Core Viewpoint - The company,卓越新能, reported a decrease in revenue but an increase in net profit for the first half of 2025, indicating effective cost management and strategic market positioning [2]. Group 1: Financial Performance - The company achieved a sales volume of 150,700 tons of biodiesel and bio-based materials, with a revenue of 1.312 billion yuan, a year-on-year decrease of 32.12% [2]. - The net profit attributable to shareholders was 117 million yuan, reflecting a year-on-year increase of 16.01% [2]. Group 2: Biodiesel Sector - The company optimized product structure and controlled raw material costs, which helped mitigate market risks and prioritize profitability [3]. - The company is expanding its market presence in Europe and Southeast Asia, establishing deep partnerships with overseas clients [3]. - Ongoing projects include a 100,000-ton hydrocarbon-based biodiesel production line, which is in the pipeline installation phase, and a biodiesel production line in Thailand that has completed land leasing and is in the design phase [3]. Group 3: Bio-based Materials Sector - A 50,000-ton natural fatty alcohol production facility commenced operations in April, meeting high standards for surfactant raw materials [4]. - The company utilizes advanced technology to produce natural fatty alcohol, enhancing the application of biodiesel in bio-based chemicals and achieving domestic substitution [4]. - The company plans to expand production capacity based on operational performance and market demand [4]. - The company announced a fundraising plan to raise 300 million yuan for a new 100,000-ton hydrocarbon-based biodiesel project, with a total investment of 380 million yuan [4].

Core Viewpoint - The company,卓越新能, has experienced fluctuations in stock price and significant changes in financial performance, with a notable decrease in revenue but an increase in net profit for the first half of 2025 [1][3]. Group 1: Stock Performance - As of August 29, 2025,卓越新能's stock closed at 47.56 yuan, down 0.46% from the previous week [1]. - The stock reached a one-year high of 54.31 yuan on August 26, 2025, with a low of 47.2 yuan on August 29, 2025 [1]. - The current market capitalization is 5.707 billion yuan, ranking 70th out of 169 in the chemical products sector and 2958th out of 5152 in the A-share market [1]. Group 2: Shareholder Changes - As of June 30, 2025, the number of shareholders decreased to 4740, a reduction of 416 shareholders or 8.07% compared to March 31, 2025 [2][6]. - The average number of shares held per shareholder increased from 23,300 shares to 25,300 shares, with an average holding value of 1.217 million yuan [2]. Group 3: Financial Performance - The mid-year report for 2025 shows a total revenue of 1.312 billion yuan, a year-on-year decrease of 32.12% [3]. - The net profit attributable to shareholders was 117 million yuan, reflecting a year-on-year increase of 16.01% [3]. - The second quarter of 2025 reported a revenue of 603 million yuan, down 43.34% year-on-year, with a net profit of approximately 56.05 million yuan, a decrease of 22.3% [3]. Group 4: Company Announcements - On August 29, 2025, the company held its ninth meeting of the fifth supervisory board, approving the half-year report and the special report on the use of raised funds, confirming compliance and accuracy [4]. - The company received approval from the Shanghai Stock Exchange for a simplified procedure to issue shares to specific investors, pending registration with the China Securities Regulatory Commission [5][6].

Core Viewpoint - Longyan Zhuoyue New Energy Co., Ltd. has received approval from the Shanghai Stock Exchange for its application to issue shares to specific targets through a simplified procedure, pending final registration approval from the China Securities Regulatory Commission (CSRC) [1] Group 1 - The company’s application for issuing shares meets the conditions for issuance, listing, and information disclosure as per the Shanghai Stock Exchange's review [1] - The final decision and timing regarding the CSRC's approval for registration remain uncertain [1] - The company will fulfill its information disclosure obligations based on the progress of this matter [1]

格隆汇8月29日丨卓越新能(688196.SH)发布中报，2025上半年实现营业总收入13.12亿元，同比下降 32.12%；归属母公司股东净利润1.17亿元，同比增长16.01%；基本每股收益为0.98元。 ...

证券代码：688196 证券简称：卓越新能 公告编号：2025-034 龙岩卓越新能源股份有限公司 关于以简易程序向特定对象发行股票申请 公司本次以简易程序向特定对象发行股票事项尚需获得中国证券监督管理 委员会（以下简称"中国证监会"）作出同意注册的决定。最终能否获得中国 证监会同意注册的决定及其时间尚存在不确定性。公司将根据该事项的进展情 况及时履行信息披露义务，敬请广大投资者注意投资风险。。 特此公告。 龙岩卓越新能源股份有限公司（以下简称"公司"或"卓越新能"）于 2025 年 8 月 29 日收到上海证券交易所就公司以简易程序向特定对象发行股票 事项申请的审核意见，具体审核意见如下： "龙岩卓越新能源股份有限公司向特定对象发行股票申请符合发行条件、 上市条件和信息披露要求。本所将在收到你公司申请文件后提交中国证监会注 册。" 龙岩卓越新能源股份有限公司董事会 获得上海证券交易所审核通过的公告 2025 年 8 月 30 日 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。 1 ...

证券代码：688196 证券简称：卓越新能 公告编号：2025-032 龙岩卓越新能源股份有限公司 2025 年半年度募集资金存放与实际使用情况专项报告 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。 根据《上海证券交易所科创板上市公司自律监管指引第 1 号——规范运作》 的规定，将龙岩卓越新能源股份有限公司（以下简称"公司""）2025 年半年度 募集资金存放与使用情况报告如下： 一、募集资金基本情况 （一）募集资金金额及到位时间 经中国证券监督管理委员会证监许可〔2019〕1921 号文批准，公司获准向 社会公开发行人民币普通股（A 股）股票 30,000,000 股，每股发行价格为人民 币 42.93 元，募集资金总额 1,287,900,000.00 元，扣除承销及保荐费用、律师 费用、审计及验资费用、用于本次发行的信息披露费用、发行上市手续费及其他 费 用 （ 不 含 增 值 税 ） 87,003,779.25 元 后 ， 公 司 本 次 募 集 资 金 净 额 为 1,200,896,220.75 元。致同会计 ...

