Core Viewpoint - The issuance of "Jinwei Convertible Bonds" has a remarkably low subscription rate of 0.0024%, making it one of the most difficult bonds to acquire this year. The bond issuance is part of the company's expansion plan, but it is overshadowed by declining profit margins and increasing debt levels [1][2]. Fundraising and Strategic Expansion - Jinwei raised 1.292 billion yuan through the issuance of convertible bonds, marking its largest refinancing move in recent years. The high proportion of preferential allocation to existing shareholders (83.49%) indicates strong confidence from major shareholders, while also serving to protect their control [2][3]. - Approximately 60% of the raised funds will be directed towards specific construction projects, with a significant focus on expanding the production capacity of its flagship product, coenzyme Q10, and investing over 460 million yuan in new product areas such as allulose and inositol [2][3]. Financial Performance and Concerns - In the first half of 2025, Jinwei reported a revenue of 1.728 billion yuan, a year-on-year increase of 13.46%, and a net profit of 247 million yuan, up 90.12% [5]. - Despite the apparent growth, the company faces challenges regarding the quality of its earnings and assets, with a notable decline in the profitability of its core products [6][7]. - The gross margin of coenzyme Q10 has decreased from 77.57% in 2020 to 48.2% in 2024, indicating a loss of competitive advantage [10][13]. Debt and Cash Flow Issues - Jinwei's total liabilities reached 2.303 billion yuan in the first quarter of this year, a significant year-on-year increase of 48.74%. The company has experienced rapid debt growth for two consecutive years [14][15]. - The company has seen a sharp rise in short-term debt, with short-term borrowings increasing from 58 million yuan in 2023 to 661 million yuan in the first half of this year, reflecting a 252% increase [14][15]. - Cash flow from investment activities has been negative for four consecutive years, totaling 1.307 billion yuan, indicating financial strain due to aggressive expansion strategies [16]. Market Risks and Strategic Challenges - Jinwei's expansion into unfamiliar product areas such as allulose and inositol poses significant risks, as the company has not previously marketed these products [4]. - The sweetener market is highly competitive, and Jinwei's ability to capture market share as a latecomer remains uncertain, raising concerns about the synergy with its core business [4]. - The company has accumulated goodwill of 515 million yuan, which constitutes 11.9% of its net assets, primarily from acquisitions of overseas brands. However, there are risks of goodwill impairment if these acquisitions do not meet performance expectations [18][19]. Currency and Economic Exposure - Jinwei's overseas revenue reached 2.566 billion yuan in 2024, accounting for 79.2% of total revenue, making it vulnerable to currency fluctuations, particularly with the depreciation of the US dollar against the yuan [22]. - The company has benefited from foreign exchange gains in recent years, but potential shifts in currency trends could lead to losses, impacting overall profitability [22].

智通财经APP讯，金达威(002626.SZ)发布2025年半年度报告，报告期内，公司实现营业收入17.28亿 元，同比增长13.46%。实现归属于上市公司股东的净利润2.47亿元，同比增长90.12%。实现归属于上市 公司股东的扣除非经常性损益的净利润2.41亿元，同比增长86.10%。基本每股收益0.41元。 ...

Core Insights - The company achieved operating revenue of 1.728 billion yuan, representing a year-on-year growth of 13.46% [1] - The net profit attributable to shareholders reached 247 million yuan, showing a significant year-on-year increase of 90.12% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 241 million yuan, reflecting an 86.10% year-on-year growth [1] - The basic earnings per share stood at 0.41 yuan [1]

财务报表 二○二五年半年度 厦门金达威集团股份有限公司 厦门金达威集团股份有限公司 厦门金达威集团股份有限公司 合并资产负债表（续） 2025 年 6 月 30 日 （除特别注明外，金额单位均为人民币元） | 负债和所有者权益 | 附注五 | 期末余额 | 上年年末余额 | | --- | --- | --- | --- | | 流动负债： | | | | | 短期借款 | （二十二） | 661,323,832.83 | 365,872,129.47 | | 向中央银行借款 | | | | | 拆入资金 | | | | | 交易性金融负债 | | | | | 衍生金融负债 | | | | | 应付票据 | （二十三） | 20,676,429.30 | 18,519,096.57 | | 应付账款 | （二十四） | 349,327,235.58 | 345,723,213.95 | | 预收款项 | | | | | 合同负债 | （二十五） | 10,952,519.36 | 18,435,322.18 | | 卖出回购金融资产款 | | | | | 吸收存款及同业存放 | | | | | 代理买卖证券款 ...

厦门金达威集团股份有限公司 2025 年 1-6 月 非经营性资金占用及其他关联资金往来情况汇总表 | | 内蒙古金达威药业有限公司 | 上市公司子公司 | 应收账款 | 0.00 | 15.09 | | 15.09 | 0.00- | 货款 | 经营性往来 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Kingdomway Nutrition Inc. | 上市公司子公司 | 应收账款 | 0.00 | 50.41 | | 50.41 | 0.00- | 货款 | 经营性往来 | | | 厦门金达威生物科技有限公司 | 上市公司子公司 | 应付账款 | 0.00 | 116.50 | | 116.50 | 0.00- | 货款 | 经营性往来 | | | 江苏诚信药业有限公司 | 上市公司子公司 | 应付账款 | 0.00 | 162.42 | | 162.42 | 0.00- | 货款 | 经营性往来 | | | 内蒙古金达威药业有限公司 | 上市公司子公司 | 应付账款 | 2,000.00 | 11, ...

证券代码：002626 证券简称：金达威 公告编号：2025-073 厦门金达威集团股份有限公司（以下简称"公司"）第九届董事会第五次会 议于 2025 年 8 月 27 日在厦门市海沧区公司五层会议室以现场结合通讯表决的方 式召开。本次会议通知已于 2025 年 8 月 21 日以通讯方式发出，并获全体董事确 认。本次会议由公司董事长江斌先生主持，公司董事会成员应到九人，实际参加 表决人数九人。公司副总经理、财务总监等高级管理人员亦列席了本次会议。本 次会议的召集、召开符合《中华人民共和国公司法》和公司章程的有关规定。 经与会董事认真审议，本次会议以现场结合通讯表决的方式审议通过了以下 议案： 一、 会议以 9 票同意、0 票反对、0 票弃权的表决结果审议通过《关于公司 2025 年半年度报告及摘要的议案》 经认真审阅《2025 年半年度报告》《2025 年半年度报告摘要》等资料，董 事会认为：编制和审议公司《2025 年半年度报告》与《2025 年半年度报告摘要》 的程序符合法律、法规和中国证监会的规定；报告内容真实、准确、完整地反映 了公司的实际情况，不存在任何虚假记载、误导性陈述或重大遗漏。 具体内容 ...

