Core Insights - Donglai Technology (688129) reported a total revenue of 299 million yuan for the first half of 2025, representing a year-on-year increase of 12.22% and a net profit of 44.45 million yuan, up 22.12% year-on-year [1] - The company's gross margin decreased to 36.18%, down 7.42% year-on-year, while the net margin improved to 14.89%, an increase of 8.82% year-on-year [1] - The accounts receivable amount is significant, with accounts receivable accounting for 156.17% of the latest annual net profit [1] Financial Performance - Total revenue for 2024 was 266 million yuan, compared to 299 million yuan in 2025, showing a growth of 12.22% [1] - Net profit increased from 36.40 million yuan in 2024 to 44.45 million yuan in 2025, a rise of 22.12% [1] - The company's operating cash flow per share improved significantly from -0.10 yuan to 0.12 yuan, a 222.56% increase [1] Debt and Cash Flow - The company has a healthy cash position, with cash assets being robust [2] - The debt situation shows that the interest-bearing debt ratio has reached 39.83%, indicating a need for monitoring [3] - The cash flow situation is concerning, with cash assets to current liabilities at only 86.15% [3] Business Model and Market Position - The company's performance is primarily driven by marketing efforts, necessitating a deeper understanding of the underlying drivers [2] - Donglai Technology has established itself as a key supplier in the automotive paint industry, gaining certifications from major automotive manufacturers [4] - The company is expanding its market share in both high-end and low-end segments of automotive repair paints, leveraging its brand reputation and product innovation [4]

Core Viewpoint - Donglai Coating Technology (Shanghai) Co., Ltd. reported a revenue increase of 12.22% in the first half of 2025, driven by growth in automotive interior and exterior coatings and stable supply of OEM coatings [2][12]. Company Overview and Financial Indicators - The company achieved an operating income of 298.55 million yuan, compared to 266.04 million yuan in the same period last year [2]. - The total profit reached 50.28 million yuan, up 21.79% from 41.29 million yuan year-on-year [2]. - The net profit attributable to shareholders was 44.45 million yuan, reflecting a 22.12% increase from 36.40 million yuan in the previous year [2]. - The company's total assets increased by 4.20% to 1.66 billion yuan compared to the end of the previous year [2]. Industry Situation - The automotive coating industry in China is characterized by high technical barriers and a stable competitive landscape, with significant entry difficulties for new players [6][8]. - The market for automotive repair coatings is primarily influenced by the number of vehicles in use, consumer repair needs, and travel frequency, with a total vehicle ownership of 359 million as of June 2025, marking a 1.70% increase from the previous year [10][12]. - The demand for new vehicle interior and exterior coatings is closely tied to automotive production and sales, with over 15 million vehicles produced and sold in the first half of 2025, including significant growth in new energy vehicles [10][12]. - The company has established a strong reputation and customer base, having obtained original factory certifications from major automotive manufacturers, which positions it favorably in the competitive landscape [10][11].

Core Viewpoint - Donglai Coating Technology (Shanghai) Co., Ltd. reported a significant increase in revenue and profit for the first half of 2025, indicating strong operational performance and growth potential [1]. Financial Performance - Total assets at the end of the reporting period reached approximately 1.66 billion RMB, an increase of 4.20% compared to the previous year [1]. - Net assets attributable to shareholders increased to approximately 891.39 million RMB, reflecting a growth of 3.49% year-on-year [1]. - Operating revenue for the period was approximately 298.55 million RMB, marking a 12.22% increase from the same period last year [1]. - Total profit amounted to approximately 50.28 million RMB, representing a year-on-year increase of 21.79% [1]. - Net profit attributable to shareholders was approximately 44.45 million RMB, up 22.12% compared to the previous year [1]. - The net cash flow from operating activities was approximately 14.26 million RMB, a significant recovery from a negative cash flow of approximately 11.64 million RMB in the previous year [1]. - The weighted average return on equity increased to 5.11%, up by 0.95 percentage points [1]. - Basic and diluted earnings per share were both 0.40 RMB, an increase of 17.65% from 0.34 RMB in the previous year [1]. - Research and development expenses accounted for 5.72% of operating revenue, an increase of 0.36 percentage points [1]. Shareholder Information - The total number of shareholders at the end of the reporting period was 4,234 [2]. - Major shareholders include Shanghai Donglai Technology Co., Ltd. with a 17.20% stake and Ningbo Meishan Free Trade Port Area Yueshun Investment Management Partnership with a 3.74% stake [2]. - The controlling shareholder and actual controller is Mr. Zhu Zhongmin, who holds 90.00% of the shares in Donglai Technology and Yueshun Investment [2].

Core Insights - Donglai Technology (688129.SH) reported a revenue of 298.55 million yuan for the first half of the year, representing a year-on-year growth of 12.22% driven by a focus on core business and market expansion [1] - The net profit attributable to the parent company reached 44.45 million yuan, marking a year-on-year increase of 22.12%, primarily due to the rise in revenue and the absence of asset impairment issues that occurred in the same period last year [1] - As of June 30, 2025, the company's total assets amounted to 1.66 billion yuan, reflecting a growth of 4.20% compared to the end of 2024 [1]

Section I Definitions This section defines common terms used in the report, covering company names, regulations, reporting periods, subsidiaries, and various coating products and technical terms for clarity [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This chapter defines common terms used in the report, covering company names, regulations, reporting periods, subsidiaries, and various coating products and technical terms for clarity - The reporting period is defined as January 1, 2025, to June 30, 2025[11](index=11&type=chunk) - Donglai Technology's main products include primers, color paints, clear coats, automotive refinish coatings, new car interior/exterior trim coatings, new car body coatings, and consumer electronics coatings[11](index=11&type=chunk) - The report also defines key technical terms such as oil-based coatings, water-based coatings, low-temperature coatings, high-temperature coatings, and VOCs[11](index=11&type=chunk) Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, stock profile, and key financial performance metrics for the reporting period [I. Company Basic Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section outlines Donglai Coating Technology (Shanghai) Co., Ltd.'s basic information, including its Chinese name, abbreviation, legal representative, and registered address - The company's Chinese name is Donglai Coating Technology (Shanghai) Co., Ltd., abbreviated as Donglai Technology[14](index=14&type=chunk) - The legal representative is Zhu Zhongmin, with the registered and office address at No. 1221 Xinhe Road, Jiading Industrial Zone, Shanghai[14](index=14&type=chunk) [II. Contact Persons and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides contact details for the company's Board Secretary and Securities Affairs Representative for investor communication - The Board Secretary and Securities Affairs Representative are Zou Jintong and Sun Yiran, sharing the same contact address and email[15](index=15&type=chunk) [III. Brief Introduction to Information Disclosure and Document Custody Location Changes](index=5&type=section&id=%E4%B8%89%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section specifies the company's designated newspapers for information disclosure, the website for semi-annual reports, and the report's custody location - The company's designated disclosure newspapers are China Securities Journal, Shanghai Securities News, and Securities Times, with reports published on the Shanghai Stock Exchange website (http://www.sse.com.cn)[16](index=16&type=chunk) [IV. Overview of Company Shares/Depositary Receipts](index=5&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%EF%BC%8F%E5%AD%98%E6%89%98%E5%87%AD%E8%AF%81%E7%AE%80%E5%86%B5) This section details the company's stock listing exchange, board, ticker symbol, and code, confirming no depositary receipts - The company's stock is RMB ordinary A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with ticker symbol 'Donglai Technology' and stock code '688129'[17](index=17&type=chunk) [VI. Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=%E5%85%AD%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company achieved growth in both operating revenue and net profit, with net profit attributable to shareholders, excluding non-recurring gains and losses, increasing by 34.29%, driven by higher revenue and the absence of prior-year asset impairment events; operating cash flow turned positive Key Accounting Data for H1 2025 | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 298,552,922.87 | 266,037,855.86 | 12.22 | | Total Profit (CNY) | 50,284,585.08 | 41,288,978.40 | 21.79 | | Net Profit Attributable to Shareholders (CNY) | 44,452,641.27 | 36,400,172.40 | 22.12 | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (CNY) | 26,816,692.88 | 19,968,820.43 | 34.29 | | Net Cash Flow from Operating Activities (CNY) | 14,263,648.78 | -11,638,460.06 | Not Applicable | Key Financial Indicators for H1 2025 | Indicator | Current Reporting Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.40 | 0.34 | 17.65 | | Diluted Earnings Per Share (CNY/share) | 0.40 | 0.34 | 17.65 | | Basic EPS (Excluding Non-Recurring Items) (CNY/share) | 0.24 | 0.19 | 26.32 | | Weighted Average Return on Net Assets (%) | 5.11 | 4.16 | Increased by 0.95 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 3.08 | 2.28 | Increased by 0.8 percentage points | | R&D Investment as % of Operating Revenue (%) | 5.72 | 5.36 | Increased by 0.36 percentage points | - Net profit attributable to shareholders, excluding non-recurring gains and losses, increased by **34.29%**, primarily due to increased operating revenue and the absence of asset impairment events that occurred in the prior year[20](index=20&type=chunk) - The net cash inflow from operating activities was mainly driven by increased operating revenue and higher cash receipts from sales of goods during the reporting period[20](index=20&type=chunk) [VIII. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E5%85%AB%E3%80%81%E9%9D%9E%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **CNY 17,635,948.39**, primarily comprising government grants recognized in profit or loss and fair value changes of financial assets Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 48,052.27 | | Government Grants Recognized in Current Profit or Loss | 3,157,163.75 | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-Financial Enterprises, and Disposal of Financial Assets and Liabilities | 17,815,303.75 | | Other Non-Operating Income and Expenses Apart from the Above | -137,459.55 | | Less: Income Tax Impact | 3,247,111.83 | | Total | 17,635,948.39 | [IX. Net Profit After Deducting Share-Based Payment Impact (Optional Disclosure for Companies with Equity Incentives/Employee Stock Ownership Plans)](index=7&type=section&id=%E4%B9%9D%E3%80%81%E5%AD%98%E5%9C%A8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E7%9A%84%E5%85%AC%E5%8F%B8%E5%8F%AF%E9%80%89%E6%8B%A9%E6%8A%AB%E9%9C%B2%E6%89%A3%E9%99%A4%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98%E5%BD%B1%E5%93%8D%E5%90%8E%E7%9A%84%E5%87%80%E5%88%A9%E6%B6%A6) During the reporting period, the company's net profit after deducting share-based payment impact was **CNY 45,290,841.27**, representing a **24.42% year-on-year increase** Net Profit After Deducting Share-Based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 45,290,841.27 | 36,400,172.40 | 24.42 | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, business operations, core competencies, risk factors, and key financial performance during the reporting period [I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company specializes in high-performance coatings, including automotive refinish, new car interior/exterior and body coatings, and 3C consumer electronics coatings, complemented by professional technical services; the automotive coatings industry features high technical barriers and a stable competitive landscape, with trends towards green solutions, efficiency, and aesthetic innovation, alongside rapid growth in new energy vehicle production and sales - The company's main business involves high-performance coating products developed from advanced petrochemical new materials, including automotive refinish coatings, new car interior/exterior and body coatings, and 3C consumer electronics coatings[28](index=28&type=chunk) - The company provides professional on-site color matching, spray painting technical guidance, custom color paint development, and efficiency optimization services[35](index=35&type=chunk) - The automotive coatings industry is characterized by high entry barriers, advanced technical requirements, and strong service orientation, maintaining a stable competitive landscape for years[50](index=50&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - As of the end of June 2025, national vehicle ownership reached **359 million units**, with new energy vehicles accounting for **36.89 million units**, representing **10.27%** of total vehicle ownership[49](index=49&type=chunk) - In H1 2025, China's automobile production and sales were **15.621 million units** and **15.653 million units**, respectively; new energy vehicle production and sales were **6.968 million units** and **6.937 million units**, with new energy vehicle sales reaching **44.3%** of total new car sales[50](index=50&type=chunk) - New technology development focuses on green environmental protection and efficiency improvement, such as solar power generation coatings and water-based low-temperature integrated coating materials[57](index=57&type=chunk) - The new policy GB30981.2-2025 'Limits for Harmful Substances in Coatings Part 2: Industrial Coatings' will be implemented on June 1, 2026, imposing higher requirements for VOCs and other harmful substances, accelerating industry consolidation[58](index=58&type=chunk) - New market demands include environmental protection, aesthetic innovation (innovative and rare colors), and cost reduction with efficiency improvement[59](index=59&type=chunk) [II. Discussion and Analysis of Operations](index=15&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue grew by **12.22%** and net profit by **22.12%**, driven by business focus, market expansion, and the absence of prior-year asset impairment; new car interior/exterior and body coatings business saw high growth, while automotive refinish coatings grew steadily, alongside active capacity building and equity incentive plan progress Main Business Revenue by Product for Jan-Jun 2025 | Product Category | Operating Revenue Jan-Jun 2025 (CNY 10,000) | Operating Revenue Jan-Jun 2024 (CNY 10,000) | Change (%) | | :--- | :--- | :--- | :--- | | Automotive Refinish Coatings | 12,609.41 | 11,519.39 | 9.46% | | New Car Interior/Exterior Trim and Body Coatings | 14,809.69 | 12,189.04 | 21.50% | | 3C Consumer Electronics Coatings | 346.58 | 351.21 | -1.32% | | Consumables | 1,960.77 | 2,461.13 | -20.33% | | Total | 29,726.45 | 26,520.77 | 12.09% | - Operating revenue for the reporting period was **CNY 298.55 million**, a **12.22% year-on-year increase**; net profit attributable to parent company owners was **CNY 