Core Viewpoint - Huangshi Group (002329) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1] Financial Performance - Total revenue for the first half of 2025 was 905 million yuan, a decrease of 13.07% year-on-year [1] - The net profit attributable to shareholders was -5.77 million yuan, down 549.66% year-on-year [1] - In Q2 2025, total revenue was 459 million yuan, a decline of 18.33% year-on-year, with a net profit of -11.45 million yuan, down 194.97% [1] - The gross profit margin improved to 26.43%, an increase of 4.86% year-on-year, while the net profit margin fell to -0.48%, a decrease of 206.7% [1] Cost and Expenses - Total selling, administrative, and financial expenses amounted to 227 million yuan, accounting for 25.09% of revenue, an increase of 7.33% year-on-year [1] - The company's operating cash flow per share was -0.08 yuan, a decrease of 310.25% year-on-year [1] Balance Sheet Highlights - Current ratio reached 0.8, indicating increased short-term debt pressure [1] - Cash and cash equivalents increased by 72.90% year-on-year to 404 million yuan [3] - Interest-bearing liabilities rose by 7.21% year-on-year to 2.353 billion yuan [1] Asset and Liability Changes - Construction in progress increased by 60.13% due to ongoing projects [3] - Right-of-use assets surged by 41,178.73% as the company recognized additional long-term lease assets [3] - Trade receivables decreased by 18.92% to 400 million yuan [1] Cash Flow Analysis - Net cash flow from operating activities decreased by 301.38% due to reduced cash received from sales [4] - Net cash flow from financing activities increased by 182.91% as cash used for debt repayment decreased [4] - The net increase in cash and cash equivalents rose by 854.89% due to reduced cash outflows for debt repayment [4] Business Model and Investment Considerations - The company's performance relies heavily on marketing-driven strategies, necessitating a thorough examination of the underlying drivers [5] - The cash flow situation is concerning, with cash and cash equivalents representing only 8.77% of total assets and 21.11% of current liabilities [5] - The debt situation is also critical, with an interest-bearing asset liability ratio of 49.72% and a current ratio of only 0.8 [5]

Core Viewpoint - Huangshi Group (002329.SZ) reported its 2025 semi-annual results, indicating a decrease in institutional investor holdings compared to the previous quarter [1] Institutional Holdings - As of August 25, 2025, three institutional investors disclosed holdings in Huangshi Group A-shares, totaling 36.9385 million shares, which represents 4.44% of the total share capital [1] - The institutional investors include Dongfang Securities Co., Ltd., Guangxi Xinyang Glass Technology Co., Ltd., and BARCLAYS BANK PLC [1] - The total institutional holding percentage decreased by 0.95 percentage points compared to the previous quarter [1] Public Fund and Foreign Investment - One public fund, Tianhong Zhongzheng Food and Beverage ETF, was disclosed this period, which was not reported in the previous quarter [1] - In terms of foreign investment, one new foreign institution, BARCLAYS BANK PLC, was disclosed this period compared to the previous quarter [1]

Group 1 - The company, Huangshi Group, reported a half-year revenue of 905,168,825.44 yuan, representing a year-on-year decrease of 13.07% [1] - The net profit attributable to shareholders of the listed company was -5,767,163.89 yuan, showing a significant year-on-year decline of 549.66% [1] Group 2 - Among the top ten circulating shareholders, Barclays Bank PLC and Fu Qinlong are newly added shareholders [2]

Group 1 - The core viewpoint of the article is that Huangshi Group reported a significant decline in both revenue and net profit for the first half of 2025, indicating financial challenges [1] Group 2 - The company achieved an operating income of approximately 905 million yuan, representing a year-on-year decrease of 13.07% [1] - The net profit attributable to shareholders of the listed company was approximately -5.77 million yuan, reflecting a year-on-year decline of 549.66% [1]

Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=Important%20Notes) The Board of Directors, Supervisory Board, and senior management affirm the report's accuracy and completeness, with no cash dividends or bonus shares planned - Company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[5](index=5&type=chunk) - Company's responsible person Huang Jiadi, chief accountant Lv Dewei, and head of accounting department Zhu Xiqing declare the financial report's truthfulness, accuracy, and completeness[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this semi-annual period[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section lists the report's nine main chapters, covering company profile, financial indicators, management discussion, governance, and financial statements - The report comprises nine main chapters, covering company profile, financial indicators, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data[8](index=8&type=chunk) [List of Reference Documents](index=4&type=section&id=List%20of%20Reference%20Documents) Reference documents include signed financial statements and original public disclosures, available at the company's Board Secretary Office - Reference documents include signed and sealed financial statements and original publicly disclosed company documents[10](index=10&type=chunk)[11](index=11&type=chunk) - Reference documents are available at the company's Board Secretary Office[12](index=12&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms used in the report, including company names and the reporting period, for clear understanding - This section defines key terms used in the report, such as “the Company” and “Huangshi Group” referring to Huangshi Group Co., Ltd., and names of major subsidiaries[13](index=13&type=chunk) - The reporting period is from January 1, 2025, to June 30, 2025[13](index=13&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=I.%20Company%20Profile) The company, listed on the Shenzhen Stock Exchange with stock code 002329, is named Huangshi Group Co., Ltd., and its legal representative is Huang Jiadi Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Huangshi Group | | Stock Code | 002329 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 皇氏集团股份有限公司 | | Legal Representative | Huang Jiadi | [Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) The company's Board Secretary is Luo Bo and Securities Affairs Representative is Li Yuming, with disclosed contact details including address, phone, fax, and email Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Luo Bo | No. 65 Fengda Road, High-tech Zone, Nanning City | 0771-3211086 | 0771-3221828 | hsryhhy@126.com | | Securities Affairs Representative | Li Yuming | No. 65 Fengda Road, High-tech Zone, Nanning City | 0771-3211086 | 0771-3221828 | hsryhhy@126.com | [Other Information](index=6&type=section&id=III.