本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 会议召开时间：2025 年 9 月 30 日（星期二）15:00-16:00 会 议 召 开 地 点 ： 上 海 证 券 交 易 所 上 证 路 演 中 心 （ 网 址 ： https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 证券代码：688565 证券简称：力源科技 公告编号：2025-042 浙江海盐力源环保科技股份有限公司 关于召开 2025 年半年度业绩说明会的公告 三、参加人员 公司董事长沈家雯女士、董事兼总经理侯俊波先生、董事会秘书叶珊珊女士、 财务总监张时剑先生、独立董事张学斌先生。（如有特殊情况，参会人员将可能 进行调整）。 四、投资者参加方式 （一）投资者可在 2025 年 9 月 30 日（星期二）15:00-16:00，通过互联网 登录上证路演中心（https://roadshow.sseinfo.com/），在线参与本次业绩说明 会，公司将及时回答投资者的提问。 投资者可于 2025 年 9 月 ...

Group 1 - Huazhong Securities has been approved to issue subordinate corporate bonds with a total face value of no more than 10 billion yuan [1] - Jinbei Automotive plans to invest 240 million yuan to establish an automotive industry investment fund focusing on electrification, intelligence, and low carbon [1] - Linyang Energy is expected to win a bid for a 244 million yuan metering equipment project from Southern Power Grid [1][2] Group 2 - Renfu Pharmaceutical's subsidiary has received drug registration certificates for two products, including a medication for acute hypotension [3][4] - Nanjing Steel plans to distribute a cash dividend of 0.1186 yuan per share [5][6] - Pairui Co. has signed a strategic cooperation agreement with Xi'an Power Electronics Research Institute to develop power devices [7][8] Group 3 - Haixing Electric is expected to win a bid for a 214 million yuan metering equipment project from Southern Power Grid [9][10] - Kuangda Technology is planning a change in control, leading to a continued suspension of its stock [11][12] - Samsung Medical is expected to win a bid for a 274 million yuan metering equipment project from Southern Power Grid [13][14] Group 4 - Jiukang Bio has obtained a medical device registration certificate for a specific diagnostic kit [15][16] - Hechuan Technology's minority shareholder plans to transfer a 13% stake in a subsidiary [17][18] - DiAo Micro has launched a new eUSB2 repeater product for various electronic applications [19][20] Group 5 - David Medical's electric surgical table registration application has been accepted [21][22] - Hangxin Technology plans to apply for a total of 280 million yuan in bank credit [23][24] - Liyuan Technology's non-independent director has resigned [25][26] Group 6 - Ningbo Construction's subsidiary has won a construction project bid worth 729 million yuan [27][28] - Huaren Pharmaceutical's subsidiary has received approval for a raw material drug [29][30] - Suwen Electric plans to distribute a cash dividend of 1 yuan per 10 shares [31][32] Group 7 - Solar Energy has received 1.692 billion yuan in renewable energy subsidies [33][34] - Wangli Security has obtained a patent for a new lock structure [35][36] - Zhejiang Energy's vice chairman has resigned due to age reasons [37][38] Group 8 - Beilu Pharmaceutical's subsidiary has passed GMP certification in Brazil [39][40] - Zhejiang Communications has a subsidiary that is expected to win a highway project bid [41][42] - Xinzhi Group has received a government subsidy of 11.1978 million yuan [43][44] Group 9 - Dong'an Power's engine sales in August increased by 3.44% year-on-year [45][46] - Baiyun Mountain's subsidiary has passed the consistency evaluation for two generic drugs [47][48] - Yipin Hong's subsidiary has received a drug registration certificate for a specific injection [49][50] Group 10 - Far East Holdings' subsidiary has won multiple contracts totaling 1.689 billion yuan [51][52] - Good Housekeeping's shareholder plans to reduce holdings by up to 3.5 million shares [53][54] - Guanghong Technology's shareholders have set a transfer price of 23.33 yuan per share [55][56] Group 11 - Keli Sensor plans to acquire 45% of Huahong Technology's shares for 122 million yuan [57][58] - Jianmin Group's furosemide oral solution has been approved for market launch [59][60] - Jinghua Laser's directors plan to reduce their holdings by up to 143,420 shares [61][62] Group 12 - Zhuyue Group is planning a share transfer that will change its controlling shareholder [63][64] - Terid has pre-bid for two projects totaling approximately 698 million yuan [65][66] - Zhonghuan Hailu is planning a change in control, leading to a continued suspension of its stock and convertible bonds [67][68] Group 13 - Great Wall Motors reported August sales of 115,600 vehicles, a year-on-year increase of 22.33% [69][70] - Guizhou Tire's controlling shareholder has committed not to reduce holdings for 12 months [71][72] - San Da Membrane's shareholder plans to reduce holdings by up to 1% of the company's shares [73][74] Group 14 - Chint Electric has decided to terminate the spin-off of its subsidiary for listing [75][76] - Jusaylong's shareholder plans to reduce holdings by up to 1% of the company's shares [77][78]

Core Viewpoint - Liyuan Technology announced the resignation of Mr. Zhao Dong from the board of directors and his position as deputy general manager due to personal reasons, and he will not hold any other positions in the company after his resignation [1] Company Summary - The board of directors of Liyuan Technology received a resignation report from Mr. Zhao Dong [1] - Mr. Zhao Dong served as a director and deputy general manager in the fourth board of directors [1] - Following his resignation, Mr. Zhao Dong will not hold any other positions within the company [1]

证券代码：688565 证券简称：力源科技 公告编号：2025-041 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 关于公司非独立董事、高级管理人员离任的公告 重要内容提示： 浙江海盐力源环保科技股份有限公司（以下简称"公司"）董事会于近日收 到赵东先生提交的辞职报告，赵东先生因个人原因申请辞去公司第四届董事会董 事、副总经理职务，辞职后将不在公司担任其他职务。 浙江海盐力源环保科技股份有限公司 特此公告。 浙江海盐力源环保科技股份有限公司董事会 2025 年 9 月 3 日 | | | | 原定任期 | 离任 | 是否继续 在上市公 | 具体职 | 是否存在 未履行完 | | --- | --- | --- | --- | --- | --- | --- | --- | | 姓名 | 离任职务 | 离任时间 | | | 司及其控 | 务（如适 | | | | | | 到期日 | 原因 | 股子公司 | 用） | 毕的公开 | | | | | | | 任职 | | 承诺 | | 赵东 | 非独立董事、 | 2025年 9 ...

Group 1 - The core point of the article is that Liyuan Technology (SH 688565) announced the completion of a share reduction plan by Huilian No. 2, which reduced its holdings by 173.56 million shares, accounting for 1.1592% of the company's total share capital [1] - As of August 29, 2025, Liyuan Technology's revenue composition for the first half of 2025 is as follows: thermal power 65.14%, nuclear power 24.5%, industrial 9.06%, other businesses 1.12%, and hydrogen fuel cells 0.17% [1] - The current market capitalization of Liyuan Technology is 1.5 billion yuan [1]

证券代码：688565 证券简称：力源科技 公告编号：2025-040 浙江海盐力源环保科技股份有限公司 5%以下股东减持计划时间届满暨减持股份结果公告 本公司董事会、全体董事及相关股东保证本公告内容不存在任何虚假记载、 误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律 责任。 重要内容提示： 股东持股的基本情况 本次减持计划实施前，深圳市中广核汇联二号新能源股权投资合伙企业（有 限合伙）（以下简称"汇联二号"）持有浙江海盐力源环保科技股份有限公司（以 下简称"公司"）股份 6,380,000 股，占公司总股本的 4.1991%。上述股份均为无 限售流通股，来源于公司首次公开发行前取得的股份及通过公司 2021 年度权益 分派实施资本公积金转增股本取得的股份，涉及首次公开发行前取得的股份已于 2022 年 5 月 13 日解除限售并上市流通。 减持计划的实施结果情况 2025 年 5 月 10 日，公司披露了《浙江海盐力源环保科技股份有限公司 5%以 下股东减持股份计划公告》（公告编号：2025-025），因经营计划需求，汇联二 号拟减持不超过 3,040,000 股（若计划减持期间公司 ...

