[Definitions](index=4&type=section&id=Section%201%20Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section provides definitions for key terms used in the report, covering company names, shareholders, actual controllers, the reporting period, and specialized terms related to membrane technology and water treatment processes - The Company refers to Suntar Membrane Technology Co, Ltd, its predecessors, and all subsidiaries[11](index=11&type=chunk) - The reporting period is from January 1, 2025, to June 30, 2025[11](index=11&type=chunk) - The actual controllers are the couple LAN WEIGUANG and CHEN NI[11](index=11&type=chunk) - Membrane technology includes separation processes such as microfiltration, ultrafiltration, nanofiltration, and reverse osmosis, as well as water treatment processes like MBR membrane bioreactors[12](index=12&type=chunk) - Business models include BOT (Build-Operate-Transfer), TOT (Transfer-Operate-Transfer), and EPC (Engineering, Procurement, and Construction)[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Basic Information](index=7&type=section&id=I.%20Company%20Basic%20Information) This section outlines the company's basic information, including its names, legal representative, addresses, and website, noting the relocation of its registered address from Xiamen, Fujian to Yan'an, Shaanxi in September 2018 - The company's Chinese name is 三达膜环境技术股份有限公司, with the short name 三达膜[15](index=15&type=chunk) - The legal representative is CHEN NI[15](index=15&type=chunk) - The company's registered address was relocated from Xiamen, Fujian to Yan'an, Shaanxi in September 2018[15](index=15&type=chunk) [Contact Persons and Methods](index=7&type=section&id=II.%20Contact%20Persons%20and%20Methods) This section provides the contact details for the company's Board Secretary (domestic information disclosure representative) and Securities Affairs Representative - The Board Secretary is Zhang Jingxiao, and the Securities Affairs Representative is Huang Jianting[16](index=16&type=chunk) - The company's official email address is ir@suntar.com[16](index=16&type=chunk) [Information Disclosure and Report Availability](index=7&type=section&id=III.%20Information%20Disclosure%20and%20Report%20Availability) This section specifies the designated newspaper and website for information disclosure and the location where the semi-annual report is available - The company's designated information disclosure newspaper is the Shanghai Securities News, and the website is www.sse.com.cn[17](index=17&type=chunk) - The report is available at the Board of Directors' office[17](index=17&type=chunk) [Company Stock/Depositary Receipt Profile](index=7&type=section&id=IV.%20Company%20Stock/Depositary%20Receipt%20Profile) This section briefly introduces the company's stock information, which is listed as A-shares on the STAR Market of the Shanghai Stock Exchange - The company's stock is listed as A-shares on the STAR Market of the Shanghai Stock Exchange[18](index=18&type=chunk) - The stock short name is 三达膜 (Suntar Membrane), and the stock code is 688101[18](index=18&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company achieved steady growth in revenue and net profit, with significant increases in earnings per share and net cash flow from operating activities Key Accounting Data (Jan-Jun 2025 vs Prior Year Period) | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Change vs Prior Year Period (%) | | :----------------------------------------------------------- | :------------------------------- | :----------------------- | :------------------------------ | | Operating Revenue | 717,072,359.63 | 673,106,487.63 | 6.53 | | Total Profit | 228,946,724.34 | 187,359,266.04 | 22.20 | | Net Profit Attributable to Shareholders | 195,236,430.79 | 160,839,087.27 | 21.39 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 180,049,615.16 | 143,736,843.21 | 25.26 | | Net Cash Flow from Operating Activities | 92,784,190.62 | 87,725,200.18 | 5.77 | | **Current Period-End vs Prior Year-End** | | | | | Net Assets Attributable to Shareholders | 4,243,269,112.48 | 4,047,350,773.26 | 4.84 | | Total Assets | 6,148,608,153.76 | 6,121,583,989.79 | 0.44 | Key Financial Indicators (Jan-Jun 2025 vs Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change vs Prior Year Period | | :----------------------------------------------------------- | :------------------------- | :---------------- | :-------------------------- | | Basic Earnings Per Share (Yuan/Share) | 0.59 | 0.48 | 22.92% | | Diluted Earnings Per Share (Yuan/Share) | 0.59 | 0.48 | 22.92% | | Basic EPS (Excluding Non-recurring Items) (Yuan/Share) | 0.54 | 0.43 | 25.58% | | Weighted Average Return on Equity (%) | 4.71 | 4.14 | Increase of 0.57 ppt | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 4.34 | 3.70 | Increase of 0.64 ppt | | R&D Investment as a Percentage of Operating Revenue (%) | 4.20 | 4.44 | Decrease of 0.24 ppt | - The increase in net cash flow from operating activities was primarily due to an increase in cash received from the sale of goods and provision of services compared to the same period last year[21](index=21&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=VIII.%20Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) This section details the non-recurring profit and loss items and their amounts for the reporting period, totaling 15,186,815.63 Yuan Non-recurring Profit and Loss Items and Amounts | Non-recurring Profit and Loss Item | Amount (Yuan) | | :----------------------------------------------------------- | :------------ | | Gain/Loss on Disposal of Non-current Assets | 4,316,623.76 | | Government Grants Recognized in Current Profit or Loss | 2,653,488.69 | | Fair Value Changes and Disposal Gains/Losses on Financial Assets and Liabilities Held by Non-financial Enterprises | 10,007,989.47 | | Reversal of Impairment Provision for Individually Tested Accounts Receivable | 1,800,000.00 | | Other Non-operating Income and Expenses | -298,079.42 | | Less: Income Tax Impact | 3,292,877.75 | | Minority Interest Impact (After Tax) | 329.12 | | Total | 15,186,815.63 | [Management Discussion and Analysis](index=10&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [Industry and Main Business Overview During the Reporting Period](index=10&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview%20During%20the%20Reporting%20Period) The company has established a complete membrane industry chain and focuses on membrane technology applications and water investment operations, achieving strong performance in the new energy and bio-fermentation sectors [Main Business, Products, or Services](index=10&type=section&id=(I)%20Main%20Business,%20Products,%20or%20Services) The company's main business includes membrane technology applications and water investment operations, with core intellectual property in various membrane materials and equipment - The company's main businesses include membrane technology applications (industrial material separation, membrane-based water treatment, environmental engineering, spare parts, and residential water purifiers) and water investment operations (municipal wastewater treatment)[26](index=26&type=chunk) - The company holds core proprietary intellectual property and a leading industry position in membrane materials and equipment such as nanofiltration cores, ceramic membranes, hollow fiber membranes, MBR, spiral-wound membranes, and black gold membranes (graphene membranes)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The company's residential water purification equipment utilizes the fifth-generation Nanofiltration 5.0 technology, featuring core advantages such as no electricity consumption, zero wastewater, and mineral retention[31](index=31&type=chunk) [Main Business Models](index=12&type=section&id=(II)%20Main%20Business%20Models) The company develops membrane application processes with a goal-oriented approach, operating through customized solutions, strategic procurement, in-house production, and a robust R&D system - **Profit Model**: Revenue is generated by providing integrated solutions and spare parts sales in membrane technology applications, and through service fees from EPC, BOT, BT, and TOT models in water investment operations[34](index=34&type=chunk) - **Procurement Model**: Annual strategic cooperation agreements are signed with well-known manufacturers for regular materials, while new materials and specialized equipment undergo supplier approval and bidding processes[35](index=35&type=chunk) - **Production Model**: The company primarily produces membrane materials and components in-house, with non-core processes outsourced and system integration performed on-site[36](index=36&type=chunk) - **R&D Model**: The "RDPA" R&D system, based on a "goal-oriented, reverse thinking" principle, leverages a postdoctoral research station and engineering