of 3.70% from the end of the previous year; monetary funds decreased, while financial assets held for trading and accounts receivable increased; on the liability side, short-term borrowings and non-current liabilities due within one year increased significantly Parent Company Balance Sheet Key Data | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Monetary Funds | 253,395,741.60 | 442,321,538.14 | | Financial Assets Held for Trading | 673,962,137.86 | 470,610,917.70 | | Accounts Receivable | 283,344,252.35 | 264,935,917.43 | | Other Receivables | 397,112,945.05 | 320,354,561.39 | | Total Current Assets | 1,831,161,586.43 | 1,719,938,891.25 | | Long-term Equity Investments | 447,772,516.63 | 448,535,615.71 | | Total Assets | 2,713,596,872.51 | 2,616,689,905.55 | | Short-term Borrowings | 100,000,000.00 | - | | Notes Payable | 291,812,933.78 | 186,865,720.58 | | Non-current Liabilities Due Within One Year | 209,227,105.20 | 120,727,105.18 | | Total Current Liabilities | 789,029,850.15 | 606,311,495.65 | | Total Liabilities | 883,844,510.16 | 798,338,765.29 | | Total Owners' Equity | 1,829,752,362.35 | 1,818,351,140.26 | [Consolidated Income Statement](index=31&type=section&id=Consolidated%20Income%20Statement) In the first half of 2025, the company's consolidated total operating revenue was CNY 1,399,059,087.84, a year-on-year decrease of 6.49%; total profit and net profit both turned losses into profits, reaching CNY 9,784,364.85 and CNY 4,544,013.86 respectively; earnings per share were CNY 0.0126/share Consolidated Income Statement Key Data | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 1,399,059,087.84 | 1,496,090,420.34 | | Total Operating Costs | 1,375,763,980.30 | 1,500,872,220.61 | | Total Profit | 9,784,364.85 | -47,023,224.48 | | Net Profit | 4,544,013.86 | -41,457,986.03 | | Net Profit Attributable to Parent Company Shareholders | 2,608,664.22 | -44,222,320.27 | | Basic Earnings Per Share (CNY/share) | 0.0126 | -0.2116 | [Parent Company Income Statement](index=33&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2025, the parent company's operating revenue was CNY 666,116,461.69, a year-on-year decrease of 12.45%; total profit and net profit both turned losses into profits, reaching CNY 7,524,854.55 and CNY 6,288,948.25 respectively Parent Company Income Statement Key Data | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 666,116,461.69 | 760,864,901.47 | | Operating Profit | 4,998,432.88 | -27,981,474.65 | | Total Profit | 7,524,854.55 | -27,724,832.68 | | Net Profit | 6,288,948.25 | -22,167,887.65 | | Total Comprehensive Income | 6,276,504.35 | -22,173,622.72 | [Consolidated Cash Flow Statement](index=34&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, the company's net cash flow from operating activities was CNY -56,448,463.71, an improvement of 32.12% year-on-year; net cash flow from investment activities was CNY -235,393,593.10, mainly affected by increased cash management investments; net cash flow from financing activities was CNY 69,389,039.94, a year-on-year decrease of 60.33% Consolidated Cash Flow Statement Key Data | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -56,448,463.71 | -83,156,095.03 | | Net Cash Flow from Investment Activities | -235,393,593.10 | -61,009,154.36 | | Net Cash Flow from Financing Activities | 69,389,039.94 | 174,927,851.17 | | Net Increase in Cash and Cash Equivalents | -221,067,679.10 | 34,505,505.09 | | Cash and Cash Equivalents at Period-end | 420,632,378.13 | 920,404,580.61 | [Parent Company Cash Flow Statement](index=35&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 -36,118,003.64, an improvement year-on-year; net cash flow from investment activities was CNY -212,697,815.92, and net cash flow from financing activities was CNY 60,011,276.61 Parent Company Cash Flow Statement Key Data | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -36,118,003.64 | -116,731,889.25 | | Net Cash Flow from Investment Activities | -212,697,815.92 | 91,339,485.98 | | Net Cash Flow from Financing Activities | 60,011,276.61 | 179,310,557.24 | | Net Increase in Cash and Cash Equivalents | -188,787,006.01 | 154,947,584.39 | | Cash and Cash Equivalents at Period-end | 253,332,403.09 | 719,032,024.64 | [Consolidated Statement of Changes in Owners' Equity](index=37&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) As of June 30, 2025, the company's consolidated total owners' equity was CNY 1,929,454,557.94, an increase of CNY 12,074,690.34 from the beginning of the period; major changes include a decrease in share capital of CNY 2,901,000.00, a decrease in capital reserve of CNY 21,983,649.53, and an increase in net profit attributable to parent company owners of CNY 2,608,664.22 Consolidated Statement of Changes in Owners' Equity Key Data | Item | Balance as of January 1, 2025 (CNY) | Change in Current Period (Decrease indicated by "-") (CNY) | Balance as of June 30, 2025 (CNY) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 207,381,000.00 | -2,901,000.00 | 204,480,000.00 | | Capital Reserve | 436,685,767.90 | -21,983,649.53 | 414,702,118.37 | | Less: Treasury Stock | 28,545,840.00 | -28,545,840.00 | - | | Other Comprehensive Income | 13,024,354.86 | 322,290.33 | 13,346,645.19 | | Special Reserve | 15,137.08 | 3,232,215.20 | 3,247,352.28 | | Surplus Reserve | 105,141,957.03 | - | 105,141,957.03 | | Retained Earnings | 1,091,502,923.94 | 2,608,664.22 | 1,094,111,588.16 | | Total Owners' Equity Attributable to Parent Company | 1,825,205,300.81 | 9,824,360.22 | 1,835,029,661.03 | | Minority Interests | 92,174,566.79 | 2,250,330.12 | 94,424,896.91 | | Total Owners' Equity | 1,917,379,867.60 | 12,074,690.34 | 1,929,454,557.94 | [Parent Company Statement of Changes in Owners' Equity](index=39&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) As of June 30, 2025, the parent company's total owners' equity was CNY 1,829,752,362.35, an increase of CNY 11,401,222.09 from the beginning of the period; major changes include a decrease in share capital of CNY 2,901,000.00, a decrease in capital reserve of CNY 21,983,649.53, and an increase in retained earnings of CNY 6,288,948.25 Parent Company Statement of Changes in Owners' Equity Key Data | Item | Balance as of January 1, 2025 (CNY) | Change in Current Period (Decrease indicated by "-") (CNY) | Balance as of June 30, 2025 (CNY) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 207,381,000.00 | -2,901,000.00 | 204,480,000.00 | | Capital Reserve | 438,405,715.13 | -21,983,649.53 | 416,422,065.60 | | Less: Treasury Stock | 28,545,840.00 | -28,545,840.00 | - | | Other Comprehensive Income | 11,227,481.02 | -12,443.90 | 11,215,037.12 | | Special Reserve | - | 1,463,527.27 | 1,463,527.27 | | Surplus Reserve | 105,141,957.03 | - | 105,141,957.03 | | Retained Earnings | 1,084,740,827.08 | 6,288,948.25 | 1,091,029,775.33 | | Total Owners' Equity | 1,818,351,140.26 | 11,401,222.09 | 1,829,752,362.35 | [III. Company Profile](index=42&type=section&id=III.%20Company%20Profile) Nantong Acetic Acid Chemical Co., Ltd. was established on May 28, 2001, and listed on the Shanghai Stock Exchange on May 18, 2015; the company primarily engages in R&D, production, and sales of high-end specialized fine chemicals, mainly acetic acid and pyridine derivatives, with products covering food and feed additives, pharmaceutical and pesticide intermediates, etc.; as of June 30, 2025, the company owns five wholly-owned subsidiaries and one controlled company - Nantong Acetic Acid Chemical Co., Ltd. was established on May 28, 2001, and listed on the Shanghai Stock Exchange on May 18, 2015[115](index=115&type=chunk)[116](index=116&type=chunk) - The company primarily engages in the research, development, production, and sales of high-end specialized fine chemicals, mainly acetic acid and pyridine derivatives, with product categories including food and feed additives, pharmaceutical and pesticide intermediates, pigment/dye intermediates, and other organic compounds[117](index=117&type=chunk) - As of June 30, 2025, the company owns five wholly-owned subsidiaries and one controlled company, Jiangsu Baoling Chemical Co., Ltd. (holding **51.00%** equity)[117](index=117&type=chunk) [IV. Basis of Financial Statement Preparation](index=43&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, and it has determined policies for fixed asset depreciation, intangible asset amortization, capitalization conditions for R&D expenses, and revenue recognition based on its own production and operation characteristics - The company's financial statements are prepared on a going concern basis[120](index=120&type=chunk) - The company determines policies for fixed asset depreciation, intangible asset amortization, capitalization conditions for R&D expenses, and revenue recognition based on its own production and operation characteristics[119](index=119&type=chunk)[121](index=121&type=chunk) [V. Significant Accounting Policies and Estimates](index=43&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section elaborates on the company's statement of compliance with enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, inventories, contract assets, assets held for sale, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, and other significant accounting policies and estimates - The financial statements prepared by the company comply with enterprise accounting standards and truly and completely reflect its financial position[122](index=122&type=chunk) - Financial assets are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[143](index=143&type=chunk) - The company performs impairment accounting for notes receivable, accounts receivable, contract assets, etc., based on expected credit losses[152](index=152&type=chunk) - Revenue is recognized when the customer obtains control of the related goods or services, and is classified as being satisfied over time or at a point in time based on the type of performance obligation[205](index=205&type=chunk) - Government grants are recognized when the attached conditions are met and the grants can be received, and are classified as asset-related or income-related[210](index=210&type=chunk) - Share-based payments are classified as equity-settled or cash-settled, with detailed explanations of fair value determination, estimation of exercisable quantities, and accounting treatment methods[201](index=201&type=chunk) [VI. Taxation](index=74&type=section&id=VI.