Financial Performance - The company reported a revenue of approximately 405 million yuan, representing a year-on-year increase of 33.49% [1] - The net profit attributable to shareholders was about 52.48 million yuan, showing a significant year-on-year growth of 166.07% [1] - Basic earnings per share reached 0.4 yuan, reflecting a year-on-year increase of 166.67% [1] Business Development - The traditional flue gas treatment business has expanded into the paper industry while consolidating its position in the steel and coking sectors, achieving a leading status [1] - The company has established partnerships with several enterprises, including Guangxi Beigang New Materials and Hubei Zhongte Coking, among others [1] - In the paper industry, the company completed the delivery of a low-temperature denitrification project for Asia Pacific Senbo and secured new orders from various paper companies [1] Strategic Initiatives - The company’s "one body, two wings" strategy has made positive progress in carbon capture and storage (CCUS) and sodium battery sectors [2] - In the CCUS business, the company is promoting the TX series absorbents for ship carbon capture applications and has signed strategic cooperation agreements with leading enterprises and research institutions [2] - The company has developed a two-phase absorbent with significant engineering application potential, overcoming various industry challenges [2] Sodium Battery Development - The third-generation sodium battery positive material (NFPP) exhibits high specific capacity, long cycle stability, and low cost, reaching a leading level domestically [3] - The first-generation high initial charge S-NFPP material has successfully completed pilot testing with stable performance [3] - The third-generation NFPP material has undergone short cell trials and is aimed at applications in low-speed electric vehicles and energy storage [3]

Core Viewpoint - Tongxing Environmental Technology Co., Ltd. reported significant growth in its H1 2025 performance, with a revenue of 405 million yuan, a year-on-year increase of 33.49%, and a net profit of 52.48 million yuan, up 166.07% [1] Financial Performance - The company achieved a gross profit margin of 27.71% in H1 2025, an increase of 7.33 percentage points compared to the same period last year [1] - In Q2 2025, the gross profit margin reached 34.92%, up 12.69 percentage points year-on-year [1] - The net cash flow from operating activities was 107 million yuan, reflecting an 83.40% year-on-year growth [1] Business Development - The company signed new contracts worth 459 million yuan during the reporting period, with catalyst orders contributing 281 million yuan, a 42.22% increase year-on-year [2] - The growth in catalyst business is driven by increased demand for environmental emission standards and the company's technological advantages in low-temperature SCR denitrification [2] - A significant project for Nanjing Steel's energy-saving initiative demonstrated a gas savings rate exceeding 38% after implementation, enhancing the company's brand influence [2] Product Innovation - The third-generation NFPP (sodium-ion battery cathode material) has been successfully developed, showing significant improvements in cost reduction and a maximum packing density of 2.3 g/cm³ [3] - The capacity of the third-generation NFPP can reach 110 mAh/g, with advantages in high specific capacity, long cycle stability, high rate performance, good packing density, and low cost, achieving a leading level in the domestic market [3] Industry Outlook - The company's positioning in the environmental engineering and new energy materials sectors is expected to yield further results as the national "dual carbon" goals continue to advance [3] - The company is anticipated to leverage its technological advantages to accelerate the industrial application of green low-carbon technologies, creating greater value for shareholders [3]

Financial Performance - Company reported total revenue of 405 million yuan for the first half of 2025, a year-on-year increase of 33.49% [1] - Net profit attributable to shareholders reached 52.48 million yuan, up 166.07% year-on-year [1] - In Q2 2025, total revenue was 223 million yuan, reflecting a 10.98% increase year-on-year, while net profit was 38.86 million yuan, up 243.89% year-on-year [1] Profitability Metrics - Gross margin improved to 27.71%, a year-on-year increase of 36% [1] - Net margin increased to 13.0%, showing a year-on-year growth of 75.24% [1] - Total selling, administrative, and financial expenses amounted to 9.86 million yuan, accounting for 2.44% of revenue, a decrease of 75.2% year-on-year [1] Earnings and Cash Flow - Earnings per share (EPS) rose to 0.4 yuan, a 166.67% increase year-on-year [1] - Operating cash flow per share was 0.96 yuan, reflecting an 83.4% increase year-on-year [1] - Book value per share slightly decreased to 12.98 yuan, down 0.35% year-on-year [1] Debt and Receivables - The company reported a significant reduction in interest-bearing debt, down 76.69% to 53.11 million yuan [1] - Accounts receivable increased by 4.14% to 492 million yuan [1] Business Model and Investment Returns - The company's return on invested capital (ROIC) was 1.31% last year, indicating weak capital returns [3] - Historical median ROIC since listing stands at 13.19%, suggesting better investment returns in the past [3] - The company relies heavily on research and development for its business performance [3] Production Capacity - The designed production capacity for the company's sodium battery pilot line is 200 tons, currently nearing 300 tons due to improved firing rates [3]

Core Viewpoint - The company, Tongxing Environmental Technology Co., Ltd., has released its 2025 semi-annual report, indicating stable operational performance without significant changes during the reporting period [1][5]. Group 1: Company Overview - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period [5]. - The company does not plan to distribute cash dividends, issue bonus shares, or convert reserves into share capital [3][5]. Group 2: Board Meeting - The fifth board meeting was held on August 15, 2025, with all nine directors present, and the meeting was conducted in accordance with relevant laws and regulations [7][9]. - The board approved the proposal regarding the full text and summary of the 2025 semi-annual report [8][9]. Group 3: Supervisory Board Meeting - The fifth supervisory board meeting took place on August 15, 2025, with all three supervisors present, and the meeting complied with legal requirements [13][16]. - The supervisory board confirmed that the 2025 semi-annual report was prepared in accordance with applicable laws and regulations, ensuring its content is true, accurate, and complete [14][16].

