Financial Performance - Company reported a total revenue of 2.706 billion yuan for the first half of 2025, a year-on-year increase of 0.65% [1] - Net profit attributable to shareholders reached 150 million yuan, up 43.15% year-on-year [1] - Gross margin improved to 19.55%, reflecting a year-on-year increase of 14.9%, while net margin rose to 5.66%, up 35.83% [1] - Total operating expenses were 183 million yuan, accounting for 6.75% of revenue, a decrease of 3.64% year-on-year [1] - Earnings per share increased to 0.13 yuan, a rise of 44.44% year-on-year [1] Cash Flow and Assets - Operating cash flow per share significantly increased to 0.38 yuan, a remarkable rise of 362% year-on-year [1] - Cash and cash equivalents decreased to 1.173 billion yuan, down 38.80% year-on-year [1] - Accounts receivable increased to 1.346 billion yuan, reflecting an 8.14% year-on-year growth [1] - Interest-bearing debt decreased to 385 million yuan, down 23.04% year-on-year [1] Industry Overview - The dye industry in China is highly competitive, with the country being the largest producer, trader, and consumer of dyes globally, accounting for approximately 70% of the world's total dye production [4] - Major production areas for dyes in China include Zhejiang, Jiangsu, and Shandong provinces, indicating a high industry concentration [4] - The industry is characterized by increasing production capacity both domestically and internationally, leading to intensified market competition [4]

Core Insights - The report emphasizes that the chemical industry is entering a new phase of capital expenditure, with a focus on the rebalancing of supply and demand following the release of production capacity during the 14th Five-Year Plan period [2][6] - The report indicates that the bottom of the cycle is becoming clearer, with potential price increases for chemical products driven by demand recovery and supply stability in the second half of the year [2][6] Industry Overview - The current cycle has reached its tail end, with a total of 12 quarters of decline since Q3 2022, following a 7-quarter expansion from Q4 2020 to Q2 2022 [10][12] - The report outlines that the chemical industry has experienced three significant price fluctuation cycles since 2010, with the latest cycle characterized by a demand-driven recovery followed by a supply-side pressure [8][10] Investment Recommendations - The report suggests focusing on sectors with relatively low valuations, such as sucralose (recommended: Jinhe Industrial), pesticides (recommended: Yangnong Chemical, Runfeng Shares), and MDI (recommended: Wanhua Chemical) [3][4] - It highlights the importance of domestic demand in countering tariff impacts, recommending companies in refrigerants and fertilizers [3][4] - The report identifies investment opportunities in sectors with upcoming capacity releases, such as organic silicon (recommended: Xin'an Chemical) and spandex [3][4] Price and Profitability Trends - The report notes that many sub-industry product prices remain at historical lows, with specific prices for spandex, PA6, and other fibers at 0%, 4%, and 5% of historical levels respectively [28] - It mentions that the chemical industry has seen a slight recovery in profitability in Q1 2025, although the overall performance remains under pressure [27][25] Supply and Demand Dynamics - The report indicates that the global chemical capital expenditure is on a downward trend, with domestic companies experiencing a slowdown in investment while still facing significant pressure to convert projects into fixed assets [22][32] - It also states that both domestic and international markets are entering a replenishment phase in 2025, which may influence inventory levels and pricing strategies [35][36]

Core Insights - The company reported a significant increase in net profit by 43.15% year-on-year for the first half of 2025, indicating strong financial performance and effective strategic implementation [1][2] - The company's revenue reached 2.706 billion yuan, reflecting a modest growth of 0.65% compared to the previous year, showcasing stability in its operations [1] - The company's cash flow from operations saw a remarkable increase of 351.36%, amounting to 429 million yuan, highlighting improved operational efficiency [1] Financial Performance - The company achieved a net profit of 150 million yuan and a non-recurring net profit of 133 million yuan, with the latter growing by 32.88% year-on-year [1] - Export revenue amounted to 226.33 million yuan, marking a growth of 32.99%, demonstrating the company's competitive edge in both domestic and international markets [1] Strategic Initiatives - The company has been focusing on a "backward integration" strategy for over a decade, which has led to significant achievements in extending its industrial chain [1] - This strategy has helped reduce production costs and mitigate the impact of price fluctuations in dye intermediates, thereby enhancing the company's resilience against market risks [1] Production Capacity - The company has a total dye production capacity of approximately 238,000 tons, with specific capacities of 118,000 tons for disperse dyes and 100,000 tons for reactive dyes, maintaining a leading market share in the domestic dye market [2] - Additionally, the company has a production capacity of 50,000 tons for printing and dyeing auxiliaries and 160,000 tons for caustic soda, further diversifying its product offerings [2] Research and Development - The company invested 133 million yuan in R&D during the first half of 2025, reflecting a year-on-year increase of 28.55%, which underscores its commitment to innovation [2] - The R&D efforts are aimed at enhancing the company's product offerings and reducing environmental pressures, ultimately contributing to cost reduction and improved competitiveness [2]

Group 1 - The company, Runtou Co., Ltd. (SZ 002440), announced its 11th meeting of the 7th board of directors held on August 27, 2025, to review the 2025 semi-annual report and its summary [1] - For the fiscal year 2024, the company's revenue composition is 92.41% from specialized chemicals and 7.59% from other businesses [1] - As of the report date, Runtou Co., Ltd. has a market capitalization of 8.4 billion yuan [1]

Core Viewpoint - Lintong Co., Ltd. reported a slight increase in revenue for the first half of 2025, while net profit saw a significant rise compared to the previous year [1] Financial Performance - The company achieved an operating revenue of 2.706 billion yuan, representing a year-on-year growth of 0.65% [1] - The net profit attributable to shareholders reached 150 million yuan, marking a year-on-year increase of 43.15% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 133 million yuan, reflecting a year-on-year growth of 32.88% [1] - Basic earnings per share stood at 0.13 yuan [1]

浙江闰土股份有限公司 2025 年半年度财务报告 证券简称：闰土股份 证券代码：002440 报表 第 0页 浙江闰土股份有限公司 合并资产负债表 2025 年 06 月 30 日 （除特别注明外，金额单位均为人民币元） | 资产 | 附注五 | 期末余额 | 上年年末余额 | | --- | --- | --- | --- | | 流动资产： | | | | | 货币资金 | （一） | 1,172,949,641.88 | 1,183,588,099.33 | | 结算备付金 | | | | | 拆出资金 | | | | | 交易性金融资产 | （二） | 605,817,172.57 | 442,133,305.70 | | 衍生金融资产 | | | | | 应收票据 | | | | | 应收账款 | （三） | 1,346,361,031.84 | 975,154,443.27 | | 应收款项融资 | （四） | 1,131,885,984.08 | 1,643,466,409.21 | | 预付款项 | （五） | 64,515,497.78 | 40,565,898.18 | | 应收保费 | ...

