Group 1: Company Performance - KAILI Medical's overseas sales revenue for the first half of 2025 is expected to remain flat compared to the same period last year, primarily due to a high base effect from the previous year [1] - SANWEI Chemical achieved total operating revenue of 1.25 billion yuan in the first half of 2025, a year-on-year increase of 21.81%, with net profit rising by 42.54% to 120.36 million yuan [1] - XIGAO Institute's proposed dividend for the first half of 2025 is 73.13 million yuan, with a payout ratio of 55.11% [2] - HONGSHENG Huayuan reported a revenue of 4.905 billion yuan for the first half of 2025, a decrease of 4.53%, while net profit increased by 96.30% [3] - MAIPU Medical's overseas sales revenue reached 38.10 million yuan, with significant growth in various product lines, particularly over 100% growth in hemostatic products [4] - DUOLI Technology's revenue grew by 13.15% year-on-year, but net profit declined by 28.13% due to increased competition and costs [5] - TIANRUN Industrial's large horsepower business revenue increased by 40%-50%, with a projected capacity increase of nearly 50% next year [6] - ZHONGKUANG Resources reported operating revenue of 3.27 billion yuan for the first half of 2025, a year-on-year increase of 34.89%, but net profit fell by 81.16% [7] - HUAYANG Group is expanding its international brand client base in automotive electronics, with significant growth in orders for magnesium alloy die-casting products [8] Group 2: Strategic Initiatives - KAILI Medical is focusing on localizing overseas personnel and enhancing new product registrations, particularly for high-end products [1] - SANWEI Chemical is optimizing existing businesses and actively exploring downstream fine chemicals and external expansion opportunities [1] - XIGAO Institute is advancing its green transformation in response to the "dual carbon" policy and enhancing its competitive edge in the new energy sector [2] - HONGSHENG Huayuan is implementing automation and intelligent manufacturing to improve production processes [3] - MAIPU Medical is pursuing global expansion and has received MDR certification for its hard dura mater medical glue products [4] - DUOLI Technology is preparing for the acquisition of a 52% stake in a company to enhance its industrial layout and internationalization [5] - TIANRUN Industrial is developing electric steering products and exploring new materials and high-end manufacturing [6] - ZHONGKUANG Resources is deepening its resource advantages in lithium battery new energy and expanding its multi-metal mineral resource pool [7] - HUAYANG Group is exploring opportunities in the robotics sector while leveraging its existing technological capabilities [8]

Group 1 - QFI (Qualified Foreign Institutional Investors) has been actively involved in the A-share market, with 263 companies having QFI listed among their top ten shareholders as of the end of Q2 [1][2][3] - Notable companies with significant foreign holdings include Shengyi Technology, China XD Electric, and Oriental Yuhong, with foreign ownership exceeding 10 million shares in 34 stocks [1][3] - Major foreign institutions such as Barclays, UBS, and Goldman Sachs have increased their positions in several A-shares, indicating a strong interest in the market [2][4] Group 2 - Foreign institutional research activity remains high, with a total of 5,644 A-share company investigations conducted by foreign entities this year, covering 4,695 stocks [5][6] - Point72 Asset Management leads in research frequency, conducting 157 investigations, focusing on companies like Xiaogoods City, Huali Group, and Optoelectronics [5][6] - Companies such as Huichuan Technology and Mindray Medical have attracted significant foreign interest, with 525 and 299 foreign institutional investigations respectively [6] Group 3 - Morgan Stanley Fund expresses optimism in three key investment areas: technology growth sectors like AI and semiconductors, high-quality enterprises in Chinese manufacturing, and new consumer sectors with strong domestic and overseas performance [6]

Core Viewpoint - The financial performance of JuLi Culture (002247) for the first half of 2025 shows significant declines in revenue and net profit, indicating challenges in market demand and operational efficiency [1]. Financial Performance Summary - Total revenue for the first half of 2025 was 365 million yuan, a decrease of 12.23% year-on-year [1]. - Net profit attributable to shareholders was 23.65 million yuan, down 89.34% compared to the previous year [1]. - In Q2 2025, total revenue was 207 million yuan, reflecting an 8.61% decline year-on-year [1]. - Q2 net profit attributable to shareholders was 19.13 million yuan, a decrease of 91.64% year-on-year [1]. - The gross profit margin improved to 21.86%, an increase of 5.06% year-on-year, while the net profit margin fell to 6.22%, down 88.32% [1]. - Total operating expenses (sales, management, and financial expenses) amounted to 45.19 million yuan, accounting for 12.4% of revenue, which is an increase of 2.76% year-on-year [1]. Balance Sheet Highlights - Accounts receivable stood at 178 million yuan, a decrease of 7.01% year-on-year, but accounted for 81.43% of net profit, indicating a high level of receivables relative to profitability [1][8]. - Cash and cash equivalents increased to 267 million yuan, a rise of 6.70% year-on-year [1]. - Interest-bearing debt rose significantly to 8.28 million yuan, an increase of 185.96% year-on-year [1]. Cash Flow Analysis - Operating cash flow per share was -0.01 yuan, an improvement of 70.27% year-on-year [1]. - The net cash flow from operating activities increased due to reduced payments for materials [7]. - The net cash flow from investing activities rose by 91.28% due to prior year payments related to legal settlements [7]. Operational Insights - The decline in revenue was attributed to reduced market demand and a decrease in order volume [4]. - The decrease in operating costs was 13.39%, driven by lower revenue and raw material prices [5]. - Sales expenses decreased by 20.46%, primarily due to lower employee compensation and exhibition costs [6].

