Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [5]. Core Views - The company has shown significant revenue growth, with a 29% increase in revenue for the first half of 2024, reaching 800 million, and a 112% increase in net profit, amounting to 100 million [1]. - The company benefits from a recovery in the industry, with improved profitability driven by stable raw material prices and enhanced internal cost controls [1]. - The company has a strong customer base, primarily consisting of large international retailers and e-commerce platforms, which provides a competitive advantage in the pet hygiene and care sector [3]. - The report adjusts profit forecasts for 2024-2026, estimating net profits of 180 million, 230 million, and 290 million respectively, with corresponding P/E ratios of 13X, 10X, and 8X [4]. Financial Performance - In Q2 2024, the company reported revenue of 430 million, a 24% year-on-year increase, and a net profit of 50 million, a 12% increase [1]. - For the first half of 2024, the company achieved a gross margin of 18.9%, up 5.5 percentage points, and a net margin of 11.7%, up 4.6 percentage points [1]. - The company distributed dividends of 49 million in the first half of 2024, with a payout ratio of 51.9% [1]. Regional Performance - The company generated 760 million from overseas markets, reflecting a 29% increase and accounting for 93% of total revenue, while domestic revenue was 50 million, also up 29% [2]. Product Segmentation - Revenue from pet pads reached 700 million, a 30% increase, making up 88% of total revenue, while pet diapers contributed 50 million, a 13% increase, accounting for 6% [1].

Group 1: Event Announcement - Tianjin Yiyi Hygiene Products Co., Ltd. will participate in the "2024 Annual Tianjin Listed Companies Semi-Annual Report Performance Briefing and Investor Online Reception Day" [2] - The event will be held online on September 3, 2024, from 15:00 to 16:30 [2] - Investors can participate via the "Panorama Roadshow" website, WeChat public account, or by downloading the Panorama Roadshow APP [2] Group 2: Company Representatives - The event will feature communication with key company representatives: Chairman and General Manager Gao Fuzhong, Secretary of the Board and CFO Zhou Lina, and Independent Director Zhang Xiaoyu [2] - They will address topics such as company performance, governance, development strategy, operational status, and sustainable development [2] Group 3: Investor Engagement - Investors are encouraged to submit questions by September 2, 2024, at 12:00 via the company's securities department email [2] - The company will respond to commonly asked questions during the online reception day [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][4][6] Core Insights - The company achieved a significant revenue increase of 29.31% year-on-year in H1 2024, reaching 812 million yuan, with a net profit growth of 111.71% to 95 million yuan [3][4] - The company is actively expanding its overseas customer base, with 93.39% of its revenue coming from international markets in H1 2024, reflecting a 29.35% increase year-on-year [4][6] - The company has a strong market position in the pet hygiene care products sector, with a high export share and stable relationships with major clients [4][6] Summary by Sections Performance Overview - In H1 2024, the company reported revenue of 812 million yuan, a 29.31% increase year-on-year, and a net profit of 95 million yuan, up 111.71% [3][4] - The second quarter of 2024 saw revenue of 429 million yuan, a 24.47% increase year-on-year, with net profit growing by 12.08% [3] Revenue Breakdown - Pet pad products generated 713 million yuan in revenue, accounting for 87.71% of total revenue, with a year-on-year growth of 30.47% [4] - International revenue reached 759 million yuan, representing 93.39% of total revenue, with a gross margin of 20.10% [4][6] Profitability Metrics - The company's gross margin improved to 18.88%, up 5.53 percentage points year-on-year, while the net profit margin increased to 11.72%, up 4.56 percentage points [6] - The company has maintained stable operating costs, contributing to significant profitability improvements [6] Future Projections - Revenue forecasts for 2024-2026 are 1.701 billion yuan, 1.960 billion yuan, and 2.245 billion yuan, respectively, with net profits projected at 175 million yuan, 210 million yuan, and 241 million yuan [7][9] - The company is expected to maintain a strong market position and continue expanding its customer base in the medium to long term [6][9]

天津金诺律师事务所 关于天津市依依卫生用品股份有限公司 文 目 录 | 一、公司实施本次员工持股计划的主体资格 5 | | --- | | 二、本次员工持股计划内容的合法合规性 | | 三、本次员工持股计划审议程序的合法合规性 | | 四、本次员工持股计划的信息披露 | | 五、本次员工持股计划股东大会回避表决安排的合法合规性 10 | | 六、本次员工持股计划在公司融资时参与方式的合法合规性 | | 七、本次员工持股计划一致行动关系认定的合法合规性 10 | | 八、结论意见 11 | 天津市区:中国·天津和平区徐州道 122 号万通中心 23 层 海新区:中国·天津市滨海新区新城西路 5 号周大福金融中心 2204-2205 邮编 300042 邮编 300450 — 1 — 2024 年员工持股计划 之 法律意见书 WINNERS 金 诺 律 师 事 务 所 二〇二四年八月 天津金诺律师事务所 关于天津市依依卫生用品股份有限公司 2024 年员工持股计划 之 法律意见书 致:天津市依依卫生用品股份有限公司 天津金诺律师事务所(以下简称"本所")接受天津市依依卫生用品股份有 限公司(以下简称"公司"或"依 ...

