上海宏达新材料股份有限公司 2025 年半年度财务报告 财务报告 一、审计报告 半年度报告是否经过审计 □是 否 公司半年度财务报告未经审计。 | 流动资产合计 | 283,340,076.56 | 336,504,499.51 | | --- | --- | --- | | 非流动资产： | | | | 发放贷款和垫款 | | | | 债权投资 | | | | 其他债权投资 | | | | 长期应收款 | | | | 长期股权投资 | | | | 其他权益工具投资 | | | | 其他非流动金融资产 | | | | 投资性房地产 | | | | 固定资产 | 45,148,737.31 | 48,284,950.31 | | 在建工程 | 4,682,420.26 | 4,633,779.10 | | 生产性生物资产 | | | | 油气资产 | | | | 使用权资产 | 23,861,020.89 | 27,089,717.25 | | 无形资产 | 21,377,377.32 | 21,311,451.98 | | 其中：数据资源 | | | | 开发支出 | | | | 其中：数据资源 | | | ...

单位：万元 | 非经营性资金占用 | 资金占用方名称 | 占用方与上市公司的关联关系 | 上市公司核算的会 | 2024年期初占用资 | 2024年度占用累计 发生金额（不含利 | 2024年度占用资金 | 2024年度偿还累计 | 2024年期末占用资 | 占用形成原因 | 占用性质 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 计科目 | 金余额 | 息） | 的利息（如有） | 发生金额 | 金余额 | | | | 控股股东 、实际控制人及 其附属企业 | | | | | | | | | | 非经营性占用 | | 小计 | - | - | - | | | | | | | - | | 前控股股东 、实际控制人 及其附属企业 | | | | | | | | | | 非经营性占用 | | 小计 | - | - | - | | | | | | | - | | 其他关联方及附属企业 | | | | | | | | | | 非经营性占用 | | 小计 | | | | | | | | | | | | 总计 | ...

表决结果：同意 3 票，反对 0 票，弃权 0 票。议案通过。 详见公司披露于巨潮资讯网（www.cninfo.com.cn）上的《2025 年半年度报告》 （公告编号：2025-037）以及披露于《证券时报》、巨潮资讯网（www.cninfo.com.c n）《2025 年半年度报告摘要》（公告编号：2025-036）。 上海宏达新材料股份有限公司监事会 第七届监事会第五次会议决议的公告 本公司及监事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 根据2025年8月23日发出的会议通知，上海宏达新材料股份有限公司（以下简称"公 司"）第七届监事会第五次会议于2025年8月28日在公司会议室以现场和通讯相结合方 式召开。会议应到监事3名，实到监事3名，会议由监事会主席邱云锋先生主持。会议 的召集、召开及表决程序符合《公司法》和《公司章程》的规定，形成的决议合法有 效。会议审议并通过了如下议案： 一、《2025 年半年度报告及其摘要的议案》 证券代码：002211 证券简称：ST宏达 公告编号：2025-039 上海宏达新材料股份有限公司 2025年8月30日 ...

根据 2025 年 8 月 23 日发出的会议通知，上海宏达新材料股份有限公司（以 下简称"公司"）第七届董事会第五次会议于 2025 年 8 月 28 日在公司会议室以 现场与通讯相结合方式召开，会议由董事长黄俊先生主持，应到董事 5 人，实到 董事 5 人。本次董事会会议的召开符合《公司法》等有关法律和《公司章程》的 规定。本次会议审议通过了如下议案： 一、《2025 年半年度报告及其摘要的议案》 表决结果：同意 5 票，反对 0 票，弃权 0 票。议案通过。 上海宏达新材料股份有限公司 第七届董事会第五次会议决议的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 证券代码：002211 证券简称：ST 宏达 公告编号：2025-038 详见公司披露于巨潮资讯网（www.cninfo.com.cn）上的《2025 年半年度报 告》（公告编号：2025-037）以及披露于《证券时报》、巨潮资讯网（www.cninf o.com.cn）《2025 年半年度报告摘要》（公告编号：2025-036）。 特此公告。 上海宏达新材料股份有限公司 董事会 2025 ...

[Section 1 Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%201%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) [Important Notes](index=2&type=section&id=1.1%20Important%20Notes) The company's board guarantees the report's authenticity, faces a net loss, investor litigation liabilities, and risks from being listed as a dishonest judgment debtor - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[5](index=5&type=chunk) Key Financial Status for H1 2025 | Indicator | Amount (RMB '0,000) | | :--- | :--- | | Net Profit | -929.72 | | Net Cash Flow from Operating Activities | 1,744.73 | | Net Assets (End of Period) | 1,492.44 | | Estimated Liabilities from Investor Litigation | 2,389.81 | - Due to a subrogation dispute with Shanghai Aoyin Investment Management Co, Ltd, the company was ordered to pay RMB 8.48 million and was listed as a dishonest judgment debtor for non-payment, with its subsidiary Dongguan New Oriental's RMB 12 million equity stake facing auction[6](index=6&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[9](index=9&type=chunk) [Table of Contents](index=4&type=section&id=1.2%20Table%20of%20Contents) This report's table of contents outlines nine main sections, providing comprehensive navigation for investors - The report's table of contents includes nine main sections, structured clearly from company profile to financial reports[11](index=11&type=chunk) [Definitions](index=6&type=section&id=1.3%20Definitions) This section defines common terms used in the report to ensure accurate understanding - This section defines key terms used in the report, such as "CSRC," "Exchange," "Company," its main subsidiaries (e,g,, Dongguan New Oriental, Zhangzhou Xindongda, Tianchang Xindongcheng), and raw materials (DMC)[16](index=16&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=7&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile](index=7&type=section&id=2.1%20Company%20Profile) The company, ST Hongda (002211), is listed on the Shenzhen Stock Exchange, with key contacts and addresses remaining unchanged during the reporting period Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Ticker | ST Hongda | | Stock Code | 002211 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Huang Jun | | Secretary of the Board | Wang Yanjie | | Securities Affairs Representative | Huang Lei | - The company's registered address, office address, website, and information disclosure channels remained unchanged during the reporting period[20](index=20&type=chunk)[21](index=21&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=2.2%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew significantly, the net loss narrowed, and operating cash flow improved, though total and net assets declined Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 210,903,705.79 | 112,549,841.02 | 87.39% | | Net Profit Attributable to Shareholders | -9,297,237.27 | -14,780,359.49 | 37.10% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -5,472,389.18 | -7,566,750.48 | 27.68% | | Net Cash Flow from Operating Activities | 17,447,267.32 | -4,514,181.12 | 486.50% | | Basic Earnings Per Share (RMB/share) | -0.0215 | -0.0342 | 37.13% | | Diluted Earnings Per Share (RMB/share) | -0.0215 | -0.0342 | 37.13% | | Weighted Average Return on Net Assets | -47.50% | -26.45% | -21.05% | | **End-of-Period Indicators** | **End of Current Period (RMB)** | **End of Prior Year (RMB)** | **Change from Prior Year-End** | | Total Assets | 379,003,585.13 | 438,370,772.79 | -13.54% | | Net Assets Attributable to Shareholders | 14,924,439.24 | 24,221,676.51 | -38.38% | [Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=8&type=section&id=2.3%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Foreign%20Accounting%20Standards) There were no discrepancies in net profit or net assets between Chinese and international or foreign accounting standards during the reporting period - No differences existed in net profit and net assets under domestic and foreign accounting standards during the reporting period[24](index=24&type=chunk)[25](index=25&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=2.4%20Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) Non-recurring losses in H1 2025 totaled RMB -3.82 million, primarily due to provisions for investor litigation, and are not sustainable Non-recurring Profit and Loss Items for H1 2025 | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -8,063.80 | Loss on disposal of fixed assets, not sustainable | | Government Grants Recognized in Current Profit/Loss | 142,834.92 | Amortization of deferred income, not sustainable | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities Held by Non-financial Enterprises | 185,420.24 | Fair value changes and disposal gains on bank wealth management products, not sustainable | | Other Non-operating Income and Expenses | -4,145,039.45 | Mainly provisions for non-operating expenses related to investor litigation, not sustainable | | **Total** | **-3,824,848.09** | | [Section 3 Management Discussion and Analysis](index=10&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [Principal Business Activities during the Reporting Period](index=10&type=section&id=3.1%20Principal%20Business%20Activities%20during%20the%20Reporting%20Period) The company's main business is the R&D, production, and sale of high-temperature silicone rubber, with a business model sensitive to raw material price fluctuations - The company's main products are high-temperature silicone rubbers, including base rubber, compound rubber, and liquid rubber, used in aviation, electronics, automotive, and medical industries[30](index=30&type=chunk) - The silicone industry chain comprises raw materials, monomers/intermediates, downstream processed products, and end-user applications[30](index=30&type=chunk) - The company's main raw materials, DMC and base rubber, are externally sourced, making it sensitive to market price fluctuations and prompting advance stocking based on market conditions[31](index=31&type=chunk) [Core Competitiveness Analysis](index=10&type=section&id=3.2%20Core%20Competitiveness%20Analysis) The company's core strengths lie in its technology, product range, direct sales model, and management team - **Technology Advantage**: Subsidiary Dongguan New Oriental is a high-tech enterprise with multiple patents, focusing on new product R&D and process improvements to reduce costs[32](index=32&type=chunk) - **Product Advantage**: The company offers a diverse product line with over 230 types of high-temperature silicone