龙岩卓越新能源股份有限公司 第五届监事会第九次会议决议公告 本公司监事会及全体监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。 一、监事会会议召开情况 龙岩卓越新能源股份有限公司（以下简称"公司"）于 2025 年 8 月 29 日 在公司东宝生物能源分厂会议室以现场方式举行第五届监事会第九次会议（下 称"本次会议"）。本次会议通知已于 8 月 15 日通过专人送达方式发送给全体 监事。本次会议由监事会主席林春根先生主持，会议应到监事 3 名，实到监事 3 名，本次会议的召集、召开符合《公司法》等法律、法规、规范性文件和 《龙岩卓越新能源股份有限公司章程》的有关规定。 证券代码：688196 证券简称：卓越新能 公告编号：2025-033 经审核，监事会认为公司 2025 年半年度报告的编制和审核程序符合相关法 律法规和公司内部控制规章制度的规定；公司 2025 年半年度报告公允地反映了 本报告期的财务状况和经营成果；在半年度报告编制过程中，未发现公司参与 半年度报告编制和审议的人员有违反保密规定的行为；监事会全体成员承诺公 司所披露的信息真 ...

[Glossary](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This chapter defines common terms used in the report, including company names, product types, energy types, and certifications, to aid reader comprehension - The company's abbreviation is "Zhuoyue Xinneng", and its full name is "Longyan Zhuoyue New Energy Co., Ltd"[10](index=10&type=chunk) - Key products include ester-based biodiesel, hydrotreated vegetable oil (HVO), sustainable aviation fuel (SAF), bio-ester plasticizers, alkyd resins, glycerin, and natural fatty alcohols[10](index=10&type=chunk) - The reporting period is defined as January 1, 2025, to June 30, 2025[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This chapter presents the company's basic information and H1 2025 key financial indicators, showing a **32.12%** revenue decrease and **16.01%** net profit increase [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 the company's Chinese name, legal representative, addresses, and stock listing information - Company's full Chinese name: Longyan Zhuoyue New Energy Co., Ltd., abbreviation: Zhuoyue Xinneng[13](index=13&type=chunk) - The legal representative is Ye Huodong[13](index=13&type=chunk) - The company's shares are listed on the STAR Market of the Shanghai Stock Exchange, stock code 688196[16](index=16&type=chunk) [Contact Person 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 - The Board Secretary is Zheng Xuedong, and the Securities Affairs Representative is Yu Dandan[14](index=14&type=chunk) - Contact phone number is 0597-2342338, and email is zyxnyir@163.com[14](index=14&type=chunk) [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) This section details H1 2025 key accounting data and financial indicators, explaining a **32.12%** revenue decrease and **16.01%** net profit increase H1 2025 Key Accounting Data | Indicator | Current Period (Jan-Jun) (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,311,533,922.33 | 1,932,265,666.61 | -32.12 | | Total Profit | 116,370,788.22 | 104,748,209.41 | 11.10 | | Net Profit Attributable to Shareholders of Listed Company | 117,361,012.60 | 101,166,617.29 | 16.01 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 108,048,566.59 | 95,246,181.28 | 13.44 | | Net Cash Flow from Operating Activities | -31,327,487.37 | -34,588,488.92 | Not applicable | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 2,858,376,932.80 | 2,792,727,739.09 | 2.35 | | Total Assets (Period-end) | 3,639,977,599.03 | 3,566,311,420.24 | 2.07 | H1 2025 Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.98 | 0.84 | 16.67 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (CNY/share) | 0.90 | 0.79 | 13.92 | | Weighted Average Return on Net Assets (%) | 4.13 | 3.72 | Increase of 0.41 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 3.80 | 3.50 | Increase of 0.30 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 3.99 | 3.22 | Increase of 0.78 percentage points | - Operating revenue decreased by **32.12%** year-on-year, primarily due to a **37.55%** reduction in biodiesel sales volume, though the natural fatty alcohol production line contributed **CNY 82.2355 million** in revenue[20](index=20&type=chunk) - Net profit attributable to shareholders of the listed company increased by **16.01%** year-on-year, mainly due to the company's profit-first principle, reasonable control of raw material procurement costs, and increased gross profit from the natural fatty alcohol production line[20](index=20&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E5%85%AB%E3%80%81%E9%9D%9E%E5%B8%B8%E8%A7%84%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section details non-recurring gains and losses for the reporting period, totaling **CNY 9.31 million**, mainly from government subsidies and financial asset fair value changes Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 5,365,306.82 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 3,730,990.70 | | Other non-operating income and expenses apart from the above | 35,171.69 | | Less: Income tax impact | -180,976.80 | | **Total** | **9,312,446.01** | [Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This chapter details the company's industry, business, operations, core competencies, and risks, focusing on waste oil utilization and market expansion [Description of the Company's Industry and Main Business 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) This section describes the company's waste resource utilization industry and details its main products, including biodiesel, bio-ester plasticizers, and natural fatty alcohols - The company specializes in the resource utilization of waste oils, engaging in R&D and production of biodiesel and bio-based materials, belonging to the waste resource comprehensive utilization industry[24](index=24&type=chunk) - Key products include biodiesel (for power fuel and bio-based materials), bio-ester plasticizers (environmentally friendly plasticizers), industrial glycerin (chemical intermediate), environmentally friendly alkyd resins (paint film-forming base), and natural fatty alcohols (fine chemical raw materials for surfactants, plasticizers, etc)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Natural fatty alcohol is a new product focusing on bio-based materials, using natural waste vegetable oils as raw material, and commenced operations in **April 2025**[27](index=27&type=chunk)[35](index=35&type=chunk) [(III) Operating Model](index=9&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) This section describes the company's procurement, production, sales, and R&D models, emphasizing waste oil procurement, batch production, and independent R&D - Procurement Model: Established a stable and standardized waste oil procurement system covering China and Southeast Asia, adopting market-based pricing[28](index=28&type=chunk) - Production Model: Organizes large-scale batch production based on market demand and sales plans, with no outsourced production during the reporting period[29](index=29&type=chunk) - Sales Model: All products are sold on a buy-out basis, with biodiesel primarily exported (via Zhuoyue Netherlands and Zhuoyue Singapore), and bio-based materials sold directly domestically[30](index=30&type=chunk) - R&D Model: Core technologies are independently developed, with specialized technical collaborations with external research institutions and universities[31](index=31&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section discusses bioenergy opportunities and summarizes H1 2025 operations, including market expansion, new production line launch, and R&D progress - The bioenergy industry is entering a new period of development opportunities, benefiting from global decarbonization goals and the expansion of bio-based material applications[31](index=31&type=chunk) - In H1 2025, the company's biodiesel and bio-based material sales volume reached **150,700 tons**, operating revenue was **CNY 1.312 billion** (a **32.12%** year-on-year decrease), and net profit attributable to the parent company was **CNY 117 million** (a **16.01%** year-on-year increase)[32](index=32&type=chunk) - The