无锡路通视信网络股份有限公司 2025 年半年度报告全文 无锡路通视信网络股份有限公司 2025 年半年度报告 2025-075 2025 年 8 月 1 无锡路通视信网络股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及除以下存在异议声明的董事、监事、高级管理人 员外的其他董事、监事、高级管理人员均保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律 责任。 2 姓名 职务 内容和原因 曾庆川 监事会主席 1、关于江苏证监局处罚 的整改 公司及相关责任人于 2025 年 6 月 23 日收到 中国证券监督管理委员 会江苏监管局（以下简 称"江苏证监局"）下 发的《江苏证监局关于 对无锡路通视信网络股 份有限公司采取责令改 正措施并对邱京卫采取 出具警示函措施的决 定》。对于上述处罚的 整改，公司《2025 年半 年度报告》之"九、处 罚及整改情况"部分的 董事、监事、高级管理人员异议声明 无锡路通视信网络股份有限公司 2025 年半年度报告全文 | "整改情况说明"第 2 | | --- | | 点中表述，公司"严格 ...

PB / / 1 2025 2025 2025 2025 重要提示 一、本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确性、完整性，不存在虚假记载、 误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、本报告经公司第五届董事会第十七次会议审议通过。公司全体董事出席董事会会议。 三、本半年度报告未经审计。 四、公司负责人施华、主管会计工作负责人李岩及会计机构负责人（会计主管人员）祖坤声明：保证半年度报告中财务报告 的真实、准确、完整。 五、董事会决议通过的本报告期利润分配预案或公积金转增股本预案 2025 年半年度进行现金分红，以实施现金分红股权登记日登记的总股本为基数，向全体股东每 10 股派发现金红利 0.61 元（含税），合计派发现金红利总额 502,158,185.10 元（含税）。在实施权益分派的股权登记日前公司总股本发生变动的， 维持分配总额不变，相应调整每股分配金额。 六、前瞻性陈述的风险声明 本报告内容涉及的未来计划等前瞻性陈述因存在不确定性，不构成公司对投资者的实质承诺，请投资者注意投资风险。 七、是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、是 ...

[Important Notice](index=2&type=section&id=Important%20Notice) The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, which is unaudited, with no profit distribution or capital reserve conversion to share capital during the reporting period, and forward-looking statements do not constitute a substantive commitment to investors - The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions[3](index=3&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - No profit distribution or capital reserve conversion to share capital occurred during the reporting period[6](index=6&type=chunk) - Forward-looking statements regarding future plans and development strategies in this report do not constitute a substantive commitment to investors; investors are advised to be aware of investment risks[7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines common terms used in the report, such as "CSRC," "SSE," "Huayang Group," and abbreviations for the company and its subsidiaries, ensuring clear understanding of the report content - This section primarily explains common terms used in the report, such as "CSRC," "SSE," "Huayang Group," and abbreviations for the company and its subsidiaries, to ensure clear understanding of the report content[13](index=13&type=chunk)[14](index=14&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's basic information, contact details, changes in registration, information disclosure, stock overview, and a summary of key financial data and indicators, highlighting the impact of market conditions on performance [I. Company Information](index=6&type=section&id=I.%20Company%20Information) This section discloses the company's basic registration information, including its Chinese name, abbreviation, foreign name and abbreviation, and legal representative - The company's Chinese name is Shanxi Huayang Group Xinneng Co., Ltd., abbreviated as Huayang Shares, with Wang Yuming as the legal representative[16](index=16&type=chunk) [II. Contact Person and Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Information) This section provides the name, address, telephone number, and email of the company's Board Secretary for investor and public communication - The Board Secretary is Lu Xinbao, contact number **0353-7078618**, email hygf600348@sina.com[17](index=17&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=6&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section details changes in the company's registered and office addresses, along with its postal code and website - The company's registered and office addresses are both No. 2 Taobei West Street, Yangquan City, Shanxi Province, and the company website is https://yqmy.ymjt.com.cn[18](index=18&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=6&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) This section specifies the company's designated newspapers for information disclosure, the website for semi-annual reports, and the report storage location - The company's information disclosure newspapers are "China Securities Journal," "Shanghai Securities News," and "Securities Daily," with reports published on www.sse.com.cn[19](index=19&type=chunk) [V. Company Stock Profile](index=6&type=section&id=V.%20Company%20Stock%20Profile) This section provides the company's stock type, listing exchange, stock abbreviation, code, and previous stock abbreviation - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation Huayang Shares and stock code **600348**[20](index=20&type=chunk) [VII. Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Company's%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company experienced significant declines in operating revenue, total profit, and net profit attributable to parent company shareholders, primarily due to coal mine safety regulations and weak coal market demand Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,239,594,090.35 | 12,198,928,752.69 | -7.86 | | Total Profit | 1,268,956,416.93 | 1,919,393,536.75 | -33.89 | | Net Profit Attributable to Parent Company Shareholders | 782,636,331.30 | 1,298,886,234.29 | -39.75 | | Net Profit Attributable to Parent Company Shareholders (Excl. Non-recurring Gains/Losses) | 824,113,353.42 | 1,215,200,294.52 | -32.18 | | Net Cash Flow from Operating Activities | 51,817,267.07 | 140,094,169.67 | -63.01 | | Net Assets Attributable to Parent Company Shareholders (Period-end) | 33,250,077,659.72 | 33,277,589,256.26 | -0.08 | | Total Assets (Period-end) | 82,204,974,697.40 | 80,971,454,001.07 | 1.52 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.22 | 0.36 | -38.89 | | Diluted Earnings Per Share (yuan/share) | 0.22 | 0.36 | -38.89 | | Basic Earnings Per Share (Excl. Non-recurring Gains/Losses) (yuan/share) | 0.23 | 0.34 | -32.35 | | Weighted Average Return on Equity (%) | 2.81 | 4.53 | Decreased by 1.72 percentage points | | Weighted Average Return on Equity (Excl. Non-recurring Gains/Losses) (%) | 2.96 | 4.24 | Decreased by 1.28 percentage points | - The main reason for the year-on-year decrease in the company's net profit was the decline in the comprehensive selling price of its main coal products, influenced by coal mine safety production supervision and weak coal market demand[24](index=24&type=chunk) [IX. Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists non-recurring gains and losses for the reporting period, totaling **-41.48 million yuan**, primarily including government subsidies, reversal of impairment provisions for receivables, and other non-operating income and expenses Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Non-current asset disposal gains/losses | -84,173.72 | | Government subsidies included in current profit/loss | 29,819,233.43 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 10,168,549.61 | | Custody fee income from entrusted operations | -259,464.09 | | Other non-operating income and expenses apart from the above | -93,080,455.64 | | Less: Income tax impact | 4,580,671.62 | | Minority interest impact (after tax) | -16,539,959.91 | | Total | -41,477,022.12 | [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry and main business operations, analyzes operating performance, core competitiveness, and key financial changes, and outlines potential risks and strategic responses [I. Description of the Company's Industry and Main Business Operations during the Reporting Period](index=9&type=section&id=I.%20Description%20of%20the%20Company's%20Industry%20and%20Main%20Business%20Operations%20during%20the%20Reporting%20Period) In the first half of 2025, China's coal industry saw strong supply and weak demand, leading to increased coal production but soft downstream demand, pushing coal prices to a multi-year low, while the company's main business diversified across coal, power, heating, and new energy [(1) Overall Industry Overview](index=9&type=section&id=(1)%20Overall%20Industry%20Overview) In H1 2025, national coal output grew by **5.4%**, but weak demand from power, construction, and steel sectors led to a supply-demand imbalance and record low coal prices, with a short-term price rebound expected in July-August due to high temperatures and supply constraints - From January to June 2025, national coal output above designated size reached **2.40 billion tons**, a year-on-year increase of **5.4%**[30](index=30&type=chunk) - Downstream demand was weak, with thermal power, crude steel, and cement output decreasing by **2.4%**, **3.0%**, and **4.3%** year-on-year, respectively[30](index=30&type=chunk) - The coal market continued to show a strong supply and weak demand pattern, with prices for all coal types reaching multi-year lows[30](index=30&type=chunk) [(2) Description of the Company's Main Business Operations](index=9&type=section&id=(2)%20Description%20of%20the%20Company's%20Main%20Business%20Operations) Huayang Shares, as the listed energy arm of Huayang Group, primarily engages in coal production, washing, processing, and sales, power and heat generation and sales, as well as manufacturing of photovoltaic equipment and sodium-ion batteries, and new energy technology promotion, leveraging rich coal resources and the "Yangyou" brand - The company primarily engages in coal production, washing, processing, and sales; power generation and sales; heat production and sales; manufacturing of photovoltaic equipment and components, and sodium-ion batteries; and new energy technology promotion services[31](index=31&type=chunk) - The company possesses abundant coal resource reserves and has established significant competitiveness in the industry with its "Yangyou" brand[31](index=31&type=chunk) [II. Discussion and Analysis of Operating Performance](index=9&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) In the first half of 2025, the company's raw coal output and commercial coal sales increased, but a significant year-on-year drop in the comprehensive coal selling price led to a substantial decline in operating revenue and net profit, while power generation decreased and heating supply increased 2025 H1 Key Operating Data | Indicator | Current Period (10,000 tons/10,000 kWh/10,000 million kilojoules) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Raw Coal Output | 2,076 | 11.25 | | Purchased and Sold Coal | 184 | 14.28 | | Commercial Coal Sales | 1,928 | 12.79 | | Power Generation | 231,652.86 | -21.09 | | Heat Supply | 200.92 | 21.13 | | Comprehensive Coal Selling Price (yuan/ton) | 460.84 | -19.50 | | Operating Revenue (billion yuan) | 112.40 | -7.86 | | Total Profit (billion yuan) | 12.69 | -33.89 | | Net Profit Attributable to Parent Company Owners (billion yuan) | 7.83 | -39.75 | - The comprehensive coal selling price decreased by **19.50%** year-on-year, which was the main reason for the decline in operating revenue and total profit[32](index=32&type=chunk) [III. Analysis of Core Competitiveness during the Reporting Period](index=10&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) The company's core competitiveness stems from its vast coal reserves (**6.68 billion tons**), rare anthracite coal types and "Yangyou" brand reputation, intelligent mine construction, full coal washing strategy for quality and efficiency, consistent shareholder returns, and strategic exploration in new energy and materials like sodium-ion batteries and carbon fiber [(1) Total Resources and Resource Succession Potential](index=10&type=section&id=(1)%20Total%20Resources%20and%20Resource%20Succession%20Potential) The company's total controlled coal resources reached **6.68 billion tons** after acquiring new resources through bidding, with several mines increasing capacity or nearing production, expected to boost approved capacity to over **45 million tons per year** - In 2024, the company acquired approximately **630 million tons** of new resources in the Yujiazhuang block, Shouyang County, Shanxi Province, through bidding, bringing the company's total controlled coal resources to **6.68 billion tons**[33](index=33&type=chunk) - With the capacity increase of Yushupo and Pingshu mines, coupled with Qiyuan and Boli mines entering joint trial operation, the approved capacity is expected to increase to over **45 million tons per year** after official production[33](index=33&type=chunk) [(2) Rarity of Coal Type and Brand Reputation](index=10&type=section&id=(2)%20Rarity%20of%20Coal%20Type%20and%20Brand%20Reputation) Over **90%** of the company's coal resources are rare anthracite, known for high fixed carbon, smokelessness, low sulfur, and low ash, with its "Yangyou" brand enjoying a strong reputation for quality in the market - Over **90%** of the company's coal resources are anthracite, a rare coal type widely used in power, chemical, metallurgy, and other industries[33](index=33&type=chunk) - The company's "Yangyou" brand enjoys a strong reputation for its excellent quality in markets such as Northeast China, North China, and Shandong[33](index=33&type=chunk) [(3) Intelligent Mines and Technology Application](index=10&type=section&id=(3)%20Intelligent%20Mines%20and%20Technology%20Application) By the end of 2024, the company had built **7 intelligent mines** and **127 intelligent working faces**, becoming the first in Shanxi Province to achieve full mine intelligence, leveraging **5G, IoT, and AI** to enhance efficiency and safety - As of the end of 2024, the company had cumulatively built **7 intelligent mines**, **127 intelligent working faces**, and **1 intelligent coal washing plant**, with all production mines passing acceptance by the Shanxi Provincial Energy Bureau, becoming the first enterprise in Shanxi Province to achieve full mine intelligence[33](index=33&type=chunk) - The company widely applies advanced technologies such as **5G, IoT, and AI** to achieve remote monitoring, fault early warning, and unmanned operation of underground equipment[33](index=33&type=chunk) [(4) "Full Washing, Premium Coal" and Quality Improvement & Efficiency Enhancement](index=10&type=section&id=(4)%20%E2%80%9CFull%20Washing%2C%20Premium%20Coal%E2%80%9D%20and%20Quality%20Improvement%20%26%20Efficiency%20Enhancement) The company's coal washing plant upgrades enable full coal washing, improving commercial coal quality and calorific value, while new de-dusting processes reduce coal slime and a precise coal blending system increases clean coal yield, enhancing quality and efficiency - The company implemented coal washing plant technical upgrades to achieve full coal washing, improving the quality and calorific value of commercial coal[34](index=34&type=chunk) - Through technical upgrades, new de-dusting processes reduce coal slime, increasing economic benefits, and a precise coal blending system optimizes blending solutions, increasing clean coal yield[34](index=34&type=chunk) [(5) Shareholder Returns and Stable Dividends](index=10&type=section&id=(5)%20Shareholder%20Returns%20and%20Stable%20Dividends) The company prioritizes shareholder returns, having distributed a cumulative cash dividend of **12.931 billion yuan** since listing, with dividend payout ratios exceeding **50%** in both 2023 and 2024, demonstrating a consistent and stable cash dividend policy - The company has cumulatively distributed **12.931 billion yuan** in cash dividends since its listing[34](index=34&type=chunk) - The dividend payout ratio reached over **50%** in 2023 and 2024, reflecting the company's emphasis on shareholder returns[34](index=34&type=chunk) [(6) Transformation Exploration and New Energy & New Materials](index=10&type=section&id=(6)%20Transformation%20Exploration%20and%20New%20Energy%20%26%20New%20Materials) The company is actively transforming into new energy and materials, with sodium-ion coal mine emergency power systems moving from demonstration to commercial batch deployment, and a high-performance carbon fiber demonstration line completing equipment installation and entering joint commissioning, indicating promising prospects for new energy and materials industries - The company is advancing sodium-ion coal mine emergency power systems from individual mine demonstrations to commercial batch deployment[34](index=34&type=chunk) - The company's first phase **200 tons/year T1000-grade high-performance carbon fiber demonstration line** has completed equipment installation and entered the joint commissioning phase[34](index=34&type=chunk) [IV. Main Operating Performance during the Reporting Period](index=10&type=section&id=IV.%20Main%20Operating%20Performance%20during%20the%20Reporting%20Period) During the reporting period, the company's operating revenue and costs both decreased, but the cost reduction outpaced revenue decline, leading to an improved gross margin. Coal product sales revenue and power supply revenue decreased, while heating supply revenue increased. The asset-liability structure changed, with increases in prepayments and development expenditures, decreases in notes payable, and an increase in dividends payable. The company held a small amount of financial assets measured at fair value and analyzed its major controlled and investee companies [(1) Analysis of Main Business Operations](index=10&type=section&id=(1)%20Analysis%20of%20Main%20Business%20Operations) The company's main business revenue decreased by **1.046 billion yuan** year-on-year, primarily due to lower coal selling prices. Operating costs decreased by **9.49%** due to enhanced internal management and cost control. Selling, general and administrative, and R&D expenses all increased, while financial expenses rose due to lower deposit interest rates [1. Analysis Table of Changes in Financial Statement Items](index=10&type=section&id=1.%20Analysis%20Table%20of%20Changes%20in%20Financial%20Statement%20Items) Operating revenue decreased by **7.86%** year-on-year, mainly due to lower coal product prices. Operating costs decreased by **9.49%** due to strengthened internal management and cost control. Selling, general and administrative, R&D, and financial expenses all increased to varying degrees Financial Statement Item Changes (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,239,594,090.35 | 12,198,928,752.69 | -7.86 | | Operating Cost | 7,512,658,707.88 | 8,300,770,169.54 | -9.49 | | Selling Expenses | 70,345,521.32 | 56,098,858.40 | 25.40 | | Administrative Expenses | 674,104,518.83 | 628,352,055.84 | 7.28 | | Financial Expenses | 264,480,501.23 | 235,356,539.71 | 12.37 | | R&D Expenses | 304,653,472.56 | 240,839,216.26 | 26.50 | | Net Cash Flow from Operating Activities | 51,817,267.07 | 140,094,169.67 | -63.01 | | Net Cash Flow from Investing Activities | -2,589,688,987.12 | -1,945,814,432.89 | -33.09 | | Net Cash Flow from Financing Activities | 2,450,817,256.14 | 3,346,558,187.30 | -26.77 | - Operating revenue change was mainly due to a year-on-year decrease in the company's coal product prices, leading to lower commercial coal revenue[37](index=37&type=chunk) - Operating cost change was mainly due to the company strengthening internal management, promoting intelligent mine construction, and comprehensively enhancing cost control[38](index=38&type=chunk) - Selling expenses increased mainly due to a year-on-year increase in coal blending and loading/unloading fees, and an increase in bidding service fees[38](index=38&type=chunk) - Financial expenses increased mainly due to lower deposit interest rates, resulting in reduced interest income[38](index=38&type=chunk) [Revenue and Cost Analysis](index=11&type=section&id=Revenue%20and%20Cost%20Analysis) The company's main business revenue decreased by **1.046 billion yuan** year-on-year, with coal sales revenue down by **901 million yuan** due to lower selling prices. Power supply revenue decreased, while heating supply revenue increased. Gross margins for coal, power, and heating businesses all changed to varying degrees - The company's main business revenue decreased by **1.046 billion yuan** year-on-year, with coal sales revenue decreasing by **901 million yuan**, power supply decreasing by **151 million yuan**, and heating supply increasing by **6 million yuan**[39](index=39&type=chunk) - Coal sales volume increased by **2.19 million tons** year-on-year, increasing sales revenue by **1.252 billion yuan**, but the comprehensive coal selling price decreased by **111.63 yuan/ton**, reducing sales revenue by **2.153 billion yuan**[39](index=39&type=chunk) Main Business by Industry (Jan-Jun 2025) | Industry | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 8,887,279,402.54 | 5,573,659,196.55 | 37.28 | -9.21 | -7.92 | Decreased by 0.87 percentage points | | Power Supply | 830,212,646.32 | 543,041,174.17 | 34.59 | -15.42 | -40.07 | Increased by 26.90 percentage points | | Heating Supply | 36,866,412.85 | 61,925,519.89 | -67.97 | 22.17 | 17.23 | Increased by 7.08 percentage points | | Subtotal | 9,754,358,461.71 | 6,178,625,890.61 | 36.66 | -9.68 | -11.89 | Increased by 1.59 percentage points | Main Business by Product (Jan-Jun 2025) | Product | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Washed Lump Coal | 1,105,421,911.74 | 558,640,089.52 | 49.46 | -24.38 | -10.59 | Decreased by 7.79 percentage points | | Washed Slack Coal | 680,288,014.95 | 310,056,735.12 | 54.42 | 69.87 | 57.19 | Increased by 3.68 percentage points | | Slack Coal | 5,882,314,689.45 | 3,662,293,978.41 | 37.74 | -10.05 | -10.83 | Increased by 0.55 percentage points | | Coal Slime | 151,182,842.96 | | 100.00 | -31.99 | | Increased by 0.00 percentage points | | Purchased and Sold Coal | 1,068,071,943.44 | 1,042,668,393.50 | 2.38 | -8.28 | -7.24 | Decreased by 1.09 percentage points | [Production and Sales Volume Analysis Table](index=12&type=section&id=Production%20and%20Sales%20Volume%20Analysis%20Table) During the reporting period, coal production and sales volumes both increased year-on-year, but inventory decreased. Power generation and sales volumes decreased, while heating production and sales volumes both increased Main Product Production and Sales Volume (Jan-Jun 2025) | Main Product | Production Volume | Sales Volume | Inventory Volume | Production Volume Year-on-Year Change (%) | Sales Volume Year-on-Year Change (%) | Inventory Volume Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal (10,000 tons) | 2,076 | 1,928 | 44 | 11.25 | 12.79 | -11.90 | | Power Supply (10,000 kWh) | 251,260.26 | 231,652.86 | - | -21.80 | -21.09 | - | | Heating Supply (10,000 million kilojoules) | 200.92 | 200.92 | - | 21.13 | 21.13 | - | [Cost Analysis Table](index=12&type=section&id=Cost%20Analysis%20Table) During the reporting period, the company's coal sales cost and unit sales cost both decreased year-on-year, power supply costs significantly decreased, while heating supply costs increased. Coal business remains the primary component of the company's total costs Main Business by Industry Cost (Jan-Jun 2025) | Industry | Current Period Amount (yuan) | Current Period % of Total Cost | Prior Year Period Amount (yuan) | Prior Year Period % of Total Cost | Current Period Amount Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 5,573,659,196.55 | 90.21 | 6,053,378,206.96 | 86.33 | -7.92 | | Power Supply | 543,041,174.17 | 8.79 | 906,096,628.77 | 12.92 | -40.07 | | Heating Supply | 61,925,519.89 | 1.00 | 52,821,917.11 | 0.75 | 17.23 | | Subtotal | 6,178,625,890.61 | 100.00 | 7,012,296,752.84 | 100.00 | -11.89 | Main Business by Product Cost (Jan-Jun 2025) | Product | Current Period Amount (yuan) | Current Period % of Total Cost | Prior Year Period Amount (yuan) | Prior Year Period % of Total Cost | Current Period Amount Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Washed Lump Coal | 558,640,089.52 | 9.04 | 624,819,938.98 | 8.91 | -10.59 | | Washed Slack Coal | 310,056,735.12 | 5.02 | 197,250,504.36 | 2.81 | 57.19 | | Slack Coal | 3,662,293,978.41 | 59.27 | 4,107,209,246.47 | 58.58 | -10.83 | | Purchased and Sold Coal | 1,042,668,393.50 | 16.88 | 1,124,098,517.15 | 16.03 | -7.24 | - In the first half of 2025, coal sales cost was **5.574 billion yuan**, a decrease of **479 million yuan** year-on-year; unit sales cost was **289.02 yuan**, a decrease of **65.01 yuan** year-on-year[43](index=43&type=chunk) [(3) Analysis of Assets and Liabilities](index=13&type=section&id=(3)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's prepayments and development expenditures significantly increased, mainly due to higher advance payments for goods and increased investment in the high-performance carbon fiber project. Notes payable and non-current liabilities due within one year decreased, while other payables and dividends payable increased due to cash dividend recognition [1. Asset and Liability Status](index=13&type=section&id=1.%20Asset%20and%20Liability%20Status) Prepayments increased by **36.15%** due to higher advance payments for goods. Development expenditures increased by **201.98%** due to increased investment in the first phase of the thousand-ton high-performance carbon fiber project. Notes payable decreased by **57.66%**, dividends payable increased by **234.41%**, and other payables increased by **42.38%** Asset and Liability Status Changes (Period-end vs. Prior Year-end) | Item Name | Current Period-end Amount (yuan) | Current Period-end % of Total Assets | Prior Year-end Amount (yuan) | Prior Year-end % of Total Assets | Current Period-end Amount Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Prepayments | 401,261,269.75 | 0.49 | 294,730,672.83 | 0.36 | 36.15 | | Development Expenditures | 150,988,100.00 | 0.18 | 50,000,000.00 | 0.06 | 201.98 | | Notes Payable | 930,920,819.98 | 1.13 | 2,198,488,368.20 | 2.72 | -57.66 | | Other Payables | 3,051,347,848.51 | 3.71 | 2,143,110,066.79 | 2.65 | 42.38 | | Dividends Payable | 1,261,717,500.00 | 1.53 | 377,300,000.00 | 0.47 | 234.41 | | Non-current Liabilities Due Within One Year | 542,845,199.31 | 0.66 | 929,731,607.35 | 1.15 | -41.61 | - The increase in prepayments was mainly due to an increase in advance payments for goods[45](index=45&type=chunk) - The increase in development expenditures was mainly due to increased investment in the first phase of the thousand-ton high-performance carbon fiber project (200 tons/year demonstration project)[45](index=45&type=chunk) - The increase in dividends payable was mainly due to the recognition of increased cash dividends during the reporting period[45](index=45&type=chunk) [3. Major Asset Restrictions as of the End of the Reporting Period](index=13&type=section&id=3.%20Major%20Asset%20Restrictions%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company's restricted monetary funds and accounts receivable totaled **2.017 billion yuan**, primarily due to litigation freezes, guarantees, and loan pledges Major Asset Restrictions (Period-end) | Item | Period-end Book Value (yuan) | Restriction Reason | | :--- | :--- | :--- | | Monetary Funds | 1,869,823,195.78 | Bank deposits frozen by litigation, special accounts for land reclamation fees and mine environmental governance and restoration funds, bank acceptance bill margins, performance bonds, credit guarantees | | Accounts Receivable | 147,652,411.59 | Loan pledge | | Total | 2,017,475,607.37 | / | [(4) Analysis of Investment Status](index=14&type=section&id=(4)%20Analysis%20of%20Investment%20Status) The company's financial assets measured at fair value primarily include stocks and private equity funds, totaling **215 million yuan** at period-end, with a slight increase in private equity funds during the current period [(3). Financial Assets Measured at Fair Value](index=14&type=section&id=(3).%20Financial%20Assets%20Measured%20at%20Fair%20Value) The company's total financial assets measured at fair value at period-end were **215 million yuan**, comprising **36 million yuan** in stocks and **179 million yuan** in private equity funds, with a small amount of private equity funds purchased during the current period Financial Assets Measured at Fair Value (Period-end) | Asset Category | Beginning Balance (yuan) | Current Period Purchase Amount (yuan) | Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | | Stocks | 36,000,000.00 | | 36,000,000.00 | | Private Equity Funds | 179,202,992.90 | 174,300.00 | 179,377,292.90 | | Total | 215,202,992.90 | 174,300.00 | 215,377,292.90 | [(6) Analysis of Major Controlled and Investee Companies](index=14&type=section&id=(6)%20Analysis%20of%20Major%20Controlled%20and%20Investee%20Companies) The company disclosed financial information for its major controlled subsidiaries and investee companies with a net profit impact exceeding **10%**, covering coal mining, sales, power, heating, and new energy sectors, with some subsidiaries reporting losses during the period - The company's main subsidiaries include Kaiyuan Company, Xinjing Company, Yushupo Company, Qiyuan Company, Boli Company, etc., with businesses covering coal mining, sales, power, heating, and new energy[52](index=52&type=chunk) - Some subsidiaries, such as Jingfu Company, Pingshu Company, and Xinyang Energy Company, reported negative net profits during the reporting period[52](index=52&type=chunk) - Investee company Financial Company achieved a net profit of **111.8325 million yuan** during the reporting period[52](index=52&type=chunk) [V. Other Disclosure Matters](index=16&type=section&id=V.%20Other%20Disclosure%20Matters) The company identified cyclical risks in the coal industry and technological iteration risks in new energy and materials, developing corresponding strategies, and actively implemented its "Quality Improvement, Efficiency Enhancement, and Return" action plan, making progress in safety management, coal main business, new energy and materials development, information disclosure, investor relations, shareholder returns, and corporate governance [(1) Potential Risks](index=16&type=section&id=(1)%20Potential%20Risks) The company faces cyclical risks in the coal industry (supply-demand fluctuations, price drops) and technological iteration risks in new energy and materials (uncertainty of investment recovery), and has developed strategies including stable operations, dynamic production, cost reduction, stable revenue, full industry chain synergy, scenario-based application breakthroughs, and technological innovation cooperation - Coal industry cyclical risk: Demand fluctuations due to macroeconomic conditions, policy adjustments, and energy structure transformation may lead to price drops and overcapacity[53](index=53&type=chunk) - Response strategies include: enhancing coal quality through "full coal washing," comprehensive budget management for cost control, relying on "eight special teams" to strengthen production efficiency; flexibly adjusting output and product structure based on market changes; strictly executing expense budgets and continuously implementing cost reduction initiatives; adopting a "railway-first, long-term contract-first" sales strategy to stabilize revenue[53](index=53&type=chunk) - New energy and new materials industry technological iteration risk: Rapid technological updates in sodium-ion batteries, carbon fiber, etc., pose risks of uncertain investment recovery[53](index=53&type=chunk) - Response strategies include: leveraging anthracite resource advantages to build a full industry chain; focusing on niche markets like coal mine emergency power and low-speed electric vehicles to promote batch delivery; deeply binding with Zhongke Hainan and strengthening cooperation with research institutes and universities to drive technological innovation and achievement transformation[54](index=54&type=chunk) [(2) Other Disclosure Matters](index=16&type=section&id=(2)%20Other%20Disclosure%20Matters) In the first half of 2025, the company actively implemented its "Quality Improvement, Efficiency Enhancement, and Return" action plan, achieving significant progress in safety management, optimizing coal main business, innovating new energy and materials technologies, enhancing information disclosure and investor relations, ensuring shareholder returns, and standardizing corporate governance - Strengthened safety management, with Yushupo successfully passing the national first-level standardization mine re-inspection; the company allocated **614.84 million yuan** for safety expenses this year, using **373.01 million yuan** in the first half[55](index=55&type=chunk) - Focused on the coal main business, promoting high-yield and high-efficiency operations, strengthening process control in coal washing and processing, and Yujiazhuang obtained a mineral resource exploration permit[56](index=56&type=chunk) - Significant technological achievements in new energy and new materials development, such as the "High-Power Sodium-Ion Battery Coal Mine Emergency Power System" reaching international leading levels, and Huana Xinneng being listed among the 2025 Top 10 Innovative Energy Storage Applications[57](index=57&type=chunk) - Continuously optimized information disclosure and investor relations management, publishing **46 announcements** in the first half with "zero errors," actively interacting with investors through online and offline platforms, receiving **297 investor visits**, and answering **421 phone calls**[58](index=58&type=chunk) - Firmly committed to shareholder return policy, distributing a cash dividend of **3.09 yuan per 10 shares** (including tax) to all shareholders in 2025, with a dividend payout ratio of **50.11%**, and cumulative dividends totaling **12.931 billion yuan**[60](index=60&type=chunk) - Strengthened corporate governance structure, holding **4 board meetings, 1 supervisory board meeting, and 2 general meetings of shareholders** in the first half, and enhancing the responsibility and performance capabilities of "key minorities"[61](index=61&type=chunk)[63](index=63&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=19&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers the company's corporate governance, including profit distribution plans, environmental information disclosure for its subsidiaries, and specific efforts in consolidating poverty alleviation achievements and rural revitalization [II. Profit Distribution or Capital Reserve Conversion Plan](index=19&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company did not distribute profits or convert capital reserves into share capital during the reporting period - During the reporting period, the company did not distribute profits or convert capital reserves into share capital[65](index=65&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=19&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) **Nine** of the company's subsidiaries are on the list of enterprises required to disclose environmental information by law, with query indexes provided for their respective environmental information disclosure reports - **Nine** of the company's subsidiaries are included in the list of enterprises required to disclose environmental information by law[66](index=66&type=chunk) - Environmental information disclosure reports for each enterprise can be queried through the Enterprise Environmental Information Disclosure System (Shanxi)[66](index=66&type=chunk)[67](index=67&type=chunk) [V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization](index=20&type=section&id=V.