证券代码：002440 证券简称：闰土股份 公告编号：2025-036 浙江闰土股份有限公司 关于 2025 年半年度计提资产减值准备的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 浙江闰土股份有限公司（以下简称"公司"）于 2025 年 8 月 27 日召开第七 届董事会第十一次会议，审议通过《关于 2025 年半年度计提资产减值准备的议 案》。为真实反映公司的财务状况及经营成果，根据《企业会计准则》、《深圳证 券交易所股票上市规则》及公司会计政策、会计估计等相关规定，公司对合并报 表范围内截至 2025 年 6 月末存在减值迹象的资产进行了减值测试，基于谨慎性 原则，对可能发生减值损失的资产计提了减值准备。现将具体情况公告如下： 一、计提资产减值准备情况概况 1、计提资产减值准备的原因 根据《企业会计准则》、《深圳证券交易所股票上市规则》等相关规定的要求， 基于谨慎性原则，为了更加真实、准确地反映公司的资产和财务状况，公司及下 属控股子公司对截至 2025 年 6 月 30 日的应收账款、其他应收款、存货、固定资 产等各类资产进行全面的清查，对各类 ...

浙江闰土股份有限公司 非经营性资金占用及其他关联资金 往来情况的专项报告 2025 年 1-6 月 浙江闰土股份有限公司 2025 年 1-6 月 | 非经营性资金占用 资金占用方名称 | 占用方与上市 公司的关联关 | 上市公司核 算的会计科 | 年期初占用资金余额 2025 | 2025 年 | 1-6 月占 2025 年 1-6 月 年 2025 用累计发生金额 占用资金的 | 月偿还累计发 1-6 年 2025 6 | 占用形成 月末占用资金余额 | 占用性质 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 系 | 目 | | | （不含利息） 利息(如有) | 生金额 | 原因 | | | 约克夏染料(中山)有限公司 | 孙公司 | 其他应收款 | | 0.20 | | | 往来款 0.20 | 非经营性往来 | | 约克夏(浙江)染化有限公司 | 孙公司 | 其他应收款 | | 0.21 | | | 0.21 往来款 | 非经营性往来 | | 浙江迪邦化工有限公司 | 子公司 | 其他应收款 | | - | 10.00 | ...

证券代码：002440 证券简称：闰土股份 公告编号：2025-034 浙江闰土股份有限公司 第七届董事会第十一次会议决议公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 浙江闰土股份有限公司（以下简称"公司"）第七届董事会第十一次会议于 2025 年 8 月 27 日在闰土大厦 1902 会议室以现场会议结合通讯方式召开。 召开本次会议的通知已于 2025 年 8 月 16 日以书面、电话和短信方式通知了 各位董事。本次会议由公司董事长阮静波女士主持，会议应参加董事 9 名，实际 出席董事 9 名，其中以通讯方式出席 3 名。公司高级管理人员列席了会议。本次 会议的召开符合《公司法》和《公司章程》的有关规定。经与会董事认真审议， 会议以记名投票表决方式通过如下议案： 一、审议通过《2025 年半年度报告及其摘要》 《 2025 年 半 年 度 报 告 》 详 见 公 司 指 定 信 息 披 露 网 站 巨 潮 资 讯 网 （www.cninfo.com.cn），《2025 年半年度报告摘要》（公告编号：2025-035）详见 公司指定信息披露媒体《证券时 ...

[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%92%8C%E9%87%8A%E4%B9%89) This section provides an overview of important notes, the report's table of contents, and key definitions [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility; the company's head, chief accountant, and head of accounting department declare the financial report is true, accurate, and complete - The 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, and assume individual and joint legal responsibility[5](index=5&type=chunk) - Company head Ruan Jingbo, chief accountant Zhou Chengyu, and head of accounting department Ding Xingjuan declare: the financial report in this semi-annual report is true, accurate, and complete[5](index=5&type=chunk) [Risk Disclosures](index=2&type=section&id=%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company faces multiple risks including macroeconomic and industrial policy changes, safety production, continuous increase in environmental protection investment, and intensified market competition, which it addresses by adjusting development strategies, increasing safety and environmental protection investments, and flexibly responding to market changes - Risk of macroeconomic and industrial policy changes: The development of the textile printing and dyeing industry is closely related to national industrial policies, and macroeconomic regulation and relevant policies significantly impact the dye industry[6](index=6&type=chunk) - Safety risk: As a fine chemical industry company, safety production is fundamental; the company will continue to increase investment in safety production and promote advanced safety management methods[7](index=7&type=chunk) - Environmental risk: The implementation of the new 'Environmental Protection Law' leads to continuous increases in environmental protection investment, affecting the company's operating strategy; the company will strictly manage environmental protection and increase investment[9](index=9&type=chunk) - Market risk: Fluctuations in raw material prices and intensified competition in the dye industry may lead to decreased sales prices or reduced capacity utilization; the company will adopt flexible strategies to control costs[10](index=10&type=chunk) [Profit Distribution Plan](index=3&type=section&id=%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E9%A2%84%E6%A1%88) The company plans no cash dividend distribution, no bonus shares, and no capital increase from capital reserves for the semi-annual period - The company plans no cash dividend distribution, no bonus shares, and no capital increase from capital reserves[11](index=11&type=chunk) [Table of Contents](index=4&type=section&id=%E7%9B%AE%E5%BD%95) This section presents the structured table of contents for the report, including major chapters such as company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related information, financial report, and other submitted data - The report directory includes nine main chapters, covering company overview, financial performance, management analysis, corporate governance, significant events, equity information, bond information, and financial reports[13](index=13&type=chunk) [Reference Documents](index=5&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) Reference documents include the original semi-annual report signed by the legal representative, original financial statements, original copies of all publicly disclosed company documents and announcements, and other relevant materials - The reference documents include the original full semi-annual report signed by the legal representative, original financial statements, original copies of all company documents and announcements publicly disclosed on newspapers designated by the China Securities Regulatory Commission during the reporting period, and other relevant materials[15](index=15&type=chunk) [Definitions](index=6&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, including company names, laws and regulations, stock exchanges, currency units, and abbreviations for major subsidiaries and associated companies - Definitions cover entity names such as Company, the Company, Runtu, Runtu Shares, as well as institutions and laws and regulations like the Company Law, Securities Law, Shenzhen Stock Exchange, and CSRC[17](index=17&type=chunk) - The reporting period is defined as January 1, 2025, to June 30, 2025[17](index=17&type=chunk) - Lists abbreviations for multiple subsidiaries and associated companies, such as Runtu Holdings, Dibang Chemical, Jiacheng Chemical, Ruihua Chemical[17](index=17&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of Company Profile and Key Financial Indicators including key details and analyses [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Basic information of Zhejiang Runtu Co., Ltd., including stock abbreviation, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Metric | Content | | :--- | :--- | | Stock Abbreviation | 闰土股份 | | Stock Code | 002440 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 浙江闰土股份有限公司 | | Legal Representative | 阮静波 | [Contact Persons and Information](index=7&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) Discloses contact information for the company's board secretary and securities affairs representative, including names, addresses, phone numbers, fax numbers, and email addresses Contact Information | Position | Name | Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | 刘波平 | 浙江省绍兴市上虞区市民大道 1009 号财富广场 1 号楼闰土大厦 | 0575-82519278 | 0575-82045165 | latigid@126.com | | Securities Affairs Representative | 焦大伟 | 浙江省绍兴市上虞区市民大道 1009 号财富广场 1 号楼闰土大厦 | 0575-82519278 | 0575-82045165 | rtgfzqb@163.com | [Other Information](index=7&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 email address remained unchanged during the reporting period; information disclosure media include Securities Daily, Securities Times, Shanghai Securities News, and Cninfo.com.cn - The company's registered address, office address, website, and email address remained unchanged during the reporting period; details can be found in the 2024 annual report[21](index=21&type=chunk) - The website of the stock exchange where the