[Part I Definitions](index=5&type=section&id=Part%20I%20Definitions) This section provides a comprehensive glossary of key terms and abbreviations used throughout the report, ensuring clarity and consistent understanding of the disclosed information [Definitions of Common Terms](index=5&type=section&id=Definitions%20of%20Common%20Terms) This chapter provides definitions for key terms and abbreviations used in the report, covering company names, bond codes, product technologies (e.g., GDR, ADAS, CMOS, TDDI, PMIC), and business models (Fabless, ODM, OEM), ensuring clear understanding of the report content - The reporting period refers to January 1, 2025, to June 30, 2025[13](index=13&type=chunk) Definitions of Common Terms | Common Term | Definition | | :--- | :--- | | OmniVision Group/Company/Will Semiconductor | OmniVision Integrated Circuit (Group) Co., Ltd., formerly known as Shanghai Will Semiconductor Co., Ltd. | | Will Convertible Bonds | Convertible corporate bonds, with bond abbreviation "Will Convertible Bonds" and bond code "113616" | | GDR | Global Depositary Receipts | | ADAS | Advanced Driver-Assistance Systems | | CMOS | Complementary Metal Oxide Semiconductor Image Sensor | | TDDI | Touch and Display Driver Integration | | PMIC | Power Management Integrated Circuits | | Fabless | A business model without wafer fabrication plants, solely engaged in integrated circuit R&D design and sales | | ODM | Original Design Manufacturer | | OEM | Original Equipment Manufacturer, a contract manufacturing model | [Part II Company Profile and Key Financial Indicators](index=7&type=section&id=Part%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information and a summary of its key accounting data and financial performance for the reporting period [1. Company Information](index=7&type=section&id=1.%20Company%20Information) This section outlines the basic information of OmniVision Integrated Circuit (Group) Co., Ltd., including its Chinese name, abbreviation, foreign name, and legal representative, providing essential identification for investors - The company's Chinese name is OmniVision Integrated Circuit (Group) Co., Ltd., abbreviated as **OmniVision Group**[16](index=16&type=chunk) - The company's legal representative is **Wang Song**[16](index=16&type=chunk) [2. Contact Persons and Information](index=7&type=section&id=2.%20Contact%20Persons%20and%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email, facilitating investor communication and information inquiries - The Board Secretary is **Ren Bing**, and the Securities Affairs Representative is **Zhou Shuyang**[17](index=17&type=chunk) - The company's contact address is No. 88 Shangke Road, Pudong New Area, Shanghai, with telephone number **021-50805043**[17](index=17&type=chunk) [3. Overview of Basic Information Changes](index=7&type=section&id=3.%20Overview%20of%20Basic%20Information%20Changes) This section details the company's registered address, office address, postal code, website, and email, noting that historical changes to the registered address are not applicable, indicating stable basic company information - The company's registered address is 7th Floor, Building C, No. 3000 Longdong Avenue, China (Shanghai) Pilot Free Trade Zone[18](index=18&type=chunk) - The company's website is **www.omnivision-group.com**[18](index=18&type=chunk) [4. Overview of Information Disclosure and Document Custody Location Changes](index=7&type=section&id=4.%20Overview%20of%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) This section specifies the designated newspapers for company information disclosure, the website address for semi-annual reports, and the report custody location, ensuring investors can timely access public company information - The company's selected newspapers for information disclosure are Shanghai Securities News, China Securities Journal, Securities Times, and Securities Daily[19](index=19&type=chunk) - The website address for publishing semi-annual reports is **www.sse.com.cn**[19](index=19&type=chunk) [5. Company Stock Overview](index=7&type=section&id=5.%20Company%20Stock%20Overview) This section provides the company's stock listing exchange, stock abbreviation, stock code, and previous stock abbreviation, facilitating investor identification and trading of company shares - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation "**OmniVision Group**", stock code **603501**, and previous stock abbreviation "**Will Semiconductor**"[20](index=20&type=chunk) [7. Key Accounting Data and Financial Indicators](index=8&type=section&id=7.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the company's key accounting data and financial indicators for the first half of 2025, showing significant year-on-year growth in operating revenue and net profit, with improved profitability and asset scale Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 13.96 billion | RMB 12.09 billion | 15.42 | | Total Profit | RMB 2.19 billion | RMB 1.50 billion | 45.88 | | Net Profit Attributable to Listed Company Shareholders | RMB 2.03 billion | RMB 1.37 billion | 48.34 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | RMB 1.95 billion | RMB 1.37 billion | 42.21 | | Net Cash Flow from Operating Activities | RMB 1.89 billion | RMB 1.82 billion | 3.66 | | Net Assets Attributable to Listed Company Shareholders (Period-End) | RMB 26.19 billion | RMB 24.20 billion | 8.23 | | Total Assets (Period-End) | RMB 42.48 billion | RMB 38.96 billion | 9.03 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 1.69 | 1.14 | 48.25 | | Diluted Earnings Per Share (RMB/share) | 1.68 | 1.14 | 47.37 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (RMB/share) | 1.63 | 1.14 | 42.98 | | Weighted Average Return on Net Assets (%) | 8.01 | 6.38 | Increased by 1.63 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 7.71 | 6.41 | Increased by 1.30 percentage points | [9. Non-Recurring Gains and Losses Items and Amounts](index=9&type=section&id=9.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling **RMB 76.53 million**, primarily including government subsidies recognized in current profit or loss and fair value changes in financial assets Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the reversal of impairment provisions already made | -0.36 million | | Government grants recognized in current profit or loss | 25.04 million | | Gains or losses from changes in fair value of financial assets and liabilities, and from disposal of financial assets and liabilities, excluding effective hedging activities related to normal business operations of non-financial enterprises | 64.92 million | | Gains or losses from debt restructuring | 0.06 million | | Other non-operating income and expenses apart from the above | 1.26 million | | Less: Income tax impact | 14.38 million | | Minority interest impact (after tax) | 0.01 million | | Total | 76.53 million | [Part III Management Discussion and Analysis](index=10&type=section&id=Part%20III%20Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's industry, business operations, core competencies, and financial performance during the reporting period, along with an outlook on potential risks and future strategies [1. Industry and Main Business Overview During the Reporting Period](index=10&type=section&id=1.%20Industry%20and%20Main%20Business%20Overview%20During%20the%20Reporting%20Period) This section elaborates on the company's industry position as a Fabless chip design company, global and Chinese semiconductor industry trends, its Fabless business model, three core business systems (image sensor, display, and analog solutions), and their wide applications in smartphones, automotive, emerging markets, medical, and security - The company is one of the **top ten global Fabless semiconductor companies**, with main businesses covering image sensor, display, and analog solutions[28](index=28&type=chunk) - In the first half of 2025, the global semiconductor market reached **USD 346 billion**, growing by **18.9% year-on-year**, with strong growth in logic, memory, and sensor sectors[30](index=30&type=chunk) - China's integrated circuit imports increased by **8.9% year-on-year** in the first half, while exports grew by **20.6% year-on-year**[30](index=30&type=chunk) - The company adopts a **Fabless model**, focusing on R&D design and sales, with wafer manufacturing and packaging/testing outsourced to professional manufacturers[31](index=31&type=chunk) [(I) Company's Industry](index=10&type=section&id=(I)%20Company's%20Industry) The company's industry is classified as Computer, Communication and Other Electronic Equipment Manufacturing (C39) according to both the 'National Economic Industry Classification and Codes' and the CSRC's 'Guidelines for Industry Classification of Listed Companies' - The company operates in the Computer, Communication and Other Electronic Equipment Manufacturing (C39) industry[29](index=29&type=chunk) [(II) Industry