rubber, catering to various customer needs with a full range of quality and performance options[33](index=33&type=chunk) - **Direct Sales Advantage**: A direct sales model in the Pearl River and Yangtze River Deltas provides pricing power and brand recognition, fostering stable relationships with suppliers and customers[34](index=34&type=chunk)[35](index=35&type=chunk) - **Management and HR Advantage**: The company has a young, competitive, and innovative management team with extensive experience and a focus on talent acquisition and development[35](index=35&type=chunk) [Analysis of Principal Business](index=11&type=section&id=3.3%20Analysis%20of%20Principal%20Business) H1 2025 revenue grew 87.39% to RMB 211 million, driven by market expansion, while operating cash flow increased significantly due to improved working capital management YoY Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 210,903,705.79 | 112,549,841.02 | 87.39% | Increased due to Xindongcheng's expansion in the East China market | | Operating Costs | 196,248,458.52 | 103,845,234.63 | 88.98% | Grew in line with operating revenue | | Selling Expenses | 7,080,326.81 | 3,821,597.48 | 85.27% | Grew in line with operating revenue | | Net Cash Flow from Operating Activities | 17,447,267.32 | -4,514,181.12 | 486.50% | Improved management of accounts receivable and inventory | | Net Cash Flow from Investing Activities | 3,523,928.88 | -3,052,812.59 | 215.43% | Combined effect of purchasing and redeeming bank wealth management products | | Net Cash Flow from Financing Activities | -3,332,491.02 | -1,980,428.00 | -68.27% | Mainly due to increased rent payments | Operating Revenue Breakdown (by Product) | Product | Current Period Amount (RMB) | % of Revenue | Prior Year Period Amount (RMB) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Base Rubber | 4,147,431.03 | 1.97% | 3,665,501.62 | 3.26% | 13.15% | | Compound Rubber | 198,288,531.57 | 94.02% | 103,599,086.38 | 92.05% | 91.40% | | Liquid Rubber | 8,299,547.53 | 3.94% | 5,261,542.68 | 4.67% | 57.74% | | Others | 168,195.66 | 0.08% | 23,710.34 | 0.02% | 609.38% | Operating Revenue Breakdown (by Region) | Region | Current Period Amount (RMB) | % of Revenue | Prior Year Period Amount (RMB) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 187,952,974.61 | 89.12% | 104,290,001.63 | 92.66% | 80.22% | | Direct Exports | 22,950,731.18 | 10.88% | 8,259,839.39 | 7.34% | 177.86% | [Analysis of Non-Principal Business](index=12&type=section&id=3.4%20Analysis%20of%20Non-Principal%20Business) Non-principal business activities, including asset impairments and litigation provisions, negatively impacted profit and are not sustainable Impact of Non-Principal Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Asset Impairment | 190,284.78 | -2.05% | Mainly due to provisions for inventory write-downs | Not sustainable | | Non-operating Income | 289,752.54 | -3.12% | Mainly from the sale of used product packaging | Not sustainable | | Non-operating Expenses | 4,434,791.99 | 47.70% | Mainly due to provisions for estimated liabilities from investor litigation | Not sustainable | [Analysis of Assets and Liabilities](index=12&type=section&id=3.5%20Analysis%20of%20Assets%20and%20Liabilities) The company's total assets and net assets declined, with significant changes in notes payable and other payables, while a substantial portion of assets remains restricted Significant Changes in Asset Composition (Period-End vs. Prior Year-End) | Item | Current Period-End Amount (RMB) | % of Total Assets | Prior Year-End Amount (RMB) | % of Total Assets | Change in % | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 152,111,536.65 | 40.13% | 188,748,608.61 | 43.06% | -2.93% | | Accounts Receivable | 31,903,731.54 | 8.42% | 34,897,609.34 | 7.96% | 0.46% | | Inventory | 36,172,235.96 | 9.54% | 41,421,732.28 | 9.45% | 0.09% | | Notes Payable | 109,490,138.59 | 28.89% | 163,628,763.62 | 37.33% | -8.44% | | Accounts Payable | 35,404,566.04 | 9.34% | 32,064,029.12 | 7.31% | 2.03% | | Other Payables | 91,761,478.93 | 24.21% | 86,924,625.72 | 19.83% | 4.38% | | Provisions | 29,074,964.75 | 7.67% | 25,494,566.23 | 5.82% | 1.85% | Restricted Assets as of the Reporting Period-End | Item | Period-End Book Value (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Other Monetary Funds | 71,670,138.59 | Acceptance bill margin | | Bank Deposits | 37,820,000.00 | Pledged | | Bank Deposits | 3,620,146.11 | Judicially frozen | | Fixed Assets | 1,211,924.09 | Seized due to litigation | | **Total** | **137,348,766.08** | | Financial Assets Measured at Fair Value | Item | Opening Balance (RMB) | Current Period Fair Value Change (RMB) | Current Period Purchases (RMB) | Current Period Sales (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 13,303,573.61 | 185,420.24 | 2,855,271.30 | 6,483,420.00 | 9,860,845.15 | [Investment Status Analysis](index=14&type=section&id=3.6%20Investment%20Status%20Analysis) The company's investment amount increased by 103.03% during the reporting period, with no major equity, non-equity, or derivative investments Investment Amount during the Reporting Period | Investment Amount (RMB) | Prior Year Period Investment Amount (RMB) | Change | | :--- | :--- | :--- | | 10,050,000.00 | 4,950,000.00 | 103.03% | - The company had no significant equity investments, non-equity investments, securities investments, derivative investments, or use of raised funds during the reporting period[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Sale of Major Assets and Equity](index=15&type=section&id=3.7%20Sale%20of%20Major%20Assets%20and%20Equity) No major assets or equity were sold during the reporting period - The company did not sell any major assets or equity during the reporting period[54](index=54&type=chunk)[55](index=55&type=chunk) [Analysis of Major Holding and Participating Companies](index=15&type=section&id=3.8%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main subsidiaries are engaged in silicone rubber production, while two others have ceased operations due to legacy "private network communication" issues Operating Status of Major Subsidiaries | Company Name | Type | Main Business | Registered Capital (RMB '0,000) | Total Assets (RMB '0,000) | Net Assets (RMB '0,000) | Operating Revenue (RMB '0,000) | Operating Profit (RMB '0,000) | Net Profit (RMB '0,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dongguan New Oriental Technology Co, Ltd | Subsidiary | Production and sale of silicone rubber, silicone oil | 8000 | 22,860.73 | 11,584.66 | 10,721.88 | -16.49 | -9.64 | | Tianchang Xindongcheng New Materials Co, Ltd | Subsidiary | Production and sale of silicone rubber | 1500 | 13,779.77 | 869.73 | 9,479.27 | -158.53 | -158.59 | | Shanghai Hongzhu Information Technology Co, Ltd | Subsidiary | Operations ceased | 15000 | 136.58 | -19,370.58 | 0.00 | -0.62 | -0.62 | | Shanghai Guanfeng Information Technology Co, Ltd | Subsidiary | Operations ceased | 5000 | 358.60 | -14,713.62 | 0.00 | -14.93 | -106.14 | - Subsidiaries Shanghai Hongzhu and Shanghai Guanfeng have ceased operations due to involvement in the "private network communication" business, and the company has initiated liquidation and deregistration of Shanghai Hongzhu to mitigate the impact[56](index=56&type=chunk) [Structured Entities Controlled by the Company](index=15&type=section&id=3.9%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[57](index=57&type=chunk) [Risks Faced by the Company and Countermeasures](index=15&type=section&id=3.10%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces significant risks from investor lawsuits, a subrogation dispute, legacy business issues, and uncertainty about its going concern status - **Investor Litigation Risk**: The company is under investigation for alleged information disclosure violations, facing 227 lawsuits with claims totaling **RMB 25.18 million**, of which 206 cases (RMB 23.90 million) are ongoing, with provisions made[57](index=57&type=chunk)[58](index=58&type=chunk)[103](index=103&type=chunk) - **Subrogation Dispute and Dishonest Debtor Risk**: A court ordered the company to pay **RMB 8.48 million** to Aoyin Investment; failure to pay resulted in being listed as a dishonest judgment debtor, with a subsidiary's **RMB 12 million equity stake** at risk of auction[59](index=59&type=chunk)[60](index=60&type=chunk) - **Legacy "Private Network Communication" Issues**: Subsidiaries Shanghai Guanfeng and Shanghai Hongzhu have ceased operations due to this issue, with their equity frozen; the company is pursuing legal action and