众源新材(603527) - 2024 Q2 - 季度财报

Part I Section I Definitions Definitions of Common Terms This section provides definitions for common terms used in the report, including company names, major subsidiary names, relevant laws and regulations, and the reporting period, ensuring accurate understanding of the report content - "Company," "the Company," and "Zhongyuan New Materials" all refer to Anhui Zhongyuan New Materials Co., Ltd[7] - "Reporting Period" and "this period" refer to January 1, 2024, to June 30, 2024[7] - "Electrolytic copper" refers to cathode copper with a purity of over 99.9%, which is the main raw material for copper strip and foil[7] Section II Company Profile and Key Financial Indicators I. Company Information This section introduces the company's basic information, including its Chinese name, abbreviation, foreign name, legal representative, registered and office addresses, contact information, and information disclosure channels - The company's Chinese name is Anhui Zhongyuan New Materials Co., Ltd., abbreviated as Zhongyuan New Materials, with Feng Quanhu as its legal representative[8][9] - The company's registered and office addresses are both located at No. 48 Fengming North Road, Wuhu Economic and Technological Development Zone[11] - The company's designated information disclosure newspapers include "China Securities Journal," "Shanghai Securities News," "Securities Daily," and "Securities Times," with the semi-annual report published on www.sse.com.cn[12](index=12&type=chunk) V. Company Stock Profile This section briefly describes the company's stock type, stock abbreviation, stock code, and listing exchange information - The company's stock type is A-shares, with the stock abbreviation Zhongyuan New Materials, stock code 603527, listed and traded on the Shanghai Stock Exchange[13] VII. Company's Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 15.44% to 4.05 billion yuan, but net profit attributable to shareholders decreased by 1.44% to 65.15 million yuan, with non-recurring net profit down 11.11%. Net cash flow from operating activities saw a significant outflow, and total assets grew by 19.91% 2024 Semi-Annual Key Accounting Data | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :------------------ | :-------------------------------- | :---------------- | :-------------------------------- | | Operating Revenue | 4,048,840,931.08 | 3,507,337,810.39 | 15.44 | | Net Profit Attributable to Shareholders of Listed Company | 65,151,086.97 | 66,099,695.18 | -1.44 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 51,931,619.97 | 58,423,540.07 | -11.11 | | Net Cash Flow from Operating Activities | -346,729,164.82 | -160,172,593.86 | Not Applicable | | Total Assets (End of Current Reporting Period) | 3,669,666,289.99 | 3,060,307,757.94 | 19.91 | | Net Assets Attributable to Shareholders of Listed Company (End of Current Reporting Period) | 1,948,168,084.06 | 1,930,386,218.99 | 0.92 | 2024 Semi-Annual Key Financial Indicators | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :----------------------- | :-------------------------------- | :---------------- | :-------------------------------- | | Basic Earnings Per Share (yuan/share) | 0.21 | 0.27 | -22.22 | | Diluted Earnings Per Share (yuan/share) | 0.21 | 0.27 | -22.22 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (yuan/share) | 0.16 | 0.24 | -33.33 | | Weighted Average Return on Net Assets (%) | 3.32 | 5.57 | Decrease by 2.25 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 2.65 | 4.92 | Decrease by 2.27 percentage points | - The change in net cash flow from operating activities is primarily due to the large amount of cash paid for goods purchased and services received in the current period[15] - The change in basic earnings per share excluding non-recurring gains and losses is mainly due to the increase in share capital compared to the same period last year[15] IX. Non-Recurring Gains and Losses and Amounts This section lists the company's non-recurring gains and losses and their amounts for the reporting period, totaling 13.22 million yuan, primarily including government subsidies and gains/losses from disposal of non-current assets 2024 Semi-Annual Non-Recurring Gains and Losses and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :-------------------------------- | :------------ | | Gains/Losses from Disposal of Non-Current Assets | 2,398.48 | | Government Subsidies Included in Current Profit and Loss | 16,443,546.08 | | Other Non-Operating Income and Expenses Apart from the Above | 64,228.68 | | Less: Income Tax Impact | 3,277,002.29 | | Impact on Minority Interests (After Tax) | 13,703.95 | | Total | 13,219,467.00 | Section III Management Discussion and Analysis I. Description of the Company's Industry and Main Business During the Reporting Period The company primarily engages in the R&D, production, and sales of copper strip and foil materials, adopting a "raw material price + processing fee" pricing model. The industry belongs to non-ferrous metal rolling and processing, benefiting from growth in new energy, automotive, and electronic communication demands, but facing sluggish real estate and infrastructure consumption. The industry is evolving towards green, intelligent, high-end, and clustered development - The company's main business is the R&D, production, and sales of copper strip and foil materials, widely used in transformers, power cables, communication cables, radiators, heat exchangers, electronic appliances, and new energy fields[18][19] - The company adopts a "raw material price + processing fee" pricing model, with electrolytic copper as the main raw material and processing fees negotiated based on market factors, while production and procurement follow a "production based on sales, procurement based on production" model[19] - The industry belongs to "C32 Non-ferrous Metal Smelting and Rolling Processing Industry," driven by new energy power, new energy vehicles, and electronic communication, but real estate and infrastructure consumption remain sluggish[19] - China's copper processing industry has seen steady output growth, significant import substitution, enhanced international competitiveness, and is developing towards green, intelligent, high-end, and clustered directions[19] II. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness spans seven aspects: technology, products, production, cost, scale, market, and brand. It holds multiple patents, offers a rich product portfolio, boasts high levels of automation and intelligence in production, reduces costs through technological upgrades, has become a large-scale and technologically leading enterprise in the industry, and has established an extensive sales network and strong brand reputation - Technological Advantage: As of the end of the reporting period, the company and its subsidiaries held 25 invention patents and 111 utility model patents, covering new materials, new energy, and auxiliary businesses[20] - Product Advantage: Formed a series of copper strip and foil products covering multiple grades, dozens of varieties, and thousands of specifications, capable of assisting customers in new product development[20] - Production Advantage: Possesses professional production technology and experience, upgrading production equipment through technological transformation to achieve automated and intelligent production, optimizing process flows, and shortening production cycles[20] - Market Advantage: Established its own sales network covering East China, South China, Southwest China, Central China, North China, and Northeast China, actively expanding international markets, primarily through direct sales[21] - Brand Advantage: Built a good reputation among downstream customers, receiving multiple honors such as being among the Top 100 Private Enterprises by Revenue in Anhui Province in 2023[21] III. Discussion and Analysis of Operations During the reporting period, the company's operating revenue increased by 15.44%, but net profit and non-recurring net profit both declined. The company adheres to a dual-driven strategy of new materials and new energy, with stable production and sales of copper strip and rolled copper foil in the new materials business, successful customer expansion for power battery metal structural parts in the new energy business, and the first phase of the aluminum foil project reaching its intended usable state. The energy storage business, through its subsidiary Anhui Zhonghui, provides green power support to the company, reducing energy costs. The auxiliary business, Luoyang Yingchuang, increased capital and expanded into 3D printing 2024 Semi-Annual Operating Performance Overview | Indicator | Amount (billion yuan) | Year-on-Year Change (%) | | :-------- | :-------------------- | :---------------------- | | Operating Revenue | 4.05 | +15.44 | | Net Profit Attributable to Shareholders of Listed Company | 0.06515 | -1.44 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 0.05193 | -11.11 | | Total Assets | 3.67 | +19.91 | | Net Assets Attributable to Shareholders of Listed Company | 1.95 | +0.92 | | Basic Earnings Per Share (yuan/share) | 0.21 | -22.22 | | Weighted Average Return on Net Assets (%) | 3.32 | Decrease by 2.25 percentage points | - New Materials Business: Copper strip production 56,600 tons, sales 57,100 tons; rolled copper foil production 1,736 tons, sales 1,753 tons; export sales 3,199 tons[22] - New Energy Business: Power battery metal structural parts annual capacity 300,000 units, main customers include Chery Automobile, Farasis Energy, and new collaborations with Zhenli New Energy and Lan Jun. The first phase of the aluminum foil project reached its intended usable state, producing 1,961.88 tons and selling 1,613.91 tons in the first half of the year. The energy storage business, through Anhui Zhonghui, provides green power support to the company, reducing energy costs[22] - Auxiliary Business: Luoyang Yingchuang increased capital to 30 million yuan, with Zhongyuan Investment's shareholding decreasing to 28%, expanding business into 3D printing-related fields, including powder metallurgy technology, metal 3D printing additive manufacturing technology, and equipment industrialization[22] IV. Major Operating Conditions During the Reporting Period This section provides a detailed analysis of the company's major operating conditions during the reporting period, including reasons for changes in financial statement items, asset and liability status, investment activities, and the operating performance of major subsidiaries. Both operating revenue and costs increased due to higher sales volume and raw material prices, but R&D expenses decreased. The company's asset and liability structure changed, with a decrease in monetary funds and an increase in receivables and short-term borrowings. The company made several equity and non-equity investments and disclosed the financial data of its major subsidiaries (I) Main Business Analysis](index=10&type=section&id=(I)%20Main%20Business%20Analysis) During the reporting period, the company's operating revenue and operating costs both increased due to higher sales volume and rising prices of electrolytic copper raw materials. Selling expenses, administrative expenses, and financial expenses also rose due to increased sales, higher employee compensation, and expanded financing. R&D expenses slightly decreased year-on-year. Net cash flow from operating activities saw a significant outflow due to large cash payments for goods purchased, while net cash flow from investing activities saw a reduced outflow due to decreased project investments by subsidiaries, and net cash flow from financing activities decreased due to cash dividend payments 2024 Semi-Annual Major Financial Statement Item Changes | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--------------------------- | :------------------------------ | :--------- | | Operating Revenue | 4,048,840,931.08 | 3,507,337,810.39 | 15.44 | | Operating Cost | 3,898,725,033.95 | 3,359,813,484.18 | 16.04 | | Selling Expenses | 10,931,341.87 | 9,474,010.46 | 15.38 | | Administrative Expenses | 21,158,620.01 | 17,222,031.76 | 22.86 | | Financial Expenses | 10,516,085.38 | 8,209,885.09 | 28.09 | | R&D Expenses | 37,258,716.70 | 39,485,231.83 | -5.64 | | Net Cash Flow from Operating Activities | -346,729,164.82 | -160,172,593.86 | Not Applicable | | Net Cash Flow from Investing Activities | -117,803,520.89 | -185,812,230.42 | Not Applicable | | Net Cash Flow from Financing Activities | 324,711,541.04 | 333,947,781.56 | -2.77 | - Changes in operating revenue and operating costs are primarily due to the increase in sales volume and the price of electrolytic copper raw materials compared to the same period last year[24][25] - The change in net cash flow from operating activities is mainly due to the large amount of cash paid for goods purchased and services received in the current period[24] (III) Analysis of Assets and Liabilities](index=10&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets increased by 19.91%. Monetary funds decreased by 35.79% to 248 million yuan, mainly due to large payments for raw material purchases. Receivables increased by 37.82% to 892 million yuan, mainly due to increased sales volume and rising prices of electrolytic copper. Short-term borrowings increased by 67.08% to 836 million yuan, mainly due to increased needs for production and operations. Prepayments significantly increased by 4738.35% to 395 million yuan, mainly due to large prepayments for raw materials. Notes payable increased by 351.91% to 203 million yuan, mainly due to an increase in the amount of letters of credit issued 2024 Semi-Annual Asset and Liability Status Changes | Item Name | Current Period End Amount (yuan) | Current Period End Proportion of Total Assets (%) | Prior Year End Amount (yuan) | Prior Year End Proportion of Total Assets (%) | Change from Prior Year End (%) | Explanation | | :----------------------- | :------------------------------- | :-------------------------------------------- | :------------------------------- | :-------------------------------------------- | :---------------------------------- | :---------- | | Monetary Funds | 247,754,223.17 | 6.75 | 385,840,159.66 | 12.61 | -35.79 | Mainly due to large payments for raw material purchases in the current period | | Receivables | 892,291,694.43 | 24.32 | 647,452,684.33 | 21.16 | 37.82 | Mainly due to increased sales volume and rising