贵州振华新材料股份有限公司2025 年半年度报告摘要 规划，投资者应当到 www.sse.com.cn 网站仔细阅读半年度报告全文。 本公司已在本半年度报告中详细阐述在生产经营过程中可能面临的相关风险，详情请查阅本报告 "第三节管理层讨论与分析"之"四、风险因素"部分的相关内容。 虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 无 □适用 √不适用 第二节 公司基本情况 公司股票简况 公司股票简况 股票种类 股票上市交易所 股票简称 股票代码 变更前股票简称 A股 上海证券交易所科 振华新材 688707 / 创板 公司存托凭证简况 □适用 √不适用 联系人和联系方式 联系人和联系方式 董事会秘书（信息披露境内代 证券事务代表 表） 姓名 王敬 俞丝丝 电话 0851-84284089 0851-84284089 办公地址 贵州省贵阳市白云区高跨路1 贵州省贵阳市白云区高跨路1 贵州振华新材料股份有限公司2025 年半年度报告摘要 号 号 电子信箱 zec@zh-echem.com zec@zh-echem.com 单位：元 币种：人民币 本报告期末比上 本报告期末 上年度末 年度末增减(%) ...

二、董事会会议审议情况 证券代码：688707 证券简称：振华新材 公告编号：2025-035 贵州振华新材料股份有限公司 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个别及连带责任。 一、董事会会议召开情况 贵州振华新材料股份有限公司（以下简称"公司"）于 2025 年 8 月 4 日以 通讯方式发出第六届董事会第二十七次会议通知，该次董事会于 2025 年 8 月 14 日下午以现场方式在公司一楼会议室召开，本次会议为 2025 年下半年定期会议。 会议由董事长侯乔坤先生召集和主持，会议应出席董事 7 人，实际出席董事 7 人，公司全体高级管理人员列席会议。本次会议的召集和召开符合《中华人民共 和国公司法》《上海证券交易所科创板股票上市规则》等相关法律法规、规范性 文件及《贵州振华新材料股份有限公司章程》的有关规定，会议决议合法有效。 具体详见公司同日在上海证券交易所网站（www.sse.com.cn）披露的《2025 年半年度募集资金存放与实际使用情况的专项报告》。 与会董事认真审议本次会议相关议案，以书面记名投票表决方式，形成 ...

振华新材（SH 688707，收盘价：15.33元）8月15日晚间发布半年度业绩报告称，2025年上半年营业收 入约7.13亿元，同比减少26.69%；归属于上市公司股东的净利润亏损约2.17亿元；基本每股收益亏损 0.43元。2024年同期营业收入约9.72亿元；归属于上市公司股东的净利润亏损约2.03亿元；基本每股收 益亏损0.41元。 （文章来源：每日经济新闻） ...

贵州振华新材料股份有限公司 关于对中国电子财务有限责任公司的 风险评估报告 贵州振华新材料股份有限公司（以下简称："公司"）通过查验中国电子财务 有限责任公司（以下简称："中电财务公司"）的《金融许可证》《企业法人营业 执照》等证件资料，取得并审阅了经大信会计师事务所（特殊普通合伙）出具的 《关于中国电子财务有限责任公司风险评估专项审计报告》（大信专审字[2025] 第 1-01748号），对中电财务公司的经营资质、业务和风险状况进行了评估，具 体情况报告如下： 一、中电财务公司基本情况 1.中电财务公司是经中国人民银行银复〔2000〕243号文件批准成立的非银 行金融机构。 2.金融许可证机构编码：L0014H211000001 3.统一社会信用代码：91110000102090836Y 4.注册资本：25亿元人民币 5.法定代表人：刘桂林 6.住所：北京市海淀区中关村东路66号甲1号楼二十层、二十一层 7.经营范围：企业集团财务公司服务。(依法须经批准的项目，经相关部门 批准后方可开展经营活动，具体经营项目以相关部门批准文件或许可证件为 准)(不得从事国家和本市产业政策禁止和限制类项目的经营活动。) 二、 ...

贵州振华新材料股份有限公司 2025年度"提质增效重回报"专项行动方案 半年度评估报告 为积极响应落实关于开展沪市公司"提质增效重回报"专项行动的倡议，践 行以投资者为本的核心理念，贵州振华新材料股份有限公司（以下简称"公司"） 在全面评估《2024年度"提质增效重回报"行动方案》执行效果的基础上，于2025 年5月8日披露了《2024年度"提质增效重回报"行动方案的评估报告暨2025年度 "提质增效重回报"专项行动方案》（以下简称"专项行动方案"）。2025年上 半年，公司严格遵循专项行动方案部署，积极推进各项举措落地，并对其阶段性 成效进行审慎评估。现将半年度具体实施情况报告如下： 一、聚焦主业深耕，提升核心竞争力 2025年上半年，公司受原材料价格及产品销售价格下滑、下游需求结构性变 化、产能利用率不足导致固定成本增加、期间费用刚性支出增加等因素综合影响， 营业收入及利润有所下滑。尽管面临诸多挑战，公司在产品研发、客户拓展等方 面仍取得积极进展，经营情况自二季度开始得到修复，2025年第二季度公司产品 销量及销售收入环比第一季度增长均超过60%。 二、加大研发投入，聚焦核心技术攻关 （一）研发投入与专利 ...

证券代码：688707 证券简称：振华新材 公告编号：2025-034 贵州振华新材料股份有限公司董事会 2025 年半年度募集资金存放与实际使用情况的专项报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 一、募集资金基本情况 （一）首次公开发行股票实际募集资金情况 1、扣除发行费用后的实际募集资金金额和资金到账时间 经中国证券监督管理委员会《关于同意贵州振华新材料股份有限公司首次公 开发行股票注册的批复》（证监许可[2021]2593 号）的批准，公司获准向社会公 众发行人民币普通股 A 股 11,073.3703 万股，每股面值人民币 1 元。截至 2021 年 9 月 8 日止，本公司已向社会公众发行人民币普通股 A 股 11,073.3703 万股，每股 发行价格 11.75 元，募集资金总额为人民币 1,301,121,010.25 元，扣除承销费等 发行费用（不含本次公开发行股票发行费用可抵扣增值税进项税额）人民币 49,575,891.94 元（保荐承销费（不含增值税）金额共 50,519,288.17 ...

证券代码：688707 证券简称：振华新材 公告编号：2025-035 贵州振华新材料股份有限公司 第六届董事会第二十七次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 一、董事会会议召开情况 贵州振华新材料股份有限公司（以下简称"公司"）于 2025 年 8 月 4 日以 通讯方式发出第六届董事会第二十七次会议通知，该次董事会于 2025 年 8 月 14 日下午以现场方式在公司一楼会议室召开，本次会议为 2025 年下半年定期会议。 会议由董事长侯乔坤先生召集和主持，会议应出席董事 7 人，实际出席董事 7 人，公司全体高级管理人员列席会议。本次会议的召集和召开符合《中华人民共 和国公司法》《上海证券交易所科创板股票上市规则》等相关法律法规、规范性 文件及《贵州振华新材料股份有限公司章程》的有关规定，会议决议合法有效。 二、董事会会议审议情况 与会董事认真审议本次会议相关议案，以书面记名投票表决方式，形成如下 决议： （一）审议并通过《关于公司 2025 年半年度报告及其摘要的议案》 针对该议案，与会董 ...

