Core Viewpoint - Huati Co., Ltd. reported a decline in both revenue and net profit for the first half of 2025, indicating potential challenges in the company's financial performance [1] Financial Performance - The company achieved operating revenue of 2.7998 billion yuan, a year-on-year decrease of 9.71% [1] - The net profit attributable to shareholders of the listed company was 272 million yuan, down 9.19% year-on-year [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 266 million yuan, reflecting an 8.92% year-on-year decline [1] - Basic earnings per share stood at 0.3273 yuan [1]

Group 1 - The core point of the article is that Vatti Corporation (SZ 002035) held its third board meeting of the ninth session on August 28, 2025, to review the 2025 semi-annual report and summary [1] - For the first half of 2025, Vatti's revenue composition shows that the electrical machinery and equipment manufacturing industry accounted for 98.33% of total revenue, while other businesses contributed 1.67% [1]

| | | 往来方与上市 | 上市公司核算 | 2025年期初 | 2025年半年度占 | 2025年半年度 | 2025年半年度 | 2025年6月30 | 往来形成原 | 往来性质 （经营性往来、 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 其他关联资金往来 | 资金往来方名称 | 公司的关联关 | 的会计科目 | 占用资金余 | 用累计发生金额 | 占用资金的利 | 偿还累计发生 | 日占用资金余 | 因 | 非经营性 | | | | 系 | | 额 | （不含利息） | 息（如有） | 金额 | 额 | | 往来） | | 控股股东、实际控制 | | | | | | | | | | | | 人及其附属企业 | | | | | | | | | | | | | 唯度家科技服务（广 | 全资子公司 | 其他应收款 | 208,321,305. | 47,815,967.17 | | 19,663,174.12236,474,098.40 | | 代垫款项 | 非经营性往来 | | | 东）有限公司 | | | ...

| 编制单位：华帝股份有限公司 | | | 单位：元 币种：人民币 | | --- | --- | --- | --- | | 资 产 | 附注 | 2025年6月30日 | 2024年12月31日 | | 流动资产： | | | | | 货币资金 | 五（一） | 1,213,259,775.83 | 1,671,497,402.51 | | 交易性金融资产 | 五（二） | 1,553,923,080.00 | 1,384,175,980.90 | | 衍生金融资产 | | | | | 应收票据 | 五（三） | 152,901,912.09 | 504,556,667.04 | | 应收账款 | 五（四） | 835,148,938.42 | 683,882,620.64 | | 应收款项融资 | | | | | 预付款项 | 五（五） | 46,682,716.99 | 44,630,341.24 | | 其他应收款 | 五（六） | 24,950,076.57 | 28,238,536.49 | | 其中：应收利息 | | | | | 应收股利 | | | | | 存 货 | 五（七） | 695, ...

《2025 年半年度报告》于2025年8月30日刊登在巨潮资讯网（http://www.cninfo.com.cn)。 证券代码：002035 证券简称：华帝股份 公告编号：2025-027 华帝股份有限公司 第九届董事会第三次会议决议公告 本公司及董事会全体成员保证信息披露内容的真实、准确、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 华帝股份有限公司（以下简称"公司"）第九届董事会第三次会议通知于 2025 年 8 月 19 日以书面及电子邮件形式发出，会议于 2025 年 8 月 28 日上午 10:00 在广东省中山市小榄镇 工业大道南华园路 1 号公司办公楼四楼会议室以现场表决的方式召开。会议应出席董事 7 名， 实际出席董事 7 名。会议由公司董事长潘叶江先生主持，参加会议的董事符合法定人数，会 议的召集、召开及表决程序符合《公司法》和《公司章程》的有关规定。 二、董事会会议审议情况 1、以 7 票同意、0 票反对、0 票弃权，审议通过了《2025 年半年度报告及报告摘要》。 公司董事、高级管理人员出具了关于公司 2025 年半年度报告的书面确认意见，作为公司 的董事、高级 ...

Important Notice, Table of Contents and Definitions [Important Notice](index=2&type=section&id=重要提示) The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility; the company's head and accounting officer declare the financial report is true, accurate, and complete, with no plans for semi-annual cash dividends, bonus shares, or capital increase from capital reserves - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the report, assuming legal responsibility[4](index=4&type=chunk) - The company's head, Pan Yejiang, the accounting supervisor, Pan Yejiang, and the head of the accounting department, He Shuxian, declare the financial report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=目录) This section outlines the report's overall structure, encompassing nine main chapters such as important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related matters, financial reports, and other submitted data [Reference Documents](index=4&type=section&id=备查文件目录) Reference documents include financial statements signed and sealed by the company's head, accounting supervisor, and head of the accounting department, along with originals of all publicly disclosed company documents and announcements during the reporting period - Reference documents include financial statements bearing the signatures and seals of the company's head, accounting supervisor, and head of the accounting department[9](index=9&type=chunk) - Reference documents also include the originals of all company documents and announcements publicly disclosed during the reporting period[10](index=10&type=chunk) [Definitions](index=5&type=section&id=释义) This section provides definitions for common terms used in the report, including company names, major subsidiaries, business terminology, and the reporting period, to ensure clear understanding of the content Key Definitions | Term | Definition | | :--- | :--- | | Company, Vatti, Vatti Stock, Parent Company | Vatti Co., Ltd | | Fenjin Investment | Shihezi Fenjin Equity Investment General Partnership, the company's controlling shareholder | | Best, Best Kitchen & Bath | Zhongshan Best Kitchen & Bath Co., Ltd., the company's wholly-owned subsidiary | | Vatti Home | Zhongshan Vatti Smart Home Co., Ltd | | LKA | Local Key Account, primarily referring to local comprehensive shopping malls in the industry | | KA | Key Account, primarily referring to large chain home appliance stores, large supermarkets, etc. in the industry | | Reporting Period, This Reporting Period, Current Period | January 1, 2025 to June 30, 2025 | | Previous Year/Same Period Last Year | January 1, 2024 to June 30, 2024 | Company Profile and Key Financial Indicators [I. Company Profile](index=6&type=section&id=一、公司简介) Vatti Co., Ltd. (stock abbreviation: Vatti Stock, stock code: 002035) is listed on the Shenzhen Stock Exchange, with Pan Yejiang as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Vatti Stock | | Stock Code | 002035 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Vatti Co., Ltd | | Legal Representative | Pan Yejiang | [II. Contact Persons and Contact Information](index=6&type=section&id=二、联系人和联系方式) The company disclosed contact information for Board Secretary Pan Chuxin and Securities Affairs Representative Luo Sha, including address, phone, fax, and email Contact Persons and Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Pan Chuxin | No. 1 Huayuan Road South, Industrial Avenue, Xiaolan Town, Zhongshan City, Guangdong Province | 0760-22839992 | 0760-22839256 | pancx@vatti.com.cn | | Securities Affairs Representative | Luo Sha | No. 1 Huayuan Road South, Industrial Avenue, Xiaolan Town, Zhongshan City, Guangdong Province | 0760-22244225 | 0760-22839256 | luos@vatti.com.cn | [III. Other Information](index=6&type=section&id=三、其他情况) During the reporting period, there were no changes in the company's contact information, information disclosure and placement locations, or other relevant data, with specific details available in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period[16](index=16&type=chunk) - Information disclosure and placement locations remained unchanged during the reporting period[17](index=17&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=6&type=section&id=四、主要会计数据和财务指标) In the current reporting period, the company's operating revenue and net profit attributable to shareholders both decreased, and net cash flow from operating activities significantly reduced, while total assets and net assets attributable to shareholders remained relatively stable Key Accounting Data and Financial Indicators (Current Period vs. Same Period Last Year) | Indicator | Current Period (RMB) | Same Period Last Year (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,799,808,797.03 | 3,100,864,172.86 | -9.71% | | Net Profit Attributable to Shareholders of Listed Company | 272,043,072.08 | 299,587,271.15 | -9.19% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 266,012,311.58 | 292,052,553.69 | -8.92% | | Net Cash Flow from Operating Activities | 174,711,867.82 | 226,500,144.28 | -22.86% | | Basic Earnings Per Share (RMB/share) | 0.3273 | 0.3593 | -8.91% | | Diluted Earnings Per Share (RMB/share) | 0.3273 | 0.3593 | -8.91% | | Weighted Average Return on Net Assets | 7.02% | 7.98% | -0.96% | | **Period-End Indicators** | **End of Current Period (RMB)** | **End of Previous Year (RMB)** | **Change from End of Previous Year** | | Total Assets | 6,829,284,505.11 | 7,298,082,229.49 | -6.42% | | Net Assets Attributable to Shareholders of Listed Company | 3,802,189,340.17 | 3,779,465,388.89 | 0.60% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=五、境内外会计准则下会计数据差异) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[20](index=20&type=chunk) - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[21](index=21&type=chunk) [VI. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=六、非经常性损益项目及金额) Total non-recurring gains and losses for the current reporting period amounted to RMB 6,030,760.50, primarily from government subsidies and other non-operating income, also including non-current asset disposal gains/losses and fair value change gains/losses Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets (including reversal of impairment provisions) | -1,280,773.84 | | | Government Subsidies Recognized in Current Profit/Loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed by fixed standards, and with continuous impact on company profit/loss) | 6,573,665.10 | | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-Financial Enterprises, and from Disposal of Financial Assets and Liabilities (excluding effective hedge accounting related to normal business operations) | -151,048.00 | | | Other Non-Operating Income and Expenses Apart from the Above | 1,140,057.19 | | | Less: Income Tax Impact | 253,235.24 | | | Minority Interest Impact (After Tax) | -2,095.29 | | | Total | 6,030,760.50 | | - The company has no other profit/loss items that meet the definition of non-recurring gains/losses, nor does it classify non-recurring gains/losses as recurring gains/losses[23](index=23&type=chunk)[24](index=24&type=chunk) Management Discussion and Analysis [I. Main Business Activities During the Reporting Period](index=9&type=section&id=一、报告期内公司从事的主要业务) The company primarily engages in R&D, production, and sales of kitchen appliances and home customization products, covering both traditional and emerging categories; in H1 2025, the kitchen appliance industry saw slower growth due to real estate and consumer confidence, with integrated stoves underperforming, while high-end and essential categories remained stable, as the company strengthened its market position through multi-brand strategy, continuous R&D, diversified marketing, and digital supply chain transformation, actively expanding local lifestyle services and overseas markets [(I) Main Business and Products](index=9&type=section&id=（一）主要业务及产品) The company specializes in R&D, production, and sales of kitchen appliances, offering traditional products like range hoods, cooktops, and water heaters, alongside emerging categories such as integrated cooking centers, integrated stoves, dishwashers, and steam-oven combos, also expanding into home customization products like cabinets, wardrobes, and bathroom vanities, with several new health-tech and aesthetically pleasing products launched in the first half - The company primarily engages in R&D, production, and sales of kitchen appliances, with a product line covering traditional kitchen appliances such as range hoods, cooktops, and water heaters, as well as emerging categories like integrated cooking centers, integrated stoves, dishwashers, and steam-oven combos[26](index=26&type=chunk) - The company also covers home customization products such as cabinets, wardrobes, and bathroom vanities[26](index=26&type=chunk) - In the first half of 2025, the company launched new products including Vatti Beauty Bath TC5i/GW6i, Vatti Full Premix Wall-hung Boiler Super New Product QH1i, Vatti Steam-Oven Combo FA50P, and Vatti Dishwasher JWB18-B7S[26](index=26&type=chunk) [(II) Industry Development and Company Position](index=9&type=section&id=（二）行业发展情况及公司地位) In H1 2025, China's kitchen appliance market grew by 3.9%, lagging the broader home appliance sector, as macroeconomic stability was offset by reduced "trade-in" policy impact and ongoing real estate adjustments, pressuring the market; consumer confidence moderately recovered, favoring essential items, while integrated stove sales dropped by 27.6% amid intensified price competition in range hoods and cooktops, yet high-end kitchen appliances performed strongly with accelerated intelligent transformation, and the company, as a leading player, holds 4,690 national patents and leads multiple national standards, earning numerous brand and product innovation accolades - In the first half of 2025, China's kitchen appliance market's overall retail sales increased by **3.9%** year-on-year, lower than the average **9.2%** growth of the broader home appliance market[27](index=27&type=chunk) - The compensatory pull effect of the "trade-in" policy decreased, new housing starts in the real estate market fell by **20.0%** year-on-year, and completed housing areas decreased by **14.8%** year-on-year, posing severe challenges to the kitchen appliance market[28](index=28&type=chunk)[29](index=29&type=chunk) - The integrated stove market faced a severe downturn, with cumulative retail sales and retail volume in the first half of 2025 decreasing by **27.6%** and **24.1%** year-on-year, respectively[32](index=32&type=chunk) - The high-end kitchen appliance market performed remarkably, with range hoods priced above RMB 3,500 seeing a **2.3%** increase in sales share during the 618 shopping festival, and gas cooktops priced above RMB 2,000 growing by **2.4%**[34](index=34&type=chunk) - As of the end of June 2025, the company held **4,690** national-level patent technologies, including **835** invention patents, ranking among the industry leaders[38](index=38&type=chunk) [(III) Business Model](index=11&type=section&id=（三）经营模式) The company operates three independent brands—"Vatti," "Best," and "Vatti Home"—each targeting different markets, maintains independent R&D, employs "production-based procurement" and "sales-based production" models, diversifies sales channels through online-offline integration, and continuously enhances its service network - The company owns three independent brands: "Vatti" (high-end market), "Best" (tier 3-4 cities and overseas markets), and "Vatti Home" (smart home)[40](index=40&type=chunk)[41](index=41&type=chunk) - The R&D model adheres to independent research and development, adopting an innovative "develop one generation, reserve one generation, explore one generation" development model[42](index=42&type=chunk) - The procurement model combines "procurement based on production" with appropriate inventory, and the production model is "production based on sales"[43](index=43&type=chunk)[44](index=44&type=chunk) - The sales model establishes a multi-channel integrated system, including offline agency, online direct sales and distribution, and independent and agency operations for engineering channels[45](index=45&type=chunk) [(IV) Key Performance Drivers](index=12&type=section&id=（四）主要业绩驱动因素) The company's performance is primarily driven by its premiumization strategy, enhanced marketing, continuous product innovation, and digital transformation, with new products like beauty bath water heaters reinforcing the "New Chinese Fashion Healthy Living" concept and boosting brand differentiation, while diversified marketing, new retail channel expansion, and AI application exploration collectively contribute to business growth - The premiumization strategy continues to gain momentum, with the launch of new products such as "water-nourishing skin" beauty bath water heaters, built-in steam/micro-steam-oven combos, and personalized full premix condensing wall-hung boilers, establishing a differentiated competitive advantage[47](index=47&type=chunk)[48](index=48&type=chunk) - Marketing capabilities continue to advance, with nearly **2,000** joint promotions across thousands of stores nationwide, new retail creating study tour IPs, and the online Max series new products achieving significant sales upon launch[49](index=49&type=chunk) - Product innovation continues, with new-form range hoods fully deployed, water heaters breaking through in the high-end price segment above **RMB 4,000**, and