Core Insights - Company reported a significant increase in revenue and profit for the first half of 2025, with operating income reaching 134 million yuan, a year-on-year growth of 26.42%, and a net profit attributable to shareholders of 2.797 million yuan [1] - The company achieved a remarkable growth in its thermal and nuclear power segments, with combined revenue of 120 million yuan, reflecting a year-on-year increase of 193.40% [2] - The company is actively expanding its hydrogen energy business, showcasing key technological breakthroughs in alkaline electrolyzers and composite membranes, which are expected to enhance the efficiency and cost-effectiveness of green hydrogen production [4][5] Financial Performance - The company achieved an operating income of 134 million yuan, a 26.42% increase compared to the previous year [1] - The net profit attributable to shareholders was 2.797 million yuan, with a significant improvement in cash flow from operating activities, amounting to 20.7439 million yuan [1] - The gross profit margin for the first half of 2025 was 18.73%, an increase of 11.49 percentage points year-on-year, indicating enhanced profitability [1] Business Segments - The thermal and nuclear power sectors generated a combined revenue of 120 million yuan, with thermal power revenue at 87.49 million yuan (up 114.36%) and nuclear power revenue at 32.91 million yuan [2] - The industrial water treatment segment achieved revenue of 12.17 million yuan, reflecting the company's efforts to diversify its offerings beyond the power sector [3] Market Position and Strategy - The company has established a strong market presence in the water treatment systems for thermal and nuclear power plants, evidenced by contracts worth 46.86 million yuan signed with major energy groups [2] - The company is also expanding into non-power sectors such as metallurgy and chemicals, aiming to build a comprehensive product system and competitive edge [3] - The company is focusing on international expansion, participating in global exhibitions to showcase its fuel cell products and hydrogen technology breakthroughs [5] Technological Advancements - The company has made significant advancements in hydrogen energy technology, including the development of a first-generation alkaline electrolyzer and a third-generation PPS composite membrane, which enhance performance and reduce costs [4] - The new alkaline electrolyzer is designed to address traditional challenges in electrolysis, improving temperature control and extending the lifespan of the equipment [4]

Core Viewpoint - The article highlights the significant advancements in China's green hydrogen industry, particularly focusing on the launch of the third-generation PPS composite membrane and the square alkaline electrolyzer by Liyuan Technology, marking a new era of domestic production capabilities in core materials for green hydrogen production [2][6][14]. Group 1: Third-Generation PPS Composite Membrane - The third-generation PPS composite membrane developed by Liyuan Technology is a breakthrough in domestic production, significantly reducing material costs while matching the performance of international products like AGFA [6][9]. - The membrane features three core advantages: excellent barrier properties for high-purity hydrogen production, significantly lower ionic resistance to reduce energy consumption, and high stability in alkaline environments [7][9]. - Key performance metrics of the membrane include a thickness of 480um, a bubble point pressure of 3.4 bar, and a tensile strength of 26.0 MPa [8]. Group 2: Square Alkaline Electrolyzer - The transition from traditional round electrolyzers to square alkaline electrolyzers represents a critical shift in the hydrogen production industry, with square designs offering advantages such as reduced footprint, faster load response, and lower lifecycle costs [10][12]. - The HYPSR ALK-50 square alkaline electrolyzer has a hydrogen production capacity of 50 Nm3/h, operates at pressures between 1.0-1.6 MPa, and achieves hydrogen purity of 99.8% [13]. - Liyuan Technology's innovations in the square electrolyzer design address traditional issues such as uneven alkali distribution and gas accumulation, enhancing operational efficiency and extending the lifespan of the equipment [12][14]. Group 3: Industry Impact and Future Outlook - Liyuan Technology's advancements in both the composite membrane and electrolyzer technology signify a comprehensive breakthrough from materials to equipment, providing high-cost performance solutions for the green hydrogen industry [14]. - The company aims to continue its focus on hydrogen technology research and industrial manufacturing, collaborating with industry partners to shape a cleaner and more efficient energy future [14].

Core Insights - The company reported a revenue of 134.31 million, representing a year-on-year growth of 26.42% [1] - The net profit attributable to shareholders reached 2.80 million, an increase of 131.14% compared to the same period last year [1] - The net cash flow from operating activities was 20.74 million, showing a significant growth of 461.39% year-on-year [1] Financial Performance - Total assets amounted to 903.87 million, a slight decrease of 0.75% from the end of the previous year [1] - The net assets attributable to shareholders were 490.09 million, reflecting a modest increase of 0.48% from the end of the previous year [1] Revenue Breakdown - The revenue from condensate water treatment system equipment was 105.74 million, accounting for 79.62% of the main business revenue [1] - The revenue from desalination system equipment (including seawater desalination) was 24.26 million, representing 18.27% of the main business revenue [1]

[Definitions](index=4&type=section&id=Item%201.%20Definitions) This section defines key terms and abbreviations used in the semi-annual report, covering company names, reporting periods, and specialized vocabulary related to water treatment and hydrogen fuel cell technology, ensuring clear understanding of the report content - Company, the Company, Liyuan Technology refers to Zhejiang Haiyan Liyuan Environmental Technology Co., Ltd[11](index=11&type=chunk) - Reporting Period, this Reporting Period refers to January-June 2025[11](index=11&type=chunk) - The report includes definitions of specialized technical terms such as condensate polishing, demineralized water treatment, seawater desalination, fuel cell/hydrogen fuel cell, stack, membrane electrode assembly, bipolar plate, electrolyzer diaphragm, and electrolyzer[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information, contact details, information disclosure channels, and stock overview, and details the key accounting data and financial indicators for the first half of 2025, showing significant year-on-year growth in operating revenue and net profit, positive operating cash flow, and listing non-recurring gains and losses [Basic Company Information](index=6&type=section&id=Item%202.1.%20Basic%20Company%20Information) This section introduces the company's Chinese name, abbreviation, legal representative, registered and office addresses, website, and email address - Company Chinese Name: Zhejiang Haiyan Liyuan Environmental Technology Co., Ltd[14](index=14&type=chunk) - Legal Representative: Hou Junbo[14](index=14&type=chunk) - Company Registered Address: No. 585 Chang'an North Road, Wuyuan Street, Haiyan County, Jiaxing City, Zhejiang Province[14](index=14&type=chunk) [Contact Person and Contact Information](index=6&type=section&id=Item%202.2.%20Contact%20Person%20and%20Contact%20Information) This section discloses the names, contact addresses, telephone numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative for investor contact - Board Secretary: Ye Shanshan[15](index=15&type=chunk) - Securities Affairs Representative: Zhang Xiaofen[15](index=15&type=chunk) - Contact Phone: 0573-86028565, Email: psrzqb@psr.cn[15](index=15&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=6&type=section&id=Item%202.3.%20Information%20Disclosure%20and%20Document%20Custody%20Changes) This section lists the newspapers selected by the company for information disclosure, the website address for publishing the semi-annual report, and the location where the report is kept - Newspapers selected by the company for information disclosure: Shanghai Securities News, China Securities Journal, Securities Daily, Securities Times[16](index=16&type=chunk) - Website address for publishing the semi-annual report: http://www.sse.com.cn[16](index=16&type=chunk) - Location for keeping the company's semi-annual report: Company Securities Office[16](index=16&type=chunk) [Overview of Company Shares/Depositary Receipts](index=6&type=section&id=Item%202.4.%20Overview%20of%20Company%20Shares%2FDepositary%20Receipts) This section provides the company's stock type, listing exchange, stock abbreviation, and code, confirming the company's A-shares are listed on the SSE STAR Market - Company Stock Type: A-shares[17](index=17&type=chunk) - Stock Listing Exchange and Board: SSE STAR Market[17](index=17&type=chunk) - Stock Abbreviation: Liyuan Technology, Stock Code: 688565[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=Item%202.6.