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) Provides essential definitions for industry-specific terms, company entities, battery technologies, and the reporting period [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) The report provides definitions for common terms related to the lithium/sodium-ion battery cathode material industry, including company abbreviations, controlling shareholder, actual controller, various cathode materials, battery technologies, and emerging industries, specifying the reporting period from January 1 to June 30, 2025 - Defines basic information such as the company, controlling shareholder, and actual controller[11](index=11&type=chunk) - Details various cathode material types and their nickel content differentiation standards (mid-nickel, mid-high nickel, high-nickel, ultra-high nickel)[11](index=11&type=chunk) - Explains battery technology concepts including lithium-ion batteries, sodium-ion batteries, solid-state batteries, and solid electrolytes[11](index=11&type=chunk) - Introduces the concept of "low-altitude economy" as an emerging industry and its application scenarios[11](index=11&type=chunk) - Specifies the reporting period as January 1, 2025, to June 30, 2025[12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) Presents the company's fundamental information, contact details, and a summary of its key financial performance and indicators for the reporting period [I. Company's Basic Information](index=6&type=section&id=I.%20Company's%20Basic%20Information) Guizhou Zhenhua New Material Co., Ltd. (Zhenhua New Material, stock code: 688707) is an A-share listed company registered in Baiyun District, Guiyang City, Guizhou Province, with Hou Qiaokun as its legal representative - Full company name: Guizhou Zhenhua New Material Co., Ltd., Abbreviation: Zhenhua New Material[14](index=14&type=chunk) - Stock code: **688707**, Listing exchange and board: Shanghai Stock Exchange STAR Market[17](index=17&type=chunk) - Legal representative: Hou Qiaokun[14](index=14&type=chunk) - Registered address: No. 1 Gaokua Road, Baiyun District, Guiyang City, Guizhou Province[14](index=14&type=chunk) [II. Contact Person and Contact Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) The company's Board Secretary (domestic representative for information disclosure) is Wang Jing, and the Securities Affairs Representative is Yu Sisi, both located at No. 1 Gaokua Road, Baiyun District, Guiyang City, Guizhou Province - Board Secretary: Wang Jing[15](index=15&type=chunk) - Securities Affairs Representative: Yu Sisi[15](index=15&type=chunk) - Contact number: 0851-84284089[15](index=15&type=chunk) - Email: zec@zh-echem.com[15](index=15&type=chunk) [VI. Company's Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Company's%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by **26.69%** to **RMB 713 million**, and net profit attributable to shareholders expanded to a loss of **RMB 217 million**, primarily due to declining prices, demand shifts, and increased fixed costs 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 712,812,538.11 | 972,323,295.72 | -26.69 | | Total Profit (RMB) | -255,009,737.25 | -250,027,671.00 | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company (RMB) | -217,431,698.62 | -203,024,984.72 | Not Applicable | | Net Cash Flow from Operating Activities (RMB) | -36,817,356.44 | -1,361,319,771.60 | Not Applicable | | Basic Earnings Per Share (RMB/share) | -0.43 | -0.41 | Not Applicable | | R&D Investment as % of Operating Revenue | 7.52 | 2.22 | Increase 5.30 percentage points | | **Current Period End** | **Prior Year End** | **Change (%)** | | | Net Assets Attributable to Shareholders of Listed Company (RMB) | 4,201,352,607.62 | 4,418,421,971.71 | -4.91 | | Total Assets (RMB) | 7,266,903,094.16 | 7,810,250,983.40 | -6.96 | - Performance decline primarily due to: product sales price pressure, raw material price fluctuations, structural changes in downstream demand (lithium iron phosphate squeezing ternary materials), insufficient capacity utilization leading to increased fixed costs, and increased rigid expenses (R&D and sales) during the period[22](index=22&type=chunk) [VIII. Non-Recurring Gains and Losses Items and Amounts](index=8&type=section&id=VIII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled **RMB 5.3694 million**, mainly from government subsidies, fair value changes of financial assets, and other non-operating income and expenses 2025 Semi-Annual Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 5,479,234.68 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities | 69,497.03 | | Other non-operating income and expenses apart from the above | 764,569.76 | | Less: Income tax impact | 943,930.81 | | Total | 5,369,370.66 | [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) Offers an in-depth review of the company's industry, main business operations, performance drivers, core competencies, and strategic outlook, alongside identified risk factors [I. Explanation of the Company's Industry and Main Business during the Reporting Period](index=9&type=section&id=I.%20Explanation%20of%20the%20Company's%20Industry%20and%20Main%20Business%20during%20the%20Reporting%20Period) The company specializes in R&D, production, and sales of lithium/sodium-ion battery cathode materials for new energy vehicles and consumer electronics, facing market shifts towards LFP while focusing on NCM and exploring next-generation technologies Industry Classification | Classification Standard | Category | | :--- | :--- | | National Economic Industry Classification | C3985 Manufacturing of Electronic Special Materials | | Strategic Emerging Industries Classification | 3.3.10.1 Manufacturing of Secondary Battery Materials | | Green and Low-Carbon Transformation Industry Guidance Catalog (2024 Edition) | 1.2.1 Manufacturing of Key Components for New Energy Vehicles | - From January to June 2025, new energy vehicle production and sales increased by **41.4%** and **40.3%** respectively, with sales accounting for **44.3%** of the total; NEV models under RMB 200,000 saw a **55%** increase in sales, representing **60%** of total NEV sales, indicating a return to rational consumption in the high-end market[28](index=28&type=chunk) - Cumulative power battery installed capacity increased by **47.3%**, with lithium iron phosphate batteries accounting for **81.4%**, squeezing ternary battery market share to below **20%**; domestic LFP output increased by **66.6%**, while global ternary material output declined by **4.5%**, and China's ternary material output increased by **7.3%** in the first half[28](index=28&type=chunk)[29](index=29&type=chunk) - Mid-nickel high-voltage ternary materials achieved a **35%** penetration rate, high-nickel and ultra-high-nickel materials target high-end applications, and ternary material shipments in the non-power energy storage market increased by **13.4%**; upstream raw material prices stabilized, easing cost pressure[29](index=29&type=chunk)[30](index=30&type=chunk) - Industry trends include: technology-driven product structure optimization (high energy density, high safety, long cycle life, solid/semi-solid battery technology iteration), diversified application scenarios (humanoid robots, low-altitude economy, high-performance electric tools), deepening industrial chain integration and global layout (leading enterprises gaining competitive advantage, Chinese enterprises expanding overseas markets), and increasing importance of product full lifecycle management (EU's New Battery Regulation promoting green supply chains, favoring enterprises with closed-loop capabilities)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The company's core products are single-crystal nickel-cobalt-manganese (NCM) ternary cathode materials, covering mid-nickel, mid-high nickel, high-nickel, and ultra-high-nickel series; mid-nickel high-voltage 6-series ternary materials have passed customer certification and are in mass production, with high-nickel and ultra-high-nickel materials accounting for **50%** of sales and being the main revenue source, with some products certified and in small-batch shipments, and international customers (Toyota, Samsung) entering kilogram-level verification[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - Active