technology center to foster industry-university-research collaboration[38](index=38&type=chunk)[39](index=39&type=chunk) [Industry Landscape](index=13&type=section&id=(III)%20Industry%20Landscape) The membrane technology application industry is a high-tech sector with strong market demand and high technical barriers, influenced by economic cycles and environmental policies, where the company holds a leading position - The membrane technology application industry is a high-tech sector with **strong market demand and high technical barriers**, expected to maintain high gross profit margins[42](index=42&type=chunk)[43](index=43&type=chunk) - Industry development is influenced by national economic performance, industrial fixed asset investment, and environmental policies, exhibiting regional and seasonal characteristics[42](index=42&type=chunk) - The company is a pioneer in China's membrane technology development and application field, holding a **leading domestic position** in industrial material separation and membrane-based water treatment[44](index=44&type=chunk)[45](index=45&type=chunk) - Future industry trends include advancing application levels, an increasingly complete industry chain, high-efficiency low-carbon water treatment membrane technology, and continuous optimization of separation membrane materials and product structures[48](index=48&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) China Water Treatment Membrane Market Size and Competitive Landscape (2024) | Metric | Data | | :--- | :--- | | Market Size | 7.35 billion RMB | | Year-on-Year Growth | 1% | | Estimated 2025 Market Size | Approx. 7.5 billion RMB | | Domestic Enterprise Market Share | 78% | | Foreign Enterprise Market Share | 10% | | Joint Venture Market Share | 12% | | Municipal Wastewater Market Size | 1.55 billion RMB (21% share), YoY growth 6.5% | | Industrial-Chemical Market Size | 1.34 billion RMB (18% share), growth rate 7.8% | | Industrial-Power Market Size | 1.06 billion RMB (14% share), growth rate 8.2% | [Discussion and Analysis of Operating Performance](index=16&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) The company established a vision to become a leading global membrane technology company, achieving strong performance in new energy and bio-fermentation sectors and seeing steady growth in revenue and net profit - The company's strategic vision is to "become a leading global membrane technology company," having already formed a complete membrane industry chain[52](index=52&type=chunk) - **Strong performance was achieved in market expansion** for the new energy and bio-fermentation industries, further consolidating its market position in lithium extraction from salt lakes with orders from key clients[53](index=53&type=chunk) - The core product, ceramic membranes, is in high demand, and the company plans to further expand its production capacity[53](index=53&type=chunk) - The company is leading a joint R&D effort for PEM hydrogen production equipment with Xiamen University's Jiageng Laboratory, which was selected for a future technology project by the Xiamen Science and Technology Bureau[53](index=53&type=chunk) - The Taonan investment project in Jilin Province has commenced operations, leading to a steady increase in water services operating income[53](index=53&type=chunk) Key Operating Results During the Reporting Period | Metric | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 717.07 million Yuan | Increase 6.53% | | Net Profit Attributable to Shareholders | - | Increase 21.39% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 180.05 million Yuan | Increase 25.26% | | Net Cash Flow from Operating Activities | 180.05 million Yuan | Increase 36.31 million Yuan | [Analysis of Core Competitiveness During the Reporting Period](index=16&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness lies in its technological advantages across the full membrane industry chain, strong R&D capabilities, and extensive project experience, establishing its authoritative position - The company's core competitiveness includes technological advantages in membrane materials, components, and equipment, such as ceramic membranes with superior strength, nanofiltration cores that solve selective separation challenges, and high-performance hollow fiber membranes[56](index=56&type=chunk)[57](index=57&type=chunk) - **Significant R&D and continuous innovation advantages** are supported by a postdoctoral research station and the Fujian Provincial Membrane Separation Engineering Technology Center, forming a core technology portfolio[58](index=58&type=chunk)[62](index=62&type=chunk) - The company has accumulated extensive project implementation experience in various industrial sub-sectors, including pharmaceuticals, biochemicals, food and beverage, and petrochemicals, providing a strong advantage in membrane application technology[59](index=59&type=chunk) - The company's business covers the entire membrane industry chain from materials to applications and provides high-quality comprehensive services in residential, commercial, and municipal water treatment[59](index=59&type=chunk)[60](index=60&type=chunk) - During the reporting period, the company and its subsidiaries applied for **14 patents** (4 invention, 10 utility model) and were granted **7 patents** (2 invention, 5 utility model)[65](index=65&type=chunk) R&D Investment (Jan-Jun 2025 vs Prior Year Period) | Metric | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 30,140,208.25 | 29,877,401.58 | 0.88 | | Total R&D Investment | 30,140,208.25 | 29,877,401.58 | 0.88 | | R&D Investment as a Percentage of Operating Revenue (%) | 4.20 | 4.44 | Decrease of 0.24 ppt | R&D Personnel (Jan-Jun 2025 vs Prior Year Period) | Metric | Current Period | Prior Year Period | | :--- | :--- | :--- | | Number of R&D Personnel | 196 | 203 | | R&D Personnel as a Percentage of Total Employees (%) | 16.60 | 17.45 | | Total R&D Personnel Compensation (Yuan) | 20,175,186.98 | 19,607,254.44 | | Average R&D Personnel Compensation (Yuan) | 102,934.63 | 96,587.46 | [Risk Factors](index=25&type=section&id=IV.%20Risk%20Factors) The company faces multiple risks including technology iteration, R&D failure, accounts receivable collection, customer concentration, market competition, macroeconomic changes, and international trade friction - **Core Competitiveness Risks**: Risks of technology upgrades and R&D failure could lead to products not meeting market demand or R&D investments not achieving expected returns[79](index=79&type=chunk) - **Operational Risks**: Slow collection of accounts receivable, particularly in the water investment business affected by local government finances; significant changes in major customers could lead to performance volatility; and challenges in new market development[80](index=80&type=chunk)[81](index=81&type=chunk) - **Industry Risks**: Intensified competition in the domestic membrane technology market with the entry of international firms; increased capital inflow and competition in the water investment sector; and potential government defaults adversely affecting water projects[82](index=82&type=chunk) - **Macro-environmental Risks**: Changes in macroeconomic conditions and environmental policies may reduce customer orders; international trade friction could impact raw material imports and product exports; and exchange rate fluctuations may affect operating results[83](index=83&type=chunk)[84](index=84&type=chunk) - **Other Significant Risks**: The company's relocation to Yan'an may pose challenges in recruiting R&D talent; investment income from associate company Shandong Tianli Pharmaceutical is subject to market price volatility[86](index=86&type=chunk) [Main Operating Activities During the Reporting Period](index=27&type=section&id=V.