Core Viewpoint - The report highlights significant growth in revenue and net profit for Tongxing Environmental Technology Co., Ltd. in the first half of 2025 compared to the same period in 2024, indicating a positive trend in the company's financial performance [2][4]. Financial Performance - Operating revenue for the reporting period reached approximately ¥404.92 million, representing a 33.49% increase from ¥303.34 million in the same period last year [2]. - Net profit attributable to shareholders was approximately ¥52.48 million, marking a substantial increase of 166.07% from ¥19.73 million year-on-year [2]. - The net profit after deducting non-recurring gains and losses was not specified, but the overall financial health appears robust [2]. - The net cash flow from operating activities was approximately ¥125.64 million, an increase of 83.40% from ¥68.51 million in the previous year [2]. - Basic and diluted earnings per share both increased to ¥0.40, up 166.67% from ¥0.15 [2]. Asset and Equity Position - Total assets at the end of the reporting period were approximately ¥2.56 billion, reflecting a 3.77% increase from ¥2.46 billion at the end of the previous year [2]. - Net assets attributable to shareholders were approximately ¥1.70 billion, showing a slight decrease of 0.34% from ¥1.70 billion at the end of the previous year [3]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,489 [3]. - Major shareholders include Zhu Qingya holding 17.49% and Xie Dao Dong holding 9.23% of the shares [3]. - The company did not distribute cash dividends or issue new shares during the reporting period [2].

Group 1 - The board meeting of Tongxing Environmental Technology Co., Ltd. was held on August 15, 2025, with all 9 directors present, ensuring compliance with relevant laws and regulations [1] - The meeting resulted in a unanimous decision with 9 votes in favor, 0 against, and 0 abstentions [1] - The notice for the meeting was sent out on August 5, 2025, through various methods including personal delivery and email [1] Group 2 - The meeting was chaired by Chairman Zheng Guangming, with attendance from supervisors and senior management [1] - Detailed content of the meeting's resolutions is available on the official website [1]

Group 1 - The meeting of the fifth supervisory board of Tongxing Environmental Protection Technology Co., Ltd. was held on August 15, 2025, with all three supervisors present, confirming the legality and validity of the meeting [1] - The supervisory board reviewed the company's 2025 semi-annual report, concluding that it complies with relevant laws, regulations, and the company's articles of association, and accurately reflects the company's actual situation without any false records or misleading statements [1][2] - The voting results of the meeting were unanimous, with 3 votes in favor, 0 against, and 0 abstentions [1]

Core Viewpoint - The financial report of Tongxing Environmental Technology Co., Ltd. for the first half of 2025 shows significant growth in revenue and net profit compared to the same period in 2024, indicating a positive trend in the company's financial performance [1][4]. Financial Performance - Total operating revenue for the first half of 2025 reached CNY 404,922,215.94, an increase from CNY 303,339,565.55 in the same period of 2024, representing a growth of approximately 33.5% [4]. - Total operating costs increased to CNY 324,717,159.37 from CNY 294,234,942.09, reflecting a rise of about 10.4% [4]. - The net profit for the first half of 2025 was CNY 52,649,493.66, compared to CNY 22,507,165.92 in the previous year, marking a substantial increase [5]. Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 2,557,084,349.57, up from CNY 2,464,184,463.02 at the beginning of the year [2][3]. - Total liabilities increased to CNY 767,647,845.08 from CNY 667,878,167.28, indicating a rise in the company's obligations [2][3]. - Total equity decreased slightly to CNY 1,789,436,504.49 from CNY 1,796,306,295.74, showing a minor reduction in shareholder equity [2][3]. Cash Flow - Net cash flow from operating activities for the first half of 2025 was CNY 125,636,687.68, compared to CNY 68,505,457.30 in the same period of 2024, indicating improved cash generation [6]. - Cash and cash equivalents at the end of the period were CNY 423,929,860.08, reflecting a decrease from CNY 527,843,314.31 at the beginning of the year [7]. Earnings Per Share - Basic and diluted earnings per share for the first half of 2025 were both CNY 0.40, up from CNY 0.15 in the same period of 2024, indicating a significant improvement in profitability per share [5].