liquidation[61](index=61&type=chunk)[111](index=111&type=chunk) - **Going Concern Uncertainty and ST Risk**: The company has incurred losses for three consecutive years, and its 2024 audit report highlighted material uncertainty about its ability to continue as a going concern, leading to an "ST" risk warning on its stock[61](index=61&type=chunk)[62](index=62&type=chunk) - **Countermeasures**: Management will focus on increasing revenue through scale and optimization, reducing costs across materials, labor, and expenses, monitoring legal cases to resolve the private network issue, and launching initiatives to improve operating cash flow[77](index=77&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=17&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=4.1%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, employee supervisor Yang Ping resigned and was replaced by Zhang Deshun Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Yang Ping | Employee Supervisor | Resigned | 2025-02-17 | Personal reasons | | Zhang Deshun | Employee Supervisor | Elected | 2025-02-17 | Work transfer | [Profit Distribution and Capitalization of Capital Reserves for the Reporting Period](index=17&type=section&id=4.2%20Profit%20Distribution%20and%20Capitalization%20of%20Capital%20Reserves%20for%20the%20Reporting%20Period) The company does not plan to distribute profits or capitalize capital reserves for the first half of the year - The company plans no cash dividend, bonus shares, or capitalization of capital reserves for the semi-annual period[66](index=66&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=17&type=section&id=4.3%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[67](index=67&type=chunk) [Environmental Information Disclosure](index=17&type=section&id=4.4%20Environmental%20Information%20Disclosure) Subsidiary Dongguan New Oriental Technology Co, Ltd is listed for mandatory environmental information disclosure, with details available on the provincial platform - Subsidiary Dongguan New Oriental Technology Co, Ltd is included in the list of enterprises required to disclose environmental information, which can be accessed via the Guangdong Provincial Department of Ecology and Environment system[68](index=68&type=chunk) [Social Responsibility](index=17&type=section&id=4.5%20Social%20Responsibility) The company fulfills its social responsibilities by protecting employee rights, maintaining fair partnerships, and investing in environmental protection - **Protecting Employee Interests**: Complies with the Labor Law, implements a full labor contract system, provides social insurance for all employees, and ensures production safety[69](index=69&type=chunk) - **Fair Cooperation**: Cooperates with suppliers and customers in good faith, adheres to contracts, and achieves mutual benefits[69](index=69&type=chunk) - **Environmental Protection**: Continuously invests in technical upgrades to improve processes, effectively reducing and controlling waste gas and wastewater emissions[69](index=69&type=chunk) [Section 5 Important Matters](index=18&type=section&id=Section%205%20Important%20Matters) [Commitments Fulfilled or Overdue by Relevant Parties during the Reporting Period](index=18&type=section&id=5.1%20Commitments%20Fulfilled%20or%20Overdue%20by%20Relevant%20Parties%20during%20the%20Reporting%20Period) There were no fulfilled or overdue commitments by the company's actual controller, shareholders, or other related parties during the reporting period - There were no overdue unfulfilled commitments during the reporting period[71](index=71&type=chunk) [Non-operating Fund Occupation by the Controlling Shareholder and Other Related Parties](index=18&type=section&id=5.2%20Non-operating%20Fund%20Occupation%20by%20the%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) No non-operating funds of the company were occupied by its controlling shareholder or other related parties during the reporting period - There was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period[72](index=72&type=chunk) [Irregular External Guarantees](index=18&type=section&id=5.3%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[73](index=73&type=chunk) [Appointment and Dismissal of Accounting Firm](index=18&type=section&id=5.4%20Appointment%20and%20Dismissal%20of%20Accounting%20Firm) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[74](index=74&type=chunk) [Board and Supervisory Committee's Explanation on "Non-standard Audit Report" for the Current Period](index=18&type=section&id=5.5%20Board%20and%20Supervisory%20Committee's%20Explanation%20on%20%22Non-standard%20Audit%20Report%22%20for%20the%20Current%20Period) There is no "non-standard audit report" for the current reporting period requiring explanation - There is no "non-standard audit report" for the current reporting period requiring explanation[75](index=75&type=chunk) [Board's Explanation on "Non-standard Audit Report" from the Previous Year](index=18&type=section&id=5.6%20Board's%20Explanation%20on%20%22Non-standard%20Audit%20Report%22%20from%20the%20Previous%20Year) The board acknowledges the 2024 audit report's concerns about going concern uncertainty and is implementing measures to improve financial stability - L&A CPAs issued an unqualified audit opinion for the 2024 financial report with paragraphs on **material uncertainty related to going concern** and an emphasis of matter[75](index=75&type=chunk) - **Material Uncertainty Related to Going Concern**: The company incurred losses for three consecutive years, with a net loss of **RMB 39.04 million** in 2024, negative operating cash flow of **RMB -20.30 million**, year-end net assets of **RMB 24.22 million**, and estimated litigation liabilities of **RMB 20.85 million**[75](index=75&type=chunk) - **Emphasis of Matter**: The company faces investor lawsuits due to securities misrepresentation, with 162 cases (totaling **RMB 20.85 million**) still pending, for which provisions have been made; the ultimate impact remains uncertain[76](index=76&type=chunk) - **Board's Countermeasures**: The board will focus on increasing revenue, implementing cost-saving measures, resolving the impact of the private network communication issue, and improving operating cash flow[77](index=77&type=chunk) [Bankruptcy and Reorganization Matters](index=19&type=section&id=5.7%20Bankruptcy%20and%20Reorganization%20Matters) No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[78](index=78&type=chunk) [Litigation Matters](index=19&type=section&id=5.8%20Litigation%20Matters) The company is involved in significant litigation, including numerous investor lawsuits and a subrogation dispute that has led to enforcement actions Major Litigation and Arbitration | Case | Amount Involved (RMB '0,000) | Provision Made | Progress | Outcome and Impact | Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Investor Lawsuits (Information Disclosure Violations) | 2,517.86 | Yes | 21 cases settled, 206 pending | 20 settled cases have been resolved; provisions are made for the full amount of pending cases, with the final impact subject to court rulings | 21 settled cases have been fully executed; others are pending | | Subrogation Dispute with Shanghai Aoyin Investment Management Co, Ltd | 848 | No | Second-instance trial concluded, in enforcement | The company was ordered to pay RMB 8.48 million; the second-instance court upheld the verdict | Due to non-payment, the company was listed as a dishonest judgment debtor, and a court has ordered the auction of its subsidiary's RMB 12 million equity stake | Other Litigation Matters | Case | Amount Involved (RMB '0,000) | Provision Made | Progress | Outcome and Impact | Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Hongda vs Jiangsu Shouzhi New Energy Technology (Processing Contract Dispute) | 32.32 | No | Settled through mediation | Jiangsu Shouzhi paid the company RMB 279,618 in processing fees | Fully executed by Jiangsu Shouzhi | | Shanghai Dahua Zhengsheng Luggage vs Shanghai Guanfeng (Lease Contract Dispute) | 154.17 | No | First-instance judgment concluded, in enforcement | The court ordered Shanghai Guanfeng to pay rent and other fees and vacate the premises; Shanghai Hongda was not held jointly liable | As Shanghai Guanfeng cannot pay, Shanghai Dahua has applied to seize its equipment | | Beijing Fuou Hangdian Technology vs Shanghai Guanfeng (Sales Contract Dispute) | 449.29 | No | Second-instance trial concluded, in enforcement | The court ordered the company to pay RMB 4,492,890.60 plus interest and fees; the second-instance court upheld the verdict | The court executed RMB 