%20Main%20Operating%20Activities%20During%20the%20Reporting%20Period) The company's revenue from membrane technology applications and water investment operations grew steadily, driving significant increases in net profit and earnings per share Key Operating Results During the Reporting Period | Metric | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 717.07 million Yuan | Increase 6.53% | | Net Profit Attributable to Shareholders | - | Increase 21.39% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 180.05 million Yuan | Increase 25.26% | | Basic Earnings Per Share | - | Increase 22.92% | | Basic EPS (Excluding Non-recurring Items) | - | Increase 25.58% | | Net Cash Flow from Operating Activities | 180.05 million Yuan | Increase 36.31 million Yuan | - The increase in net cash flow from operating activities was primarily due to an increase in cash received from the sale of goods and provision of services compared to the same period last year[87](index=87&type=chunk) [Analysis of Main Business](index=27&type=section&id=(IV)%20Analysis%20of%20Main%20Business) During the period, both main business revenue and costs increased, while financial expenses decreased due to higher interest income and lower interest expenses Analysis of Changes in Financial Statement Items (Jan-Jun 2025 vs Prior Year Period) | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 717,072,359.63 | 673,106,487.63 | 6.53 | | Operating Costs | 424,815,085.11 | 419,131,720.95 | 1.36 | | Selling Expenses | 18,697,931.99 | 17,277,726.63 | 8.22 | | Administrative Expenses | 26,638,489.80 | 25,674,686.82 | 3.75 | | Financial Expenses | 10,378,738.24 | 11,992,933.44 | -13.46 | | R&D Expenses | 30,140,208.25 | 29,877,401.58 | 0.88 | | Net Cash Flow from Operating Activities | 92,784,190.62 | 87,725,200.18 | 5.77 | | Net Cash Flow from Investing Activities | -213,936,469.68 | -88,990,958.86 | N/A | | Net Cash Flow from Financing Activities | -12,234,379.14 | -18,236,348.84 | N/A | - The growth in operating revenue was mainly due to the steady increase in income from membrane technology applications and water investment operations[88](index=88&type=chunk) - The decrease in financial expenses was primarily due to an increase in interest income and a simultaneous decrease in interest expenses[89](index=89&type=chunk) - The decrease in net cash flow from investing activities was mainly due to an increase in cash paid for bank wealth management products compared to the previous year[89](index=89&type=chunk) [Analysis of Assets and Liabilities](index=29&type=section&id=(VI)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, total assets and net assets attributable to shareholders both increased, with notable changes in trading financial assets, prepayments, and various payables Changes in Assets and Liabilities (Period-End vs Beginning of Period) | Item | Current Period-End (Yuan) | % of Total Assets | Prior Year-End (Yuan) | % of Total Assets | Change vs Prior Year-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 477,723,923.55 | 7.77 | 571,331,157.05 | 9.33 | -16.38 | | Trading Financial Assets | 1,137,767,153.99 | 18.50 | 949,749,527.52 | 15.51 | 19.80 | | Notes Receivable | 65,954,829.83 | 1.07 | 97,643,414.77 | 1.60 | -32.45 | | Receivables Financing | 13,440,419.23 | 0.22 | 101,651,104.74 | 1.66 | -86.78 | | Prepayments | 53,836,700.98 | 0.88 | 31,443,646.71 | 0.51 | 71.22 | | Other Receivables | 32,748,363.92 | 0.53 | 13,793,472.69 | 0.23 | 137.42 | | Employee Benefits Payable | 11,468,855.36 | 0.19 | 28,186,409.10 | 0.46 | -59.31 | | Notes Payable | 30,148,898.75 | 0.49 | 40,819,667.79 | 0.67 | -26.14 | | Accounts Payable | 427,356,441.05 | 6.95 | 517,514,674.40 | 8.45 | -17.42 | | Contract Liabilities | 755,389,280.34 | 12.29 | 778,856,311.78 | 12.72 | -3.01 | - The decrease in notes receivable and receivables financing was mainly due to a reduction in bank acceptance bills receivable at the end of the period[92](index=92&type=chunk) - The increase in prepayments was primarily due to an increase in orders on hand at the period-end, leading to higher advance payments to suppliers[92](index=92&type=chunk) - The increase in other receivables was mainly due to the newly added receivable for the asset disposal of the Dongliao County Wastewater Treatment Plant[92](index=92&type=chunk) - The decrease in employee benefits payable was mainly because the year-end bonuses from the previous year had been distributed[93](index=93&type=chunk) - Overseas assets amounted to **122,224,394.77 Yuan**, accounting for **1.99%** of total assets[94](index=94&type=chunk) Major Restricted Assets at Period-End | Item | Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 61,819,295.54 | Loan deposits, letter of guarantee deposits, pledge deposits, frozen bank accounts, etc. | | Accounts Receivable | 5,259,960.00 | Wastewater treatment fee collection rights used as collateral for long-term loans | | Fixed Assets | 25,846,899.22 | Collateral for long-term loans | | Notes Receivable | 29,593,918.62 | Endorsed but not derecognized notes receivable | | Total | 122,520,073.38 | / | [Investment Status Analysis](index=31&type=section&id=(VII)%20Investment%20Status%20Analysis) The period-end balance of financial assets measured at fair value increased, primarily composed of trading financial assets and receivables financing Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Current Period Fair Value Change (Yuan) | Current Period Purchases (Yuan) | Current Period Sales/Redemptions (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 949,749,527.52 | 4,581,365.11 | 1,029,642,966.67 | 846,581,472.21 | 1,137,767,153.99 | | Receivables Financing | 101,651,104.74 | - | - | - | 13,440,419.23 | | Other Non-current Financial Assets | 499,349.90 | - | - | - | 499,349.90 | | Total | 1,051,899,982.16 | 4,581,365.11 | 1,029,642,966.67 | 846,581,472.21 | 1,151,706,923.12 | [Analysis of Major Subsidiaries and Investees](index=33&type=section&id=(IX)%20Analysis%20of%20Major%20Subsidiaries%20and%20Investees) This section analyzes the financial status of the main subsidiary, Suntar Membrane Technology (Xiamen), and key associate, Shandong Tianli Pharmaceutical, noting the deregistration of a non-material subsidiary Financial Information of Major Subsidiaries and Investees | Company Name | Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suntar Membrane Technology (Xiamen) Co., Ltd. | Subsidiary | Design, manufacturing, installation of membrane materials, equipment, and related technical consulting services | 81,050,000.00 | 1,307,697,100.75 | 519,043,883.00 | 378,727,521.88 | 120,601,242.25 | 103,944,864.84 | | Shandong Tianli Pharmaceutical Co., Ltd. | Associate | Production and sales of sorbitol, mannitol, glucose, and vitamin C | 203,172,500.00 | 2,699,148,229.44 | 1,861,513,529.65 | 1,632,561,840.21 | 142,826,512.22 | 100,396,671.41 | - During the reporting period, the company deregistered Suntar Environmental Technology (Shandong) Co., Ltd., which had no significant impact on the company's overall production, operation, and performance[102](index=102&type=chunk) [Corporate Governance, Environment, and Society](index=34&type=section&id=Section%204%20Corporate%20Governance,%20Environment,%20and%20Society) [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=34&type=section&id=I.%20Changes%20in%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) No changes occurred among the company's directors, supervisors, senior management, or core technical personnel during the reporting period - During the reporting period, there were **no changes** in the company's directors, supervisors, senior management, and core technical personnel[105](index=105&type=chunk) - The criteria for identifying core technical personnel include extensive work experience or high academic qualifications matching the company's business, holding important R&D positions, and leading the development of multiple core technologies and patent applications[105](index=105&type=chunk) [Profit Distribution or Capitalization of Capital Reserve Plan](index=34&type=section&id=II.%20Profit%20Distribution%20or%20Capitalization%20of%20Capital%20Reserve%20Plan) The company does not plan to distribute profits or capitalize its capital reserve for the semi-annual period - The company's semi-annual profit distribution or capitalization of capital reserve plan is "None"[106](index=106&type=chunk) [Environmental Information of Listed Companies and Subsidiaries Subject to Mandatory Disclosure](index=34&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Subsidiaries%20Subject%20to%20Mandatory%20Disclosure) A total of 25 of the company's subsidiaries, primarily water companies, are included in the list of enterprises subject to mandatory environmental information disclosure - A total of **25** of the company's subsidiaries are included in the list of enterprises subject to mandatory environmental information disclosure[108](index=108&type=chunk) - These subsidiaries are mainly located in provinces such as Shandong, Jilin, Liaoning, Hubei, Jiangxi, Anhui, Fujian, and Henan, with their business nature primarily being water operations[108](index=108&type=chunk)[109](index=109&type=chunk) [Significant Matters](index=37&type=section&id=Section%205%20Significant%20Matters) [Fulfillment of Commitments](index=37&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's controlling shareholders, actual controllers, directors, and other key personnel have strictly fulfilled all commitments made during the initial public offering - The controlling shareholder, actual controllers, directors, senior management, and core technical personnel have all strictly fulfilled their share lock-up commitments[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - The controlling shareholder and shareholders with over 5% ownership have committed to a long-term positive outlook on the company's development and will strictly adhere to share reduction regulations, with