山东泰和科技股份有限公司 董事、高级管理人员薪酬管理制度 第一章 总则 第一条 为进一步建立山东泰和科技股份有限公司（以下简称"公司"）董 事、高级管理人员的薪酬管理制度，有效调动公司董事、高级管理人员的工作积 极性，建立与现代企业制度相适应的激励约束机制，合理确定公司董事、高级管 理人员的薪酬水平及支付方式，根据《公司法》及《公司章程》等规定，结合公 司实际情况制定本制度。 第二条 本制度适用于以下人员： 第七条 董事薪酬 （一）非独立董事 （一）公司董事会成员，包括独立董事、非独立董事（包括在公司担任其他 职务的董事及职工代表董事）。 （二）公司高级管理人员，包括总经理、副总经理、财务总监、董事会秘书。 第三条 本制度所指的"董事、高级管理人员薪酬"，是指在公司担任董事、 高级管理人员并履行相应职责所领取的相应报酬。 第二章 薪酬管理机构 第四条 股东会作为公司的最高权力机构，负责审议批准本制度的实施、变 更和终止。 第五条 公司董事会授权薪酬与考核委员会负责制定公司董事、高级管理人 员的薪酬标准，负责审查公司董事、高级管理人员履行职责并对其进行年度考核， 负责监督本制度的执行。 第六条 公司人力资源部、 ...

山东泰和科技股份有限公司 会计师事务所选聘制度 第一章 总则 第一条 为规范山东泰和科技股份有限公司（以下简称"公司"）选聘（含 续聘、改聘）会计师事务所的行为，切实维护股东利益，提高财务信息披露质量， 根据《中华人民共和国公司法》《中华人民共和国证券法》《深圳证券交易所创 业板股票上市规则》《国有企业、上市公司选聘会计师事务所管理办法》等有关 法律法规和规范性文件，以及《山东泰和科技股份有限公司章程》（以下简称"《公 司章程》"）的规定，结合公司实际情况，制定本制度。 第二条 本制度所称选聘会计师事务所，是指公司根据相关法律法规要求， 聘任会计师事务所对公司财务会计报告发表审计意见、出具审计报告的行为。公 司聘任会计师事务所从事除财务会计报告审计之外的其他法定审计业务的，可以 参照本制度执行。 第三条 公司选聘会计师事务所时，应当由审计委员会全体成员过半数审议 同意后，提交董事会审议，并由股东会决定。 第四条 公司选聘会计师事务所应当采用竞争性谈判、公开招标、邀请招标 以及其他能够充分了解会计师事务所胜任能力的选聘方式，保障选聘工作公平、 公正进行。 （五）认真执行有关财务审计的法律、法规、规章和政策规定， ...

第二条 本制度所称内部审计，指公司内部审计机构或内部审计人员，依据国 家有关法律法规和本制度的规定，对公司内部控制和风险管理的有效性、财务信息 的真实性和完整性以及经营活动的效率和效果等开展的一种评价活动。 第三条 本制度适用于公司及其子公司。 山东泰和科技股份有限公司 内部审计制度 第一章 总 则 第一条 为规范山东泰和科技股份有限公司（以下简称"公司"）内部审计工 作，提高内部审计工作质量，明确内部审计机构和人员的职责，促进经营管理，保 护投资者合法权益，根据《中华人民共和国审计法》《审计署关于内部审计工作的 规定》《企业内部控制基本规范》《深圳证券交易所上市公司自律监管指引第2号— 创业板上市公司规范运作》等法律法规、规范性文件及《山东泰和科技股份有限公 司章程》（以下简称"《公司章程》"）的规定，结合公司实际情况，特制定本制 度。 第二章 内部审计机构和内部审计人员 第四条 公司在董事会下设立审计委员会，建立内部审计制度，设立内部审计 部门，对公司的业务活动、风险管理、内部控制、财务信息等事项进行监督检查。 内部审计机构对董事会负责。内部审计机构在对公司业务活动、风险管理、内 部控制、财务信息等情况进 ...

山东泰和科技股份有限公司 第六条 薪酬与考核委员会设主任委员（召集人）1 名，由独立董事委员担任， 负责主持委员会工作，主任委员由薪酬与考核委员会在独立董事委员中提名，由薪 酬与考核委员的过半数选举产生或罢免。主任委员不能履行职务或不履行职务的， 由半数以上委员共同推举 1 名委员代履行职务。 第七条 薪酬与考核委员会任期与董事会任期一致，委员任期届满，可以连选连 任。期间如有委员不再担任公司董事职务，自动失去委员资格，并由委员会根据上 述第四条至第六条规定补足委员人数。 董事会薪酬与考核委员会议事规则 第一章 总则 第一条 为进一步建立健全公司董事、总经理及其他高级管理人员的薪酬和考核 管理制度，完善公司治理结构，根据《中华人民共和国公司法》《上市公司治理准 则》《公司章程》及其他有关规定，公司特设董事会薪酬与考核委员会，并制定本 议事规则。 第二条 薪酬与考核委员会是董事会下设的专门工作机构，主要工作是拟定公司 董事、高级管理人员的考核标准并进行考核；负责制定、审查公司董事、高级管理 人员薪酬政策与方案。 第三条 本规则所称董事是指在本公司领取薪酬的非独立董事及在公司领取津 贴的独立董事；高级管理人员是指 ...

山东泰和科技股份有限公司 总经理工作细则 第一章 总则 第一条 为进一步完善山东泰和科技股份有限公司（以下简称"公司"）的 法人治理结构，根据《中华人民共和国公司法》（以下简称"《公司法》"）等 有关法律、法规及《公司章程》的规定，制定本工作细则。 （三）具有一定年限的企业管理或经济工作经历，精通本行，熟悉生产经营 业务，熟悉国家有关政策、法律、法规，具有一定的财会知识及税务知识； （四）诚信勤勉、廉洁奉公、民主公道； （五）年富力强，具有强烈的使命感和积极开拓的进取精神。 第三条 有下列情形之一的，不得担任公司总经理： （一）无民事行为能力或者限制民事行为能力； （二）因贪污、贿赂、侵占财产、挪用财产或者破坏社会主义市场经济秩序， 被判处刑罚，或者因犯罪被剥夺政治权利，执行期满未逾五年，被宣告缓刑的， 自缓刑考验期满之日起未逾二年； （三）担任破产清算的公司、企业的董事或者厂长、经理，对该公司、企业 的破产负有个人责任的，自该公司或企业破产清算完结之日起未逾三年； 第二章 总经理的任职资格与任免程序 第二条 总经理的任职资格： （一）具有较为丰富的经济理论知识、管理知识，熟知公司各业务流程，具 有较强的经营 ...