Core Insights - Jule Culture (002247.SZ) released its semi-annual report for 2025 on August 21, 2025, indicating a significant institutional investment presence [1] Institutional Holdings - As of August 20, 2025, five institutional investors disclosed holdings in Jule Culture A-shares, totaling 122 million shares, which represents 14.37% of the company's total equity [1] - The institutional investors include Tibet Enhe Construction Engineering Co., Ltd., Suzhou Jule Huying Investment Management Center (Limited Partnership), Zhejiang Dilong Holdings Co., Ltd., BARCLAYS BANK PLC, and Ningbo Jieyu Tao Investment Management Partnership (Limited Partnership) [1] - The total institutional holding percentage increased by 1.32 percentage points compared to the previous quarter [1] Foreign Investment - In terms of foreign investment, one new foreign institution disclosed its holdings this period, namely BARCLAYS BANK PLC [1]

Core Insights - The company, 聚力文化, reported a revenue of 364,574,110.66 yuan for the first half of 2025, indicating its financial performance during this period [2] - The net profit attributable to shareholders of the listed company was 23,653,688.55 yuan, reflecting its profitability [2] Financial Performance - Revenue for the first half of 2025 reached approximately 364.57 million yuan [2] - The net profit for the same period was around 23.65 million yuan [2]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, indicating potential challenges in its financial performance [1] Financial Performance - The company achieved an operating revenue of 365 million yuan, a year-on-year decrease of 12.23% [1] - The net profit attributable to shareholders was 23.65 million yuan, reflecting a year-on-year decline of 89.34% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 22.60 million yuan, showing a year-on-year increase of 34.99% [1] - The basic earnings per share were 0.0278 yuan [1]

浙江聚力文化发展股份有限公司 2025 年半年度财务报告 浙江聚力文化发展股份有限公司 2025 年半年度财务报告 2025 年 8 月 1 浙江聚力文化发展股份有限公司 2025 年半年度财务报告 浙江聚力文化发展股份有限公司 2025 年半年度财务报告 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。 二、财务报表 财务附注中报表的单位为：元 1、合并资产负债表 编制单位：浙江聚力文化发展股份有限公司 2025 年 06 月 30 日 单位：元 | 项目 | 期末余额 | 期初余额 | | --- | --- | --- | | 流动资产： | | | | 货币资金 | 266,611,761.22 | 293,750,964.81 | | 结算备付金 | | | | 拆出资金 | | | | 交易性金融资产 | | | | 衍生金融资产 | | | | 应收票据 | | | | 应收账款 | 177,523,779.95 | 81,502,137.67 | | 应收款项融资 | 16,068,103.03 | 52,957,129.33 | | 预付款项 | 3,866,30 ...

浙江聚力文化发展股份有限公司 2025 年半年度非经营性资金占用及其他关联资金往来情况汇总表 单位：万元 注：①表中非经营性占用部分，关联方范围依照《股票上市规则》确定。 ②无控股股东、实际控制人的公司，存在第一大股东或第一大股东关联人非经营性占用资金的，也应填写本表非经营性占用部分。 | 非经营性资金占用 | 资金占用方名称 | 占用方与上市公司 | 上市公司核算的会 | 年期初占 2025 | 年 月占用累计 2025 1-6 | 2025 年 月占用 2025 1-6 | 年 1-6 月 年 2025 偿还累计发生 | 月末 6 | 占用形成 | 占用性质 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 的关联关系 | 计科目 | 用资金余额 | 发生金额（不含利息） | 资金的利息（如有） | 金额 | 占用资金余额 | 原因 | | | 控股股东、实际控制人及其附属企业 | | | | | | | | | | | | 小计 | - | - | - | | | | | | | - | | 前控股股东 ...

Core Viewpoint - The company reported a significant decline in both revenue and net profit for the first half of 2025 compared to the previous year [2] Financial Performance - The company's operating revenue for the first half of 2025 was approximately 365 million yuan, representing a year-on-year decrease of 12.23% [2] - The net profit attributable to shareholders was around 23.65 million yuan, reflecting a substantial year-on-year decline of 89.34% [2] - The basic earnings per share were 0.0278 yuan, which also decreased by 89.34% year-on-year [2]

[Section 1 Important Notes, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%H%92%8C%E9%87%8A%E4%B9%89) [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board and management guarantee the report's authenticity and assume legal liability, with no planned profit distribution for the period - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[4](index=4&type=chunk) - Company head Wang Bingyi and chief accountant Du Xiqi declare the financial reports are true, accurate, and complete[4](index=4&type=chunk) - The company **does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital**[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) The report's directory lists nine main sections, providing comprehensive navigation for investors - The report contains nine main sections, featuring a complete structure for easy reference[8](index=8&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms used in the report to ensure accurate reader comprehension - This section clarifies the definitions of key terms such as the company, subsidiaries, regulatory bodies, and the reporting period[12](index=12&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Zhejiang Juli Culture Development Co, Ltd is listed on the Shenzhen Stock Exchange under the stock code 002247 Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Ticker | Juli Culture | | Stock Code | 002247 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Wang Bingyi | [II. Contact Persons and Methods](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is Wei Xiaojing and the Securities Affairs Representative is Hu Yuting Company Contact Information | Position | Name | Contact Address | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wei Xiaojing | 1958 Huannan Road, Linglong Industrial Zone, Linglong Street, Lin'an District, Hangzhou, Zhejiang | 0571-63818733 | dsh@dilong.cc | | Securities Affairs Representative | Hu Yuting | 1958 Huannan Road, Linglong Industrial Zone, Linglong Street, Lin'an District, Hangzhou, Zhejiang | 0571-63818733 | dsh@dilong.cc | [III. Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's registered address, office address, website, and information disclosure locations remained unchanged during the reporting period - The company's contact information, information disclosure, and filing locations remained unchanged during the reporting period and can be referenced in the 2024 annual report[16](index=16&type=chunk)[17](index=17&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, revenue and net profit declined, but net profit excluding non-recurring items and operating cash flow improved significantly Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Change vs Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 364,574,110.66 | 415,355,987.91 | -12.23% | | Net Profit Attributable to Shareholders | 23,653,688.55 | 221,844,632.63 | -89.34% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 22,601,450.35 | 16,742,906.49 | 34.99% | | Net Cash Flow from Operating Activities | -12,219,123.54 | -41,097,005.88 | 70.27% | | Basic Earnings Per Share (Yuan/share) | 0.0278 | 0.2607 | -89.34% | | Diluted Earnings Per Share (Yuan/share) | 0.0278 | 0.2607 | -89.34% | | Weighted Average Return on Equity | 3.72% | 42.98% | -39.26% | | **End of Current Period** | | **End of Prior Year** | **Change vs End of Prior Year** | | Total Assets | 948,664,044.93 | 930,314,769.02 | 1.97% | | Net Assets Attributable to Shareholders | 646,926,024.05 | 623,272,335.50 | 3.80% | [V. Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) There were no discrepancies in net profit or net assets between Chinese and international accounting standards during the reporting period - The company had **no discrepancies in net profit or net assets** under domestic and foreign accounting standards during the reporting period[19](index=19&type=chunk)[20](index=20&type=chunk) [VI. Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring profit and loss totaled 1.05 million Yuan, primarily from government grants and fair value changes Non-recurring Profit and Loss Items and Amounts for H1 2025 | Item | Amount (Yuan) | Notes | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -37,832.89 | | | Government Grants Included in Current Profit/Loss | 2,163,986.23 | | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets/Liabilities | 985,089.17 | | | Reversal of Impairment Provision for Individually Tested Receivables | 146,113.50 | | | Gains/Losses from Contingent Events Unrelated to Normal Business | -610,259.43 | Investor claim losses | | Other Non-operating Income and Expenses | 621,662.52 | | | Other Items Defined as Non-recurring Profit/Loss | -1,583,749.09 | Guarantee losses | | Less: Income Tax Impact | 632,536.51 | | | Less: Minority Interest Impact (After Tax) | 235.30 | | | **Total** | **1,052,238.20** | | - The company did not reclassify any non-recurring profit and loss items as recurring[23](index=23&type=chunk) [Section 3 Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [I. Principal Business Activities during the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company specializes in decorative surfacing materials, facing market pressures from the real estate downturn but seeing potential from supportive government policies - The company's main business is the R&D, design, production, and sale of mid-to-high-end building decorative surfacing materials, including melamine decorative paper, high-performance decorative panels, and PVC decorative materials[25](index=25&type=chunk) - The company operates on a **"produce-to-order" model** and primarily uses a direct sales model, supplemented by distribution for some products[25](index=25&type=chunk) - As a leading enterprise in the decorative paper sub-industry, the company is positioned in the mid-to-high-end market, leveraging its brand influence, R&D capabilities, and product quality[26](index=26&type=chunk) - In H1 2025, the continued decline in real estate sales area impacted market demand, leading to lower order volumes, reduced average selling prices, and a **12.23% year-on-year decrease in operating revenue**[26](index=26&type=chunk)[28](index=28&type=chunk) - National policies optimizing real estate and encouraging consumption, such as urban village renovation and trade-in programs, may positively impact the company's industry[27](index=27&type=chunk) [II. Core Competitiveness Analysis](index=10&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company maintains a comprehensive competitive edge through its brand, technology, equipment, quality, management, and risk control systems - The company holds a leading position in the industry in terms of brand, technology, equipment, quality, management, and risk control[30](index=30&type=chunk) - Positioned in the mid-to-high-end market, the company possesses a provincial-level high-tech enterprise R&D center, with leading design capabilities and technological processes[30](index=30&type=chunk) - The company continuously updates its production lines and quality inspection equipment to enhance product quality and stability, while strengthening digital marketing and information management[30](index=30&type=chunk)[31](index=31&type=chunk) - A robust business risk management system ensures high contract fulfillment efficiency and sales collection rates[31](index=31&type=chunk) [III. Main Business Analysis](index=10&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Revenue declined due to market demand, but net profit excluding non-recurring items grew 34.99%, while reported net profit fell sharply due to a high base effect from a prior-year settlement Year-on-Year Changes in Key Financial Data | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 364,574,110.66 | 415,355,987.91 | -12.23% | Reduced market demand and lower order volume | | Operating Costs | 284,862,825.82 | 328,917,960.59 | -13.39% | Decrease in operating revenue and raw material prices | | Selling Expenses | 11,662,451.66 | 14,661,772.45 | -20.46% | Decrease in employee compensation and exhibition fees | | Finance Expenses | -1,727,490.73 | -3,461,661.03 | -50.10% | Decrease in deposit interest | | Income Tax Expense | 479,540.14 | 1,469,864.84 | -67.38% | Subsidiaries re-certified as high-tech enterprises, tax rate reduced from 25% to 15% | | Net Cash Flow from Operating Activities | -12,219,123.54 | -41,097,005.88 | 70.27% | Reduced payments for maturing material purchases | | Net Cash Flow from Investing Activities | -13,680,096.10 | -156,792,459.66 | 91.28% | Prior year period included payment for Tencent case settlement | | Other Income | 14,415,028.86 | 10,205,362.27 | 41.25% | Increase in VAT refunds | Operating Revenue Composition (by Product and Region) | Category | Item | Current Period Amount (Yuan) | % of Revenue | Prior Year Period Amount (Yuan) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Product** | Decorative Paper | 149,965,286.99 | 41.13% | 178,198,793.73 | 42.90% | -15.84% | | | Impregnated Paper | 77,194,195.15 | 21.17% | 95,381,140.75 | 22.96% | -19.07% | | | PVC Decorative Materials | 71,289,176.84 | 19.55% | 63,028,926.05 | 15.17% | 13.11% | | | Decorative Paper Panels | 59,140,385.09 | 16.22% | 73,442,056.98 | 17.68% | -19.47% | | **By Region** | Domestic Sales | 292,414,172.01 | 80.21% | 335,887,291.01 | 80.87% | -12.94% | | | Export Sales | 72,159,938.65 | 19.79% | 79,468,696.90 | 19.13% | -9.20% | Gross Margin Changes for Products Accounting for Over 10% of Revenue or Profit | Product | Operating Revenue | Operating Costs | Gross Margin | YoY Revenue Change | YoY Cost Change | YoY Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Decorative Paper | 149,965,286.99 | 106,661,380.69 | 28.88% | -15.84% | -18.94% | 2.72% | | Impregnated Paper | 77,194,195.15 | 67,059,489.59 | 13.13% | -19.07% | -18.70% | -0.39% | | PVC Decorative Materials | 71,289,176.84 | 53,860,425.61 | 24.45% | 13.11% | 12.46% | 0.43% | | Decorative Paper Panels | 59,140,385.09 | 53,899,260.81 | 8.86% | -19.47% | -17.31% | -2.39% | [IV. Non-core Business Analysis](index=12&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-core business activities, including investment income and non-operating items, had a minor and non-sustainable impact on total profit Impact of Non-core Business on Total Profit | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 985,089.17 | 4.26% | Interest income from structured deposits | No | | Non-operating Income | 700,053.10 | 3.02% | Income from disposal of scrapped fixed assets and unpayable accounts | No | | Non-operating Expenses | 716,622.87 | 3.10% | Provision for investor claim losses | No | [V. Analysis of Assets and Liabilities](index=12&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets grew slightly, with a significant increase in accounts receivable due to more lenient credit policies for reliable clients Significant Changes in Asset Composition | Item | End of Period Amount (Yuan) | % of Total Assets | Prior Year-end Amount (Yuan) | % of Total Assets | Change in % | Reason for Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 266,611,761.22 | 28.10% | 293,750,964.81 | 31.58% | -3.48% | No significant change | | Accounts Receivable | 177,523,779.95 | 18.71% | 81,502,137.67 | 8.76% | 9.95% | Lenient credit policies for good-credit customers after year-end collection efforts | | Notes Receivable Financing | 16,068,103.03 | 1.69% | 52,957,129.33 | 5.69% | -4.00% | Notes receivable endorsed to pay accounts payable | | Other Current Assets | 4,012,446.47 | 0.42% | 2,612,276.73 | 0.28% | 0.14% | Increase in prepaid and undeducted taxes | | Other Non-current Assets | 4,213,776.74 | 0.44% | 1,851,781.50 | 0.20% | 0.24% | Increase in prepayments for fixed assets | | Provisions | 4,479,683.55 | 0.47% | 16,262,370.26 | 1.75% | -1.28% | Payment of investor claims during the period | | Minority Interest | 3,931,113.43 | 0.41% | 2,231,419.23 | 0.24% | 0.17% | Capital contribution by minority shareholder of Guangxi Dilong and investment from new minority shareholder in Longyu company | - The company has no major overseas assets or assets and liabilities measured at fair value[43](index=43&type=chunk)[44](index=44&type=chunk) Restricted Assets as of the Reporting Period End | Item | Year-end Book Balance (Yuan) | Year-end Book Value (Yuan) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 11,089,475.61 | 11,089,475.61 | Frozen/Note Deposit | Bank deposit of 15,864.04 Yuan frozen; other cash equivalents of 11,073,611.57 Yuan are bank acceptance bill deposits | | Fixed Assets | 144,254,659.90 | 81,741,449.19 | Mortgage | Mortgage guarantee | | Intangible Assets | 46,720,934.96 | 32,400,021.68 | Mortgage | Mortgage guarantee | | Investment Property | 13,733,569.33 | 9,025,215.02 | Mortgage | Mortgage guarantee | | **Total** | **215,798,639.80** | **134,256,161.50** | | | [VI. Investment Analysis](index=14&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company did not engage in any significant equity, non-equity, securities, or derivatives investments during the reporting period - The company had **no significant equity investments, non-equity investments, securities investments, derivatives investments, or use of raised funds** during the reporting period[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [VII. Sale of Major Assets and Equity](index=14&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) No major assets or equity were sold by the company during the reporting period - The company did not sell any major assets or equity during the reporting period[47](index=47&type=chunk)[48](index=48&type=chunk) [VIII. Analysis of Major Subsidiaries and Investees](index=15&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The main subsidiary, Dilong New Materials, reported total assets of 1.52 billion Yuan and net profit of 33.94 million Yuan Financial Data of Main Subsidiary Dilong New Materials | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dilong New Materials | Subsidiary | Production and sale of melamine decorative paper, high-performance decorative panels, decorative material printing, etc | 60,000,000 | 1,516,005,883.67 | 1,261,723,226.92 | 364,574,110.66 | 33,830,503.07 | 33,944,652.59 | - The company did not acquire or dispose of any subsidiaries during the reporting period[50](index=50&type=chunk) [IX. Structured Entities Controlled by the Company](index=15&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not have any controlled structured entities during the reporting period - The company did not have any controlled structured entities during the reporting period[51](index=51&type=chunk) [X. Risks and Countermeasures](index=15&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from market competition, policy changes, and investor claims, which it mitigates through R&D, customer optimization, and prudent decision-making - The company faces operational risks including **intensified market competition, macroeconomic and industry policy adjustments, raw material price volatility, and the impact of international situations on exports**[51](index=51&type=chunk) - The company addresses operational risks through continuous R&D investment, customer structure optimization, heightened market sensitivity, policy monitoring, and stable relationships with suppliers and customers[51](index=51&type=chunk) - The company faces investor claim risks and has **accrued a provision for losses of 51.02 million Yuan**, with 49.34 million Yuan already paid out[53](index=53&type=chunk) [XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=16&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system or disclosed a valuation enhancement plan[55](index=55&type=chunk) [XII. Implementation of the "Dual Enhancement of Quality and Returns" Action Plan](index=16&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding the "Dual Enhancement of Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Enhancement of Quality and Returns" action plan[55](index=55&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=17&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) [I. Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, Liu Yulong was elected as an independent director, while four other directors and supervisors left upon term completion Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Liu Yulong | Independent Director | Elected | 2025-05-21 | Change of term | | Liu Meijuan | Independent Director | Term expired | 2025-05-21 | Change of term | | Chen Min | Supervisor | Term expired | 2025-05-21 | Change of term | | Yu Xiaoxia | Supervisor | Term expired | 2025-05-21 | Change of term | | Zhang Haifeng | Supervisor | Term expired | 2025-05-21 | Change of term | [II. Profit Distribution and Capitalization of Capital Reserves for the Reporting Period](index=17&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company does not plan to distribute cash dividends, issue bonus shares, or capitalize capital reserves for the first half of the year - The company plans **not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital** for the first half of the year[58](index=58&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=17&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans, employee stock ownership 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[59](index=59&type=chunk) [IV. Environmental Information Disclosure](index=17&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its four main subsidiaries are included in the list of enterprises required to disclose environmental information by law - The company and its four main subsidiaries are included in the list of enterprises required to disclose environmental information by law[60](index=60&type=chunk) [V. Social Responsibility](index=17&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by protecting stakeholder rights, promoting environmental sustainability, and contributing to public welfare - The company strictly adheres to laws and regulations, perfects its corporate governance structure, and ensures timely, truthful, accurate, complete, and fair information disclosure to protect shareholder and investor rights[62](index=62&type=chunk) - Adhering to a "people-oriented" philosophy, the company protects employees' legal rights, continuously improves human resource management, provides systematic talent development, and prioritizes production safety and labor protection[62](index=62&type=chunk) - The company upholds the principle of honesty and trustworthiness, establishing strategic partnerships with suppliers and customers to ensure the protection of all parties' legal rights[63](index=63&type=chunk) - The company highly values environmental protection, implementing full-process clean management, promoting green development, and its subsidiaries have built distributed photovoltaic power generation projects, generating a total of **3.47 million kWh** in H1 2025[63](index=63&type=chunk) - The company complies with tax laws, actively participates in social welfare initiatives, and provides employment opportunities for persons with disabilities[64](index=64&type=chunk) [Section 5 Significant Matters](index=19&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [I. Commitments Fulfilled or Overdue by Relevant Parties](index=19&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) Several parties failed to fulfill performance compensation commitments, while non-compete and concerted action agreements remain in effect - Yu Haifeng, Suzhou Juli Huying Investment Management Center (Limited Partnership), and Huofeng Tianxiang Technology (Beijing) Co, Ltd **failed to fulfill performance compensation commitments**, with their restricted shares being judicially auctioned or remaining under restriction[67](index=67&type=chunk) - The Shenzhen Stock Exchange has issued a **public censure** to the parties who failed to fulfill their performance compensation commitments[68](index=68&type=chunk) - The non-compete commitments from shareholders Zhejiang Dilong Holding Co, Ltd, Jiang Feixiong, Jiang Zugong, and Jiang Liqin are being duly fulfilled[67](index=67&type=chunk) - Jiang Zugong, Bu Jingjing, Jiang Feixiong, Jiang Xiaowen, Jiang Liqin, and Zhejiang Dilong Holding Co, Ltd continue to act in concert[67](index=67&type=chunk) [II. Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties](index=20&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating fund occupation by controlling shareholders or other related parties during the reporting period - The company had **no non-operating fund occupation** by controlling shareholders or other related parties during the reporting period[69](index=69&type=chunk) [III. Irregular External Guarantees](index=20&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had **no irregular external guarantees** during the reporting period[70](index=70&type=chunk) [IV. Appointment and Dismissal of Accounting Firm](index=20&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report has not been audited - The company's semi-annual financial report has **not been audited**[71](index=71&type=chunk) [V. Board's Explanation of "Non-standard Audit Report" for the Current Period](index=20&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) No "non-standard audit report" was issued by the accounting firm for the reporting period - No "non-standard audit report" was issued by the accounting firm for the reporting period[72](index=72&type=chunk) [VI. Board's Explanation of "Non-standard Audit Report" from the Previous Year](index=20&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) There is no explanation regarding a "non-standard audit report" from the previous year - There is no explanation regarding a "non-standard audit report" from the previous year[72](index=72&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=21&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not undergo any bankruptcy or reorganization proceedings during the reporting period - The company did not undergo any bankruptcy or reorganization proceedings during the reporting period[72](index=72&type=chunk) [VIII. Litigation Matters](index=21&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company is managing two major lawsuits through a settlement agreement and ongoing mediation, while other minor subsidiary lawsuits are not expected to have a material impact Significant Litigation and Arbitration | Case Details | Amount Involved (10k Yuan) | Provision Made | Progress | Ruling and Impact | Execution Status | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shizuishan Bank financial loan dispute against Suzhou Qisimiaoxiang, the company, and Yu Haifeng | 3,000 | Yes | Second-instance judgment issued by Ningxia Higher People's Court | The original judgment was upheld; the company bears joint and several liability | The company signed a settlement agreement with the bank on July 24, 2025, which is currently being executed | 2025-07-25 | Announcement on Settlement Agreement with Shizuishan Bank (2025-017) | | Securities misrepresentation liability dispute | 80.09 | Yes | Second-instance judgment issued by Zhejiang Higher People's Court | The original judgment was upheld; a provision has been made, and no material impact on current or future profits is expected | The case has been fully executed | 2024-04-25 | Announcement on Litigation Progress (2024-012) | - The subsidiary Dilong New Materials and its subsidiaries are involved in several minor lawsuits that are not expected to have a material impact on the company's performance[73](index=73&type=chunk) [IX. Penalties and Rectifications](index=22&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company was not subject to any penalties or rectifications during the reporting period - The company was not subject to any penalties or rectifications during the reporting period[74](index=74&type=chunk) [X. Integrity of the Company, its Controlling Shareholders, and Actual Controller](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) There were no integrity issues concerning the company, its controlling shareholders, or actual controller during the reporting period - There were no integrity issues concerning the company, its controlling shareholders, or actual controller during the reporting period[75](index=75&type=chunk) [XI. Major Related-Party Transactions](index=22&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) No major related-party transactions related to daily operations, asset acquisitions, investments, or debt occurred during the reporting period - No related-party transactions related to daily operations occurred during the reporting period[75](index=75&type=chunk) - No related-party transactions involving the acquisition or sale of assets or equity occurred during the reporting period[76](index=76&type=chunk) - No joint external investments with related parties occurred during the reporting period[77](index=77&type=chunk) - There were no related-party credit or debt transactions during the reporting period[78](index=78&type=chunk) - The company had no deposits, loans, credit lines, or other financial business with related financial companies[79](index=79&type=chunk)[80](index=80&type=chunk) - There were no other major related-party transactions during the reporting period[81](index=81&type=chunk) [XII. Major Contracts and Their Performance](index=23&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company has an outstanding external guarantee balance of 47.1 million Yuan, primarily related to a joint liability guarantee for Suzhou Qisimiaoxiang - The company had no custody, contracting, leasing, or entrusted wealth management arrangements during the reporting period[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[88](index=88&type=chunk) Company and Subsidiary External Guarantees | Guaranteed Party | Guarantee Limit (10k Yuan) | Actual Date | Actual Amount (10k Yuan) | Guarantee Type | Guarantee Period | Completed | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Qisimiaoxiang | 3,000 | 2019-06-26 | 3,000 | Joint and several liability | Two years from the loan maturity date under the main contract | No | No | | Guangxi Dilong | 500 | 2024-11-29 | 500 | Joint and several liability | Three years from the debt maturity date | No | No | | **Total Outstanding External Guarantee Balance at Period End** | | | **4,709.45** | | | | | | **Total Actual Guarantee Amount as a % of Net Assets** | | | **8.05%** | | | | | - The previous guarantee for Suzhou Qisimiaoxiang has been converted into a direct external guarantee by the company, with losses recognized based on estimated potential liabilities[87](index=87&type=chunk) - There were no other major contracts during the reporting period[89](index=89&type=chunk) [XIII. Explanation of Other Significant Matters](index=24&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) There were no other significant matters requiring explanation during the reporting period - There were no other significant matters requiring explanation during the reporting period[90](index=90&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=25&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[91](index=91&type=chunk) [Section 6 Share Capital Changes and Shareholder Information](index=26&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [I. Share Capital Changes](index=26&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total share capital remained unchanged at 850,870,049 shares, with no changes in restricted or unrestricted shares during the period Share Capital Changes | Item | Pre-change Quantity (shares) | Pre-change Ratio | Change (+, -) | Post-change Quantity (shares) | Post-change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 207,329,377 | 24.37% | 0 | 207,329,377 | 24.37% | | Of which: Domestic corporate holdings | 78,195,959 | 9.19% | 0 | 78,195,959 | 9.19% | | Domestic individual holdings | 129,133,418 | 15.18% | 0 | 129,133,418 | 15.18% | | II. Unrestricted Shares | 643,540,672 | 75.63% | 0 | 643,540,672 | 75.63% | | Of which: RMB ordinary shares | 643,540,672 | 75.63% | 0 | 643,540,672 | 75.63% | | III. Total Shares | 850,870,049 | 100.00% | 0 | 850,870,049 | 100.00% | - During the reporting period, the company's **total share count, number of restricted shares, and number of unrestricted shares remained unchanged**[94](index=94&type=chunk) - The company had no share repurchases or reductions of repurchased shares via centralized bidding during the reporting period[95](index=95&type=chunk) [II. Securities Issuance and Listing](index=27&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company did not issue or list any securities during the reporting period - The company did not issue or list any securities during the reporting period[95](index=95&type=chunk) [III. Number of Shareholders and Shareholding Status](index=27&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the period end, the company had 28,121 shareholders, with the largest shareholder, Jiang Zugong, holding a 10.09% stake - The total number of ordinary shareholders