the reduction price not being lower than the issue price[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - The company, its controlling shareholder, directors, and senior management have committed to fulfilling repurchase or share increase obligations when the stock price stabilization plan is triggered[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - The company and its controlling shareholder and actual controllers have committed to distributing profits in strict accordance with the articles of association and dividend return plan[117](index=117&type=chunk) - The company's controlling shareholder, actual controllers, shareholders with over 5% ownership, and directors, supervisors, and senior management have committed to avoiding horizontal competition and reducing related-party transactions[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Major Litigation and Arbitration Matters](index=47&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) The company is involved in several major litigation and arbitration cases, including a significant contract dispute with Sunresin New Materials where the company has appealed an unfavorable first-instance judgment - In the contract dispute with Sunresin New Materials, Sunresin demanded payment of **58,611,513.85 Yuan** from the company; the company filed a counterclaim, but the first-instance judgment ordered the company to pay **47,440,000 Yuan** plus damages and fees and dismissed the counterclaim, a decision which the company has appealed[122](index=122&type=chunk)[123](index=123&type=chunk) - A court ruled against the compulsory execution of a **320,000 Yuan** administrative fine against the company's subsidiary, Baicheng Suntar Water Co, Ltd[124](index=124&type=chunk) - Several construction contract disputes are ongoing, with some settled and withdrawn, involving amounts ranging from hundreds of thousands to several million Yuan[126](index=126&type=chunk)[127](index=127&type=chunk) [Major Related-Party Transactions](index=51&type=section&id=X.%20Major%20Related-Party%20Transactions) The company's routine related-party transactions for 2025 were pre-approved, and the actual amounts incurred during the reporting period remained within the estimated limits - The company's estimated routine related-party transaction amounts for the 2025 fiscal year were approved in November 2024[130](index=130&type=chunk) Routine Related-Party Transaction Amounts for 2025 | Transaction Category | Related Party | Estimated Amount for 2025 (10k Yuan) | Amount Incurred in Reporting Period (10k Yuan) | | :--- | :--- | :--- | :--- | | Sales of products/goods to related parties | Shandong Tianli Pharmaceutical Co., Ltd. | 2,000.00 | 911.09 | | Purchases of products/goods from related parties | Xiamen Dalan Technology Co., Ltd. | 30.00 | 5.22 | | Leasing of factory/office space from related parties | Suntar Membrane Sci-tech Park Development (Xiamen) Co., Ltd. | 867.72 | 433.86 | | Total | / | 4,247.72 | 1,351.15 | - During the reporting period, the routine related-party transactions with related parties did not exceed the approved limits[131](index=131&type=chunk) [Major Contracts and Their Performance](index=52&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) The company provided guarantees for an external party and its subsidiary, with the total outstanding guarantee balance representing 0.44% of the company's net assets Company's External Guarantees (Excluding Guarantees for Subsidiaries) | Guarantor | Guaranteed Party | Guarantee Amount (10k Yuan) | Start Date | End Date | Guarantee Type | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suntar Membrane Technology Co., Ltd. | Xiamen Jimei District Financing Guarantee Co., Ltd. | 1,600.00 | 2025.03.31 | 2026.03.31 | Joint and Several Liability | No | Company and Its Subsidiaries' Guarantees for Subsidiaries | Guarantor | Guaranteed Party | Guarantee Amount (10k Yuan) | Start Date | End Date | Guarantee Type | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suntar Membrane Technology Co., Ltd. | Suntar Membrane Technology (Xiamen) Co., Ltd. | 4,000.00 | 2025.02.24 | 2026.11.26 | Joint and Several Liability | No | | Suntar Membrane Technology Co., Ltd. | Suntar Membrane Technology (Xiamen) Co., Ltd. | 5,000.00 | 2025.03.12 | 2026.03.04 | Joint and Several Liability | No | | Suntar Membrane Technology Co., Ltd. | Suntar Membrane Technology (Xiamen) Co., Ltd. | 5,000.00 | 2025.01.02 | 2026.11.26 | Joint and Several Liability | No | | Suntar Membrane Technology Co., Ltd. | Suntar Membrane Technology (Xiamen) Co., Ltd. | 400.00 | 2025.03.31 | 2026.11.26 | Joint and Several Liability | No | | Suntar Membrane Technology Co., Ltd. | Suntar Membrane Technology (Xiamen) Co., Ltd. | 6,000.00 | 2025.03.31 | 2026.11.26 | Joint and Several Liability | No | Company's Total Guarantee Amount | Metric | Amount (10k Yuan) | | :--- | :--- | | Total Guarantees for Subsidiaries Incurred in Reporting Period | 20,400.00 | | Outstanding Guarantee Balance for Subsidiaries at Period-End (B) | 1,825.38 | | Total Guarantee Amount (A+B) | 1,825.38 | | Total Guarantee Amount as a Percentage of Company's Net Assets (%) | 0.44 | [Progress on the Use of Raised Funds](index=55&type=section&id=XII.%20Progress%20on%20the%20Use%20of%20Raised%20Funds) The company has utilized 50.64% of the net proceeds from its IPO, with several investment projects completed and surplus funds reallocated to supplement working capital Overall Use of Raised Funds | Source of Funds | Total Raised (10k Yuan) | Net Proceeds (10k Yuan) | Committed Investment Amount (10k Yuan) | Excess Funds (10k Yuan) | Cumulative Investment to Date (10k Yuan) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 152,416.22 | 145,024.66 | 141,000.00 | 4,024.66 | 73,435.50 | 50.64 | - Multiple fundraising projects have been completed, including several wastewater treatment plant upgrades and membrane production line projects, with some surplus funds permanently supplementing working capital or held in dedicated accounts[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - The company used no more than **90.00 million Yuan** of idle raised funds to temporarily supplement working capital, with **61.54 million Yuan** utilized as of June 30, 2025[159](index=159&type=chunk) - The company used no more than **600 million Yuan** of temporarily idle raised funds for cash management, with a balance of **521.80 million Yuan** as of June 30, 2025[161](index=161&type=chunk)[162](index=162&type=chunk) - The cumulative investment progress for using excess funds to permanently supplement working capital exceeded 100%, mainly because interest income and wealth management gains from the excess funds were also used for this purpose[153](index=153&type=chunk)[156](index=156&type=chunk) - The use of excess funds for share buybacks was completed in September 2022, and the cancellation of the repurchased shares was completed in November 2024[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) [Changes in Share Capital and Shareholders](index=66&type=section&id=Section%206%20Changes%20in%20Share%20Capital%20and%20Shareholders) [Changes in Share Capital](index=66&type=section&id=I.%20Changes%20in%20Share%20Capital) The company's total number of common shares and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total number of common shares and share capital structure **remained unchanged**[165](index=165&type=chunk) [Shareholder Information](index=66&type=section&id=II.%20Shareholder%20Information) As of the period-end, the company had 11,685 common shareholders, with the top two shareholders holding a combined 69.41% stake Total Number of Shareholders | Metric | Number (Households) | | :--- | :--- | | Total number of common shareholders at the end of the reporting period | 11,685 | Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | Suntar Membrane Technology (Singapore) Pte. Ltd. | 144,770,450 | 43.60 | | Clean Water (China) Co., Ltd. | 85,682,350 | 25.81 | | Suntar Membrane Sci-tech Park Development (Xiamen) Co., Ltd. | 2,639,076 | 0.79 | | Lan Xinlian | 1,771,200 | 0.53 | | Lan Xinxiu | 1,756,440 | 0.53 | | Fang Fulin | 1,025,450 | 0.31 | | Yan Jingun | 1,019,000 | 0.31 | | Zhou Yichao | 878,871 | 0.26 | | Quan Xuezhe | 639,000 | 0.19 | | Ding Yonggen | 600,000 | 0.18 | - The company's actual controllers, LAN WEIGUANG and CHEN NI, directly own 100.00% of Suntar Membrane Technology (Singapore) Pte. Ltd. and are parties acting in concert with several other shareholders[170](index=170&type=chunk) [Information on Directors, Supervisors, Senior Management, and Core Technical Personnel](index=69&type=section&id=III.