prices of electrolytic copper raw materials in the current period | | Short-Term Borrowings | 835,839,092.94 | 22.78 | 500,257,462.00 | 16.35 | 67.08 | Mainly due to increased short-term borrowings for production and operations in the current period | | Prepayments | 395,468,911.07 | 10.78 | 8,173,633.99 | 0.27 | 4,738.35 | Mainly due to large prepayments for raw materials at the end of the current period | | Notes Payable | 203,360,000.00 | 5.54 | 45,000,000.00 | 1.47 | 351.91 | Mainly due to an increase in the amount of letters of credit issued in the current period | | Taxes Payable | 48,301,726.61 | 1.32 | 23,469,015.28 | 0.77 | 105.81 | Mainly due to an increase in value-added tax payable at the end of the current period | | Non-Current Liabilities Due Within One Year | 87,843,829.42 | 2.39 | 19,771,478.22 | 0.65 | 344.30 | Mainly due to an increase in long-term borrowings repayable within one year | (IV) Analysis of Investment Status](index=11&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the reporting period, the company engaged in equity and non-equity investments. In terms of equity investments, it increased capital in its wholly-owned subsidiary Zhongyuan Investment by 50 million yuan, raising its registered capital to 200 million yuan; its associate Luoyang Yingchuang increased capital to 30 million yuan, with Zhongyuan Investment's shareholding decreasing to 28%; and it established a new controlling subsidiary, Anhui Zhongyuan Zhizao Technology Co., Ltd., with Zhongyuan Investment holding 68%. In terms of non-equity investments, the first phase of the 100,000-ton high-precision copper alloy strip and 50,000-ton copper strip blank production line project is undergoing equipment debugging, and the first phase of the 50,000-ton battery foil project has reached its intended usable state - The company increased capital in its wholly-owned subsidiary Anhui Zhongyuan New Materials Investment Co., Ltd. by 50 million yuan, raising its registered capital from 150 million yuan to 200 million yuan[29] - The registered capital of associate Luoyang Yingchuang Aurora Precision Manufacturing Co., Ltd. increased from 10 million yuan to 30 million yuan, with Zhongyuan Investment's shareholding decreasing from 40% to 28%[29] - The company, together with Nanling Huier Investment Fund Co., Ltd. and others, jointly established Anhui Zhongyuan Zhizao Technology Co., Ltd., with a registered capital of 100 million yuan, and Zhongyuan Investment holding 68%[29] - The first phase of the 100,000-ton high-precision copper alloy strip and 50,000-ton copper strip blank production line project is undergoing equipment debugging, with some trial production beginning, and the expected usable date extended to November 2024, with a cumulative investment of 536 million yuan[30] - The first phase of the 50,000-ton battery foil project has reached its intended usable state, with a cumulative investment of 237 million yuan[30] (VI) Analysis of Major Holding and Participating Companies](index=14&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section lists the basic information, main business, and financial data at the end of the reporting period for the company's major holding and participating companies. Among them, Anhui Yongjie Copper Industry Co., Ltd. and Anhui Zhongyong Materials Co., Ltd. had a significant impact on the company's net profit, while Wuhu Yongjie Copper Materials Co., Ltd. incurred losses Major Holding and Participating Company Financial Data (June 30, 2024) | Company Name | Main Business | Shareholding Ratio (%) | Registered Capital (10,000 yuan) | Total Assets as of June 30, 2024 (10,000 yuan) | Net Assets as of June 30, 2024 (10,000 yuan) | Net Profit for Jan-Jun 2024 (10,000 yuan) | | :----------------------------- | :------------------------------------------------- | :-------------------- | :----------------------- | :------------------------------------------- | :------------------------------------------- | :-------------------------------------- | | Anhui Yongjie Copper Industry Co., Ltd. | Production, sales, and processing of non-ferrous metal plates, strips, tubes, rods, bars, and wires | 100 | 20,000.00 | 141,195.24 | 45,848.44 | 2,558.98 | | Wuhu Zhongyuan Import and Export Co., Ltd. | Self-operated and agency import and export business for various goods or technologies | 100 | 3,000.00 | 23,281.80 | 8,032.66 | 161.22 | | Anhui Jiegauan Trading Co., Ltd. | Domestic general merchandise trade; self-operated and agency import and export business for various goods and technologies | 100 | 1,000.00 | 90,087.67 | 7,457.16 | 395.70 | | Wuhu Zhongyuan Trading Co., Ltd. | Sales of metals and non-metals, hardware and electrical machinery, chemical materials, electronic materials | 100 | 1,000.00 | 4,757.95 | 1,322.50 | 215.42 | | Anhui Zhongyong Materials Co., Ltd. | Sales of metal materials, chemical materials, metal products | 100 | 1,000.00 | 20,511.04 | 4,555.05 | 862.84 | | Wuhu Zhongyuan Aluminum Foil Co., Ltd. | Non-ferrous metal rolling and processing; new material technology R&D | 100 | 10,000.00 | 32,036.16 | 9,543.31 | -370.19 | | Anhui Zhongyuan New Energy Technology Co., Ltd. | Emerging energy technology R&D; automotive parts R&D | 70 | 5,000.00 | 17,159.44 | 3,754.15 | 53.90 | | Luoyang Yingchuang Aurora Precision Manufacturing Co., Ltd. | Manufacturing of special metallurgical equipment; additive manufacturing | 28 | 3,000.00 | 11,671.59 | 2,356.56 | 109.58 | - Anhui Yongjie Copper Industry Co., Ltd. reported operating revenue of 503 million yuan and operating profit of 30.19 million yuan, significantly impacting the company's net profit[36] - Wuhu Yongjie Copper Materials Co., Ltd. reported operating revenue of 203 million yuan and operating profit of -10.79 million yuan, indicating a loss[36] V. Other Disclosures The company faces risks from exchange rate fluctuations, interest rate fluctuations, industry competition, raw material price volatility, accounts receivable bad debts, and changes in tax preferential policies. The company has taken measures to address these, such as closely monitoring market dynamics, optimizing product structure, locking in raw material prices, and strengthening accounts receivable management - Exchange Rate Fluctuation Risk: RMB exchange rate fluctuations affect the price competitiveness of export products and the procurement cost of imported raw materials; the company will control risks through risk awareness and response mechanisms[37] - Interest Rate Fluctuation Risk: As a capital-intensive industry with significant bank borrowings, rising interest rates could increase financing costs and reduce profits; the company will actively plan to mitigate the impact[37] - Industry Competition Risk: The copper strip and foil processing industry has low concentration and overcapacity in low-end products; the company needs to continuously improve technology and equipment, and optimize its product structure to cope with competition[37] - Raw Material Price Volatility Risk: Electrolytic copper costs account for a high proportion of operating costs; the company uses a "sales price = copper price + processing fee" pricing model and "production based on sales, procurement based on production" to hedge