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section discloses the company's key accounting data and financial indicators for the current reporting period (January-June 2025), showing significant year-on-year growth in operating revenue and net profit, and positive operating cash flow Key Accounting Data (H1 2025 vs. Prior Year) | Indicator | Current Period (Jan-Jun) | Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 134,311,158.97 Yuan | 106,246,182.11 Yuan | 26.42 | | Total Profit | 4,264,309.96 Yuan | -10,102,946.31 Yuan | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company | 2,796,978.08 Yuan | -8,982,294.68 Yuan | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 2,451,344.72 Yuan | -17,162,707.49 Yuan | Not Applicable | | Net Cash Flow from Operating Activities | 20,743,894.43 Yuan | -5,739,995.50 Yuan | Not Applicable | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 490,086,318.28 Yuan | 487,768,046.20 Yuan | 0.48 | | Total Assets (Period-End) | 903,867,541.51 Yuan | 910,667,585.80 Yuan | -0.75 | Key Financial Indicators (H1 2025 vs. Prior Year) | Indicator | Current Period (Jan-Jun) | Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.02 | -0.06 | Not Applicable | | Diluted Earnings Per Share (Yuan/share) | 0.02 | -0.06 | Not Applicable | | Basic Earnings Per Share (Excluding Non-recurring Gains/Losses) (Yuan/share) | 0.02 | -0.11 | Not Applicable | | Weighted Average Return on Net Assets (%) | 0.57 | -1.56 | Not Applicable | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 0.50 | -2.98 | Not Applicable | | R&D Investment as % of Operating Revenue (%) | 6.48 | 10.06 | Decreased by 3.58 percentage points | - Operating revenue increased by **26.42%** year-on-year, primarily due to an increase in completed projects during the reporting period[19](index=19&type=chunk) - Net profit attributable to shareholders of the listed company increased by **131.14%** year-on-year, mainly due to the increase in operating revenue and the company's optimization of operational efficiency, strengthened cost and expense control, and improved management, leading to a year-on-year increase in gross profit margin[20](index=20&type=chunk) [Non-recurring Gains and Losses and Amounts](index=8&type=section&id=Item%202.8.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) This section lists non-recurring gains and losses and their amounts for the reporting period, totaling **345,633.36 Yuan**, and explains why the handling fee refund for withholding individual income tax is classified as recurring income Non-recurring Gains and Losses and Amounts | Non-recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 70,626.04 | | Government grants recognized in profit or loss (excluding those closely related to the company's ordinary business activities) | 284,800.00 | | Other non-operating income and expenses apart from the above | 51,201.44 | | Less: Income tax impact | 60,994.12 | | **Total** | **345,633.36** | - Handling fee refund for withholding individual income tax of **35,184.56 Yuan** is classified as recurring gains and losses[24](index=24&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section elaborates on the company's industry positioning, technological advantages, and market performance in its two core business areas: environmental water treatment and hydrogen fuel cell engine systems, showing significant improvement in operating performance with growth in operating revenue and net profit during the reporting period. It also analyzes the company's core competitiveness, including independent intellectual property rights, multi-dimensional industrial chain R&D and production capabilities, integrated service system, and high-quality customer resources. Furthermore, it identifies and discusses risk factors such as market competition, customer concentration, working capital, new business development, financial and macroeconomic environment, and analyzes changes in major financial statement items [Explanation of the Company's Industry and Main Business during the Reporting Period](index=10&type=section&id=Item%203.1.%20Industry%20and%20Main%20Business%20Overview) This section details the company's industry positioning, technological advantages, and market performance in its two core business areas: environmental water treatment and hydrogen fuel cell engine systems, emphasizing its leading position in nuclear and thermal power water treatment and innovative progress in hydrogen fuel cell technology - The company's industry is N77 ecological protection and environmental governance, and its hydrogen fuel cell engine system business belongs to the new energy vehicle industry[28](index=28&type=chunk)[29](index=29&type=chunk) - Main business involves the R&D, design, and integration of environmental water treatment system equipment and hydrogen fuel cell engine systems[30](index=30&type=chunk) - The company holds a relatively leading position in condensate polishing systems for nuclear power and large-scale thermal power projects, and actively participates in the national "Belt and Road" initiative, with water treatment systems applied in markets across South America, Southeast Asia, South Asia, the Middle East, and Europe[31](index=31&type=chunk) - The company's independently developed HYPSR-04 fuel cell system prototype (**70kW**) has passed testing by the National New Energy Vehicle Quality Supervision and Inspection Center, and **17 sets** of vehicle-mounted systems have been successfully delivered, accumulating over **1.7 million kilometers** in mileage, with average hydrogen consumption below the industry average[32](index=32&type=chunk) - The company's latest developed **235kW** stack product utilizes low-platinum, high-performance membrane electrodes, high-durability ultra-thin bipolar plate technology, and has independently developed a third-generation alkaline electrolyzer composite diaphragm produced using a new coating film-forming process[32](index=32&type=chunk)[33](index=33&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=Item%203.2.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company achieved operating revenue of **134.3112 million Yuan**, a year-on-year increase of **26.42%**; net profit attributable to shareholders of the listed company was **2.7970 million Yuan**, a year-on-year increase of **131.14%**; and net cash flow from operating activities was **20.7439 million Yuan**, a year-on-year increase of **461.39%**. The company made progress in business development, technological innovation, talent building, and internal governance, and strengthened information disclosure and insider trading prevention 2025 H1 Operating Performance Overview | Indicator | Amount (Million Yuan) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 13,431.12 | 26.42 | | Net Profit Attributable to Shareholders of Listed Company | 279.70 | 131.14 | | Net Cash Flow from Operating Activities | 2,074.39 | 461.39 | - Condensate polishing system equipment and demineralized water treatment system equipment are the company's main revenue sources, accounting for **79.62%** and **18.27%** of main business revenue, respectively[35](index=35&type=chunk) - R&D investment during the reporting period was **8.6999 million Yuan**, accounting for **6.48%** of the company's operating revenue; as of H1 2025, the company holds **75 authorized patents** (including **38 invention patents** and **37 utility model patents**) and **15 software copyrights**[37](index=37&type=chunk) - The company improved overall team quality and professional capabilities by optimizing recruitment processes, strengthening internal training, and perfecting incentive mechanisms, while continuously deepening lean management and reinforcing comprehensive budget management and cost-benefit concepts[38](index=38&type=chunk)[40](index=40&type=chunk) - The company strictly adheres to information disclosure management systems, ensuring that information disclosure is true, accurate, complete, timely, and fair, and places high importance on preventing insider trading, clearly defining the scope of inside information, and implementing a registration system for insiders[41](index=41&type=chunk) [Analysis of Core Competitiveness during the Reporting Period](index=12&type=section&id=Item%203.3.%20Analysis%20of%20Core%20Competitiveness) The company's core competitiveness lies in its core technological advantages with independent intellectual property rights, multi-dimensional industrial chain R&D and production capabilities, integrated comprehensive service system, and high-quality customer resources and brand recognition. It has significant technological accumulation and market applications in both water treatment and hydrogen fuel cell fields. R&D investment during the reporting period was **8.6999 million Yuan**, with **75 authorized patents**, and **18 ongoing R&D projects** are listed [Core Competitiveness Analysis](index=12&type=section&id=Item%203.3.1.