Core Insights - The company reported a revenue of 1.728 billion yuan for the first half of 2025, representing a year-on-year growth of 13.46% [1] - The net profit attributable to shareholders reached 247 million yuan, showing a significant year-on-year increase of 90.12% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 241 million yuan, reflecting an 86.10% year-on-year growth [1] - The basic earnings per share stood at 0.41 yuan [1]

Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=Important%20Notes) The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming corresponding legal responsibilities[4](index=4&type=chunk) - Company head Jiang Bin, chief accountant Hong Hang, and head of accounting department Huang Hongyun declare the financial report is true, accurate, and complete[4](index=4&type=chunk) [Risk Factors](index=2&type=section&id=Risk%20Factors) The company faces various operational risks, including exchange rate fluctuations, market competition, environmental costs, and international trade changes - Significant overseas sales expose the company to exchange rate fluctuations, potentially impacting profitability and foreign currency-denominated asset values[6](index=6&type=chunk) - Product market prices are subject to volatility due to raw materials, industry supply-demand, and customer behavior[7](index=7&type=chunk) - Raw material costs constitute a significant portion of operating costs, with price fluctuations directly affecting production costs and net profit[8](index=8&type=chunk) - The competitive nutritional and health food market necessitates continuous enhancement of product R&D, brand value, and channel development capabilities[9](index=9&type=chunk) - Increasingly stringent national environmental policies may lead to higher environmental compliance costs, impacting profitability[10](index=10&type=chunk) - The use of flammable and explosive chemicals in production poses risks of fire, explosion, and other safety incidents[11](index=11&type=chunk) - Nutritional and health food products involve numerous raw and auxiliary materials, presenting product quality and food safety risks, mitigated by multiple quality management system certifications[12](index=12&type=chunk) - Overseas subsidiaries face political, legal, cross-border regulatory, industry, market, and operational risks[13](index=13&type=chunk) - Goodwill arising from acquisitions carries impairment risk, prompting strengthened management and internal controls for target companies[14](index=14&type=chunk) - Expanding business scale and new ventures require high-caliber talent, posing risks if talent development and recruitment cannot meet demand[16](index=16&type=chunk) - Anti-globalization trends in world trade may lead to increased export costs and weakened price competitiveness[17](index=17&type=chunk) [Profit Distribution Plan](index=4&type=section&id=Profit%20Distribution%20Plan) The company plans no cash dividends, bonus shares, or capital reserve conversions for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[18](index=18&type=chunk) [Table of Contents](index=5&type=section&id=Table%20of%20Contents) This section lists the structured report directory, including important notes, company profile, management discussion, and financial reports [Definitions](index=7&type=section&id=Definitions) This section defines common terms, company entities, brands, and product types used in the report for clarity Company Profile and Key Financial Indicators [Company Profile](index=10&type=section&id=I.%20Company%20Profile) Xiamen Kingdomway Group Co., Ltd. (stock code: 002626) is listed on the Shenzhen Stock Exchange, with Jiang Bin as its legal representative - The company's stock abbreviation is Kingdomway, stock code **002626**, listed on the Shenzhen Stock Exchange[28](index=28&type=chunk) - The company's legal representative is Jiang Bin[28](index=28&type=chunk) [Contact Person and Information](index=10&type=section&id=II.%20Contact%20Person%20and%20Information) Hong Hang serves as the acting Board Secretary, with Lin Jie as Securities Affairs Representative, located at 299 Yangguang West Road, Haicang, Xiamen - The acting Board Secretary is Hong Hang, and the Securities Affairs Representative is Lin Jie[29](index=29&type=chunk) - The company's contact address is 299 Yangguang West Road, Xinyang Industrial Zone, Haicang, Xiamen, Fujian Province[29](index=29&type=chunk) [Other Information](index=10&type=section&id=III.%20Other%20Information) No changes occurred in the company's registered address, office address, website, email, or information disclosure locations during the reporting period - The company's contact information, information disclosure, and filing locations remained unchanged during the reporting period, as detailed in the 2024 annual report[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Key Accounting Data and Financial Indicators](index=11&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew by **13.46%** to **1.73 billion yuan**, net profit by **90.12%** to **247 million yuan**, and operating cash flow by **133.48%** to **327 million yuan** 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,728,484,797.27 | 1,523,404,893.56 | 13.46% | | Net Profit Attributable to Shareholders of Listed Company | 247,313,409.59 | 130,083,671.32 | 90.12% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 240,621,079.35 | 129,296,508.58 | 86.10% | | Net Cash Flow from Operating Activities | 327,108,673.68 | 140,103,953.03 | 133.48% | | Basic Earnings Per Share (Yuan/share) | 0.41 | 0.21 | 95.24% | | Diluted Earnings Per Share (Yuan/share) | 0.41 | 0.21 | 95.24% | | Weighted Average Return on Net Assets | 5.62% | 3.26% | 2.36% | | **Indicator** | **Balance at End of Current Reporting Period (Yuan)** | **Balance at End of Last Year (Yuan)** | **Change from End of Last Year to End of Current Reporting Period** | | Total Assets | 6,877,375,206.26 | 6,392,101,723.89 | 7.59% | | Net Assets Attributable to Shareholders of Listed Company | 4,329,961,137.84 | 4,280,636,738.63 | 1.15% | [Differences in Accounting Data Under Domestic and International Accounting Standards](index=11&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20International%20Accounting%20Standards) The company reported no differences in net profit or net assets between international/overseas and Chinese accounting standards during the period - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[34](index=34&type=chunk) - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[36](index=36&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=12&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Non-recurring gains and losses totaled **6.69 million yuan**, primarily from government subsidies and fair value changes of financial assets 2025 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -249,546.26 | Primarily gains/losses from disposal of scrapped non-current assets | | Government Subsidies Included in Current Profit and Loss | 6,323,920.03 | Government subsidies related to income received, and amortization of government subsidies related to assets | | Gains and Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and from Disposal of Financial Assets and Liabilities | 2,538,291.18 | Relates to fair value changes of held Huatai Ruihe Fund, Zhongwei Fund, large-denomination certificates of deposit, and gains from transfer of large-denomination certificates of deposit | | Other Non-Operating Income and Expenses Apart from the Above | -686,133.76 | Primarily accrued settlement fees and write-offs of unpayable amounts | | Other Income and Loss Items Meeting the Definition of Non-Recurring Gains and Losses | 274,955.18 | | | Less: Income Tax Impact | 1,460,864.30 | Income tax impact calculated at each company's tax rate | | Impact on Minority Shareholders' Equity (After Tax) | 48,291.83 | Impact on minority shareholders' equity of controlled subsidiaries | | **Total** | **6,692,330.24** | | - The company does not classify any non-recurring gains and losses items listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public – Non-Recurring Gains and Losses" as recurring gains and losses[39](index=39&type=chunk) Management Discussion and Analysis [Principal Businesses Engaged in During the Reporting Period](index=13&type=section&id=I.