山东泰和科技股份有限公司 信息披露管理制度 第一章 总则 第一条 为规范山东泰和科技股份有限公司（以下简称"公司"）的信息披 露行为，确保公司信息披露的真实、准确、完整与及时，切实保护公司、股东及 投资者的合法权益，根据《中华人民共和国证券法》（以下简称"《证券法》"）、 《上市公司信息披露管理办法》（以下简称"《信息披露管理办法》"）、《深 圳证券交易所创业板股票上市规则》（以下简称"《上市规则》"）等相关法律、 法规、规范性文件以及《山东泰和科技股份有限公司章程》（以下简称"《公司 章程》"）的规定，制定本制度。 第二条 本制度适用于公司、控股子公司信息披露的管理。 本制度所称"信息披露义务人"，是指公司及其董事、高级管理人员、股东、 实际控制人，收购人，重大资产重组、再融资、重大交易有关各方等自然人、单 位及其相关人员，破产管理人及其成员，以及法律、行政法规和中国证监会规定 的其他承担信息披露义务的主体。 第三条 信息披露义务人应当及时依法履行信息披露义务，披露的信息应当 真实、准确、完整，简明清晰、通俗易懂，不得有虚假记载、误导性陈述或者重 大遗漏。 信息披露义务人披露的信息应当同时向所有投资者披露， ...

山东泰和科技股份有限公司 第一条 为适应公司战略发展需要，增强公司核心竞争力，确定公司发展规 划，健全投资决策程序，加强决策科学性，提高重大决策的效率和决策水平，完 善公司治理结构，增强公司核心竞争力，根据《中华人民共和国公司法》《上市 公司治理准则》等法律法规、规范性文件和《山东泰和科技股份有限公司章程》 （以下简称"《公司章程》"）的规定，公司特设董事会战略委员会并制定本议 事规则。 第二条 战略委员会是董事会下设的专门工作机构，主要工作是对公司长期 发展战略和重大投资决策进行研究并向公司董事会提出建议、方案。 第二章 人员组成 第三条 战略委员会成员由 3 名董事组成，其中至少 1 名为独立董事。 第四条 战略委员会委员由董事长、1/2 以上的独立董事或全体董事的 1/3 提名，并由董事会选举产生，委员选举由全体董事的过半数通过。 第五条 战略委员会设主任委员（召集人）1 名，由公司董事长担任，如董 事长并非战略委员会委员，则由战略委员会委员在成员中提名，由战略委员会委 员的过半数选举产生或罢免。主任委员不能履行职务或不履行职务的，由半数以 上委员共同推举 1 名委员代履行职务。 第六条 战略委员会任期 ...

山东泰和科技股份有限公司 远期结汇业务管理制度 第一章 总则 第一条 为规范山东泰和科技股份有限公司（以下简称"公司"）及下属子 公司远期结汇业务，有效防范和控制风险，加强对远期结汇业务的管理，根据《中 华人民共和国公司法》《中华人民共和国证券法》《上市公司信息披露管理办法》 《深圳证券交易所创业板股票上市规则》《深圳证券交易所上市公司自律监管指 引第 2 号——创业板上市公司规范运作》《深圳证券交易所上市公司自律监管指 引第 7 号——交易与关联交易》及《公司章程》等的有关规定，结合公司实际情 况，特制定本制度。 第二条 本制度所称远期结汇业务是指为满足正常经营或业务需要，与境内 外具有相关业务经营资质的银行等金融机构开展的用于规避和防范汇率或利率 风险的远期结汇业务。 第三条 本制度适用于公司及其下属的全资子公司、控股子公司（以下合称 "子公司"）开展的远期结汇业务。子公司进行远期结汇业务视同公司进行远期 结汇业务，适用本制度。 第五条 公司的远期结汇须以正常的生产经营为基础，与公司实际业务相匹 配，以规避和防范汇率或利率风险为主要目的，不得进行以投机为目的的外汇交 易。 第六条 公司开展远期结汇业务只允 ...

Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board and senior management assure the report's accuracy; the company plans no semi-annual cash dividends or bonus shares, with future plans subject to uncertainty - The company's board of directors and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility[3](index=3&type=chunk) - Company head Yao Ya, chief accountant Cheng Zhongfa, and head of accounting department Liang Lu declare the financial report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) The report's table of contents outlines eight main chapters, from company profile to financial reports, including reference documents - The report comprises eight main chapters, ranging from company profile to financial reports[7](index=7&type=chunk) - Reference documents include signed and sealed financial statements and publicly disclosed documents on Juchao Information Network[9](index=9&type=chunk)[10](index=10&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms, company entities, and time concepts used throughout the report, including 'Company' and its subsidiaries - 'Company' or 'Taihe Technology' refers to Shandong Taihe Technology Co., Ltd[13](index=13&type=chunk) - Lists several wholly-owned subsidiaries including Taihe Import & Export, Sainuosi, and Taihe Intelligent[13](index=13&type=chunk) - The reporting period is from January 1, 2025, to June 30, 2025[13](index=13&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Shandong Taihe Technology Co., Ltd. (stock code: 300801) is listed on the Shenzhen Stock Exchange, with Yao Ya as legal representative - The company's stock abbreviation is 'Taihe Technology,' stock code '300801,' listed on the Shenzhen Stock Exchange[15](index=15&type=chunk) - The company's legal representative is Yao Ya[15](index=15&type=chunk) [Contact Persons and Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Yao Ya and Shi Hui serve as Board Secretary and Securities Affairs Representative, with contact details provided for the company's Zaozhuang office - The Board Secretary is Yao Ya, and the Securities Affairs Representative is Shi Hui[16](index=16&type=chunk) - The company's contact number is 0632-5201266, and email is thzq@thwater.com[16](index=16&type=chunk) [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) No changes occurred in the company's registered address, office address, website, or email during the reporting period, but the legal representative changed to Yao Ya - The company's registered address, office address, website, and email remained unchanged during the reporting period[17](index=17&type=chunk) - The company's legal representative changed from Mr. Cheng Zhongfa to General Manager Ms. Yao Ya, with industrial and commercial registration completed[21](index=21&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, revenue grew **27.68%** to **1.392 billion yuan**, net profit attributable to shareholders increased **3.90%** to **56.37 million yuan**, while non-recurring net profit and operating cash flow decreased Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,391,596,947.69 | 1,089,945,945.31 | 27.68% | | Net Profit Attributable to Listed Company Shareholders | 56,368,198.99 | 54,251,419.58 | 3.90% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | 39,313,708.61 | 44,399,702.30 | -11.46% | | Net Cash Flow from Operating Activities | 86,498,822.78 | 147,157,767.80 | -41.22% | | Basic Earnings Per Share (CNY/share) | 0.2618 | 0.2500 | 4.72% | | Diluted Earnings Per Share (CNY/share) | 0.2618 | 0.2500 | 4.72% | | Weighted Average Return on Net Assets | 2.30% | 2.29% | 0.01% | | **End of Current Reporting Period** | **End of Prior Year** | **Change from Prior Year-End (%)** | | | Total Assets | 3,212,491,522.02 | 3,329,341,753.08 | -3.51% | | Net Assets Attributable to Listed Company Shareholders | 2,477,270,806.82 | 2,421,576,301.95 | 2.30% | [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period - The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[23](index=23&type=chunk)[24](index=24&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%A2%9D) The company's total non-recurring gains and losses for the reporting period amounted to **17.05 million yuan**, primarily from government subsidies and financial asset fair value changes Non-Recurring Gains and Losses for H1 2025 | Item | Amount (CNY) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -1,987,355.08 | | Government grants recognized in current profit or loss | 14,279,318.25 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 3,452,965.89 | | Capital occupation fees received from non-financial enterprises recognized in current profit or loss | 5,834,801.98 | | Gains or losses from debt restructuring | 48,000.00 | | Other non-operating income and expenses apart from the above | -1,181,614.33 | | Less: Income tax impact | 3,391,626.33 | | **Total** | **17,054,490.38** | - The company has no other gain or loss items that meet the definition of non-recurring gains and losses[26](index=26&type=chunk) Management Discussion and Analysis [Company's Main Business Activities During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company, a leading water treatment chemical producer, achieved significant revenue and sales growth in H1 2025 through optimized strategies and R&D, advancing in new material fields - In H1 2025, operating revenue was **1.392 billion yuan**, a **27.68%** year-on-year increase; total sales volume reached **654,300 tons**, up **74.45%** year-on-year[38](index=38&type=chunk) - Net profit attributable to parent company shareholders was **56.37 million yuan**, a **3.90%** year-on-year increase[38](index=38&type=chunk) - The company is conducting hundreds of R&D projects in over ten fields, including new energy battery materials, electronic chemicals, engineering materials, and human-computer interaction, to develop new technologies and products[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Industry Overview](index=9&type=section&id=1%E3%80%81%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The company operates in the 'C2662 Specialized Chemical Product Manufacturing' sector, a stable and essential industry for water treatment chemicals without significant cyclicality - The company operates in the 'C2662 Specialized Chemical Product Manufacturing' sector, which is in a steady development phase[29](index=29&type=chunk) - Water treatment chemical