biodiesel segment consolidated its European market, expanded into non-EU and Singapore marine fuel markets, with Singapore warehousing enhancing supply capacity; the main installation of the **100,000 tons/year** hydrotreated vegetable oil (SAF/HVO) production line is complete, and the Thailand biodiesel production line project has commenced[34](index=34&type=chunk) - The **50,000 tons/year** natural fatty alcohol production facility commenced operations in **April**, becoming a new profit growth driver[35](index=35&type=chunk) - Technology R&D focuses on efficient utilization of waste biomass resources, advanced bioliquid fuels, and high-performance bio-based new materials, participating in national key R&D programs and national standard drafting, with **21** new authorized patents[36](index=36&type=chunk) - Deepened supply chain informatization and intelligent control of production processes, enhancing efficiency and safe, clean production levels[37](index=37&type=chunk) [Analysis of Core Competencies During the Reporting Period](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) This section analyzes the company's core competencies, including technological leadership, production scale, raw material procurement, brand, sales, and professional team advantages - The company possesses a technological leadership advantage in waste oil-based bioenergy and bio-based material production, is a national high-tech enterprise, and undertakes multiple major national scientific research projects[38](index=38&type=chunk)[39](index=39&type=chunk) - Formed a "biomass energy-chemical integration" capacity layout centered on "bioenergy and bio-based materials," with biodiesel production capacity of **500,000 tons/year** and bio-based material capacity of **140,000 tons/year**[40](index=40&type=chunk) - Possesses a waste oil procurement network covering China and Southeast Asia, ensuring stable raw material supply and cost advantages[41](index=41&type=chunk) - Leveraging the European Zhuoyue Netherlands and Singapore Zhuoyue sales platforms, international competitiveness continues to improve, with service coverage across core markets in Europe and Southeast Asia[42](index=42&type=chunk) - Possesses an experienced management team and R&D staff, with ongoing strengthening of talent pipeline development[43](index=43&type=chunk) [(III) Core Technologies and R&D Progress](index=11&type=section&id=(%E4%B8%89)%20%E6%A0%B8%E5%BF%83%E6%8A%80%E6%9C%AF%E4%B8%8E%E7%A0%94%E5%8F%91%E8%BF%9B%E5%B1%95) This section outlines the company's advanced core technologies, intellectual property, R&D investment, and ongoing project progress during the reporting period - Core technologies include continuous preparation of high-quality ester-based biodiesel (transesterification rate up to **99%**), waste oil feedstock pretreatment for HVO production, waste oil-based HVO production combined with SAF, removal of trace organic impurities from fatty acid methyl esters, and decarbonylation refining of fatty alcohols[44](index=44&type=chunk)[45](index=45&type=chunk) - During the reporting period, the company made progress in energy-saving intelligence for ongoing projects, fatty acid methyl ester quality improvement, non-ionic surfactant development, optimization of fatty alcohol decarbonylation refining, and increased yield of ester-based biodiesel[47](index=47&type=chunk) Intellectual Property Acquired During the Reporting Period | Type of Intellectual Property | New Acquisitions This Period (units) | Cumulative Acquisitions (units) | | :--- | :--- | :--- | | Invention Patents | 4 | 24 | | Utility Model Patents | 17 | 201 | | **Total** | **21** | **225** | R&D Investment Status | Indicator | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 52,361,926.21 | 62,157,992.16 | -15.76 | | Total R&D Investment | 52,361,926.21 | 62,157,992.16 | -15.76 | | Total R&D Investment as Percentage of Operating Revenue (%) | 3.99 | 3.22 | Increase of 0.77 percentage points | - Total R&D investment decreased by **15.76%**, mainly due to lower prices of direct input materials[49](index=49&type=chunk) - Ongoing R&D projects include high-performance synthetic resins, biomass-derived sustainable advanced fuels, comprehensive utilization of biomass resources, bio-based environmentally friendly resin preparation and application, intelligent automation control technology, bio-based green chemical development, high-performance liquid fuel development, and research on bio-fuel production from various waste oil sources[51](index=51&type=chunk) - The number of R&D personnel is **111**, accounting for **19.37%** of the company's total employees[53](index=53&type=chunk) [Risk Factors](index=14&type=section&id=%E5%9B%9B%E3%80%81%E9%A3%8E%E9%99%A9%E5%9B%A0%E7%B4%A0) This section identifies core competency, operational, and industry risks, including technological obsolescence, raw material price volatility, and export business changes - Core Competitiveness Risk: Failure to timely grasp technological trends or lagging product quality improvements may result in loss of industry leadership[54](index=54&type=chunk) - Raw Material Procurement Risk: Waste oil prices are highly volatile, influenced by crude oil and vegetable oil prices, and diversion to other sectors, posing price risks[54](index=54&type=chunk) - Export Business Fluctuation Risk: High proportion of export business means changes in EU trade policies, anti-dumping measures, and qualification renewals could adversely affect profitability[56](index=56&type=chunk) - Management Risk: Rapid growth in operational scale increases the difficulty of business decision-making and risk control[57](index=57&type=chunk) - Talent Shortage Risk: With capacity expansion and market promotion, the company faces the risk of insufficient talent reserves for technical and management positions[58](index=58&type=chunk) - Environmental and Safety Production Risk: Production processes involve flammable and corrosive materials, posing risks of accidental incidents[59](index=59&type=chunk) - Industry Risk: Breakthroughs in new energy technologies could impact the existing energy structure, and industry competition is intensifying[60](index=60&type=chunk) [(I) Analysis of Main Business](index=15&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) This section analyzes changes in key financial statement items, noting a **32.12%** revenue decrease, **34.9%** cost decrease, and **2165.52%** investment income surge Analysis of Changes in Financial Statement Items | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,311,533,922.33 | 1,932,265,666.61 | -32.12 | | Operating Cost | 1,178,087,068.27 | 1,809,718,048.94 | -34.90 | | Selling Expenses | 21,616,921.06 | 20,759,567.48 | 4.13 | | Administrative Expenses | 25,182,030.44 | 23,342,549.37 | 7.88 | | Financial Expenses | -20,335,204.49 | -31,887,872.48 | 36.23 | | R&D Expenses | 52,361,926.21 | 62,157,992.16 | -15.76 | | Investment Income | 5,049,996.02 | 222,906.95 | 2,165.52 | | Net Cash Flow from Operating Activities | -31,327,487.37 | -34,588,488.92 | Not applicable | | Net Cash Flow from Investing Activities | 272,784,059.92 | -53,656,548.29 | Not applicable | | Net Cash Flow from Financing Activities | -84,077,033.56 | 117,125,585.82 | Not applicable | - The decrease in operating revenue was primarily due to lower biodiesel sales volume, but the commencement of natural fatty alcohol production improved the overall gross profit margin[63](index=63&type=chunk) - The decrease in operating costs was greater than that of revenue, mainly benefiting from reasonable control of raw material procurement