key dishwasher technologies fully covering main products[50](index=50&type=chunk) - Intelligent transformation and digital transformation are progressing steadily, achieving phased results in building intelligent product and scenario ecosystems, digitizing marketing and service systems, and optimizing financial supply chains, while actively exploring AI applications[51](index=51&type=chunk) [(V) Overview of Operations](index=13&type=section&id=（五）经营情况概述) During the reporting period, the company focused on "enhancing profitability, gaining market share, and strengthening operational efficiency," achieving significant product innovation, strong performance in the high-end market, new retail channel expansion, improved user service quality, and phased digital transformation results; however, influenced by the real estate market and intense industry competition, operating revenue decreased by **9.71%** to **RMB 2.80 billion**, and net profit attributable to the parent company decreased by **9.19%** to **RMB 272 million**, as the company deepened brand positioning, expanded channel ecosystems, enhanced product innovation, optimized supply chain and user services, and maintained its multi-brand strategy, with Vatti Home achieving double-digit growth in both revenue and profit - During the reporting period, the company achieved operating revenue of **RMB 2.80 billion**, a year-on-year decrease of **9.71%**; net profit attributable to the parent company was **RMB 272 million**, a year-on-year decrease of **9.19%**[53](index=53&type=chunk) - Deepened the "Fashion Science Kitchen Appliance" positioning, integrating the "New Chinese Fashion Healthy Living" concept, and enhanced brand awareness and user stickiness through new product launches, celebrity live streams, and other activities[54](index=54&type=chunk) - Offline channel operating revenue was **RMB 1.486 billion**, a year-on-year decrease of **6.25%**, with a gross profit margin of **45.89%**, a year-on-year increase of **6.83%**; strategic cooperation was established with Meituan and Amap to strengthen local lifestyle services[55](index=55&type=chunk) - Online channels deepened their layout, focusing on content e-commerce platforms like Douyin, with the Max series new products becoming instant bestsellers upon launch, and high-end range hood and cooktop segments achieving double growth in sales and structural proportion[56](index=56&type=chunk) - Vatti Home achieved operating revenue of **RMB 92.7678 million**, a year-on-year increase of **29.74%**, realizing double growth in both revenue and profit[70](index=70&type=chunk) - As of the end of June, the company added **472** new patents in 2025, bringing the cumulative number of patents to **4,690**[61](index=61&type=chunk) [II. Analysis of Core Competencies](index=18&type=section&id=二、核心竞争力分析) The company's core competencies remain unchanged, primarily reflected in its multi-brand strategy, continuous R&D investment, multi-channel integrated system, comprehensive product structure, and pragmatic and rigorous management model; through its "Vatti," "Best," and "Vatti Home" brands, the company meets diverse market demands, leads the industry with innovative technologies (e.g., concentrated combustion technology, beauty bath water heaters), builds an integrated online-offline marketing network, forming a broad product system and efficient organizational management - The company adheres to a multi-brand strategy, satisfying diverse market demands through its three major brands—"Vatti," "Best," and "Vatti Home"—thereby enhancing overall brand influence[72](index=72&type=chunk) - Increased R&D investment led to the launch of new-generation concentrated combustion technology cooktops (maximum firepower **5.2kW**, **54%** reduction in CO emissions) and "Beauty Bath" gas water heaters (**29.89%** increase in facial moisture content), pioneering a new "water-nourishing skin" segment[73](index=73&type=chunk) - Established a multi-channel integrated system, comprehensively covering online and offline markets, including agency, new retail, direct e-commerce, and engineering channels, while utilizing emerging marketing channels to improve traffic conversion rates[74](index=74&type=chunk) - Improved the product structure system, forming a broad market coverage centered on kitchen appliances, extending to emerging integrated kitchen appliances, whole-house customization, water purifiers, and wall-hung boilers[75](index=75&type=chunk) [III. Analysis of Main Business](index=19&type=section&id=三、主营业务分析) In the current reporting period, the company's main business revenue decreased by **9.71%** year-on-year, but operating costs fell by **14.06%**, leading to an improved gross profit margin; financial expenses increased due to reduced interest income and exchange rate gains, while net cash outflow from investing activities significantly increased, primarily due to project payments and changes in wealth management principal; by product, range hood and water heater revenues declined, while cooktop, steam-oven combo, and water purifier revenues saw slight growth, and both domestic and overseas market revenues decreased, yet their gross profit margins improved Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Same Period Last Year (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,799,808,797.03 | 3,100,864,172.86 | -9.71% | | | Operating Cost | 1,580,889,647.15 | 1,839,470,157.70 | -14.06% | | | Selling Expenses | 702,746,730.30 | 726,043,932.64 | -3.21% | | | Administrative Expenses | 129,689,415.12 | 126,053,100.61 | 2.88% | | | Financial Expenses | -4,659,573.68 | -11,178,488.25 | 58.32% | Primarily due to decreased interest income and impact of exchange gains in the current period | | R&D Investment | 115,762,524.60 | 126,737,440.48 | -8.66% | | | Net Cash Flow from Operating Activities | 174,711,867.82 | 226,500,144.28 | -22.86% | | | Net Cash Flow from Investing Activities | -320,116,252.12 | -136,439,984.03 | -134.62% | Primarily due to increased project payments and changes in wealth management principal compared to the same period last year | | Net Cash Flow from Financing Activities | -240,930,497.58 | -336,927,462.77 | 28.49% | Primarily due to equity repurchase payments in the same period last year | | Net Increase in Cash and Cash Equivalents | -383,582,594.34 | -242,050,608.14 | -58.47% | Primarily due to increased investing activities in the current period compared to the same period last year | Operating Revenue Composition (by Product and Region) | Category | Item | Current Period Amount (RMB) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **By Product** | | | | | | | Range Hoods | 1,169,249,574.96 | 41.76% | -9.97% | | | Cooktops | 733,778,103.83 | 26.21% | 2.00% | | | Water Heaters | 519,620,554.56 | 18.56% | -20.74% | | | Disinfection Cabinets | 33,574,931.98 | 1.20% | -38.59% | | | Dishwashers | 28,632,504.40 | 1.02% | -0.14% | | | Steam-Oven Combos | 35,195,998.38 | 1.26% | 2.69% | | | Integrated Stoves | 23,100,857.97 | 0.83% | -45.00% | | **By Region** | | | | | | | Domestic | 2,405,982,917.49 | 85.93% | -10.07% | | | Overseas | 347,114,681.51 | 12.40% | -8.40% | Industry, Product, or Region Accounting for Over 10% of Company's Operating Revenue or Operating Profit | Category | Item | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | | | Electrical Machinery and Equipment Manufacturing | 2,753,097,599.00 | 1,538,997,707.16 | 44.10% | -9.86% | -14.45% | 3.00% | | **By Product** | | | | | | | | | | Range Hoods | 1,169,249,574.96 | 603,203,915.34 | 48.41% | -9.97% | -15.47% | 3.36% | | | Cooktops | 733,778,103.83 | 376,228,764.31 | 48.73% | 2.00% | -4.68% | 3.60% | | | Water Heaters | 519,620,554.56 | 343,035,614.78 | 33.98% | -20.74% | -22.17% | 1.21% | | **By Region** | | | | | | | | | | Domestic | 2,405,982,917.49 | 1,300,949,214.39 | 45.93% | -10.07% | -15.30% | 3.34% | | | Overseas | 347,114,681.51 | 238,048,492.77 | 31.42% | -8.40% | -9.53% | 0.86% | [IV. Analysis of Non-Core