%20Other%20Information) The company's contact information, disclosure details, and reference document locations remained unchanged during the reporting period, consistent with the 2024 annual report - The company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[17](index=17&type=chunk) - Information disclosure and reference document locations remained unchanged during the reporting period[18](index=18&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This period saw a **13.07%** revenue decrease, a significant **549.66%** net profit decline to a loss, and a **301.38%** drop in net operating cash flow, while total assets slightly grew and net assets slightly decreased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 905,168,825.44 | 1,041,219,381.71 | -13.07% | | Net Profit Attributable to Shareholders of Listed Company | -5,767,163.89 | 1,282,554.49 | -549.66% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | -22,555,127.38 | -19,301,893.53 | -16.85% | | Net Cash Flow from Operating Activities | -66,650,750.06 | 33,097,048.66 | -301.38% | | Basic Earnings Per Share (yuan/share) | -0.0069 | 0.0015 | -560.00% | | Diluted Earnings Per Share (yuan/share) | -0.0069 | 0.0015 | -560.00% | | Weighted Average Return on Net Assets | -0.62% | 0.08% | Decreased by 0.70 percentage points | | **End of Current Reporting Period** | **End of Prior Year** | **Change from End of Prior Year** | | Total Assets | 4,731,436,577.69 | 4,584,642,439.60 | 3.20% | | Net Assets Attributable to Shareholders of Listed Company | 928,554,472.37 | 934,520,860.62 | -0.64% | [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the period - The company's financial reports for the reporting period show no differences in net profit and net assets between international accounting standards and Chinese accounting standards[21](index=21&type=chunk) - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese accounting standards[22](index=22&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Non-recurring gains and losses totaled **16.79 million yuan**, primarily from government subsidies, non-current asset disposals, and fair value changes of financial assets, including investment income from a subsidiary's equity transfer Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | 3,186,783.87 | | | Government subsidies recognized in current profit and loss | 16,591,739.54 | | | Gains and losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 732,897.34 | | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 1,424,315.36 | | | Other non-operating income and expenses apart from the above | -302,023.17 | | | Other gains and losses meeting the definition of non-recurring gains and losses | 25,706.27 | Subsidiary Huangshi Sunshine (Guangxi) New Energy Co., Ltd. transferred 100% equity of Nantong Genzuo New Energy Co., Ltd., obtaining investment income of 25,706.27 yuan | | Less: Income tax impact | 3,798,673.81 | | | Impact on minority interests (after tax) | 1,072,781.91 | | | **Total** | **16,787,963.49** | | Management Discussion and Analysis [Principal Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=I.%20Principal%20Businesses%20Engaged%20by%20the%20Company%20During%20the%20Reporting%20Period) The company, a leading water buffalo milk enterprise, focuses on dairy and information businesses, with its core being specialty dairy products across the entire industry chain, maintaining its market leadership - The company is a leading enterprise in the domestic water buffalo milk sector, with principal businesses including dairy and information services, and its core business is specialty dairy products centered on water buffalo milk, fermented milk, and pasteurized fresh milk[28](index=28&type=chunk) - During the reporting period, the company's principal businesses, main products, and operating models did not undergo significant changes[29](index=29&type=chunk) - The company focuses on the water buffalo milk industry, deepening its “water buffalo milk germplasm chip strategy” and accelerating projects such as the Huangshi JW Ranch Phase II in Pakistan and the Anhui Fuyang Intelligent Dairy Central Factory[35](index=35&type=chunk) [Overview of Domestic Dairy Industry Development and Market Competition Landscape](index=9&type=section&id=(I)%20Overview%20of%20Domestic%20Dairy%20Industry%20Development%20and%20Market%20Competition%20Landscape) The domestic dairy industry is undergoing high-quality development, with increasing demand for low-temperature and high-value products, positioning water buffalo milk as a rapidly growing, high-quality, and stable-priced niche product - The domestic dairy industry is entering a period of deep adjustment for high-quality development, with increasing penetration of low-temperature milk and consumer demand shifting from “basic satisfaction” to a dual pursuit of “experience and emotional value”[30](index=30&type=chunk) - Water buffalo milk prices have remained stable for a long time, and with its rich and sweet taste, smooth and delicate texture, and higher nutritional value, it is rapidly upgrading from a regional niche product to a national high-quality dairy product[31](index=31&type=chunk) - Dairy buffalo farming is more flexible and relatively cheaper, adapting to the hot and humid climate of the south, and is expected to become an important pillar industry for rural revitalization in the south, giving the company a differentiated competitive advantage[34](index=34&type=chunk) [Company's Dairy Business Development](index=10&type=section&id=(II)%20Company's%20Dairy%20Business%20Development) The company is advancing in water buffalo breeding, smart farms, processing, marketing, and R&D, introducing superior Pakistani genetics, building the largest intelligent breeding base, and expanding market reach through digital transformation and internationalization - The company has made breakthrough progress in water buffalo germplasm introduction and industrial upgrading projects, with the first batch of Pakistani Nili-Ravi dairy buffalo embryo transfer calves successfully born in China, overcoming the “bottleneck” of germplasm[36](index=36&type=chunk) - The first phase of the Shangsi 10,000-head dairy buffalo breeding base has been put into use, making it currently the largest, most intelligent, and most comprehensive water buffalo germplasm breeding base in China[39](index=39&type=chunk) - The Anhui Fuyang Smart Factory construction is progressing orderly, expected to gradually commence production by the end of August 2025, becoming the largest water buffalo milk production base in East China and supporting the expansion of the East China B2B market[40](index=40&type=chunk) - The company continues its traditional business digital transformation, developing “Huangshi Fresh Order” milk ordering system and “Huang Xiao Er” self-service milk terminals, and deepening cooperation with leading traffic platforms to enhance brand influence through live e-commerce[43](index=43&type=chunk) - The company is comprehensively expanding its B2B channels, entering leading supermarkets like Hema Fresh and Metro, expanding instant retail channels like JD.com, and creating “Zai Guili” water buffalo milk tea experience workshops[44](index=44&type=chunk) - The company, leveraging Pakistani dairy buffalo breeding, has assembled an international team to explore markets in Southeast Asia and countries along the “Belt and Road” initiative, promoting water buffalo milk globally[45](index=45&type=chunk) - The company holds a leading position in dairy buffalo breeding technology, utilizing whole-genome selection breeding technology to shorten the dairy buffalo breed improvement cycle from 12 years to 3 years, increasing milk yield per head by more than **3 times**[47](index=47&type=chunk) - The company has successfully built a diversified, high-value-added product matrix, including high-end functional dairy product series like “100% Pure Water Buffalo Milk” and “Jersey Water Buffalo Fresh Milk,” as well as scenario-based dairy product series for baking, tea drinks, and catering[48](index=48&type=chunk)[49](index=49&type=chunk) - The company has made breakthroughs in dairy source functional factor excavation and characteristic probiotic resource development, establishing a globally leading water buffalo milk component database and a Bama Longevity Village probiotic strain bank[50](index=50&type=chunk) - The company fully integrates automation and artificial intelligence technology to promote intelligent production processes across the entire industry chain, introducing AI dynamic temperature control technology in pasteurization to enhance product quality and shelf life[51](index=51&type=chunk)[52](index=52&type=chunk) - The company has become the first domestic company to systematically conduct research on water buffalo milk functional factor excavation and industrial application, forming a multi-dimensional innovation support system comprising “1 National-level Dairy Engineering Center + 1 Guangxi Academy of Sciences Joint Probiotic Innovation Center + 2 University-Enterprise Joint Laboratories”[53](index=53&type=chunk) - The company is one of the earliest enterprises to strategically develop the water buffalo milk industry chain in China, holding the largest market share in the water buffalo milk industry for many years, certified as “Water Buffalo Dairy Products National Sales Champion,” and