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its core technological advantages with independent intellectual property rights, multi-dimensional industrial chain R&D and production capabilities, integrated comprehensive service system, and high-quality customer resources and brand recognition. It has significant technological accumulation and market applications in both water treatment and hydrogen fuel cell fields - The company in nuclear and thermal power water treatment has high market recognition, being one of the very few domestic suppliers capable of providing condensate polishing equipment that meets nuclear power plant production requirements[43](index=43&type=chunk) - The company successfully applied its thermal-membrane coupled seawater desalination technology, combining low-temperature multi-effect (MED) and reverse osmosis (RO) systems, to the Hebei Fengyue Energy Technology Co., Ltd. **100,000 tons/day** seawater desalination project, with overall technology at a relatively leading level[44](index=44&type=chunk) - In the hydrogen fuel cell engine system field, the company's R&D team has mastered core technologies such as low-platinum membrane electrode technology, high-efficiency membrane electrode coating process, high-performance bipolar plate coating technology, stack design and manufacturing technology, fuel cell low-temperature storage and startup technology, and fuel cell system design and integration technology[45](index=45&type=chunk) - The company is currently one of the few enterprises in the industry capable of independent R&D and production of key hydrogen fuel cell components such as membrane electrodes and bipolar plates, stacks, and hydrogen fuel cell engine systems, effectively reducing production costs at various stages and ensuring product quality through in-house production of core components and complete system integration[48](index=48&type=chunk) - The company has developed comprehensive technical service capabilities and resource integration capabilities covering design, procurement, management, and commissioning, possessing an integrated service advantage[49](index=49&type=chunk)[50](index=50&type=chunk) - In the power plant water treatment sector, the company primarily serves large state-owned power generation groups such as CNNC Group and CGN Group, having established a strong market reputation and brand recognition; in the hydrogen fuel cell engine system sector, buses and special operation engineering vehicles equipped with the company's systems have been put into use, further enhancing market influence[51](index=51&type=chunk)[52](index=52&type=chunk) [Core Technologies and R&D Progress](index=14&type=section&id=Item%203.3.3.%20Core%20Technologies%20and%20R%26D%20Progress) This section details the company's core technologies and their advanced nature in environmental water treatment and hydrogen fuel cell engine systems, including high-tower condensate polishing, thermal-membrane coupled seawater desalination, integrated wastewater treatment, as well as metal bipolar plates, membrane electrodes, automated stacking, and system integration technologies. R&D investment during the reporting period was **8.6999 million Yuan**, with **75 authorized patents**, and **18 ongoing R&D projects** are listed - In the environmental water treatment system equipment field, the company has mastered high-tower condensate polishing technology, thermal-membrane coupled seawater desalination technology, and integrated wastewater treatment technology, with high-tower condensate polishing technology becoming the mainstream technical route for condensate polishing system equipment in large domestic thermal power plants and nuclear power plants[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - In the hydrogen fuel cell engine system field, the company has mastered metal bipolar plate preparation and coating technology, membrane electrode preparation technology, automated stacking technology, and system integration technology, with membrane electrode power density reaching **2.25W/cm²@0.6V**, placing its performance at a leading domestic level[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) R&D Investment Table | Indicator | Current Period Amount (Yuan) | Prior Year Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 8,699,938.28 | 10,690,801.33 | -18.62 | | Total R&D Investment | 8,699,938.28 | 10,690,801.33 | -18.62 | | Total R&D Investment as % of Operating Revenue (%) | 6.48 | 10.06 | Decreased by 3.58 percentage points | - As of June 30, 2025, the company has **43 R&D personnel**, accounting for **22.87%** of total employees; it holds **75 authorized patents** (including **38 invention patents** and **37 utility model patents**) and **15 software copyrights**[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - The company has **18 ongoing R&D projects**, including research on large-flux pleated filter cartridges, development of IoT wireless network environment detection and sensing recorders, research on charging/discharging systems for advanced nuclear energy system liquid lead-bismuth spallation target R&D platforms, research on hardness and silicon removal reactors, research on ModBus communication for water treatment control systems, integration and control technology for passenger vehicle fuel cell systems, fuel cell system controller development, fuel cell system ejector development, iterative R&D of intelligent vision resin separation monitoring and control systems, research and demonstration application of key technologies for green manufacturing and safety detection of high-performance hydrogen fuel cells, development of intelligent IoT conference table card systems, development of IoT-based industrial manual valve status monitoring systems, AI model engine-based engineering project management smart platform, design and preparation of high-performance flow field plates with raised baffles for fuel cells, development of high-performance fuel cell stacks for passenger vehicles, research on PBI-type ion solvent membrane water electrolysis hydrogen production technology, and development of 1KW air-cooled fuel cell system multi-integrated controller, with a total estimated investment of **44.6 million Yuan**[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Risk Factors](index=21&type=section&id=Item%203.4.%20Risk%20Factors) The company faces operational risks such as intensified market competition, relatively concentrated customer base, insufficient working capital, and new business development falling short of expectations, as well as financial risks including increased accounts receivable and contract assets, low net cash flow from operating activities, and changes in tax preferential policies. Additionally, there are industry and macroeconomic environment risks stemming from downstream industry policy impacts and macroeconomic and industrial policy adjustments - The company faces market competition risks, especially intense competition in conventional demineralized water and wastewater treatment sectors[82](index=82&type=chunk) - Customer base is relatively concentrated, with a high proportion of revenue from the top five customers; significant changes in the credit risk or operating conditions of major customers would adversely affect the company's performance[84](index=84&type=chunk) - Risk of insufficient working capital, as project collection cycles are long, and business expansion requires substantial working capital support[85](index=85&type=chunk) - Risks in new business (hydrogen fuel cell engine system) development, which may fall short of expectations if R&D products have low market acceptance, capital investment exceeds expectations, or policies change[86](index=86&type=chunk) - Risk of increasing accounts receivable and contract assets, which may tie up working capital and increase bad debt risk[87](index=87&type=chunk) - Risk of low net cash flow from operating activities, which may lead to tight liquidity[88](index=88&type=chunk) - Risk of changes in tax preferential policies; changes in high-tech enterprise income tax incentives and VAT immediate refund policies for software products may adversely affect performance[89](index=89&type=chunk) - Industry risks and macroeconomic environment risks, as environmental water treatment business is highly affected by downstream industry policies, and the hydrogen fuel cell industry is influenced by macroeconomic and industrial policy uncertainties[90](index=90&type=chunk)[91](index=91&type=chunk) [Key Operating Performance during the Reporting Period](index=23&type=section&id=Item%203.5.%20Key%20Operating%20Performance) This section analyzes the company's key operating performance during the reporting period, focusing on changes in financial statement items and their causes, showing a **26.42%** year-on-year increase in operating revenue and a **10.75%** year-on-year increase in operating costs. Taxes and surcharges, financial expenses, other income, asset impairment losses, and non-operating income all showed significant changes [Analysis of Main Business](index=23&type=section&id=Item%203.5.1.%20Analysis%20of%20Main%20Business) Operating revenue increased by **26.42%** year-on-year, and operating costs increased by **10.75%** year-on-year. Taxes and surcharges, financial expenses, other income, asset impairment losses, and non-operating income all showed significant changes, with the increase in taxes and surcharges mainly due to property tax, the decrease in financial expenses due to reduced bill discounting, the decrease in other income due to reduced government subsidies, the increase in net cash flow from operating activities due to increased sales collections, the reversal of asset impairment losses due to contract asset impairment reversal, and the decrease in non-operating income due to insurance claims in the prior year Financial Statement Item Variation Analysis (Current Period vs. Prior Year) | Item | Current Period Amount (Yuan) | Prior Year Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 134,311,158.97 | 106,246,182.11 | 26.42 | | Operating Costs | 109,154,578.01 | 98,558,871.50 | 10.75 | | R&D Expenses | 8,699,938.28 | 10,690,801.33 | -18.62 | | Taxes and Surcharges | 304,203.39 | 202,044.95 | 50.56 | | Financial Expenses | 1,450,337.48 | 2,388,719.33 | -39.28 | | Other Income | 319,984.56 | 5,099,577.67 | -93.73 | | Asset Impairment Losses | 557,051.02 | -3,388,316.44 | Not Applicable | | Non-operating Income | 1,200.46 | 4,526,149.67 | -99.97 | | Net Cash Flow from Operating Activities | 20,743,894.43 | -5,739,995.50 | Not Applicable | - Changes in taxes and surcharges were mainly due to an increase in property tax for leased factory buildings[94](index=94&type=chunk) - Changes in financial expenses were mainly due to a decrease in bill discounting[95](index=95&type=chunk) - Changes in other income were mainly due to a decrease in government subsidies received[95](index=95&type=chunk) - Changes in net cash flow from operating activities were mainly due to an increase in cash received from sales of goods and provision of services[95](index=95&type=chunk) - Changes in asset impairment losses were mainly due to the reversal of contract asset impairment in the current reporting period[96](index=96&type=chunk) - Changes in non-operating income were mainly due to insurance claims received in the prior year[96](index=96&type=chunk) [Analysis of Assets and Liabilities](index=24&type=section&id=Item%203.5.3.