2,007,978.02 in Feb 2022 and froze four machines; a recent court order approved the auction of these machines | [Penalties and Rectifications](index=21&type=section&id=5.9%20Penalties%20and%20Rectifications) No penalties or rectifications occurred during the reporting period - No penalties or rectifications occurred during the reporting period[83](index=83&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=21&type=section&id=5.10%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company has been listed as a dishonest judgment debtor due to a payment dispute, and it intends to pursue claims against its former controlling shareholder - The company was ordered to pay **RMB 8.48 million** in a subrogation dispute and was listed as a dishonest judgment debtor for non-payment, putting its subsidiary's **RMB 12 million equity stake** at risk of auction[84](index=84&type=chunk)[85](index=85&type=chunk) - The company's former controlling shareholder, Shanghai Hongzi, caused substantial losses by introducing the "private network communication" business, and the company will actively pursue legal claims to protect its interests[85](index=85&type=chunk)[86](index=86&type=chunk) [Major Related-Party Transactions](index=22&type=section&id=5.11%20Major%20Related-Party%20Transactions) The company engaged in routine related-party transactions for procurement, sales, and leasing, all conducted within approved limits and on fair terms Related-Party Transactions in Daily Operations | Related Party | Relationship | Transaction Type | Transaction Content | Amount (RMB '0,000) | % of Similar Transactions | Approved Limit (RMB '0,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Procurement | Raw materials, goods | 59.26 | 0.42% | 200 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Procurement | Technical services | 14.72 | 93.74% | 35 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Sales | Goods | 1,153.25 | 5.12% | 1,415 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Leasing | Land, buildings, and other assets | 330.07 | 74.41% | 1,250 | - All related-party transactions during the reporting period were within approved limits and conducted on fair and reasonable terms[87](index=87&type=chunk) - The company had no related-party transactions involving the acquisition or sale of assets or equity, joint external investments, or related-party debt and credit during the reporting period[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Major Contracts and Their Performance](index=23&type=section&id=5.12%20Major%20Contracts%20and%20Their%20Performance) The company has a significant related-party leasing agreement and engaged in wealth management, but had no托管 or contracting arrangements - The company had no custody or contracting arrangements during the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk) - **Leasing**: Grand-subsidiary Tianchang Xindongcheng leases a factory and equipment from related party Anhui Maiteng New Materials Co, Ltd for an annual rent of **RMB 6.62 million** (including tax) under a five-year agreement, which constitutes a related-party transaction[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) Entrusted Wealth Management | Type | Source of Funds | Amount (RMB '0,000) | Outstanding Balance (RMB '0,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 285.53 | 913.8 | - The company had no major guarantees or other major contracts during the reporting period[99](index=99&type=chunk)[101](index=101&type=chunk) [Explanation of Other Major Matters](index=25&type=section&id=5.13%20Explanation%20of%20Other%20Major%20Matters) The company faces multiple significant issues, including extensive investor litigation, unfulfilled performance commitments, frozen shareholder equity, and a pending intra-group share transfer - **Investor Litigation**: The company is under investigation for alleged information disclosure violations and has received 227 lawsuits with claims totaling **RMB 25.18 million**, with 206 cases still pending[103](index=103&type=chunk) - **Shanghai Guanfeng Acquisition**: The "private network communication" business of Shanghai Guanfeng was deemed to lack commercial substance, and performance commitments were not met, requiring compensation of **RMB 135 million** from the sellers, which is unlikely to be recovered[104](index=104&type=chunk)[105](index=105&type=chunk) - **Share Freeze**: Shares held by controlling shareholder Jiangsu Weilun and Hangzhou Keli Enterprise Management Partnership (Limited Partnership) have been judicially frozen[105](index=105&type=chunk) - **Controlling Shareholder Change**: Jiangsu Weilun plans to transfer its **22.52%** stake (97,410,619 shares) to actual controller Zhu Enwei; this is an intra-group transfer under common control, and the actual controller will not change[106](index=106&type=chunk)[107](index=107&type=chunk) - **Debt Forgiveness**: A **RMB 36.91 million** debt owed by subsidiary Shanghai Guanfeng to former controlling shareholder Shanghai Hongzi was forgiven, with the creditor changed to Jiangsu Weilun; the company has not yet performed the accounting treatment[108](index=108&type=chunk)[109](index=109&type=chunk) - **Going Concern Uncertainty and ST Risk**: The company's stock is under an "ST" risk warning due to three consecutive years of losses and material uncertainty about its ability to continue as a going concern[109](index=109&type=chunk)[110](index=110&type=chunk) [Major Matters Concerning Company Subsidiaries](index=26&type=section&id=5.14%20Major%20Matters%20Concerning%20Company%20Subsidiaries) Two subsidiaries have ceased operations due to their involvement in the "private network communication" business, and the company is proceeding with their liquidation - Shanghai Guanfeng and Shanghai Hongzhu have completely ceased production and operations due to their involvement in the "private network communication" business, and their equity has been frozen by the Nantong Intermediate People's Court[111](index=111&type=chunk) - The company has approved the dissolution and liquidation of these wholly-owned subsidiaries, established a liquidation team, completed business deregistration filings, and is actively pursuing legal action to protect its rights[111](index=111&type=chunk) [Section 6 Share Capital Changes and Shareholder Information](index=27&type=section&id=Section%206%20Share%20Capital%20Changes%20and%20Shareholder%20Information) [Share Capital Changes](index=27&type=section&id=6.1%20Share%20Capital%20Changes) The company's total share capital remained unchanged during the reporting period, consisting entirely of unrestricted shares Share Capital Changes | Item | Pre-Change Quantity (shares) | Pre-Change Ratio | Change (+, -) | Post-Change Quantity (shares) | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0% | 0 | 0 | 0% | | II. Unrestricted Shares | 432,475,779 | 100% | 0 | 432,475,779 | 100% | | III. Total Shares | 432,475,779 | 100% | 0 | 432,475,779 | 100% | - The company's total share capital did not change during the reporting period, and there were no share changes due to new issuances, approvals, transfers, or share buybacks[114](index=114&type=chunk) [Securities Issuance and Listing](index=28&type=section&id=6.2%20Securities%20Issuance%20and%20Listing) No securities were issued or listed during the reporting period - No securities were issued or listed during the reporting period[114](index=114&type=chunk) [Number of Shareholders and Shareholdings](index=28&type=section&id=6.3%20Number%20of%20Shareholders%20and%20Shareholdings) As of the period-end, the company had 32,047 shareholders, with the top two shareholders having a significant portion of their shares frozen Total Common Shareholders and Top 10 Shareholders' Holdings at Period-End | Shareholder Name | Nature | Shareholding Ratio | Shares Held (shares) | Unrestricted Shares (shares) | Share Status | Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Weilun Investment Management Co, Ltd | Domestic Non-state-owned Legal Entity | 29.07% | 125,735,743 | 125,735,743 | Frozen | 28,325,124 | | Hangzhou Keli Enterprise Management Partnership (LP) | Domestic Non-state-owned Legal Entity | 7.96% | 34,440,000 | 34,440,000 | Frozen | 34,440,000 | | UBS AG | Foreign Legal Entity | 0.55% | 2,372,277 | 2,372,277 | N/A | 0 | | Gong Jindi | Domestic Natural Person | 0.53% | 2,276,542 | 2,276,542 | N/A | 0 | | He Wei | Domestic Natural Person | 0.50% | 2,172,800 | 2,172,800 | N/A | 0 | | Chen Nian | Domestic Natural Person | 0.49% | 2,100,000 | 2,100,000 | N/A | 0 | | Lu Wei | Domestic Natural Person | 