selected as a member of China Dairy D20[54](index=54&type=chunk) - The company innovatively launched the new tea beverage brand “Zai Guili,” integrating water buffalo milk into coffee, milk tea, and other products to create a trendy lifestyle[55](index=55&type=chunk) - The company primarily adopts a sales model combining direct sales, distribution, and e-commerce, establishing a market network system across the country[56](index=56&type=chunk) Distribution Model Sales Performance (Jan-Jun 2025 vs Jan-Jun 2024) | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 655,785,558.22 | 670,163,662.35 | -2.15% | | Operating Cost (yuan) | 477,685,997.74 | 477,379,773.50 | 0.06% | | Gross Margin | 27.16% | 28.77% | Decreased by 1.61 percentage points | Direct Sales Model Sales Performance (Jan-Jun 2025 vs Jan-Jun 2024) | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 118,586,390.97 | 141,264,343.66 | -16.05% | | Operating Cost (yuan) | 78,867,478.46 | 99,020,834.77 | -20.35% | | Gross Margin | 33.49% | 29.90% | Increased by 3.59 percentage points | Product Category Sales Performance Under Distribution Model (Jan-Jun 2025 vs Jan-Jun 2024) | Category | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Low-temperature Milk | Operating Revenue (yuan) | 301,632,634.17 | 286,488,309.38 | 5.29% | | | Operating Cost (yuan) | 195,286,387.54 | 179,363,395.24 | 8.88% | | | Gross Margin | 35.26% | 37.39% | Decreased by 2.13 percentage points | | Room-temperature Milk | Operating Revenue (yuan) | 349,066,792.15 | 377,597,670.73 | -7.56% | | | Operating Cost (yuan) | 277,635,980.25 | 292,451,471.64 | -5.07% | | | Gross Margin | 20.46% | 22.55% | Decreased by 2.09 percentage points | | Other Beverages and Food | Operating Revenue (yuan) | 5,086,131.90 | 6,077,682.24 | -16.31% | | | Operating Cost (yuan) | 4,763,629.95 | 5,564,906.62 | -14.40% | | | Gross Margin | 6.34% | 8.44% | Decreased by 2.10 percentage points | Number of Distributors Under Distribution Model | Region | Number of Distributors at Beginning of Period (units) | Number of New Distributors During Period (units) | Number of Decreased Distributors During Period (units) | Number of Distributors at End of Period (units) | | :--- | :--- | :--- | :--- | :--- | | Southwest Region | 2,210 | 226 | 208 | 2,228 | | Other Regions | 526 | 298 | 233 | 591 | - The distribution model primarily uses a prepayment settlement method (cash before delivery)[65](index=65&type=chunk) Top Five Distributors | Indicator | Amount (yuan) | | :--- | :--- | | Total sales revenue from top five distributors | 101,889,312.91 | | Percentage of total semi-annual sales | 11.26% | | Total accounts receivable from top five distributors at end of reporting period | 11,758,473.10 | E-commerce Sales Performance (Jan-Jun 2025 vs Jan-Jun 2024) | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 52,885,845.36 | 52,647,996.07 | 0.45% | | Operating Cost (yuan) | 39,602,663.39 | 39,925,746.72 | -0.81% | | Gross Margin | 25.12% | 24.16% | Increased by 0.96 percentage points | Product Category Sales Performance Under E-commerce Model (Jan-Jun 2025 vs Jan-Jun 2024) | Category | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Low-temperature Milk | Operating Revenue (yuan) | 21,664,772.31 | 19,202,959.26 | 12.82% | | | Operating Cost (yuan) | 12,488,823.86 | 10,250,388.89 | 21.84% | | | Gross Margin | 42.35% | 46.62% | Decreased by 4.27 percentage points | | Room-temperature Milk | Operating Revenue (yuan) | 31,185,771.82 | 33,435,755.27 | -6.73% | | | Operating Cost (yuan) | 27,096,610.36 | 29,672,324.95 | -8.68% | | | Gross Margin | 13.11% | 11.26% | Increased by 1.85 percentage points | | Other Beverages and Food | Operating Revenue (yuan) | 35,301.23 | 9,281.54 | 280.34% | | | Operating Cost (yuan) | 17,229.17 | 3,032.88 | 468.08% | | | Gross Margin | 51.19% | 67.32% | Decreased by 16.13 percentage points | Procurement Model and Content (Jan-Jun 2025) | Procurement Model | Procurement Content | Amount of Main Procurement Content (yuan) | | :--- | :--- | :--- | | External Procurement | Raw Materials | 285,309,144.91 | | | Packaging Materials | 118,338,314.37 | | | Fuel and Power | 23,816,478.82 | | | Transportation Costs | 29,802,071.78 | | | Other | 67,219,461.15 | | **Total** | | **524,485,471.03** | - The company primarily adopts a production-to-order model, with low-temperature milk produced strictly according to sales orders, while room-temperature milk production is adjusted flexibly based on seasonal sales demand in addition to sales orders[73](index=73&type=chunk) Main Components of Operating Cost (Jan-Jun 2025 vs Jan-Jun 2024) | Product Category | Item | Amount Jan-Jun 2025 (yuan) | Proportion of Operating Cost | Amount Jan-Jun 2024 (yuan) | Proportion of Operating Cost | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dairy Products, Food | Direct Materials | 429,517,983.76 | 77.17% | 453,567,236.64 | 78.69% | -5.30% | | | Direct Labor | 24,308,714.71 | 4.37% | 23,786,424.52 | 4.13% | 2.20% | | | Manufacturing Overhead | 72,924,705.95 | 13.10% | 61,721,696.61 | 10.71% | 18.15% | | | Transportation Costs | 29,802,071.78 | 5.36% | 37,325,250.50 | 6.47% | -20.16% | Year-on-Year Changes in Production and Inventory (Jan-Jun 2025 vs Jan-Jun 2024) | Product Category | Item | Unit | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Low-temperature Milk | Production Volume | tons | 35,783.26 | 32,531.49 | 10.00% | | | Sales Volume | tons | 35,982.30 | 32,614.55 | 10.33% | | | Inventory Volume | tons | 409.05 | 394.69 | 3.64% | | Room-temperature Milk | Production Volume | tons | 51,294.41 | 57,231.15 | -10.37% | | | Sales Volume | tons | 53,969.92 | 58,189.92 | -7.25% | | | Inventory Volume | tons | 2,701.60 | 3,444.61 | -21.57% | Design Capacity, Actual Capacity, and Under-Construction Capacity of Main Products (ten thousand tons/year) | Production Entity | Design Capacity | Actual Capacity | Under-Construction Capacity | | :--- | :--- | :--- | :--- | | Guangxi Huangshi Dairy Co., Ltd. | 20.00 | 19.77 | | | Huangshi Group Hunan Youshi Dairy Co., Ltd. | 15.74 | 8.24 | 7.50 | | Huangshi Group Zunyi Dairy Co., Ltd. | 15.00 | 15.00 | | | Huangshi Laibin Dairy Co., Ltd. | 5.00 | 3.90 | 1.10 | | Bama Probiotic Technology Co., Ltd. | 3.00 | 3.00 | | | Huangshi (Anhui) Dairy Co., Ltd. | 25.00 | | 16.00 | | Sichuan Huangshi Yangsen Dairy Co., Ltd. | 6.60 | 6.60 | | | **Total** | **90.34** | **56.51** | **24.60** | [Analysis of Core Competencies](index=18&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company maintains its core competitiveness through a complete dairy industry chain, leading water buffalo breeding and commercialization, differentiated products, and digital and photovoltaic technology integration - During the reporting period, the company's core competitiveness did not undergo significant changes[79](index=79&type=chunk) - The company's dairy business segment has built a complete industry chain, primarily in the Southwest region, covering pasture planting, dairy cattle farming, specialty dairy product R&D, production, and sales, with a marketing network extending from cities to rural markets[80](index=80&type=chunk) - The company is the first in China to breed and commercialize water buffalo, introducing superior Pakistani Nili-Ravi dairy buffalo germplasm, increasing milk yield per head by more than **3 times**[81](index=81&type=chunk) - The company owns the only water buffalo germplasm resource production site recognized by both China and Pakistan, and has established a water buffalo embryo research and production center in Pakistan[82](index=82&type=chunk) - The company focuses on developing core products with differentiated competitive advantages, such as water buffalo milk, yogurt, and probiotic solid beverages, holding multiple invention patents, with its water buffalo milk R&D technology ranking among the top domestic peers[83](index=83&type=chunk) - The company, in collaboration with Sichuan Anaerobic Biotechnology Co., Ltd., has established a Bama Longevity Village probiotic strain bank, and co-built an AKK strain bank with Guangxi Academy of Sciences Institute of Health, providing “bio-chips” for functional dairy product development[84](index=84&type=chunk) - Through its subsidiary Perfect Online, the company provides electronic billing systems, SMS services, and call center system solutions, promoting resource integration and business synergy between the dairy and information industries to achieve digital marketing[85](index=85&type=chunk) - The company constructs photovoltaic power stations on its ranches and dairy processing plants, reducing electricity costs and carbon emissions through agro-photovoltaic and pastoral-photovoltaic complementary models, achieving sustainable development[86](index=86&type=chunk) [Analysis of Principal Business](index=20&type=section&id=III.