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets slightly decreased, while net assets slightly increased. Accounts receivable financing, taxes payable, and other payables significantly decreased, while investment properties substantially increased. Additionally, the restricted status of major assets at period-end, including monetary funds, investment properties, fixed assets, and intangible assets, was disclosed Asset and Liability Status Changes (Current Period-End vs. Prior Year-End) | Item Name | Current Period-End Amount (Yuan) | Prior Year-End Amount (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 3,288,589.69 | 5,369,778.83 | -38.76 | Decrease in unmatured bills | | Investment Properties | 28,407,103.86 | 4,081,502.84 | 596.00 | Own properties leased out | | Taxes Payable | 725,903.04 | 1,820,230.57 | -60.12 | Payment of taxes accrued at prior year-end | | Other Payables | 459,086.37 | 13,038,811.06 | -96.48 | Repurchase of treasury shares for equity incentives | Restricted Status of Major Assets at Period-End | Item | Period-End Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 25,692,178.48 | Bank acceptance bill deposits, letter of guarantee deposits, and restricted bank deposits | | Investment Properties | 28,407,103.86 | Pledged as collateral for bank borrowings and letters of guarantee | | Fixed Assets | 31,335,517.14 | Pledged as collateral for bank borrowings and letters of guarantee | | Intangible Assets | 11,823,375.58 | Pledged as collateral for bank borrowings and letters of guarantee | | **Total** | **97,258,175.06** | | [Corporate Governance, Environment, and Society](index=26&type=section&id=Item%204.%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section discloses changes in the company's directors, supervisors, senior management, and core technical personnel, with former chairman Shen Wanzhong resigning and Ms. Shen Jiawen being elected as chairman. The company clarified the criteria for identifying core technical personnel. Additionally, the company has no profit distribution or capital reserve capitalization plan for this semi-annual period, and repurchased and cancelled some restricted shares due to not meeting 2024 performance targets [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=26&type=section&id=Item%204.1.%20Changes%20in%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, Mr. Shen Wanzhong resigned as chairman and director of the fourth board of directors due to personal reasons, and Ms. Shen Jiawen was elected as chairman and director of the fourth board of directors. The company clarified the criteria for identifying core technical personnel - Mr. Shen Wanzhong applied to resign from his positions as chairman and director of the company's fourth board of directors due to personal reasons[101](index=101&type=chunk) - Ms. Shen Jiawen was elected as chairman and director of the fourth board of directors[101](index=101&type=chunk) - The company's criteria for identifying core technical personnel are: holding important positions in the company's R&D and design departments, mastering the company's core technologies; possessing deep professional backgrounds and industry experience, with rich experience in technological innovation and product R&D; and being the inventor or primary drafter of the company's core patents and software copyrights[102](index=102&type=chunk) [Profit Distribution or Capital Reserve Capitalization Plan](index=26&type=section&id=Item%204.2.%20Profit%20Distribution%20or%20Capital%20Reserve%20Capitalization%20Plan) The company has no profit distribution plan or capital reserve capitalization plan for this semi-annual period - The profit distribution plan or capital reserve capitalization plan approved by the board of directors for this reporting period is "None"[6](index=6&type=chunk)[103](index=103&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=26&type=section&id=Item%204.3.%20Equity%20Incentive%20Plans%20and%20Impact) Due to not meeting 2024 performance targets, the company repurchased and cancelled **2,202,900** restricted shares granted under the 2022 Restricted Stock Incentive Plan that had not yet been unlocked - The company's 2024 performance level did not meet the third unlocking period's company-level performance targets stipulated in the "2022 Restricted Stock Incentive Plan"[104](index=104&type=chunk) - The company repurchased and cancelled **2,202,900** restricted shares that had been granted but not yet unlocked[104](index=104&type=chunk) [Significant Matters](index=28&type=section&id=Item%205.%20Significant%20Matters) This section details significant matters during and continuing into the reporting period, including the fulfillment of commitments, progress on major litigation and arbitration, actual controller's alleged violations and company rectification, and the use of raised funds. All commitments were strictly fulfilled, but the company is involved in multiple major contract dispute lawsuits, and the actual controller has received a judgment. Raised investment projects were delayed due to macroeconomic conditions and company strategic adjustments, and some idle raised funds were used to supplement working capital [Fulfillment of Commitments](index=28&type=section&id=Item%205.1.%20Fulfillment%20of%20Commitments) This section details the fulfillment of various commitments made by the company's controlling shareholder, actual controller, directors, supervisors, senior management, and the company itself during the initial public offering, including share lock-up, avoidance of horizontal competition, standardization of related-party transactions, measures to offset dilution of immediate returns, and legal liability for compensation. All commitments were strictly fulfilled - Controlling shareholder and actual controller Shen Wanzhong committed to a **36-month** share lock-up, transferring no more than **25%** annually during his tenure, and no transfers within six months after leaving office[108](index=108&type=chunk) - Director and senior management Huang Jin, supervisor Wei Bo, and core technical personnel Zhang Bin all committed to share lock-ups and adhered to transfer ratio restrictions during their tenure[109](index=109&type=chunk)[110](index=110&type=chunk) - The company and its controlling shareholder, actual controller, directors, and senior management all committed to measures to offset the dilution of immediate returns, including strengthening the management of raised funds, accelerating the investment progress of raised investment projects, improving operational efficiency, and strengthening the investment return mechanism[113](index=113&type=chunk)[114](index=114&type=chunk) - Controlling shareholder and actual controller Shen Wanzhong committed to avoiding horizontal competition and standardizing and reducing related-party transactions[115](index=115&type=chunk)[116](index=116&type=chunk) - All parties involved in the commitments strictly fulfilled their respective commitments[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) [Major Litigation and Arbitration Matters](index=39&type=section&id=Item%205.7.%20Major%20Litigation%20and%20Arbitration%20Matters) The company is involved in two major contract dispute lawsuits. One is a contract dispute filed by the company and its subsidiary against Hebei Fengyue Energy Technology Co., Ltd. and five other companies, where the first-instance judgment ordered defendant Hebei Fengyue to pay project fees of **19,694,484.69 Yuan**, with other defendants bearing joint and several liability. The other is a contract dispute over differential water fees filed by the company and its subsidiary against Hebei Fengyue Energy Technology Co., Ltd. and five other companies, with the defendants filing a counterclaim against the company, which is currently being processed - The contract dispute case filed by the company and its subsidiary against Hebei Fengyue Energy Technology Co., Ltd. and five other companies, with litigation claims including payment of outstanding amounts of **30,594,604.22 Yuan** and overdue interest, and priority right to compensation for construction project payments[120](index=120&type=chunk) - The first-instance judgment in this case ordered defendant Hebei Fengyue Energy Technology Co., Ltd. to pay the plaintiff project fees of **19,694,484.69 Yuan**, with defendants Hebei Zongheng Group Fengnan Steel Co., Ltd. and Tianjin Binhai Aoyuan International Trade Co., Ltd. bearing joint and several guarantee liability[147](index=147&type=chunk) - The differential water fee contract dispute case filed by the company and its subsidiary against Hebei Fengyue Energy Technology Co., Ltd. and five other companies, with litigation claims including payment of differential water fees of **134,196,091.11 Yuan** and overdue interest from June 2019 to January 25, 2025[147](index=147&type=chunk) - Defendants Hebei Fengyue Energy Technology Co., Ltd. and Hebei Zongheng Group Fengnan Steel Co., Ltd. filed a counterclaim against the company and Liquan Company, with counterclaim claims including payment of construction period delay liquidated damages of **111,600,000.00 Yuan** and water fee compensation of **18,629,820.00 Yuan**[147](index=147&type=chunk)[148](index=148&type=chunk) - The second case is currently being processed[148](index=148&type=chunk) [Alleged Violations, Penalties, and Rectification by the Listed Company and its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller](index=39&type=section&id=Item%205.8.