44.45 million**, a **22.12% year-on-year increase**[59](index=59&type=chunk) - Automotive refinish coatings business achieved operating revenue of **CNY 126 million**, a **9.46% year-on-year increase**, by launching economical products and expanding into lower-tier sales channels to increase market share in mid-to-low-end segments[60](index=60&type=chunk) - New car interior/exterior trim coatings and new car body coatings businesses collectively achieved operating revenue of **CNY 148 million**, a **21.50% year-on-year increase**, indicating rapid development with certifications and mass production achievements from numerous mainstream automotive OEMs[61](index=61&type=chunk)[62](index=62&type=chunk) - The 3C consumer electronics coatings business continues to expand, achieving mass production results in automotive front fascia laser-engraved fog lamp cover projects[63](index=63&type=chunk) - R&D investment was **CNY 17.08 million**, a **19.83% year-on-year increase**, accounting for **5.72%** of operating revenue, with **1 new invention patent** and **16 invention patent applications**[64](index=64&type=chunk) - The main structure of the 'Ten Thousand Tons Water-Based Eco-Friendly Automotive Coatings' project has been topped out, with construction expected to be completed in Q3 2025 and final acceptance in Q1 2026[65](index=65&type=chunk) - The company has signed an investment agreement with the Sanjiao Town People's Government of Zhongshan City for the 'High-Performance Automotive Coatings R&D and Production Base and South China Regional Headquarters Project,' which is still in the discussion and planning stage[65](index=65&type=chunk)[66](index=66&type=chunk) - The company completed its 2024 annual cash dividend distribution in June 2025, with a cash dividend of **CNY 0.15 per share** (tax inclusive)[67](index=67&type=chunk) - The company implemented the 2024 Restricted Stock Incentive Plan, and the vesting conditions for the first vesting period have been met[68](index=68&type=chunk)[69](index=69&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=17&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include polymer chemical material R&D, continuous coating formula optimization, accumulated manufacturing expertise, and digital color matching; it holds a first-mover advantage with OEM certifications, a mature market network, strong brand influence, and sustained R&D investment leading to multiple patent achievements during the reporting period - Core technological advantages include polymer chemical material R&D, continuous optimization of coating formulations, long-term accumulation of manufacturing processes, and digital color matching (e.g., 'Caiyunwang' big data and AI color matching system)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - The company possesses a first-mover advantage with OEM certifications, as its onwings®/onwaves® and Gaofei® brands have obtained OEM certifications or supplier qualifications from most global mainstream automotive brands[73](index=73&type=chunk)[74](index=74&type=chunk) - Business model innovation is reflected in its 'advanced manufacturing + modern services' sales model and comprehensive technical services, establishing industry standards for color matching technician training and assessment[76](index=76&type=chunk) - The marketing network is mature, with direct sales covering **9 key regional markets** and a distribution channel system spanning the entire country[77](index=77&type=chunk) - Registered trademarks onwings®/onwaves® and Gaofei® have been awarded the 'Shanghai Famous Trademark' title[78](index=78&type=chunk) - During the reporting period, **1 new invention patent** and **16 invention patent applications** were added, bringing the cumulative total to **64 invention patents**, **17 utility model patents**, and **1 software copyright**[82](index=82&type=chunk)[83](index=83&type=chunk) R&D Investment for Jan-Jun 2025 | Indicator | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 17,083,390.39 | 14,256,069.38 | 19.83 | | Total R&D Investment | 17,083,390.39 | 14,256,069.38 | 19.83 | | Total R&D Investment as % of Operating Revenue (%) | 5.72 | 5.36 | Increased by 0.36 percentage points | - As of the end of the reporting period, the company had **18 ongoing R&D projects**, covering cutting-edge technologies such as automotive refinish waterborne clear coats, photochromic automotive coatings, and carbon-based nanomaterial applications for new energy vehicles[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) R&D Personnel Information | Indicator | Current Period | Prior Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (Persons) | 84 | 80 | | R&D Personnel as % of Total Company Staff (%) | 13.38 | 12.76 | | Total R&D Personnel Compensation (CNY 10,000) | 629.72 | 583.76 | | Average R&D Personnel Compensation (CNY 10,000) | 7.99 | 7.58 | [IV. Risk Factors](index=28&type=section&id=%E5%9B%9B%E3%80%81%E9%A3%8E%E9%99%A9%E5%9B%A0%E7%B4%A0) The company faces various risks, including insufficient R&D capabilities, rising labor costs, intellectual property protection, raw material price fluctuations, accounts receivable bad debts, inventory backlog, changes in corporate income tax preferential policies, automotive coatings demand sensitivity to the automotive manufacturing industry, oil-based coatings demand sensitivity to environmental policies, overseas market challenges, and safety production and environmental compliance - R&D Risk: Insufficient continuous R&D capabilities or failure to keep pace with industry innovation trends could weaken the company's competitiveness[96](index=96&type=chunk) - Operational Risks: Continuously rising labor costs, intellectual property infringement or core technology leakage, and significant fluctuations in raw material prices could impact operating performance[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - Financial Risks: Increased accounts receivable may lead to bad debt risk (period-end net value of **CNY 132.3468 million**), a longer inventory turnover cycle could result in inventory backlog and impairment (period-end net amount of **CNY 90.3670 million**), and risks related to changes in corporate income tax preferential policies[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - Industry Risks: Automotive coatings demand is influenced by vehicle ownership, repair rates, and new car production/sales, while oil-based coatings demand is affected by stricter environmental policies[104](index=104&type=chunk)[105](index=105&type=chunk) - Macro-Environmental Risks: Overseas sales account for approximately **13.60%** of main business revenue, exposing the company to risks such as deteriorating overseas political and economic environments and unfavorable trade policies[107](index=107&type=chunk) - Other Significant Risks: As a hazardous chemical industry, there are risks of safety production accidents and environmental compliance[108](index=108&type=chunk)[109](index=109&type=chunk) [V. Key Operating Performance During the Reporting Period](index=30&type=section&id=%E4%BA%94%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, the company achieved growth in both operating revenue and net profit, with total assets increasing; financial statement items show net cash flow from operating activities turned positive, net cash flow from investing activities significantly decreased due to reduced redemption of wealth management products and increased investment in fundraising projects, and net cash flow from financing activities increased due to expanded financing; the company continues to advance its 'Ten Thousand Tons Water-Based Eco-Friendly Automotive Coatings' and 'High-Performance Automotive Coatings R&D and Production Base and South China Regional Headquarters' projects - During the reporting period, the company achieved operating revenue of **CNY 298.55 million**, a **12.22% year-on-year increase**; net profit attributable to parent company owners was **CNY 44.45 million**, a **22.12% year-on-year