%20Analysis%20of%20Principal%20Business) Operating revenue decreased by **13.07%** due to declines in dairy, information services, and other main businesses, while income tax and financing cash flow significantly increased, and operating cash flow sharply decreased. Dairy and food remain the primary revenue sources, with the Southwest region contributing most Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 905,168,825.44 | 1,041,219,381.71 | -13.07% | | | Operating Cost | 665,960,456.05 | 778,816,085.35 | -14.49% | | | Selling Expenses | 107,560,058.42 | 113,649,150.47 | -5.36% | | | Administrative Expenses | 68,955,026.30 | 75,511,143.90 | -8.68% | | | Financial Expenses | 50,596,877.06 | 54,248,489.78 | -6.73% | | | Income Tax Expense | 7,241,710.69 | 3,256,506.97 | 122.38% | Primarily due to increased current income tax expense accrued by the company during the reporting period | | R&D Investment | 29,108,674.40 | 34,472,308.85 | -15.56% | | | Net Cash Flow from Operating Activities | -66,650,750.06 | 33,097,048.66 | -301.38% | Primarily due to a year-on-year decrease in cash received from sales of goods and provision of services during the reporting period | | Net Cash Flow from Investing Activities | -133,328,729.42 | -125,422,405.47 | -6.30% | | | Net Cash Flow from Financing Activities | 244,564,177.25 | 86,447,110.87 | 182.91% | Primarily due to a decrease in cash paid for debt repayment during the reporting period | | Net Increase in Cash and Cash Equivalents | 43,859,978.36 | -5,810,153.21 | 854.89% | Primarily due to a decrease in cash paid for debt repayment during the reporting period | Composition of Operating Revenue (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | | Dairy Products, Food | 774,371,949.19 | 85.55% | 811,428,006.01 | 77.93% | -4.57% | | | Information Services, Information Engineering | 66,258,737.44 | 7.32% | 92,690,577.51 | 8.90% | -28.52% | | | Other Principal Businesses | 44,917,668.59 | 4.96% | 61,122,094.49 | 5.87% | -26.51% | | | Other | 19,620,470.22 | 2.17% | 75,978,703.70 | 7.30% | -74.18% | | **By Product** | | | | | | | | | Low-temperature Milk | 358,144,062.25 | 39.57% | 346,063,784.68 | 33.24% | 3.49% | | | Room-temperature Milk | 409,245,211.29 | 45.21% | 456,294,415.97 | 43.82% | -10.31% | | | Other Beverages and Food | 6,982,675.65 | 0.77% | 9,069,805.36 | 0.87% | -23.01% | | | Cloud Communication | 44,137,392.28 | 4.88% | 62,193,935.07 | 5.97% | -29.03% | | | Information Engineering | - | 0.00% | 10,245,283.05 | 0.98% | -100.00% | | | Call Center Service Outsourcing | 22,121,345.16 | 2.44% | 20,251,359.39 | 1.95% | 9.23% | | | Other Principal Business Products | 44,917,668.59 | 4.96% | 61,122,094.49 | 5.87% | -26.51% | | | Other | 19,620,470.22 | 2.17% | 75,978,703.70 | 7.30% | -74.18% | | **By Region** | | | | | | | | | Southwest Region | 613,503,006.93 | 67.78% | 705,194,182.93 | 67.73% | -13.00% | | | Other Regions | 291,665,818.51 | 32.22% | 336,025,198.78 | 32.27% | -13.20% | | **Total** | | **905,168,825.44** | **100.00%** | **1,041,219,381.71** | **100.00%** | **-13.07%** | Industries, Products, or Regions Accounting for More Than 10% of Company's Operating Revenue or Operating Profit | Category | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Dairy Products, Food | 774,371,949.19 | 556,553,476.20 | 28.13% | -4.57% | -3.44% | Decreased by 0.83 percentage points | | **By Product** | | | | | | | | Low-temperature Milk | 358,144,062.25 | 229,007,677.08 | 36.06% | 3.49% | 6.35% | Decreased by 1.71 percentage points | | Room-temperature Milk | 409,245,211.29 | 321,030,333.53 | 21.56% | -10.31% | -8.87% | Decreased by 1.24 percentage points | | **By Region** | | | | | | | | Southwest Region | 613,503,006.93 | 440,357,456.65 | 28.22% | -13.00% | -12.61% | Decreased by 0.33 percentage points | | Other Regions | 291,665,818.51 | 225,602,999.40 | 22.65% | -13.20% | -17.94% | Increased by 4.47 percentage points | Selling Expenses Composition (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Jan-Jun 2025 (yuan) | Expense Proportion | Jan-Jun 2024 (yuan) | Expense Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Payroll Expenses | 47,551,789.66 | 44.21% | 52,896,391.37 | 46.54% | -10.10% | | Advertising and Promotion Expenses | 18,682,009.80 | 17.37% | 21,306,517.65 | 18.75% | -12.32% | | Depreciation Expense | 4,480,886.40 | 4.17% | 4,010,149.42 | 3.53% | 11.74% | | Service Fees | 11,035,578.12 | 10.26% | 9,655,343.98 | 8.50% | 14.30% | | Travel Expenses | 4,174,397.01 | 3.88% | 5,244,904.12 | 4.61% | -20.41% | | Other Expenses Subtotal | 21,635,397.43 | 20.11% | 20,535,843.93 | 18.07% | 5.35% | | **Total** | **107,560,058.42** | **100.00%** | **113,649,150.47** | **100.00%** | **-5.36%** | Main Advertising Methods and Amounts During Reporting Period (Jan-Jun 2025 vs Jan-Jun 2024) | Method | Jan-Jun 2025 (yuan) | Jan-Jun 2024 (yuan) | Year-on-Year Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Online Advertising | 1,182,512.96 | 595,462.43 | 98.59% | Primarily due to the company adjusting its promotional strategy and increasing online marketing investment during the reporting period | | Offline Advertising | 2,208,727.07 | 2,539,807.50 | -13.04% | | | TV Advertising | 235,849.06 | 950,509.24 | -75.19% | Primarily due to the company adjusting its promotional strategy and reducing TV advertising investment during the reporting period | [Analysis of Non-Principal Business](index=22&type=section&id=IV.%20Analysis%20of%20Non-Principal%20Business) Non-principal businesses significantly contributed to total profit, mainly from government subsidies, reversal of impairment provisions for accounts receivable, and non-operating income, but these items are not sustainable Non-Principal Business Items and Amounts | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 455,180.71 | 15.92% | Primarily interest income from debt investments held during the reporting period | No | | Gains and Losses from Fair Value Changes | 732,897.34 | 25.64% | Primarily gains and losses from changes in fair value of financial assets held for trading recognized during the reporting period | No | | Asset Impairment | 69,996.09 | 2.45% | Primarily reversal of impairment provisions for contract assets during the reporting period | No | | Non-Operating Income | 1,298,953.50 | 45.44% | Primarily other non-operating income such as unpayable intercompany balances during the reporting period | No | | Non-Operating Expenses | 1,600,976.67 | 56.01% | Primarily other non-operating expenses such as late payment fees paid during the reporting period | No | | Other Income | 15,604,046.29 | 545.89% | Government subsidies and additional input tax deductions during the reporting period | No | | Credit Impairment Losses | 5,161,219.70 | 180.56% | Primarily reversal of bad debt provisions for accounts receivable during the reporting period | No | [Analysis of Assets and Liabilities](index=23&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets increased by **3.20%**, driven by significant growth in construction in progress and right-of-use assets from new projects and long-term leases. Short-term borrowings and non-current liabilities due within one year also rose, with **632.79 million yuan** in restricted assets at period-end Significant Changes in Asset Composition (End of Current Reporting Period vs End of Prior Year) | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 404,262,167.39 | 8.54% | 421,244,664.61 | 9.19% | Decreased by 0.65 percentage points | | | Accounts Receivable | 