%20Specific%20Progress%20in%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization) In the first half of 2025, Huayang Shares systematically advanced poverty alleviation consolidation and rural revitalization through a "resident assistance + industrial assistance + consumption assistance" model, including dynamic monitoring to prevent relapse into poverty,慰问 activities, assistance project construction, increased industrial support, expanded employment channels, and enhanced effectiveness of consumption assistance - In terms of resident assistance, **1,000 person-times** were surveyed for dynamic monitoring to prevent relapse into poverty, identifying **50 "three-category households"** with no large-scale relapse; **406,300 yuan** in relief supplies were distributed to **2,158 households**; **8 assistance projects** were completed[68](index=68&type=chunk)[69](index=69&type=chunk) - In terms of industrial assistance, approximately **1.5 million catties** of local and surrounding agricultural products were purchased, cold storage services were provided for approximately **4.3 million catties**, and information-assisted sales of approximately **680,000 catties** of fruit were facilitated; **9 employment positions** were provided, absorbing **289 temporary workers**, generating approximately **480,000 yuan** in income[69](index=69&type=chunk) - In terms of consumption assistance, over **60 types** of agricultural products, totaling **5.5858 million catties**, were purchased; **5.6674 million catties** of various assisted agricultural products were sold, with a consumption amount of **52.4305 million yuan**[69](index=69&type=chunk) [Section V Important Matters](index=22&type=section&id=Section%20V%20Important%20Matters) This section details the fulfillment of commitments, particularly regarding related party transactions and guarantees, addresses the impact of regulatory penalties on the controlling shareholder, and outlines the progress of major construction and new energy projects [I. Fulfillment of Commitments](index=22&type=section&id=I.%20Fulfillment%20of%20Commitments) Since 2000, the company's controlling shareholder, Huayang Group, has committed to avoiding horizontal competition and ensuring the listed company's priority rights to acquire assets, businesses, or interests. Huayang Group strictly fulfilled these commitments during the reporting period - Huayang Group committed to avoiding competition with the listed company's products or businesses and granting the listed company priority rights to produce or acquire new products or technologies, and to purchase assets, businesses, or interests[71](index=71&type=chunk) - During the reporting period, Huayang Group strictly fulfilled its commitment to avoid horizontal competition[71](index=71&type=chunk) [VIII. Alleged Violations, Penalties, and Rectification of Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller](index=23&type=section&id=VIII.%20Alleged%20Violations%2C%20Penalties%2C%20and%20Rectification%20of%20Listed%20Company%2C%20Its%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company's controlling shareholder received an investigation notice and a pre-penalty notice from the CSRC, but this penalty does not involve Huayang Shares and will not affect the company's daily operations. The company will maintain market trust and shareholder rights through improved governance, strengthened internal controls, timely information disclosure, and active investor communication - The company's controlling shareholder received an investigation notice and a pre-penalty notice from the China Securities Regulatory Commission on June 25 and July 2, 2025, respectively[72](index=72&type=chunk) - The aforementioned administrative penalty does not involve Huayang Shares and will not affect the company's daily production and business activities[72](index=72&type=chunk) - The company will maintain market trust and shareholder rights by improving governance, strengthening internal controls, timely information disclosure, and actively communicating with investors[72](index=72&type=chunk) [X. Significant Related Party Transactions](index=23&type=section&id=X.%20Significant%20Related%20Party%20Transactions) The company engaged in related party transactions related to daily operations and conducted financial business, including deposits, loans, and credit facilities, with an affiliated financial company. At period-end, deposits with the affiliated financial company totaled **5.205 billion yuan**, and loans totaled **150 million yuan** [(1) Related Party Transactions Related to Daily Operations](index=23&type=section&id=(1)%20Related%20Party%20Transactions%20Related%20to%20Daily%20Operations) The company has disclosed resolutions regarding the execution of daily related party transactions for 2024 and the estimated daily related party transactions for 2025 in its interim announcements - The company disclosed the "Announcement on the Execution of Daily Related Party Transactions in 2024 and the Estimated Daily Related Party Transactions in 2025 of Shanxi Huayang Group Xinneng Co., Ltd." on April 26, 2025[73](index=73&type=chunk) [(5) Financial Business Between the Company and Affiliated Financial Companies, and Between the Company's Controlled Financial Company and Related Parties](index=24&type=section&id=(5)%20Financial%20Business%20Between%20the%20Company%20and%20Affiliated%20Financial%20Companies%2C%20and%20Between%20the%20Company's%20Controlled%20Financial%20Company%20and%20Related%20Parties) The company conducted deposit, loan, and credit facility businesses with an affiliated financial company. At period-end, deposits with the financial company totaled **5.205 billion yuan**, loans totaled **150 million yuan**, actual credit facility usage was **150 million yuan**, and entrusted loans were **3.369 billion yuan** Deposit Business with Financial Company (Unit: 10,000 yuan) | Related Party | Related Relationship | Maximum Daily Deposit Limit | Deposit Interest Rate Range | Beginning Balance | Total Deposits This Period | Total Withdrawals This Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Company | Holding subsidiary of parent company | 1,700,000.00 | 0.2%-1.9% | 572,599.94 | 4,448,400.42 | 4,500,481.91 | 520,518.44 | Loan Business with Financial Company (Unit: 10,000 yuan) | Related Party | Related Relationship | Loan Limit | Loan Interest Rate Range | Beginning Balance | Total Loans This Period | Total Repayments This Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Company | Holding subsidiary of parent company | 400,000.00 | 2.19%-3.45% | 4,000.00 | 15,000.00 | 4,000.00 | 15,000.00 | Credit Facility and Other Financial Business with Financial Company (Unit: 10,000 yuan) | Related Party | Related Relationship | Business Type | Total Amount | Actual Amount | | :--- | :--- | :--- | :--- | :--- | | Financial Company | Holding subsidiary of parent company | Credit Facility | 400,000.00 | 15,000.00 | | Financial Company | Holding subsidiary of parent company | Entrusted Loans | 336,926.00 | 336,926.00 | | Financial Company | Holding subsidiary of parent company | Issuance of Performance Guarantees | 200.00 | 200.00 | [XI. Significant Contracts and Their Fulfillment](index=26&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) The company had multiple significant guarantees during the reporting period, primarily providing joint liability guarantees for subsidiaries' bank loans, totaling **7.733 billion yuan**, representing **23.26%** of the company's net assets, with **6.905 billion yuan** for guaranteed entities with a debt-to-asset ratio exceeding **70%** [(2) Significant Guarantees Performed and Not Yet Performed During the Reporting Period](index=26&type=section&id=(2)%20Significant%20Guarantees%20Performed%20and%20Not%20Yet%20Performed%20During%20the%20Reporting%20Period) At the end of the reporting period, the company's total guarantee balance for subsidiaries was **7.733 billion yuan**, accounting for **23.26%** of its net assets. Of this, **6.905 billion yuan** was for guaranteed entities with a debt-to-asset ratio exceeding **70%**. Major guaranteed entities include Boli Company, Qiyuan Company, Yangquan Thermal Power Company, Pingshu Railway Company, and Huana Xinneng Company Company's Total Guarantee Amount (Including Guarantees for Subsidiaries) | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Guarantee Amount for Subsidiaries During Reporting Period | 192,131.28 | | Total Guarantee Balance for Subsidiaries at Period-end (B) | 773,276.60 | | Total Guarantee Amount (A+B) | 773,276.60 | | Percentage of Net Assets (%) | 23.26 | | Of which: Guarantees for Shareholders, Actual Controllers, and Their Related Parties (C) | | | Debt Guarantees for Entities with Debt-to-Asset Ratio Exceeding 70% (D) | 690,460.18 | | Total of the Above Three Guarantee Amounts (C+D+E) | 690,460.18 | - The company provided multiple joint liability guarantees for bank loans of subsidiaries such as Boli Company, Qiyuan Company, Yangquan Thermal Power Company, Pingshu Railway Company, Huachuang Optoelectronics Company, New Energy Sales Company, Huana Xinneng Company, and Huana Technology Management Company[84](index=84&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - Some guarantees were counter-guaranteed by the controlling shareholder Huayang Group with mining rights, or by subsidiaries with power tariff collection rights, land, plant, and equipment as pledges/mortgages[84](index=84&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) [XIII. Explanation of Other Significant Matters](index=31&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company's ongoing coal mine construction projects (Qiyuan Company, Boli Company) are progressing smoothly with substantial cumulative investments. Sodium-ion battery cathode and anode material projects, cell and Pack battery projects, Yujiazhuang coal mine project, and high-performance carbon fiber project are all advancing as planned, with some having completed plant construction or entered commissioning, demonstrating the company's active strategic layout in new energy and new materials [1. Progress of Coal Mine Construction Projects Under Construction](index=31&type=section&id=1.%20Progress%20of%20Coal%20Mine%20Construction%20Projects%20Under%20Construction) The Qiyuan Company coal mine construction project achieved joint trial operation on December 15, 2024, with a cumulative investment of **5.637 billion yuan**. The Boli Company coal mine construction project had a cumulative investment of **4.55 billion yuan**, completing **6,334 meters** of tunneling in the first half of 2025 - Qiyuan Company coal mine construction project, with an approved production capacity of **5 million tons/year**, achieved joint trial operation on December 15, 2024, with a cumulative investment of **5.637 billion yuan**[90](index=90&type=chunk) - Boli Company coal mine construction project, with an approved production capacity of **5 million tons/year**, had a cumulative investment of **4.55 billion yuan**, completing **6,334 meters** of tunneling in the first half of 2025[90](index=90&type=chunk) [2. Sodium-Ion Battery Cathode and Anode Material Projects](index=31&type=section&id=2.%20Sodium-Ion%20Battery%20Cathode%20and%20Anode%20Material%20Projects) The thousand-ton sodium-ion battery cathode and anode material project is completed, and the plant construction for the ten-thousand-ton project is finished, with basement wall masonry, foundation pit backfilling, exterior wall waterproofing, protective layer completed, and dormitory building main structure finished - The thousand-ton sodium-ion battery cathode and anode material project, with a total investment of approximately **130 million yuan**, has been completed[91](index=91&type=chunk) - The ten-thousand-ton sodium-ion battery cathode and anode material project, with a total investment of approximately **1.14 billion yuan**, as of the first half of 2025, has completed all plant construction, basement wall masonry, foundation pit backfilling, exterior wall waterproofing, protective layer, and the main structure of the dormitory building[91](index=91&type=chunk) [3. Sodium-Ion Battery Cell Project and Pack Battery Project](index=31&type=section&id=3.%20Sodium-Ion%20Battery%20Cell%20Project%20and%20Pack%20Battery%20Project) The sodium-ion battery cell and Pack battery projects are implemented by Shanxi Huana Xinneng Technology Co., Ltd., which operates the world's first production line for sodium-ion cells, Pack batteries, and energy storage integration, and its independently developed sodium-ion coal mine emergency power system has successfully operated and reached international leading levels - The sodium-ion battery cell project has a total investment of approximately **316 million yuan**, and the Pack battery project has a total investment of approximately **73 million yuan**, both implemented by Shanxi Huana Xinneng Technology Co., Ltd[92](index=92&type=chunk) - Huana Xinneng Company owns the world's first production lines for sodium-ion cells (**1GWh**), sodium-ion Pack batteries (**1GWh**), and energy storage integration (**1GWh**)[92](index=92&type=chunk) - The independently developed sodium-ion coal mine emergency power system has successfully operated in Jingfu Mine and Kaiyuan Mine, was selected as one of the "Top 10 Innovative Energy Storage Applications" in the International Energy Storage Innovation Competition, and has reached an overall international leading level[92](index=92&type=chunk) [4. Yujiazhuang Coal Mine Project](index=31&type=section&id=4.%20Yujiazhuang%20Coal%20Mine%20Project) In August 2024, the company successfully bid for the coal exploration right of the Yujiazhuang block in Shouyang County, Shanxi Province, with geological reserves of approximately **630 million tons**. As of June 30, 2025, the company has obtained the exploration permit for Yujiazhuang, and exploration engineering and feasibility study report preparation are progressing orderly - On August 22, 2024, the company successfully bid for the coal exploration right of the Yujiazhuang block in Shouyang County, Shanxi Province, for **6.8 billion yuan**, with geological reserves of approximately **630 million tons**[93](index=93&type=chunk) - As of June 30, 2025, the company has obtained the Yujiazhuang mineral resource exploration permit, and exploration engineering is being organized and implemented as planned, with the project feasibility study report also being prepared concurrently[94](index=94&type=chunk) [5. High-Performance Carbon Fiber Project](index=32&type=section&id=5.%20High-Performance%20Carbon%20Fiber%20Project) The high-performance carbon fiber project, with a total investment of approximately **608 million yuan**, is implemented by Shanxi Huayang Carbon Material Technology Co., Ltd. The project commenced full construction on June 15, 2024, and as of the first half of 2025, the public auxiliary workshop completed unit joint debugging, the polymerization workshop completed hot commissioning, the spinning workshop initiated wire drawing joint debugging, and the carbonization workshop continued full-line trial operation - The high-performance carbon fiber project has a total investment of approximately **608 million yuan**, implemented by the company's controlled subsidiary Shanxi Huayang Carbon Material Technology Co., Ltd[95](index=95&type=chunk) - The project commenced full construction on June 15, 2024; as of the first half of 2025, the public auxiliary workshop completed unit joint debugging, the polymerization workshop completed hot commissioning, the spinning workshop initiated wire drawing joint debugging, and the carbonization workshop continued full-line trial operation[95](index=95&type=chunk) [Section VI Share Changes and Shareholder Information](index=33&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital structure, which remained unchanged during the reporting period, and provides an overview of its shareholders, including the controlling shareholder and top ten shareholders [I. Share Capital Changes](index=33&type=section&id=I.%20Share%20Capital%20Changes) The company's total share capital and share structure remained unchanged during the reporting period [1. Table of Share Capital Changes](index=33&type=section&id=1.%20Table%20of%20Share%20Capital%20Changes) The company's total share capital and share structure remained unchanged during the reporting period - During the reporting period, the company's total share capital and share structure remained unchanged[97](index=97&type=chunk) [II. Shareholder Information](index=33&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **104,228** common shareholders. The controlling shareholder, Huayang New Materials Technology Group Co., Ltd., held **55.52%** of shares and pledged a portion of its holdings. The top ten shareholders included several institutional investors [(1) Total Number of Shareholders:](index=33&type=section&id=(1)%20Total%20Number%20of%20Shareholders%3A) As of the end of the reporting period, the total number of common shareholders was **104,228** - As of the end of the reporting period, the total number of common shareholders was **104,228**[98](index=98&type=chunk) [(2) Table of Top Ten Shareholders and Top Ten Circulating Shareholders (or Shareholders with No Restricted Shares) as of the End of the Reporting Period](index=33&type=section&id=(2)%20Table%20of%20Top%20Ten%20Shareholders%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Shareholders%20with%20No%20Restricted%20Shares)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, Huayang New Materials Technology Group Co., Ltd. was the controlling shareholder, holding **55.52%** of the company's shares and pledging **13.76%** of its holdings. The top ten shareholders also included institutional investors such as Hong Kong Securities Clearing Company Limited and ICBC – Guotai CSI Coal ETF Top Ten Shareholders' Holdings (As of Period-end) | Shareholder Name | Period-end Holding Quantity (shares) | Percentage (%) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | | Huayang New Materials Technology Group Co., Ltd. | 2,003,021,367 | 55.52 | Pledged | 275,559,560 | | Hong Kong Securities Clearing Company Limited | 29,676,217 | 0.82 | Unrestricted | 0 | | Industrial and Commercial Bank of China Co., Ltd. – Guotai CSI Coal Exchange Traded Open-ended Index Securities Investment Fund | 28,016,267 | 0.78 | Unrestricted | 0 | | Agricultural Bank of China Co., Ltd. – CSI 500 Exchange Traded Open-ended Index Securities Investment Fund | 26,754,512 | 0.74 | Unrestricted | 0 | | Guoxin Securities Co., Ltd. | 22,668,911 | 0.63 | Unrestricted | 0 | - Huayang New Materials Technology Group Co., Ltd. pledged **275,559,560 shares**, accounting for **13.76%** of its total holdings in the company and **7.64%** of the company's total share capital[101](index=101&type=chunk) [Section VII Bond-Related Information](index=36&type=section&id=Section%20VII%20Bond-Related%20Information) This section details the company's issuance of multiple tranches of technology innovation perpetual corporate bonds to professional investors, totaling **6 billion yuan**, with interest rates ranging from **2.51% to 2.95%**, none of which had their options exercised. It also covers the company's debt structure and key financial indicators related to debt [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=36&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company issued multiple tranches of technology innovation perpetual corporate bonds to professional investors, totaling **6 billion yuan**, with interest rates between **2.51% and 2.95%**, none of which had their options exercised. These bonds were classified as innovation-driven enterprise issuers. At period-end, the company's consolidated interest-bearing debt balance was **25.993 billion yuan**, a year-on-year change of **17.26%** [(1) Corporate Bonds (Including Enterprise Bonds)](index=36&type=section&id=(1)%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)) The company issued multiple tranches of technology innovation perpetual corporate bonds to professional investors, totaling **6 billion yuan**, with interest rates between **2.51% and 2.95%**, none of which had their renewal, deferred interest payment, or redemption options exercised [1. Basic Information of Corporate Bonds](index=36&type=section&id=1.%20Basic%20Information%20of%20Corporate%20Bonds) The company issued five tranches of perpetual corporate bonds to professional investors, totaling **6 billion yuan**, with interest rates ranging from **2.51% to 2.95%**, all listed and traded on the Shanghai Stock Exchange Basic Information of Corporate Bonds (As of Period-end) | Bond Name | Abbreviation | Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance (billion yuan) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 Publicly Issued Technology Innovation Perpetual Corporate Bonds (Tranche 1) to Professional Investors | Huayang YK01 | 240807.SH | 2024-3-25 | 2024-3-27 | 2026-3-27 | 20.00 | 2.88 | Shanghai Stock Exchange | | 2024 Publicly Issued Technology Innovation Perpetual Corporate Bonds (Tranche 2) to Professional Investors | Huayang YK02 | 240929.SH | 2024-4-18 | 2024-4-22 | 2026-4-22 | 10.00 | 2.57 | Shanghai Stock Exchange | | 2024 Publicly Issued Perpetual Corporate Bonds (Tranche 1) (Type 1) to Professional Investors | 24 Huayang Y1 | 241770.SH | 2024-10-22 | 2024-10-24 | 2026-10-24 | 5.00 | 2.51 | Shanghai Stock Exchange | | 2024 Publicly Issued Perpetual Corporate Bonds (Tranche 1) (Type 2) to Professional Investors | 24 Huayang Y2 | 241771.SH | 2024-10-22 | 2024-10-24 | 2027-10-24 | 10.00 | 2.95 | Shanghai Stock Exchange | | 2024 Publicly Issued Perpetual Corporate Bonds (Tranche 2) (Type 2) to Professional Investors | 24 Huayang Y4 | 241972.SH | 2024-11-21 | 2024-11-25 | 2027-11-25 | 15.00 | 2.71 | Shanghai Stock Exchange | [2. Triggering and Execution of Company or Investor Option Clauses and Investor Protection Clauses](index=37&type=section&id=2.%20Triggering%20and%20Execution%20of%20Company%20or%20Investor%20Option%20Clauses%20and%20Investor%20Protection%20Clauses) During the reporting period, none of the company's perpetual corporate bonds had their renewal, deferred interest payment, or redemption options exercised, nor were any investor protection clauses triggered - Bonds such as Huayang YK01, Huayang YK02, 24 Huayang Y1, 24 Huayang Y2, and 24 Huayang Y4 all include issuer renewal options, deferred interest payment options, issuer redemption options, as well as issuer credit maintenance commitments and remedy clauses[106](index=106&type=chunk) - During the reporting period, none of the aforementioned bonds had any options exercised[106](index=106&type=chunk) [(3) Other Matters to be Disclosed for Special Category Bonds](index=37&type=section&id=(3)%20Other%20Matters%20to%20be%20Disclosed%20for%20Special%20Category%20Bonds) The company's multiple tranches of perpetual corporate bonds were classified as innovation-driven enterprise issuers, all in their first cycle during the reporting period, with no interest rate step-ups or deferred interest, and were accounted for as equity instruments [3. The Company as an Issuer of Perpetual Corporate Bonds](index=37&type=section&id=3.%20The%20Company%20as%20an%20Issuer%20of%20Perpetual%20Corporate%20Bonds) Huayang YK01, Huayang YK02, 24 Huayang Y1, 24 Huayang Y2, and 24 Huayang Y4 are all perpetual corporate bonds issued by the company, all in their first cycle during the reporting period, with fixed interest rates, no deferred interest or mandatory interest payments, and are accounted for as other equity instruments - Huayang YK01, Huayang YK02, 24 Huayang Y1, 24 Huayang Y2, and 24 Huayang Y4 are all perpetual corporate bonds, all in their first cycle during the reporting period, with fixed interest rates[108](index=108&type=chunk)[109](index=109&type=chunk) - All perpetual bonds did not involve deferred interest or mandatory interest payments during the reporting period and were accounted for as other equity instruments[108](index=108&type=chunk)[109](index=109&type=chunk) [7. The Company as an Issuer of Technology Innovation Corporate Bonds or Innovation and Entrepreneurship Corporate Bonds](index=39&type=section&id=7.%20The%20Company%20as%20an%20Issuer%20of%20Technology%20Innovation%20Corporate%20Bonds%20or%20Innovation%20and%20Entrepreneurship%20Corporate%20Bonds) The company's Huayang YK01 and Huayang YK02 bonds were classified as innovation-driven enterprise issuers, but the use of proceeds does not involve disclosure of progress in innovation projects or the effect of promoting technological innovation - The issuer category for Huayang YK01 and Huayang YK02 bonds is "innovation-driven enterprise"[111](index=111&type=chunk) - These bonds do not involve the progress of innovation projects, and the use of proceeds does not involve the effect of promoting technological innovation[111](index=111&type=chunk) [(4) Important Matters Related to Corporate Bonds During the Reporting Period](index=39&type=section&id=(4)%20Important%20Matters%20Related%20to%20Corporate%20Bonds%20During%20the%20Reporting%20Period) At the end of the reporting period, the company's consolidated non-operating receivables and intercompany borrowings totaled **569 million yuan**, not exceeding **10%** of consolidated net assets. Consolidated interest-bearing debt was **25.993 billion yuan**, a year-on-year change of **17.26%**, with bank loans accounting for **99%** [1. Non-Operating Receivables and Intercompany Borrowings](index=40&type=section&id=1.%20Non-Operating%20Receivables%20and%20Intercompany%20Borrowings) At the end of the reporting period, the company's consolidated non-operating receivables and intercompany borrowings totaled **569 million yuan**, accounting for **1.50%** of consolidated net assets, not exceeding **10%** Non-Operating Receivables and Intercompany Borrowings Balance (Period-end) | Unit Name | Period-end Balance (yuan) | Nature of Payment | Age | Impairment Provision Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Yangquan Coal Industry (Group) Pingding Taichang Coal Industry Co., Ltd. | 547,055,470.20 | Borrowing from former controlled subsidiary | Over 5 years | 547,055,470.20 | | China Railway Taiyuan Bureau Group Co., Ltd. - Shanxi Joint Venture Railway Transportation Dispatching Coordination Center Project Management Department | 22,000,000.00 | Dispatching Coordination Center Project Funds | Over 5 years | 22,000,000.00 | | Total | 569,055,470.20 | | | 569,055,470.20 | - At the end of the reporting period, the proportion of unrecovered consolidated non-operating receivables and intercompany borrowings to consolidated net assets was **1.50%**, not exceeding **10%**[114](index=114&type=chunk) [2. Liability Status](index=40&type=section&id=2.%20Liability%20Status) At the end of the reporting period,