Development](index=10&type=section&id=(II)%20Industry%20Development) The global semiconductor market achieved **18.9% strong growth** in the first half of 2025, with an anticipated **15.4% full-year growth**, primarily driven by data center and AI applications; China's semiconductor import and export trade also maintained a positive trend, with import volume increasing by **8.9%** and export volume by **20.6%** Global Semiconductor Market Data for H1 2025 | Indicator | Data | | :--- | :--- | | Market Size | USD 346 billion | | Year-on-Year Growth | 18.9% | | Strong Growth Areas | Logic, Memory, Sensors (16%) | | Growth Areas | Analog Chips, Microcontrollers (4%) | | Declining Areas | Discrete Devices, Optoelectronics (single-digit decline) | China's Integrated Circuit Import and Export Data for H1 2025 | Indicator | Import | Export | | :--- | :--- | :--- | | Cumulative Volume | 281.9 billion units (up 8.9% YoY) | 167.8 billion units (up 20.6% YoY) | | Import/Export Value | RMB 1.38 trillion (up 8.3% YoY) | RMB 650.3 billion (up 20.3% YoY) | [(III) Company Business Model](index=11&type=section&id=(III)%20Company%20Business%20Model) The company's semiconductor design and sales business operates on a **Fabless model**, focusing on R&D design and sales, with wafer manufacturing and packaging/testing outsourced. Sales models include direct sales and distribution to meet diverse customer needs. The company's products span three major systems: image sensor, display, and analog solutions, and it also distributes various electronic components - The company's semiconductor design and sales business adopts a **Fabless model**, focusing solely on integrated circuit R&D design and sales, with wafer manufacturing and packaging/testing outsourced[31](index=31&type=chunk) - The company sells through both **direct sales and distribution**, with direct sales serving module, ODM, and OEM manufacturers and end customers, and distribution through renowned multinational large distributors[33](index=33&type=chunk) - The company's semiconductor product design business primarily comprises three major systems: **image sensor solutions, display solutions, and analog solutions**[34](index=34&type=chunk) Company Semiconductor Design Business Product Types | Business | Product Name | Main Function | Application Areas | | :--- | :--- | :--- | :--- | | Image Sensor Solutions | CMOS Image Sensor | Converts optical information into electrical signals | Consumer electronics, security, automotive electronics, medical, emerging markets | | | CameraCubeChip | Integrates wafer-level optics and CMOS image sensors | Medical, emerging markets, etc. | | | LCOS | Reflective mode, very small matrix liquid crystal display device | Automotive electronics, medical, emerging markets, laptops, etc. | | Display Solutions | TDDI | Drives LCD screens, detects user touch signals | Smartphones | | | DDIC | Drives displays and controls drive current | Smartphones | | | TED | Combines eDP TCON and source driver | Laptops | | Analog Solutions | TVS, MOSFET, LDO, DC-DC, LED Backlight Driver, CAN, LIN, SBC, SerDes, MCU, Motor Driver, Operational Amplifier | Enhances anti-static/surge protection, signal amplification, power control, voltage regulation, voltage adjustment, constant current source, signal switching, communication networks, integrated power/communication/diagnosis/safety monitoring, high-speed communication, smart semiconductor chips, motor control, amplifiers, etc. | Consumer electronics, security, network communication, automotive electronics, industrial, IoT, etc. | Company Distribution Business Product Types | Product Name | Sub-Products | Main Original Manufacturers | | :--- | :--- | :--- | | Electronic Components | Resistors, capacitors, inductors, crystals, etc. | Panasonic, Chicony, Yageo, Samsung, Walsin Technology, Holy Stone, TXC, etc. | | Structural Components | Connectors, card holders, card trays, PCBs, speakers, electrets, etc. | Molex, Panasonic, Nanya, Goertek, etc. | | Electromechanical Systems | Servos, motors, fans, PLCs, etc. | Panasonic, NIDEC, Delta, etc. | | Integrated Circuits | Chips, Sensors, Memory, Flash, Sensors, Diodes/Transistors, etc. | Lite-On, Longsys, XMC, Quantum Micro, Jinglue, Rongpai, Lisenme, Xinsheng, Qianhai Weisheng, Hailichuang, Aixin, Jiutian Ruixin, Nationz, BOSCH, Fourier, Yichong, etc. | | RF Devices | Filters, etc. | Panasonic, ACX, Jiali, Huaying, Xinpu, Walsin Technology, etc. | [(IV) Main Applications of Company Products](index=14&type=section&id=(IV)%20Main%20Applications%20of%20Company%20Products) The company's image sensor, display, and analog solutions are widely applied in smartphones, automotive, emerging markets (sports/panoramic cameras, smart glasses, machine vision), medical, and security sectors, meeting industry demands for high-performance, low-power, and high-resolution chips through continuous technological innovation - Smartphone Market: The company offers high-resolution image sensors (e.g., **OV50H, OV50X**) and **TDDI technology**; newly developed **OLED DDIC products** have received test approval from leading Chinese panel suppliers, and analog products address power density and power management needs[43](index=43&type=chunk) - Automotive Market: Image sensor solutions are applied in **ADAS, autonomous driving, and cabin monitoring**, featuring split-pixel technology for LED flicker suppression and HALE combination algorithms. **LCOS products** enable HUD applications, and the company expands its automotive analog chip portfolio (e.g., **SerDes, PMIC, MCU, SBC**)[44](index=44&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - Emerging Markets: Image sensor products provide high image quality and stability for **sports/panoramic cameras**. **LCOS technology** offers single-chip display solutions for smart glasses, while **CIS integrated NPU technology** addresses real-time performance, power consumption, privacy, and size challenges for smart glasses. A machine vision department has been established, focusing on innovative solutions for industrial automation and robotics[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Medical Market: Provides complete end-to-end medical imaging subsystems, meeting demands for minimally invasive diagnostic and therapeutic surgeries, with **CMOS image sensors** gradually replacing traditional CCDs[53](index=53&type=chunk)[54](index=54&type=chunk) - Security Market: **Nyxel® near-infrared technology** enables security cameras to see clearer and further in low light, while also offering energy-efficient power management and interface protection products[55](index=55&type=chunk) - Laptop Market: Offers first-class imaging system solutions, including new technologies like **infrared global shutter sensors and RGB-IR**, for security applications such as eye tracking, facial/iris recognition[56](index=56&type=chunk) [2. Discussion and Analysis of Operations](index=18&type=section&id=2.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company benefited from the structural recovery of the global semiconductor industry and the integration of AI technology, achieving **15.49% growth in operating revenue** and **48.34% growth in net profit**. The image sensor business performed outstandingly in automotive intelligent driving and emerging markets, while the analog solutions business also saw significant growth. The company continued to increase R&D investment, optimize its supply chain, and actively enhance shareholder returns and sustainable development - In the first half of 2025, the company's main business revenue was **RMB 13.94 billion**, a **15.49% year-on-year increase**[60](index=60&type=chunk) - Semiconductor design business product sales revenue was **RMB 11.57 billion**, accounting for **83.01% of main business revenue**, a **11.08% year-on-year increase**[60](index=60&type=chunk) - Semiconductor distribution business revenue was **RMB 2.31 billion**, accounting for **16.60% of main business revenue**, a **41.73% year-on-year increase**[60](index=60&type=chunk) - Net profit attributable to parent company shareholders was **RMB 2.03 billion**, a **48.34% year-on-year increase**[127](index=127&type=chunk) [1. Image Sensor Solutions](index=19&type=section&id=1.