0.46% | 2,000,000 | 2,000,000 | N/A | 0 | | Li Ximing | Domestic Natural Person | 0.46% | 2,000,000 | 2,000,000 | N/A | 0 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Foreign Legal Entity | 0.44% | 1,919,026 | 1,919,026 | N/A | 0 | | BARCLAYS BANK PLC | Foreign Legal Entity | 0.44% | 1,899,751 | 1,899,751 | N/A | 0 | - At the end of the reporting period, the total number of common shareholders was **32,047**[115](index=115&type=chunk) - Jiangsu Weilun Investment Management Co, Ltd, Gong Jindi, and Zhu Yanmei are parties acting in concert[116](index=116&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=30&type=section&id=6.4%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period[118](index=118&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=30&type=section&id=6.5%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller did not change during the reporting period - The company's controlling shareholder and actual controller did not change during the reporting period[119](index=119&type=chunk) [Information on Preferred Shares](index=30&type=section&id=6.6%20Information%20on%20Preferred%20Shares) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[120](index=120&type=chunk) [Section 7 Bond-related Matters](index=30&type=section&id=Section%207%20Bond-related%20Matters) [Bond-related Matters](index=30&type=section&id=7.1%20Bond-related%20Matters) The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[122](index=122&type=chunk) [Section 8 Financial Report](index=31&type=section&id=Section%208%20Financial%20Report) [Audit Report](index=31&type=section&id=8.1%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[124](index=124&type=chunk) [Financial Statements](index=31&type=section&id=8.2%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first half of 2025 - This section includes the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[125](index=125&type=chunk) [Consolidated Balance Sheet](index=31&type=section&id=8.2.1%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were RMB 379 million, a decrease of 13.54% from the beginning of the year Key Data from the Consolidated Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 379,003,585.13 | 438,370,772.79 | | Total Current Assets | 283,340,076.56 | 336,504,499.51 | | Total Non-current Assets | 95,663,508.57 | 101,866,273.28 | | Total Liabilities | 364,079,145.89 | 414,149,096.28 | | Total Current Liabilities | 314,906,235.34 | 365,475,938.46 | | Total Equity Attributable to Parent Company | 14,924,439.24 | 24,221,676.51 | [Parent Company Balance Sheet](index=33&type=section&id=8.2.2%20Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were RMB 114 million, with total liabilities of RMB 34.83 million Key Data from the Parent Company Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 113,611,984.83 | 117,091,127.39 | | Total Current Assets | 16,169,374.82 | 19,133,835.42 | | Total Non-current Assets | 97,442,610.01 | 97,957,291.97 | | Long-term Equity Investments | 73,434,900.00 | 73,434,900.00 | | Total Liabilities | 34,829,423.44 | 32,026,230.71 | | Total Owners' Equity | 78,782,561.39 | 85,064,896.68 | [Consolidated Income Statement](index=35&type=section&id=8.2.3%20Consolidated%20Income%20Statement) For H1 2025, the company reported consolidated revenue of RMB 211 million and a net loss of RMB 9.30 million, a 37.10% reduction in loss year-over-year Key Data from the Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 210,903,705.79 | 112,549,841.02 | | Total Operating Costs | 216,381,334.96 | 119,058,731.81 | | Total Profit | -9,235,565.52 | -14,780,359.49 | | Net Profit | -9,297,237.27 | -14,780,359.49 | | Net Profit Attributable to Parent Company Owners | -9,297,237.27 | -14,780,359.49 | | Basic Earnings Per Share | -0.0215 | -0.0342 | [Parent Company Income Statement](index=38&type=section&id=8.2.4%20Parent%20Company%20Income%20Statement) For H1 2025, the parent company had no operating revenue and reported a net loss of RMB 6.28 million Key Data from the Parent Company Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 0.00 | 0.00 | | Total Profit | -6,282,335.29 | -10,035,255.73 | | Net Profit | -6,282,335.29 | -10,035,255.73 | | Basic Earnings Per Share | -0.0145 | -0.0232 | [Consolidated Cash Flow Statement](index=39&type=section&id=8.2.5%20Consolidated%20Cash%20Flow%20Statement) For H1 2025, net cash flow from operating activities was RMB 17.45 million, a significant year-over-year improvement of 486.50% Key Data from the Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 17,447,267.32 | -4,514,181.12 | | Net Cash Flow from Investing Activities | 3,523,928.88 | -3,052,812.59 | | Net Cash Flow from Financing Activities | -3,332,491.02 | -1,980,428.00 | | Net Increase in Cash and Cash Equivalents | 17,638,705.18 | -9,547,421.71 | | Closing Balance of Cash and Cash Equivalents | 39,001,251.95 | 40,892,104.46 | [Parent Company Cash Flow Statement](index=40&type=section&id=8.2.6%20Parent%20Company%20Cash%20Flow%20Statement) For H1 2025, the parent company's net cash flow from operating activities was RMB -2.37 million Key Data from the Parent Company Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -2,365,098.47 | -3,492,168.57 | | Net Cash Flow from Investing Activities | 0.00 | 211,800.00 | | Net Cash Flow from Financing Activities | 2,364,942.75 | 3,428,640.54 | | Net Increase in Cash and Cash Equivalents | -155.72 | 148,271.97 | | Closing Balance of Cash and Cash Equivalents | 245.62 | 149,176.46 | [Consolidated Statement of Changes in Owners' Equity](index=41&type=section&id=8.2.7%20Consolidated%20Statement%20of%20Changes%20in%20Owners'%20Equity) In H1 2025, consolidated owners' equity decreased from RMB 24.22 million to RMB 14.92 million, primarily due to the net loss for the period Consolidated Statement of Changes in Owners' Equity | Item | Share Capital (RMB) | Capital Reserve (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Equity Attributable to Parent Company (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at Prior Year-End | 432,475,779.00 | 1,027,351,290.22 | 28,894,524.03 | -1,464,499,916.74 | 24,221,676.51 | | III. Changes in Current Period | 0.00 | 0.00 | 0.00 | -9,297,237.27 | -9,297,237.27 | | IV. Balance at Current Period-End | 432,475,779.00 | 1,027,351,290.22 | 28,894,524.03 | -1,473,797,154.01 | 14,924,439.24 | [Parent Company Statement of Changes in Owners' Equity](index=45&type=section&id=8.2.8%20Parent%20Company%20Statement%20of%20Changes%20in%20Owners'%20Equity) In H1 2025, the parent company's owners' equity decreased from RMB 85.06 million to RMB 78.78 million, mainly due to the net loss for the period Parent Company Statement of Changes in Owners' Equity | Item | Share Capital (RMB) | Capital Reserve (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Owners' Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at Prior Year-End | 432,475,779.00 | 1,037,879,266.13 | 28,894,524.03 | -1,414,184,672.48 | 85,064,896.68 | | III. Changes in Current Period | 0.00 | 0.00 | 0.00 | -6,282,335.29 | -6,282,335.29 | | IV. Balance at Current Period-End | 432,475,779.00 | 1,037,879,266.13 | 28,894,524.03 | -1,420,467,007.77 | 78,782,561.39 | [Company Basic Information](index=48&type=section&id=8.3%20Company%20Basic%20Information) Shanghai Hongda New Material Co, Ltd, established in 2004, is controlled by Jiangsu Weilun Investment Management Co, Ltd and operates in the synthetic materials industry - The company was established on January 7, 2004, and was formerly known as Jiangsu Hongda New Material Co, Ltd[158](index=158&type=chunk) - The company's total share capital is **432,475,779 shares** with a par value of RMB 1 per share[160](index=160&type=chunk) - The controlling shareholder is Jiangsu Weilun Investment Management Co, Ltd, and the actual controller is Zhu Enwei[161](index=161&type=chunk) - The company's main business includes manufacturing synthetic materials, selling high-quality synthetic rubber, and import/export of goods and technologies[161](index=161&type=chunk) - The H1 2025 consolidated financial statements include a total of 5 subsidiaries[162](index=162&type=chunk) [Basis of Preparation of Financial Statements](index=49&type=section&id=8.4%20Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared on a going concern basis, despite material uncertainties arising from continuous losses and significant litigation liabilities - These financial statements are prepared in accordance with the Ministry of Finance's Accounting Standards for Business Enterprises, based on the accrual basis and historical cost principle, with