399,652,587.73 | 8.45% | 484,664,219.22 | 10.57% | Decreased by 2.12 percentage points | | | Inventories | 283,206,693.46 | 5.99% | 303,056,290.46 | 6.61% | Decreased by 0.62 percentage points | | | Fixed Assets | 1,331,449,280.13 | 28.14% | 1,366,189,440.24 | 29.80% | Decreased by 1.66 percentage points | | | Construction in Progress | 194,964,572.09 | 4.12% | 121,755,330.89 | 2.66% | Increased by 1.46 percentage points | Primarily due to increased civil engineering and equipment for projects such as Guizhou Dairy Buffalo Modern Smart Ranch and Youshi High-Quality Dairy Production Base during the reporting period | | Right-of-Use Assets | 48,990,071.14 | 1.04% | 118,681.16 | 0.0026% | Increased by 1.04 percentage points | Primarily due to increased recognition of right-of-use assets for long-term leased buildings and land during the reporting period | | Short-term Borrowings | 956,396,629.50 | 20.21% | 858,908,905.51 | 18.73% | Increased by 1.48 percentage points | | | Contract Liabilities | 125,011,407.13 | 2.64% | 110,170,984.52 | 2.40% | Increased by 0.24 percentage points | | | Long-term Borrowings | 942,429,912.50 | 19.92% | 898,134,912.50 | 19.59% | Increased by 0.33 percentage points | | | Lease Liabilities | 51,220,889.93 | 1.08% | | | Increased by 1.08 percentage points | Primarily due to increased recognition of lease liabilities for long-term leased buildings and land during the reporting period | | Non-current Liabilities Due Within One Year | 453,508,125.97 | 9.58% | 337,868,591.53 | 7.37% | Increased by 2.21 percentage points | Primarily due to increased long-term borrowings due within one year at the end of the reporting period | - The company had no major overseas assets during the reporting period[103](index=103&type=chunk) Assets and Liabilities Measured at Fair Value (Period-End Balance) | Item | Beginning Balance (yuan) | Current Period Fair Value Change Gains/Losses (yuan) | Current Period Purchases (yuan) | Current Period Sales (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial Assets** | | | | | | | 1. Financial assets held for trading | 26,895,230.93 | 732,897.34 | 60,370,000.00 | 77,200,000.00 | 10,798,128.27 | | 4. Other equity instrument investments | 900,000.00 | | | | 900,000.00 | | **Subtotal Financial Assets** | **27,795,230.93** | **732,897.34** | **60,370,000.00** | **77,200,000.00** | **11,698,128.27** | | **Total Above** | **27,795,230.93** | **732,897.34** | **60,370,000.00** | **77,200,000.00** | **11,698,128.27** | Restricted Asset Status as of End of Reporting Period | Item | Carrying Amount at Period-End (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 88,547,319.75 | Bank acceptance bill and letter of credit margin, pledged loan time deposits, etc. | | Fixed Assets | 414,255,174.32 | Mortgaged loans, finance lease (sale and leaseback) collateral, freezing | | Intangible Assets | 75,956,545.88 | Mortgaged loans | | Construction in Progress | 49,030,257.77 | Mortgaged loans | | Other Receivables | 5,000,000.00 | Pledged loans | | **Total** | **632,789,297.72** | | [Analysis of Investment Status](index=25&type=section&id=VI.%20Analysis%20of%20Investment%20Status) Total investments for the period were **86.37 million yuan**, a **22.62%** decrease year-on-year. Securities investments, primarily in Bubugao stock, generated **0.7329 million yuan** in fair value change gains. The company had no derivative investments or use of raised funds Overall Investment Amount During Reporting Period | Investment Amount During Reporting Period (yuan) | Investment Amount in Prior Year Period (yuan) | Change Rate | | :--- | :--- | :--- | | 86,370,000.00 | 111,625,000.00 | -22.62% | - The company had no significant equity investments acquired during the reporting period[108](index=108&type=chunk) - The company had no significant non-equity investments in progress during the reporting period[108](index=108&type=chunk) Securities Investment Status | Security Code | Security Abbreviation | Initial Investment Cost (yuan) | Carrying Amount at Beginning of Period (yuan) | Current Period Fair Value Change Gains/Losses (yuan) | Current Period Gains/Losses (yuan) | Carrying Amount at End of Period (yuan) | Accounting Subject | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 002251 | Bubugao | 2,473,011.18 | 3,124,481.60 | 732,897.34 | 732,897.34 | 3,857,378.94 | Financial assets held for trading | Debt-to-equity swap | - The company had no derivative investments during the reporting period[110](index=110&type=chunk) - The company had no use of raised funds during the reporting period[111](index=111&type=chunk) [Significant Asset and Equity Sales](index=27&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Sales) The company did not sell any significant assets or equity during the reporting period - The company did not sell any significant assets during the reporting period[113](index=113&type=chunk) - The company did not sell any significant equity during the reporting period[114](index=114&type=chunk) [Analysis of Major Holding and Participating Companies](index=27&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Major subsidiaries, Huangshi Dairy Group and Zhejiang Perfect Online, significantly impacted net profit. New subsidiaries were established, and one was sold, with minor overall impact on operations and performance Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huangshi Dairy Group Co., Ltd. | Subsidiary | Dairy product production, processing, sales, etc. | 200,000,000.00 | 2,973,806,995.79 | 981,246,026.51 | 732,448,284.61 | 49,231,640.70 | 47,476,368.68 | | Zhejiang Perfect Online Network Technology Co., Ltd. | Subsidiary | Call center services and information services in value-added telecommunications business (Category II) | 10,000,000.00 | 352,020,020.32 | 124,824,984.91 | 70,238,993.83 | 2,595,175.26 | 1,779,328.67 | Acquisition and Disposal of Subsidiaries During Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Guangxi Zaiguili Catering Management Co., Ltd. | Establishment | Minor | | Mr. Water Buffalo (Zhejiang) Ecological Technology Co., Ltd. | Establishment | Minor | | Guizhou Hongyuan Smart Dairy Buffalo Ranch Co., Ltd. | Establishment | Minor | | Nantong Genzuo New Energy Co., Ltd. | Sale | Minor | [Status of Structured Entities Controlled by the Company](index=28&type=section&id=IX.%20Status%20of%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company had no structured entities under its control during the reporting period[117](index=117&type=chunk) [Risks Faced by the Company and Countermeasures](index=28&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from insufficient water buffalo milk supply, cost fluctuations, and intense market competition, addressed by enhancing milk source, optimizing supply chain, and strengthening differentiated marketing - Risk: Water buffalo milk supply is insufficient, and as its popularity increases and B2B demand grows, it may face supply shortages[117](index=117&type=chunk) - Countermeasures: Vigorously promote the introduction and proliferation of high-yield Pakistani dairy buffalo embryos, accelerate the construction of dairy buffalo breeding ranches, and encourage local governments, cooperatives, and farmers to participate in proliferation[117](index=117&type=chunk) - Risk: Rising and fluctuating costs in farming, raw materials, packaging, production, and labor may cause fluctuations in the company's profitability[118](index=118&type=chunk) - Countermeasures: Strengthen production and supply chain management, deepen collaboration with upstream and downstream customers, seek the most cost-effective material procurement, and smooth cost impacts through product structure optimization, improved production management efficiency, and energy saving[118](index=118&type=chunk) - Risk: Intense competition in the domestic dairy product market, severe product homogenization, high consumer demand for health and quality, and potential negative impacts on revenue and profit from erroneous decisions or insufficient product strength[119](index=119&type=chunk) - Countermeasures: Seize opportunities in consumption structure upgrading, leverage water buffalo milk as a differentiated selling point, strengthen the development of high-quality and high-value-added products, enhance channel construction and market promotion, improve market competitiveness, and consolidate its leading position in the water buffalo milk industry[119](index=119&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=29&type=section&id=XI.