Summary of Key Points Core Viewpoint - The financial report of Tongxing Environmental Technology Co., Ltd. highlights significant non-operating fund occupations and inter-company transactions, indicating potential liquidity issues and reliance on related parties for funding [1][2]. Group 1: Non-Operating Fund Occupation - The report details non-operating fund occupations by controlling shareholders and their subsidiaries, with a total balance of 64,352,382.15 yuan from Anhui Fangxin Lihua Environmental Technology Co., Ltd. and 86,845,000.00 yuan from Beijing Fangxin Lihua Technology Co., Ltd. [1] - The total amount of non-operating fund occupations at the end of the reporting period is significant, suggesting a reliance on related parties for financial support [1]. Group 2: Inter-Company Transactions - The report lists inter-company transactions with various subsidiaries, including 239,049,729.89 yuan from Ma'anshan Fangxin Environmental Technology Co., Ltd. and 5,110,000.00 yuan from Hefei Haosheng New Energy Technology Co., Ltd. [1] - The total inter-company transactions amount to 400,924,860.5 yuan, indicating extensive financial interactions among related entities [2].

[Important Notice, 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 crucial disclaimers, lists the report structure, and defines key terms [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management assures report accuracy and completeness, cautions on forward-looking statements, and confirms no profit distribution for the period - Company management guarantees the report's truthfulness, accuracy, and completeness, advising investors to note risks in forward-looking statements[3](index=3&type=chunk) - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for this half-year period[4](index=4&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This chapter defines key terms and concepts used in the report, covering company operations, core technologies, and financial periods for clarity Definitions of Core Business and Technical Terms | Term | Definition | | :--- | :--- | | **Flue Gas Treatment** | Removal of harmful substances such as sulfur oxides, nitrogen oxides, and dust from exhaust gases emitted by coal-fired boilers and kilns to meet discharge standards | | **Non-Power Industry** | Coal-fired industries other than thermal power, primarily including steel, coking, and building materials | | **SCR** | Selective Catalytic Reduction, the most widely used denitration technology, where a reducing agent reacts with nitrogen oxides in flue gas to form nitrogen and water under the action of a catalyst | | **Low-Temperature SCR Denitration Catalyst** | A catalyst with high denitration performance in the temperature range of 180℃ to 300℃ | | **CCUS** | Refers to Carbon Capture, Utilization, and Storage technology | | **Reporting Period** | January 1, 2025, to June 30, 2025 | [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 basic company information and highlights key financial performance metrics [Company Profile](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Tongxing Environmental Protection Technology Co Ltd, stock code 003027, listed on the Shenzhen Stock Exchange, with Zheng Guangming as its legal representative Company Basic Information | Item | Content | | :--- | :--- | | **Stock Abbreviation** | Tongxing Technology | | **Stock Code** | 003027 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Full Company Name** | Tongxing Environmental Protection Technology Co Ltd | | **Legal Representative** | Zheng Guangming | [Key Accounting Data and Financial Indicators](index=8&type=section&id=%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) During the reporting period, the company achieved robust performance with revenue growing **33.49%** to **405 million yuan** and net profit attributable to shareholders surging **166.07%** to **52.48 million yuan**, reflecting strong core business profitability and healthy cash flow Key Financial Indicators for H1 2025 | Indicator | Current Reporting Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (Yuan)** | 404,922,215.94 | 303,339,565.55 | 33.49% | | **Net Profit Attributable to Shareholders (Yuan)** | 52,484,491.57 | 19,725,504.27 | 166.07% | | **Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (Yuan)** | 50,372,305.64 | 6,903,494.78 | 629.66% | | **Net Cash Flow from Operating Activities (Yuan)** | 125,636,687.68 | 68,505,457.30 | 83.40% | | **Basic Earnings Per Share (Yuan/Share)** | 0.40 | 0.15 | 166.67% | | **Weighted Average Return on Net Assets** | 3.11% | 1.16% | Increased by 1.95 percentage points | - During the reporting period, the company's total non-recurring gains and losses amounted to **2.11 million yuan**, primarily from government subsidies[23](index=23&type=chunk)[24](index=24&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 in-depth review of the company's operations, financial performance, and strategic initiatives [Principal Business and Operating Performance](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's core business spans flue