layout in sodium-ion battery cathode materials (mastering layered oxide and polyanion technical routes, new-generation layered oxide products shipped and installed, polyanion material pilot line for hundreds of tons nearing completion) and solid-state electrolyte materials (successfully developed nano-scale, air-stable, high-ion conductivity composite solid electrolytes, achieved ton-level stable preparation, collaborating with CATL, ATL, Toyota for product verification and pilot line construction)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Other material layouts: spinel nickel-manganese, lithium-rich manganese-based, and lithium manganese iron phosphate (LMFP) materials sampled, nickel-manganese binary lithium-rich manganese-based materials mass-produced, high-capacity lithium-rich manganese-based materials sampled by multiple customers[42](index=42&type=chunk) [II. Discussion and Analysis of Operating Conditions](index=11&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Conditions) During the reporting period, the company's operating revenue decreased by **27%**, and net profit loss expanded, primarily due to product price pressure, raw material fluctuations, demand shifts, insufficient capacity utilization, and increased rigid expenses [(I) Analysis of Performance Changes during the Reporting Period](index=11&type=section&id=(I)%20Analysis%20of%20Performance%20Changes%20during%20the%20Reporting%20Period) The company's H1 2025 operating revenue was **RMB 713 million**, a **27%** year-on-year decrease, with net profit attributable to shareholders at **-RMB 217 million**, due to intensified competition, raw material price volatility, structural shifts in demand, low capacity utilization, and increased R&D and sales expenses - Operating revenue: **RMB 712.81 million**, a **27%** year-on-year decrease[43](index=43&type=chunk) - Net profit attributable to shareholders of the listed company: **-RMB 217.43 million**, with expanded losses[43](index=43&type=chunk) - Product sales price pressure: intensified industry competition, weakened bargaining power[43](index=43&type=chunk) - Raw material price fluctuations: price volatility of lithium carbonate and other materials, delayed cost transmission affecting profitability[43](index=43&type=chunk) - Structural changes in downstream demand: lithium iron phosphate dominating mid-to-low-end markets, shrinking demand for the company's traditional advantageous products, new-generation 6-series materials not yet forming large-scale orders[43](index=43&type=chunk) - Insufficient capacity utilization: low utilization rate of some production lines, high fixed cost allocation, significant losses from idle capacity[44](index=44&type=chunk) - Increased rigid expenses during the period: R&D investment (traditional lithium batteries, sodium-ion, solid-state batteries, etc.) and sales expenses increased year-on-year[44](index=44&type=chunk) [(II) Next Steps for Development](index=11&type=section&id=(II)%20Next%20Steps%20for%20Development) The company will adhere to a strategy of "stabilizing the foundation, expanding new growth, and focusing on cost reduction and efficiency improvement" through enhanced technological innovation, optimized market and customer structure, deepened cost reduction and lean management, and prudent capacity expansion and overseas deployment - Overall strategy: "Stabilizing the foundation, expanding new growth, and focusing on cost reduction and efficiency improvement"[45](index=45&type=chunk) - Strengthen technological innovation and product iteration: increase R&D investment, consolidate single-crystal high-nickel advantages, accelerate mass delivery of 6-series ternary materials, and promote industrialization of high-nickel/ultra-high-nickel, sodium-ion, lithium manganese iron phosphate, and solid/semi-solid battery materials[46](index=46&type=chunk) - Optimize market and customer structure: expand into emerging application scenarios such as energy storage, power tools, electric two-wheelers, and low-altitude economy, deepen cooperation with existing strategic key customers, and accelerate domestic and international customer certification[46](index=46&type=chunk) - Deepen cost reduction and efficiency improvement with lean management: strengthen supply chain management (long-term contracts, equity participation in upstream, battery recycling), promote lean production and digital transformation, and reinforce accounts receivable and inventory management[46](index=46&type=chunk) - Prudently advance capacity construction and overseas layout: scientifically plan existing capacity, implement flexible upgrades, make cautious decisions on capacity expansion, accelerate overseas customer certification, and steadily promote internationalization[47](index=47&type=chunk) [III. Analysis of Core Competitiveness during the Reporting Period](index=12&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) The company's core competitiveness was strengthened through deep technological accumulation, continuous innovation, strong customer relationships, green intelligent manufacturing, quality assurance, and a synergistic industrial chain with a closed-loop system [(I) Core Competitiveness Analysis](index=12&type=section&id=(I)%20Core%20Competitiveness%20Analysis) The company boasts over 20 years of technical expertise in lithium battery cathode materials, offering a full range of single-crystal products, and proactively developing next-generation technologies like sodium-ion battery cathode materials and solid electrolytes, while maintaining strategic partnerships with leading battery manufacturers and operating "zero-carbon factories" with high-standard quality control - Deep technological accumulation and continuous innovation capability: over 20 years of technical experience in lithium battery cathode materials, forming a full range of single-crystal products including mid-nickel, mid-high nickel, high-nickel, and ultra-high nickel; proactive layout in next-generation technologies such as sodium-ion battery cathode materials, solid electrolytes, and lithium-rich manganese-based materials, establishing a tiered technology reserve system of "producing one generation, reserving one generation, researching one generation"[48](index=48&type=chunk) - High-quality customer resources and strategic synergy advantages: established long-term strategic partnerships with mainstream battery enterprises like CATL, Funeng Technology, and ATL, deepening cooperation through new product introduction and customized services, and continuously expanding a diversified customer base[49](index=49&type=chunk) - Green intelligent manufacturing and quality assurance advantages: Guiyang and Yilong production bases are both "zero-carbon factories" and recognized as national "green factories"; deep integration of industrial intelligent technology with manufacturing processes, establishing a full-process, high-standard, refined quality control system to ensure high product consistency and stability[49](index=49&type=chunk) - Industrial chain synergy and sustainable development advantages: equity participation in Hongxing Electronics, building a "material-battery-recycling-regeneration" full industrial chain closed-loop system; Hongxing Electronics uses inorganic impurity removal processes to achieve high recovery rates for cobalt, nickel, manganese, and lithium, and develops new precursor synthesis processes to reduce costs and carbon emissions, enhancing supply chain resilience[50](index=50&type=chunk) [(III) Core Technologies and R&D Progress](index=13&type=section&id=(III)%20Core%20Technologies%20and%20R%26D%20Progress) During the reporting period, the company's 6-series ternary materials were certified for NEVs, high-nickel and ultra-high-nickel materials accounted for **50%** of sales and entered international customer validation, while significant progress was made in sodium-ion battery cathode materials and solid electrolyte materials, with **RMB 53.6214 million** in R&D investment and 8 patent applications - 6-series ternary materials have completed import certification in the new energy vehicle sector; high-nickel and ultra-high-nickel materials account for **50%** of sales, serving as the main source of operating revenue, with