products are necessities and consumables, exhibiting no significant cyclicality[30](index=30&type=chunk) [Company's Main Business, Products, and Their Applications](index=9&type=section&id=2%E3%80%81%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%E3%80%81%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E5%85%B6%E7%94%A8%E9%80%94) The company primarily produces water treatment chemicals such as scale inhibitors, corrosion inhibitors, and biocides, widely used across various industrial sectors - The company's main products include scale inhibitors, corrosion inhibitors, biocides, chelating agents, dispersants, reverse osmosis chemicals, and detergent builders, along with their co-products[31](index=31&type=chunk) - Products are widely applied in power generation, metallurgy, chemical, oil exploration, papermaking, daily chemical, textile printing and dyeing, and semiconductor industries[31](index=31&type=chunk) [Company's Business Model](index=9&type=section&id=3%E3%80%81%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company focuses on water treatment chemical production, selling exclusively to service providers and traders, not directly to end-users, to optimize resources for technology and efficiency - The company sells water treatment single-agent and blended products exclusively to water treatment service providers and traders, not directly to end-users[32](index=32&type=chunk) - This model allows the company to concentrate resources on improving product technology, quality, and production capacity, achieving economies of scale[32](index=32&type=chunk) [Company's Market Position](index=9&type=section&id=4%E3%80%81%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E7%9A%84%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D) The company is a global leader in water treatment chemical production, with **56.72%** of its water treatment chemical revenue from international sales - The company is one of the largest water treatment chemical producers globally in terms of production scale and product variety[33](index=33&type=chunk) - During the reporting period, domestic and international sales of water treatment chemicals accounted for **43.28%** and **56.72%** of total water treatment chemical revenue, respectively[33](index=33&type=chunk) [Key Performance Drivers](index=9&type=section&id=5%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E7%9A%84%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company's performance is driven by continuous business expansion, sustained R&D investment, a comprehensive product line, and economies of scale, supported by high-level innovation platforms - Continuous business expansion capability is a driving force for sustained performance growth, with the company actively exploring new application areas for its products[34](index=34&type=chunk) - Sustained R&D investment continuously strengthens the company's technological capabilities, possessing multiple high-level innovation platforms such as a national enterprise technology center and a national postdoctoral research workstation[35](index=35&type=chunk) - A comprehensive product line and economies of scale ensure the company's rapid growth, with water treatment chemical production capacity of **747,200 tons/year** and raw material capacity of **330,000 tons/year** in H1 2025[37](index=37&type=chunk) [Operating Performance During the Reporting Period](index=10&type=section&id=6%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) In H1 2025, the company achieved **1.392 billion yuan** in revenue, a **27.68%** increase, with total sales volume up **74.45%**, driven by core business focus, R&D in new materials, and enhanced production efficiency - In H1 2025, operating revenue was **1.392 billion yuan**, a **27.68%** year-on-year increase; total sales volume reached **654,300 tons**, up **74.45%** year-on-year[38](index=38&type=chunk) - Water treatment chemical sales volume was **178,200 tons**, up **19.94%** year-on-year; chlor-alkali sales volume was **476,000 tons**, up **110.23%** year-on-year[38](index=38&type=chunk) - The company is conducting hundreds of R&D projects in over ten fields, including new energy battery materials, electronic chemicals, engineering materials, and human-computer interaction, to develop new technologies and products[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Analysis of Core Competencies](index=15&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include strong R&D, digitalized production, cost advantages from R&D-production synergy, precise market positioning, and robust safety, environmental, and quality control - The company possesses multiple high-level innovation platforms, including a national enterprise technology center and a national postdoctoral research workstation, and has received numerous national and provincial honors[50](index=50&type=chunk)[51](index=51&type=chunk) - As of June 30, 2025, the company has obtained **115** authorized invention patents and **74** utility model patents, and has led or participated in the revision of **23** national standards and **35** industry standards[53](index=53&type=chunk) - The company adheres to the principle of 'separating producers from service providers,' pledging 'never to be an end-user and not to compete with customers,' focusing on fine chemical production[62](index=62&type=chunk) [Strong R&D Capabilities for Efficient Response to Evolving Customer Needs](index=15&type=section&id=1%E3%80%81%E4%BB%A5%E9%9B%84%E5%8E%9A%E7%A0%94%E5%8F%91%E5%AE%9E%E5%8A%9B%EF%BC%8C%E9%AB%98%E6%95%88%E5%93%8D%E5%BA%94%E5%AE%A2%E6%88%B7%E5%8D%87%E7%BA%A7%E9%9C%80%E6%B1%82) The company leverages national-level innovation platforms, significant R&D investment, and **115** invention patents to efficiently meet evolving customer demands with advanced analytical equipment - The company possesses multiple high-level innovation platforms, including a national enterprise technology center and a national postdoctoral research workstation[50](index=50&type=chunk)[53](index=53&type=chunk) - As of June 30, 2025, the company has obtained **115** authorized invention patents, **74** utility model patents, and **5** registered software copyrights[53](index=53&type=chunk) - The company has acquired a batch of advanced experimental, analytical, and testing instruments, including superconducting nuclear magnetic resonance spectrometers and mass spectrometers[52](index=52&type=chunk) [Digitalized Production Integration, Solidifying the Global Water Treatment Supply Chain Foundation](index=21&type=section&id=2%E3%80%81%E6%95%B0%E6%99%BA%E5%8C%96%E7%94%9F%E4%BA%A7%E8%9E%8D%E5%90%88%EF%BC%8C%E7%AD%91%E7%89%A2%E5%85%A8%E7%90%83%E6%B0%B4%E5%A4%84%E7%90%86%E4%BE%9B%E5%BA%94%E9%93%BE%E5%9F%BA%E7%9F%B3) The company integrates continuous, automated, and intelligent production with information technology to build an efficient operational system, achieving **747,200 tons/year** water treatment chemical capacity and **330,000 tons/year** raw material capacity in H1 2025 - The company builds an intelligent, efficient, and stable production and operation system, achieving full-process automation and remote control of production[59](index=59&type=chunk) - In H1 2025, the company's water treatment chemical production capacity was **747,200 tons/year**, and total raw material production capacity was **330,000 tons/year**[60](index=60&type=chunk) [R&D-Production Synergy Builds Cost Advantage](index=22&type=section&id=3%E3%80%81%E7%A0%94%E4%BA%A7%E5%8D%8F%E5%90%8C%E7%AD%91%E5%B0%B1%E6%88%90%E6%9C%AC%E4%BC%98%E5%8A%BF) The company achieves significant cost advantages through R&D-production synergy, enabling low investment, high capacity, and efficient, lean operations, further enhanced by a vertically integrated supply chain - Through R&D-production synergy, the company achieves low project investment, large production capacity, stable product quality, and minimal workshop staffing, building