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has not disclosed any market value management system or valuation enhancement plan - The company has not formulated a market value management system[120](index=120&type=chunk) - The company has not disclosed a valuation enhancement plan[120](index=120&type=chunk) [Implementation of "Quality and Return Dual Enhancement" Action Plan](index=29&type=section&id=XII.%20%22Quality%20and%20Return%20Dual%20Enhancement%22%20Action%20Plan%20Implementation) The company has not disclosed any announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed the “Quality and Return Dual Enhancement” action plan announcement[120](index=120&type=chunk) Corporate Governance, Environment, and Society [Changes in Company Directors, Supervisors, and Senior Management](index=30&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Independent directors Meng Lizhen and Liang Gefu retired, replaced by Zhou Bailing and Xu Chunming; Wang Wanfang resigned as Board Secretary, succeeded by Luo Bo Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Meng Lizhen | Independent Director | Term Expired | February 24, 2025 | Re-election | | Liang Gefu | Independent Director | Term Expired | February 24, 2025 | Re-election | | Zhou Bailing | Independent Director | Elected | February 24, 2025 | Re-election | | Xu Chunming | Independent Director | Elected | February 24, 2025 | Re-election | - Ms. Wang Wanfang resigned from her position as Board Secretary but continues to serve as a company director and vice president; Mr. Luo Bo was appointed as the new Board Secretary[122](index=122&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period](index=30&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20Current%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period[123](index=123&type=chunk) [Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=30&type=section&id=III.%20Implementation%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company repurchased and cancelled **15.40458 million** restricted shares due to employee departures, unmet performance targets, and changed operating conditions, with no other employee incentive plans in place - The company repurchased and cancelled **15.40458 million** restricted shares from the 2022 Restricted Stock Incentive Plan that were not unlocked due to the departure of incentive recipients, failure to meet company-level performance targets, and deviations in performance target settings caused by changes in the operating environment[124](index=124&type=chunk) - The company has no employee stock ownership plan in place[125](index=125&type=chunk) - The company has no other employee incentive measures[125](index=125&type=chunk) [Environmental Information Disclosure](index=31&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its key subsidiaries, Huangshi Laibin Dairy and Hunan Youshi Ranch, are listed as legally required environmental information disclosure enterprises and have published their reports - The listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[125](index=125&type=chunk) Enterprises Included in the List of Legally Required Environmental Information Disclosure | No. | Enterprise Name | Query Index for Legally Required Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Huangshi Laibin Dairy Co., Ltd. | http://bqfq.sthjt.gxzf.gov.cn/GXHJXXPLQYD/frontal/index.html/home/index | | 2 | Hunan Youshi Ranch Technology Co., Ltd. | http://yfpl.sthjt.hunan.gov.cn:8181/hnyfpl/frontal/index.html/home/index | [Social Responsibility](index=31&type=section&id=V.%20Social%20Responsibility) The company actively fulfills social responsibilities by protecting stakeholder rights, prioritizing employee well-being, ensuring food safety, engaging in philanthropy, promoting water buffalo breeding technology internationally, implementing environmental protection, and contributing to rural revitalization - The company strictly adheres to laws and regulations, improves governance systems, perfects corporate governance structure, and protects the rights and interests of shareholders and creditors through information disclosure and performance briefings[127](index=127&type=chunk) - The company adheres to a people-oriented approach, soliciting employee opinions through democratic means, optimizing personnel selection, training, compensation and benefits, and performance appraisal systems, while caring for employee well-being and enriching cultural and entertainment activities[128](index=128&type=chunk)[129](index=129&type=chunk) - The company insists on digital transformation and upgrading, building comprehensive digital solutions for the entire industry, strictly controlling product quality, focusing on food safety, and is committed to providing high-quality products and services to customers and protecting consumer interests[130](index=130&type=chunk) - The company actively communicates with government departments and regulatory agencies, operates legally, creates employment, pays taxes according to law, and consistently supports public welfare by donating cash and self-produced products to charitable activities[131](index=131&type=chunk) - The company actively participates in the “Belt and Road” initiative, investing in the water buffalo industry in Pakistan, conducting breeding and conservation work, and providing free public lectures on water buffalo embryo and dairy product storage and transportation, promoting technology transfer[132](index=132&type=chunk)[133](index=133&type=chunk) - The company considers environmental protection a crucial part of its sustainable development strategy, accelerating industrial upgrading, investing in smart factories, and exploring agro-photovoltaic and pastoral-photovoltaic complementary methods to reduce carbon emissions, with no environmental accidents during the reporting period[135](index=135&type=chunk) - As a national key leading enterprise in agricultural industrialization, the company continues to focus on the “three rural issues,” collaborating on rural revitalization through water buffalo industry development, ranch construction, village-enterprise co-farming projects, and providing employment opportunities to help farmers increase income and become prosperous[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) Significant Matters [Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=35&type=section&id=I.%20Commitments%20Fulfilled%20and%20Overdue%20Unfulfilled%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The company completed the repurchase and cancellation of some performance compensation shares from Xu Leilei, but **1.76467 million** shares remain uncancelled due to pledges, and **67.5316 million yuan** in compensation is still outstanding, with active enforcement efforts underway - The company completed the cancellation of **20,640,630** performance compensation shares held by Xu Leilei on April 3, 2025[144](index=144&type=chunk) - The remaining **1,764,670** shares held by Xu Leilei, which are subject to pledges, cannot be repurchased and cancelled for now[144](index=144&type=chunk) - As of the disclosure date, the company has not yet received the performance compensation payment of **67.5316 million yuan** from Xu Leilei, and the company is actively pursuing the enforcement of this payment[144](index=144&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company](index=37&type=section&id=II.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties from the listed company - During the reporting period, the company had no non-operating funds occupied by controlling shareholders or other related parties from the listed company[145](index=145&type=chunk) [Irregular External Guarantees](index=37&type=section&id=III.