risks, but severe fluctuations may still affect performance[37] - Accounts Receivable Bad Debt Risk: Expanding sales scale may lead to an increase in accounts receivable; the company reduces risk by strengthening management and collecting from overdue customers[37] - Tax Preferential Policy Change Risk: The company enjoys preferential tax rates as a high-tech enterprise; if it fails to be re-certified or no longer meets the conditions in the future, its tax burden will increase, affecting profitability[37] Section IV Corporate Governance I. Overview of Shareholder Meetings This section briefly introduces the company's shareholder meetings held during the reporting period, including the session, date of convocation, designated website index for resolutions, and disclosure date - The 2023 Annual General Meeting of Shareholders was held on May 17, 2024, and the resolutions were disclosed on the Shanghai Stock Exchange website on May 18, 2024[39] III. Profit Distribution or Capital Reserve Conversion Plan During the reporting period, the profit distribution plan or capital reserve conversion plan approved by the company's board of directors was "none," meaning no distribution or conversion would occur - The profit distribution plan or capital reserve conversion plan for this reporting period is "none"[3] - Whether to distribute or convert: No[40] Section V Environmental and Social Responsibility I. Environmental Information The company and its subsidiary Anhui Yongjie Copper Industry Co., Ltd., as key pollutant-discharging units in Wuhu City, strictly comply with environmental regulations, with all major pollutant emissions meeting standards. They have established comprehensive pollution control facilities and emergency plans for environmental incidents. No administrative penalties for environmental issues were incurred during the reporting period. The company has also implemented various measures to reduce carbon emissions, including adopting high-efficiency and energy-saving equipment, establishing an online energy management platform, optimizing annealing processes, and increasing production automation - The company and its subsidiary Anhui Yongjie Copper Industry Co., Ltd. are both key pollutant-discharging units in Wuhu City, with major pollutants including wastewater (pH, COD, ammonia nitrogen), exhaust gas (particulates, non-methane total hydrocarbons), and solid waste (waste oil, waste emulsion, copper sludge, copper ash, zinc oxide)[41][42] - All pollutant emissions meet standards, with most production wastewater reused after treatment, exhaust gas treated by dust removal and oil mist purification devices before compliant discharge, and hazardous waste entrusted to qualified units for disposal[41][42] - The company has established wastewater treatment plants, domestic sewage treatment facilities, bag dust collectors, and oil mist purification devices, all operating stably and meeting standards[43] - Both the company and Yongjie Copper Industry have prepared emergency plans for environmental incidents, filed with the Wuhu Environmental Protection Bureau, aiming to minimize the impact of environmental pollution accidents[44] - During the reporting period, the company did not receive any administrative penalties for environmental violations[47] - The company has implemented various measures to reduce carbon emissions, including adopting high-efficiency and energy-saving equipment, establishing an online energy management platform, using advanced annealing processes, and increasing production automation, to reduce electricity loss, improve management, and enhance thermal efficiency[48] II. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization The company actively fulfills its social responsibilities, donating 20,000 yuan to Liuqiao Administrative Village, Hedian Town, Wuwei City, and 20,000 yuan to the "Emergency Relief" Mutual Aid Society Livelihood Project in Longshan Street, Wuhu Economic and Technological Development Zone, during the reporting period, contributing to poverty alleviation and rural revitalization - The company donated 20,000 yuan in慰问金 (comfort money) to Liuqiao Administrative Village, Hedian Town, Wuwei City[49] - The company donated 20,000 yuan to the "Emergency Relief" Mutual Aid Society Livelihood Project in Longshan Street, Wuhu Economic and Technological Development Zone[49] Section VI Important Matters I. Fulfillment of Commitments The company's actual controller, controlling shareholder, and shareholders holding 5% or more of the shares have strictly fulfilled their commitments related to initial public offerings and refinancing, including avoiding horizontal competition, shareholding intentions and reduction intentions, and ensuring the effective implementation of measures to compensate for diluted immediate returns - Controlling shareholder Feng Quanhu and actual controllers Feng Quanhu and Zhou Li have made written commitments to avoid horizontal competition and not to engage in products or businesses that compete with the company during their tenure as the issuer's actual controllers[50] - The controlling shareholder and shareholders holding 5% or more of the shares have made commitments regarding shareholding intentions and reduction intentions, including the reduction ratio within 2 years after the lock-up period and the reduction price not being lower than the issue price[50][52] - All directors, senior management, controlling shareholders, and actual controllers of the company have committed to diligently perform their duties, not harm the company's interests, and link their compensation system to the company's return compensation measures to ensure the effective implementation of measures to compensate for diluted immediate returns[52][53] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company's controlling shareholder and actual controller maintained good integrity, with no unfulfilled effective court judgments or overdue large debts - During the reporting period, the company's controlling shareholder and actual controller had no unfulfilled effective court judgments or overdue large debts[9] XI. Major Contracts and Their Fulfillment During the reporting period, the company had significant guarantees, primarily for its subsidiaries. As of the end of the reporting period, the company's total guarantee amount was 942 million yuan, accounting for 48.33% of its net assets, of which 670 million yuan was for guaranteed entities with a debt-to-asset ratio exceeding 70% Company's Total Guarantee Amount (Including Guarantees for Subsidiaries) | Indicator | Amount (yuan) | | :-------- | :------------ | | Total Guarantee Balance at End of Reporting Period (A) (Excluding guarantees for subsidiaries) | 10,000,000.00 | | Total Guarantee Amount for Subsidiaries Incurred During Reporting Period | 493,172,100.00 | | Total Guarantee Balance for Subsidiaries at End of Reporting Period (B) | 931,598,680.00 | | Total Guarantee Amount (A+B) | 941,598,680.00 | | Total Guarantee Amount as a Percentage of Company's Net Assets (%) | 48.33 | | Of which: Debt Guarantee Amount Provided Directly or Indirectly for Guaranteed Entities with Debt-to-Asset Ratio Exceeding 70% (D) | 669,939,420.00 | | Total of the Above Three Guarantee