a competitive cost control system[61](index=61&type=chunk) - Possesses a complete vertical industrial chain layout, from chlorine gas to organophosphorus products, and co-produces acetyl chloride, enhancing resource utilization and reducing costs[61](index=61&type=chunk) [Precise Industry Positioning](index=22&type=section&id=4%E3%80%81%E7%B2%BE%E5%87%86%E7%9A%84%E8%A1%8C%E4%B8%9A%E5%AE%9A%E4%BD%8D) The company positions itself as a specialized fine chemical producer, focusing on R&D and manufacturing, adhering to a 'producer-service provider separation' model, and has become a national manufacturing single champion enterprise - The company is positioned as a professional fine chemical producer, focusing on full-process R&D, design, and manufacturing[62](index=62&type=chunk) - The company adheres to the principle of 'separating producers from service providers,' pledging 'never to be an end-user and not to compete with customers'[62](index=62&type=chunk) - The company has become a national manufacturing single champion enterprise[62](index=62&type=chunk) [Safety and Environmental Advantages](index=22&type=section&id=5%E3%80%81%E5%AE%89%E5%85%A8%E7%8E%AF%E4%BF%9D%E4%BC%98%E5%8A%BF) The company has established robust environmental, health, and safety management systems, achieving intrinsic safety through process hazard analysis and automation, recognized as a green factory - The company has established environmental, health, and safety management systems and process safety management systems to effectively control production and operational risks[63](index=63&type=chunk) - Intrinsic safety design is achieved through process hazard analysis, and unmanned operations are realized through automatic control[63](index=63&type=chunk) - The company was selected as a typical case for green development among national private enterprises in 2024 and awarded titles such as 'Shandong Province Green Factory'[63](index=63&type=chunk) [Quality Control Advantages](index=22&type=section&id=6%E3%80%81%E8%B4%A8%E9%87%8F%E6%8E%A7%E5%88%B6%E4%BC%98%E5%8A%BF) The company maintains a comprehensive quality management system, ISO 9001:2015 certified, covering procurement to sales, ensuring product quality through strict controls and customer feedback - The company has established a complete quality management and control system and passed GB/T 19001-2016/ISO 9001:2015 standard system certification[65](index=65&type=chunk) - The product Hydroxyethylidene Diphosphonic Acid HEDP (50% liquid) was awarded the 'Good Product Shandong' title and received honors such as 'Shandong Province Quality Benchmark'[65](index=65&type=chunk)[66](index=66&type=chunk) [Analysis of Main Business](index=23&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's main business revenue increased by **27.68%**, while operating costs rose **32.42%** due to higher sales volume; management expenses increased, and financial expenses increased due to reduced exchange gains Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,391,596,947.69 | 1,089,945,945.31 | 27.68% | | | Operating Cost | 1,238,201,735.45 | 935,081,043.20 | 32.42% | Primarily due to increased sales volume | | Administrative Expenses | 49,234,486.78 | 37,160,475.50 | 32.49% | Primarily due to accrual of employee stock ownership plan related expenses in the current period | | Financial Expenses | -1,388,464.53 | -5,434,042.96 | 74.45% | Primarily due to decreased exchange gains in the current period | | Net Cash Flow from Operating Activities | 86,498,822.78 | 147,157,767.80 | -41.22% | Primarily due to increased payments | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Water Treatment Chemicals and Co-products | 1,062,427,560.02 | 939,465,073.45 | 11.57% | 11.97% | 18.76% | -5.06% | | Chlor-Alkali Products | 321,433,948.05 | 294,346,667.83 | 8.43% | 131.26% | 105.10% | 11.68% | [Analysis of Non-Core Business](index=23&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In the reporting period, non-core business investment income was **2.41 million yuan** from wealth management, fair value change gains were **1.04 million yuan**, and net non-operating expenses were **1.22 million yuan** due to increased compensation payments Non-Core Business Analysis for H1 2025 | Item | Amount (CNY) | Proportion of Total Profit (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Investment Income | 2,409,060.57 | 3.62% | Primarily due to recovery of wealth management income in the current period | | Gains or Losses from Fair Value Changes | 1,043,905.32 | 1.57% | Primarily due to fair value changes in wealth management products | | Non-Operating Income | 710,095.85 | 1.07% | Primarily due to gains from disposal of scrapped fixed assets in the current period | | Non-Operating Expenses | 1,926,126.78 | 2.89% | Primarily due to increased compensation payments in the current period | [Analysis of Assets and Liabilities](index=24&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) At the end of the reporting period, total assets decreased by **3.51%** to **3.212 billion yuan**, with changes in asset composition, while fair value financial assets totaled **364.06 million yuan** Significant Changes in Asset Composition for H1 2025 | Item | Amount at Current Period-End (CNY) | Proportion of Total Assets (%) | Amount at Prior Year-End (CNY) | Proportion of Total Assets (%) | Change in Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 346,360,719.04 | 10.78% | 459,624,985.97 | 13.81% | -3.03% | | Accounts Receivable | 348,826,482.16 | 10.86% | 292,525,091.77 | 8.79% | 2.07% | | Inventories | 192,455,162.94 | 5.99% | 215,671,556.88 | 6.48% | -0.49% | | Fixed Assets | 520,883,909.72 | 16.21% | 509,643,198.45 | 15.31% | 0.90% | | Construction in Progress | 456,600,745.96 | 14.21% | 524,408,490.01 | 15.75% | -1.54% | - Financial assets measured at fair value totaled **364.06 million yuan** at period-end, primarily comprising trading financial assets and notes receivable financing[77](index=77&type=chunk) - Restricted monetary funds at period-end amounted to **67.15 million yuan**, mainly consisting of deposits[78](index=78&type=chunk) [Analysis of Investment Status](index=25&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, total investment increased by **7.12%** to **1.245 billion yuan**, with major non-equity investments in new material projects and water treatment chemical projects, alongside **430 million yuan** in wealth management and a **120 million yuan** entrusted loan - Investment during the reporting period amounted to **1.245 billion yuan**, a **7.12%** year-on-year increase[79](index=79&type=chunk) - The 10,000 tons/year lithium iron phosphate high-end cathode material project is in trial production, with a cumulative investment of **66.61 million yuan**[81](index=81&type=chunk) - The 20,000 tons/year VC (vinylene carbonate) project is in trial production, with a cumulative investment of **115.19 million yuan**[82](index=82&type=chunk) - Entrusted wealth management transactions amounted to **430 million yuan**, with an outstanding balance of **294.6 million yuan**, primarily bank wealth management products[87](index=87&type=chunk) - The company provided a **120 million yuan** entrusted loan to Shandong Zhonghui Urban Development Investment Group Co., Ltd. at an interest rate of **5.00%**[89](index=89&type=chunk) [Significant Asset and Equity Sales](index=28&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell any significant assets during the reporting period[90](index=90&type=chunk) - The company did not sell any significant equity during the reporting period[91](index=91&type=chunk) [Analysis of Major Holding and Participating Companies](index=28&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's major subsidiaries include Shandong Taihe Chemical Import & Export Co., Ltd., Beijing Fenghuitaihe Investment Management Co., Ltd., and Hydrogen Power New Materials (Shandong) Co., Ltd., with the latter generating **360 million