%20Image%20Sensor%20Solutions) The image sensor solutions business achieved **RMB 10.35 billion** in operating revenue in the first half, a **11.10% year-on-year increase**. Revenue from image sensors in automotive intelligent driving and emerging markets (sports/panoramic cameras, smart glasses, machine vision) grew significantly, while the smartphone market saw a decline due to the end-of-life cycle of older products, though new products have been validated and introduced by customers - The image sensor solutions business achieved operating revenue of **RMB 10.35 billion** in the first half of 2025, accounting for **74.21% of main business revenue**, an **11.10% increase** year-on-year[61](index=61&type=chunk) - Automotive market image sensor revenue was approximately **RMB 3.79 billion**, a **30.04% year-on-year increase**, solidifying its leading position[67](index=67&type=chunk) - Smartphone market image sensor revenue was approximately **RMB 3.92 billion**, a **19.48% decrease** year-on-year, primarily due to the end-of-life cycle of the older **OV50H product**[68](index=68&type=chunk) - The company's newly launched **50-megapixel 1-inch high dynamic range image sensor OV50X** has entered mass production and delivery, and **200-megapixel image sensor products** have been validated and introduced by customers[69](index=69&type=chunk)[70](index=70&type=chunk) - Emerging market image sensor revenue was approximately **RMB 1.17 billion**, achieving a **249.42% year-on-year increase**, primarily driven by growth in sports/panoramic cameras, smart glasses, and machine vision sectors[74](index=74&type=chunk) - Security market image sensor revenue was approximately **RMB 0.83 billion**, a **16.77% year-on-year increase**. Medical market revenue was approximately **RMB 0.44 billion**, a **68.10% year-on-year increase**[75](index=75&type=chunk) [2. Display Solutions](index=21&type=section&id=2.%20Display%20Solutions) The display solutions business achieved **RMB 0.46 billion** in operating revenue in the first half, a **2.60% year-on-year decrease**, primarily due to pricing pressure in the mobile LCD-TDDI market. Despite a slight revenue decline, the company achieved a **7.03% steady increase in shipments** and significant gross margin improvement through product supply chain optimization and expansion into high-margin products. **OLED DDIC and TED products** have been successfully introduced to tier-one customers - The display solutions business achieved operating revenue of **RMB 0.46 billion** in the first half of 2025, a **2.60% decrease** year-on-year[77](index=77&type=chunk) - The display solutions business achieved sales volume of **72.56 million units**, a **7.03% increase** year-on-year, with steady market share growth[77](index=77&type=chunk) - The company's **OLED DDIC products** have been successfully introduced to tier-one panel manufacturers and are in mass production, while **TED chips** have been adopted by leading global laptop brands[77](index=77&type=chunk)[78](index=78&type=chunk) - Automotive **TDDI products** have been validated and introduced by customers[78](index=78&type=chunk) [3. Analog Solutions](index=22&type=section&id=3.%20Analog%20Solutions) The analog solutions business achieved **RMB 0.77 billion** in operating revenue in the first half, a **20.88% year-on-year increase**, primarily benefiting from inventory destocking and demand recovery in the consumer electronics industry. The company completed a multi-category layout in automotive analog chips, with automotive analog IC revenue growing by **45.51% year-on-year**, becoming a new growth driver - The analog solutions business achieved operating revenue of **RMB 0.77 billion** in the first half of 2025, a **20.88% increase** year-on-year[79](index=79&type=chunk) - Automotive analog ICs achieved operating revenue of **RMB 0.12 billion**, accounting for **15.66% of analog solutions business**, a **45.51% increase** year-on-year[79](index=79&type=chunk) - The company completed a multi-category layout in automotive analog chips, including **SerDes, PMIC, and MCU** for high-speed transmission scenarios in intelligent driving/cockpit systems[79](index=79&type=chunk) [(II) Continuous Increase in R&D Investment to Drive Product Innovation and Upgrades](index=23&type=section&id=(II)%20Continuous%20Increase%20in%20R%26D%20Investment%20to%20Drive%20Product%20Innovation%20and%20Upgrades) During the reporting period, the company's semiconductor design and sales business R&D investment reached **RMB 1.72 billion**, a **9.01% year-on-year increase**, accounting for **14.90% of the business revenue**. The company highly values independent intellectual property and talent development, holding **4,761 authorized patents** as of the end of the reporting period, and successfully mass-producing high-performance image sensors like **OV50X** - The company's semiconductor design and sales business R&D investment amounted to approximately **RMB 1.72 billion**, accounting for **14.90% of the business revenue**, a **9.01% increase** year-on-year[80](index=80&type=chunk) - As of the end of the reporting period, the company held **4,761 authorized patents**, including **4,552 invention patents**[80](index=80&type=chunk) - The company's launched **OV50X** is a **50-megapixel sensor** with ultra-high dynamic range, capable of cinematic video recording, and has entered mass production[81](index=81&type=chunk) [(III) Fruitful Achievements in Automotive Intelligent Driving, Opening New Growth Curves](index=23&type=section&id=(III)%20Fruitful%20Achievements%20in%20Automotive%20Intelligent%20Driving%2C%20Opening%20New%20Growth%20Curves) The company achieved fruitful results in automotive intelligent driving, launching several market-competitive new products, including automotive image sensors based on **TheiaCel™ technology** and the **OX01N1B sensor** for driver monitoring systems. Concurrently, the company expanded its automotive solutions horizontally, introducing high-performance **MCU OMX2x4B**, **2Gbps SerDes series products**, and high-performance automotive intelligent high-side switch chip **ONXQ000**, empowering comprehensive automotive solutions - The company utilized **TheiaCel™ technology** to solve LED traffic light flicker issues and achieve wide dynamic range in single-exposure HDR images, successfully entering the **NVIDIA supply chain**[82](index=82&type=chunk) - Launched the in-cabin driver monitoring system (DMS) **OX01N1B image sensor**, featuring industry-leading near-infrared quantum efficiency and low power consumption[84](index=84&type=chunk) - Introduced high-performance **MCU OMX2x4B**, suitable for intelligent cockpits and body domain control scenarios[86](index=86&type=chunk) - Launched new **2Gbps SerDes series products OTX9211 and OTX9342**, which have secured project nominations from multiple domestic automakers and Tier1 suppliers[86](index=86&type=chunk)[87](index=87&type=chunk) - Introduced high-performance automotive intelligent high-side switch chip **ONXQ000**, expected to enter mass production in Q3 2025[88](index=88&type=chunk) [(IV) Strengthening Supply Chain Collaboration to Enhance Overall Operational Efficiency](index=25&type=section&id=(IV)%20Strengthening%20Supply%20Chain%20Collaboration%20to%20Enhance%20Overall%20Operational%20Efficiency) The company strengthened cooperation with wafer fabs and packaging/testing plants, and transferred some mature products to local wafer fabs, ensuring stable capacity and cost control. Concurrently, the company coordinated development strategies across business segments, leveraging synergies to provide comprehensive solutions to customers, thereby enhancing overall operational efficiency and competitiveness - The company maintained deep cooperation with wafer fabs and packaging plants, and transferred some mature products to local wafer fabs, ensuring capacity needs and improving production efficiency[89](index=89&type=chunk) - The company's product lines share high consistency in end customers, providing comprehensive solutions through synergistic development to enhance business scale and competitiveness[89](index=89&type=chunk) [(V) Convertible Bond Fundraising Project Completion, Remaining Funds Permanently Supplement Working Capital](index=25&type=section&id=(V)%20Convertible%20Bond%20Fundraising%20Project%20Completion%2C%20Remaining%20Funds%20Permanently%20Supplement%20Working%20Capital) The company's convertible bond fundraising project was fully completed and closed in 2024, with remaining raised funds of **RMB 382.14 million** (including interest income) permanently supplementing working capital to maximize the efficiency of fund utilization, aligning with the company's operational development needs and shareholder interests - The company's convertible bond fundraising project was fully completed and closed in 2024[90](index=90&type=chunk) - The company has transferred a cumulative **RMB 382.14 million** (including interest income) from its special fundraising account to other company accounts to permanently supplement working capital, and completed the closure of relevant special fundraising accounts[91](index=91&type=chunk) [(VI) Continuously Optimizing Talent Development and Incentive Mechanisms to Stabilize Team Cohesion](index=26&type=section&id=(VI)%20Continuously%20Optimizing%20Talent%20Development%20and%20Incentive%20Mechanisms%20to%20Stabilize%20Team%20Cohesion) Adhering to a 'people-oriented' principle, the company continuously optimized its talent development and incentive mechanisms by providing a diverse workplace, competitive salaries, training resources, and career development