increase**[110](index=110&type=chunk) Analysis of Changes in Financial Statement Items | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 298,552,922.87 | 266,037,855.86 | 12.22 | | Operating Cost | 190,530,527.51 | 162,059,993.65 | 17.57 | | Selling Expenses | 28,602,670.57 | 27,941,865.45 | 2.36 | | Administrative Expenses | 18,813,333.18 | 18,977,924.13 | -0.87 | | Financial Expenses | 7,427,699.62 | 6,447,905.95 | 15.20 | | R&D Expenses | 17,083,390.39 | 14,256,069.38 | 19.83 | | Net Cash Flow from Operating Activities | 14,263,648.78 | -11,638,460.06 | Not Applicable | | Net Cash Flow from Investing Activities | -76,063,913.18 | 6,700,163.18 | -1,235.25 | | Net Cash Flow from Financing Activities | 50,099,230.29 | -29,030,015.91 | Not Applicable | - The change in net cash flow from operating activities was primarily due to increased operating revenue and higher cash receipts from sales of goods[111](index=111&type=chunk) - The significant decrease in net cash flow from investing activities was mainly due to reduced redemption of wealth management products and large-denomination certificates of deposit compared to the prior year, coupled with increased investment payments for fundraising projects[112](index=112&type=chunk) - The change in net cash flow from financing activities was primarily due to increased borrowings from expanded financing, and the absence of share repurchase expenditures that occurred in the prior period[113](index=113&type=chunk) Changes in Assets and Liabilities | Item Name | Current Period End Amount (CNY) | Current Period End Amount as % of Total Assets (%) | Prior Year End Amount (CNY) | Prior Year End Amount as % of Total Assets (%) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 9,755,406.89 | 0.59 | 14,799,201.77 | 0.93 | -34.08 | Bank acceptance bills collected upon maturity | | Other Receivables | 3,695,016.68 | 0.22 | 7,631,148.95 | 0.48 | -51.58 | Recovery of performance bond for fundraising projects | | Long-Term Prepaid Expenses | 11,391.27 | 0.00 | 34,174.17 | 0.00 | -66.67 | Decreased amortization of colorimeter license fees and other expenses | | Deferred Income Tax Assets | 3,033,012.20 | 0.18 | 4,376,430.17 | 0.27 | -30.70 | Increased fair value of wealth management products, increased deferred income tax liabilities, resulting in reduced net assets after offset | | Accounts Payable | 50,974,706.28 | 3.07 | 84,355,258.16 | 5.29 | -39.57 | Decreased accounts payable for fundraising projects | | Other Current Liabilities | 4,995,542.33 | 0.30 | 7,635,697.94 | 0.48 | -34.58 | Decreased notes receivable endorsed but not derecognized before maturity | | Lease Liabilities | 2,453,694.89 | 0.15 | 3,669,051.16 | 0.23 | -33.12 | Decreased unpaid rent at period end | - The 'Ten Thousand Tons Water-Based Eco-Friendly Automotive Coatings' project has a total investment of **CNY 400 million**, with construction expected to be completed in Q3 2025 and final acceptance in Q1 2026[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - Both phases of the 'High-Performance Automotive Coatings R&D and Production Base and South China Regional Headquarters Project' are still in the discussion and planning stages[119](index=119&type=chunk)[121](index=121&type=chunk) Key Subsidiary Information | 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) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dongtu Tech Service | Subsidiary | Color matching, coating training, sheet metal spray process management, and other technical consulting and services | 1,000.00 | 3,131.12 | 1,642.81 | 4,408.68 | 77.95 | -1.36 | | Dongtu Sales | Subsidiary | Automotive coatings market development and sales | 100.00 | 215.96 | 217.91 | 8.10 | -4.19 | -3.98 | | Donglai New Materials | Subsidiary | Coatings market development and sales | 500.00 | - | - | - | - | - | | Donglai North America | Subsidiary | Coatings market development and sales | 14.24 | 8.82 | 8.82 | - | - | - | Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, including board and management personnel, profit distribution plans, and social responsibility initiatives during the reporting period [I. Changes in Company Directors, Senior Management, and Core Technical Personnel](index=35&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E6%A0%B8%E5%BF%83%E6%8A%80%E6%9C%AF%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company abolished its Supervisory Board, with its functions transferred to the Board's Audit Committee; Director Zhu Zhiyun resigned, and Mao Xinyong was elected as a non-independent director; Li Bai resigned as director and strategy committee member, then was elected as an employee representative director and re-appointed to the strategy committee; the company's core technical personnel identification criteria are clearly defined - The company abolished its Supervisory Board, with its functions now exercised by the Board's Audit Committee; former supervisors Ye Xiaoming, Song Chao, and Zhao Xiaoyuan have left their positions[126](index=126&type=chunk) - Director Zhu Zhiyun resigned due to personal reasons, and Mao Xinyong was elected as a non-independent director for the third Board of Directors[127](index=127&type=chunk) - Director Li Bai resigned from his positions as director and strategy committee member due to internal company adjustments, subsequently being elected as an employee representative director and re-appointed to the strategy committee[128](index=128&type=chunk) - Core technical personnel identification criteria include deep industry background, over **8 years** of service, alignment with corporate culture, holding key positions in R&D/technology/quality, and leading/responsible for/participating in core technology R&D and patent applications[130](index=130&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=35&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) This semi-annual report does not include a profit distribution plan or a capital reserve to share capital conversion plan - No profit distribution plan or capital reserve to share capital conversion plan is applicable for this reporting period[129](index=129&type=chunk)[131](index=131&type=chunk) [V. Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=36&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities, donating **CNY 100,000** in June 2025 through the Shanghai Jiading District Minjian Public Welfare Special Fund to the Shanghai Minjian Fubang Public Welfare Foundation for its 'Student Aid and Assistance' project - In June 2025, the company donated **CNY 100,000** to the Shanghai Minjian Fubang Public Welfare Foundation for its 'Student Aid and Assistance' project[131](index=131&type=chunk) Section V Significant Matters This section details the fulfillment of commitments, absence of related party fund occupation or illegal guarantees, major litigation, and the progress of raised capital utilization [I. Fulfillment of Commitments](index=37&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's controlling shareholder, actual controller, directors, senior management, and core technical personnel have strictly fulfilled all commitments related to the initial public offering, including share lock-up, reduction intentions, fraudulent issuance share repurchase, compensation for diluted immediate returns, social insurance/housing provident fund补缴, avoidance of horizontal competition, and standardization of related party transactions; equity incentive-related commitments are also being fulfilled - The controlling shareholder and actual controller committed to not selling shares below the offering price within **two years** after the lock-up period expires and to comply with reduction regulations[133](index=133&type=chunk) - The company, its controlling shareholder, actual controller, directors, supervisors, and senior management committed to initiating share repurchase procedures and compensating investors for losses if there is any fraudulent issuance or listing[138](index=138&type=chunk) - The controlling