%20Principal%20Businesses%20Engaged%20in%20During%20the%20Reporting%20Period) The company primarily engages in R&D, production, and sales of nutritional and health foods and feed additives, driven by synthetic biology technology [Industry Development Trends](index=13&type=section&id=(I)%20Industry%20Development%20Trends) The global health economy is growing, driving demand for personalized nutrition, while synthetic biology and vitamin feed additive sectors see innovation and challenges - The global health economy is projected to approach **$9 trillion** by 2028, driven by rising health awareness, an aging population, and consumption upgrades[41](index=41&type=chunk) - The nutritional and health food market is shifting from incremental competition to refined cultivation, with demand evolving towards precision and personalization[42](index=42&type=chunk) - The synthetic biology industry is rapidly developing, driven by technological innovation, policy support, and market demand, integrating deeply with AI to foster global competitiveness[43](index=43&type=chunk)[44](index=44&type=chunk) - China's vitamin industry exports grew by **34.85%** year-on-year, with technological innovation enhancing product stability and green initiatives driving organic product R&D, yet facing overcapacity and price volatility challenges[45](index=45&type=chunk) [Company's Principal Business Operations](index=14&type=section&id=(II)%20Company%27s%20Principal%20Business%20Operations) The company, centered on synthetic biology, produces and sells nutritional and health foods and feed additives, with raw materials primarily exported and finished products sold overseas - The company's core driver is synthetic biology technology, primarily engaged in R&D, production, and sales of nutritional and health foods (raw materials and finished products) and feed additives[46](index=46&type=chunk) - Nutritional and health food raw materials and feed additives are primarily produced domestically with a high export ratio; finished nutritional and health food products are mainly produced, sold, and branded overseas[46](index=46&type=chunk) - The company's raw material products include Coenzyme Q10, DHA, ARA, Vitamin A, Vitamin D3, Vitamin K2, NMN, etc., with feed additives including Vitamin A and Vitamin D3[47](index=47&type=chunk) - Terminal brands include US brands Doctor's Best, Zipfizz, Viactiv, RxSugar, and Chinese brand Jinlexin, covering the entire nutritional and health food industry chain[47](index=47&type=chunk) [Market Position](index=15&type=section&id=(III)%20Market%20Position) As a leading synthetic biology innovator, the company holds global leadership in key raw materials and maintains competitive advantages in B2B and B2C markets - The company is a leading synthetic biology technology innovation enterprise in China, possessing strong scientific research and innovation capabilities, recognized as a national-level enterprise technology center[50](index=50&type=chunk) - The company's Coenzyme Q10 has been the **world's largest producer** for consecutive years since 2019, and it is also a major producer of Vitamin A, Vitamin D3, microalgae DHA, plant-based ARA, Vitamin K2, and NMN series raw materials[51](index=51&type=chunk) - The company owns well-known brands such as Doctor's Best, Viactiv, Zipfizz, and RxSugar in overseas markets, with several individual products ranking among top sellers on platforms like Amazon, iHerb, and Costco[51](index=51&type=chunk) [Discussion and Analysis of Operations](index=16&type=section&id=(IV)%20Discussion%20and%20Analysis%20of%20Operations) In H1 2025, revenue reached **1.73 billion yuan** (up **13.46%**), and net profit **247 million yuan** (up **90.12%**), driven by production optimization, market adjustments, and R&D 2025 Semi-Annual Operating Performance | Indicator | Amount (Billion Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 17.28 | 13.46% | | Net Profit Attributable to Shareholders of Listed Company | 2.47 | 90.12% | - The company maintained stable production, improved product yield, achieved significant energy savings, optimized market layout in sales, and saw steady growth in operating indicators[52](index=52&type=chunk) - Increased R&D investment accelerated technological innovation and product upgrades, with Coenzyme Q10, Astaxanthin, and Algae DHA costs continuously decreasing, new product EPA R&D achieving breakthroughs, and R-Lipoic Acid entering trial operation[52](index=52&type=chunk) - Coenzyme Q10's penetration increased in emerging applications like functional foods and cosmetics, with the company achieving profit growth through technological innovation and capacity integration[53](index=53&type=chunk) - Vitamin A raw material sales performance increased year-on-year, becoming a significant growth driver in the first half, eliminating the impact of the flash explosion accident[53](index=53&type=chunk) - Domestic sales of health supplement brands grew significantly, with Doctor's Best sales up **21.49%** year-on-year in the first half and **70%** during the 618 shopping festival[53](index=53&type=chunk) [Business Qualifications and Related Product Quality Certificates](index=16&type=section&id=(V)%20Business%20Qualifications%20and%20Related%20Product%20Quality%20Certificates) The company and its subsidiaries hold various licenses, including food, feed additive, and drug production permits, FDA registration, and multiple health food approvals - The company and its subsidiaries possess licensed sales qualifications including food production permits, feed additive production permits, and drug production permits (Coenzyme Q10, Oxiracetam, Alanyl Glutamine)[54](index=54&type=chunk)[55](index=55&type=chunk) - US subsidiary Vit-Best has completed FDA food facility registration and California Department of Public Health Food and Drug Branch processed food/organic processed product registration[55](index=55&type=chunk) - The company holds health food approval certificates for products like Jinlexin® Coenzyme Q10 Vitamin E Softgels, and multiple Jinlexin® series health food filing certificates[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) [Introduction to Principal Raw Material Products](index=18&type=section&id=(VI)%20Introduction%20to%20Principal%20Raw%20Material%20Products) The company's key raw materials include CoQ10 (world's largest producer), DHA, ARA, Vitamin K2 (microbial fermentation), and Vitamins A/D3 (major global producers for animal husbandry) - Coenzyme Q10 is a vital antioxidant and energy converter in the human body; the company is the **world's largest producer**, using fermentation for high-content, high-purity products[59](index=59&type=chunk)[60](index=60&type=chunk) - DHA is crucial for brain development, cardiovascular health, and immune function; the company produces algae oil DHA, with a rapidly growing market size[61](index=61&type=chunk) - ARA is an essential unsaturated fatty acid; the company produces plant-based ARA through bio-fermentation, with a growing market size[62](index=62&type=chunk) - Vitamin K2 is primarily used to prevent osteoporosis and vascular calcification; the company uses microbial fermentation, with designed capacity ranking among the global leaders[63](index=63&type=chunk) - The company is a major global producer of Vitamin A and D3, with market demand primarily from animal husbandry, food and beverage, pharmaceutical, and cosmetic industries[64](index=64&type=chunk) [Principal Brand Operations](index=20&type=section&id=(VII)%20Principal%20Brand%20Operations) The company's brand portfolio includes Doctor's Best, Zipfizz, Viactiv, and RxSugar, covering dietary supplements, energy boosters, and functional nutrition, with strong overseas sales - The company owns a brand matrix including Doctor's Best, Zipfizz, Viactiv, and RxSugar, covering dietary supplements, energy supplements, and functional nutrition sub-segments[65](index=65&type=chunk) - Doctor's Best is a popular US nutritional supplement brand with **over $100 million** in sales, and products like Coenzyme Q10 and Magnesium tablets are top sellers on international e-commerce platforms[67](index=67&type=chunk) - Zipfizz is a best-selling star brand in major US retailers like Costco and Sam's Club, ranking among the **top five** in Costco's pharmaceutical category[70](index=70&type=chunk) - Viactiv series products focus on bone health, immune health, and other dietary supplement chewable tablets, a well-known brand in the US calcium soft chew supplement category[75](index=75&type=chunk) - RxSugar is an allulose product brand acquired by the company's controlled subsidiary, highly favored by consumers[77](index=77&type=chunk) [Principal Sales Models](index=23&type=section&id=Principal%20Sales%20Models) The company employs direct and distribution sales models, with raw materials sold offline and internationally, and branded products sold online and offline, both domestically and abroad - The company categorizes sales into direct sales (to end customers) and distribution sales (to non-end customers)[79](index=79&type=chunk) - Nutritional and health food raw material sales use offline direct and distribution models, with international sales settled via T/T, D/P, and letters of credit[79](index=79&type=chunk)[82](index=82&type=chunk) - Overseas sales of health food brands are primarily through distribution (online via iHerb, Amazon; offline via Costco, Sam's Club), while domestic sales combine online direct sales and distribution (via Tmall, JD, Douyin)[79](index=79&type=chunk)[84](index=84&type=chunk) Revenue and Accounts Receivable from Top Five Distribution Customers During the Reporting Period | Distributor