%20Information%20on%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) During the reporting period, Director and General Manager Fang Fulin reduced his shareholding by 100,000 shares due to personal funding needs Changes in Shareholdings of Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position | Shares at Beginning of Period | Shares at End of Period | Change in Shares During Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Fang Fulin | Director, General Manager | 1,125,450 | 1,025,450 | -100,000 | Personal funding needs | [Bond-related Matters](index=70&type=section&id=Section%207%20Bond-related%20Matters) [Corporate Bonds and Non-financial Enterprise Debt Financing Instruments](index=70&type=section&id=I.%20Corporate%20Bonds%20(including%20Enterprise%20Bonds)%20and%20Non-financial%20Enterprise%20Debt%20Financing%20Instruments) The company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period [Convertible Corporate Bonds](index=70&type=section&id=II.%20Convertible%20Corporate%20Bonds) The company had no convertible corporate bonds during the reporting period [Financial Report](index=70&type=section&id=Section%208%20Financial%20Report) [Financial Statements](index=70&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first half of 2025, providing a comprehensive view of its financial position, operating results, and cash flows [Consolidated Balance Sheet](index=70&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were 6.15 billion Yuan, with total liabilities of 1.84 billion Yuan and equity attributable to parent company owners of 4.24 billion Yuan Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 6,148,608,153.76 | | Total Liabilities | 1,840,374,307.64 | | Total Equity Attributable to Parent Company | 4,243,269,112.48 | | Cash and Cash Equivalents | 477,723,923.55 | | Trading Financial Assets | 1,137,767,153.99 | | Accounts Receivable | 1,035,924,581.50 | | Inventories | 832,214,261.57 | | Intangible Assets | 1,533,854,358.73 | | Contract Liabilities | 755,389,280.34 | | Accounts Payable | 427,356,441.05 | [Parent Company Balance Sheet](index=72&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were 3.68 billion Yuan, with total liabilities of 696.37 million Yuan and total equity of 2.98 billion Yuan Key Data from Parent Company Balance Sheet (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 3,679,624,022.55 | | Total Liabilities | 696,368,219.73 | | Total Equity | 2,983,255,802.82 | | Cash and Cash Equivalents | 241,765,749.91 | | Trading Financial Assets | 871,742,387.33 | | Other Receivables | 1,443,109,993.24 | | Inventories | 381,789,013.62 | | Long-term Equity Investments | 583,715,498.93 | | Contract Liabilities | 339,471,856.55 | | Accounts Payable | 132,875,640.24 | [Consolidated Income Statement](index=74&type=section&id=Consolidated%20Income%20Statement) In the first half of 2025, the company achieved total operating revenue of 717.07 million Yuan, a year-on-year increase of 6.53%, with net profit attributable to parent company shareholders growing by 21.39% Key Data from Consolidated Income Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 717,072,359.63 | | Total Operating Costs | 515,424,896.68 | | Total Profit | 228,946,724.34 | | Net Profit | 198,622,730.51 | | Net Profit Attributable to Parent Company Shareholders | 195,236,430.79 | | Investment Income | 35,547,722.24 | | Fair Value Change Gains | 4,581,365.11 | | Basic Earnings Per Share (Yuan/Share) | 0.59 | | Diluted Earnings Per Share (Yuan/Share) | 0.59 | [Parent Company Income Statement](index=76&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2025, the parent company generated operating revenue of 104.03 million Yuan and a net profit of 45.87 million Yuan, significantly supported by investment income Key Data from Parent Company Income Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Operating Revenue | 104,032,839.10 | | Operating Costs | 68,664,509.92 | | Total Profit | 48,495,287.59 | | Net Profit | 45,871,303.28 | | Investment Income | 28,468,722.78 | | Fair Value Change Gains | 4,498,043.95 | [Consolidated Cash Flow Statement](index=78&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, net cash flow from operating activities was 92.78 million Yuan, an increase of 5.77% year-on-year, while investing activities resulted in a net outflow due to increased purchases of wealth management products Key Data from Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 92,784,190.62 | | Net Cash Flow from Investing Activities | -213,936,469.68 | | Net Cash Flow from Financing Activities | -12,234,379.14 | | Net Increase in Cash and Cash Equivalents | -133,594,720.31 | | Cash and Cash Equivalents at End of Period | 415,904,628.01 | - Total cash inflows from operating activities were **571,279,619.56 Yuan**, primarily from cash received from sales of goods and services[191](index=191&type=chunk) - Total cash outflows from investing activities were **1,068,238,017.88 Yuan**, mainly used for purchasing wealth management products[192](index=192&type=chunk) [Parent Company Cash Flow Statement](index=79&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first half of 2025, the parent company's operating activities resulted in a net cash outflow of 125.60 million Yuan, while investing activities generated a net cash inflow of 8.38 million Yuan Key Data from Parent Company Cash Flow Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -125,597,168.29 | | Net Cash Flow from Investing Activities | 8,383,474.16 | | Net Cash Flow from Financing Activities | -158,400.00 | | Net Increase in Cash and Cash Equivalents | -117,372,122.81 | | Cash and Cash Equivalents at End of Period | 183,153,736.06 | [Consolidated Statement of Changes in Equity](index=81&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, the company's consolidated total equity was 4.31 billion Yuan, with the increase primarily driven by net profit contributions Consolidated Statement of Changes in Equity (Jan-Jun 2025) | Item | Beginning Balance (Yuan) | Change During Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company | 4,047,350,773.26 | 195,918,339.22 | 4,243,269,112.48 | | Minority Interest | 60,616,074.57 | 4,348,659.07 | 64,964,733.64 | | Total Equity | 4,107,966,847.83 | 200,266,998.29 | 4,308,233,846.12 | [Parent Company Statement of Changes in Equity](index=89&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, the parent company's total equity was 2.98 billion Yuan, with the increase during the period primarily attributable to net profit Parent Company Statement of Changes in Equity (Jan-Jun 2025) | Item | Beginning Balance (Yuan) | Change During Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Total Equity | 2,937,384,499.54 | 45,871,303.28 | 2,983,255,802.82 | [Company Basic Information](index=93&type=section&id=III.%20Company%20Basic%20Information) The company, originally established as an environmental engineering firm, was restructured into a joint-stock company in 2012 and now focuses on membrane technology applications and water investment operations - The company was formerly "Suntar (Xiamen) Environmental Engineering Co., Ltd." and was restructured into a joint-stock limited company on July 13, 2012[212](index=212&type=chunk)[219](index=219&type=chunk) - After several capital increases and share transfers, the company completed a share buyback and cancellation in December 2024, reducing its total share capital from 333,880,000 shares to **332,012,066 shares**[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) - The company's main business includes membrane technology applications (industrial material separation, membrane-based water treatment, environmental engineering, spare parts, and residential water purifiers) and water investment operations[224](index=224&type=chunk) [Significant Accounting Policies and Estimates](index=95&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the key accounting policies and estimates applied in preparing the financial statements, covering areas such as financial instruments, inventory, revenue recognition, and fixed assets - The company's financial statements are prepared on a going concern basis in accordance with China's Accounting Standards for Business Enterprises, with the Renminbi as the functional currency[225](index=225&type=chunk)[226](index=226&type=chunk)[228](index=228&type=chunk)[232](index=232&type=chunk) - Financial assets are classified into three categories based on business models and contractual cash flow characteristics: amortized cost, fair value through profit or loss, and fair value through other comprehensive income[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk)[351](index=351&type=chunk) - Inventories are accounted for using the perpetual inventory system, with raw materials valued at weighted average cost, membrane equipment and finished goods at specific identification cost, and residential water purifiers at weighted average cost[274](index=274&type=chunk) - Revenue is recognized when the customer obtains control of the related goods, distinguishing between performance obligations satisfied over time or at a point in time[321](index=321&type=chunk)[322](index=322&type=chunk)[323](index=323&type=chunk) - Fixed assets are depreciated using the straight-line method over their useful lives, and intangible assets are amortized using the straight-line method over their determined useful lives[293](index=293&type=chunk)[299](index=299&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk) - The company recognizes loss provisions for financial instruments based on expected credit losses, measured in stages according to changes in credit risk[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[351](index=351&type=chunk) [Taxes](index=125&type=section&id=VI.