gas treatment, catalyst R&D, CCUS, and sodium-ion battery materials, achieving significant revenue and net profit growth driven by project deliveries, while making key advancements in new energy sectors and initiating overseas revenue [Principal Business and Operating Model](index=10&type=section&id=%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E4%B8%8E%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's main business focuses on four segments: environmental engineering, catalyst R&D, CCUS, and sodium-ion battery materials, primarily operating through EPC contracts and direct sales with a build-to-order model - The company's main business is divided into four segments: - **Flue Gas Treatment**: Provides EPC services for dust removal, desulfurization, and denitration, focusing on non-power industries - **Catalyst Products**: R&D and production of low-temperature SCR denitration catalysts, carbon capture absorbents, etc - **CCUS**: Carbon capture, utilization, and storage - **Sodium-ion Batteries**: R&D and production of key materials and components for sodium-ion batteries[26](index=26&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - The company adopts a build-to-order production model and direct sales, with products and services characterized by non-standardization and customization[36](index=36&type=chunk)[40](index=40&type=chunk) [Operating Performance Review](index=12&type=section&id=%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E5%9B%9E%E9%A1%BE) In H1 2025, the company significantly improved operating performance with substantial revenue and net profit growth, increased new orders, strengthened market position in denitration, advanced CCUS and sodium-ion battery technologies, and achieved initial overseas revenue Key Operating Indicators for H1 2025 | Indicator | Amount | Year-on-Year Growth | | :--- | :--- | :--- | | **Operating Revenue** | 405 million yuan | 33.49% | | **Net Profit Attributable to Shareholders** | 52.48 million yuan | 166.07% | | **New Orders Signed** | 459 million yuan | - | | **New Catalyst Orders Signed** | 281 million yuan | 42.22% | | **Net Cash Flow from Operating Activities** | 107 million yuan | 83.40% | - **CCUS Business Progress**: TX series absorbents have been applied in two marine carbon capture units, and strategic cooperation agreements have been signed with Wison Engineering and MCC Jingcheng for joint domestic and international market development[43](index=43&type=chunk)[45](index=45&type=chunk) - **Sodium-ion Battery Business Progress**: Third-generation NFPP material is in formal production, achieving domestic first-class performance; first-generation high initial charge S-NFPP material is ready for mass production; and a 50Ah short-blade cell has been successfully co-developed with a third party[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - **Overseas Business Breakthrough**: Overseas operating revenue reached **1.53 million yuan** in H1, with a gross profit margin of **57.21%**, marking the first step in the company's internationalization strategy[51](index=51&type=chunk) [Analysis of Core Competencies](index=14&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 lie in technology, talent, management, innovation, and brand, featuring advanced ultra-low emission technologies, a stable management team, continuous R&D, and a strong brand reputation in non-power flue gas treatment - **Technological Advantages**: The company possesses various ultra-low emission technologies, including dry, semi-dry, wet desulfurization, and medium-to-low temperature SCR denitration, with its low-temperature SCR denitration catalysts, TX series carbon capture absorbents, and third-generation NFPP sodium-ion battery materials reaching international advanced or domestic first-class levels[56](index=56&type=chunk)[57](index=57&type=chunk) - **Management and Talent Advantages**: A stable core management team and abundant human resource reserves enhance organizational vitality and operational efficiency through business unit implementation, refined operations, and digitalization[58](index=58&type=chunk)[59](index=59&type=chunk) - **Innovation and Brand Advantages**: The company has established a provincial technology center and postdoctoral workstation, actively participates in industry standard setting, and has built a leading position and strong brand image in non-power industry flue gas treatment through benchmark projects in coking and steel sectors[60](index=60&type=chunk)[61](index=61&type=chunk) [Analysis of Principal Business](index=16&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's principal business revenue grew **33.49%** due to project deliveries, while financial expenses significantly decreased by **1341.61%** due to increased financing income and interest; flue gas treatment engineering was the main growth driver, and the atmospheric pollution control sector contributed **99.7%** of revenue with improved gross margin Year-on-Year Changes in Key Financial Data | Item | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 404,922,215.94 | 303,339,565.55 | 33.49% | Concentrated delivery of key projects | | **Financial Expenses** | -18,783,238.16 | 1,512,811.37 | -1,341.61% | Increase in unrealized financing income and interest income | | **Income Tax Expense** | 6,303,918.34 | 1,065,037.69 | 491.90% | Due to increased gross profit | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (Yuan) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Flue Gas Treatment Engineering and Equipment** | 248,304,960.10 | 61.32% | 72.39% | | **Catalysts** | 154,930,277.49 | 38.26% | -2.09% | | **Absorbents** | 461,946.94 | 0.11% | - | [Analysis of Assets and Liabilities](index=17&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) As of the reporting period end, total assets increased by **3.77%** to **2.56 billion yuan**, with accounts receivable rising due to project deliveries, while short-term borrowings significantly decreased to reduce financial expenses, indicating overall stable asset quality Changes in Key Balance Sheet Items | Item | End of Current Reporting Period (Yuan) | Proportion of Total Assets | Explanation of Change from End of Previous Year | | :--- | :--- | :--- | :--- | | **Total Assets** | 2,557,084,349.57 | 100% | Increased by 3.77% | | **Accounts Receivable** | 491,869,271.58 | 19.24% | Increased by 2.28 percentage points, mainly due to concentrated delivery of key projects | | **Short-term Borrowings** | 0.00 | 0.00% | Decreased by 3.25 percentage points, mainly due to reduced bank financing to lower financial expenses | - As of the reporting period end, **61.64 million yuan** of the company's assets were restricted, primarily comprising bank acceptance bill deposits, letter of guarantee deposits, and frozen account funds[75](index=75&type=chunk) [Risks and Countermeasures](index=21&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 intensified market competition, accounts receivable collection, and new product industrialization, addressed by increased R&D, diversified business expansion, enhanced credit assessment, and continuous market research and innovation - **Intensified Market Competition Risk**: Increased technological capabilities of industry players and new entrants, including large state-owned enterprises, may reduce market share and profitability[85](index=85&type=chunk) - **Accounts Receivable Collection Risk**: As business expands, accounts receivable may increase, potentially leading to bad debt losses if downstream customers' financial conditions deteriorate[86](index=86&type=chunk) - **New Product and Project Industrialization Risk**: New businesses like CCUS and sodium-ion batteries face risks of not meeting expected benefits due to market demand, policy changes, and competition[86](index=86&type=chunk) [Corporate Governance, Environment and Society](index=22&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 details the company's governance structure, changes in key personnel, and its commitment to environmental and social responsibilities [Corporate Governance](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) During the reporting period, the company experienced changes in its board and senior management, including a CFO dismissal and director appointments, while confirming no profit distribution or equity incentive plans for the half-year Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Li Guangming | CFO | Dismissal | April 28, 2025 | Personal reasons | | Chu Hongzhou | Director | Resignation | May 13, 2025 | Personal reasons | | He Hong | Director | Elected | May 14, 2025 | Work transfer | | Shen Bolei | Director | Elected | May 14, 2025 | Work transfer | - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the half-year period[90](index=90&type=chunk) [Environmental and Social Responsibility](index=23&type=section&id=%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company actively fulfills its environmental and social responsibilities, with a subsidiary listed for environmental information disclosure and approximately **730,000 yuan** invested in philanthropy during the reporting period - Subsidiary Ma'anshan Fangxin Environmental Protection Technology Co Ltd has been included in the list of enterprises required to disclose environmental information by law[92](index=92&type=chunk) - During the reporting period, the company invested approximately **730,000 yuan** in social responsibility initiatives, including donations for education and public welfare activities[93](index=93&type=chunk) [Significant Matters](index=24&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) During the reporting period, the company had no significant related party transactions, illegal guarantees, or controlling shareholder fund occupation, and its semi-annual financial report is unaudited; minor litigation exists, and the company engaged in approximately **410 million yuan** in entrusted wealth management - The company had no significant unfulfilled commitments, controlling shareholder fund occupation, illegal guarantees, major related party transactions, or bankruptcy reorganization matters during the