opportunities. During the reporting period, the 2025 stock option incentive plan was implemented, granting **19,983,400 stock options** to **3,361 incentive recipients** to stabilize the core team and share development achievements - The company continuously improved its talent training system through the **OV-Learning online training platform**[92](index=92&type=chunk) - During the reporting period, the company implemented the **2025 stock option incentive plan**, completing the registration of **19,983,400 stock options** for **3,361 incentive recipients**[93](index=93&type=chunk) [(VII) Enhancing Shareholder Returns and Consolidating Market Trust](index=26&type=section&id=(VII)%20Enhancing%20Shareholder%20Returns%20and%20Consolidating%20Market%20Trust) The company highly values investor returns, enhancing shareholder value by canceling repurchased shares and continuously promoting multiple cash dividends annually. During the reporting period, the 2024 annual equity distribution was completed, with a cash dividend of **RMB 2.20 (tax inclusive) per 10 shares**, totaling **RMB 264 million**, and the Board of Directors was authorized to formulate the 2025 interim profit distribution plan - The company has canceled **11,213,200 repurchased shares**, with a corresponding reduction in registered capital[94](index=94&type=chunk) - The company completed the 2024 annual equity distribution on August 1, 2025, distributing a cash dividend of **RMB 2.20 (tax inclusive) per 10 shares**, totaling **RMB 264 million**[94](index=94&type=chunk) - The company's general meeting of shareholders has authorized the Board of Directors to determine the 2025 interim profit distribution plan, continuing to implement multiple cash dividends annually[94](index=94&type=chunk) [(VIII) Implementing Science-Based Carbon Targets to Deepen Company's Sustainable Development](index=26&type=section&id=(VIII)%20Implementing%20Science-Based%20Carbon%20Targets%20to%20Deepen%20Company's%20Sustainable%20Development) The company established a three-tier ESG governance structure, committed to achieving a win-win for economic and social responsibilities. During the reporting period, its subsidiary, OmniVision Technologies, Inc., formulated and received SBTi approval for its near-term, long-term, and net-zero science-based carbon targets based on the latest greenhouse gas accounting system, deepening the company's commitment to sustainable development - The company established a three-tier ESG governance structure comprising the Board of Directors, ESG Committee, and ESG Working Group[96](index=96&type=chunk) - The near-term, long-term, and net-zero science-based carbon targets of its subsidiary, **OmniVision Technologies, Inc.**, were approved by **SBTi** during the reporting period[96](index=96&type=chunk) [3. Analysis of Core Competencies During the Reporting Period](index=27&type=section&id=3.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies include strong R&D capabilities, leading core technologies (e.g., **CMOS image sensors, LCOS, TDDI, power management chips**), global brand recognition, extensive product lines, a flexible **Fabless business model**, stable supply chain and customer advantages, and a highly qualified sales, service, and talent team - R&D Capability Advantage: The company's semiconductor design and sales business invested **RMB 1.72 billion** in R&D, accounting for **14.90% of revenue**, and holds **4,761 authorized patents**[97](index=97&type=chunk) - Core Technology Advantage: Significant technological advantages accumulated in **CMOS image sensor circuit design, packaging, and digital image processing**, including **BSI, PureCel®Plus, RGB-Ir, TheiaCel™, CameraCubeChip®, LCOS, TDDI, discrete devices, and power management chips**[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - Brand Recognition Advantage: One of the **top three global CMOS image sensor suppliers**, with leading market shares in numerous niche markets[103](index=103&type=chunk) - Product Line Advantage: Extensive range and application of **CMOS image sensors**, covering smartphones, automotive electronics, medical, security, smart glasses, panoramic and sports cameras, and actively integrating into the 'AI+' technology wave[104](index=104&type=chunk) - Asset-Light Business Model Advantage: The **Fabless model** enables the company to be efficient and flexible, focusing on R&D design, and establishing long-term partnerships with mainstream foundries[105](index=105&type=chunk) - Supply Chain and Customer Advantage: Formed long-term partnerships with internationally renowned and domestically leading foundries, with products demonstrating synergistic effects[106](index=106&type=chunk) - Sales and Service Advantage: Possesses a highly skilled **FAE team** capable of rapidly introducing products to market and providing technical support[107](index=107&type=chunk) - Talent and Team Advantage: Boasts an R&D team rich in technological innovation and a high-caliber management team, with a stable core team over the long term[109](index=109&type=chunk) [4. Key Operating Performance During the Reporting Period](index=30&type=section&id=4.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes the company's key operating performance during the reporting period, including reasons for financial statement item changes, asset and liability status, investment activities, and the operating performance of major controlled and associate companies. The company achieved growth in both operating revenue and total profit, maintained a stable asset-liability structure, conducted investment activities aligned with its development strategy, and its major subsidiaries operated well - Operating revenue increased by **15.42% year-on-year**, primarily due to the continuous penetration of image sensor products in automotive intelligent driving and sports camera application markets[110](index=110&type=chunk) - Total profit increased by **45.88% year-on-year**, and net profit attributable to listed company shareholders increased by **48.34% year-on-year**[22](index=22&type=chunk) - Net cash flow from operating activities increased by **3.66% year-on-year**, primarily due to increased cash received from sales of goods and provision of services[110](index=110&type=chunk)[111](index=111&type=chunk) - Net cash flow from investing activities decreased by **143.68% year-on-year**, primarily due to increased cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets[110](index=110&type=chunk)[111](index=111&type=chunk) - Net cash flow from financing activities increased by **116.27% year-on-year**, primarily due to decreased cash paid for debt repayment[110](index=110&type=chunk)[111](index=111&type=chunk) [(I) Main Business Analysis](index=30&type=section&id=(I)%20Main%20Business%20Analysis) This section analyzes the changes in the company's main financial statement items, indicating that the growth in operating revenue and cost of sales was primarily influenced by expanded sales volume, while the improvement in gross margin resulted from product structure optimization and cost control. Financial expenses decreased due to increased interest income and exchange gains/losses, while R&D and selling expenses rose due to increased employee compensation Analysis Table of Changes in Financial Statement Items | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13.96 billion | 12.09 billion | 15.42 | | Cost of Sales | 9.70 billion | 8.57 billion | 13.24 | | Selling Expenses | 269.33 million | 264.08 million | 1.99 | | Administrative Expenses | 339.49 million | 340.71 million | -0.36 | | Financial Expenses | -6.41 million | 6.14 million | -204.39 | | R&D Expenses | 1.36 billion | 1.26 billion | 8.70 | | Net Cash Flow from Operating Activities | 1.89 billion | 1.82 billion | 3.66 | | Net Cash Flow from Investing Activities | -1.24 billion | -508.27 million | -143.68 | | Net Cash Flow from Financing Activities | 436.28 million | -2.68 billion | 116.27 | - The growth rate of cost of sales was lower than that of operating revenue, primarily due to factors such as product mix optimization and cost control, leading to an increase in the company's gross profit margin[111](index=111&type=chunk) - The change in financial expenses was mainly due to increased interest income and exchange gains/losses[111](index=111&type=chunk) [(III) Analysis of Assets and Liabilities](index=31&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) This section analyzes the changes in the company's assets and liabilities at period-end. Notes receivable, other receivables, long-term receivables, deferred income tax assets, and other non-current assets all showed significant growth, primarily reflecting increases in bank acceptance bills, temporary payments, overseas tax refunds, unrealized profits from internal transactions, and prepayments for equipment. On the liability side, short-term borrowings, accounts payable, non-current liabilities due within one year, and other current liabilities also increased substantially, mainly due to increased bank borrowings, quarterly procurement fluctuations, and maturing long-term borrowings. Overseas assets accounted for **60.50% of total assets**, primarily comprising Beijing OmniVision's overseas subsidiaries and OmniVision Display Solutions and its overseas subsidiaries Changes in Assets and Liabilities | Item Name | Period-End Amount (RMB) | Period-End % of Total Assets | Prior Year-End Amount (RMB) | Prior Year-End % of Total Assets | Period-End Change vs. Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 76.01 million | 0.18 | 24.40 million | 0.06 | 211.50 | Mainly due to an increase in the company's bank acceptance bills | | Other Receivables | 86.76 million | 0.20 | 57.80 million | 0.15 | 50.10 | Mainly due to an increase in the company's other temporary payments | | Long-Term Receivables | 9.90 million | 0.02 | 3.23 million | 0.01 | 206.35 | Mainly due to the company's receivables from overseas tax refunds | | Deferred Income Tax Assets | 635.25 million | 1.50 | 400.68 million | 1.03 | 58.54 | Mainly due to an increase in the company's unrealized profits from internal transactions | | Other Non-Current Assets | 316.28 million | 0.74 | 161.58 million | 0.41 | 95.74 | Mainly due to an increase in the company's prepayments for equipment | | Short-Term Borrowings | 1.58 billion | 3.71 | 1.09 billion | 2.79 | 45.12 | Mainly due to an increase in the company's bank borrowings in the current period | | Accounts Payable | 2.70 billion | 6.37 | 1.94 billion | 4.97 | 39.74 | Mainly due to quarterly procurement fluctuations | | Non-Current Liabilities Due Within One Year | 3.62 billion | 8.53 | 2.65 billion | 6.81 | 36.57 | Mainly due to an increase in long-term borrowings due within one year | | Other Current Liabilities | 6.21 million | 0.01 | 2.00 million | 0.01 | 210.21 | Mainly due to an increase in the company's endorsed notes receivable that cannot be derecognized in the current period | | Deferred Income | 41.14 million | 0.10 | 22.02 million | 0.06 | 86.80 | Mainly due to an increase in the company's government grants in the current period | - Overseas assets amounted to **RMB 25.70 billion**, accounting for **60.50% of total assets**[114](index=114&type=chunk) Operating Performance of Major Overseas Assets | Overseas Asset Name | Reason for Formation | Operating Model | Operating Revenue for the Reporting Period (RMB Million) | Net Profit for the Reporting Period (RMB Million) | | :--- | :--- | :--- | :--- | :--- | | Beijing OmniVision Overseas Subsidiaries | Enterprise merger under common control | Independent operation | 9.67 billion | 1.94 billion | | OmniVision Display Solutions and its Overseas Subsidiaries | Establishment | Independent operation | 458.55 million | -57.29 million | [(IV) Analysis of Investment Status](index=32&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) This section analyzes the company's investment status, indicating that all investments align with the company's development strategy, contributing to enhanced technological capabilities and competitiveness, and generating investment returns. Financial assets measured at fair value totaled **RMB 5.34 billion** at period-end, primarily comprising stocks, private equity funds, and other investments, with positive fair value changes for stocks and private equity funds - The company's investment activities align with its development strategy, contributing to business growth, identifying new profit opportunities, enhancing technological capabilities and competitiveness, and achieving investment returns[115](index=115&type=chunk) Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB Million) | Fair Value Change in Current Period (RMB Million) | Cumulative Fair Value Change in Equity (RMB Million) | Impairment Provision in Current Period (RMB Million) | Purchases in Current Period (RMB Million) | Sales/Redemptions in Current Period (RMB Million) | Other Changes (RMB Million) | Ending Balance (RMB Million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 1,646.36 | 58.30 | -417.77 | | 19.06 | 0.09 | 0.00 | 1,723.80 | | Private Equity Funds | 2,698.11 | 17.43 | 198.00 | | 51.85 | | | 2,861.69 | | Others | 767.38 | 1.56 | -1.47 | | 210.00 | 210.31 | -14.95 | 753.68 | | Total | 5,111.84 | 77.30 | -419.23 | | 427.06 | 262.17 | -14.87 | 5,339.17 | [(VI) Analysis of Major Controlled and Associate Companies](index=34&type=section&id=(VI)%20Analysis%20of%20Major%20Controlled%20and%20Associate%20Companies) This section analyzes the operating performance of Beijing OmniVision, the company's major controlled subsidiary, which achieved **RMB 10.38 billion** in operating revenue and **RMB 1.92 billion** in net profit during the reporting period. Concurrently, the company acquired and disposed of several subsidiaries during the reporting period, but these had no significant impact on overall production, operations, or performance Financial Performance of Major Subsidiary Beijing OmniVision | Company Name | Company Type | Main Business | Registered Capital (USD) | Total Assets (RMB Million) | Net Assets (RMB Million) | Operating Revenue (RMB Million) | Operating Profit (RMB Million) | Net Profit (RMB Million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing OmniVision | Subsidiary | Technology transfer, IC design, software development, sales, etc. | 129,750.00 | 26,840.66 | 21,988.75 | 10,378.98 | 2,246.07 | 1,921.23 | - During the reporting period, the company sold Shenzhen Tianqin Huizhi Technology Co., Ltd., deregistered Anhao Technology (Tianjin) Co., Ltd., and established Chongqing Jinghongzhi Electronics Co., Ltd., Sibico Integrated Circuit Design (Shanghai) Co., Ltd., and OmniVision International (Cayman) Company Limited, with no significant impact on overall production, operations, or performance[120](index=120&type=chunk) [5. Other Disclosures](index=35&type=section&id=5.%20Other%20Disclosures) This section discloses potential market changes, operational, financial, and tax risks, as well as the controlling shareholder's equity pledge status. Concurrently, the company actively practices an 'investor-centric' philosophy, enhancing operational quality and market trust through measures such as focusing on main businesses, improving investment returns, strengthening technological barriers, enhancing investor communication, and perfecting corporate governance - The company faces market change risks, including macroeconomic fluctuations, lower-than-expected growth in downstream markets, and product seasonality and cyclicality[120](index=120&type=chunk)[121](index=121&type=chunk) - Operational risks include relatively concentrated downstream customer business areas, uncertainties in outsourced processing capacity assurance and procurement unit price changes, and new product development not being recognized by the market[121](index=121&type=chunk)[122](index=122&type=chunk) - Financial risks include bad debts from accounts receivable, large inventory scale, and exchange rate and interest rate fluctuation risks[123](index=123&type=chunk)[124](index=124&type=chunk) - Changes in tax preferential policies may lead to an increase in the company's income tax burden[125](index=125&type=chunk) - Controlling shareholder Mr. Yu Renrong and his concerted parties collectively hold **33.88% of the company's shares**, with **18.06% cumulatively pledged**, posing a risk of a relatively high equity pledge ratio[125](index=125&type=chunk) - The company focused on its main business, with operating revenue and net profit attributable to the parent company growing by **15.49%** and **48.34%**, respectively[127](index=127&type=chunk) - The company has implemented multiple cash dividends annually and canceled **11,213,200 repurchased shares**, enhancing investment returns[128](index=128&type=chunk) - The company's R&D investment was **RMB 1.72 billion**, accounting for **14.90% of semiconductor design and sales business revenue**, and it holds **4,761 authorized patents**, continuously strengthening its technological barriers[129](index=129&type=chunk) - The company strengthened investor communication through diversified channels such as performance briefings, SSE e-interaction, and investor engagement activities, and formulated a market capitalization management system[129](index=129&type=chunk)[130](index=130&type=chunk) - The company revised its Articles of Association to abolish the Supervisory Board, with its functions now exercised by the Board's Audit Committee, and strengthened the compliant performance of duties by 'key individuals'[130](index=130&type=chunk) [(I) Potential Risks](index=35&type=section&id=(I)%20Potential%20Risks) The company faces multiple risks from market changes, operations, finance, and taxation. Market risks stem from macroeconomic fluctuations and uncertainties in downstream market demand; operational risks include high customer