at the end of the reporting period was **28,121**[96](index=96&type=chunk) Shareholdings of Top 10 Shareholders or Those Holding Over 5% | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiang Zugong | Domestic Individual | 10.09% | 85,836,363 | 66,436,363 | 19,400,000 | N/A | | Tibet Enhe Construction Engineering Co, Ltd | Domestic Non-state-owned Corp | 5.88% | 50,000,000 | 50,000,000 | 0 | N/A | | Bu Jingjing | Domestic Individual | 5.00% | 42,550,000 | 0 | 42,550,000 | N/A | | Suzhou Juli Huying Investment Management Center (LP) | Domestic Non-state-owned Corp | 3.31% | 28,195,959 | 28,195,959 | 0 | Pledged: 28,190,000; Frozen: 28,195,959 | | Yu Haifeng | Domestic Individual | 1.65% | 14,000,000 | 14,000,000 | 0 | Pledged: 14,000,000; Frozen: 14,000,000 | - Jiang Zugong, Bu Jingjing, Jiang Feixiong, Jiang Xiaowen, Zhejiang Dilong Holding Co, Ltd, and Jiang Liqin are parties acting in concert[97](index=97&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=28&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were **no changes** in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[98](index=98&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=29&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[99](index=99&type=chunk) - The company's actual controller did not change during the reporting period[99](index=99&type=chunk) [VI. Preferred Stock Information](index=29&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred stock during the reporting period - The company had no preferred stock during the reporting period[100](index=100&type=chunk) [Section 7 Bond-related Matters](index=30&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Bond-related Matters](index=30&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[102](index=102&type=chunk) [Section 8 Financial Report](index=31&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [I. Audit Report](index=31&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report has not been audited - The company's semi-annual financial report has **not been audited**[104](index=104&type=chunk) [II. Financial Statements](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the consolidated and parent company financial statements for the first half of 2025 [1. Consolidated Balance Sheet](index=31&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were 949 million Yuan, a 1.97% increase from the beginning of the year - As of June 30, 2025, the company's consolidated total assets were **948,664,044.93 Yuan**, an increase of 1.97% from the beginning of the year[109](index=109&type=chunk) - Total equity attributable to parent company shareholders was **646,926,024.05 Yuan**, an increase of 3.80% from the beginning of the year[109](index=109&type=chunk) [2. Parent Company Balance Sheet](index=34&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were 587 million Yuan, with total equity at -24.03 million Yuan - As of June 30, 2025, the parent company's total assets were **586,986,551.29 Yuan**[113](index=113&type=chunk) - The parent company's long-term equity investments amounted to **561,920,160.08 Yuan**[111](index=111&type=chunk) - The parent company's total shareholders' equity was **-24,031,310.02 Yuan**[113](index=113&type=chunk) [3. Consolidated Income Statement](index=37&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For H1 2025, consolidated revenue was 365 million Yuan, with net profit attributable to shareholders down 89.34% due to a high base effect - In H1 2025, the company's consolidated total operating revenue was **364,574,110.66 Yuan**, a year-on-year decrease of 12.23%[114](index=114&type=chunk) - Net profit attributable to parent company shareholders was **23,653,688.55 Yuan**, a year-on-year decrease of 89.34%[115](index=115&type=chunk) - Basic earnings per share was **0.0278 Yuan**[116](index=116&type=chunk) [4. Parent Company Income Statement](index=39&type=section&id=4%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For H1 2025, the parent company recorded revenue of 0.88 million Yuan and a net loss of 10.97 million Yuan - In H1 2025, the parent company's operating revenue was **881,081.18 Yuan**, a year-on-year decrease of 59.94%[117](index=117&type=chunk) - The parent company's net loss was **-10,968,404.79 Yuan**[118](index=118&type=chunk) [5. Consolidated Cash Flow Statement](index=40&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2025, net cash flow from operating and investing activities improved significantly, resulting in a net decrease in cash of 23.47 million Yuan - Net cash flow from operating activities was **-12,219,123.54 Yuan**, a 70.27% improvement year-on-year[121](index=121&type=chunk) - Net cash flow from investing activities was **-13,680,096.10 Yuan**, a 91.28% improvement year-on-year, mainly due to the payment of the Tencent case settlement in the prior year period[121](index=121&type=chunk) - The net increase in cash and cash equivalents was **-23,470,866.85 Yuan**[122](index=122&type=chunk) [6. Parent Company Cash Flow Statement](index=42&type=section&id=6%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For H1 2025, the parent company's net cash flow was negative from operating and investing activities but positive from financing activities - The parent company's net cash flow from operating activities was **-5,895,545.94 Yuan**[123](index=123&type=chunk) - The parent company's net cash flow from investing activities was **-12,392,946.14 Yuan**[124](index=124&type=chunk) - The parent company's net cash flow from financing activities was **18,310,054.63 Yuan**[124](index=124&type=chunk) [7. Consolidated Statement of Changes in Shareholders' Equity](index=44&type=section&id=7%E3%80%81%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2025, consolidated total equity increased by 25.35 million Yuan, primarily driven by the period's net profit - As of June 30, 2025, the company's consolidated total shareholders' equity was **650,857,137.48 Yuan**, an increase of 25,353,382.75 Yuan from the beginning of the year[127](index=127&type=chunk) - Equity attributable to parent company shareholders was **646,926,024.05 Yuan**, an increase of 23,653,688.55 Yuan from the beginning of the year[127](index=127&type=chunk) [8. Parent Company Statement of Changes in Shareholders' Equity](index=48&type=section&id=8%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2025, the parent company's total equity decreased by 10.97 million Yuan due to the net loss for the period - As of June 30, 2025, the parent company's total shareholders' equity was **-24,031,310.02 Yuan**, a decrease of 10,968,404.79 Yuan from the beginning of the year[134](index=134&type=chunk) [III. Company Basic Information](index=52&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Zhejiang Juli Culture Development Co, Ltd, listed in 2008, specializes in decorative surfacing materials and its financial statements were approved on August 20, 2025 - The company was listed on the Shenzhen Stock Exchange in 2008 with a registered capital of **850,870,049.00 Yuan**[139](index=139&type=chunk) - The company's main business is the R&D, design, production, and sale of mid-to-high-end decorative surfacing materials[139](index=139&type=chunk) - These financial statements were approved for issuance by the 7th Board of Directors at its 2nd meeting on August 20, 2025[139](index=139&type=chunk) [IV. Basis of Preparation for Financial Statements](index=52&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis, with no material uncertainties affecting the company's continuing operations - The company's financial statements are prepared on a **going concern basis**[140](index=140&type=chunk) - There are no matters or circumstances that cast significant doubt on the company's ability to continue as a going concern for the next 12 months[141](index=141&type=chunk) [V. Significant Accounting Policies and Estimates](index=52&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's key accounting policies and estimates, which are based on enterprise accounting standards and a going concern assumption - The company's financial statements comply with