Business](index=21&type=section&id=四、非主营业务分析) The company's non-core business primarily includes investment income, fair value change gains/losses, asset impairment, non-operating income, and expenses; investment income mainly derives from wealth management products and is sustainable, while asset impairment is mainly due to inventory depreciation provisions Non-Core Business Items and Amounts | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 14,084,599.35 | 4.53% | Primarily from wealth management product income | Yes | | Gains/Losses from Fair Value Changes | -151,048.00 | -0.05% | Primarily due to changes in market value of investment projects | Yes | | Asset Impairment | -7,677,530.22 | -2.47% | Primarily due to provision for inventory depreciation | Yes | | Non-Operating Income | 1,943,314.65 | 0.63% | Primarily income unrelated to daily operating activities | Yes | | Non-Operating Expenses | 2,064,908.81 | 0.66% | Primarily expenses unrelated to daily operating activities, such as disposal of fixed assets and donations | Yes | [V. Analysis of Assets and Liabilities](index=21&type=section&id=五、资产及负债状况分析) At the end of the reporting period, the company's total assets decreased by **6.42%** year-on-year; current and non-current assets such as monetary funds, notes receivable, and construction in progress decreased, while accounts receivable, fixed assets, contract liabilities, and long-term borrowings increased; the company has no major overseas assets, and the fair value of financial assets measured at fair value was **RMB 1,618,258,776.42** at period-end, with some monetary funds, notes receivable, and accounts receivable being restricted Significant Changes in Asset Composition (Period-End vs. Previous Year-End) | Item | Amount at End of Current Period (RMB) | Proportion of Total Assets | Amount at Previous Year-End (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,213,259,775.83 | 17.77% | 1,671,497,402.51 | 22.90% | -5.13% | | Accounts Receivable | 835,148,938.42 | 12.23% | 683,882,620.64 | 9.37% | 2.86% | | Inventories | 695,408,406.96 | 10.18% | 698,777,540.35 | 9.57% | 0.61% | | Fixed Assets | 1,429,348,478.24 | 20.93% | 1,271,353,816.55 | 17.42% | 3.51% | | Construction in Progress | 99,367,451.17 | 1.46% | 215,357,046.13 | 2.95% | -1.49% | | Contract Liabilities | 251,057,199.68 | 3.68% | 216,118,143.96 | 2.96% | 0.72% | | Long-Term Borrowings | 33,999,973.62 | 0.50% | 24,309,773.62 | 0.33% | 0.17% | Assets and Liabilities Measured at Fair Value (Period-End) | Item | Period-End Amount (RMB) | | :--- | :--- | | Financial Assets Held for Trading | 1,553,923,080.00 | | Investments in Other Equity Instruments | 6,160,114.29 | | Other Non-Current Financial Assets | 58,175,582.13 | | **Subtotal of Financial Assets** | **1,618,258,776.42** | Asset Restrictions as of the End of the Reporting Period | Item | Book Value at Period-End (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 255,328,170.51 | Bank acceptance bill deposits, letter of guarantee deposits | | Notes Receivable | 39,624,261.78 | Pledged bank acceptance bills | | Accounts Receivable | 7,875,286.03 | Factoring of accounts receivable not derecognized | | **Total** | **302,827,718.32** | | [VI. Analysis of Investment Status](index=23&type=section&id=六、投资状况分析) During the reporting period, the company's investment increased by **73.07%** year-on-year; major non-equity investment projects, including smart park civil works and equipment (Phase I and II), had cumulative investments of **RMB 257,789,712.04** and **RMB 11,977,155.99** respectively, with progress at **61.09%** and **2.28%**, both in the fixed asset deployment phase and not yet generating returns; the company had no significant equity, securities, or derivative investments during the reporting period - Investment during the reporting period was **RMB 163,882,305.85**, a year-on-year increase of **73.07%**[87](index=87&type=chunk) Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Is it Fixed Asset Investment | Amount Invested in Current Period (RMB) | Cumulative Actual Investment as of End of Reporting Period (RMB) | Project Progress | Expected Return | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Park Civil Works and Equipment (Phase I) | Self-built | Yes | 58,522,072.38 | 257,789,712.04 | 61.09% | In fixed asset deployment phase, not yet in production | | Smart Park Civil Works and Equipment (Phase II) | Self-built | Yes | 11,977,155.99 | 11,977,155.99 | 2.28% | In fixed asset deployment phase, not yet in production | - The company had no securities investments or derivative investments during the reporting period[90](index=90&type=chunk)[92](index=92&type=chunk) [VII. Major Asset and Equity Sales](index=24&type=section&id=七、重大资产和股权出售) The company did not sell any major assets or equity during the reporting period - The company did not sell any major assets during the reporting period[94](index=94&type=chunk) - The company did not sell any major equity during the reporting period[95](index=95&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=24&type=section&id=八、主要控股参股公司分析) The company's main subsidiary, Zhongshan Best Kitchen & Bath Co., Ltd., achieved operating revenue of **RMB 717,358,290.81** and net profit of **RMB 47,279,228.95** during the reporting period; the company established **16** new subsidiaries, primarily kitchen and bath sales companies, which had no significant impact on overall production, operations, or performance Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Best Kitchen & Bath | Subsidiary | R&D, production, and sales of kitchen and bath appliance products | 80,000,000 | 1,550,180,422.31 | 989,087,567.46 | 717,358,290.81 | 55,779,155.23 | 47,279,228.95 | - During the reporting period, the company established **16** new subsidiaries, including Haikou Zhongying Zhixiang Kitchen & Bath Co., Ltd., Kunming Huahao Zhiheng Kitchen & Bath Co., Ltd., etc., which had no significant impact on overall production, operations, or performance[96](index=96&type=chunk) [IX. Structured Entities Controlled by the Company](index=24&type=section&id=九、公司控制的结构化主体情况) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[97](index=97&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=25&type=section&id=十、公司面临的风险和应对措施) The company faces risks including macroeconomic conditions, material price fluctuations, market competition, exchange rate changes, and loss of key talent; to address these challenges, the company will adjust business strategies, optimize marketing and channels, strengthen cost control, utilize financial instruments to mitigate exchange rate risk, and improve talent development and incentive mechanisms - Macroeconomic risks: The kitchen appliance industry is affected by economic conditions and the real estate market's prosperity; the company will promptly adjust its business strategies, optimize marketing and channels, and improve product quality and product mix[98](index=98&type=chunk) - Material price fluctuation risks: Price fluctuations of major raw materials (stainless steel, glass, aluminum, copper, etc.) affect profitability; the company will strengthen procurement cost control, optimize the supply chain, and improve production efficiency[99](index=99&type=chunk) - Market competition risks: Industry competition is intensifying; the company will adhere to technological innovation, improve channel layout, formulate differentiated marketing strategies, and deepen brand recognition[100](index=100&type=chunk) - Exchange rate fluctuation risks: Overseas business expansion leads to exchange rate fluctuations affecting financial costs; the company will mitigate risks through measures such as forward foreign exchange settlements and foreign exchange options[101](index=101&type=chunk) - Core talent loss risks: The company will improve its talent development mechanism, establish a scientific human resource management system, employee training and incentive programs, and strengthen corporate culture construction[102](index=102&type=chunk) [XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=25&type=section&id=十一、市值管理制度和估值提升计划的制定落实情况) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period[103](index=103&type=chunk) - The company did not disclose a valuation enhancement plan during the reporting period[104](index=104&type=chunk) [XII. Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=26&type=section&id=十二、"质量回报双提升"行动方案贯彻落实情况) The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period - The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period[104](index=104&type=chunk) Corporate Governance, Environment and Society [I. Changes in Directors, Supervisors, and Senior Management](index=27&type=section&id=一、公司董事、监事、高级管理人员变动情况) During the reporting period, the company's board of directors and supervisory board underwent re-election, with Pan Yezhao, Zhao Shuqiang, Mai Qiang, and Ding Beichen elected as directors or independent directors, while Pan Yuanzhi, Ding Yunlong, Kong Fanmin, Zhou Yi, Liang Pinghua, Chen Huifen, and Mo Zexuan departed due to term expiration - On May 20, 2025, Pan Yezhao was elected as an employee representative director, and Zhao Shuqiang, Mai Qiang, and Ding Beichen were elected as independent directors[110](index=110&type=chunk) - Pan Yuanzhi (Vice Chairman), Ding Yunlong (Independent Director), Kong Fanmin (Independent Director), Zhou Yi (Independent Director), Liang Pinghua (Chairperson of the Supervisory Board), Chen Huifen (Supervisor), and Mo Zexuan (Supervisor) departed due to term expiration[110](index=110&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period](index=27&type=section&id=二、本报告期利润分配及资本公积金转增股本情况) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[107](index=107&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=27&type=section&id=三、公司股权激励计划、员工持股计划或其他员工激励措施的实施情况) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[108](index=108&type=chunk) [IV. Environmental Information Disclosure](index=27&type=section&id=四、环境信息披露情况) Vatti Co., Ltd. and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, and have disclosed environmental information on the Guangdong Provincial Enterprise Environmental Information Disclosure Platform - Vatti Co., Ltd. is included in the list of enterprises required to disclose environmental information by law[109](index=109&type=chunk) - Environmental information disclosure reports can be found on the Guangdong Provincial Enterprise Environmental Information Disclosure Platform[109](index=109&type=chunk) [V. Social Responsibility](index=27&type=section&id=五、社会责任情况) The company integrates ESG principles into its corporate strategy, committing to green factory construction and low-carbon initiatives through technological innovation; it actively participates in poverty alleviation, education support, and medical donations, including a **RMB 500,000** donation during the reporting period for the reconstruction of Jiuzhouji Primary School's comprehensive building, supporting educational development - The company integrates ESG into its corporate strategy, embedding sustainable development throughout the product lifecycle, and is committed to building green factories[110](index=110&type=chunk) - The company actively fulfills its corporate social responsibility, engaging in public welfare through various means such as poverty alleviation, education support, medical donations, and community building[111](index=111&type=chunk) - Earlier this year, the company made a targeted donation of **RMB 500,000** to support the reconstruction of the comprehensive building of Jiuzhouji Primary School in Xiaolan Town[111](index=111&type=chunk) Significant Matters [I. Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period](index=29&type=section&id=一、公司实际控制人、股东、关联方、收购人以及公司等承诺相关方在报告期内履行完毕及截至报告期末超期未履行完毕的承诺事项) The company's board of directors has timely fulfilled its commitments regarding the "Company's Shareholder Return Plan for the Next Three Years (2022-2024)," which stipulates that cash dividends are prioritized when conditions are met, with cash dividends not less than **10%** of the distributable profit for the year, and cumulative cash dividends over any three consecutive years not less than **30%** of the average annual distributable profit for those three years - The company's board of directors has timely fulfilled its commitments regarding the "Company's Shareholder Return Plan for the Next Three Years (2022-2024)"[113](index=113&type=chunk) - The commitment includes prioritizing cash dividends when conditions for cash distribution are met, with the profit distributed in cash not less than **10%** of the distributable profit for the year[113](index=113&type=chunk) - Over any three consecutive years, the company's cumulative cash dividends shall not be less than **30%** of the average annual distributable profit achieved during those three years[113](index=113&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=29&type=section&id=二、控股股东及其他关联方对上市公司的非经营性占用资金情况) During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company - The company had no non-operating funds occupied by the controlling shareholder or other related parties from the listed company during the reporting period[114](index=114&type=chunk) [III. Irregular External Guarantees](index=29&type=section&id=三、违规对外担保情况) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[115](index=115&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=29&type=section&id=四、聘任、解聘会计师事务所情况) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[116](index=116&type=chunk) [V. Board of Directors' and Supervisory Board's Explanations on "Non-Standard Audit Report" for the Current Period](index=30&type=section&id=五、董事会、监事会对会计师事务所本报告期"非标准审计报告"的说明) The company's semi-annual report was not audited, thus there is no explanation from the board of directors or supervisory board regarding a "non-standard audit report" for the current period [VI. Board of Directors' Explanations on "Non-Standard Audit Report" for the Previous Year](index=30&type=section&id=六、董事会对上年度"非标准审计报告"相关情况的说明) The company has no explanations from the board of directors regarding a "non-standard audit report" for the previous year [VII. Bankruptcy and Reorganization Matters](index=30&type=section&id=七、破产重整相关事项) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[117](index=117&type=chunk) [VIII. Litigation Matters](index=30&type=section&id=八、诉讼事项) The company had no significant litigation or arbitration matters during the reporting period; other litigation matters involved a cumulative amount of **RMB 110.044 million**, with some cases not yet heard or concluded, leading to uncertainty regarding their impact on current or future profits - The company had no significant litigation or arbitration matters during the current reporting period[118](index=118&type=chunk) Summary of Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (RMB 10,000) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Summary of Litigation Matters Not Reaching the Disclosure Standard for Significant Litigation in 12 Consecutive Months | 11,004.4 | No | Some not yet heard, some in trial, some in execution, some concluded | Given that some cases have not yet been heard or concluded, their impact on the company's current or future profits is uncertain | [IX. Penalties and Rectification](index=30&type=section&id=九、处罚及整改情况) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[119](index=119&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=30&type=section&id=十、公司及其控股股东、实际控制人的诚信状况) During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller - The company had no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[120](index=120&type=chunk) [XI. Significant Related Party Transactions](index=30&type=section&id=十一、重大关联交易) During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or dealings with affiliated financial companies - The company had no related party transactions related to daily operations during the reporting period[120](index=120&type=chunk) - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[121](index=121&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[123](index=123&type=chunk) [XII. Significant