company discloses its semi-annual report is the Shenzhen Stock Exchange website (www.szse.cn)[22](index=22&type=chunk) - The media names and websites for the company's semi-annual report disclosure include Securities Daily, Securities Times, Shanghai Securities News, and Cninfo.com.cn (www.cninfo.com.cn)[22](index=22&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's 2025 semi-annual operating revenue increased by **0.65%** to **2.71 billion RMB**, net profit attributable to shareholders increased by **43.15%** to **150 million RMB**, and net cash flow from operating activities surged by **351.36%** to **429.47 million RMB**; total assets and net assets attributable to shareholders slightly decreased Key Accounting Data and Financial Indicators for H1 2025 | Metric | Current Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2.71 billion RMB | 2.69 billion RMB | 0.65% | | Net Profit Attributable to Listed Company Shareholders | 149.71 million RMB | 104.58 million RMB | 43.15% | | Net Profit Attributable to Listed Company Shareholders After Non-recurring Items | 133.35 million RMB | 100.36 million RMB | 32.88% | | Net Cash Flow from Operating Activities | 429.47 million RMB | 95.15 million RMB | 351.36% | | Basic Earnings Per Share (RMB/share) | 0.13 | 0.09 | 44.44% | | Diluted Earnings Per Share (RMB/share) | 0.13 | 0.09 | 44.44% | | Weighted Average ROE | 1.60% | 1.11% | 0.49% | | **Period-End Metric** | **End of Current Period (RMB)** | **End of Prior Year (RMB)** | **Change from Prior Year-End** | | Total Assets | 11.46 billion RMB | 11.46 billion RMB | -0.02% | | Net Assets Attributable to Listed Company Shareholders | 9.36 billion RMB | 9.37 billion RMB | -0.04% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=8&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) The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards during the reporting period - The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[25](index=25&type=chunk) - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[26](index=26&type=chunk) [Non-recurring Gains and Losses 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) The company's total non-recurring gains and losses for the reporting period amounted to **16.35 million RMB**, primarily from gains/losses on entrusted investments or asset management and government subsidies, while non-current asset disposal gains/losses and fair value change gains/losses were negative Non-recurring Gains and Losses and Amounts for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -0.30 million RMB | | Government Grants Recognized in Current P/L | 7.88 million RMB | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-financial Enterprises | -2.28 million RMB | | Gains/Losses from Entrusted Investments or Asset Management | 16.14 million RMB | | Other Non-operating Income and Expenses Apart from the Above | -2.26 million RMB | | Less: Income Tax Impact | 2.68 million RMB | | Minority Interest Impact (After Tax) | 0.14 million RMB | | **Total** | **16.35 million RMB** | - The company has no other specific situations of profit or loss items meeting the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring profit or loss items[29](index=29&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an overview of Management Discussion and Analysis including key details and analyses [Company's Main Business During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company primarily engages in R&D, production, and sales of textile dyes, printing and dyeing auxiliaries, and chemical raw materials, with dye production capacity ranking among the top two domestically; the company adheres to a 'backward integration' strategy, increasing environmental protection and R&D investments, achieving growth in both revenue and net profit during the reporting period - The company primarily engages in R&D, production, and sales of textile dyes, printing and dyeing auxiliaries, and chemical raw materials, with an annual total dye production capacity of nearly **238,000 tons**, maintaining a market share among the top two domestically[31](index=31&type=chunk) - The company operates with an independent R&D, production, and sales model, maintaining long-term stable relationships with major suppliers in procurement and establishing a complete domestic and foreign trade system in sales[31](index=31&type=chunk) - The company continues to deepen its 'backward integration' strategy, extending its industrial chain upstream, increasing investment in environmental protection technological upgrades and R&D, and promoting a circular economy and green, safe production[32](index=32&type=chunk) Key Operating Performance for H1 2025 | Metric | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 2.71 billion RMB | 0.65% | | Operating Profit | 205.19 million RMB | 8.78% | | Net Profit Attributable to Listed Company Shareholders | 149.71 million RMB | 43.15% | | Basic Earnings Per Share | 0.13 | - | [Analysis of Core Competencies](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's core competencies include brand advantage (China Well-known Trademark), scale and market channel advantages (top two domestic market share), a complete industrial chain (backward integration), technological R&D strength (multiple patents), and a circular economy model - Brand advantage: Owns '闰土' and '瑞华素' China Well-known Trademarks, with products recognized as Zhejiang Famous Brands, enhancing market visibility and brand premium[33](index=33&type=chunk) - Scale and market channel advantages: Annual total dye production capacity of nearly **238,000 tons**, market share consistently among the top two domestically, sales network across the country, and an experienced marketing team[34](index=34&type=chunk) - Complete industrial chain advantage: Implements a 'backward integration' strategy, forming a complete industrial chain from thermal power, steam, chlorine, caustic soda to intermediates, filter cakes, and dyes, reducing costs and enhancing risk resistance capabilities[35](index=35&type=chunk) - Technological R&D advantage: Invested **133 million RMB** in R&D during the reporting period, obtained **1** authorized invention patent and **1** utility model patent, accumulating **279** authorized invention patents, effectively reducing environmental pressure and production costs[36](index=36&type=chunk)[37](index=37&type=chunk) - Circular economy advantage: Recycles resources such as waste sulfuric acid, nitration waste acid, acetic acid, and bromine in the dye production process, achieving comprehensive and complementary resource utilization, reducing emissions, and increasing economic benefits[38](index=38&type=chunk) [Main Business Analysis](index=11&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) The company's main business revenue increased by **0.65%** year-on-year, with dye and auxiliary revenue growing by **4.53%** and **25.57%** respectively; gross margin for specialized chemical products improved by **3.42%**, and export sales increased by **32.99%**; net cash flow from operating activities surged by **351.36%**, primarily due to increased sales collections and reduced taxes and fees Year-on-Year Changes in Key Financial Data | Metric | Current Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2.71 billion RMB | 2.69 billion RMB | 0.65% | - | | Operating Cost | 2.18 billion RMB | 2.23 billion RMB | -2.42% | - | | Selling Expenses | 15.86 million RMB | 18.54 million RMB | -14.44% | - | | Administrative Expenses | 167.33 million RMB | 193.14 million RMB | -13.36% | - | | Financial Expenses | -0.62 million RMB | -23.45 million RMB | N/A | Primarily due to a decrease in interest income compared to the prior period | | Income Tax