exceptions for certain financial instruments[163](index=163&type=chunk) - **Material uncertainty exists regarding the company's going concern ability**, as it has reported negative net profits after non-recurring items from 2022 to H1 2025, with net assets of only **RMB 14.92 million** and estimated litigation liabilities of **RMB 23.90 million** at the end of H1 2025[164](index=164&type=chunk) - The company plans to improve its going concern ability by expanding into new markets, increasing investment in high-margin products, securing additional bank credit, and seeking debt forgiveness from the controlling shareholder[164](index=164&type=chunk)[165](index=165&type=chunk) [Significant Accounting Policies and Estimates](index=50&type=section&id=8.5%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, covering areas such as financial instruments, revenue recognition, and asset valuation - The company adheres to enterprise accounting standards to provide a true and fair view of its financial position, operating results, and cash flows[167](index=167&type=chunk) - Financial assets are classified into three categories: measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss, with detailed policies for initial recognition, subsequent measurement, and impairment[184](index=184&type=chunk)[185](index=185&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - The revenue recognition principle is based on identifying performance obligations, determining if they are satisfied over time or at a point in time, and measuring revenue at the transaction price, which is applied to the sale of goods[243](index=243&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk) - The company applies significant judgments and estimates in areas such as financial asset impairment, inventory write-downs, deferred tax assets, income tax, and provisions[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) [Taxes](index=70&type=section&id=8.6%20Taxes) The company is subject to various taxes, with certain subsidiaries benefiting from preferential corporate income tax rates Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sale of goods | 13% | | Consumption Tax | Taxable turnover | 5% | | Urban Maintenance and Construction Tax | Taxable turnover | 5% | | Corporate Income Tax | Taxable income | 25%, 15%, 5% | - **Tax Incentives**: Subsidiary Dongguan New Oriental Technology Co, Ltd, as a high-tech enterprise, is subject to a preferential corporate income tax rate of **15%**; subsidiary Zhangzhou Xindongda New Materials Co, Ltd qualifies as a small and micro enterprise and enjoys a preferential income tax rate of **20%**[263](index=263&type=chunk) [Notes to Consolidated Financial Statement Items](index=71&type=section&id=8.7%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on the components of the consolidated financial statements, including breakdowns of assets, liabilities, and income statement items Composition and Restriction of Monetary Funds | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 29,357.61 | 63,125.09 | | Bank Deposits | 42,592,040.45 | 25,049,519.90 | | Other Monetary Funds | 109,490,138.59 | 163,635,963.62 | | **Total** | **152,111,536.65** | **188,748,608.61** | | Details of Restricted Monetary Funds: | | | | Bank Acceptance Bill Margin | 71,670,138.59 | 96,115,963.62 | | Pledged Time Deposits | 37,820,000.00 | 67,520,000.00 | | Frozen Bank Funds | 3,620,146.11 | 3,750,098.22 | | **Total Restricted Funds** | **113,110,284.70** | **167,386,061.84** | Changes in Bad Debt Provision for Accounts Receivable | Category | Opening Balance (RMB) | Current Period Provision (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable with Individual Provision | 2,314,842.54 | 0.00 | 2,314,842.54 | | Accounts Receivable with Group Provision (Aging) | 6,186,845.03 | 81,867.85 | 6,268,712.88 | | **Total** | **8,501,687.57** | **81,867.85** | **8,583,555.42** | Changes in Inventory Write-down and Contract Cost Impairment Provisions | Item | Opening Balance (RMB) | Current Period Increase (RMB) | Current Period Decrease (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Raw Materials | 1,105,029.84 | 119,073.40 | 194,070.79 | 1,030,032.45 | | Work in Progress | 108,333.67 | 109,146.16 | 91,030.85 | 126,448.98 | | Finished Goods | 417,029.54 | 0.00 | 197,357.51 | 219,672.03 | | Revolving Materials | 23,570.24 | 99,919.66 | 17,088.24 | 106,401.66 | | Goods Shipped | 1,121,113.46 | 0.00 | 1,024,896.61 | 96,216.85 | | **Total** | **2,775,076.75** | **328,139.22** | **1,524,444.00** | **1,578,771.97** | Composition of Provisions | Item | Closing Balance (RMB) | Opening Balance (RMB) | Reason | | :--- | :--- | :--- | :--- | | Pending Litigation | 23,898,066.53 | 20,848,198.01 | Provision for estimated losses from investor lawsuits | | Others | 5,176,898.22 | 4,646,368.22 | Penalties for breach of contract | | **Total** | **29,074,964.75** | **25,494,566.23** | | Operating Revenue and Costs | Item | Current Period Revenue (RMB) | Current Period Costs (RMB) | Prior Period Revenue (RMB) | Prior Period Costs (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 210,735,510.13 | 196,188,941.72 | 112,468,124.19 | 103,779,257.50 | | Other Business | 168,195.66 | 59,516.80 | 81,716.83 | 65,977.13 | | **Total** | **210,903,705.79** | **196,248,458.52** | **112,549,841.02** | **103,845,234.63** | [R&D Expenditures](index=107&type=section&id=8.8%20R&D%20Expenditures) The company's R&D investment in H1 2025 amounted to RMB 3.40 million, all of which was expensed R&D Expenditure Details | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 1,617,397.63 | 1,488,910.31 | | Material Costs | 1,749,858.74 | 1,758,966.82 | | Research Equipment and Facility Costs | 33,615.23 | 32,457.84 | | Others | 3,970.84 | 375.00 | | **Total** | **3,404,842.44** | **3,280,709.97** | | Of which: Expensed R&D | 3,404,842.44 | 3,280,709.97 | - There were no R&D projects eligible for capitalization or significant externally acquired ongoing R&D projects during the reporting period[492](index=492&type=chunk)[493](index=493&type=chunk) [Changes in the Scope of Consolidation](index=107&type=section&id=8.9%20Changes%20in%20the%20Scope%20of%20Consolidation) There were no changes in the scope of consolidation during the reporting period - There were no business combinations not under common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to a loss of control during the reporting period[494](index=494&type=chunk)[495](index=495&type=chunk)[496](index=496&type=chunk)[497](index=497&type=chunk) [Interests in Other Entities](index=108&type=section&id=8.10%20Interests%20in%20Other%20Entities) The company has five wholly-owned subsidiaries, two of which have ceased operations, while the others are engaged in silicone rubber production Composition of the Enterprise Group | Subsidiary Name | Main Place of Business | Business Nature | Ownership (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Shanghai Hongzhu Information Technology Co, Ltd | Shanghai | Operations ceased | 100.00% | Establishment or investment | | Shanghai Guanfeng Information Technology Co, Ltd | Shanghai | Operations ceased | 100.00% | Equity acquisition not under common control | | Dongguan New Oriental Technology Co, Ltd | Dongguan | Silicone rubber production | 100.00% | Establishment or investment | | Zhangzhou Xindongda New Materials Co, Ltd | Zhangzhou | Silicone rubber production | 100.00% (Indirect) | Establishment | | Tianchang Xindongcheng New Materials Co, Ltd | Tianchang | Silicone rubber production | 100.00% (Indirect) | Establishment | - During the reporting period, there were no changes in the ownership interests in subsidiaries, and the company had no significant non-wholly-owned subsidiaries, joint ventures, associates, or unconsolidated structured entities[500](index=500&type=chunk)[501](index=501&type=chunk)[502](index=502&type=chunk)[503](index=503&type=chunk)[504](index=504&type=chunk) [Government Grants](index=109&type=section&id=8.11%20Government%20Grants) The company received government grants totaling RMB 0.14 million during the reporting period, primarily related to technical upgrades and tax rebates Liability Items Related to Government Grants | Account | Opening Balance (RMB) | New Grants (RMB) | Transferred to Other Income (RMB) | Closing Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,165,488.31 | 0.00 | 138,329.16 | 1,027,159.15 | Asset-related | Government Grants Recognized in Current Profit or Loss | Account | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Other Income (Technical upgrade amortization) | 