证券代码：001206 证券简称：依依股份 公告编号：2024-039 天津市依依卫生用品股份有限公司 关于 2024 年半年度分红派息实施公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 特别提示： 1、根据《中华人民共和国公司法》《上市公司股份回购规则》《深圳证券交 易所上市公司自律监管指引第9号——回购股份》等相关规定，上市公司回购专 用账户中的股份不享有利润分配等权利。截至披露日，天津市依依卫生用品股份 有限公司（以下简称"公司"或"本公司"）通过回购专用证券账户持有公司股 份1,907,787股，因此公司以本次权益分派实施时股权登记日的公司总股本减去公 司回购专户持有的股份后的股本为基数，向全体股东每10股派发现金红利2.70元 （含税），不送红股，不以公积金转增股本。公司本次实际现金分红总额=实际参 与权益分派的股本×分配比例，即：182,986,021股×0.27元/股=49,406,225.67元。 2、因公司回购专户中的股份不享有利润分配的权利，根据股票市值不变原 则，实施权益分派前后公司总股本保持不变，现金分红总额分摊到每一股的比例 将 ...

证券代码：001206 证券简称：依依股份 公告编号：2024-037 天津市依依卫生用品股份有限公司 关于使用闲置自有资金进行现金管理的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 天津市依依卫生用品股份有限公司（以下简称"公司"）于 2024 年 8 月 22 日召 开第三届董事会第十五次会议，审议通过了《关于使用闲置自有资金进行现金管理 的议案》，同意公司及全资子公司在不影响日常生产经营、保证资金安全性和流动性 的前提下，使用额度不超过人民币 1.00 亿元（含 1.00 亿元）的闲置自有资金进行现 金管理，使用期限自公司董事会审议通过之日起不超过 12 个月（含 12 个月）。在前 述期限和额度范围内资金可以滚动使用。该议案在董事会权限范围内，无需提交股 东大会审议。本事项不涉及关联交易。现将具体事宜公告如下： 一、投资概况 （一）投资目的 在不影响公司及全资子公司正常经营及风险可控的前提下，合理利用闲置自有 资金进行现金管理，有利于提高资金使用效率，增加资金收益，为公司及股东获取 更多的回报。 （二）资金来源 公司闲置自有资金，不存在使用募集 ...

证券代码：001206 证券简称：依依股份 公告编号：2024-038 天津市依依卫生用品股份有限公司 关于2024年第三次临时股东大会增加临时提案 暨股东大会补充通知的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 天津市依依卫生用品股份有限公司（以下简称"公司"）于2024年8月15日召开第 三届董事会第十四次会议审议通过了《关于提请召开2024年第三次临时股东大会的议案》， 决定于2024年9月2日（星期一）召开2024年第三次临时股东大会，并于2024年8月16 日在巨潮资讯网（www.cninfo.com.cn）披露了《关于召开2024年第三次临时股东大会 通知的公告》（公告编号：2024-030）。 2024年8月22日，公司董事会收到控股股东高福忠先生《关于在天津市依依卫生用 品股份有限公司2024年第三次临时股东大会增加临时提案的函》，提议将经公司第三 届董事会第十五次会议审议通过的《关于公司及全资子公司向金融机构申请综合授信 额度并由公司为其提供担保的议案》提交公司2024年第三次临时股东大会审议。该提 议符合《中华人民共和国公司法》（ ...