Expense | 47.91 million RMB | 68.29 million RMB | -29.83% | - | | R&D Investment | 133.04 million RMB | 103.50 million RMB | 28.55% | - | | Net Cash Flow from Operating Activities | 429.47 million RMB | 95.15 million RMB | 351.36% | Primarily due to increased cash received from sales of goods and services and decreased tax payments compared to the prior period | | Net Cash Flow from Investing Activities | -287.71 million RMB | 241.60 million RMB | -219.08% | Primarily due to a decrease in net cash from investment recovery and payments compared to the prior period | | Net Cash Flow from Financing Activities | -199.41 million RMB | -187.89 million RMB | N/A | - | | Net Increase in Cash and Cash Equivalents | -57.88 million RMB | 149.28 million RMB | -138.77% | Primarily due to a decrease in net cash from investment recovery and payments, and an increase in cash paid for debt repayment compared to the prior period | Composition of Operating Revenue | Category | Current Period Amount (RMB) | Share of Revenue | Prior Period Amount (RMB) | Share of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | **2.71 billion RMB** | **100%** | **2.69 billion RMB** | **100%** | **0.65%** | | **By Industry** | | | | | | | Specialized Chemical Products | 2.50 billion RMB | 92.52% | 2.47 billion RMB | 91.72% | 1.53% | | Other | 202.51 million RMB | 7.48% | 222.57 million RMB | 8.28% | -9.01% | | **By Product** | | | | | | | Dyes | 1.79 billion RMB | 66.31% | 1.72 billion RMB | 63.85% | 4.53% | | Auxiliaries | 93.02 million RMB | 3.44% | 74.08 million RMB | 2.76% | 25.57% | | Other Chemical Raw Materials | 616.05 million RMB | 22.77% | 675.15 million RMB | 25.11% | -8.75% | | Other | 202.51 million RMB | 7.48% | 222.57 million RMB | 8.28% | -9.01% | | **By Region** | | | | | | | Domestic Sales | 2.48 billion RMB | 91.64% | 2.52 billion RMB | 93.67% | -1.53% | | Export Sales | 226.33 million RMB | 8.36% | 170.18 million RMB | 6.33% | 32.99% | Industries, Products, or Regions Accounting for Over 10% of Company's Operating Revenue or Profit | Category | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Revenue | YoY Change in Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Specialized Chemical Products | 2.50 billion RMB | 2.03 billion RMB | 18.86% | 1.53% | -2.58% | 3.42% | | **By Product** | | | | | | | | Dyes | 1.79 billion RMB | 1.48 billion RMB | 17.48% | 4.53% | 1.44% | 2.51% | | Auxiliaries | 93.02 million RMB | 90.87 million RMB | 2.32% | 25.57% | 24.90% | 0.53% | | Other Chemical Raw Materials | 616.05 million RMB | 459.71 million RMB | 25.38% | -8.75% | -16.80% | 7.22% | | **By Region** | | | | | | | | Domestic Sales | 2.28 billion RMB | 1.84 billion RMB | 19.01% | -0.81% | -5.06% | 3.63% | | Export Sales | 226.33 million RMB | 187.14 million RMB | 17.32% | 32.99% | 31.28% | 1.08% | [Non-Main 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%88%86%E6%9E%90) The company's non-main business had some impact on total profit, with investment income accounting for **12.99%**, mainly from long-term equity investment income accounted for under the equity method and other non-current financial asset investment income; fair value change gains/losses and asset impairment had a negative impact Impact of Non-Main Business on Total Profit | Item | Amount (RMB) | Share of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 26.12 million RMB | 12.99% | Primarily due to investment income from long-term equity investments accounted for under equity method and other non-current financial assets during the holding period | No | | FV Change P/L | -2.28 million RMB | -1.14% | Primarily due to fair value changes in Runtu Jinheng investment projects | No | | Asset Impairment | -14.19 million RMB | -7.06% | Primarily due to provision for inventory impairment and long-term asset impairment in the current period | No | | Non-Operating Income | 1.07 million RMB | 0.53% | Primarily due to compensation gains and other gains received in the current period | No | | Non-Operating Expenses | 5.24 million RMB | 2.61% | Primarily due to charitable donations | No | [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) The company's asset and liability structure remained stable, with a slight decrease in total assets and net assets; accounts receivable and long-term equity investments increased, while short-term borrowings and financial assets held for trading also grew significantly; overseas assets primarily include Yorkshire Chemical and Runtu International, both achieving profitability Significant Changes in Asset Composition | Item | End of Current Period (RMB) | Share of Total Assets | End of Prior Year (RMB) | Share of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1.17 billion RMB | 10.23% | 1.18 billion RMB | 10.32% | -0.09% | - | | Accounts Receivable | 1.35 billion RMB | 11.75% | 975.15 million RMB | 8.51% | 3.24% | Primarily due to increased credit sales in the current period | | Inventories | 1.62 billion RMB | 14.11% | 1.60 billion RMB | 13.94% | 0.17% | - | | Long-term Equity Investments | 929.39 million RMB | 8.11% | 794.93 million RMB | 6.93% | 1.18% | Primarily due to increased external investments in the current period | | Fixed Assets | 2.61 billion RMB | 22.73% | 2.79 billion RMB | 24.32% | -1.59% | - | | Short-term Borrowings | 385.10 million RMB | 3.36% | 1.35 million RMB | 0.01% | 3.35% | Primarily due to an increase in short-term borrowings in the current period | | Notes Payable | 537.20 million RMB | 4.69% | 410.28 million RMB | 3.58% | 1.11% | Primarily due to an increase in bank acceptance bills issued in the current period | | Non-current Liabilities Due Within One Year | 0.00 RMB | 0% | 400.29 million RMB | 3.49% | -3.49% | Primarily due to repayment of long-term borrowings due within one year in the current period | | Financial Assets at FVTPL | 605.82 million RMB | 5.29% | 442.13 million RMB | 3.86% | 1.43% | Primarily due to an increase in wealth management products held at period-end | Major Overseas Assets | Asset Details | Asset Scale (RMB million) | Location | Profitability (RMB million) | Share of Overseas Assets in Net Assets | | :--- | :--- | :--- | :--- | :--- | | Yorkshire Chemical | 734.44 million RMB | Hong Kong, China | 37.91 million RMB (net profit) | 7.64% | | Runtu International | 1.13 billion RMB | Hong Kong, China | 26.86 million RMB (net profit) | 11.76% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | FV Change P/L (RMB) | Purchases (RMB) | Sales (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets at FVTPL | 442.13 million RMB | 0.60 million RMB | 1.03 billion RMB | 863.06 million RMB | 605.82 million RMB | | Accounts Receivable Financing | 1.64 billion RMB | - | 2.06 billion RMB | 2.57 billion RMB | 1.13 billion RMB | | Other Non-current Financial Assets | 598.44 million RMB | -2.88 million RMB | 6.00 million RMB | 7.45 million RMB | 594.11 million RMB | | **Total** | **2.68 billion RMB** | **-2.28 million RMB** | **3.09 billion RMB** | **3.44 billion RMB** | **2.33 billion RMB** | Asset Rights Restriction Status as of the End of the Reporting Period | Item | Ending Book Value (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 73.25 million RMB | Bank Acceptance Bill Deposit | | Cash and Cash Equivalents | 0.16 million RMB | Litigation Account Frozen | | Cash and Cash Equivalents | 18,000.00 RMB | ETC Deposit | | Cash and Cash Equivalents | 844.26 RMB | Safety and Environmental Risk Deposit | | Cash and Cash Equivalents | 88,851.18 RMB | Deposit Account Balance | | Cash and Cash Equivalents | 274.52 RMB | FX Settlement Deposit | | **Total** | **73.51 million RMB** | - | [Analysis of Investment Status](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's total investment