international customers (Toyota, Samsung) entering kilogram-level product verification[51](index=51&type=chunk) - New-generation layered oxide sodium-ion battery cathode materials show significantly improved capacity and cycle performance, adapting to high-voltage systems; the pilot line for hundreds of tons of polyanion-type sodium-ion battery cathode materials is largely complete[51](index=51&type=chunk) - Solid-state electrolytes have achieved ton-level stable preparation, actively advancing customer product verification and the construction of a hundred-ton pilot production line; high-capacity (300mAh/g) lithium-rich manganese-based materials adapted for solid-state battery systems have been sampled by multiple target customers[51](index=51&type=chunk) - During this period, **8** invention patent applications were filed, and **5** invention patents and **8** utility model patents were granted[52](index=52&type=chunk) R&D Investment | Indicator | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 53,621,444.38 | 51,581,586.38 | 3.95 | | Total R&D Investment | 53,621,444.38 | 51,581,586.38 | 3.95 | | Total R&D Investment as % of Operating Revenue | 7.52 | 5.30 | Increase 2.22 percentage points | - The company has **15** ongoing R&D projects, covering single-crystal mid-high nickel low-cobalt ternary materials, high-rate fast-charging ternary materials, high-nickel ternary materials, lithium cobalt oxide materials, sodium-ion battery cathode materials, solid/semi-solid battery materials, etc., with an estimated total investment of **RMB 206.77 million** and **RMB 53.6214 million** invested in the current period[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) R&D Personnel Situation | Indicator | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 251 | 282 | | R&D Personnel as % of Total Company Staff | 12.56 | 13.14 | | Total R&D Personnel Compensation (RMB 10k) | 1,389.16 | 1,547.47 | | Average R&D Personnel Compensation (RMB 10k) | 5.53 | 5.49 | [IV. Risk Factors](index=17&type=section&id=IV.%20Risk%20Factors) The company faces risks including sustained performance pressure and losses, technological iteration, raw material price volatility, insufficient capacity utilization, worsening industry competition, and macroeconomic uncertainties - Sustained performance pressure and loss risk: decline in ternary battery installed capacity, market growth concentrated in mid-nickel high-voltage products; if new products fail to achieve scaled orders, the company faces risks of capacity underutilization, declining revenue and gross margin, and continuous losses[60](index=60&type=chunk) - Risk of technological updates and iterations: rapid evolution of power battery technology routes, significant R&D investment, long cycles, and uncertainty in industrialization for new technologies; failure to keep pace or delayed industrialization will impact core competitiveness[61](index=61&type=chunk) - Risk of significant fluctuations in major raw material prices: price volatility of lithium carbonate, lithium hydroxide, etc., affects costs and profitability; the "cost-plus" pricing model has price transmission lag, potentially leading to inventory devaluation losses from high-priced stock[62](index=62&type=chunk)[63](index=63&type=chunk) - Risk of insufficient capacity utilization and impairment of fixed assets: high proportion of fixed assets and construction in progress to total assets, declining application share of ternary materials leading to low capacity utilization; if market demand falls short of expectations, it may result in idle fixed assets and significant impairment provisions[64](index=64&type=chunk) - Risk of worsening industry competition: the ternary cathode material industry has entered a zero-sum game, with market share concentrating among leading enterprises; lithium iron phosphate materials continue to impact the ternary market; if the company fails to make breakthroughs, it faces shrinking market share and compressed profit margins[65](index=65&type=chunk) - Macroeconomic environment risks: global macroeconomic uncertainties, fluctuations in downstream market demand, localization policies and trade barriers in European and American EV supply chains, and slowing electrification processes in some countries, bringing uncertainties to the company's performance and overseas market expansion[66](index=66&type=chunk) [V. Key Operating Conditions during the Reporting Period](index=18&type=section&id=V.%20Key%20Operating%20Conditions%20during%20the%20Reporting%20Period) During the reporting period, the company's operating revenue decreased by **26.69%** to **RMB 713 million**, with increased sales and R&D expenses, and a **23.16%** rise in financial expenses, while operating cash flow significantly improved, and asset-liability structure changed [(I) Analysis of Main Business](index=18&type=section&id=(I)%20Analysis%20of%20Main%20Business) During the reporting period, the company's operating revenue decreased by **26.69%**, and operating costs decreased by **23.84%**, influenced by product demand shifts and low capacity utilization, while sales and R&D expenses slightly increased, and financial expenses rose by **23.16%** Changes in Financial Statement Items | Item | Current Period Amount (RMB 10k) | Prior Period Amount (RMB 10k) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 71,281.25 | 97,232.33 | -26.69 | Product demand structural changes, reduced demand for 5-series and 8-series products, sales decline | | Operating Cost | 81,702.43 | 107,284.38 | -23.84 | Revenue decline, continued low capacity utilization | | Selling Expenses | 286.80 | 273.34 | 4.92 | Increased market development expenses | | Administrative Expenses | 3,478.67 | 3,616.31 | -3.81 | Continuous cost reduction management, refined management leading to expense optimization | | Financial Expenses | 1,845.15 | 1,498.12 | 23.16 | Decrease in borrowing interest was less than decrease in deposit interest income | | R&D Expenses | 5,362.14 | 5,158.16 | 3.95 | Ensuring continuous technological innovation to maintain the company's market competitive advantage | | Net Cash Flow from Operating Activities | -3,681.74 | -136,131.98 | Not Applicable | Decline in procurement scale since H2 last year, reduced cash outflow for procurement | | Net Cash Flow from Investing Activities | -65,081.71 | -8,669.41 | Not Applicable | Cash management using idle raised funds | | Net Cash Flow from Financing Activities | 9,557.15 | 99,770.55 | -90.42 | Last year's refinancing raised RMB 1.09 billion, no such event this year | [(III) Analysis of Assets and Liabilities](index=20&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, total assets were **RMB 7.267 billion** and total liabilities were **RMB 3.066 billion**, with decreases in liquid assets like monetary funds and receivables, while fixed assets increased by **10.35%** due to project capitalization, and long-term borrowings rose by **76.17%** Changes in Assets and Liabilities | Item Name | Current Period End Amount (RMB 10k) | % of Total Assets at Current Period End | Prior Year End Amount (RMB 10k) | % of Total Assets at Prior Year End | Change % from Prior Year End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 164,530.49 | 22.64 | 223,216.44 | 28.58 | -26.29 | Primarily due to RMB 600 million of raised funds used for cash management in this period | | Notes Receivable | 3,921.85 | 0.54 | 9,325.67 | 1.19 | -57.95 | Primarily due to decrease in sales revenue | | Accounts Receivable | 53,484.17 | 7.36 | 69,919.26 | 8.95 | -23.51 | Primarily due to decrease in sales revenue | | Inventories | 79,416.31 | 10.93 | 98,555.11 | 12.62 | -19.42 | Primarily due to control over raw material procurement and digestion of some inventory this year | | Fixed Assets | 262,604.73 | 36.14 | 237,980.22 | 30.47 | 10.35 | Primarily due to capitalization of construction projects | | Construction in Progress | 9,055.94 | 1.25 | 40,184.42 | 5.15 | -77.46 | Primarily due to capitalization of construction projects | | Notes Payable | 53,129.99 | 7.31 | 83,917.29 | 10.74 | -36.69 | Primarily due to decrease in notes issued for settlement of goods this year | | Accounts Payable | 20,217.63 | 2.78 | 29,742.02 | 3.81 | -32.02 | Primarily due to decrease in raw material purchases during