%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[146](index=146&type=chunk) [Appointment and Dismissal of Accounting Firms](index=37&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[148](index=148&type=chunk) [Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Reporting Period](index=38&type=section&id=V.%20Board%20of%20Directors'%20and%20Supervisory%20Board's%20Explanation%20on%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Reporting%20Period) The company did not have a non-standard audit report for the current reporting period - The company had no non-standard audit report during the reporting period[149](index=149&type=chunk) [Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year](index=38&type=section&id=VI.%20Board%20of%20Directors'%20Explanation%20on%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company did not have a non-standard audit report for the previous year - The company had no non-standard audit report during the reporting period[149](index=149&type=chunk) [Bankruptcy and Reorganization Matters](index=38&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[149](index=149&type=chunk) [Litigation Matters](index=38&type=section&id=VIII.%20Litigation%20Matters) The company is involved in two major lawsuits: one with Xu Leilei regarding unfulfilled performance commitments, with **1.76467 million** shares still pledged and **67.5316 million yuan** compensation outstanding; and another with Tai'an Dongyue Wealth, where the company lost on appeal and has accrued **190.7185 million yuan** in estimated liabilities, planning to apply for retrial Major Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (ten thousand yuan) | Estimated Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Status of Litigation (Arbitration) Judgment Enforcement | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lawsuit against Xu Leilei, former controlling shareholder of Shengshi Jiaoyang, for unfulfilled performance commitments | 6,753.16 | No | On March 11, 2025, Nanning Intermediate People's Court issued a "Ruling on Enforcement," ruling that 20,640,630 shares held by Xu Leilei had been transferred to the company's repurchase special securities account | The repurchase and cancellation of the aforementioned performance compensation shares will not have an adverse impact on the company's current or subsequent period profits; the specific impact amount will be subject to the company's annual audit results | The company completed the cancellation of 20,640,630 performance compensation shares on April 3, 2025. Due to pledges, the remaining 1,764,670 shares held by Xu Leilei cannot be repurchased and cancelled for now. As of the current date, the company has not yet received the performance compensation payment of 67.5316 million yuan from Xu Leilei | March 13, 2025 | Juchao Information Network "Announcement on the Completion of Transfer of Part of Performance Compensation Shares and Progress of Litigation Matters" (Announcement No.: 2025-021); "Announcement on the Completion of Repurchase and Cancellation of Part of Performance Compensation Shares" (Announcement No.: 2025-023) | | Dispute with Tai'an Dongyue Wealth Equity Investment Fund Co., Ltd. | Investment transfer payment of 31,000 ten thousand yuan and related difference compensation, case acceptance fees, etc. | Yes | The company received the "Civil Judgment" (2025) Lu Min Zhong No. 20 from Shandong High People's Court | This judgment is a final judgment and has not yet been enforced. To protect the legitimate rights and interests of the company and its shareholders, the company will apply for retrial through the judicial supervision procedure | Estimated liabilities of 19,071.85 ten thousand yuan have been accrued | June 6, 2025 | Juchao Information Network "Announcement on the Progress of Litigation Matters" (Announcement No.: 2025-045) | Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (ten thousand yuan) | Estimated Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Status of Litigation (Arbitration) Judgment Enforcement | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total amount involved in other litigation not meeting the disclosure standard for major litigation | 1,511.20 | No | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | [Penalties and Rectification](index=39&type=section&id=IX.%20Penalties%20and%20Rectification) The company and key personnel received administrative penalties from the China Securities Regulatory Commission for information disclosure violations, including a **4 million yuan** fine for the company. A rectification team has been established to address issues and enhance internal governance Penalties | Name | Type | Reason | Investigation and Penalty Type | Conclusion (if any) | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huangshi Group Co., Ltd. | Information Disclosure Violation | Investigated and administratively penalized by China Securities Regulatory Commission | Ordered to rectify, given a warning, and fined **4 million yuan** | June 14, 2025 | Juchao Information Network "Announcement on the Company and Relevant Parties Receiving the <Administrative Penalty Decision>" (Announcement No.: 2025-046) | | Huang Jiadi | Chairman | Information Disclosure Violation | Investigated and administratively penalized by China Securities Regulatory Commission | Given a warning, and fined **2.5 million yuan** | June 14, 2025 | Juchao Information Network "Announcement on the Company and Relevant Parties Receiving the <Administrative Penalty Decision>" (Announcement No.: 2025-046) | | Wang Wanfang | Director, Former Board Secretary | Information Disclosure Violation | Investigated and administratively penalized by China Securities Regulatory Commission | Given a warning, and fined **2 million yuan** | June 14, 2025 | Juchao Information Network "Announcement on the Company and Relevant Parties Receiving the <Administrative Penalty Decision>" (Announcement No.: 2025-046) | | Yang Hongjun | Former Director, Vice President | Information Disclosure Violation | Investigated and administratively penalized by China Securities Regulatory Commission | Given a warning, and fined **1.5 million yuan** | June 14, 2025 | Juchao Information Network "Announcement on the Company and Relevant Parties Receiving the <Administrative Penalty Decision>" (Announcement No.: 2025-046) | | Shi Aiping | Chairman of Supervisory Board | Information Disclosure Violation | Investigated and administratively penalized by China Securities Regulatory Commission | Given a warning, and fined **0.5 million yuan** | June 14, 2025 | Juchao Information Network "Announcement on the Company and Relevant Parties Receiving the <Administrative Penalty Decision>" (Announcement No.: 2025-046) | - The company has established a rectification team led by the chairman, comprehensively reviewing issues, formulating and implementing rectification measures to ensure standardized information disclosure, and strengthening all employees' sense of responsibility and professional competence[154](index=154&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=39&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The integrity status of the company, its controlling shareholder, and actual controller has not been disclosed - The integrity status of the company, its controlling shareholder, and actual controller has not been disclosed[155](index=155&type=chunk) [Significant Related Party Transactions](index=40&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company had no significant related party transactions concerning daily operations, asset/equity acquisitions/disposals, joint external investments, related party creditor/debtor relationships, or financial company dealings - The company had no related party transactions related to daily operations during the reporting period[156](index=156&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[157](index=157&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[158](index=158&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[159](index=159&type=chunk) - The company had no deposits, loans, credit lines, or other financial business with financial companies or related parties that have related party relationships[160](index=160&type=chunk) - The financial company