enterprise accounting standards, providing a true and complete view of its financial position, operating results, and cash flows[143](index=143&type=chunk) - The company uses a 12-month period to classify assets and liabilities as current or non-current and uses the RMB as its functional currency[145](index=145&type=chunk)[146](index=146&type=chunk) - The company has disclosed specific accounting policies and estimates for financial instruments, receivables, inventories, fixed assets, intangible assets, and revenue recognition[142](index=142&type=chunk)[154](index=154&type=chunk)[173](index=173&type=chunk)[175](index=175&type=chunk)[193](index=193&type=chunk)[200](index=200&type=chunk)[216](index=216&type=chunk) - There were **no significant changes in accounting policies or estimates**, and no initial adoption of new accounting standards requiring adjustments to the opening financial statements during the reporting period[231](index=231&type=chunk) [VI. Taxes](index=71&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company is subject to various taxes and benefits from preferential tax policies, including reduced rates for high-tech enterprises and small micro-enterprises Main Taxes and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales revenue from goods and taxable services | 3%, 5%, 6%, 9%, 13% (Export rebate rate 13%) | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | | Property Tax | Original value of property or rental income | 1.2%, 12% | | Education Surcharge | Actual turnover tax paid | 3% | | Local Education Surcharge | Actual turnover tax paid | 2% | Taxpayers with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate | | :--- | :--- | | Dilong New Materials Co | 15% | | Haining Dilong Co | 15% | | Chengdu Dilong Co | 15% | | Guangdong Dilong Co | 20% | | Guangxi Dilong Co | 20% | | Longyu New Materials Co | 20% | | All other taxpayers not listed above | 25% | - The company benefits from a **VAT refund policy** for employing persons with disabilities[239](index=239&type=chunk)[240](index=240&type=chunk) - Dilong New Materials, Haining Dilong, and Chengdu Dilong are recognized as high-tech enterprises and are subject to a **preferential income tax rate of 15%**[241](index=241&type=chunk) - Guangdong Dilong, Guangxi Dilong, and Longyu New Materials qualify as small and micro-sized enterprises and are subject to a **corporate income tax rate of 20%**[242](index=242&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=72&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the consolidated financial statements, highlighting significant changes in receivables, provisions, and cash flows - **Cash and cash equivalents** at period-end were 267 million Yuan, a decrease of 9.24% from the beginning of the year[244](index=244&type=chunk) - The book balance of **accounts receivable** at period-end was 203 million Yuan, an increase of 98.91% from the beginning of the year, mainly due to more lenient credit policies for good-credit customers[247](index=247&type=chunk)[41](index=41&type=chunk) - The balance of **notes receivable financing** at period-end was 16.07 million Yuan, a decrease of 69.66% from the beginning of the year, mainly due to the endorsement of notes to pay accounts payable[257](index=257&type=chunk)[42](index=42&type=chunk) - The balance of **provisions** at period-end was 4.48 million Yuan, a decrease of 72.46% from the beginning of the year, mainly due to the payment of investor claims[345](index=345&type=chunk)[42](index=42&type=chunk) - Both **operating revenue and operating costs decreased year-on-year**, with revenue down 12.23% and costs down 13.39%[356](index=356&type=chunk) - Net cash flow from **operating activities** was -12.22 million Yuan, a 70.27% improvement compared to the same period last year[121](index=121&type=chunk) - Net cash flow from **investing activities** was -13.68 million Yuan, a 91.28% improvement compared to the same period last year, mainly due to the payment of the Tencent case settlement in the prior year[121](index=121&type=chunk) [VIII. R&D Expenditure](index=100&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) In H1 2025, the company's total R&D expenditure was 15.21 million Yuan, a decrease of 18.24% year-on-year, with all expenses capitalized R&D Expenditure Composition | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | R&D Personnel Salaries | 8,330,183.20 | 10,104,872.68 | | R&D Materials | 4,231,809.22 | 5,445,686.65 | | Depreciation and Amortization | 1,901,773.00 | 1,959,274.45 | | R&D Energy Costs | 291,429.24 | 367,733.79 | | Others | 452,053.83 | 723,192.25 | | **Total** | **15,207,248.49** | **18,600,759.82** | | Of which: Expensed R&D Expenditure | 15,207,248.49 | 18,600,759.82 | - Total R&D expenditure for H1 2025 **decreased by 18.24% year-on-year** and was fully expensed[417](index=417&type=chunk) [IX. Changes in Consolidation Scope](index=101&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The consolidation scope expanded during the reporting period due to the establishment of a new subsidiary, Longyu New Materials (Zhejiang) Co, Ltd Increase in Consolidation Scope | Company Name | Equity Acquisition Method | Acquisition Date | Capital Contribution (Yuan) | Ownership Ratio | | :--- | :--- | :--- | :--- | :--- | | Longyu New Materials (Zhejiang) Co, Ltd | New Establishment | May 2025 | 12,000,000.00 | 80.00% | [X. Interests in Other Entities](index=101&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company holds interests in 11 subsidiaries engaged in manufacturing and investment, with ownership stakes ranging from 62% to 100% Composition of the Business Group | Subsidiary Name | Registered Capital (Yuan) | Main Operating Location | Registered Location | Business Nature | Direct Ownership (%) | Indirect Ownership (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dilong New Materials Co | 60,000,000.00 | Lin'an | Lin'an | Manufacturing | 100.00% | 0.00% | Establishment | | Langfang Dilong Co | 90,520,000.00 | Langfang | Langfang | Manufacturing | 0.00% | 100.00% | Establishment | | Chengdu Dilong Co | 74,100,000.00 | Chengdu | Chengdu | Manufacturing | 0.00% | 100.00% | Establishment | | Dilong Linyi Co | 88,800,000.00 | Tancheng | Tancheng | Manufacturing | 0.00% | 100.00% | Establishment | | Haining Dilong Co | 60,000,000.00 | Haining | Haining | Manufacturing | 0.00% | 100.00% | Establishment | | Guangdong Dilong Co | 20,000,000.00 | Zhaoqing | Zhaoqing | Manufacturing | 0.00% | 90.00% | Establishment | | Guangxi Dilong Co | 13,000,000.00 | Liuzhou | Liuzhou | Manufacturing | 0.00% | 62.00% | Establishment | | Longyu New Materials Co | 12,000,000.00 | Haining | Haining | Manufacturing | 0.00% | 80.00% | Establishment | | Dilong Equity Investment Co | 100,000,000.00 | Lin'an | Lin'an | Investment | 100.00% | 0.00% | Establishment | | New Juli Media Co | 10,000,000.00 | Suzhou | Suzhou | Gaming | 100.00% | 0.00% | Establishment | | Suzhou Dianwo Co | 10,000,000.00 | Suzhou | Suzhou | Gaming | 0.00% | 100.00% | Establishment | [XI. Government Grants](index=101&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company's deferred income from government grants was 6.59 million Yuan at period-end, with 14.42 million Yuan recognized as other income during the period Liabilities related to Government Grants | Account | Opening Balance (Yuan) | New Grants (Yuan) | Recognized as Non-operating Income (Yuan) | Transferred to Other Income (Yuan) | Other Changes (Yuan) | Closing Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 6,213,910.57 | 1,012,700.00 | 0 | 634,507.78 | 0 | 6,592,102.79 | Asset-related | Government Grants Included in Current Profit/Loss | Account | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Government grants included in other income | 14,415,028.86 | 10,205,362.27 | [XII. Risks Related to Financial Instruments](index=102&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company manages credit, liquidity, and market risks through customer assessments, diverse financing, and active monitoring of its financial instrument portfolio - The company faces **credit risk, liquidity risk, and