the reporting period | | Non-current Liabilities Due Within One Year | 56,183.95 | 7.73 | 79,974.53 | 10.24 | -29.75 | Primarily due to repayment of some non-current liabilities due within one year | | Long-term Borrowings | 92,271.02 | 12.70 | 52,375.51 | 6.71 | 76.17 | Primarily due to the company obtaining new long-term borrowings after the maturity of non-current liabilities due within one year at the beginning of the year | [(IV) Analysis of Investment Status](index=22&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the reporting period, the company's financial assets measured at fair value totaled **RMB 925 million** at period-end, comprising **RMB 600 million** in trading financial assets and **RMB 325 million** in notes receivable financing, with **RMB 900 million** purchased and **RMB 300 million** sold/redeemed Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB 10k) | Amount Purchased in Current Period (RMB 10k) | Amount Sold/Redeemed in Current Period (RMB 10k) | Fair Value Change Gains/Losses in Current Period (RMB 10k) | Ending Balance (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Notes Receivable Financing) | 42,655.74 | 0 | 0 | -10,158.80 | 32,496.94 | | Trading Financial Assets | 0 | 90,000.00 | 30,000.00 | 0 | 60,000.00 | | Total | 42,655.74 | 90,000.00 | 30,000.00 | -10,158.80 | 92,496.94 | [(VI) Analysis of Major Holding and Participating Companies](index=23&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main wholly-owned subsidiaries, Guiyang New Material and Yilong New Material, both engaged in lithium-ion and sodium-ion battery material production and sales, reported losses during the period, as did the associate company Hongxing Electronics Financial Situation of Major Subsidiaries and Associate Companies | Company Name | Company Type | Main Business | Registered Capital (RMB 10k) | Total Assets (RMB 10k) | Net Assets (RMB 10k) | Operating Revenue (RMB 10k) | Operating Profit (RMB 10k) | Net Profit (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hongxing Electronics | Associate Company | Recycling of lithium-ion batteries and waste, and production and sales of cobalt, nickel, manganese, and lithium-containing materials | 15,000.00 | 50,901.50 | 33,214.30 | 11,427.13 | -1,752.21 | -1,752.21 | | Guiyang New Material | Subsidiary | Production and sales of lithium-ion and sodium-ion battery materials | 30,000.00 | 257,058.52 | 98,604.60 | 18,475.83 | -15,008.43 | -12,709.89 | | Yilong New Material | Subsidiary | Production and sales of lithium-ion and sodium-ion battery materials | 30,000.00 | 428,747.12 | 272,738.34 | 55,431.18 | -10,129.51 | -8,593.88 | [Section IV Corporate Governance, Environment and Society](index=24&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) Details changes in the company's governance structure, profit distribution plans, and its contributions to social responsibility initiatives like poverty alleviation and rural revitalization [I. Changes in Company Directors, Senior Management, and Core Technical Personnel](index=24&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, non-independent directors Mr. Wu Yong and Mr. Wu Jie resigned from their board and committee positions due to term expiration and personal reasons, and no longer hold other company positions - Mr. Wu Yong resigned from his directorship and audit committee membership due to term expiration and personal reasons[81](index=81&type=chunk) - Mr. Wu Jie resigned from his directorship and nomination committee membership due to term expiration and personal reasons[81](index=81&type=chunk) - Mr. Wu Yong and Mr. Wu Jie no longer hold other positions in the company after their resignations[81](index=81&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=24&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) During the reporting period, the company had no profit distribution plan or capital reserve to share capital conversion plan - Whether to distribute or convert: No[81](index=81&type=chunk) [V. Specific Situation of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=25&type=section&id=V.%20Specific%20Situation%20of%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20etc.) The company actively fulfills its social responsibilities by prioritizing local employment, providing training, purchasing agricultural products for poverty alleviation, and participating in rural education projects to support regional economic prosperity and rural revitalization - Prioritizes hiring qualified labor from the factory's location and surrounding areas, providing stable employment and vocational training opportunities for local residents[83](index=83&type=chunk) - Actively responds to the call for consumption-based poverty alleviation, purchasing various agricultural products as employee benefits to effectively support local characteristic agricultural development and increase farmers' income[83](index=83&type=chunk) - Actively participates in public welfare projects such as rural education organized by local Red Cross societies and other institutions, continuously contributing to regional economic prosperity and rural revitalization[83](index=83&type=chunk) [Section V Significant Matters](index=26&type=section&id=Section%20V%20Significant%20Matters) Covers the company's fulfillment of commitments, significant related party transactions, major contracts, and the progress and changes in the use of raised funds [I. Fulfillment of Commitments](index=26&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, the company, its actual controller, controlling shareholder, directors, and senior management strictly fulfilled all commitments related to the initial public offering and refinancing, including shareholding, lock-up, profit distribution, related party transactions, and avoiding competition - Controlling shareholder, actual controller and their controlled enterprises, directors, supervisors, senior management, and core technical personnel all strictly fulfilled their shareholding and lock-up commitments[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - The company, controlling shareholder, actual controller and their controlled enterprises, directors, and senior management all strictly fulfilled their commitments and measures to compensate for diluted immediate returns[85](index=85&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company and controlling shareholder both strictly fulfilled their profit distribution commitments[85](index=85&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - Actual controller, controlling shareholder, directors, supervisors, and senior management all strictly fulfilled their commitments to regulate related party transactions[85](index=85&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[112](index=112&type=chunk) - Actual controller, controlling shareholder, and Rainbow Group all strictly fulfilled their commitments to avoid horizontal competition[85](index=85&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk) [X. Significant Related Party Transactions](index=33&type=section&id=X.