controlled by the company had no deposits, loans, credit lines, or other financial business with related parties[161](index=161&type=chunk) - The company had no other significant related party transactions during the reporting period[162](index=162&type=chunk) [Significant Contracts and Their Performance](index=40&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no trusteeship or contracting arrangements. It entered into finance lease (sale and leaseback) and entrusted operation management contracts. Total external guarantees amounted to **1.88888 billion yuan**, representing **203.42%** of net assets, with **545.0101 million yuan** for entities with over **70%** debt-to-asset ratio. Entrusted wealth management had an outstanding balance of **6.9407 million yuan** - The company had no trusteeship arrangements during the reporting period[163](index=163&type=chunk) - The company had no contracting arrangements during the reporting period[164](index=164&type=chunk) - The company's wholly-owned sub-subsidiary, Guangxi Huangshi Dairy Co., Ltd., signed a finance lease (sale and leaseback) contract with a lease cost of **50 million yuan**[165](index=165&type=chunk) - The company renewed entrusted operation management contracts with Guangxi Laibin Green Health Ranch Co., Ltd. and Laibin Xingbin District Hongli Dairy Buffalo Farm, entrusting the operation of dairy farms and dairy buffalo farms[165](index=165&type=chunk) - Sub-subsidiary Hunan Youshi Ranch Technology Co., Ltd. signed the “Youshi Ranch Shuanglong Black and White Dairy Cattle Entrusted Operation Management Contract” with Hunan Yuli Agricultural Development Co., Ltd[166](index=166&type=chunk) - Sub-subsidiary Huangshi Group Zunyi Dairy Co., Ltd.'s controlling subsidiary Huangshi Group Dejiang Deyuan Ranch Co., Ltd. signed the “Dejiang Ranch Entrusted Operation Management Contract” with Yunshang Muge (Dejiang) Agricultural Development Co., Ltd[167](index=167&type=chunk) - The company had no lease projects that generated gains or losses exceeding **10%** of the company's total profit during the reporting period[168](index=168&type=chunk) Company Guarantee Status | Indicator | Amount (ten thousand yuan) | | :--- | :--- | | Total approved guarantee amount during reporting period (A1+B1+C1) | 312,816.00 | | Total actual guarantee amount incurred during reporting period (A2+B2+C2) | 55,097.07 | | Total approved guarantee amount at end of reporting period (A3+B3+C3) | 312,816.00 | | Total actual guarantee balance at end of reporting period (A4+B4+C4) | 188,888.00 | | Proportion of total actual guarantee to company's net assets | 203.42% | | Of which: Guarantee balance for shareholders, actual controllers, and their related parties (D) | 0.00 | | Debt guarantee balance provided directly or indirectly for guaranteed entities with debt-to-asset ratio exceeding 70% (E) | 54,501.01 | | Amount of total guarantee exceeding 50% of net assets (F) | 87,959.27 | | Total of the above three guarantee amounts (D+E+F) | 142,460.28 | Entrusted Wealth Management Status | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Incurred (ten thousand yuan) | Unexpired Balance (ten thousand yuan) | Overdue Unrecovered Amount (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank wealth management products | Own funds | 3,125.07 | 694.07 | 0 | | **Total** | | **3,125.07** | **694.07** | **0** | - The company had no other significant contracts during the reporting period[186](index=186&type=chunk) [Explanation of Other Significant Matters](index=50&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[187](index=187&type=chunk) [Significant Matters of Company Subsidiaries](index=50&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[188](index=188&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=51&type=section&id=I.%20Share%20Change%20Status) Total shares decreased by **36.64535 million** due to the repurchase and cancellation of performance compensa

皇氏集团股份有限公司 法定代表人：黄嘉棣 主管会计工作负责人：吕德伟 会计机构负责人：朱夕清 单位：人民币万元 | | | 占用方与上 | | 2025 年 | 2025 年 1-6 月 | 2025 年 1-6 | 2025年1-6 | 2025 年 6 月 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 非经营性资金占 | 资金占用方名称 | 市公司的关 | 上市公司核算的 | 期初占用 | 占用累计发生 | 月占用资金 | 月偿还累 | 期末占用资 | 占用形成 | 占用性质 | | 用 | | 联关系 | 会计科目 | 资金余额 | 金额（不含利 | 的利息（如 | 计发生金 | 金余额 | 原因 | | | | | | | | 息） | 有） | 额 | | | | | 控股股东、实际 | | | | | | | | | | | | 控制人及其附属 | | | | | | | | | | | | 企业 | | | | | | | | | | | | 小计 | - | - | - | | | | | ...

皇氏集团股份有限公司 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：皇氏集团股份有限公司 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 404,262,167.39 421,244,664.61 结算备付金 拆出资金 交易性金融资产 10,798,128.27 26,895,230.93 衍生金融资产 应收票据 950,000.00 应收账款 399,652,587.73 484,664,219.22 应收款项融资 预付款项 341,025,043.61 203,300,594.06 应收保费 应收分保账款 应收分保合同准备金 其他应收款 406,242,645.43 396,881,240.59 其中：应收利息 25,062,246.58 25,062,246.58 应收股利 买入返售金融资产 存货 283,206,693.46 303,056,290.46 其中：数据资源 合同资产 5,385,439.41 7,648,646. ...

Core Viewpoint - Huangshi Group's stock price has declined, and the company is facing significant financial challenges, including increased external guarantees and projected losses in the upcoming financial period [1][2]. Financial Performance - The stock price of Huangshi Group is reported at 3.78 yuan, down 0.79% from the previous trading day, with a trading volume of 1.06 billion yuan [1]. - The company has announced a projected net loss of 3.5 million to 7 million yuan for the first half of 2025, indicating a further deterioration in its financial performance [1]. Company Operations - Huangshi Group is primarily engaged in the production and sale of dairy products, with additional involvement in agriculture and biotechnology [1]. - The company was established in 2001 and went public on the Shenzhen Stock Exchange in 2010 [1]. Financial Obligations - The company has recently disclosed multiple external guarantees, with total guarantees amounting to 3.758 billion yuan, which represents 261.28% of the most recent audited net assets [1]. - In the past five days, the net outflow of main funds from Huangshi Group has reached 26 million yuan, with a single-day outflow of 8.03 million yuan on August 13 [2].

Summary of Key Points Core Viewpoint - The announcement details the progress of external guarantees provided by the company and its subsidiaries, highlighting the total guarantee amount exceeding the company's audited net assets. Group 1: Overview of Guarantees - The company plans to provide guarantees for subsidiaries with a total amount not exceeding RMB 375,816 million for the year 2025, with specific limits for subsidiaries with different debt ratios [3][55]. - The guarantees include amounts for subsidiaries with a debt ratio of 70% or more capped at RMB 68,900 million, and those below 70% capped at RMB 241,216 million [3]. Group 2: Progress of Guarantees - The company signed a guarantee contract with Guilin Bank for RMB 16,600 million to support Guangxi Huangshi Dairy's credit application [4]. - A guarantee of RMB 890,000 was provided to support Huangshi Group Zunyi Dairy's working capital loan from Guizhou Bank [4]. - Additional guarantees were signed with North Bay Bank for various subsidiaries, including RMB 1,000 million for Huangshi Sail Biotechnology and RMB 3,000 million for Huangshi Laibin Dairy [5][6][9]. Group 3: Financial Data and Risk Management - The total amount of guarantees provided by the company and its subsidiaries is RMB 244,169.77 million, which is 261.28% of the company's latest audited net assets [55]. - The company has no overdue guarantees or guarantees involved in litigation, ensuring a controlled risk environment [55]. Group 4: Basic Information of Guaranteed Entities - Huangshi Group was established on May 31, 2001, with a registered capital of RMB 83,240.3985 million, primarily engaged in dairy product production and sales [14]. - Guangxi Huangshi Dairy, a subsidiary, was established on December 25, 2015, with a registered capital of RMB 50,000 million [17]. - Huangshi Group Zunyi Dairy, another subsidiary, was established on March 9, 2016, with a registered capital of RMB 6,890 million [21].

（文章来源：证券日报） 证券日报网讯 8月12日晚间，皇氏集团发布公告称，公司及控股子公司无逾期对外担保情形、无涉及诉 讼的对外担保及因担保被判决败诉而应承担损失的情形。 ...