for the reporting period was **1.18 billion RMB**, a year-on-year decrease of **22.19%**; there were no significant equity or non-equity investments, no securities or derivatives investments, and no use of raised funds Investment Amount During the Reporting Period | Metric | Amount (RMB) | | :--- | :--- | | Investment Amount | 1.18 billion RMB | | Prior Period Investment Amount | 1.51 billion RMB | | Change Rate | -22.19% | - The company had no securities investments or derivative investments during the reporting period[55](index=55&type=chunk)[56](index=56&type=chunk) - The company had no use of raised funds during the reporting period[57](index=57&type=chunk) [Significant Asset and Equity Disposals](index=15&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) The company did not experience any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[58](index=58&type=chunk) - The company did not dispose of significant equity during the reporting period[59](index=59&type=chunk) [Analysis of Major Holding and Participating Companies](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 company's major subsidiaries include Jiacheng Chemical, Ruihua Chemical, Dibang Chemical, Runtu New Materials, Runtu Thermal Power, and Yorkshire Chemical, among others; Ruihua Chemical, Dibang Chemical, Runtu New Materials, and Runtu Thermal Power all achieved profitability, while Jiangsu Mingsheng and Jiangsu Yuanzheng incurred losses Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Main Business | Registered Capital (RMB million) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiacheng Chemical | Dyes, chemical intermediates, textile printing and dyeing auxiliaries | 393.14 million RMB | 618.96 million RMB | 560.89 million RMB | 228.70 million RMB | -12.45 million RMB | -8.77 million RMB | | Ruihua Chemical | Production of reactive dyes, sales of self-produced products | 129.80 million USD | 2.05 billion RMB | 1.62 billion RMB | 627.09 million RMB | 51.73 million RMB | 46.80 million RMB | | Dibang Chemical | Dye, diethyl production, sales | 49.30 million USD | 981.05 million RMB | 830.61 million RMB | 544.87 million RMB | 22.46 million RMB | 21.74 million RMB | | Jiangsu Mingsheng | Chemical product intermediate production, sales | 280.00 million RMB | 208.56 million RMB | -292.53 million RMB | 1,319.62 RMB | -15.64 million RMB | -15.64 million RMB | | Jiangsu Yuanzheng | Dyes and intermediates production, sales | 500.00 million RMB | 550.19 million RMB | 190.16 million RMB | 225.33 million RMB | -23.62 million RMB | -23.19 million RMB | | Runtu New Materials | Production and sales of basic chemical raw materials and chemical products | 250.00 million RMB | 1.18 billion RMB | 1.09 billion RMB | 600.35 million RMB | 115.08 million RMB | 92.69 million RMB | | Runtu Thermal Power | Thermal power technical services, hot water and steam supply | 150.00 million RMB | 409.72 million RMB | 387.24 million RMB | 266.71 million RMB | 100.07 million RMB | 75.04 million RMB | | Yorkshire Chemical | Investment and Trade | 12.50 million USD | 937.03 million RMB | 734.44 million RMB | 410.65 million RMB | 43.35 million RMB | 37.91 million RMB | - The company did not acquire or dispose of subsidiaries during the reporting period[60](index=60&type=chunk) [Information on Structured Entities Controlled by the Company](index=16&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 had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[61](index=61&type=chunk) [Risks Faced by the Company and Countermeasures](index=16&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 macroeconomic and industrial policies, safety production, environmental protection investment, and market competition; it will actively respond by closely monitoring macroeconomic trends, increasing safety and environmental protection investments, and flexibly adjusting market strategies - Risk of macroeconomic and industrial policy changes: The company will closely monitor national macroeconomic trends and adjust development strategies and operating models as appropriate[61](index=61&type=chunk) - Safety risk: The company will always adhere to the 'safety, environmental protection, efficiency' business philosophy, increase investment in safety production, and promote advanced management methods[62](index=62&type=chunk) - Environmental risk: The company will strictly manage environmental protection, increase investment, and ensure raw material procurement is aligned with market trends[63](index=63&type=chunk) - Market risk: The company will adopt flexible countermeasures, promptly assess market and industry dynamics, adjust procurement and sales strategies, and control costs to the maximum extent possible[64](index=64&type=chunk) [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 formulated and implemented a market value management system, enhancing market value through standardized corporate governance, improved information disclosure quality, and strengthened investor relations management; in 2024, the company implemented high-proportion cash dividends and share repurchases, actively rewarding investors - The company has formulated the 'Zhejiang Runtu Co., Ltd. Market Value Management System', which was reviewed and approved by the board of directors on April 26, 2025, and is now in effect[65](index=65&type=chunk) - The company lays a solid foundation for market value management by continuously improving corporate governance, enhancing information disclosure quality, and strengthening investor relations management[65](index=65&type=chunk) - In 2024, the company distributed cash dividends of **164.10 million RMB**, accounting for **76.87%** of net profit attributable to shareholders[66](index=66&type=chunk) - In 2024, the company repurchased **30,000,016 shares** for a total transaction value of **177.92 million RMB**, enhancing investor confidence[66](index=66&type=chunk) [Implementation of the 'Dual Improvement in Quality and Returns' Action Plan](index=17&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%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 did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan - The company did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[67](index=67&type=chunk) [Corporate Governance, Environment, and Society](index=18&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) This section provides an overview of Corporate Governance, Environment, and Society including key details and analyses [Changes in Directors, Supervisors, and Senior Management](index=18&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, company supervisors Luo Yijia and Xu Tianfeng resigned due to supervisory board reform Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | 罗宜家 | Supervisor | Resignation | May 23, 2025 | Supervisory Board Reform | | 徐添锋 | Supervisor | Resignation | May 23, 2025 | Supervisory Board Reform | [Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period](index=18&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 plans no cash dividend distribution, no bonus shares, and no capital increase from capital reserves for the semi-annual period - The company plans no cash dividend distribution, no bonus shares, and no capital increase from capital reserves for the semi-annual period[70](index=70&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=18&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 and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[71](index=71&type=chunk) [Environmental Information Disclosure](index=18&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 11 major subsidiaries are included in the list of enterprises required to disclose environmental information by law, and have