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company primarily engaged in financial transactions with related parties, including deposits and loans with China Electronics Finance Co., Ltd., and a property lease with Zhenhua Group Shenzhen Electronics Co., Ltd [(V) Financial Business between the Company and Related Financial Companies, and between the Company's Controlled Financial Companies and Related Parties](index=34&type=section&id=(V)%20Financial%20Business%20between%20the%20Company%20and%20Related%20Financial%20Companies%2C%20and%20between%20the%20Company's%20Controlled%20Financial%20Companies%20and%20Related%20Parties) The company had frequent financial transactions with China Electronics Finance Co., Ltd., controlled by its actual controller, with period-end deposits of **RMB 999 million** and loans of **RMB 634 million**, and a **RMB 2 billion** comprehensive credit line Deposit Business | Related Party | Relationship | Beginning Balance (RMB 10k) | Total Deposit Amount in Current Period (RMB 10k) | Total Withdrawal Amount in Current Period (RMB 10k) | Ending Balance (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Electronics Finance Co., Ltd. | Other enterprises controlled by the company's actual controller | 105,980.52 | 635,323.28 | 641,421.21 | 99,882.59 | Loan Business | Related Party | Relationship | Beginning Balance (RMB 10k) | Total Loan Amount in Current Period (RMB 10k) | Total Repayment Amount in Current Period (RMB 10k) | Ending Balance (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Electronics Finance Co., Ltd. | Company's actual controller | 74,900 | 15,500 | 27,000 | 63,400 | Credit Line Business | Related Party | Relationship | Business Type | Total Amount (RMB 10k) | Actual Amount (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | | China Electronics Finance Co., Ltd. | Other enterprises controlled by the company's actual controller | Comprehensive Credit Line | 200,000 | 15,500 | [XI. Significant Contracts and Their Fulfillment](index=35&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company primarily provided joint liability guarantees for its wholly-owned subsidiaries, Yilong New Material and Guiyang New Material, totaling **RMB 1.334 billion**, representing **31.76%** of the company's net assets, with no external guarantees [(II) Significant Guarantees Performed and Not Yet Performed during the Reporting Period](index=36&type=section&id=(II)%20Significant%20Guarantees%20Performed%20and%20Not%20Yet%20Performed%20during%20the%20Reporting%20Period) The company provided no external guarantees during the reporting period, primarily offering joint liability guarantees for its wholly-owned subsidiaries, Yilong New Material and Guiyang New Material, with a total guarantee amount of **RMB 528.8452 million** incurred during the period and an outstanding balance of **RMB 1.3341753 billion** at period-end, representing **31.76%** of net assets, all current - During the reporting period, there were no other guarantee matters except for the company providing financing guarantees for its subsidiaries[420](index=420&type=chunk) Guarantees Provided by the Company and its Subsidiaries to Subsidiaries (Partial) | Guarantor | Guaranteed Party | Relationship between Guaranteed Party and Listed Company | Guarantee Amount (RMB 10k) | Guarantee Type | Is Guarantee Fulfilled | Is Guarantee Overdue | Overdue Guarantee Amount (RMB 10k) | Is there Counter-guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhenhua New Material | Yilong New Material | Wholly-owned Subsidiary | 25,131.51 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Yilong New Material | Wholly-owned Subsidiary | 15,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Yilong New Material | Wholly-owned Subsidiary | 20,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 5,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 7,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 4,250.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 4,900.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 700.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 4,990.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 1,071.50 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 2,500.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 2,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 3,254.35 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 2,630.17 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 2,990.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 5,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | | Zhenhua New Material | Guiyang New Material | Wholly-owned Subsidiary | 27,000.00 | Joint and Several Liability Guarantee | No | No | 0 | No | - Total guarantee amount incurred for subsidiaries during the reporting period: **RMB 528.8452 million**[124](index=124&type=chunk) - Total outstanding guarantee amount for subsidiaries at the end of the reporting period: **RMB 1.3341753 billion**[124](index=124&type=chunk) - Ratio of total guarantee amount to the company's net assets: **31.76%**[124](index=124&type=chunk) [XII. Explanation of Progress in Use of Raised Funds](index=38&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company had cumulatively invested **RMB 1.186 billion** from its initial public offering, reaching **96.03%** completion, and **RMB 90.0926 million** from private placement, reaching **8.26%** completion, with the "Cathode Material Production Line Project (Yilong Phase III)" temporarily suspended, and **RMB 600 million** of idle funds used for cash management [(I) Overall Use of Raised Funds](index=38&type=section&id=(I)%20Overall%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company had cumulatively invested **RMB 1.186 billion** from its initial public offering, achieving **96.03%** completion, and **RMB 90.0926 million** from private placement, achieving **8.26%** completion Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (RMB 10k) | Net Raised Funds (RMB 10k) | Total Committed Investment of Raised Funds in Prospectus (RMB 10k) | Total Raised Funds Cumulatively Invested as of Period End (RMB 10k) | Cumulative Investment Progress as of Period End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 130,112.10 | 123,521.79 | 120,000.00 | 118,619.49 | 96.03 | | Private Placement | 109,309.99 | 109,009.26 | 109,009.26 | 9,009.26 | 8.26 | | Total | 239,422.09 | 232,531.05 | 229,009.26 | 127,628.75 | / | [(II) Details of Raised Fund Investment Projects](index=38&type=section&id=(II)%20Details%20of%20Raised%20Fund%20Investment%20Projects) The IPO-funded "Lithium-ion Power Battery Ternary Material Production Line Construction (Yilong Phase II)" is complete, with **RMB 200 million** invested and **RMB 467 million** in benefits, while the "Lithium-ion Battery Cathode Material Production Line Project (Shawan Phase II)" has invested **RMB 601 million** (**92.45%** complete); the private placement project "Cathode Material Production Line Project (Yilong Phase III)" has been temporarily suspended Detailed Use of Raised Funds | Project Name | Planned Total Investment of Raised Funds (RMB 10k) | Total Raised Funds Cumulatively Invested as of Period End (RMB 10k) | Cumulative Investment Progress as of Period End (%) | Date Project Reached Intended Usable State | Is Investment Progress in Line with Plan | Benefits Achieved This Year (RMB 10k) | Benefits or R&D Achievements Realized by This Project (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lithium-ion Battery Cathode Material Production Line Project (Shawan Phase II) | 65,000.00 | 60,089.51 | 92.45 | 2022.12.31 | Yes | -5,068.38 | -21,462.30 | | Lithium-ion Power Battery Ternary Material Production Line Construction (Yilong Phase II) | 20,000.00 | 20,008.19 | 100.04 | 2021.12.31 | Yes | -3,080.02 | 46,708.71 | | Replenishment of Working Capital (Initial Public Offering) | 35,000.00 | 35,000.00 | 100.00 | Not Applicable | Not Applicable | Not Applicable | Not Applicable | | Over-raised Funds (Replenishment of Working Capital) | 3,521.79 | 3,521.79 | 100.00 | Not Applicable | Not Applicable | Not Applicable | Not Applicable | | Cathode Material Production Line Project (Yilong Phase III) | 100,000.00 | 0 | 0 | Not Applicable | Note 2 (Temporarily Suspended) | Not Applicable | Not Applicable | | Replenishment of Working Capital (Private Placement) | 9,009.26 | 9,009.26 | 100.00 | Not Applicable | Not Applicable | Not Applicable | Not Applicable | Detailed Use of Over-raised Funds | Purpose | Total Over-raised Funds Planned for Investment (RMB 10k) | Total Over-raised Funds Cumulatively Invested as of Period End (RMB 10k) | Cumulative Investment Progress as of Period End (%) | | :--- | :--- | :--- | :--- | | Replenishment of Working Capital | 3,521.79 | 3,521.79 | 100.00 | [(III) Changes or Termination of Raised Fund Investment Projects during the Reporting Period](index=40&type=section&id=(III)%20Changes%20or%20Termination%20of%20Raised%20Fund%20Investment%20Projects%20during%20the%20Reporting%20Period) On April 24, 2025, the company approved the "Proposal on Re-evaluating and Temporarily Suspending Raised Fund Investment Projects," deciding to temporarily suspend the "Cathode Material Production Line Project (Yilong Phase III)" - On April 24, 2025, the company's Sixth Board of Directors' Twenty-Fourth Meeting reviewed and approved the "Proposal on Re-evaluating and Temporarily Suspending Raised Fund Investment Projects," re-evaluating and temporarily suspending the "Cathode Material