yuan** in revenue and **17.79 million yuan** in net profit Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (million CNY) | Total Assets (million CNY) | Net Assets (million CNY) | Operating Revenue (million CNY) | Operating Profit (million CNY) | Net Profit (million CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Taihe Chemical Import & Export Co., Ltd. | Subsidiary | Export trade of water treatment chemicals | 5.00 | 314.54 | 46.36 | 544.16 | 5.70 | 3.41 | | Beijing Fenghuitaihe Investment Management Co., Ltd. | Subsidiary | Investment management, project investment, investment consulting | 100.00 | 120.48 | 120.32 | 0.00 | 0.36 | 0.27 | | Hydrogen Power New Materials (Shandong) Co., Ltd. | Subsidiary | Production and sales of chlor-alkali products | 100.00 | 527.59 | 106.80 | 360.04 | 22.25 | 17.79 | - The company neither acquired nor disposed of any subsidiaries during the reporting period[92](index=92&type=chunk) [Information on Structured Entities Controlled by the Company](index=28&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[93](index=93&type=chunk) [Risks Faced by the Company and Countermeasures](index=28&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 raw material price fluctuations, intensified competition, exchange rate volatility, international trade changes, safety production, project implementation, and geopolitical conflicts, addressed through strategic partnerships and risk hedging - Raw material price fluctuation risk: Addressed by analyzing trends, strengthening strategic cooperation, and strategic procurement[93](index=93&type=chunk) - Increased industry competition risk: Addressed by expanding into new industries and areas, improving product quality and service levels, and increasing international market development[94](index=94&type=chunk)[95](index=95&type=chunk) - Exchange rate fluctuation risk: Addressed by conducting forward foreign exchange settlement, improving foreign exchange fund utilization efficiency, and reducing financial expenses[96](index=96&type=chunk) - Risks in ongoing and planned project implementation: Including capacity absorption, project delays or cancellations, and underperforming results, the company will strengthen project management and accelerate construction progress[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Risk of demand changes due to external conflicts: Closely monitoring the international political and economic environment, adjusting operations, and increasing domestic business expansion[104](index=104&type=chunk)[105](index=105&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=30&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) During the reporting period, the company participated in the 2024 Annual Performance Briefing and Shandong Listed Companies Investor Online Collective Reception Day activities in April and May 2025 - On April 25, 2025, the company participated in the 2024 Annual Performance Briefing[106](index=106&type=chunk) - On May 15, 2025, the company participated in the Shandong Listed Companies Investor Online Collective Reception Day activity[106](index=106&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=30&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has established a market value management system, revised on August 25, 2025, but has not disclosed a valuation enhancement plan - The company has formulated a market value management system, which was revised on August 25, 2025[107](index=107&type=chunk) - The company has not disclosed a valuation enhancement plan[107](index=107&type=chunk) [Implementation of 'Quality and Return Dual Enhancement' Action Plan](index=30&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding the 'Quality and Return Dual Enhancement' action plan - The company has not disclosed an announcement regarding the 'Quality and Return Dual Enhancement' action plan[108](index=108&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=30&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, several changes occurred in the company's board, supervisory board, and senior management, including resignations of Vice General Managers and CFO, and election of an employee representative director - Wan Zhentao resigned as Vice General Manager on January 7, 2025[110](index=110&type=chunk) - Jian Qian resigned as Director and Vice General Manager on January 22, 2025[110](index=110&type=chunk) - Wang Donghai was elected as an employee representative director on January 23, 2025[110](index=110&type=chunk) - Yan Xiu resigned as Chief Financial Officer on August 4, 2025[110](index=110&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital for the Reporting Period](index=31&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans no semi-annual cash dividends, bonus shares, or capital reserve conversions to share capital - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[111](index=111&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=31&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company did not implement an equity incentive plan, but its 2024 employee stock ownership plan, involving **7.25 million shares** (3.32% of total capital), saw **485,000 shares** recovered due to employee departures - The company did not implement any equity incentive plans during the reporting period[112](index=112&type=chunk) - The 2024 employee stock ownership plan involves **365** employees holding **7,251,900 shares**, accounting for **3.32%** of the company's total share capital[113](index=113&type=chunk) - During the reporting period, **15** holders resigned, and **485,000 shares** were recovered by the company's management committee, currently awaiting disposal[115](index=115&type=chunk) - The employee stock ownership plan is accounted for in accordance with 'Accounting Standard for Business Enterprises No. 11 – Share-based Payment'[115](index=115&type=chunk) [Environmental Information Disclosure](index=33&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its key subsidiaries are listed as legally required environmental information disclosure enterprises, with reports available on the disclosure system - The company and its subsidiaries, Shandong Taihe Technology Co., Ltd. and Hydrogen Power New Materials (Shandong) Co., Ltd., are included in the list of enterprises required to disclose environmental information by law[116](index=116&type=chunk) - Environmental information disclosure reports can be accessed through the enterprise environmental information disclosure system[116](index=116&type=chunk) [Social Responsibility Performance](index=33&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company prioritizes ESG governance and social responsibility, evidenced by SA8000:2014 certification and concrete actions to protect stakeholder rights and improve environmental performance - The company emphasizes ESG governance and has obtained SA8000:2014 social responsibility management system certification[117](index=117&type=chunk) - Protecting shareholder rights: Enhancing corporate governance and strictly adhering to profit distribution policies[117](index=117&type=chunk) - Protecting employee rights: Ensuring equal recruitment, providing 'five social insurances and one housing fund,' paid leave, salary incentives, and health examinations[118](index=118&type=chunk) - Protecting the social environment: As an advanced unit for clean production and a green factory in Shandong Province, the company improves pollution treatment facilities, promotes energy conservation and emission reduction, explores low-carbon development, and carries out afforestation activities[120](index=120&type=chunk)[121](index=121&type=chunk) Significant Matters [Fulfillment of Commitments](index=35&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, all commitments made by the company's actual controller, shareholders, related parties, and the company itself were fulfilled on time - Wan Zhentao's commitments regarding share reduction, avoiding