Name | Total Sales Revenue (Yuan) | Sales Proportion | Accounts Receivable at Period End (Yuan) | | :--- | :--- | :--- | :--- | | Distributor 1 | 233,268,610.96 | 13.50% | 127,199,106.65 | | Distributor 2 | 197,145,110.82 | 11.41% | 59,918,451.42 | | Distributor 3 | 164,476,815.99 | 9.52% | 9,545,020.45 | | Distributor 4 | 43,711,637.16 | 2.53% | 24,840,000.00 | | Distributor 5 | 41,486,803.67 | 2.40% | 11,823,545.93 | - The average selling price of Vitamin A increased by **38.29%** year-on-year, leading to a **54.61 million yuan** increase in gross profit, influenced by market price fluctuations[86](index=86&type=chunk) [Procurement Model and Content](index=25&type=section&id=Procurement%20Model%20and%20Content) The company primarily uses an independent procurement model, acquiring raw and auxiliary materials, finished products totaling **851 million yuan**, and fuel/power totaling **63 million yuan** Principal Procurement Content and Amounts | Procurement Model | Procurement Content | Amount of Principal Procurement Content (Yuan) | | :--- | :--- | :--- | | Independent Procurement | Raw and Auxiliary Materials and Finished Products | 850,914,871.75 | | Independent Procurement | Fuel and Power | 62,816,809.21 | [Principal Production Models](index=25&type=section&id=Principal%20Production%20Models) The company employs both independent production (by subsidiaries adhering to NSF-cGMP/GMP standards) and contract manufacturing (OEM), focusing on product development, quality control, and sales - The company's production models primarily consist of independent production and contract manufacturing (OEM)[89](index=89&type=chunk) - Independent production is handled by subsidiaries Vit-Best and Kingdomway Biotechnology, with all workshops compliant with NSF-cGMP or GMP certifications, offering product development and raw material optimization services[89](index=89&type=chunk) - Under the contract manufacturing model, the company contracts with qualified external manufacturers, primarily responsible for product development, quality control, and sales[89](index=89&type=chunk) [Principal Components of Operating Costs](index=26&type=section&id=Principal%20Components%20of%20Operating%20Costs) Operating costs are mainly comprised of nutritional and health products (raw materials, vitamins, finished goods) and pharmaceutical raw materials, with outsourced finished product costs being the largest component 2025 January-June Principal Components of Operating Costs | Product Category | Item | Amount (Yuan) | Proportion of Operating Costs | | :--- | :--- | :--- | :--- | | Nutritional and Health Products (Food Raw Materials) | Materials | 160,856,551.83 | 65.52% | | Nutritional and Health Products (Vitamin Raw Materials) | Materials | 91,296,316.81 | 61.53% | | Nutritional and Health Products (Finished Products) | Outsourced | 418,031,962.14 | 67.50% | | Nutritional and Health Products (Finished Products) | Materials | 122,501,290.87 | 19.78% | | Pharmaceutical Products (Raw Materials) | Materials | 7,633,874.98 | 50.43% | [Production Volume and Inventory](index=27&type=section&id=Production%20Volume%20and%20Inventory) Vitamin A series saw significant recovery in production and sales, CoQ10 series production and inventory increased due to expansion, while nutritional and health food series experienced slight declines Production Volume, Sales Volume, and Inventory of Principal Products | Product Category | Item | Unit | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Vitamin A Series | Sales Volume | KG | 1,762,198.09 | 778,424.33 | 126.38% | | | Production Volume | KG | 1,504,391.78 | 842,233.36 | 78.62% | | | Inventory Volume | KG | 328,189.29 | 280,463.67 | 17.02% | | Coenzyme Q10 Series | Sales Volume | KG | 350,008.96 | 322,654.15 | 8.48% | | | Production Volume | KG | 436,887.44 | 317,732.52 | 37.50% | | | Inventory Volume | KG | 211,123.06 | 105,496.67 | 100.12% | | Nutritional and Health Food Series | Sales Volume | Pieces | 51,705,633.00 | 56,145,438.00 | -7.91% | | | Production Volume | Pieces | 43,001,006.00 | 60,551,689.81 | -28.98% | | | Inventory Volume | Pieces | 25,487,246.00 | 32,613,931.00 | -21.85% | - Production and sales of Vitamin A series products rebounded, primarily due to a low base in the same period of 2024 affected by a safety accident[92](index=92&type=chunk) - Coenzyme Q10 series product output and period-end inventory significantly increased, mainly due to technical upgrades for expansion, cost reduction, and increased exports in advance[93](index=93&type=chunk) Designed Capacity, Actual Capacity, and Under-Construction Capacity of Principal Products | Product Category | Kingdomway Vitamins (Designed/Actual/Under-Construction Capacity) | Kingdomway Pharmaceutical (Designed/Actual/Under-Construction Capacity) | VB (Designed/Actual/Under-Construction Capacity) | | :--- | :--- | :--- | :--- | | Vitamin A Series (Tons) | 4,000/4,000/- | -/-/- | -/-/- | | Coenzyme Q10 Series (Tons) | -/-/- | 920/320-620/600 | -/-/- | | Vitamin K2 (Tons) | -/-/- | 100/100/- | -/-/- | | DHA (Tons) | -/-/- | 150-350/150-350/- | -/-/- | | ARA (Tons) | -/-/- | 50-250/50-250/- | -/-/- | | Astaxanthin (Tons) | -/-/- | 1,000/1,000/- | -/-/- | | Calcium Pantothenate (Tons) | -/-/- | -/-/10,000 | -/-/- | | Allulose (Tons) | -/-/- | -/-/30,000 | -/-/- | | Inositol (Tons) | -/-/- | -/-/5,000 | -/-/- | | Tablets (10,000 tablets) | -/-/- | -/-/- | -/400,000/- | | Hard Capsules (10,000 capsules) | -/-/- | -/-/- | -/500,000/- | | Softgels (10,000 capsules) | -/-/- | -/-/- | -/-/300,000 | | Powders (10,000 cans) | -/-/- | -/-/- | -/-/2,500 | | Powders (10,000 strips) | -/-/- | -/-/- | -/-/15,000 | [Analysis of Core Competencies](index=30&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core strengths lie in its full industry chain, efficient bio-manufacturing, synthetic biology R&D, high-quality raw materials, and global marketing and brand recognition - The company possesses a **full industry chain advantage**, integrating domestic and international nutritional health resources to form a global production system[98](index=98&type=chunk) - The company has established scale, cost, and efficiency advantages in its bio-manufacturing supply chain, owning a national enterprise technology center R&D platform and a large-scale bio-enzyme library platform[99](index=99&type=chunk) - With synthetic biology as its core technology, the company continuously enhances R&D innovation capabilities, building fermentation-based production processes centered on microbial cell factories[100](index=100&type=chunk) - Mastering **high-purity, high-quality core raw materials** ensures continuous supply and stable quality of finished products, enabling the launch of high-value-added products[101](index=101&type=chunk) - Possessing a **global marketing system and brand recognition**, with brands like Doctor's Best and Zipfizz demonstrating strong sales in overseas markets[102](index=102&type=chunk) [Analysis of Principal Business](index=31&type=section&id=III.%20Analysis%20of%20Principal%20Business) The company's principal business showed strong performance, with **13.46%** revenue growth, positive investment cash flow, and significant increases in Vitamin A sales and CoQ10 gross margin [Year-on-Year Changes in Key Financial Data](index=31&type=section&id=Year-on-Year%20Changes%20in%20Key%20Financial%20Data) Operating revenue increased by **13.46%**, net cash flow from operating activities surged by **133.48%**, investment cash flow turned positive, and financing cash flow grew by **73.75%** Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,728,484,797.27 | 1,523,404,893.56 | 13.46% | | | Operating Cost | 1,029,279,893.79 | 959,325,387.43 | 7.29% | | | Selling Expenses | 171,070,925.55 | 155,286,214.23 | 10.16% | | | Administrative Expenses | 189,185,324.12 | 200,812,582.48 | -5.79% | | | Financial Expenses | -1,889,669.01 | -8,107,135.67 | 76.69% | Primarily due to changes in exchange gains and losses | | Income Tax Expense | 51,506,937.95 | 40,952,125.43 | 25.77% | Primarily due to increased profit leading to higher income tax expense, and changes in deferred income tax expense | | R&D Investment | 40,916,944.25 | 32,962,347.23 | 24.13% | Primarily due to increased R&D investment in the current period | | Net Cash Flow from Operating Activities | 327,108,673.68 | 140,103,953.03 | 133.48% | Primarily due to a 189 million yuan increase in cash received from sales of goods and provision of services, a 16 million yuan increase in other cash received related to operating activities, and a 21 million yuan increase in other cash paid related to operating activities | | Net Cash Flow from Investing Activities | 8,043,015.41 | -207,419,032.86 | 103.88% | Primarily due to a 118 million yuan increase in other cash received related to investing activities, a 32 million yuan increase in other cash paid related to investing activities, and a 113 million yuan decrease in cash paid for investments | | Net Cash Flow from