reporting period[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[104](index=104&type=chunk) Summary of Other Litigation Matters | Litigation Party | Amount Involved (Ten Thousand Yuan) | Progress | | :--- | :--- | :--- | | **Company as Plaintiff** | 5,048.63 | Some cases settled/withdrawn/won | | **Company as Defendant** | 741.82 | Some cases heard but not yet ruled/re-trial application | Entrusted Wealth Management (Unit: Ten Thousand Yuan) | Specific Type | Amount of Entrusted Wealth Management Occurred | Unmatured Balance | | :--- | :--- | :--- | | **Bank Wealth Management Products** | 37,070.56 | 28,213.74 | | **Brokerage Wealth Management Products** | 4,000.00 | 4,000.00 | | **Total** | 41,070.56 | 32,213.74 | [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 details changes in share capital, share repurchase activities, and the company's shareholder structure [Share Changes](index=28&type=section&id=%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained at **130,723,200 shares**, with restricted shares increasing by **27,000** due to executive lock-ups, and a share repurchase program completed on March 21, 2025, totaling **2.93 million shares** or **2.24%** of total capital for approximately **39.99 million yuan** - During the reporting period, restricted shares increased by **27,000** to **25,862,232** due to executive share lock-ups, while unrestricted shares decreased accordingly to **104,860,968**, with total share capital remaining unchanged[123](index=123&type=chunk)[124](index=124&type=chunk) - The company completed a share repurchase on March 21, 2025, accumulating **2.93 million shares** (**2.24%** of total share capital) for a total transaction value of **39.99 million yuan**[124](index=124&type=chunk) [Shareholder Information](index=30&type=section&id=%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the reporting period end, the company had **19,489** common shareholders, with the top ten holding **53.57%**; Zhu Qingya, Zhu Ning, Xie Daodong, and Lang Yiguang are parties acting in concert, collectively holding **43.65%** of the total shares, and the actual controller remains unchanged - As of the reporting period end, the company had **19,489** shareholders[129](index=129&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held at Period End | | :--- | :--- | :--- | | **Zhu Qingya** | 17.49% | 22,869,516 | | **Zhu Ning** | 10.66% | 13,937,550 | | **Xie Daodong** | 9.23% | 12,066,282 | | **Lang Yiguang** | 6.27% | 8,196,745 | | **Zheng Zhicheng** | 2.24% | 2,933,653 | - Shareholders Zhu Qingya, Zhu Ning, Xie Daodong, and Lang Yiguang are parties acting in concert; Zhu Qingya and Zhu Ning are siblings[129](index=129&type=chunk) [Financial Report](index=35&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 chapter presents the company's unaudited H1 2025 consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes covering company information, accounting policies, and major financial items [Financial Statements](index=35&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's core financial statements for H1 2025, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, reflecting financial position, operating results, and cash flows - Financial statements include: - Consolidated and Parent Company Balance Sheets (as of June 30, 2025) - Consolidated and Parent Company Income Statements (H1 2025) - Consolidated and Parent Company Cash Flow Statements (H1 2025) - Consolidated and Parent Company Statements of Changes in Owners' Equity (H1 2025)[139](index=139&type=chunk)[143](index=143&type=chunk)[147](index=147&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk)[164](index=164&type=chunk) [Notes to Consolidated Financial Statements](index=120&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes and analysis of key consolidated financial statement items, including **485 million yuan** in monetary funds with **61.46 million yuan** restricted, **878 million yuan** in accounts receivable and contract assets related to project deliveries, **145 million yuan** in stable inventory, and flue gas treatment engineering as the primary revenue driver - As of period end, monetary funds totaled **485 million yuan**, with **61.46 million yuan** restricted, including bank acceptance bill deposits, letter of guarantee deposits, and frozen funds[435](index=435&type=chunk) - Accounts receivable book value was **492 million yuan** at period end, a **17.7%** increase from the beginning of the period; the top five customers' accounts receivable and contract assets collectively accounted for **41.42%** of the total[457](index=457&type=chunk)[468](index=468&type=chunk) - Inventory book value was **145 million yuan** at period end, largely unchanged from the beginning of the period, with raw materials and semi-finished goods accounting for a higher proportion[524](index=524&type=chunk) - Revenue corresponding to performance obligations from contracts signed but not yet fulfilled or fully fulfilled amounted to **422 million yuan** at the end of the reporting period[686](index=686&type=chunk)