Amounts (C+D+E) | 669,939,420.00 | - The company provided a 10 million yuan joint and several liability guarantee for its subsidiary Anhui Yitong International Resources Co., Ltd., with a guarantee start date of September 19, 2024, and an expiration date of September 18, 2027[58] XII. Progress of Raised Funds Utilization The company's total raised funds amounted to 726 million yuan, with a net amount of 717 million yuan. As of the end of the reporting period, a cumulative total of 718 million yuan had been invested, representing an investment progress of 100.11%. Major projects funded by raised capital include the first phase of the 100,000-ton high-precision copper alloy strip and 50,000-ton copper strip blank production line project and the first phase of the 50,000-ton battery foil project, with the battery foil project's first phase having reached its intended usable state. The company has completed the replacement of self-raised funds previously invested in raised capital projects and for paid issuance expenses Overall Utilization of Raised Funds | Source of Raised Funds | Total Raised Funds (yuan) | Net Raised Funds After Issuance Expenses (1) (yuan) | Total Committed Investment of Raised Funds in Prospectus or Offering Document (2) (yuan) | Cumulative Raised Funds Invested as of End of Reporting Period (4) (yuan) | Cumulative Investment Progress of Raised Funds as of End of Reporting Period (%) (6)=(4)/(1) | Amount Invested This Year (8) (yuan) | | :--------------------- | :------------------------ | :------------------------------------------ | :---------------------------------------------------- | :------------------------------------------ | :-------------------------------------------------- | :------------------------ | | Issuance of Shares to Specific Objects | 725,620,224.00 | 717,440,680.11 | 717,440,680.11 | 718,208,797.75 | 100.11 | 109,842,424.09 | - The first phase of the 100,000-ton high-precision copper alloy strip and 50,000-ton copper strip blank production line project has a planned investment of 410 million yuan, with a cumulative investment of 410 million yuan as of the end of the reporting period, an investment progress of 100.08%, and the project's expected usable date extended to November 2024[62] - The first phase of the 50,000-ton battery foil project (first phase 25,000 tons of battery foil) has a planned investment of 190 million yuan, with a cumulative investment of 190 million yuan as of the end of the reporting period, an investment progress of 100.06%, and the project has reached its intended usable state[62] - The company completed the use of raised funds to replace self-raised funds previously invested in raised capital projects and for paid issuance expenses totaling 446 million yuan in September 2023[65] Section VII Changes in Shares and Shareholder Information I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[65] II. Shareholder Information As of the end of the reporting period, the total number of common shareholders was 23,465. Among the top ten shareholders, Feng Quanhu held the highest proportion at 26.42%. During the reporting period, the restricted shares of several shareholders with restricted conditions were lifted on March 7, 2024 - As of the end of the reporting period, the total number of common shareholders was 23,465[68] Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Number of Shares Held at Period End | Proportion (%) | Number of Restricted Shares Held | Shareholder Nature | | :--------------- | :-------------------------- | :------------- | :----------------------------- | :----------------- | | Feng Quanhu | 83,737,276 | 26.42 | 0 | Domestic Natural Person | | Ruan Jiyou | 30,670,016 | 9.68 | 0 | Domestic Natural Person | | Shanghai Kehui Equity Investment Center (Limited Partnership) | 14,230,772 | 4.49 | 0 | Domestic Non-State-Owned Legal Person | | Wang Jinlei | 10,311,364 | 3.25 | 0 | Domestic Natural Person | | Wu Ping | 6,482,000 | 2.04 | 0 | Domestic Natural Person | | Yang Jia'an | 5,327,222 | 1.68 | 0 | Domestic Natural Person | | Li Mingjun | 3,994,871 | 1.26 | 0 | Domestic Natural Person | | Zhou Li | 3,920,000 | 1.24 | 0 | Domestic Natural Person | | Wang Kangbing | 3,398,900 | 1.07 | 0 | Domestic Natural Person | | Anhui Shanhai No. 1 Enterprise Management Center (Limited Partnership) | 3,024,193 | 0.95 | 0 | Unknown | - Among the top ten shareholders, Mr. Feng Quanhu and Ms. Zhou Li are a married couple and are the actual controllers of the company. Mr. Li Mingjun is the son of Ms. Zhou Li's elder sister[69] - The restricted shares of several shareholders with restricted conditions, including Nord Fund, Yang Jia'an, and Tianan Life Insurance Co., Ltd., were lifted on March 7, 2024[64][66][67][70] Section VIII Preferred Shares Information During the reporting period, the company had no preferred shares - The company has no preferred shares[71] Section IX Bonds Information During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[71] - The company has no convertible corporate bonds[71] Section X Financial Report I. Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[3] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024, comprehensively presenting the company's financial position, operating results, and cash flow situation Consolidated Balance Sheet](index=39&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2024, the company's consolidated total assets were 3.67 billion yuan, with current assets of 2.36 billion yuan and non-current assets of 1.31 billion yuan. Current liabilities were 1.41 billion yuan, non-current liabilities were 288 million yuan, and total liabilities were 1.70 billion yuan. Owners' equity attributable to the parent company was 1.95 billion yuan Consolidated Balance Sheet Key Data (June 30, 2024) | Item | June 30, 2024 (yuan) | December 31, 2023 (yuan) | | :--------------------------- | :------------------- | :------------------- | | Total Current Assets | 2,361,741,699.17 | 1,848,392,629.21 | | Total Non-Current Assets | 1,307,924,590.82 | 1,211,915,128.73 | | Total Assets | 3,669,666,289.99 | 3,060,307,757.94 | | Total Current Liabilities | 1,407,485,139.24 | 796,796,034.37 | | Total Non-Current Liabilities | 287,699,340.31 | 305,964,935.84 | | Total Liabilities | 1,695,184,479.55 | 1,102,760,970.21 | | Total Owners' Equity Attributable to Parent Company | 1,948,168,084.06 | 1,930,386,218.99 | | Minority Interests | 26,313,726.38 | 27,160,568.74 | | Total Owners' Equity | 1,974,481,810.44 | 1,957,546,787.73 | | Total Liabilities and Owners' Equity | 3,669,666,289.99 | 3,060,307,757.94 | Consolidated Income Statement](index=43&type=section&id=Consolidated%20Income%20Statement) In the first half of 2024, the company's consolidated total operating revenue was 4.05 billion yuan, total operating costs were 3.99 billion yuan, and net profit was 64.30 million yuan. Net profit attributable to parent company shareholders was 65.15 million yuan, and minority interest loss was -0.85 million yuan. Basic earnings per share were 0.21 yuan/share Consolidated Income Statement Key Data (Jan-Jun 2024) | Item | Jan-Jun 2024 (yuan) | Semi-Annual 2023 (yuan) | | :--------------------------- | :------------------ | :------------------ | | Total