shareholder, actual controller, directors, and senior management committed to compensating for diluted immediate returns, not abusing their positions, and not harming the company's interests[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - The controlling shareholder and actual controller committed to fully bearing any required supplementary payments for employee social insurance and housing provident fund issues[144](index=144&type=chunk) - The controlling shareholder, actual controller, and Yueshun Investment committed to avoiding horizontal competition and granting the company a right of first refusal[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - The controlling shareholder, actual controller, Yueshun Investment, and directors, supervisors, and senior management committed to standardizing and reducing related party transactions[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - The company committed not to provide loans or other financial assistance to equity incentive recipients[145](index=145&type=chunk) - Equity incentive recipients committed to returning all benefits obtained from the incentive plan if the company's information disclosure documents contain false records[145](index=145&type=chunk)[146](index=146&type=chunk) [II. Non-Operating Occupation of Funds by Controlling Shareholder and Other Related Parties During the Reporting Period](index=50&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties - During the reporting period, the company had no non-operating occupation of funds by the controlling shareholder or other related parties[147](index=147&type=chunk) [III. Illegal Guarantees](index=50&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) During the reporting period, there were no illegal guarantees - During the reporting period, the company had no illegal guarantees[147](index=147&type=chunk) [VII. Major Litigation and Arbitration Matters](index=51&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[148](index=148&type=chunk) [XII. Explanation of Progress in Use of Raised Funds](index=53&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) As of the end of the reporting period, the company's total raised funds amounted to **CNY 456.6 million**, with cumulative investment of **CNY 407.0914 million**, including **CNY 21.3758 million** invested this year; the 'Ten Thousand Tons Water-Based Eco-Friendly Automotive Coatings Project' has invested **CNY 103.1372 million**, reaching **29.80%** completion, expected to be ready for use in Q1 2026; the company used idle raised funds for cash management, with an ending balance of **CNY 254.9097 million** Overall Use of Raised Funds | Indicator | Total Raised Funds (CNY) | Cumulative Investment of Raised Funds as of Period End (CNY) | Amount Invested This Year (CNY) | Investment Progress as of Period End (%) | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 456,600,000.00 | 407,091,428.10 | 180,372,140.75 | 44.31 | Detailed Use of Fundraising Projects | Project Name | Planned Total Investment of Raised Funds (CNY) | Amount Invested This Year (CNY) | Cumulative Investment of Raised Funds as of Period End (CNY) | Investment Progress (%) | Expected Date of Reaching Intended Usable State | | :--- | :--- | :--- | :--- | :--- | :--- | | Ten Thousand Tons Water-Based Eco-Friendly Automotive Coatings Project | 346,084,169.28 | 21,375,839.00 | 103,137,242.00 | 29.80 | Q1 2026 | | Replenishment of Working Capital | 65,000,000.00 | 0 | 65,320,963.01 | 100.49 | Not Applicable | - The company used idle raised funds, up to **CNY 275 million**, for cash management; as of June 30, 2025, unredeemed cash management investments totaled **CNY 254.9097 million**, generating investment income of **CNY 2.2733 million**[155](index=155&type=chunk)[157](index=157&type=chunk) - The company has closed some dedicated settlement accounts for raised funds wealth management[156](index=156&type=chunk) Section VI Share Changes and Shareholder Information This section outlines the company's share capital changes and shareholder structure, including the total number of shareholders and the top ten shareholders [I. Share Capital Changes](index=56&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total ordinary share capital or share structure - During the reporting period, there were no changes in the company's total ordinary share capital or share structure[159](index=159&type=chunk) [II. Shareholder Information](index=56&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **4,234** ordinary shareholders; among the top ten shareholders, Shanghai Donglai Technology Co., Ltd. held **44.28%** and Zhu Zhongmin held **17.20%**, both being related parties; the company's dedicated share repurchase account held **7.72%** of the total share capital Total Ordinary Shareholders as of Period End | Indicator | Number (Households) | | :--- | :--- | | Total Ordinary Shareholders as of Period End | 4,234 | Top Ten Shareholders as of Period End | Shareholder Name | Shares Held at Period End (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shanghai Donglai Technology Co., Ltd. | 53,352,000 | 44.28 | Domestic Non-State-Owned Legal Person | | Zhu Zhongmin | 20,718,000 | 17.20 | Domestic Natural Person | | Ningbo Meishan Bonded Port Area Yueshun Investment Management Partnership (Limited Partnership) | 4,500,000 | 3.74 | Other | | Lian Jian | 2,400,985 | 1.99 | Domestic Natural Person | | National Social Security Fund 503 Portfolio | 1,500,000 | 1.25 | Other | | Shanghai Haojun Investment Management Center (Limited Partnership) | 863,010 | 0.72 | Other | | Yunnan Dabo Culture Investment Co., Ltd. | 780,487 | 0.65 | Domestic Non-State-Owned Legal Person | | Shenzhen Rongsheng Investment Management Co., Ltd. - Rongsheng No. 9 Private Securities Investment Fund | 780,000 | 0.65 | Other | | Industrial and Commercial Bank of China Co., Ltd. - Guoshou Anbao Growth Preferred Stock Investment Fund | 628,631 | 0.52 | Other | | Shanghai Yingshui Investment Management Co., Ltd. - Yingshui Jinniu No. 23 Private Securities Investment Fund | 617,649 | 0.51 | Other | - Mr. Zhu Zhongmin, the company's controlling shareholder and actual controller, holds **90.00%** equity in both Donglai Technology and Yueshun Investment, indicating a related party relationship[163](index=163&type=chunk) - The company's dedicated share repurchase account holds **9,295,573 shares**, accounting for **7.72%** of the company's total share capital[163](index=163&type=chunk) Section VII Bond-Related Information This section confirms the absence of company bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period [I. Company Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=59&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) During the reporting period, the company had no company bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no company bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[167](index=167&type=chunk) [II. Convertible Corporate Bonds](index=59&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[167](index=167&type=chunk) Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed accounting policies and notes [I. Audit Report](index=60&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report is unaudited - This semi-annual report is unaudited[4](index=4&type=chunk)[169](index=169&type=chunk) [II. Financial Statements](index=60&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, comprehensively illustrating its financial position, operating results, and cash flows Consolidated Balance Sheet (Summary) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 1,660,639,103.58 | 1,593,739,572.55 | | Total Liabilities | 769,252,478.28 | 732,393,352.37 | | Total Owners' Equity | 891,386,625.30 | 861,346,220.18 | Consolidated Income Statement (Summary) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 298,552,922.87 | 266,037,855.86 | | Total Operating Costs | 264,430,023.90 | 231,537,292.86 | | Total Profit | 50,284,585.08 | 41,288,978.40 | | Net Profit | 44,452,641.27 | 36,400,172.40 | | Basic Earnings Per Share (CNY/share) | 0.40 | 0.34 | Consolidated Cash Flow Statement (Summary) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 14,263,648.78 | -11,638,460.06 | | Net Cash Flow from Investing Activities | -76,063,913.18 | 6,700,163.18 | | Net Cash Flow from Financing Activities | 50,099,230.29 | -29,030,015.91 | | Net Increase in Cash and Cash Equivalents | -11,701,034.11 | -33,869,471.68 | [III. Company Basic Information](index=80&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Donglai Coating Technology (Shanghai) Co., Ltd. was listed on the Shanghai Stock Exchange in October 2020, operating in the chemical industry; as of June 30, 2025, the company's registered capital was **CNY 120 million**, with a total share capital of **120.4788 million shares**; its parent company is Shanghai Donglai Technology Co., Ltd., and the ultimate controlling party is Zhu Zhongmin - The company was listed on the Shanghai Stock Exchange in October 2020, operating in the chemical industry[201](index=201&type=chunk) - As of June 30, 2025, the company's registered capital was **CNY 120 million**, with a cumulative total share capital of **120.4788 million shares**[201](index=201&type=chunk) - The company's parent company is Shanghai Donglai Technology Co., Ltd., and the ultimate controlling party is Zhu Zhongmin[201](index=201&type=chunk) [IV. Basis of Financial Statement Preparation](index=80&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis - The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and CSRC's 'Rules for the Preparation of Information Disclosure by Companies Issuing Securities to the Public No. 15 - General Provisions on Financial Reports'[202](index=202&type=chunk) - The company's financial statements are prepared on a going concern basis[203](index=203&type=chunk) [V. Significant Accounting Policies and Estimates](index=80&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's specific accounting policies and estimates for financial statement preparation, covering compliance with accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, cash and cash equivalents, foreign currency transactions and translation, financial instruments, notes and accounts receivable, contract assets, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, long-term prepaid expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company adheres to Accounting Standards for Business Enterprises, with the accounting year from January 1 to December 31, an operating cycle of **12 months**, and the functional currency being RMB[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - Detailed explanations are provided for the classification, recognition, measurement, derecognition, and impairment testing methods of financial instruments, including financial assets and liabilities measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss[221](index=221&type=chunk)[222](index=222&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Revenue recognition and measurement policies are based on the satisfaction of performance obligations, with revenue recognized when the customer obtains control of goods or services, and measured according to the progress or point in time of performance[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk) - Fixed assets are depreciated using the straight-line method, and construction in progress is measured at actual cost and transferred to fixed assets upon reaching its intended usable state[254](index=254&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk) - R&D expenditures are divided into research and development phases; research phase expenditures are expensed in the current period, while development phase expenditures are capitalized as intangible assets when specific conditions are met[265](index=265&type=chunk)[266](index=266&type=chunk) - Lease accounting distinguishes between lessees and lessors, applying simplified treatment for short-term and low-value asset leases, and recognizing right-of-use assets and lease liabilities for other leases[300](index=300&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk)[310](index=310&type=chunk) [VI. Taxation](index=103&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax; the company benefits from a **15%** preferential corporate income tax rate as a high-tech enterprise, its subsidiary Shanghai Dongtu Automotive Coatings Sales Co., Ltd. enjoys corporate income tax benefits for small low-profit enterprises, and some coating products are exempt from consumption tax Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of Goods and Taxable Services Revenue | 13%, 6% | | Urban Maintenance and Construction Tax | Actual VAT and Consumption Tax Paid | 5% | | Corporate Income Tax | Taxable Income | 25%, 21%, 15% | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | Donglai Coating Technology (Shanghai) Co., Ltd. | 15 | | Shanghai Dongtu Automotive Technology Service Co., Ltd. | 25 | | Shanghai Dongtu Automotive Coatings Sales Co., Ltd. | 20 | | Donglai Coatings North America LLC | 21 | - The company passed the high-tech enterprise re-certification, and its corporate income tax will be levied at a reduced rate of **15%** from 2023 to 2026[314](index=314&type=chunk) - Subsidiary Shanghai Dongtu Automotive Coatings Sales Co., Ltd. qualifies as a small low-profit enterprise, enjoying a reduced income tax rate where its taxable income is calculated at **25%** and taxed at **20%**[314](index=314&type=chunk) - Coatings produced by the company with volatile organic compound (VOC) content below or equal to **420 grams/liter** in application state are exempt from consumption tax[314](index=314&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=104&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures of the consolidated financial statement items' period-end balances, beginning balances, and current period changes, encompassing cash, financial assets at fair value through profit or loss, notes and accounts receivable, contract assets, receivables financing, prepayments, other receivables, inventories, other current assets, fixed assets, construction in progress, right-of-use assets, intangible assets, long-term prepaid expenses, deferred income tax assets/liabilities, short-term borrowings, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, lease liabilities, share capital, capital reserves, treasury stock, specific reserves, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling, administrative, R&D, and financial expenses, other income, investment income, fair value change gains, asset disposal gains, credit impairment losses, asset impairment losses, non-operating income and expenses, income tax expense, cash flow statement items and supplementary information, and foreign currency monetary items Cash and Bank Balances | Item | Period-End Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Cash on Hand | 22,823.65 | 18,118.65 | | Bank Deposits | 51,966,726.56 | 63,308,095.02 | | Other Cash and Bank Balances | 251,774.95 | 616,145.60 | | Total | 52,241,325.16 | 63,942,359.27 | Financial Assets at Fair Value Through Profit or Loss | Item | Period-End Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Wealth Management Products | 564,407,390.00 | 540,316,970.00 | Notes Receivable by Category | Item | Period-End Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Bank/Commercial Acceptance Bills | 9,755,406.89 | 14,799,201.77 | Accounts Receivable by Aging | Aging | Period-End Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | | Within 1 Year (Inclusive) | 147,177,510.80 | 145,485,645.94 | | 1 to 2 Years | 25,585,386.05 | 13,290,459.89 | | 2 to 3 Years | 884,185.93 | 605,927.96 | | Over 3 Years | 2,101,658.34 | 2,073,458.00 | | Total | 175,748,741.12 | 161,455,491.79 | Inventory Classification | Item | Period-End Book Value (CNY) | Beginning Book Value (CNY) | | :--- | :--- | :--- | | Raw Materials | 33,552,396.62 | 33,106,585.33 | | Inventories | 39,565,772.32 | 42,226,726.69 | | Goods in Transit | 17,248,864.45 | 23,304,043.55 | | Total | 90,367,033.39 | 98,637,355.57 | Book Value of Fixed Assets | Item | Period-End Book Value (CNY) | Beginning Book Value (CNY) | | :--- | :--- | :--- | | Buildings and Structures | 19,146,721.25 | 20,626,384.47 | | Machinery and Equipment | 16,262,999.90 | 17,838,514.15 | | Transportation Vehicles | 1,758,602.70 | 1,966,122.99 | | Office and Other Equipment | 2,043,044.45 | 2,216,231.10 | | Total | 39,211,368.30 | 42,647,252.71 | Construction in Progress | Item | Period-End Book Value (CNY) | Beginning Book Value (CNY) | | :--- | :--- | :--- | | Phase III Project Construction | 54,619,127.78 | 52,645,564.68 | | New Caiyunwang Software Development | 1,036,195.95 | 592,111.97 | | PLM Software | 188,495.58 | 0 | | Dormitory Renovation | 894,289.31 | 0 | | Total | 56,738,108.62 | 53,237,676.65 | Short-Term Borrowings by Category | Item | Period-End Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Credit Loans | 568,127,119.87 | 521,035,328.48 | | Letter of Credit Financing | 90,000,000.00 | 60,000,000.00 | | Accrued Interest | 364,275.38 | 379,449.49 | | Total | 658,491,395.25 | 581,414,777.97 | Operating Revenue and Operating Costs | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 297,264,452.13 | 189,489,054.44 | 265,207,693.23 | 161,284,638.44 | | Other Businesses | 1,288,470.74 | 1,041,473.07 | 830,162.63 | 775,355.21 | | Total | 298,552,922.87 | 190,530,527.51 | 266,037,855.86 | 162,059,993.65 | R&D Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | R&D Personnel Compensation | 8,949,443.44 | 8,079,348.01 | | R&D Material Expenditures | 6,701,548.67 | 4,529,545.46 | | R&D Equipment Depreciation | 242,615.26 | 191,204.85 | | Other R&D Expenditures | 1,189,783.02 | 1,455,971.06 | | Total | 17,083,390.39 | 14,256,069.38 | Financial Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Interest Expense | 7,519,770.15 | 7,233,102.93 | | Less: Interest Income | 179,691.59 | 788,650.43 | | Exchange Gains/Losses | 24,519.43 | -98,841.11 | | Bill Discounting | 0 | 61,060.68 | | Other | 63,101.63 | 41,233.88 | | Total | 7,427,699.62 | 6,447,905.95 | Investment Income | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Investment Income from Wealth Management Products and Large-Denomination Certificates of Deposit | 709,499.28 | 3,471,663.38 | | Interest Income from Time Deposits | 3,124,109.59 | 3,141,369.88 | | Other | -114,210.90 | 0 | | Total | 3,719,397.97 | 6,613,033.26 | Gains from Changes in Fair Value | Source of Gains from Changes in Fair Value | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | 9,159,480.00 | 7,199,744.12 | | Other Current Assets (Large-Denomination Certificates of Deposit) | 4,936,425.78 | 4,314,238.57 | | Total | 14,095,905.78 | 11,513,982.69 | Credit Impairment Losses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Bad Debt Losses on Notes Receivable | -7,233.28 | -722,645.34 | | Bad Debt Losses on Accounts Receivable | 3,856,438.10 | 10,359,279.39 | | Bad Debt Losses on Other Receivables | -954,878.15 | 860,953.00 | | Total | 2,894,326.67 | 10,497,587.05 | Asset Impairment Losses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Inventory Write-Downs and Contract Performance Cost Impairment Losses | 1,827,047.44 | 2,046,613.63 | Income Tax Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Current Income Tax Expense | 4,488,525.84 | 5,482,933.27 | | Deferred Income Tax Expense | 1,343,417.97 | -594,127.27 | | Total | 5,831,943.81 | 4,888,806.00 | [VIII. R&D Expenditures](index=150&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) During the reporting period, total R&D expenditures amounted to **CNY 17.0834 million**, all expensed, representing a **19.83% year-on-year increase**, primarily invested in R&D personnel compensation and materials R&D Expenditures by Nature of Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | R&D Material Expenditures | 6,701,548.67 | 4,529,545.46 | | R&D Personnel Compensation | 8,949,443.44 | 8,079,348.01 | | R&D Equipment Depreciation | 242,615.26 | 191,204.85 | | Other R&D Expenditures | 1,189,783.02 | 1,455,971.06 | | Total | 17,083,390.39 | 14,256,069.38 | | Of which: Expensed R&D Expenditures | 17,083,390.39 | 14,256,069.38 | [IX. Changes in Consolidation Scope](index=151&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company had no changes in consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company had no changes in consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries[447](index=447&type=chunk)[448](index=448&type=chunk) [X. Interests in Other Entities](index=152&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's interests in its wholly-owned subsidiaries: Shanghai Dongtu Automotive Technology Service Co., Ltd., Shanghai Dongtu Automotive Coatings Sales Co., Ltd., Donglai New Materials Technology (Hebei) Co., Ltd., and Donglai Coatings North America LLC Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (CNY 10,000) | Business Nature | Shareholding Proportion (%) Direct | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Dongtu Automotive Technology Service Co., Ltd. | Shanghai | 1,000.00 | Services | 100.00 | Establishment | | Shanghai Dongtu Automotive Coatings Sales Co., Ltd. | Shanghai | 100.00 | Trading | 100.00 | Establishment | | Donglai New Materials Technology (Hebei) Co., Ltd. | Hebei | 500.00 | Services | 100.00 | Establishment | | Donglai Coatings North America LLC | Overseas | 14.24 | Trading | 100.00 | Establishment | - As of the end of the reporting period, Donglai New Materials' registered capital has not yet been fully paid in, and it has not yet commenced operations[450](index=450&type=chunk) [XI. Government Grants](index=154&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) During the reporting period, government grants recognized in current profit or loss amounted to **CNY 2,132,000.00**, primarily consisting of income-related government grants Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Income-Related | 2,132,000.00 | 33,500.06 | | Total | 2,132,000.00 | 33,500.06 | [XII. Risks Related to Financial Instruments](index=155&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces credit risk, liquidity risk, and market risk (including interest rate risk and exchange rate risk); these risks are managed by assessing customer credit, monitoring cash balances, and rolling cash flow forecasts; all company borrowings are at fixed interest rates, thus eliminating interest rate risk - The company faces credit risk (customer credit sales), liquidity risk (fund shortages), and market risk (interest rate risk, exchange rate risk)[453](index=453&type=chunk)[454](index=454&type=chunk)[455](index=455&type=chunk) - The company manages credit risk by assessing new customer credit, setting credit limits, quarterly monitoring existing customer credit ratings, and monthly reviewing accounts receivable aging[453](index=453&type=chunk) - The finance department manages liquidity risk by monitoring cash balances, marketable securities, and 12-month forward cash flow forecasts[454](index=454&type=chunk) - All company borrowings are at fixed interest rates, thus eliminating interest rate risk[456](index=456&type=chunk) - The company has no other price risks, as it did not hold equity investments in other listed companies during the reporting period[458](index=458&type=chunk) [XIII. Disclosure of Fair Value](index=156&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company's assets measured at fair value primarily include financial assets at fair value through profit or loss (wealth management products) and other current assets (large-denomination certificates of deposit), with fair value determined using Level 1 active market quotes; receivables financing uses Level 2 valuation techniques, with its carrying amount serving as fair value Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (CNY) | Level 2 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | 564,407,390.00 | 0 | 564,407,390.00 | | Receivables Financing | 0 | 