证券代码：001206 证券简称：依依股份 公告编号：2024-034 天津市依依卫生用品股份有限公司 2024 年半年度募集资金存放与使用情况的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 根据《上市公司监管指引第 2 号——上市公司募集资金管理和使用的监管 要求》《深圳证券交易所股票上市规则》《深圳证券交易所上市公司自律监管指 引第 1 号——主板上市公司规范运作》等有关规定，现将天津市依依卫生用品 股份有限公司（以下简称"公司"或"本公司"）2024 年半年度募集资金存放 与使用情况专项说明如下： 一、募集资金基本情况 （一）扣除发行费用后的实际募集资金金额、资金到账时间 二、募集资金存放和管理情况 为了规范募集资金的管理和使用，保护投资者权益，本公司依照中国证监 会《上市公司监管指引第 2 号——上市公司募集资金管理和使用的监管要求》 等文件的有关规定，结合公司实际情况，制定了《天津市依依卫生用品股份有 限公司募集资金管理制度》（以下简称"《管理制度》"），对公司募集资金 的存放、使用及管理情况的监管等方面做出了具体明确的规定，并按照《管理 制 ...

证券代码：001206 证券简称：依依股份 公告编号：2024-032 天津市依依卫生用品股份有限公司 第三届董事会第十五次会议决议公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 一、董事会会议召开情况 天津市依依卫生用品股份有限公司（以下简称"公司"）第三届董事会第十 五次会议通知已于 2024 年 8 月 12 日通过电话、邮件方式送达。会议于 2024 年 8 月 22 日以现场表决的方式在公司会议室召开。本次会议应出席董事 12 名，实 际出席董事 12 名。会议由董事长高福忠先生主持，公司全部监事、高级管理人 员列席了会议。本次会议的召开和表决程序符合《中华人民共和国公司法》等法 律、法规、规范性文件和《天津市依依卫生用品股份有限公司章程》（以下简称 "《公司章程》"）的有关规定，会议合法、有效。 二、董事会会议审议情况 本议案不涉及关联交易，无需回避表决。 1、审议通过《关于 2024 年半年度报告全文及其摘要的议案》 （1）议案内容： 经审议，董事会认为公司《2024 年半年度报告》全文及其摘要的编制和审 议程序符合法律、法规和《公司章程》 ...

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides important disclaimers, outlines the report structure, and defines key terms used throughout the document [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Committee, and senior management ensure the accuracy and completeness of this semi-annual report, noting that future plans are not substantive commitments - The company plans to distribute a cash dividend of **2.70 Yuan per 10 shares** (tax inclusive) to all shareholders based on the share capital as of June 30, 2024, with no bonus shares or capital reserve conversions[2](index=2&type=chunk) [Definitions of Key Terms](index=5&type=section&id=%E9%87%8A%E4%B9%89) This chapter defines key terms used in the report, covering the company, its subsidiaries, major customers, business models, and other relevant parties - Major customers include internationally renowned retailers and e-commerce platforms such as PetSmart, Chewy, Walmart, Amazon, and Coupang (Korea)[5](index=5&type=chunk) - The company's business model primarily involves **ODM (Original Design Manufacturer)** and **OEM (Original Equipment Manufacturer)**[5](index=5&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section introduces the company and presents its key financial performance metrics for the reporting period [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Tianjin Yiyi Hygiene Products Co, Ltd (stock code: 001206) is listed on the Shenzhen Stock Exchange, with Gao Fuzhong as its legal representative [Key Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company achieved strong performance with revenue increasing by 29.31% and net profit attributable to shareholders surging by 111.71%, despite a 96.24% decrease in net cash flow from operating activities Key Financial Indicators (Million Yuan) | Indicator | Current Period (Million Yuan) | Prior Period (Million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 812.48 | 628.34 | 29.31% | | Net Profit Attributable to Shareholders | 95.19 | 44.96 | 111.71% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses) | 82.31 | 43.33 | 89.97% | | Net Cash Flow from Operating Activities | 3.90 | 103.71 | -96.24% | | Basic Earnings Per Share (Yuan/share) | 0.51 | 0.24 | 112.50% | | Weighted Average Return on Net Assets | 5.23% | 2.48% | Increased by 2.75 percentage points | | Total Assets | 1,992.99 | 1,981.19 | 0.60% (vs. end of prior year) | | Net Assets Attributable to Shareholders | 1,793.18 | 1,771.18 | 1.24% (vs. end of prior year) | - The significant decrease in net cash flow from operating activities is primarily due to two factors: 1) providing credit terms to new customers, which reduced cash received from sales; and 2) increased export orders leading to higher cash payments for goods and services[36](index=36&type=chunk) [Non-recurring Gains and Losses](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) The company's non-recurring gains and losses totaled **12.88 million Yuan** during the reporting period, mainly from entrusted investments and fair value changes of financial assets Non-recurring Gains and Losses (Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 0.76 | | Government Subsidies | 0.26 | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities | 4.98 | | Gains/Losses from Entrusted Investment or Asset Management | 11.88 | | Other Non-operating Income and Expenses, Net | -0.70 | | Income Tax Impact | -4.29 | | **Total** | **12.88** | [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a