%20Taxes) This section lists the company's main taxes and tax rates, highlighting various preferential tax policies enjoyed by the company and its subsidiaries, such as high-tech enterprise status and environmental protection project incentives Main Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Revenue | 13, 9, 6, 3, 0 | | Urban Maintenance and Construction Tax | VAT and Consumption Tax Payable | 7, 5 | | Corporate Income Tax | Taxable Income | 0-25 | | Education Surcharge | VAT and Consumption Tax Payable | 3 | | Local Education Surcharge | VAT and Consumption Tax Payable | 2 | | Local Water Conservancy Construction Fund | VAT and Consumption Tax Payable | 1 | - The company and its subsidiary Suntar Membrane Technology are recognized as **high-tech enterprises**, qualifying for a preferential corporate income tax rate of **15%** for the 2025 fiscal year[354](index=354&type=chunk) - Subsidiary water companies enjoy a "three-year exemption, three-year half-rate" income tax incentive for their wastewater treatment income from environmental protection and energy-saving projects[354](index=354&type=chunk) - Qualified small and micro enterprises enjoy preferential income tax policies, with annual taxable income up to 1 million Yuan being reduced by 25% before applying the 20% tax rate[355](index=355&type=chunk) - Some subsidiary water companies benefit from a resource comprehensive utilization policy, where 90% of their wastewater treatment income is included in total revenue for income tax purposes[356](index=356&type=chunk) - Subsidiary water companies' wastewater treatment income is eligible for a VAT refund or exemption policy starting from March 1, 2022[356](index=356&type=chunk) - The company benefits from a 5% additional VAT deduction policy for advanced manufacturing enterprises in 2025[357](index=357&type=chunk) - Small and micro enterprises and individual industrial and commercial households are eligible for a 50% reduction in various local taxes and surcharges[358](index=358&type=chunk) [Notes to Consolidated Financial Statement Items](index=127&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on major items in the consolidated financial statements, including balances, changes, and related explanations for assets, liabilities, equity, income, expenses, and cash flows - The ending balance of cash and cash equivalents was **477,723,923.55 Yuan**, of which 58,645,189.35 Yuan was frozen due to litigation and 3,174,106.19 Yuan was restricted as various deposits[359](index=359&type=chunk) - The ending balance of trading financial assets was **1,137,767,153.99 Yuan**, primarily consisting of bank wealth management products and large-denomination certificates of deposit[360](index=360&type=chunk) - The ending balance of accounts receivable was **1,035,924,581.50 Yuan**, with a bad debt provision of 266,598,697.47 Yuan; the provision increased by 26,276,571.06 Yuan during the period[372](index=372&type=chunk)[374](index=374&type=chunk)[380](index=380&type=chunk) - The ending book value of inventories was **832,214,261.57 Yuan**, mainly comprising work-in-progress, goods in transit, and raw materials[413](index=413&type=chunk) - The ending book value of intangible assets was **1,533,854,358.73 Yuan**, primarily consisting of concession rights for operational projects[433](index=433&type=chunk) - The ending balance of contract liabilities was **755,389,280.34 Yuan**, mainly representing advance payments from customers[459](index=459&type=chunk) - The ending balance of long-term borrowings was **45,011,852.61 Yuan**, primarily consisting of pledged and mortgaged loans[470](index=470&type=chunk) - The ending balance of provisions was **286,200,931.27 Yuan**, mainly for the discounted present value of expected renewal and renovation costs under concession agreements[478](index=478&type=chunk) - Operating revenue for the period was **717,072,359.63 Yuan**, and operating costs were **424,815,085.11 Yuan**[491](index=491&type=chunk) - Investment income for the period was **35,547,722.24 Yuan**, mainly from long-term equity investments accounted for using the equity method and gains from the disposal of trading financial assets[507](index=507&type=chunk) - Credit impairment loss for the period was **-25,913,416.88 Yuan**, primarily from bad debt losses on accounts receivable[509](index=509&type=chunk) [R&D Expenditures](index=191&type=section&id=VIII.%20R&D%20Expenditures) The company's total R&D expenditure for the period was 30.14 million Yuan, all of which was expensed, with personnel costs being the largest component R&D Expenditures by Nature | Item | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Personnel Costs | 20,175,186.98 | 19,607,254.44 | | Travel Expenses | 3,101,101.80 | 2,384,979.73 | | Material Costs | 3,125,060.95 | 5,215,619.85 | | Depreciation | 1,707,160.43 | 1,518,651.62 | | Office Expenses | 114,712.94 | 88,786.16 | | Rental Fees | 16,560.00 | 92,327.99 | | Others | 1,900,425.15 | 969,781.79 | | Total | 30,140,208.25 | 29,877,401.58 | | Of which: Expensed R&D | 30,140,208.25 | 29,877,401.58 | [Changes in Consolidation Scope](index=191&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the period, the company established a new subsidiary, Yushan County Xinda Environmental Co, Ltd, which has been included in the consolidation scope - A new subsidiary, Yushan County Xinda Environmental Co, Ltd, was established during the period with a **55.00%** shareholding and a registered capital of **4 million RMB**, and has been included in the consolidation scope[537](index=537&type=chunk) [Interests in Other Entities](index=193&type=section&id=X.%20Interests%20in%20Other%20Entities) This section details the company's interests in its subsidiaries, joint ventures, and associate companies, with Shandong Tianli Pharmaceutical being a key associate - The company has several wholly-owned or controlled subsidiaries primarily engaged in membrane technology and wastewater treatment businesses[540](index=540&type=chunk)[541](index=541&type=chunk)[542](index=542&type=chunk) - The key associate company is **Shandong Tianli Pharmaceutical Co, Ltd**, in which the company holds a **30.00%** stake, accounted for using the equity method[544](index=544&type=chunk) Key Financial Information of Major Associate Shandong Tianli Pharmaceutical Co., Ltd. (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 2,699,148,229.44 | | Total Liabilities | 837,634,699.79 | | Equity Attributable to Parent Company Shareholders | 1,861,513,529.65 | | Book Value of Investment in Associate | 493,662,301.74 | | Operating Revenue | 1,632,561,840.21 | | Net Profit | 100,396,671.41 | | Total Comprehensive Income | 100,396,671.41 | Summarized Financial Information of Non-material Associates (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Book Value of Investments | 6,904,435.47 | | Net Profit | -459,709.53 | | Total Comprehensive Income | -459,709.53 | [Government Grants](index=199&type=section&id=XI.