60,377,082.35 | 60,377,082.35 | | Other Current Assets (Large-Denomination Certificates of Deposit) | 383,882,960.88 | 0 | 383,882,960.88 | | Total Assets Continuously Measured at Fair Value | 948,290,350.88 | 60,377,082.35 | 1,008,667,433.23 | - Financial assets at fair value through profit or loss and other current assets (large-denomination certificates of deposit) measured at Level 1 fair value are valued using active market quotes[464](index=464&type=chunk) - Receivables financing measured at Level 2 fair value uses its carrying amount as fair value due to its short remaining maturity[465](index=465&type=chunk) [XIV. Related Parties and Related Party Transactions](index=158&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's parent company is Shanghai Donglai Technology Co., Ltd., with Zhu Zhongmin as the ultimate controlling party; this section discloses key management personnel compensation, and confirms no related party transactions such as goods purchases/sales, provision/acceptance of services, entrusted management/contracting, leases, guarantees, fund borrowings, or asset transfers/debt restructuring during the reporting period - The company's parent company is Shanghai Donglai Technology Co., Ltd., with a **44.28%** shareholding, and the ultimate controlling party is Zhu Zhongmin[468](index=468&type=chunk) Key Management Personnel Compensation | Item | Current Period Amount (CNY 10,000) | Prior Period Amount (CNY 10,000) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 629.72 | 583.76 | - During the reporting period, there were no related party transactions such as goods purchases/sales, provision/acceptance of services, entrusted management/contracting, leases, guarantees, fund borrowings, or asset transfers/debt restructuring[468](index=468&type=chunk)[469](index=469&type=chunk)[470](index=470&type=chunk)[472](index=472&type=chunk) [XV. Share-Based Payment](index=160&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company's equity-settled share-based payment targets directors, senior management, core technical personnel, and key employees, with fair value determined using the Black-Scholes model; current period share-based payment expense was **CNY 0.8382 million** - The company's equity-settled share-based payment targets directors, senior management, core technical personnel, and key employees[473](index=473&type=chunk) - The fair value of equity instruments on the grant date is calculated using the Black-Scholes model[473](index=473&type=chunk) Current Period Share-Based Payment Expense | Category of Grantee | Equity-Settled Share-Based Payment Expense (CNY) | | :--- | :--- | | Company Employees | 838,200.00 | | Total | 838,200.00 | [XVI. Commitments and Contingencies](index=161&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had notes receivable endorsed or discounted but not yet due amounting to **CNY 32,403,374.13**, constituting a significant contingency - As of June 30, 2025, the company had notes receivable endorsed or discounted but not yet due amounting to **CNY 32,403,374.13**[475](index=475&type=chunk) [XVII. Events After the Balance Sheet Date](index=161&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) From the end of the reporting period to the date of financial statement approval for issuance, the company had no significant non-adjusting events, profit distribution, or sales returns - From the end of the reporting period to the date of financial statement approval for issuance, the company had no significant non-adjusting events, profit distribution, or sales returns[475](index=475&type=chunk) [XIX. Notes to Parent Company Financial Statement Items](index=163&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures of the parent company's financial statement items' period-end balances, beginning balances, and current period changes, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income Parent Company Accounts Receivable by Aging | Aging | Period-End Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | | Within 1 Year (Inclusive) | 147,177,510.80 | 145,485,645.94 | | 1 to 2 Years | 25,585,386.05 | 13,290,459.89 | | 2 to 3 Years | 884,185.93 | 605,927.96 | | Over 3 Years | 2,101,658.34 | 2,073,458.00 | | Total | 175,748,741.12 | 161,455,491.79 | Parent Company Long-Term Equity Investments | Item | Period-End Book Value (CNY) | Beginning Book Value (CNY) | | :--- | :--- | :--- | | Investments in Subsidiaries | 11,088,210.80 | 11,000,000.00 | | Total | 11,088,210.80 | 11,000,000.00 | Parent Company Operating Revenue and Operating Costs | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 297,223,933.50 | 215,873,678.49 | 265,132,291.64 | 188,133,065.95 | | Other Businesses | 1,288,470.74 | 1,041,473.07 | 830,162.6

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。 证券代码：688129 证券简称：东来技术 公告编号：2025-030 东来涂料技术（上海）股份有限公司 关于 2025 年半年度募集资金存放与实际使用情况的 专项报告 一、募集资金基本情况 （一）实际募集资金金额、资金到位时间 根据 2020 年 9 月 8 日中国证券监督委员会《关于同意东来涂料技术（上 海）股份有限公司首次公开发行股票注册的批复》（证监许可〔2020〕2118 号），东来涂料技术（上海）股份有限公司（以下简称"公司"或"东来技术"）获 准首次向社会公众公开发行人民币普通股 30,000,000 股，每股面值为人民币 1.00 元 ， 发 行 价 格 为 每 股 人 民 币 15.22 元 / 股 ， 募 集 资 金 总 额 为 人 民 币 456,600,000.00 元，扣除发行费用人民币 49,508,571.90 元后，公司本次募集资 金净额为人民币 407,091,428.10 元。截至 2020 年 10 月 19 日，上述募集资金已 经全部到 ...

东来涂料技术（上海）股份有限公司 2025 年度"提质增效重回报"行动方案的半年度评估报告 为践行"以投资者为本"的上市公司发展理念，维护公司全体股东利益，东 来涂料技术（上海）股份有限公司（以下简称"公司"或"东来技术"）于 2025 年 4 月 26 日正式披露《东来涂料技术（上海）股份有限公司 2025 年度"提质增 效重回报"行动方案》（以下简称"《行动方案》"），回顾了 2024 年度"提质增效 重回报"行动方案的执行情况，并制定了 2025 年度"提质增效重回报"行动方 案主要举措。 为进一步落实有关安排，切实维护股东权益，公司对《行动方案》在报告期 内的执行情况进行全面评估，具体内容如下： 一、聚焦主营业务、提升核心竞争力的实施情况 （一）2025 年上半年经营成果 报告期内，公司实现营业收入 29,855.29 万元，同比增长 12.22%，主要原因 是坚持聚焦主业，持续开拓市场，保持了汽车新车内外饰件涂料的高速增长与汽 车 OEM 原厂涂料及汽车内外饰件涂料的稳定供货；归属于母公司所有者净利润 4,445.26 万元，同比增长 22.12%，主要得益于报告期内营业收入的增加，以及上 年同期资 ...

Group 1 - The company's operating revenue for the first half of 2025 reached 299 million yuan, representing a year-on-year growth of 12.22% [1] - The net profit for the same period was 44.4526 million yuan, showing a year-on-year increase of 22.12% [1]

Group 1 - On August 27, Donglai Technology executed a block trade of 500,000 shares, with a transaction value of 13.26 million yuan, accounting for 23.32% of the total transaction volume for that day [1] - The transaction price was 26.52 yuan, which represents a premium of 6.76% compared to the market closing price of 24.84 yuan [1] - The buying brokerage was Haitong Securities, while the selling brokerage was CITIC Securities [2]

Core Viewpoint - The company has adjusted the grant price of the 2024 restricted stock incentive plan following the completion of its mid-term and annual profit distribution plans, ensuring compliance with relevant regulations and maintaining shareholder interests [4][6][7]. Group 1: Decision-Making Process and Disclosure - The company held multiple meetings to review and approve the 2024 restricted stock incentive plan, including the draft and management measures [1][2]. - The independent directors collected proxy votes from shareholders for the plan, and the proposed list of incentive recipients was publicly disclosed without objections [2][3]. Group 2: Adjustment Reasons and Results - The adjustment of the grant price was necessitated by the implementation of cash dividends, which required recalculating the grant price according to the established formula [6]. - The adjusted grant price is approximately 10.67 yuan per share, down from the previous price of 10.88 yuan, after accounting for the cash dividends distributed [6]. Group 3: Impact of Adjustments - The adjustment of the grant price will not materially affect the company's financial status or operational results, and the incentive plan will continue to be implemented as planned [7]. Group 4: Committee and Legal Opinions - The remuneration and assessment committee approved the adjustment, confirming that the process adhered to legal and regulatory requirements [7]. - Legal opinions affirm that the adjustments and related actions comply with the relevant management measures and listing rules [7].