market risk** (including interest rate and foreign exchange risk)[425](index=425&type=chunk) - Credit risk is managed through customer credit assessments, monitoring of receivables balances, and placing cash with highly-rated financial institutions[427](index=427&type=chunk) - Liquidity risk is controlled by utilizing various financing instruments like notes settlement and bank loans, and by combining long-term and short-term financing appropriately[428](index=428&type=chunk) - Market risk is managed by regularly reviewing and monitoring the financial instrument portfolio, and by trading foreign currencies to control foreign exchange risk exposure[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk) [XIII. Fair Value Disclosure](index=105&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company's assets measured at fair value totaled 16.07 million Yuan, consisting entirely of notes receivable financing valued using Level 3 inputs Fair Value of Assets and Liabilities at Period End | Item | Closing Fair Value (Yuan) | | :--- | :--- | | Notes Receivable Financing | 16,068,103.03 | | **Total Assets Continuously Measured at Fair Value** | **16,068,103.03** | - The company's notes receivable financing consists of bank acceptance bills with low credit risk and short remaining terms; their fair value is determined by their face value, using Level 3 fair value measurement[436](index=436&type=chunk) [XIV. Related Parties and Transactions](index=105&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's actual controller is Jiang Feixiong, and related-party transactions during the period included rental income and compensation for key management personnel - The company's controlling shareholder and actual controller is **Jiang Feixiong**[437](index=437&type=chunk) - Zhejiang Dilong Optoelectronic Materials Co, Ltd is another enterprise controlled by Jiang Feixiong and is a related party of the company[439](index=439&type=chunk) Related Party Leases (Company as Lessor) | Lessee Name | Leased Asset Type | Lease Income Recognized (Current Period, Yuan) | Lease Income Recognized (Prior Period, Yuan) | | :--- | :--- | :--- | :--- | | Dilong Optoelectronic Co | Buildings | 315,089.00 | 665,677.66 | - Compensation for key management personnel in the current period amounted to **1,860,983.16 Yuan**[443](index=443&type=chunk) - During the period, Dilong New Materials Co collected and paid utility fees of **23,640.46 Yuan** on behalf of Dilong Optoelectronic Co[444](index=444&type=chunk) [XV. Commitments and Contingencies](index=106&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company has no significant contingencies to disclose - The company has no significant contingencies to disclose[447](index=447&type=chunk) [XVI. Subsequent Events](index=106&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) This section addresses other post-balance sheet events, with details provided in the notes to the financial statements - Other post-balance sheet events are detailed in the notes to these financial statements[448](index=448&type=chunk) [XVII. Other Important Matters](index=106&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company operates as a single segment, has corrected past financial misstatements, and is actively managing litigation and debt through settlements - The company's main business is managed as a single integrated unit, thus no segment information is disclosed[449](index=449&type=chunk) - The company's former subsidiary, Suzhou Meishengyuan, had inflated revenue, profit, and accounts receivable, leading to false records in the company's 2016-2018 annual reports, which were corrected on August 27, 2021[450](index=450&type=chunk)[451](index=451&type=chunk) - The company is involved in a civil liability dispute for securities misrepresentation and has provisioned **51.02 million Yuan** based on court judgments, with **49.34 million Yuan** already paid to investors[451](index=451&type=chunk)[452](index=452&type=chunk) - The company has signed an "Execution and Settlement Agreement" with Shizuishan Bank to repay a debt of **30 million Yuan** in installments by the end of May 2026[452](index=452&type=chunk) [XVIII. Notes to Key Items in Parent Company Financial Statements](index=107&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details key items in the parent company's financial statements, including other receivables, long-term investments, and revenue - The parent company's other receivables balance at period-end was **23,730,162.06 Yuan**, a slight increase from the beginning of the year[454](index=454&type=chunk) - A significant portion of the parent company's other receivables consists of intercompany balances and temporary payments, with large individual provisions for bad debt[456](index=456&type=chunk)[460](index=460&type=chunk) - The parent company's long-term equity investment balance at period-end was **561,920,160.08 Yuan**, primarily in the subsidiary Dilong New Materials Co, with no change during the period[466](index=466&type=chunk)[468](index=468&type=chunk) - The parent company's operating revenue, mainly from other business income, was **881,081.18 Yuan** for the period[470](index=470&type=chunk) [XIX. Supplementary Information](index=110&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides details on non-recurring items, calculation of ROE and EPS, and confirms no accounting differences under domestic and foreign standards Details of Current Non-recurring Profit and Loss | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -37,832.89 | | Government Grants Included in Current Profit/Loss | 2,163,986.23 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets/Liabilities | 985,089.17 | | Reversal of Impairment Provision for Individually Tested Receivables | 146,113.50 | | Gains/Losses from Contingent Events Unrelated to Normal Business | -610,259.43 | | Other Non-operating Income and Expenses | 621,662.52 | | Other Items Defined as Non-recurring Profit/Loss | -1,583,749.09 | | Less: Income Tax Impact | 632,536.51 | | Less: Minority Interest Impact (After Tax) | 235.30 | | **Total** | **1,052,238.20** | Return on Equity (ROE) and Earnings Per Share (EPS) | Profit for the Period | Weighted Average ROE | Basic EPS (Yuan/share) | Diluted EPS (Yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders | 3.72% | 0.0278 | 0.0278 | | Net profit attributable to ordinary shareholders after deducting non-recurring items | 3.56% | 0.0266 | 0.0266 | - The company does not have any differences in net profit or net assets between financial reports disclosed under international accounting standards and Chinese accounting standards[474](index=474&type=chunk) [Section 9 Other Submitted Data](index=113&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%85%B6%E4%BB%96%E6%8A%A5%E9%80%81%E6%95%B0%E6%8D%AE) [I. Other Major Social Safety Issues](index=113&type=section&id=%E4%B8%80%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E7%A4%BE%E4%BC%9A%E5%AE%89%E5%85%A8%E9%97%AE%E9%A2%98%E6%83%85%E5%86%B5) The company and its subsidiaries had no other major social safety issues or administrative penalties during the reporting period - The company and its subsidiaries had no other major social safety issues during the reporting period[477](index=477&type=chunk) - The company and its subsidiaries were not subject to any administrative penalties during the reporting period[477](index=477&type=chunk) [II. Record of Investor Relations Activities](index=113&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) The company did not host any research visits, communications, interviews, or other related activities during the reporting period - The company did not host any research visits, communications, interviews, or other related activities during the reporting period[477](index=477&type=chunk) [III. Fund Transactions between the Company and its Controlling Shareholder and Other Related Parties](index=113&type=section&id=%E4%B8%89%E3%80%81%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E4%B8%8E%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E8%B5%84%E9%87%91%E5%BE%80%E6%9D%A5%E6%83%85%E5%86%B