Contracts and Their Performance](index=31&type=section&id=十二、重大合同及其履行情况) During the reporting period, the company had no entrustment, contracting, leasing matters, or significant guarantees; wealth management transactions amounted to **RMB 1.881 billion**, with an outstanding balance of **RMB 1.5539231 billion** at period-end and no overdue unrecovered amounts; the company had no other significant contracts - The company had no entrustment, contracting, or leasing situations during the reporting period[127](index=127&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - The company had no significant guarantees during the reporting period[131](index=131&type=chunk) Wealth Management Status | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (RMB 10,000) | Outstanding Balance (RMB 10,000) | Overdue Unrecovered Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 180,000 | 145,160 | 0 | | Brokerage Wealth Management Products | Own Funds | 8,100 | 10,000 | 0 | | Other Categories | Own Funds | 0 | 232.31 | 0 | | **Total** | | **188,100** | **155,392.31** | **0** | [XIII. Explanation of Other Significant Matters](index=32&type=section&id=十三、其他重大事项的说明) In July 2025, the company completed the industrial and commercial registration procedures for its operating premises and obtained a renewed "Business License" from the Zhongshan Market Supervision Administration, involving the application for multiple business addresses under one license and revision of the "Articles of Association" - In July 2025, the company completed the industrial and commercial registration procedures for its operating premises and obtained a renewed "Business License" from the Zhongshan Market Supervision Administration[134](index=134&type=chunk) - This matter involved applying for multiple business addresses under one license and revising the "Articles of Association"[134](index=134&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=32&type=section&id=十四、公司子公司重大事项) The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[135](index=135&type=chunk) Share Changes and Shareholder Information [I. Share Change Status](index=33&type=section&id=一、股份变动情况) During the reporting period, the company's total share capital remained unchanged, but restricted shares increased by **505,025** shares, with a corresponding decrease in unrestricted shares, primarily due to the normal re-election of the board, where shares held by new directors, senior management, and departing directors, supervisors, and senior management were locked up according to regulations Share Change Status | Share Type | Quantity Before This Change (shares) | Proportion Before This Change | Net Change (＋, －) in This Change (shares) | Quantity After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 67,130,576 | 7.92% | +505,025 | 67,635,601 | 7.98% | | II. Unrestricted Shares | 780,523,042 | 92.08% | -505,025 | 780,018,017 | 92.02% | | III. Total Shares | 847,653,618 | 100.00% | 0 | 847,653,618 | 100.00% | - The main reason for the share change was the company's normal re-election of the board, where shares held by new directors, senior management, and departing directors, supervisors, and senior management were locked up according to regulations[138](index=138&type=chunk) [II. Securities Issuance and Listing](index=34&type=section&id=二、证券发行与上市情况) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[142](index=142&type=chunk) [III. Number of Shareholders and Shareholding Status](index=34&type=section&id=三、公司股东数量及持股情况) At the end of the reporting period, the total number of common shareholders was **37,625**; among the top ten shareholders, Shihezi Fenjin Equity Investment General Partnership held **14.27%**, serving as the controlling shareholder, and Pan Yejiang held **10.25%**; Hong Kong Securities Clearing Company Limited held **7.30%**; the company's dedicated share repurchase account cumulatively repurchased **16,589,882** shares, accounting for **1.96%** of the total share capital - The total number of common shareholders at the end of the reporting period was **37,625**[143](index=143&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shihezi Fenjin Equity Investment General Partnership | Domestic Non-State-Owned Legal Person | 14.27% | 120,960,000 | | 120,960,000 | Pledged 23,550,000 | | Pan Yejiang | Domestic Natural Person | 10.25% | 86,922,235 | 65,191,676 | 21,730,559 | Pledged 13,000,000 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 7.30% | 61,915,325 | | 61,915,325 | N/A | | Bank of China Co., Ltd. - Franklin Templeton Sealand Small-Cap Stock Fund | Other | 2.82% | 23,899,924 | | 23,899,924 | N/A | | Milin County Liandong Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.79% | 23,680,000 | | 23,680,000 | N/A | | Yang Jianhui | Domestic Natural Person | 2.66% | 22,577,737 | | 22,577,737 | N/A | | China Merchants Bank Co., Ltd. - Franklin Templeton Sealand Hengrui Bond Fund | Other | 1.63% | 13,846,138 | | 13,846,138 | N/A | | Pan Quanzhi | Domestic Natural Person | 1.48% | 12,518,316 | | 12,518,316 | N/A | | China Merchants Bank Co., Ltd. - Franklin Templeton Sealand Fundamental Selection Mixed Fund | Other | 1.27% | 10,800,000 | | 10,800,000 | N/A | | Agricultural Bank of China Co., Ltd. - Franklin Templeton Sealand Flexible Market Value Mixed Fund | Other | 1.05% | 8,890,600 | | 8,890,600 | N/A | - The company has cumulatively repurchased **16,589,882** shares through its dedicated share repurchase securities account via centralized bidding transactions, accounting for **1.96%** of the company's current total share capital[144](index=144&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=36&type=section&id=四、董事、监事和高级管理人员持股变动) During the reporting period, the total shareholdings of the company's directors, supervisors, and senior management remained unchanged, but the number of restricted shares held by some departing directors, supervisors, and senior management increased due to lock-up in accordance with regulations Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Number of Shares Held at Beginning of Period (shares) | Number of Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Pan Yejiang | Chairman, President | Current | 86,922,235 | 86,922,235 | | Pan Yuanzhi | Vice Chairman | Departed | 2,016,000 | 2,016,000 | | Qiu Minggui | Vice President | Current | 313,700 | 313,700 | | He Shuxian | CFO | Current | 252,000 | 252,000 | | Mo Zexuan | Supervisor | Departed | 3,500 | 3,500 | | Zhou Yi | Independent Director | Departed | 150 | 150 | | **Total** | | | **89,507,585** | **89,507,585** | [V. Changes in Controlling Shareholder or Actual Controller](index=36&type=section&id=五、控股股东或实际控制人变更情况) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[146](index=146&type=chunk) - The company's actual controller remained unchanged during the reporting period[146](index=146&type=chunk) [VI. Preferred Share Information](index=37&type=section&id=六、优先股相关情况) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[147](index=147&type=chunk) Bond-Related Information [Bond-Related Information](index=38&type=section&id=债券相关情况) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[149](index=149&type=chunk) Financial Report [I. Audit Report](index=39&type=section&id=一、审计报告) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[151](index=151&type=chunk) [II. Financial Statements](index=39&type=section&id=二、财务报表) This section includes Vatti Co., Ltd.'s consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flows at the end of the reporting period Consolidated Balance Sheet (Period-End Balances) | Item | Period-End Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Monetary Funds | 1,213,259,775.83 | 1,671,497,402.51 | | Financial Assets Held for Trading | 1,553,923,080.00 | 1,384,175,980.90 | | Notes Receivable | 152,901,912.09 | 504,556,667.04 | | Accounts Receivable | 835,148,938.42 | 683,882,620.64 | | Inventories | 695,408,406.96 | 698,777,540.35 | | Fixed Assets | 1,429,348,478.24 | 1,271,353,816.55 | | Construction in Progress | 99,367,451.17 | 215,357,046.13 | | **Total Assets** | **6,829,284,505.11** | **7,298,082,229.49** | | Short-Term Borrowings | 50,057,611.00 | 50,058,000.94 | | Notes Payable | 1,077,597,552.94 | 1,485,278,618.64 | | Accounts Payable | 696,751,135.49 | 771,677,085.74 | | Contract Liabilities | 251,057,199.68 | 216,118,143.96 | | **Total Liabilities** | **2,983,088,483.69** | **3,474,111,500.18** | | Total Owners' Equity Attributable to Parent Company | 3,802,189,340.17 | 3,779,465,388.89 | | **Total Owners' Equity** | **3,846,196,021.42** | **3,823,970,729.31** | Consolidated Income Statement (Current Period Amounts) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 2,799,808,797.03 | 3,100,864,172.86 | | Total Operating Cost | 2,541,649,748.94 | 2,824,845,292.34 | | Operating Profit | 310,919,814.87 | 335,795,369.51 | | Total Profit | 310,798,220.71 | 337,182,262.17 | | Net Profit | 271,544,412.91 | 298,564,559.80 | | Net Profit Attributable to Parent Company Shareholders | 272,043,072.08 | 299,587,271.15 | | Basic Earnings Per Share (RMB/share) | 0.3273 | 0.3593 | | Diluted Earnings Per Share (RMB/share) | 0.3273 | 0.3593 | Consolidated Cash Flow Statement (Current Period Amounts) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 174,711,867.82 | 226,500,144.28 | | Net Cash Flow from Investing Activities | -320,116,252.12 | -136,439,984.03 | | Net Cash Flow from Financing Activities | -240,930,497.58 | -336,927,462.77 | | Net Increase in Cash and Cash Equivalents | -383,582,594.34 | -242,050,608.14 | | Cash and Cash Equivalents at Period-End | 957,931,605.32 | 985,746,947.17 | [III. Company Basic Information](index=59&type=section&id=三、公司基本情况) This section details Vatti Co., Ltd.'s registration information, industry nature, business scope, main products, historical evolution, and consolidated financial statement scope; the company primarily engages in kitchen appliance and home customization businesses with a rich product line, established in 2001, and after multiple capital changes, its current total share capital is **RMB 847,653,618.00**; the consolidated scope includes **59** subsidiaries, with **16** new sub-subsidiaries added this period - Company Name: Vatti Co., Ltd., Registered Address: No. 1 Huayuan Road South, Industrial Avenue, Xiaolan Town, Zhongshan City, Guangdong Province, Legal Representative: Pan Yejiang[190](index=190&type=chunk) - The company's industry nature is electrical machinery and equipment manufacturing, primarily engaged in R&D, production, and sales of kitchen appliance products, home customization, and other businesses[190](index=190&type=chunk)[191](index=191&type=chunk) - The company's total share capital is **RMB 847,653,618.00**[207](index=207&type=chunk) - The scope of consolidated financial statements for the current period includes **59** subsidiaries, with **16** new sub-subsidiaries added[210](index=210&type=chunk)[211](index=211&type=chunk) [IV. Basis of Financial Statement Preparation](index=65&type=section&id=四、财务报表的编制基础) The company's financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises issued by the Ministry of Finance of the People's Republic of China, and comply with the disclosure requirements of the China Securities Regulatory Commission's "Reporting Rules for Information Disclosure by Companies Issuing Securities Publicly No. 15 – General Provisions on Financial Reports"; the company possesses the ability to continue as a going concern, with no significant matters affecting this ability - The company's financial statements are prepared on a going concern basis, complying with the requirements of Accounting Standards for Business Enterprises[212](index=212&type=chunk) - The financial statements also comply with the "Reporting Rules for Information Disclosure by Companies Issuing Securities Publicly No. 15 – General Provisions on Financial Reports" revised by the China Securities Regulatory Commission in 2023[212](index=212&type=chunk) - The company possesses the ability to continue as a going concern for at least 12 months from the end of the current reporting period, with no significant matters affecting this ability[213](index=213&type=chunk) [V. Significant Accounting Policies and Estimates](index=65&type=section&id=五、重要会计政策及会计估计) This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering compliance with Accounting Standards for Business Enterprises, accounting period, operating cycle, functional currency, materiality standards, business combinations, consolidated financial statement preparation, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, other receivables, contract assets, inventories, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, preferred shares/perpetual bonds, revenue recognition, contract costs, government grants, deferred income tax, leases, hedge accounting, fair value measurement, related parties, segment reporting, and discontinued operations; there were no significant changes in accounting policies and estimates during the reporting period - The financial statements prepared by the company comply with the requirements of Accounting Standards for Business Enterprises, truthfully and completely reflecting the company's financial position, operating results, and cash flows during the reporting period[215](index=215&type=chunk) - The company adopts the calendar year system, with a 12-month operating cycle, and uses RMB as its functional currency[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) - During the reporting period, the company had no significant changes in accounting policies and estimates[353](index=353&type=chunk) [VI. Taxation](index=100&type=section&id=六、税项) This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge; the company and several subsidiaries enjoy a **15%** preferential corporate income tax rate as high-tech enterprises, while some subsidiaries, qualifying as small low-profit enterprises, pay income tax at a **20%** rate; the company also benefits from VAT immediate refund policies for software products and VAT additional deduction policies for advanced manufacturing enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Balance after deducting deductible input VAT from current output VAT | 6%、9%、13% | | Urban Maintenance and Construction Tax | Calculated and paid based on payable VAT | 5%、7% | | Corporate Income Tax | Calculated and paid based on taxable income | 25%、20%、15% | | Education Surcharge | Calculated and paid based on payable VAT | 3% | | Local Education Surcharge | Calculated and paid based on payable VAT | 2% | - Vatti Co., Ltd., Zhongshan Best Kitchen & Bath Co., Ltd., Zhongshan Vatti Smart Home Co., Ltd., Zhongshan Vatti Electronic Technology Co., Ltd., and Zhongshan Vatti Environmental Technology Co., Ltd. enjoy a **15%** preferential corporate income tax rate as high-tech enterprises[354](index=354&type=chunk)[355](index=355&type=chunk) - Zhongshan Zhengmeng Kitchen & Bath Appliance Co., Ltd., Zhongshan Vatti Integrated Kitchen Co., Ltd., and sub-subsidiary Zhongshan Best E-commerce Co., Ltd. qualify as small low-profit enterprises and pay corporate income tax at a **20%** rate[356](index=356&type=chunk) - The company sells self-developed and produced software products, for which the portion of VAT actual tax burden exceeding **3%** is subject to an immediate refund policy[356](index=356&type=chunk) - From January 1, 2023, to December 31, 2027, the company and some subsidiaries are eligible for an additional **5%** deduction on current deductible input VAT against payable VAT[358](index=358&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=102&type=section&id=七、合并财务报表项目注释) This section provides detailed notes to major items in the consolidated financial statements, including monetary funds, financial assets held for trading, notes receivable, accounts receivable, contract assets, other receivables, prepayments, inventories, other current assets, investments in other equity instruments, long-term equity