costs and refined management[64](index=64&type=chunk) - Investment income surged by **2165.52%**, primarily due to increased investment income from transactional financial assets such as wealth management and foreign exchange transactions[64](index=64&type=chunk) - Net cash flow from investing activities turned positive, mainly due to the maturity and realization of wealth management products and large-denomination certificates of deposit[64](index=64&type=chunk) [(III) Analysis of Assets and Liabilities](index=16&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) This section analyzes changes in assets and liabilities, noting increases in cash and inventories, decreases in financial assets and construction in progress, with overseas assets at **24.71%** of total Changes in Assets and Liabilities | Item Name | Current Period-end Amount (CNY) | Percentage of Total Assets at Current Period-end (%) | Prior Year-end Amount (CNY) | Percentage of Total Assets at Prior Year-end (%) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 428,638,563.73 | 11.77 | 263,587,545.61 | 7.39 | 62.62 | Collection of wealth management funds | | Transactional Financial Assets | 23,532,264.06 | 0.65 | 275,737,080.50 | 7.73 | -91.47 | Decrease in wealth management products | | Accounts Receivable | 27,465,878.39 | 0.75 | 46,690,083.14 | 1.31 | -41.17 | Collection of prior period accounts receivable | | Other Receivables | 115,750,436.57 | 3.18 | 71,419,442.42 | 2.00 | 62.07 | Increase in VAT immediate refund receivables | | Inventories | 1,121,397,843.66 | 30.81 | 952,616,548.34 | 26.71 | 17.72 | Growth in raw materials and finished goods held in transit overseas | | Fixed Assets | 725,071,369.01 | 19.91 | 574,395,214.65 | 16.11 | 26.23 | Capitalization of fatty alcohol production line from construction in progress | | Construction in Progress | 250,802,883.56 | 6.89 | 291,814,191.16 | 8.18 | -14.05 | Capitalization of construction in progress | | Short-term Borrowings | 214,665,107.00 | 5.90 | 197,482,492.32 | 5.54 | 8.70 | New borrowings | | Long-term Borrowings | 222,400,000.00 | 6.11 | 326,350,000.00 | 9.15 | -31.85 | Reclassification of long-term borrowings due within one year | | Deferred Income | 32,315,055.30 | 0.89 | 15,498,904.94 | 0.43 | 1.08 | New government grants | - Overseas assets totaled **CNY 902,823,010.96**, accounting for **24.71%** of total assets, primarily finished goods held for sale in the Netherlands and Singapore[68](index=68&type=chunk)[71](index=71&type=chunk) Financial Performance of Overseas Subsidiaries | Overseas Asset Name | Operating Model | Operating Revenue This Period (CNY) | Net Profit This Period (CNY) | | :--- | :--- | :--- | :--- | | Zhuoyue Netherlands | Independent operation | 952,963,338.11 | -3,765,233.34 | | Zhuoyue Singapore | Independent operation | 65,372,050.28 | -11,173,168.23 | | Zhuoyue Thailand | Independent operation | - | -794,402.13 | - At period-end, major restricted assets were cash and cash equivalents of **CNY 9,318,500.00**, including ETC deposits and letter of guarantee deposits[72](index=72&type=chunk) [(IV) Analysis of Investment Status](index=19&type=section&id=(%E5%9B%9B)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) This section discloses financial assets measured at fair value, totaling **CNY 23,532,264.06** at period-end, a **91.47%** decrease from the beginning of the period Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Fair Value Change Gains/Losses This Period (CNY) | Purchases This Period (CNY) | Sales/Redemptions This Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wealth Management Products | 275,473,877.53 | - | 25,000,000.00 | 275,473,877.53 | 25,228,020.01 | | Forward Foreign Exchange Contracts | 263,202.97 | -1,695,755.95 | - | 263,202.97 | -1,695,755.95 | | **Total** | **275,737,080.50** | **-1,695,755.95** | **25,000,000.00** | **275,737,080.50** | **23,532,264.06** | - Investment amount decreased compared to the prior year, with the change percentage not applicable[74](index=74&type=chunk) [Analysis of Major Holding and Associate Companies](index=20&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section lists basic information and financial data for the company's major holding and associate companies Financial Data of Major Holding and Associate Companies | Company Name | Company Type | Main Business | Registered Capital | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen Zhuoyue Biomass Energy Co., Ltd. | Subsidiary | Biodiesel production and sales | CNY 46 million | 464,781,932.07 | 274,343,436.79 | 286,779,758.57 | 20,703,969.60 | | Fujian Zhishang Biomass Material Development Co., Ltd. | Subsidiary | Bio-ester plasticizer production and sales | CNY 10 million | 90,907,667.04 | 90,627,473.24 | 4,211,121.61 | -2,024,280.12 | | Longyan Zhuoyue Bio-based Materials Co., Ltd. | Subsidiary | Bio-based material production and sales | CNY 50 million | 124,611,917.21 | 120,153,847.82 | 40,793,510.51 | 4,267,269.52 | | Longyan Zhuoyue Synthetic Resin Co., Ltd. | Subsidiary | Synthetic resin production and sales | CNY 50 million | 4,296,547.23 | 4,296,547.23 | - | -1,396.80 | | Longyan Zhishang New Materials Co., Ltd. | Subsidiary | New material production and sales | CNY 100 million | 550,678.29 | 550,615.29 | - | -12.98 | | Zhuoyue New Energy (Singapore) Pte. Ltd. | Subsidiary | International trade, wholesale, and retail of biofuels | USD 1.5 million | 385,244,205.80 | 196,097,055.79 | 65,372,050.28 | -11,173,168.23 | | Zhuoyue New Energy (Netherlands) B.V. | Subsidiary | International trade, wholesale, and retail of biofuels | EUR 0.5 million | 489,274,329.35 | 23,959,949.59 | 952,963,338.11 | -3,765,233.34 | | Zhuoyue New Energy (Thailand) Co., Ltd. | Associate | International trade, wholesale, and retail of biofuels | THB 500 million | 28,304,475.80 | 26,648,477.35 | - | -794,402.13 | | Longyan Zhuoyue Energy Engineering Technology Co., Ltd. | Subsidiary | Import and export of goods and engineering technical services | CNY 10 million | 46,919,896.22 | 10,974,907.71 | 3,117,141.59 | 384,019.94 | [Corporate Governance, Environment and Society](index=22&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This chapter addresses changes in directors, supervisors, senior management, and core technical personnel, and profit distribution or capital reserve capitalization plans [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=22&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%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, there were no changes in the company's directors, supervisors, senior management, or core technical personnel - During the reporting period, there were no changes in the company's directors, supervisors, senior management, or core technical personnel[78](index=78&type=chunk) [Profit Distribution or Capital Reserve Capitalization Plan](index=22&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) During the reporting period, the company had no applicable profit distribution plan or capital reserve capitalization plan - The company's proposed semi-annual profit distribution or capital reserve capitalization plan is "No," meaning no bonus shares, cash dividends, or capitalization of reserves are applicable[78](index=78&type=chunk) [Significant Matters](index=23&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This chapter discloses the fulfillment of commitments, absence of major litigation, good faith of controlling shareholders, and detailed progress on the use of raised funds [Fulfillment of Commitments](index=23&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) This section discloses