Operating Revenue | 4,048,840,931.08 | 3,507,337,810.39 | | Total Operating Costs | 3,987,148,506.65 | 3,442,374,702.66 | | Operating Profit | 75,411,482.47 | 74,867,498.97 | | Total Profit | 75,392,019.75 | 74,888,575.66 | | Net Profit | 64,304,244.61 | 64,313,409.71 | | Net Profit Attributable to Parent Company Shareholders | 65,151,086.97 | 66,099,695.18 | | Minority Interest Loss | -846,842.36 | -1,786,285.47 | | Basic Earnings Per Share (yuan/share) | 0.21 | 0.27 | | Diluted Earnings Per Share (yuan/share) | 0.21 | 0.27 | Consolidated Cash Flow Statement](index=47&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2024, the company's net cash flow from operating activities was -347 million yuan, net cash flow from investing activities was -118 million yuan, and net cash flow from financing activities was 325 million yuan. The net increase in cash and cash equivalents was -137 million yuan Consolidated Cash Flow Statement Key Data (Jan-Jun 2024) | Item | Jan-Jun 2024 (yuan) | Semi-Annual 2023 (yuan) | | :-------------------------------- | :------------------ | :------------------ | | Net Cash Flow from Operating Activities | -346,729,164.82 | -160,172,593.86 | | Net Cash Flow from Investing Activities | -117,803,520.89 | -185,812,230.42 | | Net Cash Flow from Financing Activities | 324,711,541.04 | 333,947,781.56 | | Net Increase in Cash and Cash Equivalents | -136,535,291.66 | -11,959,823.98 | | Cash and Cash Equivalents at End of Period | 247,754,223.17 | 204,776,019.50 | III. Company Basic Information Anhui Zhongyuan New Materials Co., Ltd. was established on May 10, 2011, with a registered capital of 317 million yuan. The company's shares were listed and traded on the Shanghai Stock Exchange on September 7, 2017. The company's business scope includes the production, processing, sales, and import/export of non-ferrous metal strips and foils. This financial report was approved for issuance by the Board of Directors on August 26, 2024 - Anhui Zhongyuan New Materials Co., Ltd. was established on May 10, 2011, with a registered capital of 316.97 million yuan[103] - The company's shares were listed and traded on the Shanghai Stock Exchange on September 7, 2017, with the stock abbreviation "Zhongyuan New Materials" and stock code "603527"[103] - The company's business scope includes the production, processing, and sales of non-ferrous metal strips and foils; processing and sales of non-ferrous metal materials; and self-operated and agency import and export business for various goods and technologies[103] - This financial report was approved for issuance by the company's Board of Directors on August 26, 2024[103] VI. Taxes The company's main taxes include Value-Added Tax (13%), Urban Maintenance and Construction Tax (7%, 5%), and Enterprise Income Tax (25%). The company and its subsidiary Yongjie Copper Industry enjoy a 15% preferential enterprise income tax rate as high-tech enterprises. Some subsidiaries benefit from preferential tax reduction policies for small and micro enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :----------- | :-------- | :------- | | Value-Added Tax | Taxable Sales Amount | 13% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7%, 5% | | Enterprise Income Tax | Taxable Income | 25% | - The company and its subsidiary Yongjie Copper Industry have both obtained high-tech enterprise qualifications and enjoy a 15% preferential enterprise income tax rate[178] - Subsidiaries such as Zhongyuan Trading, Zhongyuan Investment, Dongguan Zhongluo, Harbin Haship, Shenzhen Xinneng, and Anhui Zhonghui enjoy preferential tax reduction policies for small and micro enterprises[178] VII. Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning-of-period balances, and changes and reasons for each major item in the consolidated financial statements, covering assets, liabilities, owners' equity, income, costs, and expenses, providing specific data support for understanding the company's financial position and operating results 1、Monetary Funds](index=91&type=section&id=1%E3%80%81Monetary%20Funds) As of the end of the reporting period, the company's monetary funds balance was 248 million yuan, a decrease of 35.79% from 386 million yuan at the beginning of the period, primarily consisting of bank deposits Monetary Funds Composition | Item | Period-End Balance (yuan) | Beginning-of-Period Balance (yuan) | | :--- | :---------------- | :----------------- | | Cash on Hand | 1,346,538.78 | 399,766.33 | | Bank Deposits | 246,407,684.39 | 383,889,748.50 | | Other Monetary Funds | — | 1,550,644.83 | | Total | 247,754,223.17 | 385,840,159.66 | 5、Accounts Receivable](index=93&type=section&id=5%E3%80%81Accounts%20Receivable) As of the end of the reporting period, the company's accounts receivable book balance was 952 million yuan, an increase of 37.12% from 694 million yuan at the beginning of the period. Accounts receivable with an aging of less than 1 year accounted for 98.49%. Total bad debt provisions were 59.84 million yuan, mainly accrued by portfolio. The top five debtors accounted for 210 million yuan, representing 22.10% of the total Accounts Receivable Aging Distribution | Aging | Period-End Book Balance (yuan) | Beginning-of-Period Book Balance (yuan) | | :---- | :--------------------- | :-------------------------- | | Within 1 year | 937,753,685.69 | 679,828,630.10 | | 1 to 2 years | 1,423,765.27 | 1,710,286.12 | | 2 to 3 years | 195,434.30 | 448,139.55 | | 3 to 4 years | 354,242.46 | — | | Over 5 years | 12,405,685.21 | 12,405,685.21 | | Total | 952,132,812.93 | 694,392,740.98 | Accounts Receivable Bad Debt Provision Classification Disclosure | Category | Book Balance (yuan) | Proportion (%) | Bad Debt Provision (yuan) | Provision Rate (%) | Book Value (yuan) | | :----------------------- | :---------------- | :------------- | :---------------- | :---------------- | :---------------- | | Provision for individual items | 12,744,927.27 | 1.34 | 12,744,927.27 | 100 | — | | Provision by portfolio | 939,387,885.66 | 98.66 | 47,096,191.23 | 5.01 | 892,291,694.43 | | Total | 952,132,812.93 | / | 59,841,118.50 | / | 892,291,694.43 | - The amount of bad debt provision accrued in the current period is 12.90 million yuan[188] Accounts Receivable and Contract Assets from Top Five Debtors by Period-End Balance | Unit Name | Accounts Receivable Period-End Balance (yuan) | Proportion of Total Accounts Receivable and Contract Assets Period-End Balance (%) | Bad Debt Provision Period-End Balance (yuan) | | :----------------------------- | :---------------------------- | :------------------------------------------------------------ | :--------------------------- | | Wuhu Qida Power Battery System Co., Ltd. | 62,376,426.73 | 6.55 | 3,118,821.34 | | Jiangsu Huapeng Transformer Co., Ltd. | 51,513,082.60 | 5.41 | 2,575,654.13 | | Ningbo Aogao Supply Chain Co., Ltd. | 40,764,902.61 | 4.28 | 2,038,245.13 | | Zhejiang Hongming Metal Co., Ltd. | 30,549,271.74 | 3.21 | 1,527,463.58 | | Ganzhou Guixin Copper Industry Co., Ltd. | 25,231,473.82 | 2.65 | 1,261,573.69 | | Total | 210,435,157.50 | 22.10 | 10,521,757.87 | 7、Receivables Financing](index=97&type=section&id=7%E3%80%81Receivables%20Financing) As of the end of the reporting period, the company's receivables