comprehensive analysis of the company's operations, financial condition, and key performance drivers during the reporting period [Overview of Principal Business](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's core business involves R&D, production, and sales of disposable hygiene products (pet and personal) and non-woven fabrics, primarily through ODM/OEM exports, with pet hygiene products accounting for **93.93% of revenue** [Introduction to Principal Business](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E4%BB%8B%E7%BB%8D) The company specializes in R&D, production, and sales of disposable hygiene products (pet and personal) and non-woven fabrics, aiming to be a leader in the pet hygiene sector with products sold in nearly 40 countries - The company's principal business is the research, development, production, and sale of disposable hygiene products and non-woven fabrics, covering both pet and personal care sectors[18](index=18&type=chunk) [Main Products and Uses](index=10&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E7%94%A8%E9%80%94) The company's main products include disposable pet hygiene products (pads, diapers, waste bags) and personal hygiene products (adult/baby care pads, sanitary napkins), along with non-woven fabrics as raw materials Main Products and Uses | Product Category | Main Products | Main Functions and Uses | | :--- | :--- | :--- | | Disposable Pet Hygiene Products | Pet pads, pet diapers | Address pet excretion issues, maintain environmental hygiene, aid in training | | Disposable Personal Hygiene Products | Care pads (adult, baby) | Used for incontinence care, baby care, feminine hygiene, and postpartum care | | Non-woven Fabric | - | Main raw material for hygiene products, lightweight and environmentally friendly | [Main Business Model](index=11&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company operates on a "production-to-order" model with a robust supplier management system, focusing on ODM/OEM for international markets and a mix of direct sales, distribution, and proprietary brands domestically - Production Model: Primarily **ODM/OEM**, adopting a "production-to-order" strategy[22](index=22&type=chunk) - Sales Model: Primarily **ODM/OEM** for overseas markets; domestic sales through direct channels, distribution, e-commerce platforms for proprietary brands, and ODM/OEM services for domestic brands[23](index=23&type=chunk) [Industry Development Status and Trends](index=11&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E7%8A%B6%E5%86%B5) While the global pet industry is mature, China's market is rapidly growing, reaching **279.3 billion Yuan** in 2023, with significant growth potential due to a lower pet ownership penetration rate (22%) compared to developed countries - In 2023, the consumption market size for urban pets (dogs and cats) in China reached **279.3 billion Yuan**, a year-on-year increase of **3.2%**[25](index=25&type=chunk) - China's pet penetration rate was approximately **22%** in 2023, significantly lower than the United States (**66%**) and Europe (**50%**) in 2022, indicating vast growth potential[25](index=25&type=chunk) [Market Competition Landscape and Company Position](index=13&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E7%9A%84%E5%B8%82%E5%9C%BA%E7%AB%9E%E4%BA%89%E6%A0%BC%E5%B1%80%E5%8F%8A%E5%85%AC%E5%8F%B8%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D) The Chinese pet products industry is fragmented but rapidly developing, and the company maintains a strong market position, with its pet disposable hygiene product exports accounting for **33.69%** of China's total in H1 2024 - The company holds a significant market share in the export of disposable pet hygiene products, accounting for **33.69%** in the first half of 2024, indicating a stable market position[27](index=27&type=chunk) [Key Performance Drivers](index=13&type=section&id=%EF%BC%88%E5%85%AD%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company's performance growth is primarily driven by social factors like demographic shifts, economic factors such as rising disposable income, and policy support for civilized pet ownership - Social Drivers: Demographic shifts, including an aging population and the rise of the single economy, have increased emotional demand for pet companionship[28](index=28&type=chunk) - Economic Drivers: Growth in per capita disposable income has enhanced pet owners' purchasing power and willingness to