%20Government%20Grants) During the period, the company received new government grants of 2.7 million Yuan and recognized a total of 9.06 million Yuan in government grants in the current period's profit or loss Changes in Liability Items Related to Government Grants | Financial Statement Item | Beginning Balance (Yuan) | New Grants (Yuan) | Transferred to Other Income (Yuan) | Ending Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 91,868,732.57 | 2,700,000.00 | 4,579,810.34 | 89,988,922.23 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Income-related | 4,481,068.17 | 7,608,050.22 | | Asset-related | 4,579,810.34 | 1,935,248.64 | | Total | 9,060,878.51 | 9,543,298.86 | [Risks Related to Financial Instruments](index=200&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company faces credit, liquidity, and market risks, which are managed through credit assessments, liquidity monitoring, and sensitivity analysis for foreign exchange and interest rate fluctuations - The company is exposed to **credit risk, liquidity risk, and market risk** (foreign exchange risk and interest rate risk)[550](index=550&type=chunk) - Credit risk arises mainly from cash and cash equivalents, notes receivable, accounts receivable, and other receivables, and is managed by assessing customer creditworthiness and monitoring credit records[550](index=550&type=chunk)[551](index=551&type=chunk) - Liquidity risk is managed by coordinating cash management across subsidiaries and regularly monitoring short-term and long-term funding needs[554](index=554&type=chunk) Maturity Analysis of Financial Liabilities (June 30, 2025) | Item | Within 1 Year (10k Yuan) | 1 to 5 Years (10k Yuan) | Over 5 Years (10k Yuan) | Total (10k Yuan) | | :--- | :--- | :--- | :--- | :--- | | Notes Payable | 3,014.89 | - | - | 3,014.89 | | Accounts Payable | 42,735.64 | - | - | 42,735.64 | | Other Payables | 4,432.82 | - | - | 4,432.82 | | Non-current Liabilities Due within One Year | 3,006.24 | - | - | 3,006.24 | | Long-term Borrowings | - | 4,038.19 | 463.00 | 4,501.19 | | Lease Liabilities | - | 953.49 | - | 953.49 | | Total | 53,189.59 | 4,991.68 | 463.00 | 58,644.27 | - Foreign exchange risk arises mainly from USD-denominated assets and liabilities; a **10%** appreciation or depreciation of the RMB against the USD would impact net profit by approximately **5.28 million Yuan**[558](index=558&type=chunk)[559](index=559&type=chunk) - Interest rate risk arises mainly from long-term bank borrowings with floating rates; a **50 basis point** increase or decrease in interest rates would decrease or increase net profit by **0.17 million Yuan**[559](index=559&type=chunk) Financial Asset Transfers | Transfer Method | Nature of Transferred Asset | Amount Transferred (Yuan) | Derecognition Status | | :--- | :--- | :--- | :--- | | Endorsement | Undue acceptance bills in Notes Receivable | 29,608,669.33 | Not derecognized | | Endorsement | Undue bank acceptance bills in Receivables Financing | 60,870,637.90 | Derecognized | | Total | / | 90,479,307.23 | / | [Fair Value Disclosures](index=203&type=section&id=XIII.%20Fair%20Value%20Disclosures) This section discloses the fair value of assets and liabilities measured at fair value, with the total for assets amounting to 1.15 billion Yuan at the period-end Fair Value of Assets and Liabilities at Period-End | Item | Level 1 Fair Value (Yuan) | Level 2 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | I. Continuous Fair Value Measurement | | | | | | (A) Trading Financial Assets | | 1,137,767,153.99 | | 1,137,767,153.99 | | (4) Wealth Management Products | | 356,998,972.71 | | 356,998,972.71 | | (5) Large-Denomination Certificates of Deposit | 780,768,181.28 | | | 780,768,181.28 | | (F) Receivables Financing | | 13,440,419.23 | | 13,440,419.23 | | (G) Other Non-current Financial Assets | | 499,349.90 | | 499,349.90 | | Total Assets at Continuous Fair Value | 1,137,767,153.99 | 13,939,769.13 | | 1,151,706,923.12 | [Related Parties and Related-Party Transactions](index=205&type=section&id=XIV.%20Related%20Parties%20and%20Related-Party%20Transactions) This section discloses the company's parent, subsidiaries, and other related parties, detailing routine transactions such as sales, purchases, leases, and guarantees that occurred during the period - The parent company is Suntar Membrane Technology (Singapore) Pte. Ltd., with a **43.60%** shareholding, and the ultimate controllers are LAN WEIGUANG and CHEN NI[570](index=570&type=chunk) - The company engaged in routine related-party transactions, including selling products to Shandong Tianli Pharmaceutical, purchasing products from Xiamen Dalan Technology, and leasing property from Suntar Membrane Sci-tech Park Development (Xiamen)[573](index=573&type=chunk)[574](index=574&type=chunk)[576](index=576&type=chunk) - The company provided multiple guarantees for its subsidiary, Suntar Membrane Technology (Xiamen), and also received guarantees from it[577](index=577&type=chunk)[578](index=578&type=chunk)[579](index=579&type=chunk) Key Management Personnel Compensation | Item | Current Period (10k Yuan) | Prior Period (10k Yuan) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 215.99 | 208.57 | Unsettled Balances with Related Parties | Item | Related Party | Ending Book Balance (Yuan) | Bad Debt Provision (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable | Shandong Tianli Pharmaceutical Co., Ltd. | 13,488,648.20 | 2,240,682.46 | | Accounts Receivable | Xiamen Municipal Water New Water Development Co., Ltd. | 118,852.18 | 118,852.18 | | Other Receivables | Shandong Tianli Pharmaceutical Co., Ltd. | 215,000.00 | 10,750.00 | | Contract Liabilities | Guangxi Xinda Changshou Technology Co., Ltd. | 398,230.09 | - | | Non-current Liabilities Due within One Year | Suntar Membrane Sci-tech Park Development (Xiamen) Co., Ltd. | 6,530,637.59 | - | | Lease Liabilities | Suntar Membrane Sci-tech Park Development (Xiamen) Co., Ltd. | 3,390,129.49 | - | [Commitments and Contingencies](index=210&type=section&id=XVI.%20Commitments%20and%20Contingencies) As of the period-end, the company had outstanding letters of guarantee amounting to 17.54 million RMB and 14,000 USD - As of June 30, 2025, the company had outstanding letters of guarantee amounting to **17,539,312.00 RMB** and **14,000.00 USD**[586](index=586&type=chunk) [Post-Balance Sheet Events](index=210&type=section&id=XVII.%20Post-Balance%20Sheet%20Events) Subsequent to the reporting period, the company's contract dispute with Sunresin New Materials has proceeded to a second-instance hearing, with the outcome remaining uncertain - The company's contract dispute with Sunresin New Materials has been appealed after an unfavorable first-instance judgment; the second-instance hearing was held on August 6, 2025, but as of August 28, 2025, the verdict has not been rendered, and the outcome is uncertain[587](index=587&type=chunk)[588](index=588&type=chunk) - In the arbitration case between subsidiary Baicheng Suntar Water and Anji Construction, the parties have not yet reached a final settlement agreement, making the arbitration award and its execution uncertain[589](index=589&type=chunk) [Other Significant Matters](index=211&type=section&id=XVIII.%20Other%20Significant%20Matters) This section provides segment information, dividing the business into water investment operations and membrane technology applications, and notes that over 90% of revenue and assets are located in mainland China - The company's business operations are divided into two segments: **Water Investment Operations** and **Membrane Technology Applications**[591](index=591&type=chunk) Financial Information by Reportable Segment (Jan-Jun 2025) | Item | Water Investment Operations (Yuan) | Membrane Technology Applications (Yuan) | Inter-segment Elimination (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 317,845,118.37 | 466,897,455.60 | 67,670,214.34 | 717,072,359.63 | | Operating Costs | 203,876,189.77 | 296,164,722.55 | 75,225,827.21 | 424,815,085.11 | | Operating Profit/(Loss) | 61,026,034.01 | 166,867,875.42 | -1,543,411.33 | 229,437,320.76 | | Total Assets | 2,825,614,485.79 | 5,141,297,689.25 | 1,818,304,021.28 | 6,148,608,153.76 | | Total Liabilities | 1,757,005,106.26 | 1,458,556,842.31 | 1,375,187,640.93 | 1,840,374,307.64 | - Over **90%** of the company's revenue is generated from customers in mainland China, and over **90%** of its assets are located in mainland China[592](index=592&type=chunk) - The subsidiary Zhangzhou Suntar has been taken over by relevant government departments, and negotiations regarding the termination of the concession agreement are ongoing[594](index=594&type=chunk) [Notes to Parent Company Financial Statement Items](index=214&type=section&id=XIX.%20Notes%20to%20Parent%20Comp

Core Viewpoint - The company SanDa Membrane (688101.SH) reported stable growth in revenue and net profit for the first half of 2025, indicating a positive performance in membrane technology applications and water investment operations [1] Financial Performance - The company achieved operating revenue of 717 million yuan, representing a year-on-year increase of 6.53% [1] - The net profit attributable to shareholders was 195 million yuan, reflecting a year-on-year growth of 21.39% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 180 million yuan, with a year-on-year increase of 25.26% [1] - Basic earnings per share were reported at 0.59 yuan [1] Business Segments - Revenue from membrane technology applications and water investment operations showed stable growth during the reporting period [1]

证券代码：688101 证券简称：三达膜 公告编号：2025-038 三达膜环境技术股份有限公司 2025 年半年度募集资金存放、管理与实际使用情况的专项报 1 结合的方式进行，公开发行人民币普通股股票 83,470,000 股，每股 发 行 价 格 为 人 民 币 18.26 元 ， 募 集 资 金 总 额 为 人 民 币 1,524,162,200.00 元，扣除发行费用后实际募集资金净额为人民币 1,450,246,642.09 元。截至 2019 年 11 月 12 日止，本公司实际已向 社会公众公开发行人民币普通股（A 股）83,470,000 股，募集资金总 额 为 人 民 币 1,524,162,200.00 元 ， 扣 除 保 荐 及 承 销 费 人 民 币 63,221,611.38 元后，实际收到主承销商长江证券保荐机构划入募集 资金金额为人民币 1,460,940,588.62 元。上述资金到位情况业经致 同会计师事务所（特殊普通合伙）验证，并出具致同验字（2019）第 350ZA0041 号验资报告。本公司对募集资金采取了专户存储制度。 （二）募集资金本报告期使用金额及期末余额 202 ...