[Important Notice](index=2&type=section&id=Important%20Notice) The board, supervisory board, and senior management guarantee report truthfulness; report is unaudited, no profit distribution, and no related party fund occupation or illegal guarantees - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[3](index=3&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - No profit distribution or capital reserve conversion to share capital will be made in this reporting period[6](index=6&type=chunk) - The company has no non-operating occupation of funds by controlling shareholders and other related parties, nor external guarantees provided in violation of decision-making procedures[8](index=8&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key terms, reporting period, financial indicators, product terms, exchanges, and currency units for consistent understanding - The reporting period refers to **January 1, 2025, to June 30, 2025**[13](index=13&type=chunk) - **EBITDA** refers to Earnings Before Interest, Taxes, Depreciation, and Amortization[13](index=13&type=chunk) - A-shares refer to ordinary shares of the company with a par value of **RMB 1** per share listed on the Shanghai Stock Exchange, and H-shares refer to foreign shares listed on the Hong Kong Stock Exchange[13](index=13&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides company basic information, contact details, stock overview, and key financial data including revenue, profit, EPS, and non-recurring items [I. Company Information](index=5&type=section&id=I.%20Company%20Information) The company's Chinese name is Huaxin Cement Co., Ltd., abbreviated as Huaxin Cement, with Li Yeqing as legal representative - Company Chinese Name: **Huaxin Cement Co., Ltd.**, Chinese Abbreviation: **Huaxin Cement**[15](index=15&type=chunk) - Company Legal Representative: **Li Yeqing**[15](index=15&type=chunk) [II. Contact Person and Contact Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) Board Secretary Ye Jiaxing and Securities Representative Wang Xiaoqiong share contact details and email investor@huaxincem.com - Board Secretary: **Ye Jiaxing**; Securities Affairs Representative: **Wang Xiaoqiong**[16](index=16&type=chunk) - Contact Address: **Building B, Huaxin Building, No. 426 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan, Hubei Province**[16](index=16&type=chunk) - Email: **investor@huaxincem.com**[16](index=16&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) Company's registered address is Huangshi, office in Wuhan, and website is www.huaxincem.com - Company Registered Address: **No. 600 Daqi Avenue East, Huangshi City, Hubei Province**[17](index=17&type=chunk) - Company Office Address: **Building B, Huaxin Building, No. 426 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan, Hubei Province**[17](index=17&type=chunk) - Company Website: **www.huaxincem.com**[17](index=17&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) Information is disclosed in China Securities Journal and www.sse.com.cn, with reports stored at the Board Secretary's Office - Information Disclosure Newspaper: **China Securities Journal**; Website Address: **www.sse.com.cn**[18](index=18&type=chunk) - Semi-annual Report Storage Locations: **Board Secretary's Office and Securities Department**[18](index=18&type=chunk) [V. Company Stock Overview](index=5&type=section&id=V.%20Company%20Stock%20Overview) Company's A-shares are listed on SSE (600801) and H-shares on HKEX (06655) Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-shares | SSE | Huaxin Cement | 600801 | | H-shares | HKEX | Huaxin Cement | 06655 | [VII. Company's Main Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Company%27s%20Main%20Accounting%20Data%20and%20Financial%20Indicators) Operating revenue slightly decreased, but total profit and net profit significantly grew, with improved EPS and ROE, partly due to non-recurring gains [(I) Main Accounting Data](index=6&type=section&id=%28I%29%20Main%20Accounting%20Data) Operating revenue decreased by 1.17%, while total profit and net profit attributable to shareholders increased by over 50% Main Accounting Data | Main Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,046,640,187 | 16,237,373,654 | -1.17 | | Total Profit | 2,024,928,214 | 1,343,287,311 | 50.74 | | Net Profit Attributable to Shareholders of Listed Company | 1,103,484,806 | 730,553,374 | 51.05 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 1,070,009,720 | 680,295,259 | 57.29 | | Net Cash Flow from Operating Activities | 1,623,794,304 | 1,730,584,063 | -6.17 | | Net Assets Attributable to Shareholders of Listed Company | 30,488,032,523 | 30,291,427,176 | 0.65 | | Total Assets | 70,872,821,162 | 69,512,689,187 | 1.96 | [(II) Main Financial Indicators](index=6&type=section&id=%28II%29%20Main%20Financial%20Indicators) Basic and diluted EPS significantly increased, with weighted average ROE improving by over 1 percentage point Main Financial Indicators | Main Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.53 | 0.35 | 52.03 | | Diluted Earnings Per Share (RMB/share) | 0.52 | 0.35 | 48.57 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (RMB/share) | 0.51 | 0.33 | 54.55 | | Weighted Average Return on Net Assets (%) | 3.57 | 2.49 | Increased by 1.08 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 3.47 | 2.32 | Increased by 1.15 percentage points | [IX. Non-Recurring Gains and Losses and Amounts](index=6&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses were **RMB 33.48 million**, mainly from government subsidies and receivable impairment reversals Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Disposal gains/losses of non-current assets | -1,416,744 | | Government subsidies recognized in current profit/loss | 54,395,661 | | Gains/losses from changes in fair value and disposal of financial assets and liabilities | 471,938 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 3,153,787 | | Other non-operating income and expenses | -18,304,048 | | Less: Income tax impact | 6,503,665 | | Minority interest impact (after tax) | -1,678,157 | | Total | 33,475,086 | [X. Companies with Equity Incentives or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact](index=7&type=section&id=X.%20Companies%20with%20Equity%20Incentives%20or%20Employee%20Stock%20Ownership%20Plans%20May%20Choose%20to%20Disclose%20Net%20Profit%20After%20Deducting%20Share-Based%20Payment%20Impact) Net profit after deducting share-based payment impact was **RMB 1.117 billion**, a **50.59%** year-on-year increase Net Profit After Deducting Share-Based Payment Impact | Main Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 1,116,705,549 | 741,543,049 | 50.59 | [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section elaborates on the company's operating performance in the first half of 2025, including the macro environment of the building materials industry, the company's main business and products, operating model, operating results, core competitiveness, and risk response measures [I. Explanation of the Company's Industry and Main Business During the Reporting Period](index=8&type=section&id=I.%20Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company operates in the building materials industry, which is highly correlated with fixed asset investment, and has evolved into a global group covering the entire industry chain, with cement business remaining dominant [(I) The Company's Industry is Building Materials, Sub-industry is Building Materials](index=8&type=section&id=%28I%29%20The%20Company%27s%20Industry%20is%20Building%20Materials%2C%20Sub-industry%20is%20Building%20Materials) H1 2025 saw a **4.3%** drop in cement output, but prices rebounded, improving industry profitability to **RMB 15-16 billion** - In the first half of 2025, national fixed asset investment increased by **2.8%** year-on-year, with infrastructure investment growing by **4.6%** and real estate development investment decreasing by **11.2%**[27](index=27&type=chunk) - From January to June, national cumulative cement output was **815 million tons**, a year-on-year decrease of **4.3%**, with the decline narrowing compared to the same period last year[27](index=27&type=chunk) - Overall profitability of the cement industry improved in the first half, with total profit expected to be approximately **RMB 15-16 billion**[27](index=27&type=chunk) [(II) Company's Main Businesses](index=8&type=section&id=%28II%29%20Company%27s%20Main%20Businesses) The company is a global building materials group with a full industry chain, operating in 17 domestic and 20 overseas countries, with cement business revenue at **57%** and non-cement EBITDA at **44%** - The company's business covers **17** provinces/cities/autonomous regions in China and **20** overseas countries, with over **300** subsidiaries and branches[29](index=29&type=chunk) - As of June 30, 2025, the company has a cement production capacity of **126 million tons/year**, aggregates of **300 million tons/year**, and waste disposal of **18.24 million tons/year**[30](index=30&type=chunk) - As of June 30, 2025, cement business revenue accounted for **57%** of the company's total operating revenue, and non-cement businesses contributed **44%** of EBITDA[30](index=30&type=chunk) [(III) Company's Main Products](index=8&type=section&id=%28III%29%20Company%27s%20Main%20Products) Main products include cement, concrete, aggregates, and low-carbon materials, with extensive domestic and overseas production networks and overseas operational cement grinding capacity reaching **24.7 million tons/year** - The company's domestic cement production bases are located in **9** provinces/cities, including Hubei, Hunan, Yunnan, Chongqing, Sichuan, Guizhou, Tibet, Guangdong, and Henan[31](index=31&type=chunk) - The company has established production bases in **12** overseas countries, including Tajikistan and Kyrgyzstan, with overseas operational cement grinding capacity reaching **24.7 million tons/year**[31](index=31&type=chunk) - The company actively develops various new low-carbon building materials, such as ultra-high performance concrete (UHPC), mortar, and new wall materials[33](index=33&type=chunk) [(IV) Company's Operating Model](index=9&type=section&id=%28IV%29%20Company%27s%20Operating%20Model) The company uses a three-segment structure, produces based on sales, balances direct/distribution sales, and employs a "centralized procurement + smart" procurement strategy - The company's organizational structure is divided into three segments: "business operations," "business management," and "business support," to enhance management and decision-making efficiency[34](index=34&type=chunk) - The production model is based on sales, the sales model balances direct sales and distribution, and procurement implements a "centralized procurement + smart" strategy[34](index=34&type=chunk) [II. Discussion and Analysis of Operating Performance](index=9&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) H1 2025 revenue declined **1.17%** to **RMB 16.046 billion**, but net profit rose **51.05%** to **RMB 1.103 billion** due to price hikes, overseas growth, and cost control 2025 H1 Operating Performance Overview | Indicator | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | RMB 16.046 billion | -1.17% | | Net Profit Attributable to Parent Company Shareholders | RMB 1.103 billion | +51.05% | | Cement and Commercial Clinker Sales Volume | 27.7366 million tons | -2.63% | | Overseas Cement and Commercial Clinker Sales Volume | 8.3884 million tons | +10.41% | | Aggregates Sales | 76.0526 million tons | +6.33% | | Concrete Sales | 13.2480 million cubic meters | -9.88% | 2025 H1 Segment Operating Revenue and Gross Profit Margin | Business Type | Operating Revenue (RMB billion) | YoY Change | Gross Profit Margin (%) | Prior Year Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Cement Business | 9.152 | +5.60% | 29.74 | 20.71 | | Domestic Cement Business | 5.024 | -1.26% | - | - | | Overseas Cement Business | 4.128 | +15.37% | - | - | | Aggregates Business | 2.763 | -6.72% | 47.91 | 47.41 | | Concrete Business | 3.457 | -12.33% | 13.12 | 11.61 | | Comprehensive Gross Profit Margin | - | - | 28.92 | 23.65 | - Overseas multi-business development continued to make progress, with projects in Zimbabwe, Zambia, South Africa, and Tanzania completed and put into operation, and the acquisition of **100%** equity of Embu Aggregates Company in Brazil completed, marking the first entry into the Americas market[37](index=37&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=10&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) As one of "China's Top 500 Most Valuable Brands," the company boasts a long history and profound cultural heritage, further consolidating its scale, green development, innovation, brand, quality, and management advantages - The company was founded in **1907**, and is one of "China's Top 500 Most Valuable Brands" large enterprise groups[39](index=39&type=chunk) - The company's core competitiveness includes scale and complete industry chain, green and low-carbon development, technological innovation, trade name and brand, product quality, strategic layout, intelligent management, and professional management team advantages[39](index=39&type=chunk) [IV. Main Operating Performance During the Reporting Period](index=11&type=section&id=IV.%20Main%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes financial statement changes, asset/liability status, investments, and major holding/participating companies, showing profit growth despite revenue decline [(I) Analysis of Main Business](index=11&type=section&id=%28I%29%20Analysis%20of%20Main%20Business) Revenue decreased **1.17%**, costs decreased **8%**, while total profit increased significantly; investment cash flow outflow increased due to M&A Financial Statement Item Variation Analysis | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,046,640,187 | 16,237,373,654 | -1.17 | | Operating Cost | 11,405,577,296 | 12,396,833,893 | -8 | | Selling Expenses | 762,586,412 | 787,871,075 | -3.21 | | Administrative Expenses | 939,872,641 | 908,113,338 | 3.5 | | Financial Expenses | 437,166,210 | 399,954,782 | 9.3 | | R&D Expenses | 72,224,935 | 70,954,352 | 1.79 | | Net Cash Flow from Operating Activities | 1,623,794,304 | 1,730,584,063 | -6.17 | | Net Cash Flow from Investment Activities | -2,143,578,153 | -1,178,576,055 | -81.88 | | Net Cash Flow from Financing Activities | 90,949,808 | -1,083,480,073 | 108.39 | - The change in net cash flow from investment activities was primarily due to increased enterprise acquisition expenditures[40](index=40&type=chunk) - The change in net cash flow from financing activities was primarily due to reduced maturing debt[40](index=40&type=chunk) [(III) Analysis of Assets and Liabilities](index=11&type=section&id=%28III%29%20Analysis%20of%20Assets%20and%20Liabilities) Total assets grew **1.96%**; goodwill increased **48.78%** due to overseas M&A; short-term borrowings decreased, and bonds payable increased Asset and Liability Status Changes | Item Name | Current Period End (RMB) | % of Total Assets (Current Period End) | Prior Year End (RMB) | % of Total Assets (Prior Year End) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,675,259 | - | 31,704,908 | 0.05 | -94.72 | Related financial products liquidated | | Notes Receivable | 123,020,139 | 0.17 | 202,597,711 | 0.29 | -39.28 | Increased endorsement of notes | | Prepayments | 453,238,991 | 0.64 | 314,887,975 | 0.45 | 43.94 | Increased advance payments for goods and services | | Other Receivables | 787,055,227 | 1.11 | 1,237,502,508 | 1.78 | -36.40 | Recovery of asset disposal proceeds | | Goodwill | 1,798,800,610 | 2.54 | 1,209,007,806 | 1.74 | 48.78 | Increased due to overseas acquisitions | | Short-term Borrowings | 137,579,445 | 0.19 | 296,807,055 | 0.43 | -53.65 | Debt structure adjustment | | Employee Compensation Payable | 196,045,620 | 0.28 | 280,892,309 | 0.40 | -30.21 | Payment of prior year's performance bonuses | | Other Payables | 1,417,172,772 | - | 1,011,487,419 | 1.46 | 40.11 | H-share dividends awaiting payment after distribution | | Bonds Payable | 3,543,705,234 | - | 2,445,745,035 | 3.52 | 44.89 | New issuance of RMB 1.1 billion high-growth industrial bonds | | Special Reserves | 68,837,903 | 0.10 | 51,893,030 | 0.07 | 32.65 | Increased safety production fee balance | - Overseas assets amounted to **RMB 14,739,822,415**, accounting for **19.2%** of total assets[43](index=43&type=chunk) Restricted Assets at Period End | Item | Book Value at Period End (RMB) | | :--- | :--- | | Monetary Funds | 913,075,307 | | Fixed Assets | 5,039,418 | | Intangible Assets | 3,409,197 | | Total | 921,523,922 | [(IV) Analysis of Investment Status](index=12&type=section&id=%28IV%29%20Analysis%20of%20Investment%20Status) Other equity investments slightly increased, long-term equity investments stable, and trading financial assets significantly decreased Overall Analysis of External Equity Investments | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 945,621,616 | 934,524,059 | 1.19 | | Other | 1,675,259 | 31,704,908 | -94.72 | | Long-term Equity Investments | 583,078,169 | 584,752,454 | -0.29 | Financial Assets Measured at Fair Value | Asset Category | Balance at Period Start (RMB) | Fair Value Change Gains/Losses in Current Period (RMB) | Purchases in Current Period (RMB) | Sales/Redemptions in Current Period (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 38,143,738 | 2,128,471 | - | - | 39,983,240 | | Other | 31,704,908 | 1,556,780 | 330,000,000 | 360,000,000 | 1,675,259 | | Total | 69,848,646 | 3,685,251 | 330,000,000 | 360,000,000 | 41,658,499 | [(VI) Analysis of Major Holding and Participating Companies](index=13&type=section&id=%28VI%29%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Major subsidiaries Huaxin Green Building Materials (Wuxue) and Huaxin Cement (Wuxue) were profitable; Brazil acquisition had no major impact Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaxin Green Building Materials (Wuxue) Co., Ltd. | Production and sales of aggregates | 522,500,000 | 1,558,995,359 | 1,000,784,290 | 685,249,976 | 181,870,179 | | Huaxin Cement (Wuxue) Co., Ltd. | Production and sales of cement, aggregates, concrete, wall materials | 300,000,000 | 3,351,396,769 | 1,749,344,745 | 1,032,985,955 | 327,364,888 | - During the reporting period, the company acquired ITATUBA PARTICIPAÇÕES LTDA and its subsidiaries through equity acquisition, which had no significant impact on the company's overall production, operations, and performance[52](index=52&type=chunk) [V. Other Disclosure Matters](index=13&type=section&id=V.%20Other%20Disclosure%20Matters) The company addresses risks like declining demand and rising costs through strategic reforms, and enhances value via "Quality Improvement, Efficiency Enhancement, and Return Focus" plan [(I) Potential Risks](index=13&type=section&id=%28I%29%20Potential%20Risks) The company faces risks from declining domestic cement demand, overcapacity, compliance, rising costs, and international operations/exchange rates - Risks of declining performance due to continuous decline in domestic cement demand and severe overcapacity[52](index=52&type=chunk) - Risks of safe production, energy saving and carbon reduction, environmental emission compliance, and continuously rising production costs[53](index=53&type=chunk) - Risks of international operations and exchange rate fluctuations, influenced by geopolitical factors, economic and trade disputes, and financial market volatility[53](index=53&type=chunk) - The company will address risks by promoting supply-side reform, increasing investment in safety and environmental protection, optimizing capacity, reducing costs, strengthening marketing, and hedging risks[55](index=55&type=chunk) [(II) Other Disclosure Matters](index=14&type=section&id=%28II%29%20Other%20Disclosure%20Matters) The company implements four strategies, engages investors, saw management stock increases, and approved a **40%** dividend payout for 2024 - The company is fully advancing four major strategies: "overseas multi-business development, domestic integrated synergy, carbon reduction and value-added innovation, and digital AI-driven"[56](index=56&type=chunk) - In the first half, the company conducted over **300** investor communication activities, and management purchased **195,300** shares of the company's stock through the secondary market[56](index=56&type=chunk) 2024 Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Distribution Base | 2,078,995,649 shares | | Cash Dividend Per Share (incl. tax) | RMB 0.46/share | | Total Dividends Distributed (incl. tax) | RMB 956,337,999 | | % of Net Profit Attributable to Shareholders of Listed Company | 40% | - The company strictly fulfills its information disclosure obligations in accordance with regulatory requirements, disclosing **2** periodic reports, **18** interim announcements, and **21** other online documents domestically in the first half[57](index=57&type=chunk) [Section IV Corporate Governance, Environment and Society](index=15&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) This section covers changes in directors (Luo Zhiguang retired, Olivier Milhaud elected), no semi-annual profit distribution, ongoing equity incentive plans, environmental disclosures for **59** subsidiaries, and rural revitalization efforts [I. Changes in Company Directors, Supervisors, and Senior Management](index=15&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Luo Zhiguang retired as director; Olivier Milhaud was elected non-executive director on **July 15, 2025** - Mr. Luo Zhiguang resigned as director, member of the Board Audit Committee, member of the Board Remuneration and Assessment Committee, and Chairman of the Board Governance and Compliance Committee on **June 4** due to retirement[59](index=59&type=chunk) - On **July 15, 2025**, the company elected Mr. Olivier Milhaud as a non-executive director of the Eleventh Board of Directors[59](index=59&type=chunk) [II. Profit Distribution or Capital Reserve Conversion to Share Capital Plan](index=15&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20Plan) No profit distribution or capital reserve conversion to share capital is planned for this reporting period - No profit distribution or capital reserve conversion to share capital will be made in this reporting period[60](index=60&type=chunk) [III. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact](index=15&type=section&id=III.%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures%20and%20Their%20Impact) Resolutions for the **2024** and **2025** core employee stock ownership plans were approved, continuing incentive measures - The company approved the resolution on the grant results of the "**Second Phase (2024) Core Employee Stock Ownership Plan of the 2023-2025 Core Employee Stock Ownership Plan**"[61](index=61&type=chunk) - The company approved the resolution on the "**Third Phase (2025) Core Employee Stock Ownership Plan of the 2023-2025 Core Employee Stock Ownership Plan**"[61](index=61&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=16&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) **59** enterprises are on the environmental disclosure list, with reports accessible via the company website - The company has **59** enterprises included in the list of enterprises required to disclose environmental information by law[63](index=63&type=chunk) - Huaxin Cement Co., Ltd.'s environmental information disclosure report can be accessed at **https://www.huaxincem.com/shehuizeren/shehuizerenbaogao.html**[63](index=63&type=chunk) [V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=17&type=section&id=V.%20Specific%20Progress%20in%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20etc.) The company actively supports rural revitalization through various assistance programs, enhancing local development capabilities - The company actively responds to the national rural revitalization strategy through multi-dimensional precise assistance measures such as village-based assistance, community co-construction, agricultural support, educational assistance, and material donations[65](index=65&type=chunk) - The company effectively enhances local residents' self-development capabilities and stimulates endogenous vitality in rural areas through industrial drive and educational empowerment[65](index=65&type=chunk) [Section V Important Matters](index=18&type=section&id=Section%20V%20Important%20Matters) This section covers no unfulfilled commitments or illegal related party transactions/guarantees, a significant arbitration case with Moncement Building Materials LLC (**USD 77.07 million**), and the completion of Holcim Nigeria asset acquisition [I. Fulfillment of Commitments](index=18&type=section&id=I.%20Fulfillment%20of%20Commitments) No commitments were fulfilled by the company or related parties during the reporting period - No fulfillment of commitments during the reporting period[67](index=67&type=chunk) [VII. Major Litigation and Arbitration Matters](index=19&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) A **USD 77.07 million** arbitration with Moncement Building Materials LLC is awaiting ruling, with **RMB 40 million** estimated liability Major Litigation and Arbitration Matters | Plaintiff (Applicant) | Defendant (Respondent) | Type of Litigation/Arbitration | Amount Involved in Litigation/Arbitration (USD) | Whether Estimated Liabilities Formed and Amount (RMB) | Progress of Litigation/Arbitration | | :--- | :--- | :--- | :--- | :--- | :--- | | Moncement Building Materials LLC | Huaxin Cement Co., Ltd. | Arbitration | 77.0696 million | Yes, 40 million | Hearing held on March 22-23, 25-28, 2024, awaiting arbitration | [X. Major Related Party Transactions](index=20&type=section&id=X.%20Major%20Related%20Party%20Transactions) The company completed the equity transfer of Holcim Nigeria assets on **August 29, 2025**, bringing target companies into consolidation scope - The company completed the equity transfer of Holcim Nigeria assets on **August 29, 2025**[70](index=70&type=chunk) - The target companies Caricement B.V. and Davis Peak Holdings Limited, as well as the ultimate target company Lafarge Africa Plc, will be included in the company's consolidated financial statements[70](index=70&type=chunk) - The buyer in this transaction will make a tender offer to other shareholders of the ultimate target company[70](index=70&type=chunk) [XI. Major Contracts and Their Performance](index=22&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) No external guarantees were made, but total outstanding guarantees to subsidiaries were **RMB 11.116 billion**, representing **31.75%** of net assets Company's Total Guarantees | Indicator | Amount (RMB) | | :--- | :--- | | Total guarantees provided to subsidiaries during the reporting period | -147,701,974 | | Total outstanding guarantees to subsidiaries at period-end (B) | 11,116,207,818 | | Total Guarantees (A+B) | 11,116,207,818 | | % of Total Guarantees to Company's Net Assets | 31.75 | | Debt guarantees provided for guaranteed parties with asset-liability ratio exceeding 70% (D) | 7,691,979,984 | [Section VI Share Changes and Shareholder Information](index=23&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details unchanged share capital, **45,661** ordinary shareholders, HKSCC Nominees as the largest shareholder (**35.34%**), and secondary market share increases by key management [I. Share Capital Changes](index=23&type=section&id=I.%20Share%20Capital%20Changes) The company's total share capital and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total share capital and share capital structure remained unchanged[78](index=78&type=chunk) [II. Shareholder Information](index=23&type=section&id=II.%20Shareholder%20Information) Total ordinary shareholders were **45,661**; HKSCC Nominees Limited was the largest shareholder with **35.34%** - Total number of ordinary shareholders at the end of the reporting period: **45,661**[79](index=79&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | HKSCC Nominees Limited | 734,719,819 | 35.34 | Overseas Legal Person | | HOLCHIN B.V. | 451,333,201 | 21.71 | Overseas Legal Person | | Huaxin Group Co., Ltd. | 338,060,739 | 16.26 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 56,903,205 | 2.74 | Overseas Legal Person | [III. Information on Directors, Supervisors, and Senior Management](index=25&type=section&id=III.%20Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Key management, including Li Yeqing and Chen Qian, increased their company stock holdings via the secondary market Shareholding Changes of Current and Resigned Directors, Supervisors, and Senior Management During the Reporting Period | Name | Position | Shares Held at Period Start (shares) | Shares Held at Period End (shares) | Change in Shares During Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yeqing | Director, President | 1,407,930 | 1,537,930 | 130,000 | Secondary market increase | | Chen Qian | Vice President, CFO | 200,000 | 220,000 | 20,000 | Secondary market increase | | Xu Gang | Vice President | 391,300 | 407,900 | 16,600 | Secondary market increase | | Ye Jiaxing | Vice President, Board Secretary | 244,225 | 272,925 | 28,700 | Secondary market increase | [Section VII Bond-Related Information](index=26&type=section&id=Section%20VII%20Bond-Related%20Information) This section details the basic information, use of raised funds, and progress of special bond categories for the company's various corporate bonds and non-financial enterprise debt financing instruments, showing improved interest coverage ratios [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=26&type=section&id=I.%20Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company issued multiple corporate bonds and debt instruments; consolidated interest-bearing debt was **RMB 19.803 billion**, with improved interest coverage [(I) Corporate Bonds (Including Enterprise Bonds)](index=26&type=section&id=%28I%29%20Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29) Multiple corporate bonds were issued, including overseas, low-carbon, and tech innovation bonds, with varying rates and maturities Corporate Bond Basic Information | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (RMB 100 million) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Overseas Bond Issued in 2020 | HXCEME | XS2256737722 | Nov 19, 2020 | Nov 18, 2025 | 20 | 2.25 | SGX | | Corporate Bond Publicly Issued to Professional Investors in 2022 (Low-Carbon Transition-Linked Bond) (Tranche 1) (Type 2) | 22 Huaxin 02 | 137545.SH | Jul 15, 2022 | Jul 19, 2027 | 4 | 3.39 | SSE | | Technology Innovation Corporate Bond Publicly Issued to Professional Investors in 2024 (Tranche 1) | 24 Huaxin K1 | 241419.SH | Aug 12, 2024 | Aug 14, 2029 | 11 | 2.49 | SSE | | Corporate Bond Publicly Issued to Professional Investors in 2022 (Low-Carbon Transition-Linked Bond) (Tranche 1) (Type 1) | 22 Huaxin 01 | 137544.SH | Jul 15, 2022 | Jul 19, 2025 | 5 | 2.99 | SSE | | "Belt and Road" Technology Innovation Corporate Bond Publicly Issued to Professional Investors in 2023 (Tranche 1) (Type 1) | 23 Huaxin K1 | 240065.SH | Dec 1, 2023 | Dec 5, 2026 | 8 | 3.12 | SSE | | "Belt and Road" Technology Innovation Corporate Bond Publicly Issued to Professional Investors in 2025 (High-Growth Industrial Bond) (Tranche 1) | 25 Huaxin K1 | 242246.SH | Jan 9, 2025 | Jan 13, 2030 | 11 | 2.14 | SSE | [(II) Corporate Bond Raised Funds Utilization](index=28&type=section&id=%28II%29%20Corporate%20Bond%20Raised%20Funds%20Utilization) The **RMB 1.1 billion** 25 Huaxin K1 bond proceeds were used for working capital and "Belt and Road" acquisitions, which are performing well Raised Funds Basic Information | Bond Code | Bond Abbreviation | Is it a Special Bond? | Specific Type of Special Bond | Total Raised Funds (RMB 100 million) | Raised Funds Balance at Period End (RMB 100 million) | | :--- | :--- | :--- | :--- | :--- | :--- | | 242246.SH | 25 Huaxin K1 | Yes | Belt and Road Bond, Technology Innovation Bond, High-Growth Industrial Bond | 11 | 11 | Actual Use of Raised Funds | Bond Code | Bond Abbreviation | Actual Amount of Raised Funds Used (RMB 100 million) | Amount for Supplementing Working Capital (RMB 100 million) | Amount for Equity Investment, Debt Investment, or Asset Acquisition (RMB 100 million) | | :--- | :--- | :--- | :--- | :--- | | 242246.SH | 25 Huaxin K1 | 11 | 3.30 | 7.70 | - The acquisition project funded by the **25 Huaxin K1** bond completed equity transfer on **March 17, 2025**, and generated operating revenue of **RMB 156 million** and net profit of **RMB 20.87 million** in the second quarter[94](index=94&type=chunk) [(III) Other Matters to be Disclosed for Special Bonds](index=30&type=section&id=%28III%29%20Other%20Matters%20to%20be%20Disclosed%20for%20Special%20Bonds) "Belt and Road" bonds funded overseas investments; low-carbon bond KPIs were met, avoiding coupon rate adjustment - Part of the **23 Huaxin K1** bond's raised funds were used to invest in Natal Portland Cement Company (Pty) Ltd. in South Africa, which has become a wholly-owned subsidiary of the company[96](index=96&type=chunk) - Part of the **25 Huaxin K1** bond's raised funds were used to invest in ITATUBA PARTICIPAÇÕES LTDA and EMBU S.A. ENGENHARIA E COMÉRCIO in Brazil, strategically expanding into emerging potential markets[98](index=98&type=chunk) - The key performance indicators for the **22 Huaxin 02** low-carbon transition-linked corporate bond have been met, with unit clinker carbon emissions of **809.19 kgCO2/t** in 2024, a reduction of **36.61 kgCO2/t** from the baseline, achieving a total carbon emission reduction of approximately **2.2585 million tons**[105](index=105&type=chunk) [(IV) Important Matters Related to Corporate Bonds During the Reporting Period](index=33&type=section&id=%28IV%29%20Important%20Matters%20Related%20to%20Corporate%20Bonds%20During%20the%20Reporting%20Period) Non-operating receivables were **RMB 0.587 billion** (**2%** of net assets); consolidated interest-bearing debt was **RMB 19.803 billion**, with **RMB 2 billion** overseas bonds maturing within one year - At the end of the reporting period, total outstanding non-operating receivables and intercompany loans were **RMB 587 million**, accounting for **2%** of consolidated net assets[106](index=106&type=chunk) Company's Consolidated Interest-Bearing Debt Structure | Interest-Bearing Debt Category | Due Within 1 Year (incl.) (RMB 100 million) | Due Beyond 1 Year (excl.) (RMB 100 million) | Total Amount (RMB 100 million) | % of Total Interest-Bearing Debt | | :--- | :--- | :--- | :--- | :--- | | Corporate Credit Bonds | 25.40 | 35.44 | 60.84 | 30.72 | | Bank Loans | 31.17 | 101.90 | 133.08 | 67.20 | | Non-Bank Financial Institution Loans | 1.58 | 2.54 | 4.11 | 2.08 | | Total | 58.15 | 139.88 | 198.03 | 100 | - At the end of the reporting period, the company's consolidated outstanding overseas bond balance was **RMB 2 billion**, with a principal amount of **RMB 2 billion** maturing within one year[111](index=111&type=chunk) [(V) Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market](index=35&type=section&id=%28V%29%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments%20in%20the%20Interbank%20Bond%20Market) The company issued **RMB 1 billion** of 5-year "25 Huaxin Cement MTN001 (Tech Innovation Bond)" at **2.08%** in 2025 Non-Financial Enterprise Debt Financing Instruments Basic Information | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (RMB 100 million) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaxin Cement Co., Ltd. 2025 First Tranche Technology Innovation Bond | 25 Huaxin Cement MTN001 (Tech Innovation Bond) | 102582893.IB | 2025-7-14 | 2030-7-15 | 10 | 2.08 | Interbank | | Repayment Method | Annual interest payment, principal repayment at maturity | | Investor Appropriateness Arrangement | Professional institutional investors | | Trading Mechanism | Subject to relevant regulations issued by the Interbank Lending Center | [(VII) Main Accounting Data and Financial Indicators](index=36&type=section&id=%28VII%29%20Main%20Accounting%20Data%20and%20Financial%20Indicators) Current and quick ratios improved; asset-liability ratio increased to **50.6%**; net profit (excl. non-recurring) grew **57.29%**; interest coverage ratios significantly improved Main Accounting Data and Financial Indicators | Main Indicator | Current Period End/Current Period (Jan-Jun) | Prior Year End/Prior Year Period | Change from Prior Year End/Prior Period (%) | | :--- | :--- | :--- | :--- | | Current Ratio | 0.90 | 0.87 | 3.45 | | Quick Ratio | 0.70 | 0.68 | 2.94 | | Asset-Liability Ratio (%) | 50.6% | 49.8% | Increased by 0.8 percentage points | | Net Profit (Excluding Non-Recurring Gains/Losses) | 1,070,009,720 | 680,295,259 | 57.29 | | Total Debt to EBITDA | 0.10 | 0.10 | - | | Interest Coverage Ratio | 6.71 | 4.56 | 47.15 | | Cash Interest Coverage Ratio | 8.27 | 7.55 | 9.54 | | EBITDA Interest Coverage Ratio | 10.43 | 9.80 | 6.43 | | Loan Repayment Rate (%) | 100% | 100% | - | | Interest Payment Rate (%) | 100% | 100% | - | [Section VIII Financial Report](index=37&type=section&id=Section%20VIII%20Financial%20Report) This section presents unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and equity changes, along with detailed notes on accounting policies, taxes, and specific financial items [I. Audit Report](index=37&type=section&id=I.