commitments by controlling shareholders and the company regarding horizontal competition, related party transactions, and dividend returns, all strictly fulfilled - Controlling shareholders and actual controllers committed to resolving horizontal competition, ensuring no engagement in businesses identical or similar to the company's, which remains long-term effective and was strictly fulfilled during the reporting period[82](index=82&type=chunk)[83](index=83&type=chunk) - Controlling shareholders and actual controllers committed to standardizing related party transactions, conducted on fair and equitable principles, which remains long-term effective and was strictly fulfilled during the reporting period[83](index=83&type=chunk)[84](index=84&type=chunk) - The company committed to strictly implementing its profit distribution policy, fully safeguarding shareholder interests, which remains long-term effective and was strictly fulfilled during the reporting period[84](index=84&type=chunk) [Major Litigation and Arbitration Matters](index=27&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 - The company had no major litigation or arbitration matters during this reporting period[86](index=86&type=chunk) [Explanation of the Company's and its Controlling Shareholders' and Actual Controllers' Integrity Status During the Reporting Period](index=27&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled obligations or large overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled obligations from effective court judgments or large overdue debts[86](index=86&type=chunk) [Explanation of Progress in Use of Raised Funds](index=29&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) This section details the use of IPO funds and specific investment projects, with **CNY 1,031.7703 million** cumulatively invested, reaching **85.92%** progress Overall Use of Raised Funds | Source of Raised Funds | Net Amount of Raised Funds (CNY 10k) | Total Committed Investment (CNY 10k) | Total Over-Raised Funds (CNY 10k) | Cumulative Raised Funds Invested as of Period-end (CNY 10k) | Cumulative Over-Raised Funds Invested as of Period-end (CNY 10k) | Cumulative Investment Progress of Raised Funds (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 120,089.62 | 73,600.00 | 46,489.62 | 103,177.03 | 37,955.29 | 85.92 | Detailed Use of Raised Funds Investment Projects | Project Name | Planned Total Investment of Raised Funds (CNY 10k) | Amount Invested This Year (CNY 10k) | Cumulative Investment Amount (CNY 10k) | Cumulative Investment Progress (%) | Intended Goal | | :--- | :--- | :--- | :--- | :--- | :--- | | 100,000 tons/year Biodiesel (Non-Grain) and 50,000 tons/year Natural Fatty Alcohol Project | 56,100.00 | 3,562.56 | 48,537.94 | 86.52 | Production application | | Technology R&D Center Construction Project | 7,500.00 | - | 6,683.80 | 89.12 | R&D achievements | | Replenishment of Working Capital | 10,000.00 | - | 10,000.00 | 100.00 | Replenish working capital and repay loans | | Repayment of Bank Loans | 3,500.00 | - | 3,500.00 | 100.00 | Replenish working capital and repay loans | | New 100,000 tons/year Biodiesel Production Line Project | 10,000.00 | - | 9,545.09 | 95.45 | Production construction | | 100,000 tons/year Hydrotreated Vegetable Oil Production Line | 32,989.62 | 9,381.57 | 24,910.21 | 75.51 | Production construction | | **Total** | **120,089.62** | **12,944.13** | **103,177.03** | **-** | **-** | - Over-raised funds were primarily used for repaying bank loans (**CNY 35 million**, **100%** invested) and the new **100,000 tons/year** hydrotreated vegetable oil production line project (**CNY 329.8962 million**, with **CNY 249.1021 million** invested, **75.51%** progress)[93](index=93&type=chunk) - At the end of the reporting period, the company's cash management balance using idle raised funds was **CNY 240 million**, not exceeding the authorized limit[96](index=96&type=chunk) [Events After the Balance Sheet Date](index=143&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) This section discloses a proposed share issuance approved by the board and accepted by the SSE after the balance sheet date, pending regulatory approval - The company approved a proposal to issue shares to specific targets via a simplified procedure on **July 8, 2025**, which was accepted by the Shanghai Stock Exchange on **August 18, 2025**, and is pending regulatory approval[438](index=438&type=chunk) [Share Changes and Shareholder Information](index=32&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This chapter discloses that the company's share capital structure remained unchanged and details shareholder information, including total shareholders and top ten holdings [Changes in Share Capital](index=32&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 shares or share capital structure - During the reporting period, there were no changes in the company's total ordinary shares or share capital structure[98](index=98&type=chunk) [Shareholder Information](index=33&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of period-end, the company had **4,740** ordinary shareholders, with the top two holding **75%** of shares - As of the period-end, the total number of ordinary shareholders was **4,740**[100](index=100&type=chunk) Top Ten Shareholders' Holdings as of Period-end | Shareholder Name | Number of Shares Held at Period-end (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Longyan Zhuoyue Investment Co., Ltd. | 58,500,000 | 48.75 | Domestic non-state-owned legal person | | Hong Kong Zhuoyue International Holdings Ltd. | 31,500,000 | 26.25 | Overseas legal person | | China Construction Bank Corporation - Baoying Emerging Industry Flexible Allocation Mixed Securities Investment Fund | 1,264,230 | 1.05 | Domestic non-state-owned legal person | | Yin Xiaoming | 1,090,000 | 0.91 | Overseas natural person | | Zhang Jianfang | 880,000 | 0.73 | Domestic natural person | | China CITIC Bank Corporation - Fullgoal Cycle Select Three-Year Holding Mixed Securities Investment Fund | 636,196 | 0.53 | Domestic non-state-owned legal person | | Bank of China Limited - Baoying Development New Momentum Stock Securities Investment Fund | 411,652 | 0.34 | Domestic non-state-owned legal person | | Taikang Life Insurance Co., Ltd. - Investment-Linked - Industry Allocation | 405,769 | 0.34 | Domestic non-state-owned legal person | | China Merchants Bank Co., Ltd. - Fullgoal Tianhe Stable Preferred Mixed Securities Investment Fund | 310,246 | 0.26 | Domestic non-state-owned legal person | | Shanghai Songxi Private Equity Fund Management Partnership (Limited Partnership) - Songxi Xiaoxi Private Securities Investment | 305,424 | 0.25 | Domestic non-state-owned legal person | - Longyan Zhuoyue Investment Co., Ltd., Hong Kong Zhuoyue International Holdings Ltd., Ye Huodong, Luo Chunmei, and Ye Shaojing are parties acting in concert; Ye Huodong and Luo Chunmei are a married couple, and Ye Shaojing is their daughter, with all three being the company's actual controllers[104](index=104&type=chunk) [Bond-Related Information](index=36&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This chapter states that the company had no corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[108](index=108&type=chunk) - During the reporting period, the company had no convertible corporate bonds[108](index=108&type=chunk) [Financial Report](index=37&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This chapter includes the company's H1 2025 consolidated and parent company financial statements, which are unaudited and detail basic information, accounting policies, and