spend[29](index=29&type=chunk)[30](index=30&type=chunk) - Policy Drivers: The implementation of civilized pet ownership regulations has boosted demand for pet hygiene products, such as pet diapers and waste bags[30](index=30&type=chunk) [Analysis of Core Competencies](index=14&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include large-scale production (annual capacity of **4.6 billion pet pads**), continuous R&D innovation, stable premium customer resources, stringent quality and cost control, and upstream supply chain integration - Scaled Production: Annual production capacity for pet pads has reached **4.6 billion pieces**, with exports accounting for over **30%** of similar domestic products[31](index=31&type=chunk) - Innovation and R&D: Successfully launched thousands of functional pet hygiene products with features such as fixed tabs, quick-drying, antibacterial properties, and bite resistance[32](index=32&type=chunk) - Customer Resources: Established long-term and stable cooperative relationships with major global retailers and brands including Amazon, PetSmart, Walmart, and Target[33](index=33&type=chunk) - Supply Chain Assurance: Production of non-woven fabric, a key raw material, through subsidiaries effectively ensures supply chain stability, product quality, and cost control[35](index=35&type=chunk) [Analysis of Principal Business](index=16&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In H1 2024, the company's performance grew significantly due to the end of overseas customer destocking and new customer orders, with revenue up **29.31%** and net profit up **111.71%**, driven by pet hygiene products and international sales Financial Performance Indicators (Million Yuan) | Financial Indicator | Current Period (Million Yuan) | Prior Period (Million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 812.48 | 628.34 | 29.31% | | Operating Cost | 659.08 | 544.43 | 21.06% | | Net Profit Attributable to Parent Company | 95.19 | 44.96 | 111.71% | Revenue Composition (H1 2024) | Category | Revenue (Million Yuan) | Share of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | **By Product** | | | | | Pet Pads | 712.61 | 87.71% | 30.47% | | Pet Diapers | 46.90 | 5.77% | 13.25% | | **By Region** | | | | | Overseas | 758.79 | 93.39% | 29.35% | | Domestic | 53.70 | 6.61% | 28.71% | - The gross margin for disposable pet hygiene products increased from **14.11%** in the prior period to **20.01%**, an increase of **5.90 percentage points**[38](index=38&type=chunk) [Analysis of Non-Principal Business](index=17&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-principal business income primarily stemmed from investment activities, including **8.55 million Yuan** from wealth management products and foreign currency derivatives, and **8.10 million Yuan** from fair value changes, which are non-recurring Non-Principal Business Income (Million Yuan) | Item | Amount (Million Yuan) | Share of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 8.55 | 6.82% | Investment income from wealth management products and foreign currency derivatives | | Gains/Losses from Fair Value Changes | 8.10 | 6.46% | Fair value changes of unexpired wealth management products and foreign currency derivatives | [Analysis of Assets and Liabilities](index=18&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, total assets remained stable, with accounts receivable increasing by **3.85 percentage points** due to new customer credit terms, and cash decreasing by **5.71 percentage points** due to reduced collections and increased wealth management product purchases - Accounts receivable significantly increased from **13.31%** to **17.16%** of total assets compared to the end of the previous year, primarily because new major customers, whose shipments began in April 2024, were granted **60-day credit terms**[41](index=41&type=chunk) - Cash and cash equivalents decreased from **13.61%** to **7.90%** of total assets compared to the end of the previous year, mainly due to reduced sales collections from new customer credit terms and increased purchases of wealth management products[41](index=41&type=chunk) [Analysis of Investment Status](index=19&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company significantly reduced equity investments by **95%** year-on-year, engaged in foreign exchange derivative investments for hedging, and fully utilized its 2021 IPO proceeds, with remaining funds from a terminated project permanently supplementing working capital - To mitigate foreign exchange