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [II. Financial Statements](index=37&type=section&id=II.%20Financial%20Statements) This section provides consolidated and parent company balance sheets, income statements, cash flow statements, and equity changes for H1 2025 [Consolidated Balance Sheet](index=37&type=section&id=Consolidated%20Balance%20Sheet) As of **June 30, 2025**, consolidated total assets were **RMB 70.873 billion**, liabilities **RMB 35.863 billion**, and parent equity **RMB 30.488 billion** Consolidated Balance Sheet Key Data | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 70,872,821,162 | 69,512,689,187 | | Total Liabilities | 35,863,182,134 | 34,614,884,740 | | Total Owners' Equity Attributable to Parent Company | 30,488,032,523 | 30,291,427,176 | | Total Current Assets | 15,764,521,247 | 15,791,607,023 | | Total Current Liabilities | 17,597,042,515 | 18,168,904,092 | [Parent Company Balance Sheet](index=39&type=section&id=Parent%20Company%20Balance%20Sheet) As of **June 30, 2025**, parent company total assets were **RMB 32.409 billion**, liabilities **RMB 16.353 billion**, and equity **RMB 16.056 billion** Parent Company Balance Sheet Key Data | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 32,409,212,476 | 30,400,524,002 | | Total Liabilities | 16,352,888,551 | 14,694,976,691 | | Total Owners' Equity | 16,056,323,925 | 15,705,547,311 | | Total Current Assets | 13,163,529,771 | 12,110,896,656 | | Total Current Liabilities | 9,510,240,251 | 9,179,473,764 | [Consolidated Income Statement](index=41&type=section&id=Consolidated%20Income%20Statement) H1 2025 consolidated revenue was **RMB 16.047 billion** (**-1.17%**), total profit **RMB 2.025 billion** (**+50.74%**), and parent net profit **RMB 1.103 billion** (**+51.05%**) Consolidated Income Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 16,046,640,187 | 16,237,373,654 | | Total Operating Costs | 14,034,455,983 | 14,939,003,710 | | Total Profit | 2,024,928,214 | 1,343,287,311 | | Net Profit Attributable to Parent Company Shareholders | 1,103,484,806 | 730,553,374 | | Basic Earnings Per Share (RMB/share) | 0.53 | 0.35 | | Diluted Earnings Per Share (RMB/share) | 0.52 | 0.35 | [Parent Company Income Statement](index=43&type=section&id=Parent%20Company%20Income%20Statement) H1 2025 parent company revenue was **RMB 1.116 billion** (**-7.27%**), net profit **RMB 1.319 billion** (**+21.44%**), with investment income as the main source Parent Company Income Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 1,115,929,981 | 1,203,431,544 | | Total Profit | 1,314,261,641 | 1,074,591,781 | | Net Profit | 1,319,442,160 | 1,086,554,623 | | Investment Income | 1,340,340,740 | 1,122,846,395 | [Consolidated Cash Flow Statement](index=44&type=section&id=Consolidated%20Cash%20Flow%20Statement) H1 2025 operating cash flow was **RMB 1.624 billion** (**-6.17%**); investment cash flow was **RMB -2.144 billion** (due to M&A); financing cash flow turned positive Consolidated Cash Flow Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,623,794,304 | 1,730,584,063 | | Net Cash Flow from Investment Activities | -2,143,578,153 | -1,178,576,055 | | Net Cash Flow from Financing Activities | 90,949,808 | -1,083,480,073 | | Net Increase in Cash and Cash Equivalents | -462,206,328 | -546,065,554 | [Parent Company Cash Flow Statement](index=45&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) H1 2025 parent operating cash flow was **RMB 0.533 billion** (**+374.05%**); investment cash flow **RMB 0.092 billion** (**+575.99%**); financing cash flow **RMB -0.941 billion** (**-21.58%**) Parent Company Cash Flow Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 532,678,234 | 112,350,473 | | Net Cash Flow from Investment Activities | 92,428,542 | 13,671,175 | | Net Cash Flow from Financing Activities | -941,114,244 | -774,101,084 | | Net Increase in Cash and Cash Equivalents | -310,014,790 | -647,917,743 | [Consolidated Statement of Changes in Owners' Equity](index=46&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) H1 2025 consolidated owners' equity increased by **RMB 0.112 billion**, driven by comprehensive income and profit distribution Consolidated Statement of Changes in Owners' Equity Key Data | Item | 2025 H1 Period-End Balance (RMB) | 2024 H1 Period-End Balance (RMB) | | :--- | :--- | :--- | | Total Owners' Equity | 35,009,639,028 | 32,982,745,374 | | Total Owners' Equity Attributable to Parent Company | 30,488,032,523 | 28,687,519,804 | | Amount of Increase/Decrease in Current Period (decrease indicated by "-") | 111,834,581 | -312,137,068 | | Total Comprehensive Income | 1,458,238,881 | 1,187,768,486 | | Profit Distribution | -1,396,306,924 | -1,519,839,606 | [Parent Company Statement of Changes in Owners' Equity](index=48&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) H1 2025 parent company owners' equity increased by **RMB 0.351 billion**, influenced by comprehensive income and profit distribution Parent Company Statement of Changes in Owners' Equity Key Data | Item | 2025 H1 Period-End Balance (RMB) | 2024 H1 Period-End Balance (RMB) | | :--- | :--- | :--- | | Total Owners' Equity | 16,056,323,925 | 14,913,460,501 | | Amount of Increase/Decrease in Current Period (decrease indicated by "-") | 350,776,614 | 2,919,812 | | Total Comprehensive Income | 1,307,807,419 | 1,107,518,927 | | Profit Distribution | -956,337,999 | -1,101,867,695 | [III. Company Basic Information](index=50&type=section&id=III.%20Company%20Basic%20Information) Huaxin Cement, established **1993**, listed on SSE/HKEX, produces building materials; H1 2025 financial statements approved **Aug 29, 2025** - Huaxin Cement Co., Ltd. was established on **November 30, 1993**, with A-shares and H-shares respectively listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange[140](index=140&type=chunk) - The company and its subsidiaries primarily engage in the production and sale of building materials such as cement, concrete, clinker, and aggregates[140](index=140&type=chunk) - These financial statements were approved for issuance by the company's Board of Directors on **August 29, 2025**[141](index=141&type=chunk) [IV. Basis of Financial Statement Preparation](index=50&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) Financial statements prepared under PRC GAAP, Hong Kong Companies Ordinance, and Listing Rules, on a going concern basis - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations, and comply with the requirements of "**Information Disclosure Rules for Companies Issuing Securities to the Public No. 15**" as well as the Hong Kong Companies Ordinance and Listing Rules[143](index=143&type=chunk) - These financial statements are presented on a going concern basis, and management believes the company has sufficient working capital to continue as a going concern[144](index=144&type=chunk) [V. Significant Accounting Policies and Estimates](index=50&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, including revenue recognition, financial instruments, and asset impairment - The Group has formulated specific accounting policies and estimates based on its actual production and operation characteristics, mainly reflected in impairment provisions for receivables, inventory valuation methods, depreciation of fixed assets, amortization of intangible assets, and revenue recognition and measurement[145](index=145&type=chunk) - The company's accounting year runs from **January 1 to December 31** of the Gregorian calendar, and its functional currency is **RMB**[147](index=147&type=chunk)[148](index=148&type=chunk) - The company's financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[159](index=159&type=chunk) - The company's revenue recognition principle is to recognize revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[202](index=202&type=chunk) [VI. Taxation](index=66&type=section&id=VI.%20Taxation) Main tax types and rates are listed, with several subsidiaries enjoying corporate income tax incentives and VAT refunds Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income | General calculation: 13%, 6%; Simplified calculation: 3%; Overseas companies: 18%, 17%, 16%, 15%, 12%, 5% | | Corporate Income Tax | Taxable income | Overseas companies: 30%, 28%, 20%, 18%, 15%, 13%, 12.5%, 10%; Other companies: 25%, 16.5%, 15%, 12.5%, 9%, 0% | - Multiple subsidiaries of the company enjoy corporate income tax incentives for high-tech enterprises, encouraged industries in Hainan Free Trade Port, encouraged industries in the Western Development region, and third-party pollution control enterprises, with a reduced rate of **15%** or partial income tax exemption[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) - Some subsidiaries enjoy VAT immediate refund policies for comprehensive utilization products and services, with a refund ratio of **70%**[228](index=228&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=68&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) Detailed notes on consolidated balance sheet items, including monetary funds, receivables, inventories, fixed assets, goodwill, and borrowings [1. Monetary Funds](index=68&type=section&id=1.%20Monetary%20Funds) Total monetary funds were **RMB 6.670 billion**, with **RMB 1.123 billion** deposited overseas Monetary Funds Composition | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | | :--- | :--- | :--- | | Cash on Hand | 3,454,847 | 1,192,015 | | Bank Deposits | 5,753,379,156 | 6,217,848,316 | | Other Monetary Funds | 913,075,307 | 589,962,243 | | Total | 6,669,909,310 | 6,809,002,574 | | Of which: Funds Deposited Overseas | 1,122,597,481 | 1,441,956,475 | [4. Accounts Receivable](index=69&type=section&id=4.%20Accounts%20Receivable) Accounts receivable book value was **RMB 3.531 billion**, with **80.41%** due within one year; impairment provision increased by **RMB 56.52 million** Accounts Receivable Aging Disclosure | Aging | Book Balance at Period End (RMB) | Book Balance at Period Start (RMB) | | :--- | :--- | :--- | | Within 1 year (incl. 1 year) | 3,117,071,483 | 2,679,545,907 | | 1 to 2 years | 528,209,141 | 425,135,025 | | 2 to 3 years | 103,382,207 | 65,994,623 | | Over 3 years | 127,352,208 | 117,966,856 | | Less: Impairment Provision for Accounts Receivable | 344,933,602 | 318,842,528 | | Total | 3,531,081,437 | 2,969,799,883 | Disclosure by Impairment Provision Method | Category | Book Balance at Period End (RMB) | Impairment Provision (RMB) | Provision Ratio (%) | | :--- | :--- | :--- | :--- | | Individually assessed impairment provision | 105,099,259 | 95,636,736 | 91 | | Collectively assessed impairment provision | 3,770,915,780 | 249,296,866 | 7 | - The impairment provision for bad debts increased by **RMB 56,522,932** in the current period[246](index=246&type=chunk) [8. Inventories](index=75&type=section&id=8.%20Inventories) Inventory book value was **RMB 2.938 billion**, including raw materials, WIP, finished goods, and spare parts; total impairment provision was **RMB 0.196 billion** Inventory Classification | Item | Book Value at Period End (RMB) | Book Value at Period Start (RMB) | | :--- | :--- | :--- | | Raw Materials | 581,685,866 | 702,492,244 | | Work in Progress | 925,196,651 | 767,372,439 | | Finished Goods | 661,798,094 | 820,949,819 | | Spare Parts and Auxiliary Materials, etc. | 769,453,627 | 766,954,988 | | Total | 2,938,134,238 | 3,057,769,490 | - Total inventory impairment provision and contract performance cost impairment provision amounted to **RMB 195,584,071**[258](index=258&type=chunk) [13. Fixed Assets](index=78&type=section&id=13.%20Fixed%20Assets) Fixed assets book value was **RMB 28.147 billion**; original cost increased by **RMB 1.273 billion** from transfers and M&A Fixed Assets Book Value | Item | Book Value at Period End (RMB) | Book Value at Period Start (RMB) | | :--- | :--- | :--- | | Buildings and Structures | 15,620,645,210 | 15,545,575,491 | | Machinery and Equipment | 12,252,263,981 | 12,618,076,233 | | Office Equipment | 99,012,543 | 102,012,750 | | Transportation Vehicles | 175,129,848 | 132,365,100 | | Total | 28,147,051,582 | 28,398,029,574 | - The original cost of fixed assets increased by **RMB 1,273,033,109** in the current period, of which **RMB 879,306,858** was transferred from construction in progress and **RMB 356,939,906** was due to business combinations[267](index=267&type=chunk) - The company had temporarily idle fixed assets with a book value of **RMB 329,628,013**[268](index=268&type=chunk) [14. Construction in Progress](index=80&type=section&id=14.%20Construction%20in%20Progress) Construction in progress book value was **RMB 3.975 billion**, up **16.47%**, with major projects like Huangshi manufactured sand and Mozambique plant upgrade Construction in Progress Book Value | Item | Book Value at Period End (RMB) | Book Value at Period Start (RMB) | | :--- | :--- | :--- | | Construction in Progress | 3,974,544,849 | 3,412,128,279 | | Engineering Materials | 76,990,409 | 118,623,991 | | Total | 4,051,535,258 | 3,530,752,270 | - The Huaxin Huangshi Green Building Materials Billion-Ton Manufactured Sand Project has a cumulative investment of **80%** of its budget, and the Mozambique Nacala Plant Upgrade Project has a cumulative investment of **90%** of its budget[274](index=274&type=chunk) - Construction in progress increased by **RMB 1,489,388,890** in the current period, with **RMB 879,306,858** transferred to fixed assets[274](index=274&type=chunk) [17. Goodwill](index=85&type=section&id=17.%20Goodwill) Goodwill original book value was **RMB 1.969 billion**, increasing by **RMB 0.590 billion** due to ITATUBA acquisition Goodwill Original Book Value | Name of Investee or Goodwill-Forming Event | Balance at Period Start (RMB) | Increase in Current Period (formed by business combination) (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | | Natal Portland Cement Company (Pty) Ltd. | 567,704,407 | - | 567,704,407 | | ITATUBA PARTICIPAÇÕES LTDA | - | 589,792,804 | 589,792,804 | | Total | 1,379,370,972 | 589,792,804 | 1,969,163,776 | Goodwill Impairment Provision | Name of Investee or Goodwill-Forming Event | Balance at Period Start (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | | Shide Jinying Cement (Hong Kong) Co., Ltd. and its subsidiaries | 69,557,768 | 69,557,768 | | Huaxin Cement (Ezhou) Co., Ltd. | 21,492,135 | 21,492,135 | | Hainan Xinhongda Building Materials Co., Ltd. | 79,313,263 | 79,313,263 | | Total | 170,363,166 | 170,363,166 | [29. Long-term Borrowings](index=92&type=section&id=29.%20Long-term%20Borrowings) Total long-term borrowings were **RMB 10.190 billion**, with annual interest rates from **1.35% to 19.53%** due to overseas investments Long-term Borrowings Classification | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | | :--- | :--- | :--- | | Guaranteed Borrowings | 8,682,243,181 | 8,591,443,197 | | Credit Borrowings | 4,487,044,762 | 3,969,692,679 | | Guaranteed Borrowings Due Within One Year | 2,279,594,824 | 2,639,427,349 | | Credit Borrowings Due Within One Year | 700,056,745 | 414,937,816 | | Total | 10,189,636,374 | 9,598,770,711 | - As of **June 30, 2025**, the annual interest rate for long-term borrowings ranged from **1.35% to 19.53%**, with higher interest rates mainly due to the overall higher interest rate levels in some countries with overseas investments[312](index=312&type=chunk) [30. Bonds Payable](index=93&type=section&id=30.%20Bonds%20Payable) Total bonds payable were **RMB 3.544 billion**, up **44.89%**, including a new **RMB 1.1 billion** issuance; **RMB 2.540 billion** due within one year Bonds Payable Information | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | | :--- | :--- | :--- | | Overseas Bond Issued in 2020 | - | - | | Corporate Bond Issued in 2022 (Low-Carbon Transition-Linked Bond) (Tranche 1) | 399,685,909 | 399,823,745 | | Subsidiary Preferred Shares | 149,151,403 | 149,725,053 | | Corporate Bond Issued in 2023 | 798,700,976 | 799,354,497 | | Corporate Bond Issued in 2024 | 1,098,030,772 | 1,096,841,740 | | Corporate Bond Issued in 2025 | 1,098,136,175 | - | | Total | 3,543,705,234 | 2,445,745,035 | - A new issuance of **RMB 1.1 billion** of the 2025 "Belt and Road" Technology Innovation Corporate Bond (High-Growth Industrial Bond) (Tranche 1) was made in the current period[315](index=315&type=chunk) - Bonds payable due within one year amounted to **RMB 2,540,196,941**[309](index=309&type=chunk) [44. Operating Revenue and Operating Costs](index=100&type=section&id=44.%20Operating%20Revenue%20and%20Operating%20Costs) H1 2025 revenue **RMB 16.047 billion** (**-1.17%**), cost **RMB 11.406 billion** (**-8%**); main business revenue **RMB 15.937 billion** Operating Revenue and Operating Costs | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 15,936,934,688 | 11,333,787,250 | 16,078,811,428 | 12,270,184,750 | | Other Businesses | 109,705,499 | 71,790,046 | 158,562,226 | 126,649,143 | | Total | 16,046,640,187 | 11,405,577,296 | 16,237,373,654 | 12,396,833,893 | Breakdown of Operating Revenue and Operating Costs (by Product Type) | Product Type | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | Cement Sales | 8,754,581,124 | 6,029,693,118 | | Concrete Sales | 3,456,745,885 | 3,003,271,938 | | Clinker Sales | 397,096,518 | 355,224,754 | | Aggregates Sales | 2,762,583,002 | 1,439,038,459 | | Other | 675,633,658 | 578,666,188 | - The company recognizes revenue from cement and other building materials sales at the point in time when control is transferred, and service revenue is recognized according to the progress of performance[348](index=348&type=chunk)[349](index=349&type=chunk) [58. Earnings Per Share](index=105&type=section&id=58.%20Earnings%20Per%20Share) H1 2025 basic EPS was **RMB 0.53**, diluted EPS **RMB 0.52**, both significantly higher year-on-year Earnings Per Share | Item | Current Period (RMB/share) | Prior Period (RMB/share) | | :--- | :--- | :--- | | Basic Earnings Per Share (Continuing Operations) | 0.53 | 0.35 | | Diluted Earnings Per Share (Continuing Operations) | 0.52 | 0.35 | Earnings Per Share Calculation Basis | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | 1,103,484,806 | 730,553,347 | | Adjusted Net Profit Attributable to Ordinary Shareholders of the Company | 1,086,938,546 | 724,869,340 | | Weighted Average Number of Ordinary Shares Outstanding of the Company | 2,077,779,049 | 2,078,818,009 | | Adjusted Weighted Average Number of Ordinary Shares Outstanding of the Company | 2,079,932,326 | 2,078,818,009 | [VIII. R&D Expenses](index=112&type=section&id=VIII.%20R%26D%20Expenses) Total R&D expenditure was **RMB 76.0445 million**, with **RMB 72.2249 million** expensed and **RMB 3.8196 million** capitalized R&D Expenditure by Nature of Expense | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation and Labor | 53,977,035 | 49,712,408 | | Depreciation and Amortization | 3,268,024 | 3,503,893 | | Intermediary Agency Service Fees | 7,152,393 | 6,318,521 | | Daily Office Expenses | 5,667,726 | 5,814,329 | | Other | 5,979,366 | 5,605,201 | | Total | 76,044,544 | 70,954,352 | | Of which: Expensed R&D Expenditure | 72,224,935 | 70,954,352 | | Capitalized R&D Expenditure | 3,819,609 | 399,345 | [IX. Changes in Consolidation Scope](index=112&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) The company acquired Brazil's ITATUBA PARTICIPAÇÕES LTDA (**100%** equity) for **RMB 1.262 billion**, adding **RMB 0.590 billion** goodwill - In the current period, the company acquired **100%** equity of Brazil's ITATUBA PARTICIPAÇÕES LTDA through a non-same-control business combination, with an equity acquisition cost of **RMB 1,262,165,065**[398](index=398&type=chunk) - This acquisition resulted in goodwill of **RMB 589,792,804**, and the acquired company generated revenue of **RMB 156,245,294** and net profit of **RMB 20,874,967** from the acquisition date to the end of the period[398](index=398&type=chunk)[400](index=400&type=chunk) - The Group deregistered **4** subsidiaries and newly established or acquired **6** subsidiaries through equity acquisition in the current period[403](index=403&type=chunk)[404](index=404&type=chunk) [X. Interests in Other Entities](index=115&type=section&id=X.%20Interests%20in%20Other%20Entities) This section details the company's numerous subsidiaries and important non-wholly-owned subsidiaries, including their financial impact - The company has numerous subsidiaries, with business activities covering building materials production and sales, environmental protection, logistics, and investment[405](index=405&type=chunk)[406](index=406&type=chunk)[407](index=407&type=chunk)[408](index=408&type=chunk)[409](index=409&type=chunk)[410](index=410&type=chunk) - The company exercises control over Huaxin Chunjin Building Materials (Wuxue) Co., Ltd. and Huaxin Yawan Cement Co., Ltd., among others, even with less than **50%** shareholding, primarily through board voting rights[410](index=410&type=chunk)[411](index=411&type=chunk) Key Financial Information of Important Non-Wholly-Owned Subsidiaries (Current Period) | Subsidiary Name | Operating Revenue (RMB) | Net Profit (RMB) | Total Comprehensive Income (RMB) | Cash Flow from Operating Activities (RMB) | | :--- | :--- | :--- | :--- | :--- | | Huangshi Huaxin Green Building Materials Industry Co., Ltd. | 516,175,394 | -90,330,897 | -90,330,897 | -76,635,788 | | Huaxin Green Building Materials (Wuxue) Co., Ltd. | 685,249,976 | 181,870,179 | 181,870,179 | -15,720,020 | | Oman Cement Company SAOG | 630,348,072 | 92,164,478 | 48,620,535 | 130,483,150 | [XI. Risks Related to Financial Instruments](index=124&type=section&id=XI.%20Risks%20Related%20to%20Financial%20Instruments) The company manages credit, liquidity, and market risks (interest rate, foreign currency) through various strate

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board and senior management confirm the unaudited semi-annual report's accuracy, proposing a 2025 interim cash dividend of RMB 0.28 per 10 shares (30.31% of net profit), cautioning investors on forward-looking statements, and affirming no unauthorized fund occupation or guarantees 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Proposed Cash Dividend (tax inclusive) | 26,177,649.93 RMB | | Dividend per 10 shares | 0.28 RMB | | Percentage of Net Profit Attributable to Shareholders for the Reporting Period | 30.31% | | Total Share Capital | 934,916,069 shares | Unaudited Financial Data for January-June 2025 | Indicator | Amount (RMB) | | :--- | :--- | | Net Profit Attributable to Owners of the Parent Company | 86,366,014.84 | | Undistributed Profits Carried Forward from Prior Year | 821,697,297.15 | | Less: 2024 Annual Cash Dividend | 6,544,412.48 | | Actual Distributable Profits | 901,518,899.51 | - This semi-annual report is unaudited[5](index=5&type=chunk) - Forward-looking statements regarding future plans or projections in this report do not constitute a substantive commitment by the company to investors, who should maintain adequate risk awareness[8](index=8&type=chunk) - There is no non-operating occupation of funds by controlling shareholders or other related parties[9](index=9&type=chunk) - There are no instances of providing external guarantees in violation of prescribed decision-making procedures[9](index=9&type=chunk) [Section I Definitions](index=5&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines key terms and entities used in the report, including regulatory bodies, exchanges, company and subsidiary names, and specialized technical terms like float glass and TCO glass, clarifying the reporting period as January 1 to June 30, 2025 - Common terms such as CSRC, SSE, Group or Company or Yaopi Glass are defined[15](index=15&type=chunk) - Multiple subsidiary names are listed, including Shanghai Yaopi Architectural Glass Co., Ltd., and Tianjin Yaopi Glass Co., Ltd[15](index=15&type=chunk) - Professional technical terms such as TCO glass (Transparent Conductive Oxide substrate glass), CSP glass (Concentrated Solar Power glass), Auto-Low E glass (on-line coated low-emissivity automotive glass), and BIPV (Building Integrated Photovoltaics) are explained[15](index=15&type=chunk) - The reporting period refers to January 1, 2025, to June 30, 2025[15](index=15&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's basic information, contact details, stock overview, and key accounting data and financial indicators for the first half of 2025, highlighting enhanced profitability due to optimized operating strategies, product structure adjustments, and reduced raw material prices, despite a slight decrease in operating revenue [Company Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) The company's Chinese name is Shanghai Yaopi Glass Group Co., Ltd., abbreviated as Yaopi Glass, with Yin Jun as its legal representative, and its A-shares (600819) and B-shares (900918) are listed on the Shanghai Stock Exchange - The company's Chinese name is Shanghai Yaopi Glass Group Co., Ltd., abbreviated as Yaopi Glass[17](index=17&type=chunk) - The company's legal representative is Yin Jun[17](index=17&type=chunk) - The company's stock types include A-shares (stock code 600819) and B-shares (stock code 900918), both listed on the Shanghai Stock Exchange[21](index=21&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%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 the first half of 2025, the company's operating revenue decreased by 4.81% year-on-year, but total profit and net profit attributable to shareholders increased by 52.44% and 37.92% respectively, with improved basic earnings per share and weighted average return on net assets, driven by optimized operating strategies, product structure adjustments, refined management, and lower raw material prices Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,617,934,265.73 | 2,750,117,861.12 | -4.81 | | Total Profit | 125,383,863.45 | 82,249,417.14 | 52.44 | | Net Profit Attributable to Shareholders | 86,366,014.84 | 62,621,744.88 | 37.92 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains and Losses | 82,496,128.70 | 51,052,994.14 | 61.59 | | Net Cash Flow from Operating Activities | 163,468,448.64 | 267,039,683.92 | -38.78 | | Net Assets Attributable to Shareholders (End of Current Period) | 3,531,592,963.17 | 3,451,771,360.81 | 2.31 | | Total Assets (End of Current Period) | 8,358,918,225.52 | 7,978,369,008.10 | 4.77 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.09 | 0.07 | 28.57 | | Diluted Earnings Per Share (RMB/share) | 0.09 | 0.07 | 28.57 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (RMB/share) | 0.09 | 0.05 | 80.00 | | Weighted Average Return on Net Assets (%) | 2.47 | 1.84 | Increased by 0.63 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 2.36 | 1.50 | Increased by 0.86 percentage points | - In the first half of 2025, the company continued to deepen its "upstream and downstream integration, product differentiation" operating strategy, optimizing product structure, actively expanding into high-value-added glass markets, strengthening internal refined management to improve production efficiency, and benefiting from favorable factors such as declining raw material prices, leading to an increase in gross profit margin for its main business and enhanced profitability[24](index=24&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=%E4%B9%9D%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%92%8C%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **RMB 3,869,886.14**, primarily including gains and losses from disposal of non-current assets, government subsidies recognized in current profit or loss, fair value changes and disposal gains/losses of financial assets and liabilities, and reversal of impairment provisions for accounts receivable Non-Recurring Gains and Losses for H1 2025 | Non-Recurring Gain/Loss Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -1,478,634.20 | | Government subsidies recognized in current profit or loss | 1,108,384.05 | | Gains and losses from changes in fair value of financial assets and liabilities and disposal gains/losses, excluding hedging activities | 26,848.84 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 3,838,592.25 | | Other non-operating income and expenses apart from the above | -1,122,088.47 | | Less: Income tax impact | -725,613.35 | | Minority interest impact (after tax) | -771,170.32 | | **Total** | **3,869,886.14** | [Section III Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section details the glass manufacturing industry's development, including market dynamics for float glass, architectural processed glass, and automotive processed glass, highlighting the company's "upstream and downstream integration, product differentiation" strategy, technological innovation, and refined management to enhance profitability, achieving RMB 2.618 billion in operating revenue and a 37.92% year-on-year increase in net profit attributable to shareholders, while also analyzing core competencies, asset-liability status, investment, and risks with corresponding strategies [Industry and Main Business Overview for the Reporting Period](index=8&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%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The glass manufacturing industry is pursuing high-quality development and transformation, but sub-markets show divergence, with float glass facing worsening supply-demand and high inventory, architectural glass experiencing low demand due to real estate downturn, and automotive glass seeing overall growth, particularly in new energy vehicles, while the company focuses on float, architectural, and automotive glass through innovation and differentiation [Industry Development](index=8&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) In the first half of 2025, the float glass industry experienced worsening supply-demand, declining operating rates and output, yet increasing inventory; architectural processed glass demand remained low due to the real estate market downturn, with significantly reduced order days; while the automotive processed glass industry saw double-digit growth in production and sales, with new energy vehicles being a significant highlight, accounting for 44.3% of total sales - In the first half of 2025, float glass supply and demand deteriorated, prices declined, the average operating rate from January to May decreased by **8.58%** compared to the same period last year, and output decreased by **10%** year-on-year[30](index=30&type=chunk) - As of late June, float glass inventory reached **69.887 million weight cases**, an increase of **54.54%** from the end of last year and **16.82%** year-on-year[30](index=30&type=chunk) - In the first half of 2025, architectural glass demand declined year-on-year, with real estate completion area decreasing by **14.3%** year-on-year, and the average order days for deep processing enterprises being only **6.8 days**, a significant year-on-year decrease of **39.3%**[30](index=30&type=chunk) - In the first half of 2025, China's automobile production and sales both exceeded **15 million units** for the first time, achieving double-digit growth, with new energy vehicle production and sales reaching **6.968 million units** and **6.937 million units** respectively, increasing by **41.4%** and **40.3%** year-on-year, accounting for **44.3%** of total sales[31](index=31&type=chunk) [Company's Main Business](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business involves the research, development, production, and sale of float glass, architectural processed glass, and