concentration, fluctuations in outsourced processing capacity and costs, and new product development not gaining market acceptance; financial risks involve accounts receivable bad debts, large inventory scale, and exchange rate and interest rate fluctuations; tax risks are related to changes in preferential tax policies. Additionally, a high equity pledge ratio by the controlling shareholder also constitutes a potential risk - Market Change Risks: The semiconductor industry is affected by macroeconomic fluctuations; lower-than-expected growth in downstream markets (consumer electronics, security, automotive, medical, smart glasses, machine vision, panoramic and sports cameras) or delayed customer sales promotion may adversely impact the company's sales volume[120](index=120&type=chunk)[121](index=121&type=chunk) - Operational Risks: Downstream customer business areas are relatively concentrated, and fluctuations in major customer operations or intensified competition may affect performance; under the **Fabless model**, there are uncertainties in wafer fab and packaging/testing plant capacity assurance and procurement unit price changes; if new product development fails to timely grasp market demand, it may impact market competitiveness[121](index=121&type=chunk)[122](index=122&type=chunk) - Financial Risks: Net accounts receivable of **RMB 4.45 billion**, accounting for **18.27% of current assets**, may lead to bad debts if not recovered on time; net inventory of **RMB 7.95 billion**, accounting for **32.66% of current assets**, may impact performance and cash flow if not sold smoothly; faces exchange rate fluctuation risks for financial assets and liabilities denominated in foreign currencies such as USD and HKD; bank borrowings face interest rate fluctuation risks[123](index=123&type=chunk)[124](index=124&type=chunk) - Tax Risks: Changes in preferential tax policies in various countries or regions in the future may lead to an increase in the company's income tax burden[125](index=125&type=chunk) - Equity Pledge Risk: Controlling shareholder Mr. Yu Renrong and his concerted parties collectively hold **33.88% of the company's shares**, with **18.06% cumulatively pledged**, posing a risk of a relatively high equity pledge ratio[125](index=125&type=chunk) [(II) Other Disclosure Items](index=38&type=section&id=(II)%20Other%20Disclosure%20Items) The company actively practices an 'investor-centric' philosophy, enhancing operational quality and market trust through measures such as focusing on main businesses, improving investment returns, strengthening technological barriers, enhancing investor communication, and perfecting corporate governance. During the reporting period, the company achieved significant growth in both main business revenue and net profit attributable to the parent company, and has implemented multiple cash dividends and share repurchases/cancellations. The company continuously increased R&D investment, holds numerous patents, and actively improved investor relations management and corporate governance systems - Focusing on Main Business, Accelerating Operational Quality Improvement: Main business revenue reached **RMB 13.94 billion**, a **15.49% year-on-year increase**; net profit attributable to the parent company was **RMB 2.03 billion**, a **48.34% year-on-year increase**[127](index=127&type=chunk) - Effectively Enhancing Investment Returns, Conveying Long-Term Investment Confidence: Implemented 2024 interim and annual profit distribution plans, distributing a total of **RMB 504 million** in cash dividends; **11,213,200 repurchased shares** have been canceled[128](index=128&type=chunk) - Technological Barriers Continuously Strengthened, R&D Investment Accelerated Conversion: Semiconductor design and sales business R&D investment was **RMB 1.72 billion**, a **9.01% year-on-year increase**; holds **4,761 authorized patents**[129](index=129&type=chunk) - Strengthening Investor Communication Channels, Improving Company Market Capitalization Management: Responded to investor concerns and published company information through various channels, and formulated 'Market Capitalization Management System' and 'Public Opinion Management System'[129](index=129&type=chunk)[130](index=130&type=chunk) - Adhering to Standardized Operations, Enhancing Governance Level: Revised the Articles of Association according to the 'Guidelines for Articles of Association of Listed Companies (2025 Revision)', abolishing the Supervisory Board, with its functions now exercised by the Board's Audit Committee[130](index=130&type=chunk) - Implementing Responsibilities of 'Key Individuals', Steadily Enhancing Performance Capabilities: Strengthened the sense of responsibility and compliance awareness of controlling shareholders, actual controllers, directors, supervisors, and senior management through training and daily reminders[130](index=130&type=chunk) [Part IV Corporate Governance, Environment, and Society](index=40&type=section&id=Part%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details the company's governance structure, including changes in directors and senior management, profit distribution plans, equity incentive programs, and its commitment to environmental and social responsibilities [1. Changes in Company Directors and Senior Management](index=40&type=section&id=1.%20Changes%20in%20Company%20Directors%20and%20Senior%20Management) This section discloses the latest changes in the company's Board of Directors and senior management, including newly elected directors, appointed senior management, and departing personnel, ensuring transparency in the corporate governance structure - The members of the company's Seventh Board of Directors include **Yu Renrong** (Chairman), **Wu Xiaodong**, **Lu Dalong**, **Jia Yuan** (Deputy General Manager), **Qiu Huanping** (Employee Director), **Chen Yu**, **Fan Mingxi** (Independent Director), **Mou Lei** (Independent Director), and **Zhu Liting** (Independent Director)[132](index=132&type=chunk) - **Wang Song** was appointed as the company's General Manager, **Xu Xing** as Chief Financial Officer, and **Ren Bing** as Board Secretary[132](index=132&type=chunk) - **Chen Zhibin** resigned as director, and **Wu Xingjun** and **Hu Renyu** resigned as independent directors[132](index=132&type=chunk) [2. Profit Distribution or Capital Reserve Conversion Plan](index=40&type=section&id=2.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) This section states that the company did not formulate a semi-annual profit distribution or capital reserve conversion to share capital plan during the reporting period, but has authorized the Board of Directors to formulate the 2025 interim profit distribution plan to continuously enhance shareholder returns - During the reporting period, the company did not formulate a semi-annual profit distribution plan or a capital reserve conversion to share capital plan[133](index=133&type=chunk) - The company has authorized the Board of Directors to formulate the 2025 interim profit distribution plan, provided profit distribution conditions are met[133](index=133&type=chunk) [3. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=40&type=section&id=3.%20Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) This section discloses the progress of the company's equity incentive plans, including the completion of the 2025 stock option incentive plan grant registration, with **19,983,400 stock options** granted to **3,361 incentive recipients**. Concurrently, some 2022 stock options were canceled due to unmet performance targets, and the exercise of the first exercise period of the 2023 Phase I stock option incentive plan was processed - The company completed the grant registration for the **2025 stock option incentive plan** on May 23, 2025, granting a total of **19,983,400 stock options** to **3,361 incentive recipients**[135](index=135&type=chunk) - Due to the company's 2024 performance not meeting the third exercise period performance targets stipulated in the '2022 Stock Option Incentive Plan', the company canceled **6,064,828 stock options**[135](index=135&type=chunk) - The exercise conditions for the first exercise period of the '2023 Phase I Stock Option Incentive Plan' have been met, and **2,260,630 stock options** were processed for **747 incentive recipients**[135](index=135&type=chunk) [Part V Significant Matters](index=42&type=section&id=Part%20V%20Significant%20Matters) This section outlines the company's fulfillment of commitments, significant related-party transactions, major contracts, use of raised funds, and other material events impacting its operations and financial position [1. Fulfillment of Commitments](index=42&type=section&id=1.