risk, the company engaged in foreign exchange derivative transactions, with the period-end investment amount accounting for **22.87%** of the company's net assets[50](index=50&type=chunk)[51](index=51&type=chunk) - The company's proceeds from its 2021 initial public offering have been fully utilized, and all dedicated fundraising accounts have been closed[53](index=53&type=chunk) - Due to changes in market conditions, the planned "Hygiene Care Materials Project" was terminated, and its remaining raised funds of **202 million Yuan** were permanently used to supplement working capital[58](index=58&type=chunk)[59](index=59&type=chunk)[63](index=63&type=chunk) [Risks and Countermeasures](index=26&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces operational risks including raw material price volatility, rising labor costs, customer concentration, exchange rate fluctuations, export tax rebate policy changes, and international trade shifts, addressed through various management and financial strategies - Raw Material Price Volatility Risk: Direct materials account for over **80%** of the main business costs, making performance highly susceptible to price fluctuations[67](index=67&type=chunk) - Customer Concentration Risk: Sales to the top five customers accounted for **48.14%** of main business revenue during the reporting period, indicating reliance on major clients[68](index=68&type=chunk) - Exchange Rate Fluctuation Risk: Products are primarily exported and settled in USD, so RMB exchange rate fluctuations have an uncertain impact on profitability[68](index=68&type=chunk) - International Situation Risk: Products exported to the United States were subject to an additional **7.5%** tariff in June 2023, and future trade policy changes may have an impact[69](index=69&type=chunk) [Corporate Governance](index=28&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section details the company's corporate governance structure, including shareholder meetings and profit distribution plans [Shareholder Meeting Information](index=28&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%AC%E5%BC%80%E7%9A%84%E5%B9%B4%E5%BA%A6%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E5%92%8C%E4%B8%B4%E6%97%B6%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E7%9A%84%E6%9C%89%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company held three shareholder meetings, including two extraordinary general meetings and one annual general meeting, with investor participation rates exceeding **56%** [Profit Distribution Plan](index=29&type=section&id=%E4%B8%89%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company proposed a 2024 semi-annual profit distribution plan to pay a cash dividend of **2.70 Yuan per 10 shares** (tax inclusive), totaling an estimated **49.41 million Yuan**, without bonus shares or capital reserve conversions Profit Distribution Plan | Distribution Plan | Details | | :--- | :--- | | Dividend per 10 shares (Yuan, tax inclusive) | 2.70 | | Cash Dividend Amount (Million Yuan, tax inclusive) | 49.41 | | Share Capital Base for Distribution Plan (Shares) | 182,986,021 | | Ratio of Total Cash Dividend to Total Profit Distribution | 100.00% | [Environmental and Social Responsibility](index=30&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) This section outlines the company's commitment to environmental protection and social responsibility initiatives [Environmental Protection Status](index=30&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E7%8E%AF%E4%BF%9D%E9%97%AE%E9%A2%98%E6%83%85%E5%86%B5) The company and its subsidiaries are not designated as key polluting entities and received no environmental administrative penalties during the reporting period, demonstrating a commitment to environmental management as a national "Green Factory" [Social Responsibility](index=30&type=section&id=%E4%BA%8C%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by safeguarding stakeholder interests and engaging in public welfare, including a **500,000 Yuan** donation to support rural revitalization during the reporting period - In May 2024, the company donated **500,000 Yuan** to a paired key assistance county to support East-West collaboration and rural revitalization[78](index=78&type=chunk) [Significant Matters](index=31&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers important events and commitments, including the fulfillment of previous pledges, major contracts, and other significant corporate actions [Fulfillment of