121,204.14 | 124,285.42 | | Other Income (Coal-fired boiler special subsidy) | 17,125.02 | 17,125.02 | | Other Income (Individual income tax handling fee refund) | 4,505.76 | 3,720.45 | | **Total** | **142,834.92** | **145,130.89** | [Risks Related to Financial Instruments](index=110&type=section&id=8.12%20Risks%20Related%20to%20Financial%20Instruments) The company manages market, credit, and liquidity risks associated with its financial instruments through active monitoring and control measures - **Market Risk**: Includes foreign exchange risk (managed by monitoring rate fluctuations) and interest rate risk (managed through good banking relationships and reasonable credit facility design)[509](index=509&type=chunk)[510](index=510&type=chunk) - **Credit Risk**: Arises mainly from bank deposits and receivables, controlled by assessing debtor creditworthiness, setting credit limits, monitoring credit records, and making provisions for bad debts[510](index=510&type=chunk)[511](index=511&type=chunk) - **Liquidity Risk**: Managed by maintaining sufficient cash and cash equivalents and monitoring them to meet operational needs and mitigate cash flow fluctuations[511](index=511&type=chunk) [Fair Value Disclosures](index=111&type=section&id=8.13%20Fair%20Value%20Disclosures) The company's financial assets measured at fair value consist of trading financial assets (bank wealth management products) valued at RMB 9.86 million Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Closing Fair Value (RMB) | | :--- | :--- | | (I) Trading Financial Assets | 9,860,845.15 | | 1. Financial assets at FVTPL | 9,860,845.15 | | Bank wealth management products | 9,860,845.15 | - The company's trading financial assets at period-end are bank wealth management products, measured at fair value based on real-time quotes, which falls under **Level 1** of the fair value hierarchy[516](index=516&type=chunk) [Related Parties and Related-Party Transactions](index=112&type=section&id=8.14%20Related%20Parties%20and%20Related-Party%20Transactions) The company's main related-party transactions involve routine business with entities under common control or significant influence, all conducted within approved limits Parent Company Information | Parent Company Name | Registered Location | Business Nature | Registered Capital | Shareholding Ratio | Voting Rights Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Weilun Investment Management Co, Ltd | Xinba Town, Yangzhong City | Investment management; trade of polymer materials and machinery | RMB 86.96 million | 29.07% | 29.07% | - Other related parties include the actual controller Zhu Enwei, entities under common control, and entities under significant influence (such as Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd)[520](index=520&type=chunk)[521](index=521&type=chunk) Related-Party Transactions for Goods and Services | Related Party | Transaction Content | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Purchase of raw materials and goods | 592,623.88 | 41,656,627.02 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Provision of technical services | 147,169.81 | 141,509.43 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Sale of goods | 11,532,467.38 | 495,903.98 | Key Management Personnel Compensation | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Company Directors, Supervisors, and Senior Management | 1,179,450.75 | 1,128,467.52 | - **Related-Party Commitments**: The controlling shareholder and its related parties have committed to ensuring the company's independence, standardizing and reducing related-party transactions, and avoiding competition, with some competition issues already resolved[538](index=538&type=chunk)[539](index=539&type=chunk)[541](index=541&type=chunk)[542](index=542&type=chunk)[543](index=543&type=chunk) [Share-based Payment](index=115&type=section&id=8.15%20Share-based%20Payment) The company had no share-based payment arrangements during the reporting period - The company had no share-based payment arrangements during the reporting period[541](index=541&type=chunk)[542](index=542&type=chunk) [Commitments and Contingencies](index=116&type=section&id=8.16%20Commitments%20and%20Contingencies) The company has significant commitments regarding corporate governance and unfulfilled performance guarantees, alongside major contingencies from investor lawsuits and a payment dispute - **Significant Commitments**: The controlling shareholder and actual controller have committed to avoiding competition, regulating related-party transactions, and maintaining the company's independence, with some progress made[541](index=541&type=chunk)[542](index=542&type=chunk)[543](index=543&type=chunk) - **Guanfeng Performance Commitment**: The performance commitment for Shanghai Guanfeng for 2019-2021 was not met, and significant asset impairment occurred, requiring performance and impairment compensation up to **RMB 225 million**, of which **RMB 135 million** is unlikely to be recovered[544](index=544&type=chunk)[545](index=545&type=chunk) - **Investor Litigation**: As of the report date, 227 investor lawsuits have been filed with claims totaling **RMB 25.79 million**; 207 cases (amounting to **RMB 23.90 million**) are still pending, for which provisions have been made[546](index=546&type=chunk) - **Subrogation Dispute**: A court ordered the company to pay **RMB 8.48 million** to Shanghai Aoyin Investment Management Co, Ltd; the verdict was upheld on appeal, and the company has been listed as a dishonest judgment debtor for non-payment[547](index=547&type=chunk)[548](index=548&type=chunk)[549](index=549&type=chunk) [Post-Balance Sheet Events](index=118&type=section&id=8.17%20Post-Balance%20Sheet%20Events) There were no post-balance sheet events to report - There were no post-balance sheet events to report[551](index=551&type=chunk) [Other Important Matters](index=118&type=section&id=8.18%20Other%20Important%20Matters) There were no other important matters to report - There were no other important matters to report[552](index=552&type=chunk) [Notes to Main Items of the Parent Company's Financial Statements](index=118&type=section&id=8.19%20Notes%20to%20Main%20Items%20of%20the%20Parent%20Company's%20Financial%20Statements) This section details key items in the parent company's financial statements, including receivables and long-term equity investments Parent Company Bad Debt Provision for Accounts Receivable | Bad Debt Provision | Balance at Jan 1, 2025 (RMB) | Current Period Provision (RMB) | Balance at Jun 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | | Stage 1: 12-month ECL | 83,885.40 | -83,885.40 | 0.00 | Parent Company Other Receivables by Nature | Nature of Funds | Closing Book Balance (RMB) | Opening Book Balance (RMB) | | :--- | :--- | :--- | | Petty Cash | 1,829.97 | 5,637.94 | | Loans | 247,117,874.90 | 249,794,170.25 | | Deposits | 198,720.36 | 234,098.16 | | Others | 14,547.98 | 14,547.98 | | **Total** | **247,332,973.21** | **250,048,454.33** | Parent Company Bad Debt Provision for Other Receivables | Bad Debt Provision | Balance at Jan 1, 2025 (RMB) | Current Period Provision (RMB) | Balance at Jun 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | | Stage 1: 12-month ECL | 71,238.74 | 28,212.99 | 99,451.73 | | Stage 3: Lifetime ECL (Credit-impaired) | 232,683,154.49 | 15,566.98 | 232,698,721.47 | | **Total** | **232,754,393.23** | **43,779.97** | **232,798,173.20** | Parent Company Investments in Subsidiaries | Investee | Opening Balance (Book Value) (RMB) | Closing Balance (Book Value) (RMB) | Closing Impairment Provision (RMB) | | :--- | :--- | :--- | :--- | | Dongguan New Oriental | 73,434,900.00 | 73,434,900.00 | 0.00 | | Shanghai Guanfeng | 0.00 | 0.00 | 225,000,000.00 | | Shanghai Hongzhu | 0.00 | 0.00 | 150,000,000.00 | | **Total** | **73,434,900.00** | **73,434,900.00** | **375,000,000.00** | [Supplementary Information](index=123&type=section&id=8.20%20Supplementary%20Information) This section provides details on non-recurring items and key performance indicators such as return on net assets and earnings per share Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -8,063.80 | Loss on disposal of fixed assets, not sustainable | | Government Grants Recognized in Current Profit/Loss | 142,834.92 | Amortization of deferred income, not sustainable | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities Held by Non-financial Enterprises | 185,420.24 | Fair value changes and disposal gains on bank wealth management products, not sustainable | | Other Non-operating Income and Expenses | -4,145,039.45 | Mainly provisions for non-operating expenses related to investor litigation, not sustainable | | **Total** | **-3,824,848.09** | | Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | -48.74% | -0.0215 | -0.0215 | | Net profit attributable to common shareholders after deducting non-recurring items | -14.05% | -0.127 | -0.127 | [Section 9 Other Submitted Data](index=125&type=section&id=Section%209%20Other%20Submitted%20Data) [Other Major Social Safety Issues](index=12