%20Fulfillment%20of%20Commitments) This section details the various commitments made by the company's controlling shareholder, actual controller, directors, and senior management in the context of major asset restructuring, initial public offering, and refinancing, including maintaining the listed company's independence, regulating related-party transactions, avoiding horizontal competition, measures to mitigate dilution of immediate returns, and share lock-up, stating that all commitments were strictly fulfilled during the reporting period - The controlling shareholder and actual controller committed to maintaining the listed company's independence in personnel, assets, finance, organization, and business[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - The controlling shareholder and actual controller committed to regulating related-party transactions, avoiding improper benefit transfers, and legally fulfilling recusal obligations[142](index=142&type=chunk)[144](index=144&type=chunk) - The controlling shareholder and actual controller committed to avoiding horizontal competition, not directly or indirectly engaging in businesses identical to the company's scope of operations[145](index=145&type=chunk) - The listed company's directors, senior management, controlling shareholder, and actual controller committed to implementing compensatory measures, not overstepping authority to interfere with company operations, not encroaching on company interests, and restricting job-related consumption[146](index=146&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) - Controlling shareholder Yu Renrong committed that within two years after the share lock-up period expires, the reduction in shares will not exceed **5%**, and the reduction price will not be lower than the offering price[151](index=151&type=chunk) - All commitments were strictly fulfilled during the reporting period, with no unfulfilled situations[138](index=138&type=chunk) [10. Significant Related-Party Transactions](index=47&type=section&id=10.%20Significant%20Related-Party%20Transactions) This section discloses related-party transactions during the reporting period with associate companies Jiangsu Weida Semiconductor Co., Ltd. and Xinghao Communication Technology (Zhejiang) Co., Ltd. for goods purchase/sale and service provision, as well as related-party leases with Shanghai Weicheng Apartment Management Co., Ltd. and Xinghao Communication Technology (Zhejiang) Co., Ltd Table of Goods Purchased/Services Received | Related Party | Related Transaction Content | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Weida Semiconductor Co., Ltd. | Semiconductor chips | 4.50 million | 1.96 million | | Xinghao Communication Technology (Zhejiang) Co., Ltd. | Semiconductor chips | 4.16 million | 0 | Table of Goods Sold/Services Provided | Related Party | Related Transaction Content | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Weida Semiconductor Co., Ltd. | Semiconductor chips | 0.30 million | 0.02 million | | Xinghao Communication Technology (Zhejiang) Co., Ltd. | Provision of services | 0.50 million | 0.76 million | Related-Party Leases as Lessor | Lessee Name | Type of Leased Asset | Lease Income Recognized in Current Period (RMB) | Lease Income Recognized in Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Shanghai Weicheng Apartment Management Co., Ltd. | Buildings and structures | 4.36 million | 4.51 million | | Xinghao Communication Technology (Zhejiang) Co., Ltd. | Buildings and structures | 0.02 million | 0.66 million | [11. Significant Contracts and Their Fulfillment](index=48&type=section&id=11.%20Significant%20Contracts%20and%20Their%20Fulfillment) This section discloses significant guarantees provided by the company for its subsidiaries during the reporting period. The company provided loan guarantees and non-financing letter of guarantee for Shanghai OmniVision Integrated Circuit Group Co., Ltd., with the total guarantee amount accounting for **0.41% of the company's net assets**, and all guarantees were provided for guaranteed parties with an asset-liability ratio exceeding **70%** Company Guarantees for Subsidiaries | Indicator | Amount (RMB) | | :--- | :--- | | Total Guarantee Amount for Subsidiaries in Current Period | 387.18 million | | Total Guarantee Balance for Subsidiaries at Period-End (B) | 106.42 million | | Total Guarantee Amount (A+B) | 106.42 million | | Total Guarantee Amount as % of Company's Net Assets (%) | 0.41 | | Debt Guarantee Amount Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 106.42 million | - The company provided loan guarantees and non-financing letter of guarantee for Shanghai OmniVision Integrated Circuit Group Co., Ltd.[182](index=182&type=chunk)[183](index=183&type=chunk) [12. Explanation of Progress in Use of Raised Funds](index=50&type=section&id=12.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's convertible bond fundraising project, 'Wafer Color Filter and Micro-Lens Packaging Project,' was fully completed and closed in 2024. The company has permanently supplemented working capital with a cumulative **RMB 382.14 million** (including interest income) of remaining raised funds and completed the closure of relevant special fundraising accounts to maximize fund utilization efficiency - The company's convertible bond fundraising project, "**Wafer Color Filter and Micro-Lens Packaging Project**," has been completed and closed[163](index=163&type=chunk) - The company has permanently supplemented working capital with a cumulative **RMB 382.14 million** (including interest income) of remaining raised funds and completed the closure of relevant special fundraising accounts[163](index=163&type=chunk) [Part VI Share Changes and Shareholder Information](index=52&type=section&id=Part%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section provides an overview of the company's share capital changes, detailed shareholder information, and the shareholding status of its directors and senior management [1. Share Capital Changes](index=52&type=section&id=1.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital increased by **1,047,114 shares** due to autonomous exercise of stock options and conversion of convertible corporate bonds, reaching a total share capital of **1,217,170,649 shares**, with minimal impact on earnings per share and net assets per share Table of Share Changes | | Number Before Change | Percentage Before Change (%) | Change in Current Period (+, -) Subtotal | Number After Change | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Unrestricted Tradable Shares | 1,216,123,535 | 100.00 | 1,047,114 | 1,217,170,649 | 100.00 | | 1. RMB Ordinary Shares | 1,216,123,535 | 100.00 | 1,047,114 | 1,217,170,649 | 100.00 | | III. Total Shares | 1,216,123,535 | 100.00 | 1,047,114 | 1,217,170,649 | 100.00 | - During the reporting period, the company's incentive recipients exercised and completed share transfer registration for a total of **1,044,901 shares**, with a corresponding increase in the company's total share capital[168](index=168&type=chunk) - The number of shares formed by the conversion of the company's "**Will Convertible Bonds**" was **2,213 shares**, with a corresponding increase in the company's total share capital[169](index=169&type=chunk) [2. Shareholder Information](index=53&type=section&id=2.%20Shareholder%20Information) As of the end of the reporting period, the total number of ordinary shareholders was **144,124**. Among the top ten shareholders, Yu Renrong held **27.40%** as the largest shareholder, and Hong Kong Securities Clearing Company Limited held **13.37%**. Yu Renrong and his concerted party, Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership), collectively held **33.57% of the company's shares**, with some shares held by Yu Renrong and Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership) being pledged - As of the end of the reporting period, the total number of ordinary shareholders was **144,124**[171](index=171&type=chunk) Top Ten Shareholders' Shareholding Status | Shareholder Name | Number of Shares Held at Period-End (shares) | Percentage (%) | Status of Pledge, Mark, or Freeze | Number of Shares (shares) | | :--- | :--- | :--- | :--- | :--- | | Yu Renrong | 333.47 million | 27.40 | Pledged | 173.71 million | | Hong Kong Securities Clearing Company Limited | 162.71 million | 13.37 | None | 0 | | Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership) | 74.13 million | 6.09 | Pledged | 56.90 million | | Ningbo Oriental Institute of Technology Education Foundation | 47.10 million | 3.87 | None | 0 | | Qingdao Rongtong Minhe Investment Center (Limited Partnership) | 25.76 million | 2.12 | None | 0 | | Industrial and Commercial Bank of China - SSE 50 ETF | 16.69 million | 1.37 | None | 0 | | Shanghai Will Semiconductor Co., Ltd. Repurchase Special Securities Account | 15.13 million | 1.24 | None | 0 | | China Construction Bank Corporation - HuaXia CSI Semiconductor Chip ETF | 14.71 million | 1.21 | None | 0 | | Industrial and Commercial Bank of China - Huatai-PineBridge CSI 300 ETF | 12.85 million | 1.06 | None | 0 | | Goldman Sachs International - Proprietary Funds