Financing Activities | 162,930,165.02 | 93,771,319.41 | 73.75% | Primarily due to a 537 million yuan increase in cash received from borrowings, a 349 million yuan increase in cash paid for debt repayment, and a 129 million yuan increase in cash paid for dividend distribution, profit, or interest repayment | | Net Increase in Cash and Cash Equivalents | 497,876,431.65 | 33,891,682.07 | 1,369.02% | Resulting from the combined impact of cash flows from operating, investing, and financing activities | | Investment Income | 12,949,676.25 | 4,844,669.10 | 167.30% | Primarily due to gains from the transfer of large-denomination certificates of deposit | | Gains from Changes in Fair Value | -6,061,839.36 | -5,119,665.33 | -18.40% | Primarily due to a decrease in the balance of convertible large-denomination certificates of deposit held | | Credit Impairment Losses | 13,372,866.59 | -7,142,648.67 | 287.23% | Primarily due to the recovery of overdue receivables, reversing credit impairment losses | | Asset Impairment Losses | -23,552,261.43 | 969,513.09 | -2,529.29% | Primarily due to changes in inventory depreciation provisions | [Composition of Operating Revenue](index=32&type=section&id=Composition%20of%20Operating%20Revenue) Operating revenue is primarily from nutritional and health products (**98.50%**), with Vitamin A series revenue up **213.06%** and domestic sales growing **45.14%** Composition of Operating Revenue (by Industry, Product, Region) | Category | Item | Amount in Current Reporting Period (Yuan) | Proportion of Operating Revenue | Amount in Same Period Last Year (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Nutritional and Health Products | | 1,702,582,740.96 | 98.50% | 1,493,015,009.74 | 98.01% | 14.04% | | Pharmaceutical Raw Materials | | 24,702,211.28 | 1.43% | 29,176,521.75 | 1.92% | -15.34% | | Other Income | | 1,199,845.03 | 0.07% | 1,213,362.07 | 0.07% | -1.11% | | **By Product** | | | | | | | | Vitamin A Series | | 197,232,764.88 | 11.41% | 63,002,055.95 | 4.14% | 213.06% | | Coenzyme Q10 Series | | 380,931,112.61 | 22.04% | 379,661,009.64 | 24.92% | 0.33% | | Nutritional and Health Foods | | 943,266,689.12 | 54.57% | 965,998,750.70 | 63.41% | -2.35% | | Other | | 207,054,230.66 | 11.98% | 114,743,077.27 | 7.53% | 80.45% | | **By Region** | | | | | | | | Domestic Sales | | 426,644,276.69 | 24.68% | 293,948,291.42 | 19.30% | 45.14% | | Overseas Sales | | 1,301,840,520.58 | 75.32% | 1,229,456,602.14 | 80.70% | 5.89% | Industry, Product, or Region Accounting for Over 10% of Operating Revenue or Operating Profit | Category | Item | 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** | | | | | | | | | Nutritional and Health Products | | 1,702,582,740.96 | 1,013,167,605.03 | 40.49% | 14.04% | 7.63% | 3.54% | | **By Product** | | | | | | | | | Vitamin A Series | | 197,232,764.88 | 127,754,439.20 | 35.23% | 213.06% | 118.97% | 27.83% | | Coenzyme Q10 Series | | 380,931,112.61 | 167,782,452.22 | 55.95% | 0.33% | -17.54% | 9.54% | | Nutritional and Health Foods | | 943,266,689.12 | 619,266,832.15 | 34.35% | -2.35% | -2.03% | -0.22% | | **By Region** | | | | | | | | | Domestic Sales | | 426,644,276.69 | 244,589,688.30 | 42.67% | 45.14% | 49.24% | -1.57% | | Overseas Sales | | 1,301,840,520.58 | 784,690,205.49 | 39.72% | 5.89% | -1.35% | 4.42% | [Selling Expenses](index=33&type=section&id=Selling%20Expenses) Total selling expenses were **171 million yuan**, up **10.16%** year-on-year, with marketing and promotion costs accounting for **57.97%** and increasing by **19.00%** Composition of Selling Expenses | Item | Amount in Current Reporting Period (Yuan) | Proportion | Amount in Same Period Last Year (Yuan) | Proportion | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Salaries and Benefits | 39,741,929.58 | 23.23% | 39,654,346.07 | 25.54% | 0.22% | | Insurance Premiums | 3,166,745.11 | 1.85% | 2,578,507.02 | 1.66% | 22.81% | | Marketing and Promotion Expenses | 99,163,889.94 | 57.97% | 83,330,819.99 | 53.66% | 19.00% | | Travel Expenses | 1,466,650.67 | 0.86% | 1,816,306.45 | 1.17% | -19.25% | | Office Expenses | 1,419,934.23 | 0.83% | 1,343,367.87 | 0.87% | 5.70% | | Packaging Costs (Material Consumption) | 771,941.79 | 0.45% | 1,583,021.18 | 1.02% | -51.24% | | Business Entertainment Expenses | 293,575.91 | 0.17% | 319,918.30 | 0.21% | -8.23% | | Commissions | 14,304,195.33 | 8.36% | 15,012,267.95 | 9.67% | -4.72% | | Customs Declaration and Inspection Fees | 1,068,021.08 | 0.62% | 916,136.28 | 0.59% | 16.58% | | Rent | 4,264,362.45 | 2.49% | 4,126,508.30 | 2.66% | 3.34% | | Other | 5,409,679.46 | 3.16% | 4,605,014.82 | 2.97% | 17.47% | | **Total** | **171,070,925.55** | **100.00%** | **155,286,214.23** | **100.00%** | **10.16%** | - Packaging costs (material consumption) decreased by **51.24%** year-on-year, primarily due to a reduction in packaging expenses accounted for in selling expenses compared to the previous year[112](index=112&type=chunk) [Analysis of Non-Principal Business](index=34&type=section&id=IV.%20Analysis%20of%20Non-Principal%20Business) Non-principal business includes investment income (**12.95 million yuan**), fair value changes (**-6.06 million yuan**), and asset impairment (**-23.55 million yuan**), none of which are sustainable Non-Principal Business Items and Amounts | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation Reason | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 12,949,676.25 | 4.45% | Primarily gains from the transfer of large-denomination certificates of deposit, investment income accounted for by the equity method, and dividends received from associate companies | No | | Gains and Losses from Changes in Fair Value | -6,061,839.36 | -2.08% | Primarily fair value changes of other non-current financial assets and financial assets held for trading measured at fair value in the current year | No | | Asset Impairment | -23,552,261.43 | -8.10% | Primarily due to changes in inventory depreciation provisions | No | | Non-Operating Income | 1,817,911.58 | 0.63% | Primarily government subsidies unrelated to daily operating activities, and confirmed unpayable amounts | No | | Non-Operating Expenses | 2,438,166.10 | 0.84% | Primarily accrued settlement fees, remaining compensation expenses for the 2024 safety accident at the vitamin company, losses from disposal of non-current assets, and donations | No | [Analysis of Assets and Liabilities](index=35&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets grew **7.59%** to **6.88 billion yuan**, and net assets attributable to shareholders increased **1.15%** to **4.33 billion yuan**, with significant changes in cash, construction in progress, and borrowings [Significant Changes in Asset Composition](index=35&type=section&id=1.%20Significant%20Changes%20in%20Asset%20Composition) Monetary funds increased by **5.96%**, construction in progress by **0.52%**, and short-term borrowings by **3.90%**, while financial assets and prepayments decreased Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Last Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,664,142,978.27 | 24.20% | 1,166,162,946.62 | 18.24% | 5.96% | Primarily due to an increase in USD deposits | | Construction in Progress | 403,249,142.96 | 5.86% | 341,475,615.62 | 5.34% | 0.52% | Primarily due to an increase in construction in progress at Kingdomway Pharmaceutical | | Short-Term Borrowings | 661,323,832.83 | 9.62% | 365,872,129.47 | 5.72% | 3.90% | Primarily due to an increase in one-year bank loans | | Financial Assets Held for Trading | 53,759,541.76 | 0.78% | 176,414,408.45 | 2.76% | -1.98% | Primarily due to a decrease in convertible large-denomination certificates of deposit | | Prepayments | 26,961,735.18 | 0.39% | 40,939,674.89 | 0.64% | -0.25% | Primarily due to a decrease in prepaid purchase payments | | Investments in Other Equity Instruments | 895,690,545.47 | 13.02% | 806,988,412.77 | 12.62% | 0.40% | Primarily due to fair value changes of investments in iHerb | | Non-Current Liabilities Due Within One Year | 362,864,146.96 | 5.28% | 306,076,808.06 | 4.79% | 0.49% | Primarily due to an increase in long-term bank loans due within one year | [Principal Overseas Assets](index=36&type=section&id=2.%20Principal%20Overseas%20Assets) Key overseas assets include Doctor's Best, Zipfizz, Vit-Best, and iHerb equity, primarily located in the US, with no significant impairment risks identified Principal Overseas Assets | Specific Content of Asset | Reason for Formation | Asset Scale (10,000 Yuan) | Location | Operating Model | Profitability (10,000 Yuan) | Proportion of Overseas Assets to Company's Net Assets | Is There Significant Impairment Risk | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Doctor's Best Company | Acquisition of 96.11% Equity | 102,205 | USA | Sales of Own-Brand Health Products | 6,267 | 23.36% | No | | Zipfizz Company | Acquisition of 100% Equity | 76,976 | USA | Sales of Functional Beverages | 595 | 17.59% | No | | Vit-Best Company | Acquisition of Vitatech Operating Asset Group | -1,653 | USA | Health Product Production | 848 | -0.38% | No | | iHerb Equity Investment | Subscription for 4.80% Equity | 85,274 | USA | Online Retailer Specializing in Health Products | 342 | 19.49% | No | - No significant impairment risks have been identified currently; the company will conduct impairment tests in the fourth quarter[119](index=119&type=chunk) [Assets and Liabilities Measured at Fair Value](index=36&type=section&id=3.