Core Viewpoint - The A-share market shows a slight decline with the Shanghai Composite Index at 3868.00 points, just above the annual line, indicating a stable market condition despite a minor drop of -0.01% [1] Group 1: Market Performance - As of 10:29 AM today, the total trading volume of A-shares reached 12,533.34 billion yuan [1] - A total of 11 A-shares have surpassed the annual line today, with notable stocks showing significant deviation rates [1] Group 2: Stocks with Significant Deviation Rates - The stock "数字人" (Digital Person) has the highest deviation rate at 14.22%, with a daily increase of 18.40% and a turnover rate of 21.30% [1] - "*ST万方" (ST Wan Fang) follows with a deviation rate of 4.60%, a daily increase of 4.94%, and a turnover rate of 1.88% [1] - "传音控股" (Transsion Holdings) has a deviation rate of 3.85%, with a daily increase of 5.71% and a turnover rate of 0.83% [1] Group 3: Stocks with Minor Deviation Rates - "蒙草生态" (Mengcao Ecology) has a minimal deviation rate of 0.02%, with a daily increase of 0.86% and a turnover rate of 3.71% [1] - "*ST海源" (ST Haiyuan) shows a deviation rate of 0.21%, with a daily increase of 2.77% and a turnover rate of 4.68% [1] - "ST立方" (ST Cube) has a deviation rate of 0.16%, with a daily increase of 4.88% and a turnover rate of 5.88% [1]

Core Viewpoint - The A-share market shows positive momentum with the Shanghai Composite Index closing at 3881.07 points, up 0.33%, and a total trading volume of 1.746 trillion yuan, indicating a strong market performance [1] Group 1: Market Performance - The Shanghai Composite Index is above the annual line, reflecting a bullish trend in the market [1] - A total of 14 A-shares have surpassed the annual line today, with notable stocks including Digital Human, Transsion Holdings, and *ST Wan Fang showing significant deviation rates [1] Group 2: Stock Highlights - Digital Human has the highest deviation rate at 13.78%, with a daily increase of 17.94% and a turnover rate of 23.13% [1] - Transsion Holdings follows with a deviation rate of 3.42%, a daily increase of 5.27%, and a turnover rate of 1.02% [1] - *ST Wan Fang has a deviation rate of 2.05%, with a daily increase of 2.36% and a turnover rate of 4.96% [1] Group 3: Additional Stock Data - Other stocks with notable performance include Jing Sheng Electric (1.90% deviation), *ST Bo Guo (1.56% deviation), and Jia You International (1.50% deviation) [1] - Stocks like ST Hongda and Hunan YN show minimal deviation rates of 1.08% and 0.29% respectively, indicating they have just crossed the annual line [1]

Core Points - The report details a share transfer within Shanghai Hongda New Materials Co., Ltd, where Jiangsu Weilen Investment Management Co., Ltd transferred 97,410,619 shares, representing 22.52% of the total share capital, to Zhu Enwei, the actual controller of the company [1][12][31] - The share transfer does not change the actual control of the company, and Zhu Enwei remains the controlling shareholder [8][12] - The transfer price for the shares was set at RMB 2.717 per share, totaling RMB 264,664,651.82 [12] Group 1: Shareholding Changes - Before the transfer, Zhu Enwei held 0 shares, while Jiangsu Weilen held 125,735,743 shares (29.07% of total shares) [10][31] - After the transfer, Zhu Enwei holds 97,410,619 shares (22.52%), and Jiangsu Weilen holds 28,325,124 shares (6.55%) [8][10] - The total shares held by Zhu Enwei and his concerted actors remain unchanged at 129,072,795 shares (29.85%) [10][31] Group 2: Legal and Regulatory Compliance - The report was prepared in accordance with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China [2] - The information disclosing party has confirmed that the report does not contain any false records or misleading statements [3][20] - There are no plans for significant changes to the company's main business or asset structure in the next 12 months [14][15] Group 3: Future Plans and Governance - There are currently no plans for changes to the board of directors or senior management of the company [14] - The company does not plan to adjust its dividend policy or make significant changes to its employee hiring practices [15][14] - The actual control of the company remains unchanged, ensuring its independent operation and governance structure [16]

Core Viewpoint - The announcement details the termination of a previous share transfer and the initiation of a new share transfer involving the controlling shareholder change at Shanghai Hongda New Materials Co., Ltd. Group 1: Share Transfer Details - Jiangsu Weilen Investment Management Co., Ltd. plans to transfer 97,410,619 shares, representing 22.52% of the total share capital, to the actual controller Zhu Enwei [1][2][3] - The share transfer will not change the actual controller of the company, which will remain Zhu Enwei, while the controlling shareholder will change from Jiangsu Weilen to Zhu Enwei [3][6] - The share transfer is classified as a transfer under the same control and does not involve market buy or sell actions [3][6] Group 2: Shareholding Changes - After the completion of the share transfer, Zhu Enwei and his concerted actors will hold a total of 129,072,795 shares, accounting for 29.85% of the total share capital [3][4] - The shareholding structure before and after the transfer indicates an increase in Zhu Enwei's holdings from 0 to 97,410,619 shares, while Jiangsu Weilen's holdings will decrease from 125,735,743 shares to 28,325,124 shares [4][5] Group 3: Financial Terms of the Transfer - The transfer price per share is set at RMB 2.717, totaling RMB 264,664,651.82 for the entire share transfer [5] - Payment for the shares is to be made within one month after the completion of the share transfer registration [5] Group 4: Impact on the Company - The change in controlling shareholder is not expected to lead to significant changes in the company's main business or adversely affect its financial condition [6] - The company will maintain its independence and there are no indications of harm to the interests of the company or minority investors [6]

Group 1: Company Performance - WuXi AppTec reported a net profit of 8.561 billion yuan for the first half of the year, a year-on-year increase of 101.92% [1] - The company's revenue for the first half reached 20.799 billion yuan, reflecting a growth of 20.64% year-on-year [1] - WuXi AppTec plans to distribute a cash dividend of 3.5 yuan per share to all shareholders [1] - The company has revised its revenue forecast for the full year to between 42.5 billion and 43.5 billion yuan [1] - SANY Heavy Industry plans to issue non-financial corporate debt financing tools not exceeding 20 billion yuan to optimize its financing structure [1] Group 2: Film Industry Impact - Happiness Blue Sea announced that the film "Nanjing Photo Studio" has surpassed 412 million yuan in cumulative box office, exceeding 50% of the company's audited revenue for the most recent fiscal year [2] - The film's impact on the company's revenue is currently negligible as it is still in theaters [2] Group 3: Corporate Actions - Zhonghua Equipment plans to issue shares to acquire 100% equity of two companies, marking a significant asset restructuring [2] - Dahua Intelligent is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure [3] - Shiming Technology's actual controller and chairman has been placed under detention due to personal matters unrelated to the company [4] Group 4: Financial Performance - Ju Chen Co. reported a net profit growth of 43.5% for the first half of the year [6] - Qizheng Tibetan Medicine's net profit increased by 9.94% year-on-year [6] - China Minmetals' new contract value decreased by 19.1% year-on-year [6] - Huicheng Environmental's net profit declined by 85.63% year-on-year [6] Group 5: Mergers and Acquisitions - Kaishan Holdings plans to acquire a minority stake in SMGP for 3 million USD [6] - Zhonghua International intends to purchase 100% equity of Nantong Xingchen Composite Materials Co., Ltd. [6] - Xiangdian Co. plans to acquire a 12.5% stake in Tongda Electromagnetic Energy for 208 million yuan [6]