done so through the enterprise environmental information disclosure systems of Zhejiang, Jiangsu, and Guangdong Provincial Ecological Environment Departments - The listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, totaling **11** enterprises[72](index=72&type=chunk) - Environmental information disclosure reports for each subsidiary can be accessed through the enterprise environmental information disclosure systems of Zhejiang, Jiangsu, and Guangdong Provincial Ecological Environment Departments[72](index=72&type=chunk)[73](index=73&type=chunk) [Social Responsibility](index=19&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 is committed to protecting shareholder and creditor rights, rewarding investors through improved governance structure and high-proportion cash dividends; it also prioritizes employee rights, builds strategic partnerships with suppliers and customers, and actively participates in environmental protection and social welfare initiatives - Shareholder and creditor rights protection: Established a sound corporate governance structure and internal control system, ensuring timely, truthful, accurate, and complete information disclosure, and rewarding investors through high-proportion cash dividends (totaling **4.88 billion RMB**)[74](index=74&type=chunk) - Employee rights protection: Strictly complies with labor laws and regulations, established human resource systems, emphasizes talent development, provides career planning and training, and implements position-based compensation[75](index=75&type=chunk) - Supplier and customer rights protection: Adheres to the principles of 'voluntariness, equality, mutual benefit', builds strategic partnerships, focuses on communication and coordination, and maintains good contract performance[76](index=76&type=chunk) - Environmental protection and sustainable development: Upholds the 'safety, environmental protection, efficiency' business philosophy, strictly manages wastewater, exhaust gas, and solid waste, continuously strengthens investment in environmental protection technological upgrades, and is committed to building a green chemical enterprise[77](index=77&type=chunk) - Social welfare: Upholds the 'Houde' corporate spirit, actively engages in charity and public welfare, with total external donations of **2.15 million RMB** during the reporting period, and established multiple named charitable funds[78](index=78&type=chunk) [Significant Matters](index=20&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) This section provides an overview of Significant Matters including key details and analyses [Commitments Fulfilled and Overdue Unfulfilled by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=20&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) The company's actual controllers and major shareholders have honored their commitments, with no violations of non-compete agreements - Commitment parties including Ruan Jingxi, Zhang Aijuan, Ruan Jiachun, Ruan Jingbo, Zhang Yunda, and Ruan Jixiang have all honored their commitments, with no violations of non-compete agreements[80](index=80&type=chunk) [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) The company had 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[81](index=81&type=chunk) [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[82](index=82&type=chunk) [Appointment and Dismissal of Accounting Firms](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 was unaudited - The company's semi-annual report was unaudited[83](index=83&type=chunk) [Board of Directors' and Supervisory Board's Explanations on 'Non-Standard Audit Reports' for the Current Period](index=20&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%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%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit reports during the reporting period, thus no explanation is required - The company had no non-standard audit reports during the reporting period[84](index=84&type=chunk) [Board of Directors' Explanations on 'Non-Standard Audit Reports' for the Prior 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%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit reports in the prior year, thus no explanation is required - The company had no non-standard audit reports in the prior year[84](index=84&type=chunk) [Bankruptcy 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 experience any bankruptcy reorganization matters during the reporting period - The company did not experience any bankruptcy reorganization matters during the reporting period[85](index=85&type=chunk) [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 had no significant litigation or arbitration matters during the reporting period; the total amount involved in closed cases not meeting the significant litigation disclosure standard was **32.69 million RMB**, of which **10.40 million RMB** has been fulfilled and **22.29 million RMB** remains unfulfilled - The company had no significant litigation or arbitration matters during the current reporting period[86](index=86&type=chunk) Summary of Closed Litigation Cases Not Meeting Significant Disclosure Standards | Litigation/Arbitration Details | Amount Involved (RMB million) | Provision for Liability | Progress | Execution Status | | :--- | :--- | :--- | :--- | :--- | | Summary of Closed Litigation Cases Not Meeting Significant Disclosure Standards | 32.69 million RMB | No | Closed | 10.40 million RMB fulfilled; 22.29 million RMB unfulfilled | [Penalties and Rectification](index=21&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 had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[87](index=87&type=chunk) [Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=21&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) During the reporting period, the company, its controlling shareholders, and actual controllers maintained good credit standing, with no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained good credit standing, with no unfulfilled effective court judgments or large overdue debts[88](index=88&type=chunk) [Significant Related Party Transactions](index=21&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) The company had related party transactions related to daily operations during the reporting period, primarily including receiving solid waste treatment services from Zhonglian Environmental and selling materials to Weihua New Materials, both within approved limits; there were no related party transactions involving asset or equity acquisition/disposal, joint external investment, or related party creditor/debtor relationships Related Party Transactions Related to Daily Operations | Related Party | Related Party Transaction Type | Transaction Content | Transaction Amount (RMB million) | Approved Limit (RMB million) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | 绍兴市上虞众联环保有限公司 | Services Received | Solid Waste Treatment | 0.90 million RMB | 15.00 million RMB | No | | 浙江巍华新材料股份有限公司 | Sale of Goods | Material Sales | 64.54 million RMB | 200.00 million RMB | No | - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[91](index=91&type=chunk) - The company had no related party transactions involving joint external investment during the reporting period[92](index=92&type=chunk) - The company had no related party creditor/debtor relationships during the reporting period[93](index=93&type=chunk) - The company had no deposits, loans, credit lines, or other financial business with related financial companies[94](index=94&type=chunk)[95](index=95&type=chunk) - Other significant related party transactions include business entertainment expenses of **0.27 million RMB** incurred at Shaoxing Shangyu Runtu Hotel