%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) Fair value measured financial assets totaled **996 million yuan**, including trading financial assets, other equity investments, and other non-current financial assets, with a fair value change loss of **4.22 million yuan** Assets and Liabilities Measured at Fair Value | Item | Opening Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Cumulative Fair Value Changes Recognized in Equity (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold in Current Period (Yuan) | Closing Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial Assets** | | | | | | | | 1. Financial Assets Held for Trading | 176,414,408.45 | -6,338,255.57 | | 31,802,772.00 | 148,119,383.12 | 53,759,541.76 | | 4. Investments in Other Equity Instruments | 806,988,412.77 | | 92,571,925.24 | 7,500,000.00 | | 895,690,545.47 | | 5. Other Non-Current Financial Assets | 44,033,004.73 | 2,116,416.21 | | | | 46,149,420.94 | | **Subtotal of Financial Assets** | **1,027,435,825.95** | **-4,221,839.36** | **92,571,925.24** | **39,302,772.00** | **148,119,383.12** | **995,599,508.17** | - Other changes primarily relate to exchange rate fluctuations[122](index=122&type=chunk) [Asset Restrictions as of the End of the Reporting Period](index=37&type=section&id=4.%20Asset%20Restrictions%20as%20of%20the%20End%20of%20the%20Reporting%20Period) Restricted assets totaled **105 million yuan** at period-end, primarily comprising monetary funds (government consumer vouchers, ETC freezes) and fixed assets (mortgaged for borrowings) Asset Restrictions as of the End of the Reporting Period | Item | Carrying Amount at Period End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 106,100.00 | Government consumer vouchers, ETC freezes | | Fixed Assets | 105,109,691.47 | Mortgaged for borrowings | | **Total** | **105,215,791.47** | | [Analysis of Investment Status](index=37&type=section&id=VI.%20Analysis%20of%20Investment%20Status) Total investment decreased by **61.07%** to **82.24 million yuan**, with major non-equity projects including CoQ10 expansion, allulose/inositol, and calcium pantothenate production, all self-funded [Overall Situation](index=37&type=section&id=1.%20Overall%20Situation) The company's investment amounted to **82.24 million yuan** during the reporting period, a **61.07%** decrease compared to the same period last year Overall Investment Situation | Investment Amount in Reporting Period (Yuan) | Investment Amount in Same Period Last Year (Yuan) | Change Rate | | :--- | :--- | :--- | | 82,237,711.88 | 211,267,609.19 | -61.07% | [Significant Non-Equity Investments in Progress During the Reporting Period](index=37&type=section&id=3.%20Significant%20Non-Equity%20Investments%20in%20Progress%20During%20the%20Reporting%20Period) Major non-equity investments include CoQ10 expansion, 30,000-ton allulose/5,000-ton inositol, and 10,000-ton calcium pantothenate projects, all self-funded and in various stages of progress Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Is it Fixed Asset Investment | Industry Involved | Amount Invested in Current Reporting Period (Yuan) | Cumulative Investment Amount as of End of Reporting Period (Yuan) | Project Progress | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coenzyme Q10 Expansion and Renovation Project | Self-built | Yes | Food and Feed Additive Manufacturing | 30,623,416.48 | 188,419,185.16 | 90.00% | Self-raised Funds | | Annual Production of 30,000 Tons Allulose, 5,000 Tons Inositol Project | Self-built | Yes | Food and Feed Additive Manufacturing | 262,023.95 | 50,670,512.06 | 11.00% | Self-raised Funds | | Annual Production of 10,000 Tons Calcium Pantothenate Project | Self-built | Yes | Food and Feed Additive Manufacturing | 1,836,714.55 | 27,394,577.10 | 12.00% | Self-raised Funds | [Analysis of Principal Holding and Associate Companies](index=39&type=section&id=VIII.%20Analysis%20of%20Principal%20Holding%20and%20Associate%20Companies) Key subsidiaries include Kingdomway Pharmaceutical, Kingdomway Vitamins, and Doctor's Best. Kingdomway Vitamins saw significant revenue and profit growth, while Zipfizz experienced profit decline due to inventory adjustments and increased marketing Principal Subsidiaries and Associate 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) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Kingdomway Pharmaceutical | Subsidiary | Coenzyme Q10, DHA, ARA Production | 289,000,000 | 2,119,920,016.39 | 1,084,400,150.77 | 464,304,438.28 | 150,098,646.35 | 130,216,518.51 | | Kingdomway Vitamins | Subsidiary | Food Additive Manufacturing; Feed Additive Manufacturing | 128,000,000 | 878,352,474.05 | 272,328,460.64 | 237,711,053.34 | 55,231,103.02 | 48,097,248.91 | | Chengxin Pharmaceutical | Subsidiary | Production of Pharmaceutical Raw Materials, Cosmetics, and Dietary Supplement Raw Materials | 223,490,000 | 237,971,173.95 | 95,125,110.16 | 33,607,077.23 | 6,833,894.28 | 6,786,829.15 | | Vit-Best | Subsidiary | Health Product Production | | 420,450,724.68 | -16,532,085.25 | 221,613,350.75 | 9,812,030.48 | 8,481,385.08 | | Doctor's Best | Subsidiary | Health Product Sales | | 1,140,861,669.97 | 1,022,054,488.93 | 509,598,378.19 | 87,233,853.18 | 62,665,070.77 | | Zipfizz | Subsidiary | Sales of Functional Beverages | | 849,882,551.03 | 769,758,575.00 | 238,990,547.55 | 9,858,491.34 | 5,946,014.51 | - Kingdomway Vitamins' operating revenue, operating profit, and net profit increased by **273.57%**, **221.82%**, and **207.25%** year-on-year, respectively, primarily due to higher Vitamin A selling prices and increased sales volume in the current period[135](index=135&type=chunk) - Vit-Best's net assets, operating profit, and net profit increased by **34.13%**, **616.95%**, and **817.68%** year-on-year, respectively, primarily due to improved operating conditions, reduced costs, and recovery of overdue receivables[135](index=135&type=chunk) - Zipfizz's operating profit and net profit decreased by **69.39%** and **75.36%** year-on-year, respectively, primarily due to channel customers adjusting inventory levels in the first half to cope with market uncertainties, leading to a temporary reduction in purchases from the company; concurrently, the company strategically increased marketing resource investment to expand sales channels, resulting in higher marketing expenses[135](index=135&type=chunk) - During the reporting period, the company established a wholly-owned subsidiary, Kingdomway E-Commerce LLC, and deregistered its subsidiary Kingdomway (Shanghai) Nutritional Food Co., Ltd., with minor impact on company performance[135](index=135&type=chunk) [Risks Faced by the Company and Countermeasures](index=41&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company's risks and countermeasures are detailed in Section 1 of this report, and it will actively monitor and adjust its responses - The potential risks faced by the company and corresponding countermeasures have been elaborated in "Section 1 Important Notes, Table of Contents, and Definitions" of this report[137](index=137&type=chunk) - The company will actively monitor and make timely adjustments based on specific circumstances to proactively address risks[138](index=138&type=chunk) Corporate Governance, Environment, and Society [Changes in Company Directors, Supervisors, and Senior Management](index=42&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The board and supervisory board underwent re-election, with several directors, supervisors, and senior managers departing due to term expiration and new members appointed Changes in Company Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wang Shuihua | Vice Chairman | Term expired, resigned | 2025年05月15日 | Re-election | | Gu Weihua | Vice Chairman | Elected | 2025年05月15日 | Re-election | | Xu Xiaote | Director | Elected | 2025年05月15日 | Re-election | | Jiao Jie | Chairman of Supervisory Board | Term expired, resigned | 2025年05月15日 | Re-election | | Li Dan | Supervisor | Term expired, resigned | 2025年05月15日 | Re-election | | Lin Shuishan | Supervisor | Term expired, resigned | 2025年05月15日 | Re-election | | Hong Yan | Deputy General Manager, Board Secretary | Term expired, resigned | 2025年05月15日 | Re-election | [Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period](index=42&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 for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[145](index=145&type=chunk) [Environmental Information Disclosure](index=42&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its three main subsidiaries are listed as legally required environmental information disclosure enterprises, with reports accessible via relevant systems - The company and its **three** main subsidiaries are included in the list of enterprises legally required to disclose environmental information[147](index=147&type=chunk) - Relevant environmental information disclosure reports can be accessed through the Enterprise Environmental Information Disclosure System (Inner Mongolia, Fujian Beta, Jiangsu)[147](index=147&type=chunk)[148](index=148&type=chunk) [Social Responsibility](index=43&type=section&id=V.