automotive processed glass, continuously optimizing its product structure, expanding application scenarios, and consolidating its leading position through technological innovation, refined management, and resource integration - The company's main business is the research, development, production, and sale of float glass, architectural processed glass, and automotive processed glass[32](index=32&type=chunk) - The float glass segment operates **5** advanced high-end float glass production lines, with key differentiated products including high-quality automotive glass, on-line coated low-emissivity glass, TCO glass, and CSP glass, with a primary future direction being to support the development of the solar energy industry[32](index=32&type=chunk) - The architectural processed glass segment is a supplier of high-quality engineered architectural processed glass, focusing on energy-saving, energy-generating glass, off-line low-emissivity coated glass, BIPV, and other high-performance, energy-efficient, and environmentally friendly architectural processed glass, with products widely used in landmark buildings globally[32](index=32&type=chunk) - The automotive processed glass segment is committed to innovation-driven development, vigorously developing energy-saving, heatable, smart, and HUD display technology-linked coated automotive glass, large panoramic sunroof glass, etc., and is a high-quality supplier to renowned automakers such as SAIC Volkswagen, Geely, and BYD[33](index=33&type=chunk) [Operating Model](index=9&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's production model primarily involves continuous, year-round operation for float glass and build-to-order for processed glass; sales are mainly direct and domestic; procurement is centrally managed by the headquarters' logistics department; and R&D is led by the Yaopi Glass Research Institute, focusing on product high-end, intelligent, and green development - Float glass production is characterized by continuous, year-round operation, with each production base scientifically formulating production plans; architectural processed glass and automotive processed glass primarily adopt a build-to-order production management model, supplemented by planned production[34](index=34&type=chunk) - The company's sales model is primarily direct sales, with a focus on domestic sales and supplementary export sales[34](index=34&type=chunk) - The company's headquarters logistics department formulates procurement policies, supplier policies, bidding strategies, etc., and conducts centralized bidding and pricing for procurement logistics[34](index=34&type=chunk) - The company's Yaopi Glass Research Institute serves as the main body for technological innovation and new product R&D, continuously conducting independent research and development focused on product high-end, intelligent, and green development[34](index=34&type=chunk) [Market Position](index=9&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D) The company is one of China's earliest listed glass manufacturers, with a full-产业链布局 covering float glass, architectural processed glass, and automotive processed glass, leveraging deep technical expertise, diversified products, and R&D talent, with many products recognized as "China Famous Brand Products" and "Shanghai Famous Brand Products," and holding a leading domestic position in high-end float glass and TCO glass - The company is one of China's earliest listed glass manufacturers and a representative high-quality glass producer in the country[35](index=35&type=chunk) - The company has formed a full industry chain layout covering float glass, architectural processed glass, and automotive processed glass, with float glass and architectural glass products recognized as "China Famous Brand Products" and "Shanghai Famous Brand Products"[35](index=35&type=chunk) - In 2024, the company was selected by China Curtain Wall Network as one of the Top Ten Preferred Brands for Architectural Glass in the 20th AL-Survey Architectural Doors, Windows, and Curtain Wall Industry Brand List for 2024-2025[35](index=35&type=chunk) - The company is one of the few domestic manufacturers capable of producing high-quality automotive-grade float glass and one of the few domestic companies capable of producing 2mm ultra-thin on-line coated Low-E glass[36](index=36&type=chunk) - The company's TCO glass production technology is in a leading position domestically, and its wholly-owned subsidiary Dalian Yaopi is China's earliest manufacturer to achieve commercial production of solar photovoltaic TCO glass[36](index=36&type=chunk) [Performance Drivers](index=10&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company's performance is primarily driven by technological innovation, deep integration of its "upstream and downstream industry integration" strategy, active strengthening of its differentiated product matrix, and accelerated construction of a new quality productive force system centered on "technological innovation + green intelligent manufacturing," aiming to comprehensively solidify its core competitiveness in the high-end glass sector and enhance profitability - The company relies on the Yaopi Research Institute as an innovation engine, deeply integrating its "upstream and downstream industry integration" strategy, and actively strengthening its differentiated product matrix[37](index=37&type=chunk) - It continuously promotes product structure upgrades towards high-value-added and high-tech content, accelerating the construction of a new quality productive force system centered on "technological innovation + green intelligent manufacturing"[37](index=37&type=chunk) - This comprehensively solidifies the company's core competitiveness in the high-end glass sector and enhances its profitability[37](index=37&type=chunk) [Discussion and Analysis of Operating Performance](index=10&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2025, amidst a complex market environment, the company focused on "innovation breakthroughs" and product high-end, intelligent, and green development, achieving operating revenue of **RMB 2.618 billion**, total profit of **RMB 125 million**, and net profit attributable to shareholders of **RMB 86.366 million**, a year-on-year increase of **37.92%**, with all business segments making positive progress in quality and efficiency improvement, differentiated sales, and new energy market expansion - In the first half of 2025, the company achieved operating revenue of **RMB 2.618 billion**, net cash flow of **RMB 163 million**, total profit of **RMB 125 million**, a year-on-year increase of **52.44%**, and net profit attributable to shareholders of **RMB 86.366 million**, a year-on-year increase of **37.92%**[10](index=10&type=chunk) - The float glass segment focused on "quality and efficiency improvement," dynamically adjusting product structure, concentrating on high-value-added products, maintaining stable and high production, achieving significant cost reductions in main materials, and continuously improving operating performance[10](index=10&type=chunk) - In the solar energy sector, the company fully leveraged its first-mover advantage and technological leadership in TCO glass for cadmium telluride and perovskite thin-film solar power glass, maintaining stable sales and establishing strategic partnerships with leading companies[38](index=38&type=chunk) - The architectural processed glass segment continued to strengthen differentiated product sales, with BIPV products applied in multiple projects, and breakthroughs achieved in technical modifications for various differentiated products such as irregular and special-sized glass, enhancing risk resistance capabilities[38](index=38&type=chunk) - The automotive processed glass segment actively expanded new energy customers, with sales revenue of high-value-added products increasing year-on-year, and product structure optimization coupled with domestic material substitution leading to scientific cost reduction, further improving gross profit margin, and securing new business such as the German Audi door project[39](index=39&type=chunk)[40](index=40&type=chunk) - The Research Institute actively promoted its annual plan, continuously carried out multiple R&D efforts, conducted basic development for new Low-E products for Changshu Auto Glass's four-silver coating line, and developed several market-filling products such as silver-free series, super insulation series, and near-zero energy consumption series[41](index=41&type=chunk) [Analysis of Core Competitiveness for the Reporting Period](index=11&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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 competitiveness lies in its professional management and R&D teams, strong independent R&D and technological innovation capabilities, excellent corporate culture, good customer relationships, and sound corporate governance structure, all of which collectively drive its continuous development in the high-end glass sector and meet the diverse needs of global customers - The company emphasizes talent development, possessing a proactive, innovative management team and technical backbone with rich professional experience[42](index=42&type=chunk) - The company consistently prioritizes R&D investment in new technologies and products, actively promoting product upgrades and technological innovation based on absorbing and digesting international advanced technologies, and continuously developing new products and technologies with independent intellectual property rights[43](index=43&type=chunk) - The company adheres to the corporate philosophy of "always pursuing new goals" and the operating strategy of "customer-oriented, with refined management and differentiated competition as means"[43](index=43&type=chunk) - The company focuses on establishing good communication relationships with customers, comprehensively understanding customer needs, and providing comprehensive professional glass solutions, earning customer and market recognition for product quality, technical content, supply capability, and commercial reputation[43](index=43&type=chunk) - The company, based on a sound corporate governance structure and standardized management systems, continuously innovates its operating mechanisms and strictly controls operating risks, laying a solid foundation for its sustained and stable development[43](index=43&type=chunk) [Key Operating Performance for the Reporting Period](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This section analyzes the company's major financial statement item changes, asset-liability status, and investment activities during the reporting period, noting a significant decrease in financial expenses due to increased exchange gains and a decline in net cash flow from operating activities due to increased working capital occupation, alongside increased construction in progress investments and significant growth in short-term borrowings and non-current liabilities due within one year, while the company continues to advance multiple non-equity investment projects and holds a certain scale of financial assets measured at fair value [Analysis of Main Business](index=11&type=section&id=%28%E4%B8%80%29%20%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 operating revenue decreased by 4.81% year-on-year, but operating costs decreased by 8.44%, and financial expenses significantly reduced due to increased exchange gains; net cash flow from operating activities decreased by 38.78% due to increased working capital occupation, and net cash flows from investing and financing activities also experienced significant changes Analysis of Financial Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,617,934,265.73 | 2,750,117,861.12 | -4.81 | | Operating Cost | 2,124,681,721.45 | 2,320,573,590.05 | -8.44 | | Selling Expenses | 64,540,654.87 | 67,536,687.27 | -4.44 | | Administrative Expenses | 148,144,351.29 | 147,745,325.12 | 0.27 | | Financial Expenses | -7,695,008.27 | 13,245,123.37 | N/A | | R&D Expenses | 118,744,133.80 | 116,634,492.92 | 1.81 | | Net Cash Flow from Operating Activities | 163,468,448.64 | 267,039,683.92 | -38.78 | | Net Cash Flow from Investing Activities | -268,974,039.06 | -151,425,482.02 | N/A | | Net Cash Flow from Financing Activities | 188,905,298.57 | -85,373,648.31 | N/A | - The change in financial expenses is mainly due to an increase in exchange gains in the current period[45](index=45&type=chunk) - The change in net cash flow from operating activities is mainly due to an increase in working capital occupation in the current period compared to the prior period[45](index=45&type=chunk) - The change in net cash flow from investing activities is mainly due to increased investment expenditures in projects under construction in the current period[47](index=47&type=chunk) - The change in net cash flow from financing activities is mainly due to a net increase in interest-bearing liabilities in the current period compared to the prior period[47](index=47&type=chunk) [Analysis of Assets and Liabilities](index=12&type=section&id=%28%E4%B8%89%29%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%A0%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets were **RMB 8.359 billion**, an increase of 4.77% from the end of the previous year, with accounts receivable significantly decreasing by 67.18% and accounts receivable financing increasing by 41.51%, while construction in progress and right-of-use assets grew substantially due to project construction and new leases, and short-term borrowings and non-current liabilities due within one year significantly increased due to working capital and project funding needs Analysis of Changes in Assets and Liabilities | Item Name | End of Current Period (RMB) | Percentage of Total Assets at End of Current Period (%) | End of Prior Year (RMB) | Percentage of Total Assets at End of Prior Year (%) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 38,053,251.59 | 0.46 | 115,961,428.29 | 1.45 | -67.18 | Strengthened bill management, decrease in bank acceptance bills included in notes receivable at period-end | | Accounts Receivable Financing | 477,762,889.97 | 5.72 | 337,625,013.56 | 4.23 | 41.51 | Strengthened bill management and collection management, increase in bank acceptance bills receivable at period-end | | Construction in Progress | 835,064,627.61 | 9.99 | 577,381,827.59 | 7.24 | 44.63 | Projects under construction at Tianjin Yaopi, Dalian Yaopi, Changshu Auto Glass, and Yizheng Auto Glass in current period, increasing period-end balance | | Right-of-Use Assets | 28,411,616.65 | 0.34 | 19,780,306.29 | 0.25 | 43.64 | New factory lease at Guilin Auto Glass in current period, increasing right-of-use assets | | Short-Term Borrowings | 398,974,812.63 | 4.77 | 283,812,186.30 | 3.56 | 40.58 | Increased working capital and project funding needs in current period | | Non-Current Liabilities Due Within One Year | 243,649,999.52 | 2.91 | 56,216,435.39 | 0.70 | 333.41 | Increase in long-term borrowings due within one year in current period | - The balance of overseas assets at the end of the period is **RMB 6,412,627.35**, accounting for **0.08%** of total assets[50](index=50&type=chunk) [Analysis of Investment Activities](index=13&type=section&id=%28%E5%9B%9B%29%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company had no significant equity investments during the reporting period but continued to advance multiple non-equity investment projects, primarily in automotive glass coating production lines, fire-resistant glass technical upgrades, bulletproof glass production lines, four-silver low-carbon high-tech special glass innovation demonstration lines, and float glass production line cold repair technical upgrades and energy-saving renovations, while also holding a certain scale of transactional financial assets and fund investments - The second phase project of Changshu Yaopi Automotive Glass Co., Ltd. (coating production line and front windshield pressing line) is under construction, with a total investment of **RMB 443.84 million**[52](index=52&type=chunk) - The tempered/laminated small sunroof and side window production line project of Yizheng Yaopi Automotive Glass Co., Ltd. is undergoing installation and commissioning, with an investment of **RMB 105 million**[52](index=52&type=chunk) - The high borosilicate fire-resistant glass technical upgrade project of Changshu Yaopi Special Glass Co., Ltd. is undergoing upgrade and renovation, with an investment of **RMB 81.7 million**[53](index=53&type=chunk) - The bulletproof glass project for special vehicles at Wuhan Yaopi Kangqiao Automotive Glass Co., Ltd. is under construction, with an investment of **RMB 34.17 million**[54](index=54&type=chunk) - The Shanghai Industrial Glass four-silver low-carbon high-tech special glass innovation demonstration line project is in preparation, with an investment of **RMB 284.22 million**[55](index=55&type=chunk) - The Tianjin Yaopi Glass Co., Ltd. production line cold repair technical upgrade project and the Tianjin Yaopi production line energy-saving upgrade and coating process renovation project are under construction[55](index=55&type=chunk) - The Dalian Yaopi melting furnace energy-saving upgrade and float glass production line automation renovation project is under construction, with a total investment of **RMB 288.3099 million**[55](index=55&type=chunk) Financial Assets Measured at Fair Value | Asset Category | Project Name | Period-End Amount (RMB) | Period-Beginning Amount (RMB) | | :--- | :--- | :--- | :--- | | Other | Transactional Financial Assets - Bank Wealth Management Products | 386,066,238.37 | 340,961,353.43 | | Other | Other Non-Current Financial Assets - Fund Investments | 25,247,528.25 | 25,445,455.23 | | Other | Accounts Receivable Financing | 477,762,889.97 | 337,625,013.56 | | **Total** | | **889,076,656.59** | **704,031,822.22** | [Other Disclosures](index=16&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) This section discloses the company's exposure to domestic and international economic volatility, raw material price fluctuations, intense market competition, customer credit risk, and environmental protection risks, along with corresponding mitigation strategies, while also detailing the company's ongoing "quality and efficiency improvement, value return" action plan, including deepening operating strategies, strengthening investor relations, implementing profit distribution, and shareholding increases by the controlling shareholder - The company faces domestic and international economic volatility, raw material price fluctuations, intense market competition, customer credit risk, and environmental protection risks[60](index=60&type=chunk)[61](index=61&type=chunk) - Risk mitigation strategies include increasing R&D investment, optimizing product structure, strengthening refined management, expanding markets, improving credit policies, and enhancing environmental protection efforts[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The company continues to deepen its "upstream and downstream integration, product differentiation" operating strategy, focusing on product high-end, intelligent, and green development, achieving good operating results, with net profit attributable to shareholders of **RMB 86.37 million** for January-June 2025, a year-on-year increase of **37.92%**[63](index=63&type=chunk) - The company highly values investor relations, strengthening communication through performance briefings, investor hotlines, the SSE E-interaction platform, and investor surveys[64](index=64&type=chunk) - The company actively practices the "investor-centric" development philosophy, completing **two** profit distributions in 2024 and **one** in July 2025[64](index=64&type=chunk) - The controlling shareholder, Shanghai Building Materials (Group) Co., Ltd., and its concerted action party, Hong Kong Haijian Industrial Co., Ltd., successfully completed their share increase plan, acquiring **9,357,400 A-shares** and **5,216,463 B-shares**[64](index=64&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=18&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section discloses changes in the company's board of directors, including the election of Sun Dahai as an employee director, and reiterates the 2025 interim profit distribution plan to pay a cash dividend of RMB 0.28 per 10 shares, while confirming no equity incentive or employee stock ownership plans were implemented, and listing seven subsidiaries included in the environmental information disclosure list with details on how to access their environmental information [Changes in Directors and Senior Management](index=18&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%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) On June 13, 2025, the company's annual general meeting approved the revision of the Articles of Association and the cancellation of the supervisory board, with the board of directors adding one employee director, Sun Dahai, who was subsequently elected - On June 13, 2025, the company held its 2024 Annual General Meeting, which approved the "Proposal on Revising the Articles of Association and Proposing to Cancel the Supervisory Board"; according to the revised Articles of Association, the company's board of directors added **one** employee director[66](index=66&type=chunk) - Sun Dahai was elected as an employee director[66](index=66&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=18&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company proposes a 2025 semi-annual cash dividend of RMB 0.28 per 10 shares (tax inclusive) to all shareholders, totaling **RMB 26,177,649.93**, representing 30.31% of the net profit attributable to listed company shareholders for the reporting period, with no capital reserve conversion to share capital or bonus shares planned for this period 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Distribution or Capitalization | No | | Dividend per 10 shares (RMB) (tax inclusive) | 0.28 | | Proposed Cash Dividend (tax inclusive) | 26,177,649.93 RMB | | Percentage of Net Profit Attributable to Shareholders for the Reporting Period | 30.31% | - No capital reserve conversion to share capital or bonus shares will be conducted in this reporting period[67](index=67&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the Environmental Information Disclosure List](index=19&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company has seven subsidiaries included in the environmental information disclosure list, such as Tianjin Yaopi Glass Co., Ltd. and Dalian Yaopi Glass Co., Ltd., with environmental information accessible through the Enterprise Environmental Information Disclosure System or the National Pollutant Discharge Permit Information Management Platform - The company has **seven** subsidiaries included in the environmental information disclosure list[69](index=69&type=chunk) - Subsidiaries included in the list are Tianjin Yaopi Glass Co., Ltd., Dalian Yaopi Glass Co., Ltd., Jiangsu Pilkington Yaopi Glass Co., Ltd., Changshu Special Glass Co., Ltd., Shanghai Yaopi Architectural Glass Co., Ltd., Shanghai Yaopi Engineering Glass Co., Ltd., and Tianjin Yaopi Engineering Glass Co., Ltd[69](index=69&type=chunk) - Environmental information can be queried through the Enterprise Environmental Information Disclosure System or the National Pollutant Discharge Permit Information Management Platform[69](index=69&type=chunk) [Section V Significant Matters](index=19&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section reports no significant abnormalities in the company's commitment fulfillment, fund occupation, unauthorized guarantees, audit, or bankruptcy reorganization, discloses two major litigation and arbitration cases, one of which has been settled with a payment of **USD 185,000** recorded as a provision, and the other still in the document disclosure phase with an unpredictable outcome, notes the company received a rectification order from the Shanghai Securities Regulatory Bureau for information disclosure issues and has completed rectification, confirms the company and its controlling shareholder and actual controller have good credit standing, and details significant related party transactions including sales and purchases of goods, technical services, equipment procurement, and creditor-debtor relationships with NSG UK ENTERPRISES LIMITED and its affiliates, Shanghai Building Materials and its subsidiaries, and Luanzhou Xiaochuan Glass Silica Sand Co., Ltd [Major Litigation and Arbitration Matters](index=20&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company is a defendant in two major outstanding litigation and arbitration cases totaling **USD 23.5693 million**, with one sales contract lawsuit settled in July 2025 requiring a **USD 185,000** payment recorded as a provision, and the other still in the document disclosure phase with an unpredictable outcome - As of June 30, 2025, the company is a defendant in two major outstanding litigation and arbitration cases with a total involved amount of **USD 23.5693 million**, equivalent to approximately **RMB 169.4258 million**[473](index=473&type=chunk) - Case one is a sales contract lawsuit involving tempered glass supply for a building in Texas, USA, with the plaintiff claiming **USD 14.5119 million**; a settlement was reached in July 2025, requiring the company to pay **USD 185,000** (approximately **RMB 1,324,341.00**) in settlement fees, which has been recorded as a provision[72](index=72&type=chunk)[73](index=73&type=chunk)[369](index=369&type=chunk) - Case two is a sales contract lawsuit (arbitration) involving tempered glass supply for a New Jersey project in the USA, with the client claiming **USD 9.0574 million**; both parties are currently in the document disclosure phase, and the outcome of the lawsuit is not yet predictable[73](index=73&type=chunk)[74](index=74&type=chunk) [Illegal Activities, Penalties, and Rectification of Listed Companies, Their Directors, Senior Management, Controlling Shareholders, and Actual Controllers](index=21&type=section&id=%E5%85%AB%E3%80%81%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E3%80%81%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%E6%B6%89%E5%AB%8C%E8%BF%9D%E6%B3%95%E8%BF%9D%E8%A7%84%E3%80%81%E5%8F%97%E5%88%B0%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) On June 16, 2025, the company received a "Decision on Taking Corrective Measures Against Shanghai Yaopi Glass Group Co., Ltd." from the China Securities Regulatory Commission Shanghai Bureau, and has since completed the required rectifications within the specified timeframe - On June 16, 2025, the company received the "Decision on Taking Corrective Measures Against Shanghai Yaopi Glass Group Co., Ltd." (Hu Zheng Jian Jue [2025] No. 121) issued by the China Securities Regulatory Commission Shanghai Bureau on June 10, 2025[75](index=75&type=chunk) - The company has completed the relevant rectifications within the specified timeframe as required by the decision, and the rectification report has been submitted to the China Securities Regulatory Commission Shanghai Bureau[75](index=75&type=chunk) [Statement on the Integrity of the Company, Its Controlling Shareholder, and Actual Controller During the Reporting Period](index=21&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company, its controlling shareholder, and actual controller maintained good credit standing, with no instances of dishonesty, unfulfilled effective court judgments, or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller had no instances of dishonesty, unfulfilled effective court judgments, or large overdue debts[76](index=76&type=chunk) [Significant Related Party Transactions](index=21&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in transactions with NSG UK ENTERPRISES LIMITED and its affiliates, Shanghai Building Materials (Group) Co., Ltd. and its subsidiaries, and Luanzhou Xiaochuan Glass Silica Sand Co., Ltd., involving sales and purchases of goods, technical services, equipment procurement, and creditor-debtor relationships, notably with significant sales to NSG UK ENTERPRISES LIMITED and its affiliates, and an outstanding payable for industrial support funds from Shanghai Building Materials (Group) Co., Ltd [Related Party Transactions in Ordinary Operations](index=21&type=section&id=%28%E4%B8%80%29%20%E4%B8%8E%E6%97%A5%E5%B8%B8%E7%BB%8F%E8%90%A5%E7%9B%B8%E5%85%B3%E7%9A%84%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in ordinary operating related party transactions, including procurement of goods, acceptance of services, and sales of goods, with NSG UK ENTERPRISES LIMITED and its affiliates, Shanghai Building Materials (Group) Co., Ltd. and its subsidiaries, and Luanzhou Xiaochuan Glass Silica Sand Co., Ltd Procurement of Goods/Acceptance of Services (Unit: RMB 10,000) | Related Party | Transaction Content | Current Period Amount | 2025 Estimated Amount | | :--- | :--- | :--- | :--- | | NSG UK ENTERPRISES LIMITED and its Affiliates | Equipment Purchase Fee | 43.69 | 4,000.00 | | NSG UK ENTERPRISES LIMITED and its Affiliates | Procurement of Goods | 249.31 | 500.00 | | NSG UK ENTERPRISES LIMITED and its Affiliates | Technical Service Fee | - | 800.00 | | Luanzhou Xiaochuan Glass Silica Sand Co., Ltd. | Procurement of Raw Materials | 1,712.31 | 4,000.00 | Sales of Goods/Provision of Services (Unit: RMB 10,000) | Related Party | Related Transaction Content | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | :--- | | NSG UK ENTERPRISES LIMITED and its Affiliates | Sales of Goods | 14,968.32 | 12,158.99 | | Shanghai Building Materials (Group) Co., Ltd. and its Subsidiaries | Sales of Goods | 250.63 | - | [Related Party Creditor-Debtor Relationships](index=22&type=section&id=%28%E5%9B%9B%29%20%E5%85%B3%E8%81%94%E5%80%BA%E6%9D%83%E5%80%BA%E5%8A%A1%E5%BE%80%E6%9D%A5) The company has related party creditor-debtor relationships with Luanzhou Xiaochuan Glass Silica Sand Co., Ltd., NSG UK Enterprises Limited and its affiliates, Shanghai Building Materials (Group) Co., Ltd., and Shanghai Boji Intelligent Curtain Wall Co., Ltd., with Shanghai Building Materials (Group) Co., Ltd. providing **RMB 82.3 million** in industrial support funds to the company Related Party Creditor-Debtor Relationships (Unit: RMB 10,000) | Related Party | Related Party Relationship | Funds Provided to Related Party (Period-End Balance) | Funds Provided by Related Party to Listed Company (Period-End Balance) | | :--- | :--- | :--- | :--- | | Luanzhou Xiaochuan Glass Silica Sand Co., Ltd. | Associate Company | 538.25 | 519.26 | | NSG UK Enterprises Limited and its Affiliates | Associate Shareholder | 9,071.04 | 91.63 | | Shanghai Building Materials (Group) Co., Ltd. | Controlling Shareholder | - | 8,230.00 | | Shanghai Boji Intelligent Curtain Wall Co., Ltd. and its Subsidiaries | Controlling Subsidiary of Parent Company | 4.42 | 0 | - The creditor-debtor relationship with Shanghai Building Materials (Group) Co., Ltd. pertains to industrial support funds provided by them to the company[81](index=81&type=chunk) [Section VI Changes in Shares and Shareholder Information](index=23&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital and structure remained unchanged, with **42,300** common shareholders at period-end, and Shanghai Building Materials (Group) Co., Ltd. as the controlling shareholder with **31.83%** ownership, followed by China Composites Group Co., Ltd. and NSG UK ENTERPRISES LIMITED as the second and third largest shareholders [Changes in Share Capital](index=23&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) 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[84](index=84&type=chunk) [Shareholder Information](index=24&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **42,300** common shareholders, with Shanghai Building Materials (Group) Co., Ltd. as the controlling shareholder holding **31.83%**, and China Composites Group Co., Ltd. and NSG UK ENTERPRISES LIMITED holding **10.74%** and **10.70%** respectively - Total number of common shareholders at the end of the reporting period: **42,300** households[86](index=86&type=chunk) Top Ten Shareholders' Shareholding at Period-End | Shareholder Name | Number of Shares Held at Period-End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shanghai Building Materials (Group) Co., Ltd. | 297,625,385 | 31.83 | State-owned Legal Person | | China Composites Group Co., Ltd. | 100,392,175 | 10.74 | State-owned Legal Person | | NSG UK ENTERPRISES LIMITED | 100,046,672 | 10.70 | Overseas Legal Person | | HAITONG INTERNATIONAL SECURITIES COMPANY LIMITED-ACCOUNT CLIENT | 23,992,017 | 2.57 | Other | | Hong Kong Haijian Industrial Co., Ltd. | 8,817,534 | 0.94 | Overseas Legal Person | | MORGAN STANLEY & CO.INTERNATIONAL PLC. | 7,854,663 | 0.84 | Overseas Legal Person | | Baoning Capital Co., Ltd. - Baoning Emerging Markets Small and Medium-sized Enterprise Fund (USA) | 5,741,300 | 0.61 | Overseas Legal Person | | Li Lizhen | 4,482,702 | 0.48 | Overseas Natural Person | | UBS AG | 2,849,511 | 0.30 | Overseas Legal Person | | Industrial and Commercial Bank of China Co., Ltd. - CSI Shanghai State-owned Enterprise ETF | 2,803,830 | 0.30 | Other | - Shanghai Building Materials (Group) Co., Ltd. and Hong Kong Haijian Industrial Co., Ltd. have an associated relationship, collectively holding **32.78%** of the company's total share capital[132](index=132&type=chunk) [Section VII Bond-Related Information](index=26&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[91](index=91&type=chunk) - The company has no convertible corporate bonds[91](index=91&type=chunk) [Section VIII Financial Report](index=27&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section comprises the company's unaudited consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, with detailed disclosures on the company's basic information, basis of financial statement preparation, significant accounting policies and estimates, taxation, notes to consolidated financial statement items, R&D expenditures, changes in consolidation scope, equity in other entities, government grants, financial instrument risks, fair value disclosures, related parties and related party transactions, commitments and contingencies, post-balance sheet events, and supplementary information [Audit Report](index=27&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk)[93](index=93&type=chunk) [Financial Statements](index=27&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 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively illustrating the financial position, operating results, and cash flows at the end of the reporting period [Consolidated Balance Sheet](index=27&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **RMB 8.359 billion**, a 4.77% increase from the beginning of the period, with total current assets of **RMB 3.862 billion** and total non-current assets of **RMB 4.497 billion**, while total liabilities amounted to **RMB 3.627 billion** and total owners' equity was **RMB 4.732 billion** Key Data from Consolidated Balance Sheet | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Cash and Bank Balances | 736,804,384.21 | 725,079,932.88 | | Transactional Financial Assets | 386,066,238.37 | 340,961,353.43 | | Notes Receivable | 38,053,251.59 | 115,961,428.29 | | Accounts Receivable | 774,917,107.73 | 748,074,406.38 | | Accounts Receivable Financing | 477,762,889.97 | 337,625,013.56 | | Inventories | 1,356,747,437.78 | 1,255,025,526.95 | | Fixed Assets | 2,873,508,550.97 | 3,069,886,248.95 | | Construction in Progress | 835,064,627.61 | 577,381,827.59 | | Short-Term Borrowings | 398,974,812.63 | 283,812,186.30 | | Notes Payable | 867,428,298.87 | 824,259,451.60 | | Accounts Payable | 1,011,049,467.20 | 948,363,711.33 | | Contract Liabilities | 144,587,731.46 | 135,472,238.10 | | Non-Current Liabilities Due Within One Year | 243,649,999.52 | 56,216,435.39 | | Total Owners' Equity Attributable to Parent Company | 3,531,592,963.17 | 3,451,771,360.81 | | Minority Interests | 1,200,433,853.54 | 1,173,286,677.80 | | Total Assets | 8,358,918,225.52 | 7,978,369,008.10 | | Total Liabilities and Owners' Equity | 8,358,918,225.52 | 7,978,369,008.10 | [Consolidated Income Statement](index=31&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For January-June 2025, the company achieved total operating revenue of **RMB 2.618 billion**, a 4.81% year-on-year decrease, with total profit of **RMB 125 million**, a 52.44% year-on-year increase, and net profit attributable to parent company shareholders of **RMB 86.366 million**, a 37.92% year-on-year increase, resulting in basic earnings per share of **RMB 0.09** Key Data from Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 2,617,934,265.73 | 2,750,117,861.12 | | II. Total Operating Costs | 2,476,062,197.52 | 2,693,338,950.79 | | Including: Operating Costs | 2,124,681,721.45 | 2,320,573,590.05 | | Financial Expenses | -7,695,008.27 | 13,245,123.37 | | Add: Other Income | 31,504,308.10 | 36,188,712.51 | | Investment Income (Losses indicated by "－") | -1,399,035.75 | 3,383,039.70 | | III. Operating Profit (Losses indicated by "－") | 126,746,408.26 | 81,578,866.38 | | IV. Total Profit (Total losses indicated by "－") | 125,383,863.45 | 82,249,417.14 | | V. Net Profit (Net losses indicated by "－") | 113,513,190.58 | 71,623,129.55 | | Net Profit Attributable to Parent Company Shareholders | 86,366,014.84 | 62,621,744.88 | | Minority Interest Income | 27,147,175.74 | 9,001,384.67 | | VIII. Earnings Per Share: Basic Earnings Per Share (RMB/share) | 0.09 | 0.07 | [Consolidated Cash Flow Statement](index=35&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For January-June 2025, the company's net cash flow from operating activities was **RMB 163 million**, a 38.78% year-on-year decrease, while net cash flow from investing activities was **-RMB 269 million**, primarily due to increased investment expenditures in projects under construction, and net cash flow from financing activities was **RMB 189 million**, mainly due to a net increase in interest-bearing liabilities Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 2,922,446,323.63 | 3,145,732,860.65 | | Subtotal of Cash Outflows from Operating Activities | 2,758,977,874.99 | 2,878,693,176.73 | | Net Cash Flow from Operating Activities | 163,468,448.64 | 267,039,683.92 | | Subtotal of Cash Inflows from Investing Activities | 763,432,251.87 | 693,666,751.21 | | Subtotal of Cash Outflows from Investing Activities | 1,032,406,290.93 | 845,092,233.23 | | Net Cash Flow from Investing Activities | -268,974,039.06 | -151,425,482.02 | | Subtotal of Cash Inflows from Financing Activities | 390,312,079.91 | 537,828,352.51 | | Subtotal of Cash Outflows from Financing Activities | 201,406,781.34 | 623,202,000.82 | | Net Cash Flow from Financing Activities | 188,905,298.57 | -85,373,648.31 | | Net Increase in Cash and Cash Equivalents | 88,154,095.36 | 32,344,802.39 | [Company Basic Information](index=47&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) The company, established in 1983 and listed in 1993, has a registered capital of **RMB 934.9 million**, with its headquarters in China (Shanghai) Pilot Free Trade Zone, primarily engaged in the R&D, production, and sale of various glass products, and controlled by Shanghai Building Materials (Group) Co., Ltd. and ultimately by Shanghai Real Estate (Group) Co., Ltd - Shanghai Yaopi Glass Group Co., Ltd. was established on June 7, 1983, restructured and listed in September 1993, with A-shares listed on January 28, 1994, and B-shares listed on December 10, 1993[124](index=124&type=chunk) - The company's registered capital is **RMB 934,916,069.00**[124](index=124&type=chunk) - The company's registered and office address is Building 4-5, No. 1388 Zhangdong Road, China (Shanghai) Pilot Free Trade Zone[125](index=125&type=chunk) - The company's main business is the research, development, production, and sale of various float glass, rolled glass, automotive processed glass, architectural deep-processed glass, and other special glass series products, as well as the sale of self-produced products[126](index=126&type=chunk) - The company's largest shareholder is Shanghai Building Materials (Group) Co., Ltd., and the ultimate controlling party is Shanghai Real Estate (Group) Co., Ltd[127](index=127&type=chunk) [Basis of Financial Statement Preparation](index=47&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 company's financial statements are prepared on a going concern basis, using the accrual basis of accounting, primarily measuring accounting elements at historical cost, while also employing replacement cost, net realizable value, present value, and fair value when the amounts of determined accounting elements can be obtained and reliably measured, affirming the company's good going concern ability - The company prepares its financial statements on a going concern basis and uses the accrual basis of accounting[129](index=129&type=chunk) - The company generally measures accounting elements at historical cost, and uses replacement cost, net realizable value, present value, and fair value when the amounts of determined accounting elements can be obtained and reliably measured[129](index=129&type=chunk) - Based on the company's assessment, its going concern ability is good for the **12 months** from the end of the reporting period, and there are no factors that would cause significant doubt about its ability to continue as a going concern in the current period[130](index=130&type=chunk) [Significant Accounting Policies and Estimates](index=47&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 accounting policies and estimates for financial instruments, inventories, fixed assets, intangible assets, and other areas, including financial asset classification, impairment provision, inventory valuation, fixed asset depreciation, intangible asset amortization, R&D expenditure capitalization, long-term asset impairment, contract liabilities, employee compensation, provisions, revenue recognition, contract costs, government grants, deferred income tax, and leases, all in accordance with the materiality principle and subject to regular review of significant accounting judgments and estimates - The company classifies financial assets into three categories based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[152](index=152&type=chunk) - The company performs impairment accounting and recognizes loss provisions for accounts receivable, lease receivables, loan commitments, and financial guarantee contracts based on expected credit losses[160](index=160&type=chunk) - Inventories are measured at the lower of cost and net realizable value; if the cost of inventory is higher than its net realizable value, an inventory impairment provision is made[181](index=181&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **20-30 years** for buildings and structures, **5-15 years** for machinery and equipment, **5-10 years** for office and other equipment, and **5 years** for transportation equipment[199](index=199&type=chunk) - Intangible assets include land use rights, franchise fees, and software, which are amortized on a straight-line basis over their estimated useful lives[203](index=203&type=chunk)[204](index=204&type=chunk) - R&D expenditures are divided into research phase expenditures and development phase expenditures, with development phase expenditures recognized as intangible assets when specific conditions are met simultaneously[205](index=205&type=chunk) - The company recognizes revenue when performance obligations are satisfied at a point in time, specifically when products are delivered to the agreed-upon location according to the contract and accepted by the buyer[220](index=220&type=chunk) - In applying accounting policies, the company makes significant accounting judgments and estimates for the carrying amounts of financial instrument impairment, inventory impairment provisions, long-term asset impairment provisions, depreciation, and amortization, and conducts regular reviews[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk) [Taxation](index=71&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include Value-Added Tax, Urban Maintenance and Construction Tax, Education Surcharge, and Corporate Income Tax, with the company and several subsidiaries recognized as high-tech enterprises, enjoying a 15% corporate income tax preferential rate Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value Added | 13%, 9%, 6%, 0% | | Urban Maintenance and Construction Tax | VAT, Consumption Tax Payable | Paid according to company's location policy | | Education Surcharge | VAT, Consumption Tax Payable | Paid according to company's location policy | | Corporate Income Tax | Taxable Income | See table below | Subsidiaries Enjoying 15% Corporate Income Tax Preferential Rate | Company Name | Applicable Tax Rate (%) | | :--- | :--- | | Shanghai Yaopi Engineering Glass Co., Ltd. | 15 | | Tianjin Yaopi Engineering Glass Co., Ltd. | 15 | | Jiangmen Yaopi Engineering Glass Co., Ltd. | 15 | | Chongqing Yaopi Engineering Glass Co., Ltd. | 15 | | Tianjin Yaopi Glass Co., Ltd. | 15 | | Shanghai Yaopi Kangqiao Automotive Glass Co., Ltd. | 15 | | Wuhan Yaopi Kangqiao Automotive Glass Co., Ltd. | 15 | | Yizheng Yaopi Automotive Glass Co., Ltd. | 15 | | Changshu Yaopi Automotive Glass Co., Ltd. | 15 | | Tianjin Yaopi Automotive Glass Co., Ltd. | 15 | | Guilin Pilkington Safety Glass Co., Ltd. | 15 | [Notes to Consolidated Financial Statement Items](index=72&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 for major items in the consolidated financial statements, including cash and bank balances, transactional financial assets, notes receivable, accounts receivable, accounts receivable financing, inventories, construction in progress, fixed assets, intangible assets, goodwill, short-term borrowings, non-current liabilities due within one year, long-term borrowings, provisions, operating revenue and cost, financial expenses, investment income, asset impairment losses, and cash flows, highlighting increased investment in construction in progress, significant growth in short-term borrowings and non-current liabilities due within one year, and reduced financial expenses due to exchange gains - Cash and bank balances at period-end were **RMB 737 million**, of which restricted cash and bank balances were **RMB 188 million**, mainly comprising bank acceptance bill deposits, large-denomination certificates of deposit/time deposits, and other restricted funds[249](index=249&type=chunk) - Transactional financial assets at period-end were **RMB 386 million**, primarily floating-rate wealth management products[251](index=251&type=chunk) - Notes receivable at period-end were **RMB 38.0533 million**, a **67.18%** decrease from the beginning of the period[253](index=253&type=chunk) - Accounts receivable at period-end had a carrying value of **RMB 775 million**, with an impairment provision of **RMB 193 million**, including a **90%** impairment provision for Evergrande-related accounts receivable[262](index=262&type=chunk)[263](index=263&type=chunk) - Accounts receivable financing at period-end was **RMB 478 million**, a **41.51%** increase from the beginning of the period[273](index=273&type=chunk) - Inventories at period-end had a carrying value of **RMB 1.357 billion**, with an inventory impairment provision of **RMB 194 million**[293](index=293&type=chunk) - Construction in progress at period-end had a carrying value of **RMB 792 million**, a **37.73%** increase from the beginning of the period, mainly due to projects such as Changshu fire-resistant glass technical upgrade, Tianjin second line cold repair, and Dalian melting furnace energy-saving upgrade[312](index=312&type=chunk) - Goodwill at period-end had an original carrying value of **RMB 39.2323 million**, with an impairment provision of **RMB 16.328 million**, and an impairment provision of **RMB 1.8694 million** recognized in the current period, mainly due to non-core goodwill corresponding to deferred income tax liabilities arising from non-taxable mergers[322](index=322&type=chunk)[324](index=324&type=chunk) - Short-term borrowings at period-end were **RMB 399 million**, a **40.58%** increase from the beginning of the period, mainly comprising secured borrowings and credit borrowings[339](index=339&type=chunk) - Non-current liabilities due within one year at period-end were **RMB 244 million**, a **333.41%** increase from the beginning of the period, mainly due to long-term borrowings due within one year[359](index=359&type=chunk) - Long-term borrowings at period-end were **RMB 177 million**, a **35.49%** decrease from the beginning of the period, mainly comprising secured borrowings and credit borrowings[362](index=362&type=chunk) - Provisions at period-end were **RMB 1.3243 million**, representing settlement fees for pending litigation[368](index=368&type=chunk)[369](index=369&type=chunk) - Operating revenue was **RMB 2.618 billion**, including **RMB 858 million** from float glass, **RMB 922 million** from architectural processed glass, and **RMB 1.014 billion** from automotive processed glass[381](

华东建筑集团股份有限公司2025 年半年度报告 公司代码：600629 公司简称：华建集团 华东建筑集团股份有限公司 2025 年半年度报告 1 / 193 华东建筑集团股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确 性、完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 否 八、 是否存在违反规定决策程序对外提供担保的情况 否 九、 是否存在半数以上董事无法保证公司所披露半年度报告的真实性、准确性和完整性 否 四、 公司负责人顾伟华、主管会计工作负责人吴峰宇及会计机构负责人（会计主管人员）杨潇 声明：保证半年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请投 资者注意投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 十、 重大风险提示 无 ...

[Glossary](index=5&type=section&id=1.%20Glossary) Provides definitions for key terms used throughout the report [Important Notice](index=7&type=section&id=2.%20Important%20Notice) Contains crucial disclaimers and important information regarding the report's content [Brief Introduction to the Company's Basic Information](index=9&type=section&id=3.%20Brief%20Introduction%20to%20the%20Company%27s%20Basic%20Information) Presents a concise overview of the company's fundamental profile and background [Financial Summary](index=12&type=section&id=4.%20Financial%20Summary) Offers a high-level overview of the company's key financial performance indicators [Overview of Operations](index=15&type=section&id=5.%20Overview%20of%20Operations) Provides a general review of the company's operational performance and business activities [Discussion and Analysis](index=15&type=section&id=6.%20Discussion%20and%20Analysis) [Economic, Financial, and Regulatory Environment](index=17&type=section&id=6.1%20Economic%2C%20Financial%2C%20and%20Regulatory%20Environment) Global economic growth slowed in H1 2025 with increased trade barriers, while China's economy remained stable with 5.3% GDP growth, supported by proactive fiscal and moderately loose monetary policies, alongside strengthened financial regulation - In H1 2025, global economic growth momentum weakened, trade barriers increased, and major economies showed divergent performance, with uncertainties in inflation trends and monetary policy adjustments; China's economy remained generally stable and improving, with steady growth in production and demand, and new progress in high-quality development[30](index=30&type=chunk) 2025 H1 China's Key Economic Indicators | Indicator | 2025 H1 | YoY Growth | | :--- | :--- | :--- | | Gross Domestic Product (GDP) | - | 5.3% | | Value Added of Industrial Enterprises Above Designated Size | - | 6.4% | | Fixed Asset Investment (Excluding Rural Households) | - | 2.8% | | Total Retail Sales of Consumer Goods | - | 5.0% | | Total Value of Goods Trade Imports and Exports (RMB Denominated) | - | 2.9% | | Consumer Price Index (CPI) | - | -0.1% | - Fiscal policy became more proactive, arranging larger-scale government bonds, issuing ultra-long-term special national bonds to support 'two major' projects, and issuing the first batch of **500 billion yuan** special national bonds to supplement core Tier 1 capital for state-owned large commercial banks[30](index=30&type=chunk) - Monetary policy was moderately loose, with the People's Bank of China lowering the reserve requirement ratio by **0.5 percentage points**, reducing the 7-day reverse repurchase operation rate by **0.1 percentage points**, leading to a **0.1 percentage point** drop in LPR, and establishing structural tools such as re-lending for consumption and elderly care services[31](index=31&type=chunk) China's Aggregate Financial Indicators as of June 2025 | Indicator (June end) | Balance (trillion yuan) | YoY Growth | | :--- | :--- | :--- | | Broad Money Supply (M2) | 330.29 | 8.3% | | Outstanding Aggregate Financing to the Real Economy | 430.22 | 8.9% | | RMB Loan Balance | 268.56 | 7.1% | | RMB Deposit Balance | 320.17 | 8.3% | | Various Bonds Issued in Bond Market | 44.5 | 16.7% | - Financial regulatory policies promoted high-quality development of the banking sector, establishing a comprehensive statistical system for the 'Five Key Financial Initiatives,' formulating implementation plans for technology finance, green finance, inclusive finance, and pension finance, and strengthening supervision over commercial banks' agency sales and internet lending businesses[33](index=33&type=chunk) Key Commercial Bank Indicators as of June 2025 | Commercial Bank Indicator (June end) | Amount/Ratio | YoY Growth/Change | | :--- | :--- | :--- | | Total Assets (RMB and Foreign Currency) | 402.89 trillion yuan | 8.9% | | Non-Performing Loan Balance | 3.43 trillion yuan | - | | Non-Performing Loan Ratio | 1.49% | - | | Provision Coverage Ratio | 211.97% | - | | Capital Adequacy Ratio | 15.58% | - | [Financial Statement Analysis](index=19&type=section&id=6.2%20Financial%20Statement%20Analysis) [Income Statement Item Analysis](index=20&type=section&id=6.2.1%20Income%20Statement%20Item%20Analysis) In H1 2025, net profit decreased by 1.5% to 168.803 billion yuan, while operating income grew by 1.6% to 427.092 billion yuan, driven by increased non-interest income despite a slight decline in net interest income 2025 H1 Income Statement Key Item Changes | Indicator (RMB million) | 2025 Jan-Jun | 2024 Jan-Jun | Change Amount | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Net Profit | 168,803 | 171,296 | (2,493) | (1.5) | | Operating Income | 427,092 | 420,499 | 6,593 | 1.6 | | Net Interest Income | 313,576 | 313,950 | (374) | (0.1) | | Non-Interest Income | 113,516 | 106,549 | 6,967 | 6.5 | | Operating Expenses | 228,186 | 224,083 | 4,103 | 1.8 | | Business and Management Expenses | 102,922 | 99,453 | 3,469 | 3.5 | | Credit Impairment Losses | 104,007 | 101,809 | 2,198 | 2.2 | | Income Tax Expense | 30,205 | 25,888 | 4,317 | 16.7 | 2025 H1 Profitability Indicator Changes | Profitability Indicator (%) | 2025 Jan-Jun | 2024 Jan-Jun | Change (basis points) | | :--- | :--- | :--- | :--- | | Annualized Return on Average Total Assets | 0.67 | 0.75 | -8 | | Annualized Weighted Average Return on Equity | 8.82 | 9.53 | -71 | | Annualized Net Interest Spread | 1.16 | 1.24 | -8 | | Annualized Net Interest Margin | 1.30 | 1.43 | -13 | | Cost-to-Income Ratio | 24.10 | 23.65 | +45 | - Net interest income decreased by **0.1%** year-on-year, primarily due to factors such as LPR reduction, adjustment of existing mortgage rates, and changes in deposit maturity structure, leading to a **decline of 8 basis points in net interest spread** and **13 basis points in net interest margin** respectively[36](index=36&type=chunk) - Interest income from customer loans and advances decreased by **10.4%** year-on-year, mainly due to a **60 basis point decline in average yield**, partially offset by an **8.3% increase in average balance**[41](index=41&type=chunk) - Interest income from investments increased by **6.5%** year-on-year, primarily benefiting from a **21.6% increase in average investment balance**, partially offsetting the **39 basis point decline in average yield**[45](index=45&type=chunk) - Interest expense on deposits decreased by **17.1%** year-on-year, mainly due to a **39 basis point

[Important Notice](index=2&type=section&id=Important%20Notice) This report guarantees the truthfulness and completeness of its content, notes unaudited financials, no profit distribution, and highlights investment risks - Company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[3](index=3&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - During the reporting period, the company will not distribute profits or convert capital reserves into share capital[6](index=6&type=chunk) - The company has thoroughly analyzed and described the major risks it may face in this report, and advises investors to be aware of investment risks[6](index=6&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key terms, company entities, and controlling parties for clear report understanding - This section clarifies that "Company, the Company, Huluwa, Huluwa Shares" all refer to Hainan Huluwa Pharmaceutical Group Co., Ltd[11](index=11&type=chunk) - Lists major subsidiaries such as Hainan Huluwa Pharmaceutical, Huluwa Technology, Guangxi Weiwei, and controlling shareholder Hainan Huluwa Investment and actual controllers Liu Jingping and Tang Xudong couple[11](index=11&type=chunk) [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) Overview of company information, stock changes to "ST Huluwa", and significant declines in revenue and net profit [I. Company Information](index=4&type=section&id=I.%20Company%20Information) Hainan Huluwa Pharmaceutical Group Co., Ltd., known as "Huluwa", is led by legal representative Liu Jingping - The company's Chinese name is Hainan Huluwa Pharmaceutical Group Co., Ltd., and its Chinese abbreviation is Huluwa[13](index=13&type=chunk) - The company's legal representative is Liu Jingping[13](index=13&type=chunk) [II. Contact Person and Contact Information](index=4&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) Provides contact details for the Board Secretary and Securities Affairs Representative - The Board Secretary is Wang Qingtao, and the Securities Affairs Representative is Wang Haiyan, both with the contact address at No. 30, Andu Road 1, Xiuying District, Haikou City, Hainan Province[14](index=14&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) Company's registered and office addresses, website, and email remained unchanged during the reporting period - The company's registered address is No. 8, Yaogu Fourth Road, Phase II, Yaogu Industrial Park, Haikou National High-tech Zone, Haikou City, Hainan Province, and its office address is No. 30, Andu Road 1, Xiuying District, Haikou City, Hainan Province[15](index=15&type=chunk) - There were no changes in the company's basic information during the reporting period[15](index=15&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) Specifies designated newspapers and website for information disclosure, with no changes in custody locations - The company designates Shanghai Securities News, China Securities Journal, Securities Daily, and Securities Times as information disclosure newspapers[16](index=16&type=chunk) - The website address for publishing the semi-annual report is www.sse.com.cn[16](index=16&type=chunk) [V. Brief Introduction to Company Stock](index=5&type=section&id=V.%20Brief%20Introduction%20to%20Company%20Stock) Company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation changed to "ST Huluwa" - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[17](index=17&type=chunk) - The stock abbreviation has changed from "Huluwa" to "ST Huluwa", with stock code 605199[17](index=17&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=5&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Operating revenue and net profit significantly declined, while operating cash flow improved due to reduced payments 2025 Semi-Annual Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Year (Adjusted) | % Change from Prior Year | | :------------------ | :----------------------- | :-------------------- | :----------------------- | | Operating Revenue | 507,670,912.42 | 888,949,451.28 | -42.89 | | Total Profit | 8,178,289.04 | 50,203,025.62 | -83.71 | | Net Profit Attributable to Shareholders of Listed Company | 2,409,780.66 | 41,092,478.86 | -94.14 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | -18,781,607.98 | 4,530,905.84 | N/A | | Net Cash Flow from Operating Activities | 14,154,022.67 | -151,118,833.90 | N/A | 2025 Semi-Annual Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year (Adjusted) | % Change from Prior Year | | :----------------------- | :----------------------- | :-------------------- | :----------------------- | | Basic Earnings Per Share (Yuan/Share) | 0.01 | 0.10 | -90.00 | | Diluted Earnings Per Share (Yuan/Share) | 0.01 | 0.10 | -90.00 | | Basic Earnings Per Share (Excluding Non-recurring Items) (Yuan/Share) | -0.05 | 0.01 | N/A | | Weighted Average Return on Net Assets (%) | 0.34 | 3.96 | Decrease by 3.62 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | -2.68 | 0.44 | Decrease by 3.12 percentage points | - Operating revenue decreased by **42.89%** year-on-year, primarily due to reduced sales of respiratory system drugs[20](index=20&type=chunk) - Net profit attributable to shareholders of the listed company decreased by **94.14%** year-on-year, mainly due to the decrease in operating revenue[21](index=21&type=chunk) - Net cash flow from operating activities increased compared to the prior year, mainly due to reduced operating payments[21](index=21&type=chunk) [IX. Non-recurring Gains and Losses Items and Amounts](index=6&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses were 21.19 million yuan, primarily from government subsidies 2025 Semi-Annual Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (Yuan) | | :---------------------------------- | :------------ | | Disposal gains/losses of non-current assets | -323,740.80 | | Government subsidies recognized in current profit and loss | 21,625,725.13 | | Other non-operating income and expenses apart from the above | -57,072.79 | | Other gains and losses meeting the definition of non-recurring items | 135,164.90 | | Less: Income tax impact | 48,967.49 | | Minority interest impact (after tax) | 139,720.31 | | Total | 21,191,388.64 | [Section III Management Discussion and Analysis](index=7&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) Discusses operating performance, industry trends, core competencies, and management's strategic responses to market challenges [I. Description of the Company's Industry and Main Business During the Reporting Period](index=7&type=section&id=I.