%20Taxation) The company's main taxes include value-added tax, urban maintenance and construction tax, enterprise income tax, and education surcharge; the company and its subsidiaries enjoy a 15% enterprise income tax preferential rate as high-tech enterprises, Shanghai San'ao enjoys a 20% enterprise income tax preferential rate as a small-profit enterprise, and the company and Liyang Chemical enjoy a 5% value-added tax additional deduction policy for advanced manufacturing enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-added Tax | Taxable Income | 13%, 9%, 5% | | Urban Maintenance and Construction Tax | Payable Turnover Tax | 7%, 5% | | Enterprise Income Tax | Taxable Income | 25%, 16.5% | | Education Surcharge | Payable Turnover Tax | 3%, 2% | Taxable Entities with Different Enterprise Income Tax Rates | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | The Company | 15 | | Liyang Chemical | 15 | | San'ao Company | 16.5 | | Shanghai San'ao | 20 | - The company and Liyang Chemical, as high-tech enterprises, are subject to enterprise income tax at a rate of **15%**[227](index=227&type=chunk)[228](index=228&type=chunk) - Subsidiary Shanghai San'ao is a small-profit enterprise, enjoying a policy of calculating taxable income at **25%** and paying enterprise income tax at a **20%** rate[228](index=228&type=chunk) - The company and subsidiary Liyang Chemical enjoy a **5%** additional deduction policy for value-added tax for advanced manufacturing enterprises[229](index=229&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=75&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, period-beginning balances, and changes and reasons for each item in the consolidated financial statements, covering assets, liabilities, owners' equity, revenue, costs, expenses, and profits, providing specific data support for understanding the company's financial position and operating results - Monetary funds at period-end amounted to **CNY 444,977,884.90**, of which restricted monetary funds were **CNY 24,345,506.77**, mainly for bank acceptance bill deposits[230](index=230&type=chunk)[231](index=231&type=chunk) - Financial assets held for trading at period-end amounted to **CNY 673,962,137.86**, an increase of **43.21%** from the beginning of the period, mainly due to an increase in cash management investment balance at period-end[38](index=38&type=chunk)[233](index=233&type=chunk) - Accounts receivable at period-end had a book value of **CNY 445,865,881.39**, with **99.75%** of the aging within 1 year[239](index=239&type=chunk)[241](index=241&type=chunk) - Inventories at period-end had a book value of **CNY 315,740,199.23**, an increase of **25.00%** from the beginning of the period, mainly including raw materials, work in progress, finished goods, and semi-finished products[263](index=263&type=chunk) - Fixed assets at period-end had a book value of **CNY 862,642,714.97**, with buildings and machinery and equipment accounting for a larger proportion[274](index=274&type=chunk) - Construction in progress at period-end amounted to **CNY 64,322,721.92**, with major projects including tank farm relocation, upgrade and renovation projects, and cold storage construction projects[285](index=285&type=chunk) - Short-term borrowings at period-end amounted to **CNY 208,000,000.00**, an increase of **114.43%** from the beginning of the period, mainly due to an increase in current portion of long-term borrowings due within one year at period-end[38](index=38&type=chunk)[309](index=309&type=chunk) - Employee benefits payable at period-end amounted to **CNY 12,236,633.67**, a decrease of **57.81%** from the beginning of the period, mainly due to the payment of year-end performance bonuses accrued last year in the current period[38](index=38&type=chunk)[317](index=317&type=chunk) - Operating revenue for the current period was **CNY 1,399,059,087.84**, a year-on-year decrease of **6.49%**; operating costs were **CNY 1,221,592,073.88**, a year-on-year decrease of **9.76%**[363](index=363&type=chunk) - Financial expenses for the current period amounted to **CNY 5,894,012.63**, a significant increase from **CNY -3,617,557.39** in the prior period, mainly due to foreign currency exchange rate fluctuations, reduced exchange gains, and decreased interest income[35](index=35&type=chunk)[370](index=370&type=chunk) - Net cash flow from operating activities was **CNY -56,448,463.71**, an improvement from **CNY -83,156,095.03** in the prior period, mainly due to a year-on-year decrease in cash paid for goods purchased in the current period[35](index=35&type=chunk)[397](index=397&type=chunk) [VIII. R&D Expenses](index=122&type=section&id=VIII.%20R%26D%20Expenses) This section lists the company's R&D expenses for the reporting period, totaling CNY 46,827,383.40, primarily composed of direct input and personnel costs, with all expenses being expensed R&D expenditures R&D Expenses by Nature of Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Direct Input | 26,343,927.01 | 25,425,338.09 | | Personnel Costs | 16,671,887.26 | 15,638,103.46 | | Depreciation and Long-term Deferred Expenses | 1,393,134.26 | 1,124,990.60 | | External Research and Development Fees | - | 1,623,007.85 | | Design Fees | 1,552,836.10 | 980,081.55 | | Equipment Debugging and Testing Fees | 772,328.79 | 155,051.28 | | Other | 93,269.98 | 165,517.08 | | Total | 46,827,383.40 | 45,112,089.91 | | Of which: Expensed R&D Expenditures | 46,827,383.40 | 45,112,089.91 | | Capitalized R&D Expenditures | - | - | [IX. Changes in Consolidation Scope](index=123&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) Dur