financial item changes [Audit Report](index=37&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) [Financial Statements](index=37&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 financial statements, reflecting period-end financial position and operational results - Financial statements include the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Owner's Equity, and Parent Company Statement of Changes in Owner's Equity[110](index=110&type=chunk)[115](index=115&type=chunk)[118](index=118&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk)[127](index=127&type=chunk)[129](index=129&type=chunk)[135](index=135&type=chunk) - The financial statements were approved for issuance by the Board of Directors' resolution on **August 29, 2025**[140](index=140&type=chunk) [Company Basic Information](index=54&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section introduces the company's history, registered capital, stock listing, industry, and main business activities - The company's predecessor was Longyan Zhuoyue New Energy Development Co., Ltd., established in **November 2001**[139](index=139&type=chunk) - On **November 21, 2019**, the company's shares were listed and traded on the STAR Market of the Shanghai Stock Exchange, stock code "688196," with share capital increasing to **120 million shares** after the offering and listing[140](index=140&type=chunk) - The company operates in the waste resource comprehensive utilization industry, with its main business activities being biodiesel technology development, production and sales, and bio-based material manufacturing[140](index=140&type=chunk) [Basis of Preparation of Financial Statements](index=54&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) The financial statements are prepared on a going concern basis, adhering to accounting standards, with no issues affecting future operations - The financial statements are prepared on a going concern basis, complying with enterprise accounting standards[141](index=141&type=chunk)[144](index=144&type=chunk) - The company assessed its ability to continue as a going concern for the next **12 months** and found no matters affecting its going concern ability[142](index=142&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=54&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 various financial aspects, from accounting periods to government grants and leases - The company's accounting year runs from **January 1 to December 31** of the Gregorian calendar, with a normal operating cycle of **one year**, and the functional currency is RMB[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - Financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in current profit or loss, and measured at fair value with changes recognized in other comprehensive income[168](index=168&type=chunk) - For notes receivable, accounts receivable, and receivables financing, loss provisions are measured at the expected credit loss over the entire lifetime, regardless of the presence of a significant financing component[175](index=175&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **20-30 years** for buildings and structures, and **5-10 years** for machinery and equipment[209](index=209&type=chunk) - R&D expenditures are divided into research and development phases; development phase expenditures are capitalized as intangible assets when specific conditions are met[216](index=216&type=chunk) - Revenue is recognized when the customer obtains control of the related goods; domestic sales are recognized upon delivery and acceptance by the customer, while export sales are recognized upon export customs declaration and issuance of a bill of lading by a third party[226](index=226&type=chunk)[230](index=230&type=chunk) - Government grants are classified into asset-related and income-related categories, recognized as deferred income or directly in current profit or loss, respectively[231](index=231&type=chunk) [Taxes](index=80&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main tax types, rates, and incentives, including a **15%** corporate income tax rate and **70%** VAT refund for biodiesel Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 9%、13% | | Urban Maintenance and Construction Tax | Taxable Turnover Tax Amount | 5%、7% | | Corporate Income Tax | Taxable Income | 15%、20%、25% etc | - The company, Xiamen Zhuoyue Biomass Energy Co., Ltd., and Longyan Zhuoyue Bio-based Materials Co., Ltd., as high-tech enterprises, enjoy a **15%** preferential corporate income tax rate[248](index=248&type=chunk)[249](index=249&type=chunk) - Longyan Zhuoyue Synthetic Resin Co., Ltd. and Longyan Zhishang New Materials Co., Ltd., meeting the criteria for small and micro enterprises, enjoy a corporate income tax policy of calculating taxable income at **25%** and paying tax at a **20%** rate[249](index=249&type=chunk) - The company and its subsidiary Xiamen Zhuoyue Biomass Energy Co., Ltd. enjoy a **70%** VAT refund policy and consumption tax exemption for sales of self-produced biodiesel and industrial mixed oil[250](index=250&type=chunk) [Notes to Consolidated Financial Statement Items](index=81&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on consolidated financial statement items, explaining period-end balances, changes, and their reasons - Cash and cash equivalents at period-end totaled **CNY 428,638,563.73**, with overseas funds amounting to **CNY 263,015,041.11**[252](index=252&type=chunk) - Transactional financial assets at period-end totaled **CNY 23,532,264.06**, a **91.47%** decrease from the beginning of the period, mainly due to a reduction in unexpired wealth management products[254](index=254&type=chunk) - Accounts receivable at period-end totaled **CNY 27,465,878.39**, a **41.17%** decrease from the beginning of the period, mainly due to the collection of prior period accounts receivable[264](index=264&type=chunk) - Inventories at period-end totaled **CNY 1,121,397,843.66**, a **17.72%** increase from the beginning of the period, mainly due to growth in raw materials and finished goods held in transit overseas[288](index=288&type=chunk) - Fixed assets book value at period-end totaled **CNY 725,071,369.01**, a **26.23%** increase from the beginning of the period, mainly due to the capitalization of the fatty alcohol production line from construction in progress[303](index=303&type=chunk) - Construction in progress at period-end totaled **CNY 250,802,883.56**, a **14.05%** decrease from the beginning of the period, mainly due to the capitalization of construction in progress[311](index=311&type=chunk) - Operating revenue for the current period was **CNY 1,311,533,922.33**, and operating cost was **CNY 1,178,087,068.27**[365](index=365&type=chunk) - Investment income for the current period was **CNY 5,049,996.02**, a **2165.52%** increase from the prior period, mainly due to gains from the disposal of transactional financial assets[377](index=377&type=chunk) - Net cash flow from operating activities was **CNY -31,327,487.37**, net cash flow from investing activities was **CNY 272,784,059.92**, and net cash flow from financing activities was **CNY -84,077,033.56**[394](index=394&type=chunk) [R&D Expenditures](index=129&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) This section lists the composition of R&D expenditures by nature of expense for the reporting period, totaling **CNY 52,361,926.21** R&D Expenditures by Nature of Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Material Costs | 41,436,369.18 | 49,071,503.75 | | Personnel Expenses | 6,242,924.95 | 8,298,167.73 | | Depreciation and Amortization | 4,487,018.32 | 4,540,085.08 | | Other | 195,613.76 | 248,235.60 | | **Total** | **52,361,926.21** | **62,157,992.16** | - Expensed R&D expenditures for the current period totaled **CNY 52,361,926.21**, with no capitalized R&D expenditures[401](index=401&type=chunk) [Changes in Consolidation Scope](index=129&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 or subsidiary disposals - During the reporting period, the company had no changes in consolidation scope due to business combinations not involving entities under common control, business combinations involving entities under common control, reverse acquisitions, or disposal of subsidiaries[402](index=402&type=chunk)[403](index=403&type=chunk) [Interests in Other Entities](index=130&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 details the enterprise group's composition, including subsidiaries' operating locations, capital, business, and shareholdings, plus immaterial joint venture financials Composition of the Enterprise Group (Major Subsidiaries) | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding Percentage (%) | Method of Acquisition | | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen Zhuoyue Biomass Energy Co., Ltd. | Xiamen | CNY 46 million | Biodiesel production and sales | 100 (Direct) | Acquired under common control | | Fujian Zhishang Biomass Material Development Co., Ltd. | Longyan | CNY 10 million | Bio-ester plasticizer production and sales | 100 (Direct) | Acquired under common control | | Longyan Zhuoyue Bio-based Materials Co., Ltd. | Longyan | CNY 50 million | Bio-based material production and sales | 88.0624 (Direct), 11.9376 (Indirect) | Newly established | | Longyan Zhuoyue Synthetic Resin Co., Ltd. | Longyan | CNY 50 million | Synthetic resin production and sales | 100 (Direct) | Newly established | | Longyan Zhishang New Materials Co., Ltd. | Longyan | CNY 100 million | New material production and sales | 100 (Direct) | Newly established | | Zhuoyue New Energy (Singapore) Pte. Ltd. | Singapore | USD 1.5 million | International trade, wholesale, and retail of biofuels | 100 (Direct) | Newly established | | Zhuoyue New Energy (Netherlands) B.V. | Netherlands | EUR 0.5 million | International trade, wholesale, and retail of biofuels | 100 (Direct) | Newly established | | Zhuoyue New Energy (Thailand) Co., Ltd. | Thailand | THB 500 million | International trade, wholesale, and retail of biofuels | 100 (Indirect) | Newly established | | Longyan Zhuoyue Energy Engineering Technology Co., Ltd. | Longyan | CNY 10 million | Import and export of goods and engineering technical services | 100 (Direct) | Newly established | Summarized Financial Information of Immaterial Joint Ventures | Item | Period-end Balance/Current Period Amount (CNY) | Beginning Balance/Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Carrying Amount of Investment | 2,207,299.90 | 2,331,359.62 | | Net Profit | -124,059.72 | -268,590.37 | | Total Comprehensive Income | -124,059.72 | -268,590.37 | [Government Grants](index=133&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section discloses government grants recognized as receivables totaling **CNY 113,371,583.65** and related liability items - Government grants recognized as receivables at period-end totaled **CNY 113,371,583.65**[409](index=409&type=chunk) Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (CNY) | New Grants This Period (CNY) | Recognized in Other Income This Period (CNY) | Period-end Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 12,212,207.40 | 17,500,000.00 | 683,849.64 | 29,028,357.76 | Asset-related | | Deferred Income | 3,286,697.54 | - | - | 3,286,697.54 | Income-related | | **Total** | **15,498,904.94** | **17,500,000.00** | **683,849.64** | **32,315,055.30** | **-** | - Government grants recognized in current profit or loss for this period totaled **CNY 73,576,050.13**[411](index=411&type=chunk) [Risks Related to Financial Instruments](index=134&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) This section describes the company's credit, liquidity, and market risks (foreign exchange, interest rate) and their management policies - The company faces credit risk (cash and cash equivalents, notes receivable, accounts receivable, etc.), liquidity risk, and market risks (foreign exchange risk, interest rate risk)[412](index=412&type=chunk) - Credit risk is managed by assessing customer creditworthiness and regularly monitoring credit records[413](index=413&type=chunk) - Liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs, ensuring ample cash reserves and marketable securities[416](index=416&type=chunk) - Foreign exchange risk is mitigated by closely monitoring exchange rate fluctuations and opportunistically engaging in forward foreign exchange and foreign currency option transactions[420](index=420&type=chunk) - Interest rate risk primarily arises from interest-bearing debts such as long-term bank borrowings, which the company manages by monitoring interest rate levels and adjusting the proportion of fixed/floating rate debt[420](index=420&type=chunk) [Disclosure of Fair Value](index=138&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) This section discloses the period-end fair value of assets and liabilities measured at fair value, primarily transactional financial assets totaling **CNY 23,532,264.06** 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) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | :--- | | I. Recurring Fair Value Measurements | - | 23,532,264.06 | - | 23,532,264.06 | | (I) Transactional Financial Assets | - | 23,532,264.06 | - | 23,532,264.06 | | 1. Financial assets measured at fair value with changes recognized in current profit or loss | - | 23,532,264.06 | - | 23,532,264.06 | | Total assets measured at recurring fair value | - | 23,532,264.06 | - | 23,532,264.06 | - Transactional financial assets (wealth management products and forward foreign exchange contracts) are valued using the discounted cash flow method, with inputs including expected interest rates, contractual interest rates, and discount rates reflecting issuer credit risk[424](index=424&type=chunk) - The carrying amounts of financial assets and liabilities not measured at fair value are very close to their fair values[425](index=425&type=chunk) [Related Parties and Related Party Transactions](index=139&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section discloses the company's related parties, key management compensation, and amounts payable to related parties, identifying the ultimate controlling parties - The parent company is Longyan Zhuoyue Investment Co., Ltd., with a shareholding percentage of **48.75%**[427](index=427&type=chunk) - The ultimate controlling parties are Ye Huodong and Luo Chunmei, a married couple, and their daughter Ye Shaojing, who indirectly hold **75%** of the company's equity through Longyan Zhuoyue Investment Co., Ltd. and Hong Kong Zhuoyue International Holdings Ltd., acting in concert[428](index=428&type=chunk) - Key management personnel compensation for the current period amounted to **CNY 4.0121 million**[431](index=431&type=chunk) - Amounts payable to related parties at period-end primarily consisted of dividends payable to Hong Kong Zhuoyue International Holdings Ltd. of **CNY 14,963,867.96**[434](index=434&type=chunk) [Commitments and Contingencies](index=142&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) This section discloses the company's significant external commitments, including several investment projects, and contingencies like issued guarantees - The company plans to invest **CNY 380 million** in a "New **100,000 tons/year** Hydrotreated Vegetable Oil and **50,000 tons/year** Fatty Acid Project"[435](index=435&type=chunk) - The company plans to invest **CNY 500 million** in a "**100,000 tons/year** Synthetic Resin Project"[435](index=435&type=chunk) - The company plans to invest **SGD 50 million** in Singapore for a "**200,000 tons/year** Biodiesel Project"[436](index=436&type=chunk) - The company plans to invest **CNY 700 million** in Thailand for a "Bioenergy Production Line Project," including a **300,000 tons/year** biodiesel and **100,000 tons/year** HVO/SAF co-production facility[436](index=436&type=chunk) - As of **June 30, 2025**, the company had outstanding guarantees totaling **CNY 14.0891 million**[437](index=437&type=chunk) [Other Significant Matters](index=143&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section discloses the company's reporting segment determination, accounting policies, and geographical information on external transaction revenue - The company's operations are divided into four reporting segments: biodiesel, bio-ester plasticizers, industrial glycerin, and alkyd resins[440](index=440&type=chunk) External Transaction Revenue from Products and Services | Item | Reporting Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Biodiesel | 1,066,699,730.94 | 1,850,271,083.99 | | Industrial Glycerin | 17,945,432.12 | 29,705,426.69 | | Bio-ester Plasticizers | 4,206,699.77 | 24,103,754.95 | | Environmentally Friendly Alkyd Resins | 20,113,534.53 | 19,586,816.35 | | Mixed Fatty Acids and Oils | 116,248,274.95 | - | | Natural Fatty Alcohols | 82,235,521.67 | - | | Waste Sales and Other | 4,084,728.34 | 8,598,584.63 | | **Total** | **1,311,533,922.32** | **1,932,265,666.61** | Geographical Information (External Transaction Revenue and Non-Current Assets) | Item | Domestic (CNY) | Overseas (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | External Transaction Revenue | 171,986,129.42 | 1,139,547,792.90 | 1,311,533,922.32 | | Non-Current Assets | 1,438,951,970.88 | 83,002,009.06 | 1,521,953,979.94 | [Notes to Parent Company Financial Statement Items](index=146&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key parent company financial statement items, explaining period-end balances, changes, and their reasons - Parent company accounts receivable at period-end totaled **CNY 413,670,123.58**, an increase of **29.48%** from the beginning of the period[451](index=451&type=chunk) - Parent company other receivables at period-end totaled **CNY 117,015,180.37**, an increase of **63.76%** from the beginning of the period, mainly due to increased VAT immediate refund receivables and intercompany balances within the consolidation scope[462](index=462&type=chunk) - Parent company investment in subsidiaries at period-end totaled **CNY 375,636,247.71**, with an increase of **CNY 18,686,720.00** this period, primarily due to additional investment in Zhuoyue Singapore[470](index=470&type=chunk) - Parent company operating revenue for the current period was **CNY 995,706,930.26**, and operating cost was **CNY 905,920,487.48**[473](index=473&type=chunk) - Parent company investment income for the current period was **CNY 5,080,892.11**, a significant increase from the prior period, mainly due to gains from the disposal of transactional financial assets[476](index=476&type=chunk) [Supplementary Information](index=154&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides supplementary information, including a detailed statement of non-recurring gains and losses and return on net assets and EPS Details of Non-Recurring Gains and Losses for the Current Period | Item | Amount (CNY) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 5,365,306.82 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 3,730,990.70 | | Other non-operating income and expenses apart from the above | 35,171.69 | | Less: Income tax impact | -180,976.80 | | **Total** | **9,312,446.01** | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (CNY/share) | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | 4.13 | 0.98 | | Net Profit Attributable to Ordinary Shareholders of the Company After Deducting Non-Recurring Gains and Losses | 3.80 | 0.90 |

Investment Rating - The report maintains a "Buy" rating for key companies in the chemical industry, specifically recommending Shengquan Group, Hailide, Zhuoyue New Energy, and Ruile New Materials [4][5]. Core Insights - The report emphasizes the importance of focusing on companies with strong performance in the first half of the year, particularly those that are less correlated with macroeconomic fluctuations and benefit from ongoing AI capital investments [1][2]. - The phosphate fertilizer export window is expected to remain open, with high demand anticipated to continue, benefiting large phosphate chemical companies like Yuntianhua [2]. - The report highlights the potential for the pesticide industry to improve due to increased safety regulations following recent chemical accidents, which may lead to the elimination of non-compliant production capacities [3]. Summary by Sections Key Companies and Performance - Shengquan Group is identified as a major domestic supplier of electronic resins for AI servers, with expected performance improvements due to rising server shipments [1]. - Hailide is noted for benefiting from U.S. tariff conflicts, being a leading company in the polyester industrial yarn sector [1]. - Zhuoyue New Energy is expected to see performance upgrades with new projects and products coming online [1]. - Ruile New Materials anticipates a 69.93% year-on-year increase in net profit for the first half of 2025, driven by significant growth in its pharmaceutical segment [1]. Market Trends - The chemical industry index rose by 2.86% this week, underperforming the CSI 300 index by 1.32% [11]. - Among 462 stocks in the chemical sector, 53% saw weekly gains, while 45% experienced declines [17]. - Key chemical products such as liquid chlorine, lithium carbonate, synthetic ammonia, and organic silicon saw significant price increases this week [20]. Sub-industry Insights - The polyester filament market is experiencing price increases, with average prices for POY, FDY, and DTY rising by 50-55 CNY per ton [24]. - The tire industry shows an increase in operating rates, with full steel tire rates at 64.97% and semi-steel tire rates at 71.87% [29]. - The refrigerant market remains strong, with R22 and R134a prices holding steady at high levels due to stable demand and limited supply [35][37].

Group 1 - The Chinese government aims to establish a comprehensive national carbon market by 2030, focusing on quota control and a combination of free and paid allocation methods [1] - The average price of carbon emission allowances in China has increased from 46.60 yuan per ton in 2021 to 91.82 yuan per ton in 2024, nearly doubling [1] - In 2024, the total transaction volume of carbon emission allowances reached 189 million tons, with a total transaction value of 18.114 billion yuan, marking a new annual high for the carbon market [1] Group 2 - The strengthening of the carbon market in China presents significant opportunities for companies involved in carbon asset management, low-carbon technologies, high-emission industry transformation, and financial services [2] - Companies like Zhuoyue New Energy, a leader in the biodiesel industry, are expected to grow under the carbon reduction context [3] - Yingke Recycling, with its full industry chain advantage in "plastic recycling - regeneration - utilization," is recognized as a rare asset with global market presence and strong ESG attributes [3]