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

Group 1 - The company reported a revenue of 134 million yuan for the first half of 2025, representing a year-on-year increase of 26.42% [1] - The net profit for the period was 2.797 million yuan, a significant turnaround from a net loss of 8.9823 million yuan in the same period last year [1]

资料显示，浙江海盐力源环保科技股份有限公司位于浙江省嘉兴市海盐县武原街道长安北路585号，成 立日期1999年5月18日，上市日期2021年5月13日，公司主营业务涉及从事环保水处理系统设备和氢燃料 电池发动机系统的研发、设计和集成业务。主营业务收入构成为：凝结水精处理系统设备54.20%，除 盐水处理(含海水淡化)系统设33.02%，污水处理系统设备9.39%，智能电站设备1.78%，其他产品与服务 0.82%，引水工程系统0.55%，其他(补充)0.18%，氢燃料电池发动机系统0.05%。 截至3月31日，力源科技股东户数4378.00，较上期增加1.48%；人均流通股34200股，较上期减少 1.46%。2025年1月-3月，力源科技实现营业收入4994.57万元，同比增长0.65%；归母净利润288.73万 元，同比增长454.20%。 8月26日，力源科技（维权）涨0.71%，成交额4441.42万元。两融数据显示，当日力源科技获融资买入 额308.57万元，融资偿还582.80万元，融资净买入-274.23万元。截至8月26日，力源科技融资融券余额 合计3225.74万元。 融资方面，力源科技当日 ...

Group 1 - Ningbo Membrane Intelligence Information Technology Co., Ltd. is the only registered entity and payment account for TrendBank [1] - The 2025 TrendBank Green Hydrogen Industry Conference will be held on August 27-28 in Wuxi, Jiangsu [1] - A countdown of 2 days is announced for the launch of new products from Liyuan Technology, including the third-generation PPS composite membrane and square electrolyzer [2] Group 2 - The product launch event for Liyuan Technology is set to begin on August 27, 2025, with more exciting content available in the TrendBank Energy Chain live broadcast room [4] - Various companies such as Kunhua Technology, Zhongding Hengsheng, and others are featured in the video and graphic versions of the event [5] - Subscription is available for the "Monthly Analysis Report on China's Hydrogen Energy and Fuel Cell Industry" through TrendBank Research [9]

Core Viewpoint - The article discusses the advancements and challenges in the development of alkaline water electrolysis membranes, particularly focusing on the transition from second-generation PPS membranes to third-generation composite membranes, which offer significant advantages in performance and stability [3][18]. Summary by Sections Alkaline Water Electrolysis Membranes - Membranes are critical components in alkaline water electrolysis, directly affecting electrolysis efficiency, gas purity, and system safety [3]. - The second-generation PPS membrane remains the mainstream application, while third-generation composite membranes are emerging with benefits such as low resistance, high hydrophilicity, gas tightness, safety, and enhanced mechanical strength [3][4]. Challenges in Composite Membrane Development - The development of composite membranes faces dual bottlenecks in materials and processes, with issues in adaptability and reliability being prominent [3][18]. - Cost and scalability challenges, along with a lack of standard certifications, hinder the growth of composite membranes [3][18]. Key Companies and Innovations - **Liyuan Technology**: A listed company focusing on fuel cell components, has made breakthroughs in third-generation PPS composite membranes and will unveil new products at the 2025 TrendBank Green Hydrogen Industry Conference [5][6]. - **Tongwei New Energy**: Specializes in core membrane materials for hydrogen energy storage, achieving large-scale shipments of composite membranes with excellent electrochemical performance [6][7]. - **Carbon Energy Technology**: Launched the first industrial-scale production line for composite membranes in China and has secured significant funding for expanding production capabilities [8][9]. - **Kewok Technology**: Focuses on high-end membrane materials, producing a series of composite membranes with enhanced performance metrics [13]. - **Huashangxia Geng Hydrogen Energy**: Recently established a production line for large-scale composite membranes, enhancing production capabilities for high-performance electrolysis [14][15]. - **Yuantai Energy Materials**: Aims to provide lifecycle products based on hydrogen membrane and electrode materials, with significant production capacity for composite membranes [16]. - **Zhongke Hydrogen Easy**: Established in 2022, has developed a range of composite membranes and electrodes, collaborating with various well-known electrolyzer companies [17]. Upcoming Events - The 2025 TrendBank Green Hydrogen Industry Conference will be held on August 27-28, 2025, in Wuxi, Jiangsu, focusing on solutions and development plans from domestic composite membrane companies [18].