Production Line Project (Yilong Phase III)," a raised fund investment project from the company's 2022 private placement of A-shares[130](index=130&type=chunk) [(IV) Other Uses of Raised Funds during the Reporting Period](index=41&type=section&id=(IV)%20Other%20Uses%20of%20Raised%20Funds%20during%20the%20Reporting%20Period) On December 20, 2024, the company approved the use of temporarily idle raised funds, up to **RMB 600 million**, for cash management by purchasing principal-protected investment products - On December 20, 2024, the company's Sixth Board of Directors' Twenty-Third Meeting and Sixth Supervisory Board's Twentieth Meeting reviewed and approved the "Proposal on Continuing to Use Part of Temporarily Idle Raised Funds for Cash Management," agreeing that the company may use up to **RMB 600 million** of temporarily idle raised funds for cash management, by purchasing principal-protected investment products, without affecting the normal progress of raised fund investment plans and the safety of raised funds[134](index=134&type=chunk)[135](index=135&type=chunk) [Section VI Share Changes and Shareholder Information](index=42&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) Provides an overview of the company's share capital movements, detailed shareholder structure, and confirms no changes in controlling shareholder or actual controller [I. Changes in Share Capital](index=42&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total ordinary shares or share capital structure - During the reporting period, there were no changes in the company's total ordinary shares or share capital structure[137](index=137&type=chunk) [II. Shareholder Information](index=42&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **17,854** ordinary shareholders, with China Zhenhua Electronic Group Co., Ltd. as the controlling shareholder (**24.65%** stake) and China Electronics Investment Holdings Co., Ltd. holding **5.66%**, all top ten shareholders holding unrestricted shares - Total number of ordinary shareholders as of the end of the reporting period: **17,854** households[138](index=138&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Number of Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China Zhenhua Electronic Group Co., Ltd. | 125,380,000 | 24.65 | State-owned Legal Person | | China Electronics Investment Holdings Co., Ltd. | 28,786,812 | 5.66 | State-owned Legal Person | | SDIC Manufacturing Transformation and Upgrading Fund (Limited Partnership) | 25,000,000 | 4.91 | Other | | Central Enterprise Rural Industry Investment Fund Co., Ltd. | 19,056,588 | 3.75 | State-owned Legal Person | | SDIC (Shanghai) Technology Achievement Transformation Venture Capital Fund Enterprise (Limited Partnership) | 14,396,049 | 2.83 | Other | | Zhoushan Xintianyu Growth Equity Investment Partnership (Limited Partnership) | 12,870,650 | 2.53 | Other | | Shenzhen Xintianyu Phase VI Equity Investment Partnership (Limited Partnership) | 9,300,500 | 1.83 | Other | | Dong Xia | 7,590,000 | 1.49 | Domestic Natural Person | | CSC Financial Zhenhua New Material STAR Market Strategic Placement Collective Asset Management Plan | 6,233,440 | 1.23 | Other | | Hong Kong Securities Clearing Company Limited | 5,876,664 | 1.16 | Overseas Legal Person | - China Zhenhua Electronic Group Co., Ltd. is the company's controlling shareholder[141](index=141&type=chunk) - China Electronics Investment Holdings Co., Ltd. is an enterprise controlled by China Electronics Corporation, the company's actual controller[141](index=141&type=chunk) - Zhoushan Xintianyu Growth Equity Investment Partnership (Limited Partnership) and Shenzhen Xintianyu Phase VI Equity Investment Partnership (Limited Partnership) have the same general partner, Shenzhen Qianhai Xintianyu Capital Management Co., Ltd., forming a concerted action party[141](index=141&type=chunk) [IV. Changes in Controlling Shareholder or Actual Controller](index=44&type=section&id=IV.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - During the reporting period, there were no changes in the company's controlling shareholder or actual controller[144](index=144&type=chunk) [Section VII Bond-Related Information](index=46&type=section&id=Section%20VII%20Bond-Related%20Information) Confirms the absence of corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=46&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[146](index=146&type=chunk) [II. Convertible Corporate Bonds](index=46&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[146](index=146&type=chunk) [Section VIII Financial Report](index=47&type=section&id=Section%20VIII%20Financial%20Report) Contains the unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxation, and other financial disclosures [I. Audit Report](index=47&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [II. Financial Statements](index=47&type=section&id=II.%20Financial%20Statements) This section includes the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the financial position, operating results, cash flows, and changes in owners' equity at the end of and during the reporting period - Consolidated Balance Sheet: As of June 30, 2025, total assets were **RMB 7.267 billion**, total liabilities were **RMB 3.066 billion**, and owners' equity attributable to the parent company was **RMB 4.201 billion**[148](index=148&type=chunk)[150](index=150&type=chunk) - Consolidated Income Statement: For the first half of 2025, operating revenue was **RMB 713 million**, total profit was **-RMB 255 million**, and net profit attributable to parent company shareholders was **-RMB 217 million**[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - Consolidated Cash Flow Statement: For the first half of 2025, net cash flow from operating activities was **-RMB 36.8174 million**, net cash flow from investing activities was **-RMB 651 million**, and net cash flow from financing activities was **RMB 95.5715 million**[164](index=164&type=chunk)[165](index=165&type=chunk) - Consolidated Statement of Changes in Owners' Equity: For the first half of 2025, total owners' equity attributable to the parent company decreased by **RMB 217 million**[170](index=170&type=chunk)[171](index=171&type=chunk) [III. Company's Basic Information](index=65&type=section&id=III.%20Company's%20Basic%20Information) Guizhou Zhenhua New Material Co., Ltd., established in 2004, relocated to Guiyang and renamed in 2018, listed on the Shanghai Stock Exchange STAR Market in September 2021 with a registered capital of **RMB 509 million**, primarily engages in R&D, production, and sales of lithium-ion battery cathode, anode, and separator materials - The company was established in Shenzhen on April 26, 2004, relocated to Guiyang on May 25, 2018, and changed its name to Guizhou Zhenhua New Material Co., Ltd[178](index=178&type=chunk) - The company was listed on the Shanghai Stock Exchange on September 14, 2021, with stock abbreviation "Zhenhua New Material" and stock code "688707"[178](index=178&type=chunk) - Registered capital: **RMB 508.740205 million**[178](index=178&type=chunk) - The company primarily engages in the production of lithium-ion battery cathode materials, anode materials, and separator materials; lithium-ion battery production and manufacturing; development, research, technical consulting, and operation of electronic new materials; domestic commercial and material supply and marketing; and import and export business[179](index=179&type=chunk) - It has two subsidiaries: Guizhou Zhenhua New Material Co., Ltd. and Guizhou Zhenhua Yilong New Material Co., Ltd[178](index=178&type=chunk) [IV. Basis of Financial Statement Preparation](index=65&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, confirming its ability to continue as a going concern for at least 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises - Basic Standards and specific accounting standards issued by the Ministry of Finance, based on actual transactions and events[180](index=180&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, with no significant matters affecting its going concern ability[181](index=181&type=chunk) [V. Significant Accounting Policies and Estimates](index=65&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates for financial statement preparation, covering