%20Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) Company focuses on children's health, with products in traditional Chinese medicine, chemical drugs, and nutritional supplements [(I) Company's Main Business Operations](index=7&type=section&id=(I)%20Company%27s%20Main%20Business%20Operations) Pharmaceutical manufacturing with a "children's full life cycle health" strategy, strong pediatric product portfolio, and API expansion - The company is a pharmaceutical manufacturing enterprise with integrated R&D, production, and sales capabilities in China, with a core strategy of "children's full life cycle health"[27](index=27&type=chunk) - The company has **111** in-production and in-sale products, of which **54** have clear pediatric dosages, covering common diseases in children aged 0-14[29](index=29&type=chunk) - Star products Xiao'er Feire Kecuan Granules and Changyanning Granules/Capsules won awards such as "2024 China Pharmacy Selected Brand"[29](index=29&type=chunk) - The company actively expands its API front-end chemical intermediate business by controlling Jiangxi Rongxing Pharmaceutical Co., Ltd., and is advancing the construction of API production workshops[31](index=31&type=chunk) [(II) Company's Main Operating Model](index=11&type=section&id=(II)%20Company%27s%20Main%20Operating%20Model) Centralized management, specialized operations, balanced procurement, "production based on sales" model, and diversified sales channels - The company implements centralized group management, with each subsidiary operating professionally; the headquarters is responsible for strategic planning, and subsidiaries for specific business implementation[35](index=35&type=chunk) - The procurement model is centrally managed by the procurement department, selecting high-quality suppliers and conducting strict on-site inspections for key materials such as traditional Chinese medicinal herbs[36](index=36&type=chunk) - The production model combines "production based on sales" and "reasonable inventory"; the Meian Children's Pharmaceutical Intelligent Manufacturing Factory has passed GMP certification, achieving automated, information-based, and intelligent production[37](index=37&type=chunk)[38](index=38&type=chunk) - The sales model primarily includes direct sales, traditional distribution, and distributor models, covering a wide marketing network including chain pharmacies, medical institutions, and e-commerce platforms[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [(III) Market Position of the Company's Main Products](index=12&type=section&id=(III)%20Market%20Position%20of%20the%20Company%27s%20Main%20Products) Strong position in pediatric drugs, with exclusive products and extensive national essential drug and medical insurance coverage - The company specializes in pediatric drugs, primarily traditional Chinese medicine with rapidly developing chemical drugs, focusing on respiratory, digestive, and systemic anti-infective medications[42](index=42&type=chunk) - Xiao'er Feire Kecuan Granules (4g), Changyanning Capsules (0.3g), and Changyanning Granules (2g) are exclusive specification products[43](index=43&type=chunk) - Xiao'er Feire Kecuan Granules won honors such as "2023-2024 China Pharmaceutical Retail Market Potential Brand", and Changyanning Granules won honors such as "2024 China OTC Product Comprehensive Statistical Ranking Second Place"[43](index=43&type=chunk) - The company has **63** drugs included in the National Essential Drug List and **105** drugs in the National Medical Insurance Catalog[43](index=43&type=chunk) [(IV) Industry Overview](index=13&type=section&id=(IV)%20Industry%20Overview) Pharmaceutical industry faces policy adjustments, TCM grows with standardization, and pediatric drug market expands with policy support - From January to June 2025, operating revenue of pharmaceutical manufacturing enterprises above designated size decreased by **1.2%** year-on-year, and total profit decreased by **2.8%** year-on-year, indicating an overall adjustment trend in the industry[45](index=45&type=chunk) - The National Healthcare Security Administration further expanded the scope of centralized procurement, optimized the basic medical insurance catalog, and strengthened refined supervision of medical insurance funds[45](index=45&type=chunk) - The traditional Chinese medicine industry is steadily advancing under continuous policy support from the "14th Five-Year Plan"; the National Administration of Traditional Chinese Medicine issued the "Traditional Chinese Medicine Standardization Action Plan (2024-2026)", aiming to complete the formulation of **180** domestic standards and **30** international standards by the end of 2026[47](index=47&type=chunk) - Policy support for pediatric traditional Chinese medicine continues to increase, with multiple provinces raising the medical insurance reimbursement ratio for pediatric traditional Chinese medicine, and the priority review system for pediatric drugs remains effective[49](index=49&type=chunk) - The company has achieved results in developing suitable pediatric dosages and innovative drugs; Terbutaline Sulfate Inhalation Solution has been approved, Phase III clinical trials for Xiao'er Huaji Granules have completed enrollment, and Phase II clinical trials for Xiao'er Malong Zhike Pingchuan Granules have successfully concluded[52](index=52&type=chunk) [(V) Industry Cyclical Characteristics](index=15&type=section&id=(V)%20Industry%20Cyclical%20Characteristics) Pharmaceutical industry has rigid demand with no obvious cycles, but specific drug sales show seasonality - The pharmaceutical industry has strong rigid demand and no obvious cyclical changes[54](index=54&type=chunk) - Sales of specific drug varieties exhibit some seasonality due to the high incidence period of their indications being affected by seasonal and environmental factors[54](index=54&type=chunk) [(VI) Company's Industry Position](index=15&type=section&id=(VI)%20Company%27s%20Industry%20Position) Prominent in pediatric medicine, recognized as a top enterprise in TCM and Hainan's manufacturing sector - The company is a Vice Chairman Unit of the Pediatric Branch of the China Association of Traditional Chinese Medicine and a Vice President Unit of the Pediatric Branch of the China Ethnic Medicine Association[55](index=55&type=chunk) - The company ranked **20th** among the Top 50 Manufacturing Enterprises in Hainan Province in 2024 and among the Top 50 Enterprises in Comprehensive Competitiveness of Traditional Chinese Medicine Industry in 2024[55](index=55&type=chunk) - Received multiple honors such as "Leading Force China Pharmaceutical High-Quality Development Achievement Enterprise" and "Excellent Brand Enterprise of Chinese Ethnic Medicine"[55](index=55&type=chunk) [II. Discussion and Analysis of Operating Performance](index=16&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) H1 2025 saw revenue and profit decline, prompting R&D, market, digital, quality, and risk control improvements [(I) Continuously Advancing R&D Innovation](index=16&type=section&id=(I)%20Continuously%20Advancing%20R%26D%20Innovation) Focused on "precise R&D" in pediatric areas, with new drug approvals, clinical trials, and generic drug evaluations - The company holds **341** drug approvals, with **7** Class 1 innovative drugs and **9** Class 2 new drugs (including 3 traditional Chinese medicines and 6 chemical drugs) at various R&D stages[58](index=58&type=chunk) - Feire Kecuan Granules (Class 2.3 improved traditional Chinese medicine new drug) received the "Drug Clinical Trial Approval Notice", adding "influenza with heat-toxin invading the lung syndrome" indication and "adult" applicable population[58](index=58&type=chunk) - The company and its subsidiaries successfully obtained **4** drug registration approvals, including Salbutamol Sulfate Inhalation Solution, Esomeprazole Sodium for Injection, Calcitriol Soft Capsules, and Pregabalin Oral Solution[59](index=59&type=chunk) - **3** varieties passed the generic drug quality and efficacy consistency evaluation, and production applications for **25

Section I Definitions This section provides definitions of key terms used throughout the report to ensure clarity and consistent understanding [Common Terms Definitions](index=4&type=section&id=Common%20Terms%20Definitions) This chapter defines common terms used in the report, including company and subsidiary names, regulatory bodies, laws, and the reporting period, to ensure clear understanding of the content - The reporting period is defined as the accounting period from January 1, 2025, to June 30, 2025[16](index=16&type=chunk) Section II Company Profile and Key Financial Indicators This section presents the company's fundamental information and key financial performance metrics, highlighting significant growth in profitability driven by investment income [Company Information](index=4&type=section&id=I.%20Company%20Information) This section provides the company's basic registration details, including its Chinese name, abbreviation, foreign name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 辽宁成大股份有限公司 | | Chinese Abbreviation | 辽宁成大 | | Foreign Name | LIAONING CHENG DA CO., LTD. | | Legal Representative | Xu Biao | [Contacts and Contact Information](index=4&type=section&id=II.%20Contacts%20and%20Contact%20Information) This section provides contact details for the company's Board Secretary and Securities Affairs Representative, along with its registered and office addresses, website, and email Company Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | Qiu Chuang | 0411-82512731 | lncd@chengda.com.cn | | Securities Affairs Representative | Liu Tong | 0411-82512618 | liutong@chengda.com.cn | - The company's website is http://www.chengda.com.cn, and its email address is lncd@chengda.com.cn[17](index=17&type=chunk) [Company Stock Overview](index=5&type=section&id=III.%20Company%20Stock%20Overview) This section briefly introduces the company's A-share listing exchange, stock abbreviation, and code Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | 辽宁成大 | 600739 | [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=V.%20Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section discloses the company's key accounting data and financial indicators for the reporting period, showing significant year-on-year growth in total profit, net profit, and earnings per share, primarily due to increased investment income Key Accounting Data (January-June 2025) | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,348,104,368.57 yuan | 5,392,923,890.65 yuan | -0.83 | | Total Profit | 816,118,738.72 yuan | 492,715,179.96 yuan | 65.64 | | Net Profit Attributable to Shareholders of Listed Company | 717,566,617.13 yuan | 459,437,050.86 yuan | 56.18 | | Net Cash Flow from Operating Activities | -139,968,327.17 yuan | -155,568,480.67 yuan | N/A | Key Financial Indicators (January-June 2025) | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.4714 | 0.3018 | 56.20 | | Diluted Earnings Per Share (yuan/share) | 0.4714 | 0.3018 | 56.20 | | Weighted Average Return on Net Assets (%) | 2.42 | 1.57 | Increased by 0.85 percentage points | - The year-on-year growth in total profit, net profit attributable to shareholders, net profit excluding non-recurring gains and losses, basic earnings per share, and diluted earnings per share is primarily due to increased investment income[23](index=23&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=VII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling **5,715,110.77 yuan** Non-Recurring Gains and Losses Items and Amounts (Unit: Yuan) | Non-Recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -363,438.77 | | Government Grants Recognized in Current Profit and Loss | 9,592,233.96 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 7,299,412.02 | | Gains and Losses from Entrusted Investment or Asset Management | 11,963,899.60 | | Reversal of Impairment Provisions for Receivables Subject to Individual Impairment Testing | 6,468,807.00 | | Other Non-Operating Income and Expenses Apart from the Above | -16,140,315.56 | | Total | 5,715,110.77 | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, core competitiveness, and potential risks across its diverse business segments [Explanation of Company's Industry and Main Business Operations During the Reporting Period](index=7&type=section&id=I.%20Explanation%20of%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) During the reporting period, the company's business was divided into four major segments: pharmaceutical and healthcare, financial investment, domestic and international trade, and energy development, each facing distinct market environments and challenges - The company's business is divided into four major segments: pharmaceutical and healthcare, financial investment, domestic and international trade, and energy development[28](index=28&type=chunk) [Pharmaceutical and Healthcare](index=7&type=section&id=(I)%20Pharmaceutical%20and%20Healthcare) This segment, comprising biopharmaceuticals and medical services, focuses on vaccines and equity in a tertiary hospital, maintaining market leadership through innovation despite fierce competition - The biopharmaceutical business is managed by subsidiary Chengda Bio, with main products being human rabies vaccine (Vero cell) and human Japanese encephalitis inactivated vaccine (Vero cell)[28](index=28&type=chunk) - Chengda Bio's human rabies vaccine has maintained a leading market share for over a decade, and its human Japanese encephalitis inactivated vaccine is currently the only one available for sale in China[28](index=28&type=chunk) - Chengda Bio actively promotes its vaccine export strategy, providing products and services to over 30 countries and regions worldwide[28](index=28&type=chunk) [Financial Investment](index=7&type=section&id=(II)%20Financial%20Investment) This segment includes long-term investments and fund operations, primarily in GF Securities and China United Insurance, both leading in their respective sectors with promising future prospects - The financial investment business is divided into long-term investment and fund operations, with long-term investments involving equity stakes in GF Securities and China United Insurance[30](index=30&type=chunk) - GF Securities and China United Insurance are both industry leaders in their respective fields, holding significant strategic importance for promoting industrial-financial synergy and enhancing company value[30](index=30&type=chunk) [Domestic and International Trade](index=8&type=section&id=(III)%20Domestic%20and%20International%20Trade) This segment, conducted by three subsidiaries, primarily involves textile and apparel exports and bulk commodity trading, showing stable growth in textile exports despite fluctuating commodity prices - Domestic and international trade business primarily involves textile and apparel exports and bulk commodity trading, carried out by three subsidiaries: Chengda International, Chengda Trade, and Chengda Steel[32](index=32&type=chunk) - In the first half of the year, the domestic steel industry was in a downturn, with insufficient effective market demand and continuous product price declines[30](index=30&type=chunk) - In the first half of the year, corn prices continued to rise due to reduced supply from producing areas and increased demand from downstream deep processing enterprises[31](index=31&type=chunk) [Energy Development](index=8&type=section&id=(IV)%20Energy%20Development) This segment, managed by Xinjiang Baoming, focuses on oil shale mining and shale oil production, facing extended production halts due to land use permit issues and international crude oil price volatility - The energy development business is primarily managed by Xinjiang Baoming, engaged in oil shale mining, shale oil production, and sales[33](index=33&type=chunk) - Xinjiang Baoming has extended its production halt, initially for nine months, due to issues with new mining and spoil ground land use permits[36](index=36&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company's operating revenue slightly decreased, but net profit attributable to shareholders surged by **56.18%**, primarily driven by strong financial investment performance, while other segments showed mixed results Overview of Operating Performance in H1 2025 | Indicator | Amount (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 5.348 | -0.83 | | Net Profit Attributable to Shareholders of Listed Company | 0.718 | 56.18 | [Pharmaceutical and Healthcare Segment](index=9&type=section&id=(I)%20Pharmaceutical%20and%20Healthcare%20Segment) This segment's operating revenue decreased by **19.74%** to **707 million yuan**, with net profit falling by **46.41%** to **118 million yuan**, mainly due to intensified domestic vaccine market competition Pharmaceutical and Healthcare Segment Performance (H1 2025) | Indicator | Amount (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 0.707 | -19.74 | | Net Profit | 0.118 | -46.41 | - The decline in performance is primarily due to intensified competition in the domestic vaccine market and decreased sales revenue from human rabies vaccine and Japanese encephalitis inactivated vaccine[35](index=35&type=chunk) [Financial Investment Segment](index=9&type=section&id=(II)%20Financial%20Investment%20Segment) This segment performed strongly, with GF Securities' investment income growing by **53.19%** to **1.076 billion yuan** and China United Insurance's investment income increasing by **143.94%** to **86.3005 million yuan**, benefiting from a recovering equity market Investment Income of Key Investee Companies in Financial Investment Segment (H1 2025) | Company Name | Investment Income (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | | GF Securities | 1.076 | 53.19 | | China United Insurance | 0.0863 | 143.94 | - GF Securities' wealth management business continued to contribute stable revenue with year-on-year growth, its trading and institutional businesses capitalized on market opportunities for favorable returns, and its investment management business remained a top performer in the industry[35](index=35&type=chunk) - China United Insurance achieved a slight increase in premium income, with improved operating efficiency for its property insurance company, and a significant year-on-year increase in consolidated net profit, benefiting from a recovering equity market and optimized equity asset allocation structure[35](index=35&type=chunk) [Domestic and International Trade Segment](index=9&type=section&id=(III)%20Domestic%20and%20International%20Trade%20Segment) This segment achieved operating revenue of **4.634 billion yuan**, a **3.20%** year-on-year increase, and net profit of **22.3785 million yuan**, up **40.52%**, primarily driven by significant profit growth in textile and apparel exports Domestic and International Trade Segment Performance (H1 2025) | Indicator | Amount (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 4.634 | 3.20 | | Net Profit | 0.0223785 | 40.52 | - Significant profit growth in the textile and apparel export business is the main reason for the increase in net profit[36](index=36&type=chunk) [Energy Development Segment](index=10&type=section&id=(IV)%20Energy%20Development%20Segment) This segment's operating revenue was only **1.33 million yuan**, with a net loss of **329 million yuan**, as controlling subsidiary Xinjiang Baoming continued its production halt due to new land use permit issues Energy Development Segment Performance (H1 2025) | Indicator | Amount (ten thousand yuan) | Net Profit (billion yuan) | | :--- | :--- | :--- | | Operating Revenue | 133 | -0.329 | - Xinjiang Baoming has extended its production halt, initially for nine months, due to not obtaining full permits for the new land required for the project[36](index=36&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=10&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness lies in its excellent corporate culture, professional talent team, leading R&D technology, strong brand influence, stable customer and supply chain resources, and robust financing advantages - The company embraces the vision of 'Creating a Harmonious Century-Old Chengda' and core values of 'Integrity, Benevolence, and Harmony,' fostering a 'merit-based' culture that values practical work, rewards contributions, and encourages responsibility[37](index=37&type=chunk) - The company has built highly effective professional teams across its business areas, with the biopharmaceutical domestic sales team covering the entire country and the international sales team reaching over 30 countries and regions[38](index=38&type=chunk) - Chengda Bio possesses core process platform technology for large-scale vaccine production using bioreactors and has established technology platforms for bacterial, viral, multi-component, multi-valent, and recombinant protein vaccines[39](index=39&type=chunk) - 'Chengda Suda' (human rabies vaccine) sales consistently rank first, with over **500 million doses** administered cumulatively; 'Chengda Libao' (Japanese encephalitis inactivated vaccine) product quality has reached 'internationally advanced, domestically leading' levels[40](index=40&type=chunk) - The company maintains long-term stable cooperative relationships with numerous high-quality clients, and its domestic and international trade segment integrates supply chain resources to create a centralized operating model[41](index=41&type=chunk) - The company boasts a sound financial structure, diversified financing channels, strong cooperative relationships with financial institutions, and continuously optimizes its debt structure while controlling funding costs[42](index=42&type=chunk) [Key Operating Performance During the Reporting Period](index=12&type=section&id=IV.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes the company's financial statement item changes, asset and liability status, investment situation, and operating performance of major holding and investee companies, showing increased profitability despite slightly lower revenue [Main Business Analysis](index=12&type=section&id=(I)%20Main%20Business%20Analysis) During the reporting period, the company's operating revenue slightly decreased due to intensified domestic vaccine market competition, while operating costs increased, and total profit and net profit significantly grew due to investment income Analysis of Changes in Financial Statement Items (January-June 2025) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,348,104,368.57 | 5,392,923,890.65 | -0.83 | | Total Profit | 816,118,738.72 | 492,715,179.96 | 65.64 | | Net Profit Attributable to Shareholders of Listed Company | 717,566,617.13 | 459,437,050.86 | 56.18 | | Net Cash Flow from Operating Activities | -139,968,327.17 | -155,568,480.67 | N/A | | R&D Expenses | 121,438,891.32 | 149,426,599.51 | -18.73 | - The year-on-year decrease in operating revenue is primarily due to the intensified competition in the domestic biopharmaceutical vaccine market, leading to a decline in domestic sales revenue[43](index=43&type=chunk) - The year-on-year decrease in R&D expenses is mainly due to reduced material input, technical service fees, and clinical expenses as biopharmaceutical R&D projects progressed[43](index=43&type=chunk) [Analysis of Assets and Liabilities](index=12&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At period-end, total assets and net assets attributable to shareholders increased, with significant changes in several asset and liability items influenced by increased wealth management, new business, and financing structure adjustments Changes in Asset and Liability Status (Unit: Yuan) | Item Name | Current Period End Balance | Prior Year End Balance | Change Rate from Prior Year End (%) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 1,415,974,512.06 | 976,498,924.38 | 45.01 | | Prepayments | 548,112,088.54 | 399,032,104.76 | 37.36 | | Other Receivables | 95,159,693.49 | 59,521,449.56 | 59.87 | | Contract Liabilities | 164,943,702.78 | 34,818,651.17 | 373.72 | | Other Current Liabilities | 2,543,074,062.59 | 1,929,461,851.71 | 31.80 | | Long-Term Borrowings | 1,545,600,000.00 | 1,088,500,000.00 | 41.99 | - Overseas assets amounted to **82,976,762.00 yuan**, accounting for **0.17%** of total assets[47](index=47&type=chunk) - At period-end, major restricted assets included monetary funds of **40,513,284.77 yuan** (deposits and frozen accounts), a **1.2 billion yuan** credit line secured by office building mortgage, and **66 million yuan** in equity pledge guarantees for an investee company[48](index=48&type=chunk) [Analysis of Investment Status](index=14&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the reporting period, the company's investment amount decreased by **64.57%**, holding diverse financial assets measured at fair value, and effectively mitigating risks through hedging activities Changes in Investment Amount During the Reporting Period | Indicator | Amount (ten thousand yuan) | Change Rate (%) | | :--- | :--- | :--- | | Investment Amount During Reporting Period | 225.00 | - | | Change in Investment Amount | Decreased by 410.00 | - | | Investment Amount in Prior Period | 635.00 | - | | Change Rate of Investment Amount | - | Decreased by 64.57 | Period-End Financial Assets Measured at Fair Value (Unit: Yuan) | Asset Category | Period-End Balance | | :--- | :--- | | Stocks | 216.00 | | Private Equity Funds | 239,023,993.43 | | Futures | -46,652.00 | | Derivative Instruments | 200,446.00 | | Equity Investments | 19,451,296.06 | | Fund Investments | 3,172,748.69 | | Wealth Management Products | 1,412,601,101.37 | | Total | 1,674,403,149.55 | - The company conducts commodity futures business, fully leveraging the risk-hedging function of futures to effectively mitigate bulk commodity price fluctuation risks, with hedging effects meeting expectations[55](index=55&type=chunk) - The company conducts foreign exchange derivative businesses such as USD and JPY forward settlements, locking in target exchange rates to secure order profits and mitigate operational risks from exchange rate fluctuations, with hedging effects meeting expectations[55](index=55&type=chunk) [Analysis of Major Holding and Investee Companies](index=21&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Investee%20Companies) The company deregistered one subsidiary, with major holding and investee companies showing varied operating performance, notably Xinjiang Baoming Mining Co., Ltd. with a net loss of **329 million yuan** - During the reporting period, the company deregistered its subsidiary Liaoning Xindongneng Technology Development Consulting Service Co., Ltd.[59](index=59&type=chunk) Overview of Performance of Major Holding and Investee Companies (H1 2025, Unit: ten thousand yuan) | Company Name | Operating Revenue | Net Profit | | :--- | :--- | :--- | | Liaoning Chengda International Trade Co., Ltd. | 62,821.63 | 1,453.88 | | Liaoning Chengda Bio Co., Ltd. | 70,677.73 | 12,229.47 | | Xinjiang Baoming Mining Co., Ltd. | 133.06 | -32,887.64 | | GF Securities Co., Ltd. | 1,539,812.22 | 700,550.74 | | China United Insurance Group Co., Ltd. | 3,521,645.54 | 53,715.71 | [Structured Entities Controlled by the Company](index=21&type=section&id=(VII)%20Structured%20Entities%20Controlled%20by%20the%20Company) Details of structured entities controlled by the company are provided in Financial Report Note X, Interests in Other Entities - Information on structured entities controlled by the company can be found in Section VIII Financial Report, Note X, Interests in Other Entities[60](index=60&type=chunk) [Potential Risks](index=22&type=section&id=V.%20Potential%20Risks) The company faces multiple challenges including industrial policy and industry changes, as well as operational risks across its segments, for which it has formulated corresponding countermeasures [Risks Arising from Industrial Policies and Industry Changes](index=22&type=section&id=1.%20Risks%20Arising%20from%20Industrial%20Policies%20and%20Industry%20Changes) The company's main businesses are highly competitive and impacted by economic conditions and policy changes, with biopharmaceutical, trade, and energy segments facing specific risks from policy adjustments, market volatility, and stricter regulations - Dynamic adjustments in biopharmaceutical industrial policies and profound evolution of the industry's competitive landscape may significantly impact the market competitiveness and profitability sustainability of the company's vaccine business, including risks such as declining demand for human rabies vaccine, changes in industry policies (e.g., inclusion in national immunization programs), and obstacles to batch release[62](index=62&type=chunk) - International economic uncertainties have significantly increased, with escalating geopolitical conflicts, prevalent unilateralism and protectionism, spreading anti-globalization trends, heightened global trade friction risks impacting supply chain stability; increased exchange rate volatility risks, insufficient domestic effective demand, and weak expectations for bulk commodity prices[63](index=63&type=chunk) - International crude oil prices may maintain a low-level volatile trend; the state has strengthened supervision and guidance on safety production for mining enterprises, further raising safety production standards; coal output continues to increase, and the coal market is expected to remain relatively stable or show a steady decline[63](index=63&type=chunk) [Operational Risks](index=22&type=section&id=2.%20Operational%20Risks) The pharmaceutical and healthcare segment faces product concentration and market competition risks; domestic and international trade confronts credit and cargo loss risks; and energy development deals with land use permit uncertainties and continuous losses, with the company having established multi-level risk control systems - Chengda Bio faces the risk of relatively concentrated product structure, with its main revenue and profit dependent on human rabies vaccine and Japanese encephalitis inactivated vaccine[65](index=65&type=chunk) - The domestic and international trade industry is a fully market-oriented and highly competitive sector, with export trade generally facing significant pressure due to US tariff policies, and domestic steel and coal prices fluctuating downwards due to insufficient domestic effective demand, overcapacity in some industries, and severe internal competition[66](index=66&type=chunk) - Xinjiang Baoming still needs to complete relevant approval procedures for its required new land, and has not yet obtained full permits, leading to continuous losses, production below design capacity, and relatively tight cash flow[68](index=68&type=chunk) Section IV Corporate Governance, Environment, and Society This section details changes in corporate governance, including board and senior management, and outlines the company's environmental information disclosure and rural revitalization efforts [Changes in Company Directors and Senior Management](index=25&type=section&id=I.%20Changes%20in%20Company%20Directors%20and%20Senior%20Management) During the reporting period, the company's board of directors underwent re-election, resulting in changes to several director and senior management positions, including the chairman, directors, president, vice president, CFO, and board secretary - In February 2025, the company's board of directors underwent re-election[71](index=71&type=chunk) Overview of Changes in Directors and Senior Management | Name | Position Held | Change Type | | :--- | :--- | :--- | | Xu Biao | Chairman | Election | | Zhang Shanwei | Director, President | Election, Appointment | | Wang Lu | CFO | Appointment | | Ge Yu | Director, President | Departure | | Li Heng | Board Secretary | Departure | [Profit Distribution or Capital Reserve Conversion Plan](index=25&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) During the reporting period, the company's board of directors resolved that there is no profit distribution plan or capital reserve to share capital conversion plan for the current period - There is no profit distribution plan or capital reserve to share capital conversion plan for the current reporting period[6](index=6&type=chunk)[72](index=72&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=26&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company has two subsidiaries included in the list of enterprises required to disclose environmental information by law, with their reports available on designated websites Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Liaoning Chengda Bio Co., Ltd. | https://sthj.deing.cn:8180/Public/Enter/683500628914181 | | 2 | Chengda Bio (Benxi) Co., Ltd. | https://sthj.deing.cn:8180/Public/Enter/684090949255173 | [Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization](index=26&type=section&id=V.%20Specific%20Progress%20in%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization) The company highly values its social responsibilities, continuing targeted assistance to Wengshan Village by improving assistance mechanisms, visiting disadvantaged households, and leveraging the economic benefits of the assisted sheep farm - The company continues to provide targeted assistance to Wengshan Village, Diaoyu Town, Xifeng County, helping to consolidate local poverty alleviation achievements[74](index=74&type=chunk) - Key work in the first half included improving the normalized village-based assistance mechanism, actively visiting and providing holiday慰问 to over **60 disadvantaged households**, and assisting the Wengshan Village Committee in leveraging the economic benefits of the assisted sheep farm[74](index=74&type=chunk) Section V Significant Matters This section covers the fulfillment of commitments, integrity status, significant related party transactions, and major contracts, including guarantees, during the reporting period [Fulfillment of Commitments](index=27&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, all commitment-related parties, including the company's actual controller, shareholders, related parties, and the company itself, timely and strictly fulfilled their commitments, including those related to the spin-off and listing of Chengda Bio on the STAR Market - During the reporting period, the company and relevant parties timely and strictly fulfilled all commitment matters[76](index=76&type=chunk) - Commitments include the company's spin-off of Chengda Bio and its listing on the Shanghai Stock Exchange STAR Market[76](index=76&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=28&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, neither the company nor its controlling shareholder had unfulfilled effective court judgments or significant overdue debts, indicating a good integrity status - During the reporting period, neither the company nor its controlling shareholder had unfulfilled effective court judgments or significant overdue debts[78](index=78&type=chunk) [Significant Related Party Transactions](index=28&type=section&id=X.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in related party transactions with GF Securities Co., Ltd. for purchasing wealth management products, and disclosed the progress of financial assistance provided by Chengda Medical to its investee company Chengda Hospital, with a period-end balance of **9,925,249.97 yuan** - On April 24, 2025, the company convened the third meeting of the Eleventh Board of Directors and the second meeting of the Eleventh Board of Supervisors, which approved the 'Proposal on Purchasing Wealth Management Products from Related Party GF Securities Co., Ltd.'