Group 1 - The core point of the article is the appointment of Shen Jiawen as the first "post-90s" chairperson of a listed company in the fund industry, following her father's legal issues and resignation from the position [3] - Shen Jiawen was born in 1990 and holds a master's degree in economics from the University of Southern California and dual bachelor's degrees in applied mathematics and economics from the University of California, Berkeley [3] - Shen Jiawen's father, Shen Wanzhong, was sentenced to one year in prison with a one and a half year probation for the crime of illegally disclosing important information, which led to his resignation as chairman of Liyuan Technology [3] Group 2 - Liyuan Technology announced the resignation of Shen Wanzhong and the appointment of Shen Jiawen as a candidate for the fourth board of directors, which was anticipated by the industry [3] - Shen Wanzhong has completed the handover process according to company regulations after resigning from all positions within the company [3]

Core Viewpoint - The appointment of Shen Jiawen, a "post-90s" individual and daughter of the former chairman, as the new chairman of Liyuan Technology marks a significant transition in the company following the legal issues faced by her father, Shen Wanzhong [3][5][8]. Group 1: Appointment Details - Liyuan Technology announced the election of Shen Jiawen as the chairman of the fourth board of directors, effective immediately [5]. - Shen Jiawen has a background in finance, having previously worked as the compliance and risk control head at Huatai-PineBridge Investments [7]. - She holds a master's degree in economics from the University of Southern California and dual bachelor's degrees in applied mathematics and economics from the University of California, Berkeley [7]. Group 2: Background Context - The transition to Shen Jiawen's leadership is closely linked to her father's sentencing for the crime of disclosing important information improperly, resulting in a one-year prison sentence with a one-and-a-half-year probation and a fine of 3.3 million yuan [8]. - Shen Wanzhong resigned from his positions in the company, paving the way for his daughter's appointment [9]. Group 3: Industry Trends - The trend of fund industry professionals transitioning to operational roles in companies is becoming more common, with several notable examples, including Liang Feng from Putailai and Wang Shijia from Lihai Food [10][11]. - This shift indicates a growing trend of younger professionals from the finance sector taking on leadership roles in industrial companies [10].

【导读】"90后"沈家雯出任力源科技董事长，曾是基金从业人员 中国基金报记者 若晖 又有基金从业人员成功转型实业。 近日，力源科技公告称，全体董事一致同意选举沈家雯担任公司第四届董事会董事长。 事实上，自沈家雯进入力源科技第四届董事会担任非独立董事候选人以来，一直备受市场关注。公开资料显示，沈家雯是一名"90后"，是前任董事长沈万 中之女。此前她曾担任汇添富投资合规风控负责人、经理，因沈万中被判刑，火速"回家接班"，可谓是基金行业"90后"转型上市公司董事长第一人。 "90后"基金女员工担任上市公司董事长 在前任董事长沈万中被判刑之后，上市公司力源科技正式迎来新一任董事长。 近日，力源科技公告称，公司于2025年8月15日召开第四届董事会第二十三次会议，审议通过了《关于选举第四届董事会董事长的议案》，全体董事一致 同意选举沈家雯担任公司第四届董事会董事长，任期自本次董事会审议通过之日起至第四届董事会任期届满之日止。 由此，沈家雯也成为基金行业"90后"转型上市公司董事长的第一人。 公开资料显示，沈家雯于1990年出生，拥有南加州大学经济学硕士、加州大学伯克利分校应用数学与经济学双学士学位。2017年8月至20 ...

Group 1 - The core point of the article is the announcement of the election of Shen Jiawen as the chairperson of the board of directors of Liyuan Technology during the 23rd meeting of the fourth board of directors [2] Group 2 - The announcement was made on the evening of August 15 [2] - This marks a significant leadership change within the company [2] - The election reflects the company's governance structure and decision-making process [2]