horizontal competition, regulating related-party transactions, and compensating for diluted returns have been fulfilled[123](index=123&type=chunk)[124](index=124&type=chunk) - Jian Qian's commitments regarding horizontal competition, related-party transactions, fund occupation, and compensating for diluted returns have been fulfilled[124](index=124&type=chunk) - All commitments have been fulfilled on time[124](index=124&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=36&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period - The company reported no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period[125](index=125&type=chunk) [Irregular External Guarantees](index=36&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[126](index=126&type=chunk) [Appointment and Dismissal of Accounting Firms](index=36&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[128](index=128&type=chunk) [Explanation of 'Non-Standard Audit Report' for the Current Reporting Period](index=37&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not have a non-standard audit report for the current reporting period - The company did not have a non-standard audit report for the reporting period[129](index=129&type=chunk) [Explanation of 'Non-Standard Audit Report' for the Previous Year](index=37&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not have a non-standard audit report for the previous year - The company did not have a non-standard audit report for the reporting period[129](index=129&type=chunk) [Bankruptcy and Reorganization Matters](index=37&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) During the reporting period, the company did not experience any bankruptcy or reorganization matters - The company did not experience any bankruptcy or reorganization matters during the reporting period[129](index=129&type=chunk) [Litigation Matters](index=37&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period; other lawsuits totaled **32.25 million yuan**, with **11.06 million yuan** settled and **21.19 million yuan** pending, with no major impact - The company had no significant litigation or arbitration matters during the current reporting period[130](index=130&type=chunk) - Other lawsuits totaled **32.25 million yuan**, with **11.06 million yuan** settled and **21.19 million yuan** pending[131](index=131&type=chunk) - All settled amounts are due from defendants to Taihe Technology, currently in progress, with no significant impact on the company[131](index=131&type=chunk) [Penalties and Rectification](index=37&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) During the reporting period, the company had no penalties or rectification situations - The company reported no penalties or rectification situations during the reporting period[132](index=132&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=37&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company, its controlling shareholder, and actual controller had no integrity issues regarding unfulfilled court judgments or large overdue debts during the reporting period - The company reported no integrity issues concerning its controlling shareholder and actual controller during the reporting period[133](index=133&type=chunk) [Significant Related-Party Transactions](index=37&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company did not engage in any significant related-party transactions, including those related to daily operations, asset/equity, or debt - The company reported no related-party transactions related to daily operations during the reporting period[134](index=134&type=chunk) - The company reported no related-party transactions involving asset or equity acquisitions or disposals during the reporting period[135](index=135&type=chunk) - The company reported no related-party creditor-debtor relationships during the reporting period[137](index=137&type=chunk) [Significant Contracts and Their Performance](index=38&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company had no trust or contracting arrangements, but its subsidiary leased assets for chlor-alkali production, generating **360 million yuan** in revenue and **17.79 million yuan** in net profit - The company reported no trust or contracting arrangements during the reporting period[141](index=141&type=chunk)[142](index=142&type=chunk) - The company leased assets from Zaozhuang Zhongke Chemical Co., Ltd. for chlor-alkali product production, implemented by Hydrogen Power New Materials[143](index=143&type=chunk) - From January to June 2025, this lease generated **360.04 million yuan** in operating revenue and **17.79 million yuan** in net profit for the company[143](index=143&type=chunk)[144](index=144&type=chunk) - The company reported no significant guarantee situations during the reporting period[145](index=145&type=chunk) [Explanation of Other Significant Matters](index=40&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, Vice General Manager and Director/Vice General Manager resigned, the company implemented its 2024 annual equity distribution plan, revised its Articles of Association, changed its legal representative, and experienced abnormal stock trading - Vice General Manager Wan Zhentao resigned on January 7, 2025[148](index=148&type=chunk) - Non-independent Director and Vice General Manager Jian Qian resigned on January 22, 2025[148](index=148&type=chunk) - The company implemented its 2024 annual equity distribution plan, distributing a cash dividend of **1.00 yuan** (tax inclusive) per **10 shares**[149](index=149&type=chunk) - The company revised its 'Articles of Association' and changed its legal representative to Yao Ya, while also revising 'Rules of Procedure for Shareholder Meetings' and other documents[150](index=150&type=chunk) - The company's stock trading experienced abnormal fluctuations on June 23 and 25, 2025[151](index=151&type=chunk) [Significant Matters of Company Subsidiaries](index=40&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries reported no significant matters during the reporting period[152](index=152&type=chunk) Share Changes and Shareholder Information [Share Change Information](index=41&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at **218.43 million shares**, with limited-sale shares increasing by **388,300 shares** due to executive lock-up share changes Share Change Information | Share Class | Quantity Before Change (shares) | Proportion (%) | Increase/Decrease in Current Change (+, -) (shares) | Quantity After Change (shares) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 81,550,575 | 37.33% | +388,300 | 81,938,875 | 37.51% | | II. Unrestricted Shares | 136,879,425 | 62.67% | -388,300 | 136,491,125 | 62.49% | | III. Total Shares | 218,430,000 | 100.00% | 0 | 218,430,000 | 100.00% | - Changes in restricted shares primarily involved executive lock-up shares, with increases due to the resignations of Wan Zhentao and Jian Qian[157](index=157&type=chunk) [Securities Issuance and Listing Information](index=42&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) During the reporting period, the company had no securities issuance or listing activities - The company reported no securities issuance or listing activities during the reporting period[158](index=158&type=chunk) [Number of Shareholders and Shareholding Information](index=42&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At the end of the reporting period, the company had **38,478** common shareholders; Cheng Zhongfa held **47.63%** as controlling shareholder, with related parties among the top ten - The total number of common shareholders at the end of the reporting period was **38,478**[159](index=159&type=chunk) Shareholding Information of Shareholders Holding 5% or More, or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cheng Zhongfa | Domestic Natural Person | 47.63% | 104,029,600 | 78,022,200 | 26,007,400 | | Zaozhuang Hesheng