[81](index=81&type=chunk) - The period-end balance of financial assistance provided by Chengda Medical to its investee company Chengda Hospital was **9,925,249.97 yuan** (including interest), with an initial balance of **9,706,541.65 yuan**[80](index=80&type=chunk) [Significant Contracts and Their Fulfillment](index=29&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company's total external guarantees amounted to **1,675,605,000.00 yuan**, representing **5.58%** of its net assets, with Chengda Medical providing a **66 million yuan** guarantee for its associate Chengda Hospital Company's Total Guarantee Amount (Unit: Yuan) | Indicator | Amount | | :--- | :--- | | Total Guarantee Amount (A+B) | 1,675,605,000.00 | | Ratio of Total Guarantee Amount to Company's Net Assets (%) | 5.58 | | Total Guarantee Amount to Subsidiaries During Reporting Period | 609,605,000.00 | | Total Guarantee Balance to Subsidiaries at Period-End (B) | 1,609,605,000.00 | - Chengda Medical provided a joint liability guarantee and equity pledge guarantee for **66 million yuan** of the syndicated loan applied for by Chengda Hospital, using its **15%** equity stake in the investee company Chengda Hospital[84](index=84&type=chunk) Section VI Share Changes and Shareholder Information This section details changes in share capital, shareholder structure, and the controlling shareholder or actual controller during the reporting period [Changes in Share Capital](index=32&type=section&id=I.%20Changes%20in%20Share%20Capital) 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[87](index=87&type=chunk) [Shareholder Information](index=32&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **66,011** common shareholders, with Shaoguan Gaoteng Enterprise Management Co., Ltd. holding **16.20%** as the largest shareholder, with a portion of its shares pledged Total Number of Common Shareholders as of Period-End | Indicator | Number (households) | | :--- | :--- | | Total Common Shareholders | 66,011 | Top Ten Shareholders' Shareholding (as of Period-End) | Shareholder Name | Period-End Shareholding | Proportion (%) | Share Status | Pledged, Marked, or Frozen Quantity | | :--- | :--- | :--- | :--- | :--- | | Shaoguan Gaoteng Enterprise Management Co., Ltd. | 247,772,048 | 16.20 | Pledged | 130,220,000 | | Liaoning Provincial State-owned Assets Operation Co., Ltd. | 169,889,039 | 11.11 | Pledged | 50,600,000 | | Guangxi Xinyixin Business Service Co., Ltd. | 130,323,119 | 8.52 | Pledged | 104,223,840 | [Changes in Controlling Shareholder or Actual Controller](index=34&type=section&id=IV.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder changed to Shaoguan Gaoteng Enterprise Management Co., Ltd. on February 28, 2025, and since its ultimate controlling party has no controlling shareholder or actual controller, Liaoning Chengda currently has no actual controller - The company's controlling shareholder changed from State-owned Assets Company to Shaoguan Gaoteng Enterprise Management Co., Ltd. on February 28, 2025[93](index=93&type=chunk) - Liaoning Chengda currently has no actual controller, as its controlling shareholder Shaoguan Gaoteng is a wholly-owned subsidiary of Guangdong Private Investment Co., Ltd., which itself has no controlling shareholder or actual controller[93](index=93&type=chunk) Section VII Bond-Related Information This section provides comprehensive information on the company's corporate bonds and non-financial enterprise debt financing instruments, including their basic terms, significant related matters, and key financial indicators [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=35&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company issued multiple tranches of corporate bonds and non-financial enterprise debt financing instruments, including medium-term notes and short-term commercial papers, to meet financing needs, with period-end interest-bearing debt balances of **13.594 billion yuan** (non-consolidated) and **14.788 billion yuan** (consolidated), primarily comprising corporate credit bonds and bank loans Company's (Non-Consolidated) Interest-Bearing Debt Structure (Unit: billion yuan) | Interest-Bearing Debt Category | Within 1 Year (Inclusive) | Over 1 Year (Exclusive) | Total Amount | Proportion of Total Interest-Bearing Debt (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate Credit Bonds | 45.21 | 28.43 | 73.64 | 54.17 | | Bank Loans | 54.08 | 5.22 | 59.30 | 43.62 | | Non-Bank Financial Institution Loans | 0.00 | 3.00 | 3.00 | 2.21 | Company's Consolidated Interest-Bearing Debt Structure (Unit: billion yuan) | Interest-Bearing Debt Category | Within 1 Year (Inclusive) | Over 1 Year (Exclusive) | Total Amount | Proportion of Total Interest-Bearing Debt (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate Credit Bonds | 45.21 | 28.43 | 73.64 | 49.80 | | Bank Loans | 58.78 | 12.46 | 71.24 | 48.17 | | Non-Bank Financial Institution Loans | 0.00 | 3.00 | 3.00 | 2.03 | [Basic Information on Corporate Bonds](index=35&type=section&id=1.%20Basic%20Information%20on%20Corporate%20Bonds) The company issued two tranches of corporate bonds, '22 Chengda 01' and '24 Chengda 01', with a total outstanding balance of **2.2 billion yuan** and coupon rates of **6.00%** and **4.50%** respectively, both listed on the Shanghai Stock Exchange Basic Information on Corporate Bonds (Unit: billion yuan) | Bond Name | Abbreviation | Code | Bond Balance | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Liaoning Chengda Co., Ltd. 2022 Publicly Issued Corporate Bonds to Professional Investors (Tranche 1) | 22 Chengda 01 | 138562.SH | 6.00 | 6.00 | | Liaoning Chengda Co., Ltd. 2024 Publicly Issued Corporate Bonds to Professional Investors (Tranche 1) | 24 Chengda 01 | 240752.SH | 16.00 | 4.50 | [Significant Matters Related to Corporate Bonds During the Reporting Period](index=37&type=section&id=(IV)%20Significant%20Matters%20Related%20to%20Corporate%20Bonds%20During%20the%20Reporting%20Period) At period-end, the company's consolidated non-operating receivables and intercompany borrowings totaled **42 million yuan**, well below **10%** of consolidated net assets, while interest-bearing debt balances showed slight year-on-year changes - At the end of the reporting period, unrecovered non-operating receivables and intercompany borrowings totaled **42 million yuan**, accounting for **0.14%** of consolidated net assets[100](index=100&type=chunk) Changes in Interest-Bearing Debt Balance (Unit: billion yuan) | Indicator | Beginning of Reporting Period | End of Reporting Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Company's (Non-Consolidated) Interest-Bearing Debt Balance | 133.00 | 135.94 | 2.21 | | Company's Consolidated Interest-Bearing Debt Balance | 142.36 | 147.88 | 3.88 | [Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market](index=39&type=section&id=(V)%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments%20in%20the%20Interbank%20Bond%20Market) The company issued multiple tranches of medium-term notes and short-term commercial papers, totaling **5 billion yuan** with coupon rates ranging from **2.50%** to **5.70%**, all traded in the interbank market Basic Information on Non-Financial Enterprise Debt Financing Instruments (Unit: billion yuan) | Bond Name | Abbreviation | Code | Bond Balance | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Liaoning Chengda Co., Ltd. 2024 First Tranche Medium-Term Note | 24 Liaochengda MTN001 | 102483424.IB | 10.00 | 3.94 | | Liaoning Chengda Co., Ltd. 2023 First Tranche Private Placement Note | 23 Liaochengda PPN001 | 032380606.IB | 2.50 | 5.70 | | Liaoning Chengda Co., Ltd. 2023 Second Tranche Private Placement Note | 23 Liaochengda PPN002 | 032381260.IB | 2.50 | 5.00 | | Liaoning Chengda Co., Ltd. 2024 Third Tranche Short-Term Commercial Paper | 24 Liaochengda CP003 | 042400079.IB | 7.00 | 2.90 | | Liaoning Chengda Co., Ltd. 2025 First Tranche Short-Term Commercial Paper | 25 Liaochengda CP001 | 042500103.IB | 8.00 | 2.50 | | Liaoning Chengda Co., Ltd. 2025 First Tranche Super Short-Term Commercial Paper | 25 Liaochengda SCP001 | 012500417.IB | 6.00 | 3.25 | | Liaoning Chengda Co., Ltd. 2025 Second Tranche Super Short-Term Commercial Paper | 25 Liaochengda SCP002 | 012500423.IB | 6.00 | 2.88 | [Key Accounting Data and Financial Indicators](index=42&type=section&id=(VII)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) At period-end, both the company's current ratio and quick ratio slightly increased, while the asset-liability ratio saw a small rise, with net profit excluding non-recurring gains and losses and interest coverage ratio growing significantly Changes in Key Financial Indicators (Unit: Yuan) | Key Indicator | Current Period End/Current Period (Jan-Jun) | Prior Year End/Prior Period | Reason for Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.03 | 1.01 | Increased by 1.98% | | Quick Ratio | 0.87 | 0.85 | Increased by 2.35% | | Asset-Liability Ratio (%) | 32.61 | 32.31 | Increased by 0.30 percentage points | | Net Profit Excluding Non-Recurring Gains and Losses | 711,851,506.36 | 455,162,341.51 | 56.40% (primarily due to year-on-year increase in investment income from associates) | | Interest Coverage Ratio | 3.52 | 2.45 | 43.67% (primarily due to year-on-year increase in operating profit) | Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxation, and financial risks [Audit Report](index=43&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Financial Statements](index=43&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively reflecting the financial position and operating results [Consolidated Balance Sheet](index=43&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were **49.004 billion yuan**, with net assets attributable to shareholders at **30.050 billion yuan**, and total liabilities at **15.982 billion yuan** Key Data from Consolidated Balance Sheet (as of June 30, 2025, Unit: Yuan) | Item | Period-End Balance | Beginning Balance | | :--- | :--- | :--- | | Total Assets | 49,004,386,682.15 | 47,837,839,312.34 | | Total Equity Attributable to Parent Company Owners | 30,050,119,599.61 | 29,299,302,070.38 | | Total Liabilities | 15,982,388,705.53 | 15,455,279,166.22 | [Parent Company Balance Sheet](index=45&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were **41.944 billion yuan**, with total owners' equity at **27.492 billion yuan**, and total liabilities at **14.452 billion yuan** Key Data from Parent Company Balance Sheet (as of June 30, 2025, Unit: Yuan) | Item | Period-End Balance | Beginning Balance | | :--- | :--- | :--- | | Total Assets | 41,944,344,582.00 | 40,353,736,988.18 | | Total Owners' Equity | 27,492,137,549.72 | 26,302,179,467.47 | | Total Liabilities | 14,452,207,032.28 | 14,051,557,520.71 | [Consolidated Income Statement](index=47&type=section&id=Consolidated%20Income%20Statement) In the first half of 2025, the company's consolidated total operating revenue was **5.348 billion yuan**, with total profit at **816 million yuan**, and net profit attributable to parent company shareholders at **718 million yuan**, driven by investment income Key Data from Consolidated Income Statement (January-June 2025, Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 5,348,104,368.57 | 5,392,923,890.65 | | Total Profit | 816,118,738.72 | 492,715,179.96 | | Net Profit Attributable to Parent Company Shareholders | 717,566,617.13 | 459,437,050.86 | | Investment Income | 1,169,864,176.33 | 745,819,883.21 | | Basic Earnings Per Share (yuan/share) | 0.47 | 0.30 | [Parent Company Income Statement](index=49&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2025, the parent company's operating revenue was **2.7809 million yuan**, with net profit at **1.159 billion yuan**, and investment income being the primary source of profit, reaching **1.354 billion yuan** Key Data from Parent Company Income Statement (January-June 2025, Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Operating Revenue | 2,780,932.61 | 3,026,098.00 | | Net Profit | 1,159,034,198.20 | 751,170,432.07 | | Investment Income | 1,353,594,269.55 | 955,505,544.24 | [Consolidated Cash Flow Statement](index=51&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, the company's net cash flow from operating activities was **-140 million yuan**, net cash flow from investing activities **-158 million yuan**, and net cash flow from financing activities **74 million yuan**, resulting in a net decrease in cash and cash equivalents of **-224 million yuan** Key Data from Consolidated Cash Flow Statement (January-June 2025, Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -139,968,327.17 | -155,568,480.67 | | Net Cash Flow from Investing Activities | -157,541,807.16 | -302,727,733.99 | | Net Cash Flow from Financing Activities | 73,780,153.17 | -231,994,923.67 | | Net Increase in Cash and Cash Equivalents | -223,709,135.17 | -692,501,924.54 | [Parent Company Cash Flow Statement](index=53&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first half of 2025, the parent company's net cash flow from operating activities was **-179 million yuan**, net cash flow from investing activities **690 million yuan**, and net cash flow from financing activities **14 million yuan**, resulting in a net increase in cash and cash equivalents of **525 million yuan** Key Data from Parent Company Cash Flow Statement (January-June 2025, Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -179,272,328.24 | -319,433,361.71 | | Net Cash Flow from Investing Activities | 689,546,166.66 | 145,300,406.25 | | Net Cash Flow from Financing Activities | 14,088,524.27 | -207,942,089.90 | | Net Increase in Cash and Cash Equivalents | 524,640,075.97 | -382,527,511.39 | [Consolidated Statement of Changes in Owners' Equity](index=55&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2025, total owners' equity attributable to the parent company increased by **751 million yuan**, minority interests decreased by **111 million yuan**, and total owners' equity increased by **639 million yuan**, mainly due to comprehensive income and profit distribution Consolidated Changes in Owners' Equity (January-June 2025, Unit: Yuan) | Item | Beginning Balance | Amount of Change in Current Period | Period-End Balance | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Owners | 29,299,302,070.38 | 750,817,529.23 | 30,050,119,599.61 | | Minority Interests | 3,083,258,075.74 | -111,379,698.73 | 2,971,878,377.01 | | Total Owners' Equity | 32,382,560,146.12 | 639,437,830.50 | 33,021,997,976.62 | [Parent Company Statement of Changes in Owners' Equity](index=57&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2025, the parent company's total owners' equity increased by **1.190 billion yuan**, primarily due to comprehensive income and profit distribution Parent Company Changes in Owners' Equity (January-June 2025, Unit: Yuan) | Item | Beginning Balance | Amount of Change in Current Period | Period-End Balance | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 26,302,179,467.47 | 1,189,958,082.25 | 27,492,137,549.72 | [Company Basic Information](index=60&type=section&id=III.%20Company%20Basic%20Information) Liaoning Chengda Co., Ltd. was established in June 1993 and listed on the Shanghai Stock Exchange in August 1996, with a registered capital of **1,529,709,816.00 yuan** and a broad business scope - Liaoning Chengda Co., Ltd. was established in June 1993 and listed on the Shanghai Stock Exchange in August 1996[143](index=143&type=chunk) - As of the end of the reporting period, the company's registered capital was **1,529,709,816.00 yuan**, with Xu Biao as its legal representative[143](index=143&type=chunk) - The company's business scope includes self-operated and agency import/export of goods and technology, processing with supplied materials, 'three processing and one compensation' business, countertrade and re-export trade, overseas engineering contracting, labor dispatch, agricultural product procurement, fertilizer chain operations, traditional Chinese medicine cultivation, property leasing, warehousing services, and coal wholesale operations[144](index=144&type=chunk) [Basis of Financial Statement Preparation](index=60&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared in accordance with Enterprise Accounting Standards and relevant CSRC regulations, primarily on a going concern basis, except for one subsidiary - These financial statements are prepared in accordance with the Enterprise Accounting Standards, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[145](index=145&type=chunk) - Subsidiary Liaoning Chengda Animal Pharmaceutical Co., Ltd. is in a non-going concern state, and its financial statements are prepared using the lower of fair value and cost basis[145](index=145&type=chunk) - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period, found no matters affecting its going concern ability, and prepared its financial statements on a going concern basis[146](index=146&type=chunk) [Significant Accounting Policies and Estimates](index=61&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the significant accounting policies and estimates used in preparing financial statements, covering business combinations, financial instruments, revenue recognition, and deferred income tax, among other key areas - Upon initial recognition, the company classifies financial assets into three categories based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[179](index=179&type=chunk) - The company recognizes loss provisions for financial assets measured at amortized cost, debt investments measured at fair value through other comprehensive income, contract assets, lease receivables, loan commitments, and financial guarantee contracts, among others, based on expected credit losses[189](index=189&type=chunk) - The company recognizes revenue when it satisfies a performance obligation in a contract, which is when the customer obtains control of the relevant goods or services[264](index=264&type=chunk) - In accordance with relevant regulations, the company accrues safety production fees separately for mining and shale oil production, with mining fees based on open-pit mining volume, and shale oil production fees based on the previous year's actual operating revenue, using a progressive declining method for average monthly accrual[289](index=289&type=chunk) [Taxation](index=103&type=section&id=VI.%20Taxation) This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, and corporate income tax, along with high-tech enterprise and R&D expense preferential policies Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 0%, 3%, 6%, 9%-13% | | Urban Maintenance and Construction Tax | 7% or 5% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Property Tax | 1.2% or 12% | | Corporate Income Tax | 15%, 16.5%, 23.20% | - Liaoning Chengda Bio Co., Ltd. and Beijing Chengda Tianhe Bio-Technology Co., Ltd. are recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of **15%**[309](index=309&type=chunk)[310](index=310&type=chunk) - Chengda Bio benefits from the R&D expense super deduction policy, allowing **100%** pre-tax deduction for R&D expenses that do not form intangible assets, and **200%** pre-tax amortization for those that do form intangible assets based on cost[311](index=311&type=chunk) [Notes to Consolidated Financial Statement Items](index=105&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on various asset, liability, and owners' equity items in the consolidated financial statements, including monetary funds, accounts receivable, inventories, long-term equity investments, and bonds payable, with period-end balances and changes Period-End Balance of Monetary Funds (Unit: Yuan) | Item | Period-End Balance | | :--- | :--- | | Cash on Hand | 196,400.22 | | Bank Deposits | 5,750,463,129.05 | | Other Monetary Funds | 61,302,286.05 | | Total | 5,811,961,815.32 | - At period-end, restricted monetary funds amounted to **40,513,284.77 yuan**, including **30,004,583.33 yuan** for letter of guarantee deposits, **8,035,215.93 yuan** for bank acceptance bill deposits, **1,973,485.51 yuan** for frozen bank deposits, and **500,000.00 yuan** for Dalian Commodity Exchange OTC platform margin[313](index=313&type=chunk)[405](index=405&type=chunk) Period-End Book Value of Accounts Receivable (Unit: Yuan) | Category | Period-End Book Value | | :--- | :--- | | Provision for Bad Debts Based on Individual Assessment | 57,339,633.30 | | Provision for Bad Debts Based on Portfolio Assessment | 1,767,903,172.68 | | Total | 1,825,242,805.98 | Period-End Book Value of Inventories (Unit: Yuan) | Item | Period-End Book Value | | :--- | :--- | | Goods in Transit | 43,453,860.08 | | Raw Materials | 222,355,621.53 | | Finished Goods | 588,797,104.60 | | Semi-Finished Goods | 766,920,920.48 | | Goods Sent Out | 61,694,717.04 | | Work in Progress | 23,001,641.78 | | Consigned Processing Materials | 18,810,977.88 | | Hedged Items | 16,950,644.86 | | Total | 1,742,001,484.25 | Period-End Book Value of Long-Term Equity Investments (Unit: Yuan) | Investee Company | Period-End Balance (Book Value) | | :--- | :--- | | GF Securities Co., Ltd. | 22,416,878,016.51 | | China United Insurance Group Co., Ltd. | 9,712,312,571.06 | | Huagai Capital Co., Ltd. | 33,851,987.67 | | Chengda Hospital (Dalian) Co., Ltd. | 56,296,928.50 | | Total | 32,276,460,889.63 | Period-End Book Value of Fixed Assets (Unit: Yuan) | Item | Period-End Book Value | | :--- | :--- | | Buildings and Structures | 1,535,959,384.54 | | Machinery and Equipment | 1,083,377,050.46 | | Electronic Equipment | 46,258,459.68 | | Transportation Vehicles | 9,570,960.03 | | Other | 5,265,501.28 | | Total | 2,680,431,355.99 | Period-End Balance of Bonds Payable (Unit: Yuan) | Item | Period-End Balance | | :--- | :--- | | Corporate Bonds | 2,232,345,548.14 | | Medium-Term Notes | 2,088,381,413.67 | | Private Placement Debt Financing Instruments | 504,845,126.27 | | Less: Bonds Payable Due Within One Year | -1,982,428,598.72 | | Total | 2,843,143,489.36 | [R&D Expenses](index=168&type=section&id=VIII.%20R%26D%20Expenses) During the reporting period, the company's total R&D expenditure was **193,218,950.38 yuan**, with a portion expensed and a portion capitalized, and significant capitalized projects in Phase III clinical trials R&D Expenses by Nature of Expense (Unit: Yuan) | Item | Current Period Amount | | :--- | :--- | | Material Input | 56,502,923.91 | | Salaries and Benefits | 39,800,228.18 | | Depreciation and Amortization | 63,003,784.96 | | Technical Service Fees | 8,004,361.59 | | Lease Expenses | 528,593.68 | | Other Expenses | 25,379,058.06 | | Total | 193,218,950.38 | | Of which: Expensed R&D Expenditure | 121,438,891.32 | | Capitalized R&D Expenditure | 71,780,059.06 | Significant Capitalized R&D Projects | Project | R&D Progress | Estimated Completion Time | Capitalization Commencement Date | | :--- | :--- | :--- | :--- | | Quadrivalent Influenza Vaccine | Phase III Clinical Trials | 2026 | January 2021 | | Human Diploid Rabies Vaccine | Phase III Clinical Trials | 2026 | July 2022 | | Hib Vaccine | Phase III Clinical Trials | 2028 | December 2022 | [Changes in Consolidation Scope](index=170&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope changed, with two new wholly-owned overseas subsidiaries included and one subsidiary liquidated and deregistered - In June 2025, subsidiary Liaoning Chengda International Trade Co., Ltd. established two new wholly-owned overseas subsidiaries, Luminous Trading Ltd. and Chengda International Co., Ltd., which were included in the company's consolidation scope[498](index=498&type=chunk) - Subsidiary Liaoning Xindongneng Technology Development Consulting Service Co., Ltd. was liquidated and deregistered on April 1, 2025[498](index=498&type=chunk) [Interests in Other Entities](index=172&type=section&id=X.%20Interests%20in%20Other%20Entities) This section discloses the company's interests in subsidiaries, joint ventures, and associates, highlighting significant non-wholly-owned subsidiaries and significant influence over GF Securities and China United Insurance Significant Non-Wholly-Owned Subsidiaries (as of June 30, 2025) | Subsidiary Name | Minority Shareholding Proportion (%) | Profit and Loss Attributable to Minority Shareholders for the Period (yuan) | Period-End Minority Interests Balance (yuan) | | :--- | :--- | :--- | :--- | | Liaoning Chengda International Trade Co., Ltd. | 49.00 | 7,124,015.70 | 63,113,843.33 | | Liaoning Chengda Bio Co., Ltd. | 45.33 | 55,438,951.67 | 4,180,298,212.14 | | Xinjiang Baoming Mining Co., Ltd. | 39.50 | - | -1,298,243,548.31 | - The company has directors appointed to GF Securities and directors and supervisors appointed to China United Insurance, indicating significant influence over both companies[511](index=511&type=chunk) - The company exercises control over Gongqingcheng Chengda Coastal Investment Management Partnership (Limited Partnership) through its subsidiary Chengda Coastal Industry (Dalian) Fund Management Co., Ltd., and includes it in the consolidation scope[502](index=502&type=chunk) [Government Grants](index=178&type=section&id=XI.%20Government%20Grants) During the reporting period, total government grants recognized in current profit and loss amounted to **9,592,233.96 yuan**, comprising asset-related and income-related grants, with a period-end balance of **96,026,603.82 yuan** in deferred income from government grants Government Grants Recognized in Current Profit and Loss (Unit: Yuan) | Type | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Asset-Related | 5,717,940.96 | 5,720,640.96 | | Income-Related | 3,874,293.00 | 3,803,709.26 | | Total | 9,592,233.96 | 9,524,350.22 | Liability Items Involving Government Grants (Unit: Yuan) | Financial Statement Item | Beginning Balance | Amount Recognized in Non-Operating Income for Current Period | Transferred to Other Income in Current Period | Period-End Balance | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 101,744,544.78 | 298,083.36 | 5,419,857.60 | 96,026,603.82 | [Risks Related to Financial Instruments](index=179&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company primarily faces credit, liquidity, and market risks, managed through various policies and hedging activities, with an asset-liability ratio of **32.61%** and a current ratio of **1.03** at the end of the reporting period - The company's main financial instruments include monetary funds, financial assets held for trading, accounts receivable, other non-current financial assets, short-term borrowings, financial liabilities held for trading, accounts payable, long-term borrowings, and bonds payable[520](index=520&type=chunk) - The main risks that the company's financial instruments may lead to are credit risk, liquidity risk, and market risk[520](index=520&type=chunk) Liquidity Risk Indicators (as of June 30, 2025) | Indicator | Value | | :--- | :--- | | Asset-Liability Ratio | 32.61% | | Current Ratio | 1.03 | - As of June 30, 2025, assuming a **10%** appreciation or depreciation of RMB against foreign currencies (primarily USD, EUR, HKD, and JPY) for the company's foreign currency-denominated monetary funds, accounts receivable, and accounts payable, while other factors remain constant, both the company's shareholders' equity and net profit would increase or decrease by approximately **28.9192 million yuan**[526](index=526&type=chunk) - As of June 30, 2025, if the interest rate for floating-rate borrowings were to increase or decrease by **50 basis points**, while other factors remained constant, the company's interest expense would increase or decrease by **36.5196 million yuan**[527](index=527&type=chunk) [Fair Value Disclosure](index=183&type=section&id=XIII.%20Fair%20Value%20Disclosure) This section discloses the period-end fair values of the company's assets and liabilities measured at fair value, classified by fair value hierarchy, with total assets continuously measured at fair value amounting to **1,691,400,446.41 yuan** Period-End Fair Value of Assets and Liabilities Measured at Fair Value (Unit: Yuan) | Item | Level 1 Fair Value Measurement | Level 2 Fair Value Measurement | Level 3 Fair Value Measurement | Total | | :--- | :--- | :--- | :--- | :--- | | Total Assets Continuously Measured at Fair Value | 27,864,402.25 | 200,446.00 | 1,663,335,598.16 | 1,691,400,446.41 | | Total Liabilities Continuously Measured at Fair Value | 46,652.00 | - | - | 46,652.00 | - The market price for the company's Level 1 fair value measurement items is the unadjusted quoted price for identical assets or liabilities in active markets[535](index=535&type=chunk) - Derivative financial assets and liabilities continuously measured at Level 2 fair value primarily consist of the company's forward foreign exchange contracts and bank acceptance bills measured at fair value[536](index=536&type=chunk) - Financial assets held for trading and debt instrument investments continuously measured at Level 3 fair value primarily comprise the company's wealth management products, while equity instrument investments mainly consist of the company's unlisted equity investments[537](index=537&type=chunk) [Related Parties and Related Party Transactions](index=185&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) The company's controlling shareholder is Shaoguan Gaoteng Enterprise Management Co., Ltd., but the company has no actual controller; related party transactions included wealth management product purchases and guarantees for subsidiaries, with key management personnel compensation totaling **7.8026 million yuan** - The company's controlling shareholder, Shaoguan Gaoteng, is a wholly-owned subsidiary of Guangdong Private Investment Co., Ltd., which has no controlling shareholder or actual controller, thus the company has no actual controller[540](index=540&type=chunk) - During the reporting period, the company's subsidiaries Liaoning Chengda Bio Co., Ltd. and Shenzhen Chengda Bio Investment Co., Ltd. purchased wealth management products from associate GF Securities Co., Ltd., totaling **220 million yuan**[550](index=550&type=chunk)[551](index=551&type=chunk)[552](index=552&type=chunk)[553](index=553&type=chunk) Company as Guarantor for Subsidiaries (Unit: Yuan) | Guaranteed Party | Guarantee Amount | | :--- | :--- | | Chengda Hengrun (Dalian Free Trade Zone) Co., Ltd. | 60,000,000.00 | | Liaoning Chengda Trade Development Co., Ltd. | 200,000,000.00 | | Liaoning Chengda International Trade Co., Ltd. | 504,605,000.00 | | Liaoning Chengda Steel Trade Co., Ltd. | 735,000,000.00 | | Shanghai Chengji International Trade Co., Ltd. | 30,000,000.00 | Key Management Personnel Compensation (Unit: ten thousand yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Key Management Personnel Compensation | 780.26 | 498.43 | [Commitments and Contingencies](index=191&type=section&id=XVI.%20Commitments%20and%20Contingencies) As of the balance sheet date, the company has significant external commitments, including capital contribution commitments to two entities, with **570,000,000.00 yuan** and **15,000,000.00 yuan** respectively remaining unpaid - The company planned to subscribe **600,000,000.00 yuan** to Chengda Coastal Industry (Dalian) Fund (Limited Partnership), with **30,000,000.00 yuan** already contributed as of June 30, 2025, and a remaining commitment of **570,000,000.00 yuan**[558](index=558&type=chunk) - The company subscribed **30,000,000.00 yuan** to Huagai Capital Co., Ltd., with **15,000,000.00 yuan** already contributed as of June 30, 2025, and a remaining commitment of **15,000,000.00 yuan**[558](index=558&type=chunk) [Events After the Balance Sheet Date](index=192&type=section&id=XVII.%20Events%20After%20the%20Balance%20Sheet%20Date) After the balance sheet date, the company completed the redemption and issuance of various debt instruments, and implemented its 2024 profit distribution, paying a cash dividend of **30,446,318.56 yuan** to all shareholders - The 2024 second tranche short-term commercial paper (**600 million yuan**) matured and was fully redeemed with principal and interest on July 5, 2025[560](index=560&type=chunk) - The 2025 first tranche short-term commercial paper (**800

北京铜官盈新文化旅游发展股份有限公司 2025 年半年度报告全文 北京铜官盈新文化旅游发展股份有限公司 1 北京铜官盈新文化旅游发展股份有限公司 2025 年半年度报告全文 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人王赓宇、主管会计工作负责人王赓宇及会计机构负责人(会计 主管人员)赵斌声明：保证本半年度报告中财务报告的真实、准确、完整。 202 5 年 8 月 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 2025 年半年度报告 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告中涉及的前瞻性陈述，如未来的发展战略和经营计划等， 不构成公司对投资者的实质承诺，投资者及相关人士均应当对此保持足够的 风险认识，并且应当理解计划、预测与承诺之间的差异。 公司已在本报告中详细描述可能存在的相关风险，敬请查阅第三节管理 层讨论与分析"公司面临的风险和应对措施"中可能面临的风险及对策部分的 内容，敬请广大投资者注意投资风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | | | | 第一 ...