%20Social%20Responsibility) The company actively fulfills social responsibilities by protecting investor, supplier, customer, and employee rights, promoting environmental protection, and engaging in public welfare - The company strictly adheres to listing rules, improves governance structure, enhances information disclosure transparency, safeguards shareholders' legitimate rights, and is committed to creating long-term, stable, and sustainable investment returns[150](index=150&type=chunk) - The company upholds the principle of honest cooperation, building a responsible and sustainable supply chain and customer service system to protect the rights of suppliers, customers, and consumers[150](index=150&type=chunk) - The company adheres to a people-oriented approach, strictly complies with labor laws and regulations, protects employees' basic rights, prioritizes occupational health and safety, and offers competitive compensation and diverse career development paths[152](index=152&type=chunk) - The company integrates green development into its strategy, actively implements energy conservation and emission reduction, adopts advanced environmental management systems, and strives for harmonious coexistence between enterprise and nature[153](index=153&type=chunk) - The company integrates philanthropy into its development strategy, making irregular cash donations and focusing on targeted assistance in education, rural revitalization, and healthcare[154](index=154&type=chunk) Significant Matters [Commitments](index=45&type=section&id=I.%20Commitments%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20Fulfilled%20or%20Overdue%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The company reported no commitments from actual controllers, shareholders, related parties, or the company itself that were fulfilled or overdue during the period - The company reported no commitments by its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue as of the end of the reporting period[157](index=157&type=chunk) [Litigation Matters](index=46&type=section&id=VIII.%20Litigation%20Matters) No major litigation or arbitration occurred; other cases involve service contracts, unfair competition, and product labeling, with some resolved and others ongoing - The company had no major litigation or arbitration matters during the current reporting period[163](index=163&type=chunk) Overview of Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (10,000 Yuan) | Whether a Provision is Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | Judgment Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Plaintiff sues Kingdomway Group for service contract dispute | 6.3 | No | Second instance judgment rendered | Second instance judgment: upheld the first, second, and fourth items of the original judgment; revoked the third item; Kingdomway Group to pay 30,000 yuan service fee to the plaintiff of the first instance; rejected other claims of the plaintiff of the first instance | Executed | | Kingdomway Group sues defendant for unfair competition dispute | 35 | No | First instance judgment rendered | First instance judgment: defendant to compensate plaintiff for economic losses and reasonable rights protection fees of 38,000 yuan; rejected other claims of the plaintiff | Execution applied for | | Plaintiff sues Kingdomway Vitamins for joint liability for unpaid engineering debt | 122.6 | No | Final judgment rendered | Rejected the plaintiff's claims against Kingdomway Vitamins | Executed | | Plaintiff sues Kingdomway Vitamins for joint liability for unpaid engineering debt | 140.75 | No | Case filed, not yet judged | Not judged | | | Kingdomway Holdings applies for arbitration | 6.37 | No | Award effective | Arbitration committee supported Kingdomway Holdings' arbitration claims | Judgment debtor has no assets for execution, company waives application for execution | | Consumer sues Zipfizz for product label violation of relevant California law | 136.3 | No | Settlement reached | Settlement amount was 1.363 million yuan | Settlement amount paid | | NCB sues defendant for breach of purchase agreement | 1,252.76 | No | Sued, settlement reached | Not judged | Not judged | [Significant Related Party Transactions](index=50&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company engaged in daily related party transactions with China Animal Husbandry Industry Co., Ltd. and its subsidiaries, totaling **12.64 million yuan** in sales, and licensed trademarks to Kingdomway Medical Technology (Shanghai) Co., Ltd Related Party Transactions Related to Daily Operations | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (10,000 Yuan) | Proportion of Similar Transactions | Approved Transaction Limit (10,000 Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Animal Husbandry Industry Co., Ltd. and its Subsidiaries | Sales of Goods | Vitamin Products | 1,264.42 | 5.18% | 4,109 | No | - On February 7, 2025, the company authorized Kingdomway Medical Technology (Shanghai) Co., Ltd. and its subsidiaries to use relevant trademarks, with an annual license fee of **120,000 yuan** (tax inclusive) for the period from February 7, 2025, to February 6, 2028[177](index=177&type=chunk) [Significant Contracts and Their Performance](index=52&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company has various leasing contracts for property, equipment, and vehicles, and provided guarantees totaling **178.71 million yuan** to subsidiaries, representing **4.13%** of net assets - The company and its subsidiaries have signed multiple property, equipment, and vehicle leasing contracts, with lease terms ranging from **1 to 19 years**, involving various domestic and international lessors[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) External Guarantees by the Company and its Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Type of Guarantee | Guarantee Period | Whether Fulfilled | Is it a Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia Kingdomway Pharmaceutical Co., Ltd. | 48,000 | 8,000 | Joint and Several Liability Guarantee | 60 months | No | Yes | | Vit-Best | 11,884.86 | 6,030.70 | Joint and Several Liability Guarantee | 10 years | No | No | | Vit-Best | 8,880.02 | 4,694.79 | Joint and Several Liability Guarantee | 125 months | No | No | | **Total Company Guarantees** | **68,764.88** | **17,871.34** | | | | | | Proportion of Actual Total Guarantees to Company's Net Assets | | | | | | 4.13% | | Balance of Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% | | 9,871.34 | | | | | [Explanation of Other Significant Matters](index=57&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company completed the re-election of its ninth board of directors and appointment of new senior management on May 15, 2025 - The company completed the re-election of its ninth board of directors and the appointment of new senior management on May 15, 2025[196](index=196&type=chunk) [Significant Matters of Company Subsidiaries](index=57&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) Subsidiary Inner Mongolia Kingdomway Pharmaceutical Co., Ltd. subscribed to new registered capital in Zhejiang Yisite Biotechnology Co., Ltd., holding **2.36%** equity - The company's subsidiary, Inner Mongolia Kingdomway Pharmaceutical Co., Ltd., subscribed to new registered capital in Zhejiang Yisite Biotechnology Co., Ltd., holding a **2.36%** equity stake after subscription[197](index=197&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=58&type=section&id=I.