Investment Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 5.78% | 12,636,000 | 0 | 12,636,000 | | Shandong Taihe Technology Co., Ltd. – 2024 Employee Stock Ownership Plan | Other | 3.32% | 7,251,900 | 0 | 7,251,900 | | Li Jingjuan | Domestic Natural Person | 1.43% | 3,119,600 | 0 | 3,119,600 | | Cheng Xia | Domestic Natural Person | 1.25% | 2,721,600 | 0 | 2,721,600 | | Cheng Cheng | Domestic Natural Person | 1.25% | 2,721,600 | 0 | 2,721,600 | | Yao Ya | Domestic Natural Person | 1.11% | 2,426,200 | 1,819,650 | 606,550 | | Wan Zhentao | Domestic Natural Person | 0.54% | 1,175,000 | 1,175,000 | 0 | | Liu Quanhua | Domestic Natural Person | 0.18% | 400,000 | 300,000 | 100,000 | | Jian Qian | Domestic Natural Person | 0.17% | 378,200 | 378,200 | 0 | - Li Jingjuan, Cheng Xia, Liu Quanhua, and Cheng Cheng are close family members of the actual controller Cheng Zhongfa; Zaozhuang Hesheng Investment Management Center (Limited Partnership) is an enterprise controlled by Cheng Zhongfa[160](index=160&type=chunk) - The company's dedicated share repurchase account holds **3,125,900 shares**, which are not included in the top 10 shareholders list[160](index=160&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=44&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The company's directors, supervisors, and senior management in the reporting period had no changes in shareholdings[163](index=163&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=44&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[164](index=164&type=chunk) - The company's actual controller did not change during the reporting period[164](index=164&type=chunk) [Preferred Share Information](index=45&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[165](index=165&type=chunk) Bond-Related Information The company had no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[167](index=167&type=chunk) Financial Report [Audit Report](index=47&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[169](index=169&type=chunk) [Financial Statements](index=47&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's H1 2025 consolidated and parent company financial statements, offering a comprehensive overview of financial position, operating results, and cash flows - Provides consolidated balance sheets, parent company balance sheets, consolidated income statements, parent company income statements, consolidated cash flow statements, parent company cash flow statements, consolidated statements of changes in owners' equity, and parent company statements of changes in owners' equity[170](index=170&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[184](index=184&type=chunk)[187](index=187&type=chunk)[189](index=189&type=chunk)[195](index=195&type=chunk) [Company Overview](index=63&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Shandong Taihe Technology Co., Ltd., established on March 14, 2006, is a Shenzhen Stock Exchange-listed chemical company based in Zaozhuang, primarily engaged in water treatment chemicals and import/export - The company was established on March 14, 2006, with its registered office in Zaozhuang City, Shandong Province[201](index=201&type=chunk) - The company's shares are listed on the Shenzhen Stock Exchange, operating in the chemical industry[201](index=201&type=chunk)[202](index=202&type=chunk) - Primarily engaged in the production, sales, and technical services of water treatment agents and auxiliaries, as well as import and export business[202](index=202&type=chunk) - These financial statements were approved for issuance by the Board of Directors on August 25, 2025[202](index=202&type=chunk) [Basis of Financial Statement Preparation](index=64&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The consolidated financial statements are prepared in accordance with 'Enterprise Accounting Standards' and relevant regulations, including CSRC rules, on a going concern basis - The financial statements are prepared in accordance with 'Enterprise Accounting Standards' and relevant regulations of the China Securities Regulatory Commission[203](index=203&type=chunk) - The company's ability to continue as a going concern for at least 12 months from the end of the reporting period has no significant doubts, and the statements are prepared on a going concern basis[204](index=204&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=64&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies and estimates, covering compliance, accounting period, functional currency, materiality, business combinations, consolidation, cash, foreign currency, financial instruments, receivables, inventories, fixed assets, and revenue recognition - The company adheres to Enterprise Accounting Standards, accurately and completely reflecting its financial position[206](index=206&type=chunk) - The accounting year is from January 1 to December 31 of the Gregorian calendar, and the reporting period is from January 1, 2025, to June 30, 2025[207](index=207&type=chunk) Materiality Standards | Item | Materiality Standard (million CNY) | | :--- | :--- | | Significant prepayments with an aging over 1 year at period-end | 3.00 | | Significant accounts payable with an aging over 1 year at period-end | 5.00 | | Significant contract liabilities with an aging over 1 year at period-end | 1.00 | | Significant construction in progress projects | 20.00 | | Significant cash related to investment activities | 70.00 | - Financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[219](index=219&type=chunk) - Revenue recognition principle: Revenue is recognized when performance obligations are satisfied, and the customer obtains control of the related goods or services[263](index=263&type=chunk) [Taxation](index=79&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, urban maintenance tax, and corporate income tax; as a high-tech enterprise, corporate income tax is reduced to **15%**, with some subsidiaries at **5%**, and export products enjoy 'exemption and refund' policies Major Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods, taxable services income | 13%, 6% | | Urban Maintenance and Construction Tax | Amount of turnover tax actually paid | 7% | | Corporate Income Tax | Taxable income | 25%, 15%, 5% | | Education Surcharge | Amount of turnover tax actually paid | 3% | | Local Education Surcharge | Amount of turnover tax actually paid | 2% | | Property Tax | 70% of original property value as tax base | 1.2% | | Land Use Tax | Land use area | 2.4, 4.8, 9.6 CNY/square meter | - As a high-tech enterprise, the company's corporate income tax is levied at a reduced rate of **15%**[278](index=278&type=chunk) - Some subsidiaries, as small low-profit enterprises, have an effective corporate income tax rate of **5%**[278](index=278&type=chunk) - Export products enjoy 'exemption and refund' tax preferential policies, with a refund rate of **13%**[278](index=278&type=chunk) [Notes to Consolidated Financial Statement Items](index=80&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on consolidated financial statement items, including composition, balances, and changes for various assets, liabilities, equity, and income statement accounts - Monetary funds at period-end totaled **346 million yuan**, with other monetary funds primarily consisting of bank acceptance deposits[280](index=280&type=chunk) - Trading financial assets at period-end totaled **297 million yuan**, mainly comprising bank wealth management products[282](index=282&type=chunk) - Accounts receivable at period-end totaled **349 million yuan**, with **93.44%** being within one year of age[293](index=293&type=chunk)[296](index=296&type=chunk) - Fixed assets had a book value of **521 million yuan** at period-end, with an increase of **71.05 million yuan** during the period, primarily from transfers from construction in progress[400](index=400&type=chunk)[401](index=401&type=chunk) - Construction in progress had a book value of **301 million yuan** at period-end, with major projects