Commitments](index=31&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, all commitments made by the company's controlling shareholders, actual controllers, directors, supervisors, and senior management regarding share circulation restrictions, voluntary lock-ups, and share price stability during the initial public offering have been fulfilled [Major Contracts and Their Fulfillment](index=34&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no major trust, contracting, or guarantee agreements during the reporting period, utilizing leased facilities for operations and engaging in entrusted wealth management totaling **795 million Yuan** using both raised and自有 funds Entrusted Wealth Management (Million Yuan) | Type | Source of Funds | Amount Incurred (Million Yuan) | Outstanding Balance (Million Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds/Own Funds | 45.00 | 25.00 | | Brokerage Wealth Management Products | Raised Funds/Own Funds | 505.00 | 280.00 | | Other Categories | Own Funds | 245.00 | 195.00 | | **Total** | | **795.00** | **500.00** | [Other Significant Matters](index=35&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) Controlling shareholder, actual controller, Chairman, and General Manager Mr. Gao Fuzhong plans to increase his shareholding by no less than **10 million Yuan** within six months from June 6, 2024, having already acquired **620,300 shares** by the end of the reporting period - Controlling shareholder Mr. Gao Fuzhong plans to increase his stake by no less than **10 million Yuan**, having purchased **620,300 shares** by the end of the reporting period, representing **0.33%** of the total share capital[95](index=95&type=chunk) [Share Changes and Shareholder Information](index=36&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital and provides an overview of its shareholder structure [Share Changes](index=36&type=section&id=1%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's restricted shares decreased by **16.65 million shares** due to the lifting of initial public offering restrictions, with a corresponding increase in unrestricted shares, while total share capital remained at **184,893,808 shares** - Shareholders Gao Fuzhong and Gao Jian had **17,115,173 restricted shares** released on May 23, 2024[98](index=98&type=chunk) [Shareholder Information](index=38&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **14,726 common shareholders**, with a relatively concentrated equity structure where key controlling shareholders and related parties held significant stakes, and the company's buyback account was among the top ten shareholders Top Five Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Common Shares Held | | :--- | :--- | :--- | | Gao Fuzhong | 31.33% | 57,931,043 | | Lu Junmei | 12.06% | 22,299,900 | | Gao Jian | 6.03% | 11,149,947 | | Gao Bin | 3.02% | 5,574,975 | | Heze Qiaobeishengtai Investment Management Partnership (Limited Partnership) | 2.15% | 3,970,680 | [Changes in Holdings of Directors, Supervisors, and Senior Management](index=40&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, no changes occurred in the shareholdings of directors, supervisors, and senior management, except for Chairman and General Manager Mr. Gao Fuzhong, who increased his holdings by **620,300 shares** as part of his增持 plan - Chairman and General Manager Mr. Gao Fuzhong increased his shareholding by **620,300 shares** during the period, bringing his total holdings to **57,931,043 shares** at period-end[102](index=102&type=chunk) [Preferred Shares Information](index=41&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period [Bonds Information](index=42&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related information during the reporting period [Financial Report](index=43&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited financial statements for the first half of 2024, including balance sheets, income statements, and cash flow statements [Audit Opinion](index=43&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual financial report is unaudited [Financial Statements](index=43&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter 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 2024 [Consolidated Balance Sheet](index=43&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2024, the company's total assets were **1.99 billion Yuan**, total liabilities were **200 million Yuan**, and equity attributable to owners was **1.79 billion Yuan**, resulting in a debt-to-asset ratio of **10.03%** Key Items from Consolidated Balance Sheet (Period-End Balance, Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | **Assets** | | | Total Current Assets | 1,224.93 | | Total Non-current Assets | 768.06 | | **Total Assets** | **1,992.99** | | **Liabilities** | | | Total Current Liabilities | 183.37 | | Total Non-current Liabilities | 16.44 | | **Total Liabilities** | **199.81** | | **Owners' Equity** | | | Total Owners' Equity Attributable to Parent Company | 1,793.18 | | **Total Owners' Equity** | **1,793.18** | [Consolidated Income Statement](index=47&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2024, the company achieved total operating revenue of **812.48 million Yuan**, operating profit of **126.09 million Yuan**, and net profit of **95.19 million Yuan**, representing a **111.71%** year-on-year increase, with basic earnings per share of **0.51 Yuan** Key Items from Consolidated Income Statement (H1 2024, Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Total Operating Revenue | 812.48 | | Total Operating Costs | 704.62 | | Operating Profit | 126.09 | | Total Profit | 125.38 | | Net Profit | 95.19 | | Net Profit Attributable to Parent Company Shareholders | 95.19 | | Basic Earnings Per Share | 0.51 | [Consolidated Cash Flow Statement](index=51&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2024, net cash flow from operating activities was **3.90 million Yuan**, a significant decrease, while net cash outflows from investing and financing activities were **44.79 million Yuan** and **74.88 million Yuan**, respectively, leading to a net decrease in cash and cash equivalents of **112.16 million Yuan** Key Items from Consolidated Cash Flow Statement (H1 2024, Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 3.90 | | Net Cash Flow from Investing Activities | -44.79 | | Net Cash Flow from Financing Activities | -74.88 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 3.61 | | **Net Increase/Decrease in Cash and Cash Equivalents** | **-112.16** | [Notes to Consolidated Financial Statements](index=78&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This chapter provides detailed explanations of key items in the consolidated financial statements, highlighting the company's high revenue dependence on pet hygiene products (**93.93%**) and overseas markets (**93.39%**), along with significant accounts receivable concentration [Accounts Receivable](index=80&type=section&id=5%E3%80%81%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) As of the end of the reporting period, the book value of accounts receivable was **342 million Yuan**, with **91.57%** from overseas customers, and the top five customers accounted for **56.43%** of the total, indicating high customer concentration - The total accounts receivable from the top five customers by period-end balance amounted to **193 million Yuan**, representing **56.43%** of the total accounts receivable balance at period-end[212](index=212&type=chunk) [Operating Revenue and Operating Cost](index=94&type=section&id=35%E3%80%81%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E5%92%8C%E8%90%A5%E4%B8%9A%E6%88%90%E6%9C%AC) In H1 2024, principal business revenue was **811 million Yuan**, with pet disposable hygiene products contributing **763 million Yuan** (**93.93%** of total revenue) and overseas sales accounting for **759 million Yuan** (**93.39%** of total revenue) Operating Revenue Breakdown (H1 2024, Million Yuan) | Contract Classification | Operating Revenue (Million Yuan) | Operating Cost (Million Yuan) | | :--- | :--- | :--- | | **By Business Type** | | | | Disposable Pet Hygiene Products | 763.19 | 610.46 | | Disposable Personal Hygiene Products | 10.41 | 7.62 | | Non-woven Fabric | 37.57 | 39.43 | | **By Market or Customer Type** | | | | Domestic | 53.70 | 52.83 | | Overseas | 758.79 | 606.25 | | **Total** | **812.48** | **659.08** | [Supplementary Information](index=116&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This chapter provides details on non-recurring gains and losses, which totaled **12.88 million Yuan**, and calculates key profitability metrics, including a weighted average return on net assets of **5.23%** and basic earnings per share of **0.51 Yuan** Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic EPS (Yuan/share) | Diluted EPS (Yuan/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 5.23% | 0.51 | 0.51 | | Net Profit Attributable to Common Shareholders of the Company (Excluding Non-recurring Gains/Losses) | 4.53% | 0.45 | 0.45 |