financing balance was 112 million yuan, a decrease of 16.99% from 135 million yuan at the beginning of the period, entirely consisting of bank acceptance bills. During the reporting period, the amount of receivables financing that was endorsed or discounted and had not yet matured, and for which derecognition occurred, was 298 million yuan Receivables Financing Classified Listing | Item | Period-End Balance (yuan) | Beginning-of-Period Balance (yuan) | | :--- | :---------------- | :----------------- | | Bank Acceptance Bills | 112,047,186.84 | 135,000,936.27 | | Total | 112,047,186.84 | 135,000,936.27 | Receivables Financing Endorsed or Discounted and Not Yet Matured at Period End | Item | Period-End Derecognition Amount (yuan) | | :--- | :--------------------------- | | Bank Acceptance Bills | 298,099,977.61 | | Total | 298,099,977.61 | 8、Prepayments](index=99&type=section&id=8%E3%80%81Prepayments) As of the end of the reporting period, the company's prepayments balance was 395 million yuan, a significant increase of 4738.35% from 8.17 million yuan at the beginning of the period, mainly due to large prepayments for raw materials. Prepayments with an aging of less than 1 year accounted for 99.97% Prepayments by Aging | Aging | Amount (yuan) | Proportion (%) | | :---- | :------------ | :------------- | | Within 1 year | 395,358,774.36 | 99.97 | | 1 to 2 years | 110,136.71 | 0.03 | | Total | 395,468,911.07 | 100.00 | Prepayments from Top Five Payees by Period-End Balance | Unit Name | June 30, 2024 (yuan) | Proportion of Total Prepayments at Period End (%) | | :----------------------------- | :------------------- | :------------------------------------------- | | Shanghai Tongyue Industrial Co., Ltd. | 216,110,543.74 | 54.65 | | China Gold Group International Trade Co., Ltd. | 85,067,852.32 | 21.51 | | Jiujiang Ruiding Trading Co., Ltd. | 63,754,035.59 | 16.12 | | Jiaxing Huatong Investment Co., Ltd. | 24,034,981.97 | 6.08 | | Shandong Hongchuang Aluminum Industry Holding Co., Ltd. | 2,151,130.20 | 0.54 | | Total | 391,118,543.82 | 98.90 | 9、Other Receivables](index=99&type=section&id=9%E3%80%81Other%20Receivables) As of the end of the reporting period, the company's other receivables book balance was 5.24 million yuan, an increase of 34.91% from 3.88 million yuan at the beginning of the period. The main nature of the funds was export tax rebates, with total bad debt provisions of 0.90 million yuan. The People's Republic of China Wuhu Customs was the largest debtor, with an amount of 4.16 million yuan Other Receivables by Aging | Aging | Period-End Book Balance (yuan) | Beginning-of-Period Book Balance (yuan) | | :---- | :--------------------- | :-------------------------- | | Within 1 year | 4,244,530.61 | 2,866,776.21 | | 1 to 2 years | 43,591.00 | 66,091.00 | | 2 to 3 years | 225,707.00 | 227,707.00 | | 3 to 4 years | 202,000.00 | 218,120.00 | | 4 to 5 years | 23,120.00 | 5,000.00 | | Over 5 years | 497,774.89 | 497,774.89 | | Total | 5,236,723.50 | 3,881,469.10 | Other Receivables by Nature of Funds | Nature of Funds | Period-End Book Balance (yuan) | Beginning-of-Period Book Balance (yuan) | | :-------------- | :--------------------- | :-------------------------- | | Export Tax Rebates | 4,162,162.78 | 2,587,550.66 | | Deposits and Guarantees | 534,821.02 | 739,821.02 | | Prepayments for Purchases | 497,774.89 | 497,774.89 | | Petty Cash | 28,115.69 | 2,115.69 | | Other | 13,849.12 | 54,206.84 | | Total | 5,236,723.50 | 3,881,469.10 | Other Receivables Bad Debt Provision Accrual | Bad Debt Provision | Stage 1 Expected Credit Loss in Next 12 Months (yuan) | Stage 3 Expected Credit Loss Over Entire Lifetime (Credit Impairment Occurred) (yuan) | Total (yuan) | | :----------------- | :------------------------------------------ | :---------------------------------------------------- | :----------- | | Balance as of January 1, 2024 | 331,320.01 | 497,774.89 | 829,094.90 | | Accrued in Current Period | 73,506.32 | — | 73,506.32 | | Balance as of June 30, 2024 | 404,826.33 | 497,774.89 | 902,601.22 | Other Receivables from Top Five Debtors by Period-End Balance | Unit Name | Period-End Balance (yuan) | Proportion of Total Other Receivables Period-End Balance (%) | Nature of Funds | Aging | Bad Debt Provision Period-End Balance (yuan) | | :------------------------------------ | :---------------- | :-------------------------------------------- | :-------------- | :---- | :--------------------------- | | Wuhu Customs, People's Republic of China | 4,162,162.78 | 79.48 | Export Tax Rebates | Within 1 year | 208,108.14 | | Shanghai Minghao International Trade Co., Ltd. | 497,774.89 | 9.51 | Prepayments for Purchases | Over 5 years | 497,774.89 | | Anhui Hengtuo Automotive Technology Co., Ltd. | 225,707.00 | 4.31 | — | 2 to 3 years | 67,712.10 | | Dongguan Xinhongfeng Industrial Park Development Management Co., Ltd. | 200,000.00 | 3.82 | — | 3 to 4 years | 100,000.00 | | Anhui Zongyu Property Management Co., Ltd. | 43,591.00 | 0.83 | — | 1 to 2 years | 4,359.10 | | Total | 5,129,235.67 | 97.95 | / | / | 877,954.23 | 10、Inventories](index=105&type=section&id=10%E3%80%81Inventories) As of the end of the reporting period, the company's inventory book value was 602 million yuan, an increase of 1.45% from 593 million yuan at the beginning of the period. Inventories primarily consisted of raw materials, work-in-progress, and finished goods. Total inventory impairment provisions were 1.83 million yuan, a significant decrease from 7.28 million yuan at the beginning of the period Inventory Classification | Item | Period-End Book Balance (yuan) | Inventory Impairment Provision (yuan) | Book Value (yuan) | | :-------------- | :--------------------- | :--------------------------- | :---------------- | | Raw Materials | 292,532,304.68 | 182,093.10 | 292,350,211.58 | | Work-in-Progress | 137,606,037.55 | 1,267,684.65 | 136,338,352.90 | | Finished Goods | 158,138,320.88 | 375,784.96 | 157,762,535.92 | | Semi-Finished Goods | 10,380,022.14 | — | 10,380,022.14 | | Consigned Processing Materials | 4,804,211.05 | — | 4,804,211.05 | | Total | 603,460,896.30 | 1,825,562.71 | 601,635,333.59 | Inventory Impairment Provision and Contract Performance Cost Impairment Provision | Item | Beginning-of-Period Balance (yuan) | Amount Increased in Current Period (yuan) | Amount Decreased in Current Period (yuan) | Period-End Balance (yuan) | | :-------------- | :------------------------- | :-------------------------------- | :-------------------------------- | :---------------- | | Raw Materials | 284,831.96 | — | — | 182,093.10 | | Work-in-Progress | 5,113,605.00 | — | — | 1,267,684.65 | | Finished Goods | 1,881,054.18 | — | — | 375,784.96 | | Total | 7,279,491.14 | — | — | 1,825,562.71 | 13、Other Current Assets](index=107&type=section&id=13%E3%80%81Other%20Current%20Assets) As of the end of the reporting period, the company's other current assets balance was 108 million yuan, an increase of 43.55% from 75.38 million yuan at the beginning of the period, primarily consisting of deductible input VAT Other Current Assets Composition | Item | Period-End Balance (yuan) | Beginning-of-Period Balance (yuan) | | :--- | :---------------- | :----------------- | | Deductible Input VAT | 105,175,724.98 | 75,331,588.80 | | Other | 3,034,502.81 | 49,999.97 | | Total | 108,210,227.79 | 75,381,588.77 | 17、Long-Term Equity Investments](index=109&type=section&id=17%E3%80%81Long-Term%20Equity%20Investments) As of the end of the reporting period, the company's long-term equity investments book balance was 22.97 million yuan, an increase of 1.55% from 22.62 million yuan at the beginning of the period. This primarily includes investments in the joint venture Anhui Yitong International Resources Co., Ltd. and the associate Luoyang Yingchuang Aurora Precision Manufacturing Co., Ltd Long-Term Equity Investments | Investee | Beginning-of-Period Balance (yuan) | Changes in Current Period (yuan) | Period-End Balance (yuan) | | :----------------------------- | :------------------------- | :----------------------- | :---------------- | | Anhui Yitong International Resources Co., Ltd. | 13,629,581.28 | 18,505.26 | 13,648,086.54 | | Luoyang Yingchuang Aurora Precision Manufacturing Co., Ltd. | 8,987,917.59 | 332,333.05 | 9,320,250.64 | | Total | 22,617,498.87 | 350,838.31 | 22,968,337.18 | 18、Other Equity Instrument Investments](index=110&type=section&id=18%E3%80%81Other%20Equity%20Instrument%20Investments) As of the end of the reporting period, the company's other equity instrument investments balance was 14.39 million yuan, unchanged from the beginning of the period. This primarily includes investments in Anhui Anwa New Energy Technology Co., Ltd. and Hongxin Investment (Suzhou) Co., Ltd., both designated as financial assets measured at fair value with changes recognized in other comprehensive income, due to strategic investment and intent for long-term holding Other Equity Instrument Investments | Item | Beginning-of-Period Balance (yuan) | Period-End Balance (yuan) | Cumulative Gains Included in Other Comprehensive Income (yuan) | Reason for Designation as Financial Assets Measured at Fair Value with Changes Recognized in Other Comprehensive Income | | :----------------------------- | :------------------------- | :---------------- | :--------------------------------------- | :------------------------------------------------------------------- | | Anhui Anwa New Energy Technology Co., Ltd. | 12,892,431.77 | 12,892,431.77 | 2,892,431.77 | Strategic investment, intended for long-term holding | | Hongxin Investment (Suzhou) Co., Ltd. | 1,500,000.00 | 1,500,000.00 | — | Strategic investment, intended for long-term holding | | Total | 14,392,431.77 | 14,392,431.77 | 2,892,431.77 | / | 21、Fixed Assets](index=111&type=section&id=21%E3%80%81Fixed%20Assets) As of the end of the reporting period, the company's fixed assets book value was 495 million yuan, an increase of 28.59% from 385 million yuan at the beginning of the period. This primarily consists of buildings, machinery and equipment, transportation vehicles, and office and other equipment. In the current period, the original value of fixed assets increased by 136 million yuan, and accumulated depreciation increased by 26.16 million yuan Fixed Assets Book Value | Item | Period-End Book Value (yuan) | Beginning-of-Period Book Value (yuan) | | :------------------- | :------------------- | :-------------------------- | | Buildings | 135,628,958.13 | 90,804,436.08 | | Machinery and Equipment | 346,719,230.64 | 281,053,976.09 | | Transportation Vehicles | 3,896,053.67 | 4,236,469.89 | | Office and Other Equipment | 8,875,578.63 | 8,798,762.17 | | Total | 495,119,821.07 | 384,893,644.23 | Fixed Assets Original Value and Accumulated Depreciation Changes | Item | Buildings (yuan) | Machinery and Equipment (yuan) | Transportation Vehicles (yuan) | Office and Other Equipment (yuan) | Total (yuan) | | :----------------------- | :----------------- | :--------------------- | :--------------------- | :------------------------ | :----------------- | | Original Cost Beginning Balance | 127,867,978.80 | 489,348,195.66 | 13,178,203.92 | 14,139,429.84 | 644,533,808.22 | | Amount Increased in Current Period | 48,535,177.75 | 87,198,758.85 | 211,169.39 | 486,251.39 | 136,431,357.38 | | Original Cost Period-End Balance | 176,403,156.55 | 576,002,566.42 | 13,119,373.31 | 14,603,195.86 | 780,128,292.14 | | Accumulated Depreciation Beginning Balance | 37,063,542.72 | 208,294,219.57 | 8,941,734.03 | 5,340,667.67 | 259,640,163.99 | | Amount Increased in Current Period (Accrued) | 3,710,655.70 | 21,506,284.89 | 538,085.61 | 408,310.67 | 26,163,336.87 | | Accumulated Depreciation Period-End Balance | 40,774,198.42 | 229,283,335.78 | 9,223,319.64 | 5,727,617.23 | 285,008,471.07 | 22、Construction in Progress](index=113&type=section&id=22%E3%80%81Construction%20in%20Progress) As of the end of the reporting period, the company's construction in progress book value was 588 million yuan, a decrease of 8.22% from 642 million yuan at the beginning of the period. Major projects include the 100,000-ton high-precision copper alloy strip and 50,000-ton copper strip blank production line project and the 50,000-ton battery foil project. Of these, the battery foil project transferred 122 million yuan to fixed assets in the current period Construction in Progress | Item | Period-End Book Balance (yuan) | Beginning-of-Period Book Balance (yuan) | | :------------------------------------------------ | :--------------------- | :-------------------------- | | 100,000-ton High-Precision Copper Alloy Strip and 50,000-ton Copper Strip Blank Production Line | 480,466,297.55 | 426,631,717.04 | | 50,000-ton Battery Foil Project | 97,464,335.33 | 208,386,363.66 | | Equipment Awaiting Installation | 10,566,371.83 | 6,848,311.11 | | Total | 588,497,004.71 | 641,866,391.81 | Changes in Important Construction in Progress Projects During the Current Period | Project Name | Budget (yuan) | Beginning-of-Period Balance (yuan) | Amount Increased in Current Period (yuan) | Amount Transferred to Fixed Assets in Current Period (yuan) | Period-End Balance (yuan) | Cumulative Project Investment as Percentage of Budget (%) | Project Progress (%) | Source of Funds | | :------------------------------------------------ | :------------------- | :------------------------- | :-------------------------------- | :------------------------------------------- | :---------------- | :------------------------------------------ | :---------------- | :-------------- | | 100,000-ton High-Precision Copper Alloy Strip and 50,000-ton Copper Strip Blank Production Line | 864,220,000.00 | 426,631,717.04 | 53,834,580.51 | — | 480,466,297.55 | 55.60 | 55.60 | Self-raised/Borrowings/Raised Funds | | 50,000-ton Battery Foil Project | 350,000,000.00 | 208,386,363.66 | 10,759,562.25 | 121,681,590.58 | 97,464,335.33 | 62.61 | 62.61 | Self-raised/Borrowings/Raised Funds | | Equipment Awaiting Installation | — | 6,848,311.11 | 5,686,027.18 | 1,967,966.46 | 10,566,371.83 | — | — | Self-raised | 25、Right-of-Use Assets](index=115&type=section&id=25%E3%80%81Right-of-Use%20Assets) As of the end of the reporting period, the company's right-of-use assets book value was 5.68 million yuan, a decrease of 17.65% from 6.89 million yuan at the beginning of the period, entirely consisting of buildings. Accumulated depreciation increased by 1.22 million yuan in the current period Right-of-Use Assets | Item | Buildings (