including water treatment chemical series products, vinylene carbonate, and lithium iron phosphate cathode materials[408](index=408&type=chunk)[411](index=411&type=chunk) - Operating revenue for the current period was **1.392 billion yuan**, and operating cost was **1.238 billion yuan**[506](index=506&type=chunk) [R&D Expenses](index=125&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) During the reporting period, total R&D expenses were **33.30 million yuan**, all expensed, representing a **14.66%** year-on-year increase, with no capitalized R&D projects R&D Expense Details | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Direct Input | 5,860,679.98 | 3,189,278.72 | | Employee Compensation | 20,301,580.64 | 18,561,521.39 | | Depreciation | 5,709,673.83 | 4,944,077.22 | | Other | 1,430,493.03 | 2,350,063.81 | | **Total** | **33,302,427.48** | **29,044,941.14** | | Of which: Expensed R&D Expenditure | 33,302,427.48 | 29,044,941.14 | - The company has no R&D projects that meet capitalization criteria or significant externally acquired R&D projects[559](index=559&type=chunk)[561](index=561&type=chunk) [Changes in Consolidation Scope](index=126&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company did not experience any non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control - The company did not experience any non-same-control business combinations during the reporting period[562](index=562&type=chunk) - The company did not experience any same-control business combinations during the reporting period[567](index=567&type=chunk) - The company did not experience any reverse acquisitions during the reporting period[571](index=571&type=chunk) - The company did not experience any transactions or events resulting in the loss of control over subsidiaries during the reporting period[571](index=571&type=chunk) [Interests in Other Entities](index=129&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's interests in various wholly-owned subsidiaries, but does not include significant non-wholly-owned subsidiaries, joint ventures, associates, or unconsolidated structured entities - The company owns several wholly-owned subsidiaries, including Shandong Taihe Chemical Import & Export Co., Ltd., Shandong Sainuosi Fine Chemical Co., Ltd., and Taihe Intelligent (Shandong) Co., Ltd.[573](index=573&type=chunk) - The company has not disclosed financial information for significant non-wholly-owned subsidiaries, joint ventures, or associates[574](index=574&type=chunk)[578](index=578&type=chunk)[581](index=581&type=chunk) - The company is not involved in significant joint operations or structured entities not included in the consolidated financial statements[584](index=584&type=chunk)[585](index=585&type=chunk) [Government Grants](index=133&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) At the end of the reporting period, the company's deferred income from government grants was **855,200 yuan**, with **9.45 million yuan** recognized as other income during the period Liability Items Involving Government Grants | Accounting Account | Beginning Balance (CNY) | New Grants in Current Period (CNY) | Amount Recognized in Non-Operating Income in Current Period (CNY) | Amount Transferred to Other Income in Current Period (CNY) | Other Changes in Current Period (CNY) | Ending Balance (CNY) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,246,555.29 | | | 391,332.96 | | 855,222.33 | Asset-related | - Government grants recognized in current profit or loss for the period amounted to **9.45 million yuan**[588](index=588&type=chunk) [Risks Related to Financial Instruments](index=133&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces market (exchange rate), credit, and liquidity risks related to financial instruments, managed through monitoring, provisions, and ensuring fund availability, with no hedging activities - The company faces market risk (exchange rate risk), credit risk, and liquidity risk[588](index=588&type=chunk) - Exchange rate risk is primarily related to USD and EUR, and the company closely monitors exchange rate fluctuations[590](index=590&type=chunk)[591](index=591&type=chunk) - Credit risk primarily arises from monetary funds, notes receivable, accounts receivable, etc., and the company mitigates risk through credit limit management and bad debt provision accrual[592](index=592&type=chunk) - The criterion for a significant increase in credit risk is overdue days exceeding **30** days, and credit impairment is defined as overdue days exceeding **90** days[592](index=592&type=chunk)[593](index=593&type=chunk) - Some notes receivable financing has been derecognized through bill endorsement, amounting to **98.61 million yuan**[598](index=598&type=chunk)[601](index=601&type=chunk) [Disclosure of Fair Value](index=136&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) At the end of the reporting period, the company's total assets measured at fair value on a recurring basis amounted to **364.06 million yuan**, primarily comprising trading financial assets (Level 2) and notes receivable financing, other equity instrument investments (Level 3) Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 297,450,110.61 | | 297,450,110.61 | | (4) Wealth Management Products | 297,450,110.61 | | 297,450,110.61 | | (5) Notes Receivable Financing | | 10,260,069.80 | 10,260,069.80 | | (III) Other Equity Instrument Investments | | 56,350,694.61 | 56,350,694.61 | | **Total Assets Measured at Fair Value on a Recurring Basis** | **297,450,110.61** | **66,610,764.41** | **364,060,875.02** | - Trading financial assets are principal-protected floating-rate structured deposits[604](index=604&type=chunk) - Notes receivable financing is measured at fair value based on its face amount[605](index=605&type=chunk) - The carrying amounts of financial assets and liabilities not measured at fair value do not significantly differ from their fair values[608](index=608&type=chunk) [Related Parties and Related-Party Transactions](index=137&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's ultimate controlling party is Cheng Zhongfa, who directly and indirectly controls its shares; key management personnel compensation for the period was **1.78 million yuan**, with no significant related-party transactions involving sales, services, leases, guarantees, or fund transfers during the reporting period - The company's ultimate controlling party is Cheng Zhongfa, who directly holds **47.63%** of shares and indirectly controls **5.78%** through Zaozhuang Hesheng Investment Management Center (Limited Partnership)[609](index=609&type=chunk) - Other related parties include directors, senior management, and shareholders holding **5%** or more[611](index=611&type=chunk)[612](index=612&type=chunk) - During the reporting period, the company had no related-party transactions involving goods purchases/sales, provision/acceptance of services, entrusted management/contracting, entrusted management/outsourcing, leases, guarantees, fund borrowings/lendings, or asset transfer/debt restructuring[613](index=613&type=chunk)[614](index=614&type=chunk)[615](index=615&type=chunk)[616](index=616&type=chunk)[617](index=617&type=chunk)[619](index=619&type=chunk)[620](index=620&type=chunk)[621](index=621&type=chunk)[622](index=622&type=chunk) - Key management personnel compensation for the current period amount

Group 1 - The core point of the article is that Taihe Technology (300801.SZ) is currently in the pilot testing stage for its solid-state electrolyte materials, specifically lithium sulfide and sulfide solid-state electrolytes, and has not yet begun mass production [1] Group 2 - The company is actively engaging with investors through an interactive platform to provide updates on its product development [1] - The current status of the solid-state electrolyte materials indicates that the company is in the early stages of production, which may impact future supply capabilities [1]