and lease income of **0.09 million RMB** recognized from Shaoxing Shangyu Runxing Microfinance Co., Ltd. leasing company property[96](index=96&type=chunk) [Significant 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 had no entrustment, contracting, or leasing matters during the reporting period; it had external guarantees and guarantees for subsidiaries, with the total guarantee amount accounting for **3.44%** of net assets; the outstanding balance of entrusted wealth management products was **1.09 billion RMB**, primarily bank and brokerage wealth management products, with no overdue unrecovered amounts - The company had no entrustment, contracting, or leasing situations during the reporting period[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) External Guarantees by the Company and its Subsidiaries | Guaranteed Party | Guarantee Limit (RMB million) | Actual Guarantee Amount (RMB million) | Guarantee Type | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | 华聚能源 | 45.04 million RMB | 24.69 million RMB | Joint and Several Liability Guarantee | No | Yes | | 华聚能源 | 45.04 million RMB | 12.13 million RMB | Joint and Several Liability Guarantee | No | Yes | | **Total Approved External Guarantees (A1) (RMB million)** | **45.04 million RMB** | **Total Actual External Guarantees (A2) (RMB million)** | **36.82 million RMB** | | | | **Total Approved External Guarantees at Period-End (A3) (RMB million)** | **45.04 million RMB** | **Total Actual External Guarantees at Period-End (A4) (RMB million)** | **36.82 million RMB** | | | Guarantees by the Company for its Subsidiaries | Guaranteed Party | Guarantee Limit (RMB million) | Actual Guarantee Amount (RMB million) | Guarantee Type | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | 约克夏浙江 | 200.00 million RMB | 30.00 million RMB | Joint and Several Liability Guarantee | Yes | No | | 约克夏浙江 | 200.00 million RMB | 40.00 million RMB | Joint and Several Liability Guarantee | Yes | No | | 瑞华化工 | 400.00 million RMB | 27.45 million RMB | Joint and Several Liability Guarantee | Yes | No | | 瑞华化工 | 400.00 million RMB | 30.00 million RMB | Joint and Several Liability Guarantee | Yes | No | | 瑞华化工 | 400.00 million RMB | 43.90 million RMB | Joint and Several Liability Guarantee | Yes | No | | 瑞华化工 | 400.00 million RMB | 41.50 million RMB | Joint and Several Liability Guarantee | Yes | No | | 瑞华化工 | 400.00 million RMB | 43.00 million RMB | Joint and Several Liability Guarantee | Yes | No | | 瑞华化工 | 400.00 million RMB | 81.40 million RMB | Joint and Several Liability Guarantee | No | No | | 瑞华化工 | 400.00 million RMB | 69.65 million RMB | Joint and Several Liability Guarantee | No | No | | 瑞华化工 | 400.00 million RMB | 58.20 million RMB | Joint and Several Liability Guarantee | No | No | | 瑞华化工 | 400.00 million RMB | 68.60 million RMB | Joint and Several Liability Guarantee | No | No | | 闰华数码 | 20.00 million RMB | 1.42 million RMB | Joint and Several Liability Guarantee | No | No | | 闰华数码 | 20.00 million RMB | 5.00 million RMB | Joint and Several Liability Guarantee | No | No | | 闰华数码 | 20.00 million RMB | 0.27 million RMB | Joint and Several Liability Guarantee | No | No | | 闰华数码 | 20.00 million RMB | 0.53 million RMB | Joint and Several Liability Guarantee | No | No | | **Total Approved Guarantees for Subsidiaries (B1) (RMB million)** | **1.19 billion RMB** | **Total Actual Guarantees for Subsidiaries (B2) (RMB million)** | **540.92 million RMB** | | | | **Total Approved Guarantees for Subsidiaries at Period-End (B3) (RMB million)** | **1.19 billion RMB** | **Total Actual Guarantees for Subsidiaries at Period-End (B4) (RMB million)** | **285.07 million RMB** | | | - The total actual guarantee amount accounted for **3.44%** of the company's net assets[103](index=103&type=chunk) Entrusted Wealth Management | Type | Entrusted Wealth Management Amount (RMB million) | Outstanding Balance (RMB million) | Overdue Unrecovered Amount (RMB million) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | 380.00 million RMB | 870.00 million RMB | 0 | | Brokerage Wealth Management Products | 143.00 million RMB | 70.00 million RMB | 0 | | Trust Wealth Management Products | 0 | 150.00 million RMB | 0 | | **Total** | **523.00 million RMB** | **1.09 billion RMB** | **0** | - The company had no other significant contracts during the reporting period[108](index=108&type=chunk)[109](index=109&type=chunk) [Explanation of Other Significant Matters](index=27&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) The company's 2024 annual general meeting approved the profit distribution plan to distribute a cash dividend of **1.5 RMB** (tax inclusive) per 10 shares to all shareholders, based on the total share capital after deducting repurchased shares, totaling **164.10 million RMB** - The company's 2024 annual general meeting approved the profit distribution plan: based on **1,093,999,889 shares**, a cash dividend of **1.5 RMB** (tax inclusive) per 10 shares will be distributed to all shareholders, totaling **164.10 million RMB**[110](index=110&type=chunk)[111](index=111&type=chunk) - The equity distribution record date is June 17, 2025, and the ex-dividend date is June 18, 2025[111](index=111&type=chunk) [Significant Matters of Company Subsidiaries](index=27&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) Subsidiary Jiangsu Mingsheng Chemical Co., Ltd. has been in a state of production suspension since May 2023 and has continuously implemented staff reduction and cost-cutting measures - Subsidiary Jiangsu Mingsheng Chemical Co., Ltd. has been in a state of production suspension since May 2023 and has continuously implemented staff reduction and cost-cutting measures since July 2023[112](index=112&type=chunk) [Share Changes and Shareholder Information](index=28&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) This section provides an overview of Share Changes and Shareholder Information including key details and analyses [Share Changes](index=28&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 during the reporting period, but restricted shares slightly increased due to supervisory board reform, with a corresponding decrease in unrestricted shares; the company completed a share repurchase in 2024, repurchasing **30,000,016 shares** for a total of **177.92 million RMB** Share Changes | Category | Shares Before Change | Proportion Before Change | Change in Shares | Shares After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 177,640,477 | 15.80% | 759 | 177,641,236 | 15.80% | | II. Unrestricted Shares | 946,359,428 | 84.20% | -759 | 946,358,669 | 84.20% | | III. Total Shares | 1,123,999,905 | 100.00% | 0 | 1,123,999,905 | 100.00% | - The reason for share changes was the company's supervisory board reform, leading to a corresponding portion of shares held by former supervisors being locked[114](index=114&type=chunk) - The company completed a share repurchase on April 24, 2025, repurchasing **30,000,016 shares**, accounting for **2.6690%** of the total share capital, with a total transaction value of **177.92 million RMB**[116](index=116&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning (shares) | Increase in Restricted Shares (shares) | Restricted Shares at End (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | 阮静波 | 135,998,290 | 0 | 135,998,290 | Executive Restricted Shares | | 阮加春 | 38,593,370 | 0 | 38,593,370 | Executive Restricted Shares | | 丁兴成 | 750,000 | 0 | 750,000 | Executive Restricted Shares | | 张志峰 | 956,250 | 0 | 956,250 | Executive Restricted Shares | | 罗宜家 | 2,278 | 759 | 3,037 | Executive Restricted Shares | | 周成余 | 839,214 | 0 | 839,214 | Executive Restricted Shares | | 景浙湖 | 501,075 | 0 | 501,075 | Executive Restricted Shares | | **Total** | **177,640,477** | **759** | **177,641,236** | - | [Securities Issuance and Listing](index=29&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 had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[119](index=119&type=chunk) [Number of Shareholders and Shareholding Status](index=29&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **39,054** ordinary shareholders; among the top ten shareholders, Zhang Aijuan, Ruan Jingbo, Ruan Jingxi, and Ruan Jiachun were major shareholders with related party relationships; the company's dedicated share repurchase account held **30,000,016 shares** - The total number of ordinary shareholders at the end of the reporting period was **39,054**[120](index=120&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | 张爱娟 | Domestic Natural Person | 17.12% | 192,454,893 | 0 | 192,454,893 | | 阮静波 | Domestic Natural Person | 16.13% | 181,331,054 | 135,998,290 | 45,332,764 | | 阮靖淅 | Domestic Natural Person | 5.71% | 64,151,863 | 0 | 64,151,863 | | 阮加春 | Domestic Natural Person | 4.58% | 51,457,827 | 38,593,370 | 12,864,457 | | 洪泽君 | Domestic Natural Person | 3.84% | 43,200,000 | 0 | 43,200,000 | | 阮华林 | Domestic Natural Person | 1.08% | 12,130,000 | 0 | 12,130,000 | | 嘉实基金－农业银行－嘉实中证金融资产管理计划 | Other | 1.02% | 11,452,450 | 0 | 11,452,450 | | 银华基金－农业银行－银华中证金融资产管理计划 | Other | 0.98% | 10,988,761 | 0 | 10,988,761 | | 博时基金－农业银行－博时中证金融资产管理计划 | Other | 0.88% | 9,853,600 | 0 | 9,853,600 | | 工银瑞信基金－农业银行－工银瑞信中证金融资产管理计划 | Other | 0.88% | 9,836,700 | 0 | 9,836,700 | - Ruan Jingbo, Zhang Aijuan, and Ruan Jingxi are the company's controlling shareholders; Ruan Jiachun is Ruan Jingbo's uncle, Zhang Aijuan is Ruan Jingbo's mother, and Ruan Jingxi is Ruan Jingbo's sister[121](index=121&type=chunk) - As of April 25, 2025, the company's dedicated share repurchase account held **30,000,016 shares**, accounting for **2.6690%** of the company's total share capital[121](index=121&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=31&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; details can be found in the 2024 annual report[123](index=123&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=31&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) Neither the company's controlling shareholder nor actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[124](index=124&type=chunk) - The company's actual controller did not change during the reporting period[124](index=124&type=chunk) [Preferred Share Information](index=31&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 shares during the reporting period - The company had no preferred shares during the reporting period[125](index=125&type=chunk) [Bond-Related Information](index=31&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) This section provides an overview of Bond-Related Information including key details and analyses [Bond-Related Information](index=31&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 information during the reporting period - The company had no bond-related information during the reporting period[127](index=127&type=chunk) [Financial Report](index=32&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) This section provides an overview of Financial Report including key details and analyses [Audit Report](index=32&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 was unaudited - The company's semi-annual financial report was unaudited[129](index=129&type=chunk) [Financial Statements](index=32&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation - Financial statements include the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[130](index=130&type=chunk)[134](index=134&type=chunk)[138](index=138&type=chunk)[141](index=141&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk)[155](index=155&type=chunk) [Company Basic Information](index=49&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 Runtu Co., Ltd. was established in 2004, listed on the Shenzhen Stock Exchange in 2010, with a registered capital of **1.12 billion RMB**; the company's main business is R&D, production, and sales of textile dyes, printing and dyeing auxiliaries, and chemical raw materials, with Zhang Aijuan, Ruan Jingbo, Ruan Jiachun, Ruan Jingxi, and Ruan Jixiang as actual controllers - Zhejiang Runtu Co., Ltd. was established in 2004 and listed on the Shenzhen Stock Exchange on July 6, 2010[165](index=165&type=chunk) - As of June 30, 2025, the company's total issued share capital was **1,123,999,905 shares**, with a registered capital of **1.12 billion RMB**[166](index=166&type=chunk) - The company's main business scope includes R&D, production, and sales of textile dyes, printing and dyeing auxiliaries, and chemical raw materials, as well as import and export business[166](index=166&type=chunk) - The company's actual controllers are Zhang Aijuan, Ruan Jingbo, Ruan Jiachun, Ruan Jingxi, and Ruan Jixiang[166](index=166&type=chunk) [Basis of Financial Statement Preparation](index=49&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) These financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, and on a going concern basis - These financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and relevant provisions of the China Securities Regulatory Commission's 'Reporting Rules for Information Disclosure by Companies Issuing Securities No. 15 – General Provisions for Financial Reports'[167](index=167&type=chunk) - These financial statements are prepared on a going concern basis[168](index=168&type=chunk) [Significant Accounting Policies and Estimates](index=49&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 elaborates on the company's statement of compliance with Enterprise Accounting Standards, accounting period, operating cycle, functional currency, materiality standards, business combinations, consolidated financial statement preparation, financial instruments, revenue recognition, government grants, deferred income tax, and other significant accounting policies and estimates, also stating that changes in accounting policies had no significant impact on financial position - These financial statements comply with the requirements of the Enterprise Accounting Standards issued by the Ministry of Finance, truly and completely reflecting the consolidated and parent company's financial position as of June 30, 2025, and the consolidated and parent company's operating results and cash flows for January-June 2025[169](index=169&type=chunk) - The company's operating cycle is **12 months**, and it uses RMB as its functional currency[171](index=171&type=chunk)[172](index=172&type=chunk) - Materiality standards: Significant individual accounts receivable for which bad debt provisions are made exceed **10 million RMB**; significant construction-in-progress projects have budget amounts exceeding **10 million RMB**; significant non-wholly owned subsidiaries have total assets and absolute total profit exceeding **50 million RMB**[173](index=173&type=chunk) - Financial instruments are classified as financial assets and liabilities measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[183](index=183&type=chunk)[184](index=184&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Revenue recognition: Revenue is recognized when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services; domestic sales are recognized upon customer receipt, and international sales upon product customs declaration for export and shipment[232](index=232&type=chunk)[234](index=234&type=chunk) - Changes in accounting policies: Implementation of new regulations such as 'Interpretation No. 17 of Enterprise Accounting Standards' and 'Interim Provisions on Accounting Treatment of Enterprise Data Resources' had no significant impact on th