investments, other non-current financial assets, fixed assets, construction in progress, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, preferred shares/perpetual bonds, revenue recognition, contract costs, government grants, deferred income tax, leases, hedge accounting, fair value measurement, related parties, segment reporting, and discontinued operations, as well as ownership or use-restricted assets, short-term borrowings, notes payable, accounts payable, other payables, contract liabilities, employee benefits payable, taxes payable, non-current liabilities due within one year, other current liabilities, long-term borrowings, lease liabilities, provisions, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, administrative expenses, selling expenses, R&D expenses, financial expenses, other income, fair value change gains, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, and supplementary cash flow information - Period-end monetary funds amounted to **RMB 1,213,259,775.83**, of which **RMB 255,328,170.51** were restricted, primarily for bank acceptance bill deposits and letter of guarantee deposits[360](index=360&type=chunk) - Period-end financial assets held for trading amounted to **RMB 1,553,923,080.00**, primarily including structured deposits, bank wealth management products, and brokerage wealth management products[362](index=362&type=chunk) - Period-end book value of accounts receivable was **RMB 835,148,938.42**, with a bad debt provision ratio of **46.68%**[372](index=372&type=chunk)[373](index=373&type=chunk) - Period-end book value of inventories was **RMB 695,408,406.96**, with an inventory depreciation provision of **RMB 159,807,825.90**[421](index=421&type=chunk) - Period

Market Overview - The kitchen and bathroom appliance sector experienced a decline of 1.16% on August 29, with Mars Man leading the drop [1] - The Shanghai Composite Index closed at 3857.93, up 0.37%, while the Shenzhen Component Index closed at 12696.15, up 0.99% [1] Stock Performance - Key stocks in the kitchen and bathroom appliance sector showed varied performance: - Aopu Technology (603551) closed at 12.46, up 1.30% with a trading volume of 30,400 shares and a turnover of 37.84 million yuan - Boss Electric (002508) closed at 20.35, down 0.20% with a trading volume of 112,500 shares and a turnover of 22.90 million yuan - Mars Man (300894) closed at 13.73, down 3.17% with a trading volume of 107,200 shares and a turnover of 148 million yuan [1] Capital Flow - The kitchen and bathroom appliance sector saw a net outflow of 106 million yuan from main funds, while retail investors contributed a net inflow of 101 million yuan [1] - Detailed capital flow for specific stocks indicates: - Yitian Smart (300911) had a main fund net inflow of 2.89 million yuan, while retail investors contributed 11.08 million yuan - Aopu Technology (603551) experienced a main fund net outflow of 427,500 yuan, with retail investors contributing a net inflow of 1.94 million yuan [2] - Mars Man (300894) faced a main fund net outflow of 13.46 million yuan, while retail investors had a net inflow of 13.78 million yuan [2]

Core Insights - The changing lifestyle of young consumers is significantly impacting the consumer market, with a notable decrease in time spent on household chores, now averaging 1 hour and 59 minutes per day, down by 28 minutes since 2018 [1] - Nearly half of young respondents are willing to pay for automated cleaning appliances like dishwashers and robotic vacuums, indicating a strong demand for convenience in modern living [1] - Vatti, a well-known brand in the kitchen appliance sector, has recognized this trend and is focusing on the "Good Cleaning" segment to enhance user experience through technological innovation [1][3] Company Strategy - Vatti has developed a comprehensive product line in the "Good Cleaning" segment, aiming to translate the concept of a "clean kitchen" into practical user experiences, exemplified by the launch of the Giant Washing Dishwasher B6S [3] - The B6S features several industry-leading patented technologies, achieving a 99.9% cleaning coverage rate and receiving a Level 1 cleaning coverage certification from the China Household Electrical Appliances Research Institute [3] - The B6S also offers excellent storage capabilities, maintaining a high sterilization rate of over 99.9999% and ensuring that tableware remains fresh and clean even after long-term storage [3] Health and Lifestyle Focus - Vatti emphasizes that kitchen cleanliness is not just about removing stains but is crucial for health and emotional well-being, as kitchen cleanliness directly affects overall quality of life [5] - The company has introduced the "Clean Kitchen" concept, which includes easy-to-clean product designs, smart self-cleaning features, and optimized user experiences, contributing to its market success [5][6] - Vatti's investment in technology has led to 4,416 patents, including 543 related to the "Good Cleaning" initiative, showcasing its commitment to innovation in kitchen appliances [6] Future Outlook - Vatti aims to continue innovating in the "Good Cleaning" segment, aligning with the evolving demands of consumers for smarter, more efficient, and healthier living experiences [8] - The company is positioned to lead the industry towards new heights as technology advances and consumer needs evolve [8]

Core Insights - The strong implementation of the trade-in policy has led to a 30.7% year-on-year increase in retail sales of household appliances and audio-visual equipment from January to July this year [1] - Smart home appliances have become a market highlight, with sales of smart stove and range hood sets soaring by 76.7% year-on-year, indicating significant growth potential in the trade-in market [1] Group 1: Market Trends - The trade-in policy has activated consumer demand for high-quality kitchen appliances, focusing on enhancing the cooking experience [3] - The core of kitchen upgrades lies in improving the performance of gas stoves and range hoods, which are essential for convenience, cleanliness, and overall user experience [3] Group 2: Product Innovations - Vatti has launched new products, including the JZT-8S60 gas stove and J6230ZS range hood, which cater to the market's trade-in demand [3][4] - The JZT-8S60 features a removable burner for easy cleaning, while the J6230ZS includes a one-button cleaning function and an AI air management system for real-time air purification [5][6] Group 3: Performance and Design - The JZT-8S60 gas stove is equipped with a stable flame system and precise fire control, suitable for various cooking needs [6] - The J6230ZS range hood boasts a powerful suction capacity of 31m³/min and a design that minimizes noise, enhancing the cooking environment [6] Group 4: Embedded Products - The embedded kitchen appliance segment is gaining momentum, with a projected 5.3% year-on-year growth in retail sales for embedded micro-steaming and baking products by mid-2025 [7] - Vatti's FA50P steam and bake integrated machine addresses common issues with traditional steam ovens, offering improved cooking efficiency and ease of cleaning [7] Group 5: Future Outlook - The ongoing trade-in policy is expected to continue releasing consumer potential in the kitchen appliance market [9] - Vatti's focus on product innovation and user-centered design positions the company to maintain a competitive edge and drive the kitchen appliance industry towards a more user-friendly and meaningful direction [9]

当下厨电市场中的嵌入式蒸烤一体机，在"懒人经济""健康经济"的影响下，其凭借无油烟、温度可控等 优点正走入消费者的厨房。奥维云网推总数据显示，2025年上半年品需厨电品类（含嵌入式微蒸烤）整 体市场零售额规模同比增长6.1%，其中二季度表现强势，零售额同比增长7.5%。分品类看，国补"新 军"洗嵌依然保持稳定增长，嵌入式微蒸烤零售额同比增长5.3%，领先厨卫大盘。 从2014年试水嵌入式蒸烤产品市场，到如今成为健康烹饪领域的重要参与者，作为中国高端厨电领导品 牌的华帝，已经走过了十余年的深耕之路。在这十年间，产品从单一功能向复合功能、从基础烹饪向智 能健康不断升级，每一步迭代都紧扣用户需求与行业趋势。 迈进4.0时代，华帝蒸烤一体机的十年演进 华帝与嵌入式产品的故事，始于2014年。 彼时，嵌入式厨电市场尚处于萌芽阶段，行业主流产品以"单蒸单烤"机型为主，功能相对单一，仅能满 足用户最基础的烹饪需求。华帝正是在这样的市场背景下入局，为后续产品的迭代积累了最初的技术与 市场经验。 随着市场竞争加剧，2017年，行业内入局品牌增多，产品升级迭代加速，华帝顺势推出首款蒸烤一体 机，正式开启嵌入式产品的2.0时代。2 ...