%20Alleged%20Violations%2C%20Penalties%2C%20and%20Rectification) The company's actual controller and chairman, Mr. Shen Wanzhong, was released on bail by the Shanghai Public Security Bureau in March 2024 and received a judgment in July 2025. The company has actively carried out self-inspection and rectification, revised and improved internal control measures, and strengthened compliance awareness and information disclosure management - The company's actual controller and chairman, Mr. Shen Wanzhong, received a "Decision on Release on Bail" from the Shanghai Public Security Bureau on March 27, 2024[121](index=121&type=chunk) - Mr. Shen Wanzhong received a judgment on July 28, 2025[121](index=121&type=chunk) - The company has actively carried out self-inspection and rectification, implementing rectification at both institutional and practical levels, further revising and improving the company's internal control measures, and continuously urging the company's directors, supervisors, senior management, and various business departments to enhance compliance awareness and strengthen the inspection and supervision of internal control system execution[121](index=121&type=chunk)[122](index=122&type=chunk) [Explanation of Progress in Use of Raised Funds](index=42&type=section&id=Item%205.12.%20Progress%20in%20Use%20of%20Raised%20Funds) The company's initial public offering raised a total of **251,182,500.00 Yuan**, with cumulative investment of **129,554,403.71 Yuan** as of the end of the reporting period, representing an investment progress of **65.30%**. The raised investment projects 'Water Treatment System Integration Production Center and PTFE Membrane Production Project' and 'R&D Center Construction Project' have been delayed until February 2027 to reach their intended usable state due to lagging macroeconomic recovery and the company's focus on boosting operating performance. The company used **70 million Yuan** of idle raised funds to temporarily supplement working capital during this period Overall Use of Raised Funds | Indicator | Amount (Yuan) | | :--- | :--- | | Total Raised Funds | 251,182,500.00 | | Total Committed Investment | 198,405,234.01 | | Cumulative Raised Funds Invested as of Period-End | 129,554,403.71 | | Investment Progress (%) | 65.30 | - The completion date for the raised investment projects "Water Treatment System Integration Production Center and PTFE Membrane Production Project" and "R&D Center Construction Project" has been extended to February 2027[131](index=131&type=chunk)[133](index=133&type=chunk) - The delay in raised investment projects is mainly due to: lagging macroeconomic recovery, longer cycles for existing project resumption and new project commencement, and the company allocating limited resources and primary efforts to acquiring new projects and executing ongoing projects, focusing on expanding business scale, increasing project reserves, optimizing costs and expenses, improving accounts collection, and enhancing profitability[131](index=131&type=chunk)[133](index=133&type=chunk) - As of June 30, 2025, the company used idle raised funds not exceeding **70,000,000.00 Yuan** to temporarily supplement the company's working capital, with a usage period not exceeding twelve months from the date of board approval[135](index=135&type=chunk) [Share Changes and Shareholder Information](index=46&type=section&id=Item%206.%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital changes and shareholder structure during the reporting period. Due to the repurchase and cancellation of restricted shares under the equity incentive plan, the total number of shares decreased by **2,207,100 shares**, all becoming unrestricted tradable shares, with a slight positive impact on earnings per share and net assets per share. As of the end of the reporting period, the total number of common shareholders was **4,890**, with Shen Wanzhong as the largest shareholder, holding **32.10%**. Additionally, changes in shareholdings of directors, supervisors, senior management, and core technical personnel were disclosed, mainly due to the repurchase and cancellation of restricted shares [Share Capital Changes](index=46&type=section&id=Item%206.1.%20Share%20Capital%20Changes) During the reporting period, due to the repurchase and cancellation of restricted shares under the equity incentive plan, restricted shares decreased by **2,207,100 shares**, leading to a total share count change from **151,937,100 shares** to **149,730,000 shares**, all becoming unrestricted tradable shares. This change had a slight positive impact on earnings per share and net assets per share Share Capital Changes (Before vs. After This Change) | Item | Quantity Before Change (shares) | Proportion Before Change (%) | Change (shares) | Quantity After Change (shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,207,100 | 1.45 | -2,207,100 | 0 | 0.00 | | Shares held by domestic natural persons | 2,207,100 | 1.45 | -2,207,100 | 0 | 0.00 | | II. Unrestricted Tradable Shares | 149,730,000 | 98.55 | 0 | 149,730,000 | 100.00 | | RMB Ordinary Shares | 149,730,000 | 98.55 | 0 | 149,730,000 | 100.00 | | III. Total Shares | 151,937,100 | 100.00 | -2,207,100 | 149,730,000 | 100.00 | - The reason for the share capital change was the repurchase and cancellation of restricted shares held by **1** departed incentive recipient and original incentive recipients who did not meet the unlocking conditions due to the company's 2024 performance level not meeting targets, totaling **2,207,100 shares**[140](index=140&type=chunk) - During the reporting period, the company's share capital decreased by a total of **2,207,100 shares** due to the repurchase and cancellation of restricted shares under the equity incentive plan, resulting in a slight increase in earnings per share and net assets per share financial indicators[141](index=141&type=chunk) [Shareholder Information](index=47&type=section&id=Item%206.2.%20Shareholder%20Information) As of the end of the reporting period, the total number of common shareholders was **4,890**. The shareholdings of the top ten shareholders were disclosed, with Shen Wanzhong holding the highest proportion at **32.10%**. None of the shares held by the top ten shareholders were pledged, marked, or frozen - Total number of common shareholders as of the end of the reporting period: **4,890**[144](index=144&type=chunk) Top Ten Shareholders' Shareholdings (Period-End Share Count) | Shareholder Name | Period-End Share Count (shares) | Proportion (%) | Restricted Shares Held (shares) | Pledged, Marked, or Frozen Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Shen Wanzhong | 48,062,000 | 32.10 | 0 | None | Domestic Natural Person | | Shenzhen CGN Huilian No. 2 New Energy Equity Investment Partnership (Limited Partnership) | 5,920,183 | 3.95 | 0 | None | Domestic Non-State-Owned Legal Person | | Shen Xueen | 3,920,000 | 2.62 | 0 | None | Domestic Natural Person | | Jin Shanhang | 2,084,634 | 1.39 | 0 | None | Domestic Natural Person | | Chen Xiaohui | 2,001,192 | 1.34 | 0 | None | Domestic Natural Person | | Cai Jinxing | 1,853,419 | 1.24 | 0 | None | Domestic Natural Person | | Wu Jilin | 1,699,435 | 1.13 | 0 | None | Domestic Natural Person | | Sun Jianying | 1,537,576 | 1.03 | 0 | None | Domestic Natural Person | | Chen Yuefang | 1,472,329 | 0.98 | 0 | None | Domestic Natural Person | | Meng Qingliang | 1,409,023 | 0.94 | 0 | None | Domestic Natural Person | - Jin Shanhang, Chen Xiaohui, and Cai Jinxing hold shares through ordinary securities accounts and securities company client credit trading guarantee securities accounts[145](index=145&type=chunk) [Information on Directors, Supervisors, Senior Management, and Core Technical Personnel](index=49&type=section&id=Item%206.3.%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) This section discloses changes in shareholdings of directors, senior management, and core technical personnel during the reporting period, mainly due to the repurchase and cancellation of restricted shares leading to a decrease in shareholding quantity Changes in Shareholdings of Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position | Beginning of Period Share Count (shares) | End of Period Share Count (shares) | Change in Shares During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Miao Junjie | Director | 66,152 | 15,752 | -50,400 | Repurchase and cancellation of restricted shares | | Wang Jiechuan | Director | 8,400 | 0 | -8,400 | Repurchase and cancellation of restricted shares | | Li Yan | Deputy General Manager | 8,400 | 0 | -8,400 | Repurchase and cancellation of restricted shares | | Zhang Shijian | CFO | 91,400 | 70,400 | -21,000 | Repurchase and cancellation of restricted shares | | Shen Wanzhong | Chairman (Resigned) | 48,482,000 | 48,062,000 | -420,000 | Repurchase and cancellation of restricted shares | [Bond-Related Information](index=51&type=section&id=Item%207.