compliance with accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency translation, financial instruments, receivables, inventories, contract assets, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, revenue recognition, government grants, deferred income tax assets/liabilities, and leases - Complies with the requirements of Accounting Standards for Business Enterprises, accurately and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[182](index=182&type=chunk) - The accounting period runs from January 1 to December 31 of the Gregorian calendar, with a normal operating cycle of 12 months, and the functional currency is RMB[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) - Financial instruments are classified as financial assets measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss, and financial liabilities measured at fair value through profit or loss, financial guarantee contracts, and amortized cost[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - For accounts receivable and contract assets, loss provisions are measured at an amount equal to the expected credit losses over the entire lifetime, calculated using a provision matrix based on historical credit loss experience[210](index=210&type=chunk)[211](index=211&type=chunk) - When inventories are issued, raw materials are determined by the moving weighted average method, and finished goods by the weighted average method to ascertain actual cost; the inventory system is perpetual, and inventory depreciation provisions are made for individual inventory items[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) - Fixed asset depreciation uses the straight-line method, with buildings and structures depreciated over 30-40 years, machinery and equipment over 5-10 years, electronic and office equipment over 5 years, and transportation and other equipment over 3-5 years[231](index=231&type=chunk) - Intangible assets (land use rights, patent rights, software) are amortized using the straight-line method; R&D expenditures are expensed in the research phase and capitalized in the development phase when conditions are met, with the completion of pilot production as the dividing line between research and development phases[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) - Revenue is recognized when performance obligations in a contract are satisfied, i.e., when the customer obtains control of the related goods or services, with detailed accounting treatments for contracts for sale of goods, provision of services, sales return clauses, and warranty obligations[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) - Government grants are recognized when the company can meet the attached conditions and receive them, classified as asset-related or income-related, and recognized as deferred income or included in current profit or loss, respectively[254](index=254&type=chunk)[255](index=255&type=chunk) - As a lessee, right-of-use assets and lease liabilities are recognized, except for short-term leases and leases of low-value assets; as a lessor, leases are accounted for as finance leases or operating leases[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk) [VI. Taxation](index=88&type=section&id=VI.%20Taxation) The company's main taxes include VAT (**13%**, **6%**), Urban Maintenance and Construction Tax (**7%**, **5%**), Corporate Income Tax (**25%**, **15%**), Education Surcharge (**3%**), and Local Education Surcharge (**2%**), with subsidiaries in western regions enjoying a **15%** corporate income tax preferential rate Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of products, raw materials, leasing, other service income | 13%、6% | | Urban Maintenance and Construction Tax | Actually paid turnover tax | 7%、5% | | Corporate Income Tax | Taxable income | 25%、15% | | Education Surcharge | Actually paid turnover tax | 3% | | Local Education Surcharge | Actually paid turnover tax | 2 | - Subsidiaries Guizhou Zhenhua New Material Co., Ltd. and Guizhou Zhenhua Yilong New Material Co., Ltd., as encouraged industries in the western region, pay corporate income tax at a **15%** preferential rate in accordance with the State Taxation Administration's announcement on corporate income tax issues related to the "Catalog of Encouraged Industries in the Western Region"[268](index=268&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=88&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, beginning balances, and current period changes for each item in the consolidated financial statements, including monetary funds, financial assets, receivables, inventories, long-term equity investments, fixed assets, construction in progress, intangible assets, deferred tax assets/liabilities, restricted assets, short-term borrowings, payables, contract liabilities, employee benefits, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, long-term borrowings, deferred income, share capital, capital reserves, special reserves, surplus reserves, undistributed profits, operating revenue and cost, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, credit impairment losses, asset impairment losses, non-operating income, non-operating expenses, income tax expenses, and cash flow statement items [VIII. R&D Expenses](index=133&type=section&id=VIII.%20R%26D%20Expenses) During the reporting period, the company's total R&D expenses were **RMB 53.6214 million**, all expensed, representing a **3.95%** year-on-year increase, primarily comprising employee compensation, direct inputs, depreciation and amortization, equipment debugging fees, and other expenses R&D Expenses by Nature | Item | Amount Incurred in Current Period (RMB) | Amount Incurred in Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 13,891,554.27 | 15,474,719.68 | | Direct Inputs | 30,867,008.13 | 25,171,506.31 | | Depreciation and Amortization | 5,130,977.11 | 3,959,025.99 | | Equipment Debugging Fees | 1,743,871.46 | 3,738,792.58 | | Other Expenses | 1,988,033.41 | 3,237,541.82 | | Total | 53,621,444.38 | 51,581,586.38 | | Of which: Expensed R&D Investment | 53,621,444.38 | 51,581,586.38 | [IX. Changes in Consolidation Scope](index=134&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, there were no significant changes in the company's consolidation scope, such as business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, there were no significant changes in the company's consolidation scope, such as business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries[391](index=391&type=chunk) [X. Interests in Other Entities](index=135&type=section&id=X.%20Interests%20in%20Other%20Entities) The company holds full ownership in Guiyang New Material and Yilong New Material, both engaged in lithium-ion and sodium-ion material production and sales, and a **15.53%** equity interest in associate Hongxing Electronics, accounted for using the equity method with board representation [1. Interests in Subsidiaries](index=135&type=section&id=1.%20Interests%20in%20Subsidiaries) The company owns two wholly-owned subsidiaries, Guiyang New Material and Yilong New Material, each with a registered capital of **RMB 30 million**, primarily engaged in the production and sales of lithium-ion and sodium-ion battery materials Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (RMB 10k) | Business Nature | Shareholding Percentage (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Guiyang New Material | Guiyang City | 30,000.00 | Production and sales of lithium-ion and sodium-ion battery materials | 100.00 | Establishment | | Yilong New Material | Qianxinan Prefecture | 30,000.00 | Production and sales of lithium-ion and sodium-ion battery materials | 100.

Group 1 - The company reported a revenue of 712.81 million yuan, representing a year-on-year decline of 27% [1] - The net profit attributable to shareholders of the listed company was -217.43 million yuan, indicating an expanded loss [1] - The industry is facing increased competition, impacting the company's financial performance [1]

Group 1 - The company's operating revenue for the first half of 2025 is 713 million, representing a year-on-year decline of 26.69% [1] - The net loss attributable to shareholders of the listed company is 217 million, compared to a net loss of 203 million in the same period last year [1]