证券代码：688101 证券简称：三达膜 公告编号：2025-039 三达膜环境技术股份有限公司 关于公司聘请 H 股发行及上市审计机构的公告 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、准确性和完整性依 法承担法律责任。 重要内容提示： 拟聘任的会计师事务所名称：容诚（香港）会计师事务所有 限公司 本事项尚需提交公司股东大会审议。 三达膜环境技术股份有限公司（以下简称"公司"）于 2025 年 8 月 28 日召开第五届董事会第八次会议及第五届监事会第七次会议， 审议通过了《关于公司聘请 H 股发行及上市审计机构的议案》，同意聘 请容诚（香港）会计师事务所有限公司（以下简称"容诚香港"）为 公司本次发行 H 股股票并在香港联合交易所有限公司上市（以下简称 "本次发行 H 股及上市"或"本次 H 股上市"）的审计机构，现将具 体情况公告如下： 一、 拟聘任会计师事务所的基本情况 （一）基本信息 1 容诚香港为一家根据中国香港法律设立的有限责任制会计师事 务所。容诚香港于 2008 年成立于中国香港，致力于为中国香港、国 内及世界各地的客户提供包括审计及 ...

Core Insights - The Sci-Tech Innovation Board (STAR Market) is positioned to support technology innovation enterprises that align with national strategies and possess core technologies recognized in the market [1][2] - Many companies listed on the STAR Market have showcased their core technologies in their semi-annual reports, indicating their leading positions within their respective industries [1][3] - The core technologies of STAR Market companies are seen as a significant growth driver, reflecting their potential for substantial development [1][3] Company Highlights - Ruichuang Micro-Nano disclosed seven core technologies, including non-refrigerated infrared sensor focal plane array sensitive material preparation, all in mass production [1] - Huaxing Yuanchuang reported advantages in software, structure, and hardware development, with ten core technologies, including flexible OLED Mura compensation technology, achieving a Mura compensation rate of 98% [2] - Cambrian is one of the few companies globally that comprehensively masters core technologies in general-purpose intelligent chips and their foundational system software [2] Industry Trends - The STAR Market is home to many leading Chinese technology companies, some of which have broken international monopolies, contributing to the domestic replacement of foreign technologies [2][3] - The average R&D investment of STAR Market companies was 18.53% of their operating income in the first half of 2020, an increase of 6 percentage points from the previous year, totaling 12.9 billion yuan [3] - Companies like China Resources Microelectronics and Lanke Technology have made significant advancements in their respective fields, such as the production of SiC wafers and DDR5 memory chips [4] Future Directions - Companies are focusing on monetizing their technologies by hiring emerging technology experts and researchers to align product development with industry needs [5]

Group 1 - The core viewpoint of the announcement is the successful convening of the second extraordinary general meeting of shareholders for 2025, with no resolutions being rejected [2][4]. - The meeting was held on August 8, 2025, at the company's office in Xiamen, Fujian Province, and was presided over by the chairperson, Ms. Chen Ni [2][3]. - All current directors and supervisors attended the meeting, ensuring full representation of the board [3][5]. Group 2 - One of the key resolutions passed was to increase the expected daily related party transaction limit for 2025, which received more than half of the votes from attending shareholders [4][6]. - The voting process was conducted in accordance with the Company Law and the company's articles of association, utilizing both on-site and online voting methods [2][4]. - The meeting was legally witnessed by Beijing Yingke (Xiamen) Law Firm, confirming that all procedures and voting results were compliant with relevant laws and regulations [7].

Core Viewpoint - The legal opinion letter confirms that the second extraordinary general meeting of shareholders of Sundar Membrane Environmental Technology Co., Ltd. was convened and conducted in accordance with relevant laws and regulations, ensuring the legality and validity of the meeting procedures and results [4][6][7]. Group 1: Meeting Procedures - The second extraordinary general meeting was scheduled for August 8, 2025, and the notice was published in the relevant media [3]. - The meeting was held at the designated location and time, with specific time slots allocated for different segments of the meeting [3]. - The actual time, location, and agenda of the meeting matched the details provided in the notice [3]. Group 2: Qualifications of Participants - The meeting was convened by the company's board of directors, which met the qualifications set by relevant laws and regulations [5]. - A total of 111 participants attended the meeting, representing 88,469,605 shares, which accounted for 26.6465% of the total voting shares [5]. - The meeting included company directors, supervisors, senior management, and legal representatives [5]. Group 3: Voting Procedures and Results - The voting was conducted through a named voting method, with oversight from shareholder representatives and legal counsel [6]. - The voting results showed that 88,022,681 shares (99.4948%) voted in favor of the proposals, while 415,234 shares (0.4694%) opposed, and 31,690 shares (0.0358%) abstained [6][7]. - The proposals were classified as ordinary resolutions and were passed with the required majority, excluding votes from related parties [7]. Group 4: Conclusion - The legal opinion concludes that the meeting's convening, procedures, participant qualifications, and voting results were all in compliance with the Company Law, Securities Law, and relevant regulations [4][6][7].

Meeting Details - The shareholders' meeting was held on August 8, 2025, at the San Da Technology Park in Xiamen, Fujian Province [1] - A total of 111 ordinary shareholders attended the meeting, holding 233,240,055 voting rights, which represents 70.2505% of the company's total voting rights [1] Voting Process - The meeting was chaired by the company's chairwoman, Chen Ni, and utilized a combination of on-site and online voting methods [1] - The voting procedures and results complied with the Company Law and the company's articles of association [1] Proposal Review - All non-cumulative voting proposals were approved, with 99.4948% of ordinary shareholders voting in favor [1] - The proposal regarding the increase of the expected quota was also passed, with the voting results indicating a significant majority [1] Legal Compliance - The lawyers present confirmed that the meeting's convening and voting procedures adhered to relevant laws and regulations, ensuring the legality and validity of the meeting [1]

Group 1 - The company SanDa Membrane announced the convening of its second extraordinary general meeting of shareholders for 2025 on August 8, 2025 [2] - The meeting approved the proposal to increase the expected amount of daily related party transactions for the year 2025 [2]

者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 本次会议是否有被否决议案：无 一、 会议召开和出席情况 证券代码：688101 证券简称：三达膜 公告编号：2025-037 三达膜环境技术股份有限公司 2025年第二次临时股东大会决议公告 本公司董事会及全体董事保证公告内容不存在任何虚假记载、误导性陈述或 | 1、出席会议的股东和代理人人数 | 111 | | --- | --- | | 普通股股东人数 | 111 | | 2、出席会议的股东所持有的表决权数量 | 233,240,055 | | 普通股股东所持有表决权数量 | 233,240,055 | | 3、出席会议的股东所持有表决权数量占公司表决权数量的比例（%） | 70.2505 | | 普通股股东所持有表决权数量占公司表决权数量的比例（%） | 70.2505 | （四） 表决方式是否符合《公司法》及公司章程的规定，大会主持情况等。 本次股东大会由公司董事会召集，董事长 CHEN NI 女士主持，会议采用现场 （一） 股东大会召开的时间：2025 年 8 月 8 日 投票和网络投票相结合的表决方式。本次股东大会的 ...