%20Bond-Related%20Information) The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor convertible corporate bonds, during this reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during this reporting period[153](index=153&type=chunk) - The company had no convertible corporate bonds during this reporting period[153](index=153&type=chunk) [Financial Report](index=52&type=section&id=Item%208.%20Financial%20Report) This section is the core of the report, providing the company's unaudited consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity. It details the company's basic information, basis of financial statement preparation, significant accounting policies and estimates, taxation, notes to consolidated financial statement items, R&D expenses, changes in consolidation scope, equity in other entities, government grants, risks related to financial instruments, fair value disclosures, related parties and related-party transactions, share-based payments, commitments and contingencies, post-balance sheet events, other significant matters, notes to parent company financial statement major items, and supplementary information. During the reporting period, the company's operating performance significantly improved, but it still faces multiple risks and lawsuits [Audit Report](index=52&type=section&id=Item%208.1.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [Financial Statements](index=52&type=section&id=Item%208.2.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation - Includes 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 Owners' Equity, Parent Company Statement of Changes in Owners' Equity[155](index=155&type=chunk)[159](index=159&type=chunk)[163](index=163&type=chunk)[167](index=167&type=chunk)[170](index=170&type=chunk)[173](index=173&type=chunk)[176](index=176&type=chunk)[181](index=181&type=chunk) [Basic Company Information](index=70&type=section&id=Item%208.3.%20Basic%20Company%20Information) This section details the company's registered address, organizational form, headquarters address, registered capital, total share capital, stock listing status, and actual main operating activities, including environmental water treatment and hydrogen fuel cell engine system businesses - Company Registered Address: No. 585 Chang'an North Road, Wuyuan Street, Haiyan County, Jiaxing City, Zhejiang Province[187](index=187&type=chunk) - The company's current registered capital is **149.73 million Yuan**, total share capital is **149.73 million shares**, and its shares were listed on the Shanghai Stock Exchange on May 13, 2021[187](index=187&type=chunk) - The company is primarily engaged in the R&D, design, and integration of environmental water treatment system equipment and hydrogen fuel cell engine systems[187](index=187&type=chunk) - These financial statements were approved for issuance by the company's board of directors on August 26, 2025[188](index=188&type=chunk) [Basis of Financial Statement Preparation](index=70&type=section&id=Item%208.4.%20Basis%20of%20Financial%20Statement%20Preparation) The financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, with accounting based on the accrual basis, and measured at historical cost except for specific financial instruments and investment properties - The company's financial statements are prepared on a going concern basis, based on actual transactions and events, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Information Disclosure and Reporting Rules for Companies Issuing Securities No. 15 – General Provisions for Financial Reports" (Revised 2023) of the China Securities Regulatory Commission[189](index=189&type=chunk) - The company's accounting is based on the accrual basis, and except for certain financial instruments and investment properties, these financial statements are measured at historical cost[189](index=189&type=chunk) - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[190](index=190&type=chunk) [Significant Accounting Policies and Estimates](index=70&type=section&id=Item%208.5.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as financial instruments, accounts receivable, inventories, contract assets, fixed assets, intangible assets, employee compensation, provisions, share-based payments, revenue recognition, government grants, deferred income tax, and leases, and discloses the impact of 2024 accounting policy changes on operating costs and selling expenses - The company classifies financial assets into financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[209](index=209&type=chunk) - Bad debt provisions for accounts receivable and contract assets are calculated using the expected credit loss model, with provision ratios determined based on aging portfolios[222](index=222&type=chunk)[233](index=233&type=chunk) - Fixed asset depreciation is calculated using the straight-line method, with buildings and structures depreciated over **30 years** and a residual value rate of **5%**[247](index=247&type=chunk) - Revenue recognition principle: Revenue is recognized when the customer obtains control of the related goods, using the input method or recognizing at a specific point in time depending on the nature of the performance obligation[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk) - The company changed its accounting policy in accordance with "Interpretation No. 18 of Enterprise Accounting Standards" issued by the Ministry of Finance, classifying provisions for guarantee-type quality assurance that do not constitute a single performance obligation into "main business costs" and "other business costs", no longer into "selling expenses"[284](index=284&type=chunk) Impact of Accounting Policy Changes on H1 2024 Financial Statements | Item | Amount Before Accounting Policy Change (Yuan) | Impact Amount (Yuan) | Amount After Accounting Policy Change (Yuan) | | :--- | :--- | :--- | :--- | | Operating Costs (Consolidated Statement) | 96,805,597.72 | 1,753,273.78 | 98,558,871.50 | | Selling Expenses (Consolidated Statement) | 6,694,133.75 | -1,753,273.78 | 4,940,859.97 | | Operating Costs (Parent Company) | 85,227,751.59 | 1,753,273.78 | 86,981,025.37 | | Selling Expenses (Parent Company) | 6,694,133.75 | -1,753,273.78 | 4,940,859.97 | [Taxation](index=91&type=section&id=Item%208.6.%20Taxation) This section lists the company's main tax categories and rates, including VAT, urban maintenance and construction tax, and corporate income tax. The company enjoys a **15%** corporate income tax preferential rate as a high-tech enterprise, and its subsidiary Liquan Environmental enjoys a **50%** reduction in corporate income tax - The company's main tax categories include VAT (**6%**, **9%**, **13%**), urban maintenance and construction tax (**5%**), and corporate income tax[286](index=286&type=chunk) - Zhejiang Haiyan Liyuan Environmental Technology Co., Ltd., as a high-tech enterprise, is subject to a **15%** corporate income tax rate for the 2023-2025 period[288](index=288&type=chunk) - Subsidiary Tangshan Liquan Environmental Technology Co., Ltd. is in its reduced tax period in 2025, subject to a **12.5%** corporate income tax rate[288](index=288&type=chunk) - The company's sales of condensate polishing system equipment equipped with independently developed operating system software are eligible for VAT immediate refund policy[288](index=288&type=chunk) [Notes to Consolidated Financial Statement Items](index=92&type=section&id=Item%208.7.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for each major item in the consolidated financial statements, including monetary funds, notes receivable, accounts receivable, contract assets, accounts receivable financing, prepayments, other receivables, inventories, other current assets, investment properties, fixed assets, construction in progress, right-of-use assets, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, assets restricted by ownership or use rights, short-term borrowings, notes payable, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within 1 year, other current liabilities, lease liabilities, provisions, share capital, capital reserves, treasury stock, surplus reserves, undistributed profits, operating revenue and operating costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, asset disposal income, credit impairment losses, asset impairment losses, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, and supplementary information for cash flow statement - Monetary funds at period-end were **115,868,940.65 Yuan**, of which **25,692,178.48 Yuan** were bank acceptance bill deposits, letter of guarantee deposits, and restricted bank deposits[290](index=290&type=chunk) - Accounts receivable at period-end had a book value of **113,032,737.30 Yuan**, with bad debt provision of **78,551,394.84 Yuan**, including **35,243,464.58 Yuan** from Hebei Fengyue Energy Technology Co., Ltd. which has been fully provided for bad debts[300](index=300&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk) - Contract assets at period-end had a book value