%20Share%20Change%20Status) Restricted shares increased by **2,500** to **92,500** (0.02%), while unrestricted shares decreased by **2,500**, with total share capital remaining unchanged Share Change Status | Item | Quantity Before This Change (Shares) | Proportion Before This Change | Increase/Decrease in This Change (Shares) | Quantity After This Change (Shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 90,000 | 0.01% | 2,500 | 92,500 | 0.02% | | Of which: Shares held by domestic natural persons | 90,000 | 0.01% | 2,500 | 92,500 | 0.02% | | II. Unrestricted Shares | 609,844,771 | 99.99% | -2,500 | 609,842,271 | 99.98% | | Of which: RMB Ordinary Shares | 609,844,771 | 99.99% | -2,500 | 609,842,271 | 99.98% | | **III. Total Shares** | **609,934,771** | **100.00%** | **0** | **609,934,771** | **100.00%** | Restricted Share Change Status | Shareholder Name | Restricted Shares at Period Start (Shares) | Restricted Shares Increased in Current Period (Shares) | Restricted Shares at Period End (Shares) | Reason for Restriction | Date of Lifting Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Yan | 7,500 | 2,500 | 10,000 | Directors, supervisors, and senior management are prohibited from transferring company shares held within six months after resignation | 2025年11月15日, 10,000 shares will be unrestricted | | **Total** | **7,500** | **2,500** | **10,000** | | | [Number of Shareholders and Shareholding Status](index=60&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) The company has **40,719** ordinary shareholders. Top shareholders include Xiamen Kingdomway Investment Co., Ltd. (**34.71%**) and China Animal Husbandry Industry Co., Ltd. (**18.68%**), with the controlling shareholder pledging **76.89 million shares** - The total number of ordinary shareholders at the end of the reporting period was **40,719** households[204](index=204&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | Pledged, Marked, or Frozen Status (Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen Kingdomway Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 34.71% | 211,712,732 | 0 | 211,712,732 | Pledged: 76,890,000 | | China Animal Husbandry Industry Co., Ltd. | State-Owned Legal Person | 18.68% | 113,927,593 | 0 | 113,927,593 | Not applicable: 0 | | Xiamen Ankong Real Estate Group Co., Ltd. | State-Owned Legal Person | 4.88% | 29,762,564 | 0 | 29,762,564 | Not applicable: 0 | | HKSCC Nominees Limited | Overseas Legal Person | 1.14% | 6,937,239 | 0 | 6,937,239 | Not applicable: 0 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.46% | 2,812,900 | 0 | 2,812,900 | Not applicable: 0 | | Shenzhen Bisheng Private Securities Fund Management Co., Ltd. - Bisheng Niannian Sheng No. 1 Private Equity Fund | Other | 0.37% | 2,237,000 | 0 | 2,237,000 | Not applicable: 0 | | Ying Yicheng | Domestic Natural Person | 0.35% | 2,135,700 | 0 | 2,135,700 | Not applicable: 0 | | Jin Feilai | Domestic Natural Person | 0.31% | 1,901,900 | 0 | 1,901,900 | Not applicable: 0 | | China Merchants Bank Co., Ltd. - China AMC CSI 1000 ETF | Other | 0.27% | 1,662,390 | 0 | 1,662,390 | Not applicable: 0 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Overseas Legal Person | 0.25% | 1,550,220 | 0 | 1,550,220 | Not applicable: 0 | - The company's controlling shareholder, Xiamen Kingdomway Investment Co., Ltd., has no related party relationship with the other aforementioned shareholders and is not considered a party acting in concert as defined by the "Measures for the Administration of the Takeover of Listed Companies"[205](index=205&type=chunk) - Company shareholder Xiamen Kingdomway Investment Co., Ltd. holds **211,712,732 shares**, with **183,212,732 shares** held through ordinary securities accounts and **28,500,000 shares** through investor credit securities accounts[206](index=206&type=chunk) Bond-Related Information [Bond-Related Information](index=64&type=section&id=Bond-Related%20Information) The company reported no bond-related information during the current reporting period - The company had no bond-related information during the reporting period[212](index=212&type=chunk) Financial Report [Audit Report](index=65&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[214](index=214&type=chunk) [Financial Statements](index=65&type=section&id=II.%20Financial%20Statements) This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity [Consolidated Balance Sheet](index=65&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, total consolidated assets were **6.88 billion yuan**, liabilities **2.50 billion yuan**, and owner's equity **4.38 billion yuan** Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Balance at Period End (Yuan) | Balance at Period Start (Yuan) | | :--- | :--- | :--- | | **Total Assets** | **6,877,375,206.26** | **6,392,101,723.89** | | Total Current Assets | 3,063,818,309.16 | 2,667,192,524.35 | | Monetary Funds | 1,664,142,978.27 | 1,166,162,946.62 | | Financial Assets Held for Trading | 53,759,541.76 | 176,414,408.45 | | Accounts Receivable | 449,778,528.14 | 407,622,599.89 | | Inventories | 810,808,088.59 | 814,275,292.90 | | Total Non-Current Assets | 3,813,556,897.10 | 3,724,909,199.54 | | Fixed Assets | 1,253,576,058.04 | 1,302,534,498.60 | | Construction in Progress | 403,249,142.96 | 341,475,615.62 | | Goodwill | 512,610,505.18 | 514,744,413.07 | | **Total Liabilities** | **2,501,881,868.86** | **2,073,855,310.66** | | Total Current Liabilities | 1,508,160,994.27 | 1,221,219,735.42 | | Short-Term Borrowings | 661,323,832.83 | 365,872,129.47 | | Total Non-Current Liabilities | 993,720,874.59 | 852,635,575.24 | | Long-Term Borrowings | 627,119,000.00 | 537,905,000.00 | | **Total Owner's Equity** | **4,375,493,337.40** | **4,318,246,413.23** | | Total Owner's Equity Attributable to Parent Company | 4,329,961,137.84 | 4,280,636,738.63 | [Consolidated Income Statement](index=70&type=section&id=3.%20Consolidated%20Income%20Statement) In H1 2025, total operating revenue was **1.73 billion yuan** (up **13.46%**), operating profit **291 million yuan** (up **64.26%**), and net profit attributable to parent company shareholders **247 million yuan** (up **90.12%**) Consolidated Income Statement Key Data (2025 Semi-Annual) | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 1,728,484,797.27 | 1,523,404,893.56 | | II. Total Operating Costs | 1,440,065,759.89 | 1,349,247,533.69 | | III. Operating Profit | 291,410,929.14 | 177,412,131.10 | | IV. Total Profit | 290,790,674.62 | 172,955,766.03 | | Less: Income Tax Expense | 51,506,937.95 | 40,952,125.43 | | V. Net Profit | 239,283,736.67 | 132,003,640.60 | | Net Profit Attributable to Parent Company Shareholders | 247,313,409.59 | 130,083,671.32 | | Minority Interest Income/Loss | -8,029,672.92 | 1,919,969.28 | | VI. Net Other Comprehensive Income After Tax | 39,375,282.31 | 36,570,403.15 | | Net Other Comprehensive Income After Tax Attributable to Parent Company Owners | 42,895,282.31 | 36,500,303.80 | | VII. Total Comprehensive Income | 278,659,018.98 | 168,574,043.75 | | Total Comprehensive Income Attributable to Parent Company Owners | 290,208,691.90 | 166,583,975.12 | | VIII. Earnings Per Share: Basic/Diluted | 0.41 / 0.41 | 0.21 / 0.21 | [Consolidated Cash Flow Statement](index=73&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) In H1 2025, net cash flow from operating activities was **327 million yuan** (up **133.48%**), from investing activities **8.04 million yuan** (turned po

Market Overview - On August 26, the food processing sector rose by 0.39% compared to the previous trading day, with Huadong Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3868.38, down 0.39%, while the Shenzhen Component Index closed at 12473.17, up 0.26% [1] Stock Performance - Key stocks in the food processing sector showed varied performance, with Huadong Co., Ltd. closing at 11.31, up 3.67% with a trading volume of 354,400 shares and a turnover of 397 million yuan [1] - Other notable performers included Quandawei, which closed at 19.93, up 3.53%, and Guangming Meat Industry, which closed at 7.86, up 2.88% [1] Capital Flow - The food processing sector experienced a net outflow of 11.01 million yuan from institutional investors, while retail investors saw a net inflow of 83.25 million yuan [2] - The overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors increased their positions [2] Individual Stock Capital Flow - Huadong Co., Ltd. had a net inflow of 56.99 million yuan from institutional investors, while it faced a net outflow of 41.19 million yuan from retail investors [3] - Other stocks like Jindawei and Tangchen Beijian also saw significant net inflows from institutional investors, indicating strong interest in these companies [3]

Core Viewpoint - Xiamen Jindawei Group Co., Ltd. has received approval from the China Securities Regulatory Commission to issue convertible bonds totaling approximately 1.29 billion yuan, with the bonds named "Jinwei Convertible Bonds" [1][2]. Group 1: Issuance Details - The total scale of the convertible bond issuance is 1,292,394,800 yuan, with a face value of 100 yuan per bond, amounting to 12,923,948 bonds issued at par value [2]. - The original shareholders were given priority to subscribe to the bonds, with a total of 10,790,785 bonds subscribed, amounting to 1,079,078,500 yuan, which represents 83.49% of the total issuance [2]. - The remaining bonds after the original shareholders' subscription were made available for public investors through the Shenzhen Stock Exchange [2]. Group 2: Underwriting and Subscription Results - The underwriter, GF Securities, will underwrite any bonds that were not subscribed by online investors or were invalid due to insufficient funds, totaling 35,237 bonds, amounting to 3,523,700 yuan, which is 0.27% of the total issuance [3]. - The subscription process for online investors concluded on August 22, 2025, and notifications were sent to those who successfully subscribed [2][3].