of **66,678,387.58 Yuan**, with bad debt provision of **9,969,681.22 Yuan**[309](index=309&type=chunk) - Inventories at period-end had a book value of **259,482,587.75 Yuan**, with inventory impairment provision of **10,475,287.71 Yuan**[343](index=343&type=chunk)[345](index=345&type=chunk) - Investment properties at period-end had a book value of **28,407,103.86 Yuan**, with an increase of **28,435,371.48 Yuan** in the current period mainly due to transfers from fixed assets and land use rights[352](index=352&type=chunk) - Fixed assets at period-end had a book value of **93,958,768.28 Yuan**, with a decrease of **26,772,091.05 Yuan** in the current period mainly due to transfers to investment properties and disposals/scrapping[356](index=356&type=chunk) - Short-term borrowings at period-end were **102,809,511.11 Yuan**, including secured borrowings of **63,500,000.00 Yuan**, guaranteed borrowings of **30,000,000.00 Yuan**, and unsecured borrowings of **9,200,000.00 Yuan**[375](index=375&type=chunk) - Contract liabilities at period-end were **217,147,563.98 Yuan**[380](index=380&type=chunk) - Share capital decreased by **2,207,100 shares** due to the repurchase and cancellation of restricted shares, with a period-end balance of **149,730,000.00 Yuan**[402](index=402&type=chunk) - Undistributed profits at period-end were **43,417,117.84 Yuan**[409](index=409&type=chunk) - Operating revenue for the current period was **134,311,158.97 Yuan**, and operating costs were **109,154,578.01 Yuan**[413](index=413&type=chunk) - Net cash flow from operating activities for the current period was **20,743,894.43 Yuan**, compared to **-5,739,995.50 Yuan** in the prior period, achieving a significant turnaround to positive[438](index=438&type=chunk) [R&D Expenses](index=138&type=section&id=Item%208.8.%20R%26D%20Expenses) Total R&D expenses for the current period were **8,699,938.28 Yuan**, all expensed, mainly comprising employee compensation, direct material input, depreciation and amortization, and technical services and others. R&D investment decreased compared to the prior year R&D Expense Composition (Current Period) | Item | Amount (Yuan) | | :--- | :--- | | Employee Compensation | 4,492,215.68 | | Direct Material Input | 2,929,220.58 | | Depreciation and Amortization | 1,136,697.49 | | Technical Services and Others | 141,804.53 | | **Total** | **8,699,938.28** | - All R&D expenses for the current period were expensed[448](index=448&type=chunk) - Total R&D investment decreased by **18.62%** compared to the prior year[74](index=74&type=chunk) [Changes in Consolidation Scope](index=138&type=section&id=Item%208.9.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company had no changes in consolidation scope due to non-same-control business combinations, same-control business combinations, reverse acquisitions, disposal of subsidiaries, or other reasons - There were no non-same-control business combinations, same-control business combinations, reverse acquisitions, or loss of control over subsidiaries in the current period[449](index=449&type=chunk) - There were no other reasons for changes in consolidation scope in the current period[450](index=450&type=chunk) [Equity in Other Entities](index=139&type=section&id=Item%208.10.%20Equity%20in%20Other%20Entities) This section discloses the company's equity in subsidiaries, with Tangshan Liquan Environmental Technology Co., Ltd. being the main subsidiary, held **100%** through establishment. There were no significant non-wholly-owned subsidiaries, joint ventures, or associates, nor significant restrictions on the use of group assets or settlement of group debts during the reporting period - The company's subsidiary is Tangshan Liquan Environmental Technology Co., Ltd., registered in Hebei Province, engaged in environmental protection, with a direct shareholding of **100%**, acquired through establishment[451](index=451&type=chunk) - There were no significant non-wholly-owned subsidiaries, joint ventures, or associates in the current period[451](index=451&type=chunk)[452](index=452&type=chunk) - There were no significant restrictions on the use of group assets or settlement of group debts in the current period[452](index=452&type=chunk) [Government Grants](index=140&type=section&id=Item%208.11.%20Government%20Grants) During the reporting period, the total government grants recognized in profit or loss were **284,800.00 Yuan**, mainly including stable production and increased output subsidies and other minor subsidies, all being income-related government grants Government Grants Recognized in Profit or Loss (Current Period) | Type | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Income-related | 284,800.00 | 5,072,508.01 | | **Total** | **284,800.00** | **5,072,508.01** | - Current period government grants mainly include **250,000.00 Yuan** for 2025 stable production and increased output subsidies and **34,800.00 Yuan** for other minor subsidies[454](index=454&type=chunk) [Risks Related to Financial Instruments](index=141&type=section&id=Item%208.12.%20Risks%20Related%20to%20Financial%20Instruments) The company faces market risks (foreign exchange risk, interest rate risk, other price risks), credit risk, and liquidity risk. The company manages and controls these risks through management monitoring, maintaining floating-rate borrowings, depositing liquid funds in banks with high credit ratings, and monitoring cash balances and forecasting cash flows - The market risks faced by the company include foreign exchange risk (not significant), interest rate risk (related to floating-rate bank borrowings), and other price risks (not present)[456](index=456&type=chunk) - Credit risk primarily arises from the failure of the counterparty to fulfill its obligations, leading to losses on the company's financial assets, and financial guarantees undertaken by the company; liquidity funds are deposited in banks with high credit ratings, resulting in low credit risk[456](index=456&type=chunk) - Liquidity risk is centrally controlled by the finance department and managed by monitoring cash balances and rolling forecasts of cash flows for the next 12 months[457](index=457&type=chunk) [Disclosure of Fair Value](index=142&type=section&id=Item%208.13.%20Disclosure%20of%20Fair%20Value) This section discloses the fair value of the company's assets and liabilities measured at fair value at period-end, with accounts receivable financing measured at Level 2 fair value, having a period-end fair value of **3,288,589.69 Yuan** Total Assets Continuously Measured at Fair Value | Item | Level 1 Fair Value Measurement (Yuan) | Level 2 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | | 3,288,589.69 | | 3,288,589.69 | | **Total Assets Continuously Measured at Fair Value** | | **3,288,589.69** | | **3,288,589.69** | [Related Parties and Related-Party Transactions](index=144&type=section&id=Item%208.14.%20Related%20Parties%20and%20Related-Party%20Transactions) This section discloses the company's parent company, subsidiaries, other related parties, and related-party transactions during the reporting period. The company's ultimate controlling party is Shen Wanzhong, and its subsidiary is Tangshan Liquan Environmental Technology Co., Ltd. During the reporting period, the company purchased raw materials of **8,320,354.02 Yuan** from related party Zhejiang Jiacheng Dongneng Equipment Co., Ltd. and received multiple guarantees from Shen Wanzhong and his spouse Xu Haizhen. Accounts payable to related party Jiacheng Dongneng at period-end were **13,893,765.96 Yuan** - The ultimate controlling party of the enterprise is Shen Wanzhong[463](index=463&type=chunk) - Other related parties include Zhejiang Jiacheng Dongneng Equipment Co., Ltd. (a company controlled by the same actual controller) and Xu Haizhen (spouse of the actual controller)[463](index=463&type=chunk) Purchase of Goods/Acceptance of Services | Related Party | Related Transaction Content | Current Period Amount (Yuan) | Approved Transaction Limit (Yuan) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Jiacheng Dongneng Equipment Co., Ltd. | Purchase of raw materials | 8,320,354.02 | 25,000,000.00 | No | Related-Party Guarantees where the Company is the Guaranteed Party | Guarantor | Guaranteed Amount (Yuan) | Guarantee Start Date | Guarantee End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Shen Wanzhong, Xu Haizhen | 20,000,000.00 | 2024/10/14 | 2034/12/31 | No | | Shen Wanzhong | 447,300.00 | 2024/11/12 | 2027/11/8 | No | | Shen Wanzhong | 223,650.00 | 2024/11/12 | 2026/3/31 | No | | Shen Wanzhong | 739,620.00 | 2024/11/11 | 2026/12/31 | No | | Shen Wanzhong | 720,300.00 | 2024/11/19 | 2026/11/23 | No | - Key management personnel compensation for the current period was **3.1072 million Yuan**[468](index=468&type=chunk) - Accounts payable to related party Zhejiang Jiacheng Dongneng Equipment Co., Ltd. at period-end were **13,893,765.96 Yuan**[470](index=470&type=chunk) [Share-based Payments](index=146&type=section&id=Item%208.15.%20Share-based%20Payments) During the reporting period, the company had no details of equity instruments, outstanding share options or other equity instruments at period-end, equity-settled share-based payments, cash-settled share-based payments, share-based payment expenses for the current period, or modifications/terminations of share-based payments - No share-based payment related information disclosed for the current period[471](index=471&type=chunk)[472](index=472&type=chunk) [Commitments an