凯瑞德控股股份有限公司 2025 年半年度报告全文 凯瑞德控股股份有限公司 2025 年半年度报告 【2025 年 8 月】 1 凯瑞德控股股份有限公司 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、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人纪晓文、主管会计工作负责人朱小艳及会计机构负责人(会计 主管人员)朱小艳声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 公司 2025 年半年度报告中所涉及的未来计划、发展战略等前瞻性陈述不 构成公司对投资者的实质性承诺，投资者及相关人士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，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 | | 1 œ | | --- | --- | | 1 | | | 第一节 | 重要提示、目录和释义 2 | | --- | --- | | 第二节 | 公司简介和主要财务指标 6 | | 第三节 | 管理层 ...

山东省章丘鼓风机股份有限公司 2025 年半年度报告全文 山东省章丘鼓风机股份有限公司 Shandong Zhangqiu Blower Co., LTD （山东省济南市章丘区明水经济开发区世纪大道东首） 2025 年半年度报告全文 证券简称：山东章鼓 证券代码：002598 披露日期：2025 年 8 月 30 日 1 山东省章丘鼓风机股份有限公司 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、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 公司负责人方树鹏、主管会计工作负责人赵晓芬及会计机构负责人(会计主管人员)高 敏声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 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 | | | | 第一节 | 重要提示、目录和释义 | 1 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | 7 | | 第三节 | 管理层讨论与分析 10 | | | 第四节 | ...

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company names, regulatory bodies, related parties, and core products [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This chapter defines common terms used in the report, including company names, regulatory bodies, related parties, and core products - Defined common terms such as the Company, CSRC, SSE, and related party companies like AiAi Precision and Jucheng Consulting[12](index=12&type=chunk) - Detailed professional terms for core products and materials such as "skeleton material", "light conveyor belt", "environmentally friendly material", "eco-friendly precision belt", and "general light belt"[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=5&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 an overview of the company's basic information, contact details, and a summary of key financial data and indicators for the reporting period [Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) Introduces the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative - The company's full name is AiAi Precision Industrial Conveyor Systems (Shanghai) Co., Ltd., abbreviated as AiAi Precision, with Tu Guosheng as the legal representative[14](index=14&type=chunk) [Contact Person and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Provides contact details for the company's Board Secretary, including name, address, phone, fax, and email - The Board Secretary is Su Yangzhong, with the contact address at No 580 Xiangyin Road, Yangpu District, Shanghai, and phone number 021-65305237[15](index=15&type=chunk) [Brief Introduction to Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) Briefly describes changes in the company's basic information, such as registered address, office address, website, and email - The company's registered address is Room A240, Building 7, No 700 Wanrong Road, Jing'an District, Shanghai, and its office address is No 580 Xiangyin Road, Yangpu District, Shanghai[16](index=16&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) Discloses the company's designated information disclosure newspaper, website address, and report storage location - The company's designated information disclosure newspaper is Securities Times, and the website for semi-annual reports is http://www.sse.com.cn/[17](index=17&type=chunk) [Brief Introduction to Company Stock](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) Introduces the company's stock type, listing exchange, stock abbreviation, and code - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation **\*ST AiAi** and stock code **603580**[18](index=18&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=5&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) Summarizes key accounting data and financial indicators for the current and prior periods, showing significant growth in revenue and profit, but a decrease in operating cash flow Key Accounting Data (Jan-Jun 2025 vs Jan-Jun 2024) | Major Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 102,124,390.18 | 86,900,541.06 | 17.52 | | Total Profit | 9,329,410.52 | 2,753,762.86 | 238.79 | | Net Profit Attributable to Shareholders of Listed Company | 9,164,989.78 | 3,337,962.87 | 174.57 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 8,698,189.54 | 2,532,917.87 | 243.41 | | Net Cash Flow from Operating Activities | 4,458,318.06 | 11,893,053.07 | -62.51 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 416,843,352.26 | 419,723,129.40 | -0.69 | | Total Assets (Period-end) | 754,511,623.11 | 508,148,789.98 | 48.48 | Key Financial Indicators (Jan-Jun 2025 vs Jan-Jun 2024) | Major Financial Indicators | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.0701 | 0.0255 | 174.90 | | Diluted Earnings Per Share (RMB/share) | 0.0701 | 0.0255 | 174.90 | | Basic Earnings Per Share Excluding Non-recurring Gains and Losses (RMB/share) | 0.0666 | 0.0194 | 243.30 | | Weighted Average Return on Net Assets (%) | 2.16 | 0.76 | 1.40 | | Weighted Average Return on Net Assets Excluding Non-recurring Gains and Losses (%) | 2.05 | 0.58 | 1.47 | [Non-recurring Gains and Losses Items and Amounts](index=6&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) Lists specific non-recurring gains and losses for the period, totaling **RMB 466,800.24**, and clarifies the classification of certain recurring government subsidies Non-recurring Gains and Losses Items and Amounts (Jan-Jun 2025) | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Disposal gains and losses of non-current assets | -98,030.82 | | Government grants included in current profit or loss (excluding those closely related to the company's normal business operations, in line with national policies, and continuously enjoyed according to certain standards) | 670,639.31 | | Other non-operating income and expenses | -25,116.38 | | Less: Income tax impact | 80,695.95 | | Minority interest impact (after tax) | -4.08 | | **Total** | **466,800.24** | - Amortization of deferred income, handling fee refunds for withholding taxes, and VAT additional deductions are recognized as recurring gains and losses due to compliance with national policies and continuous occurrence, involving amounts of **RMB 154,423.85**, **RMB 18,812.79**, and **RMB 223,607.09** respectively[23](index=23&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a detailed discussion and analysis of the company's industry, main business operations, core competencies, and key financial performance during the reporting period [Explanation of the Company's Industry and Main Business Operations during the Reporting Period](index=7&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) Details the company's industry, main business operations (light conveyor belts, precision metal structural parts & electronic components), market positioning, and the impact of the Taizhou Zhongshixin acquisition - The company operates in the rubber and plastic products industry (C29), specifically the conveyor belt industry, primarily engaged in the R&D, production, and sales of light conveyor belts[28](index=28&type=chunk) - The global light conveyor belt market is concentrated in Europe, North America, and Asia, with major manufacturers including Ammega, Habasit, and Forbo-Siegling, holding approximately **30% market share**; domestic leading enterprises, represented by Yongli Co., Ltd. and the Company, offer products with high cost-performance advantages[26](index=26&type=chunk)[27](index=27&type=chunk) - During the reporting period, the company acquired Taizhou Zhongshixin Electronics Co., Ltd. (holding **50.2008% equity**), adding precision metal structural parts and electronic components business, primarily providing R&D and manufacturing services for precision metal structural parts for consumer electronics and other terminal products, with main products being stamped parts and fasteners[29](index=29&type=chunk) - Taizhou Zhongshixin's controlled subsidiary, Jiangsu Quanzhishun Electronic Technology Co., Ltd., primarily engages in electronic component manufacturing, focusing on communication, automotive metal parts, and consumer electronics sectors, offering one-stop services including stamping, electroplating, injection molding, and design[29](index=29&type=chunk)[30](index=30&type=chunk) [Discussion and Analysis of Operations](index=8&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) Discusses the sales and production models for light conveyor belts and the product/market positioning of precision metal structural parts and electronic components - The light conveyor belt business adopts a sales model combining direct sales and intermediaries, with domestic sales primarily direct and overseas sales primarily through intermediaries, to expand market share and reduce service costs[31](index=31&type=chunk)[33](index=33&type=chunk) - The precision metal structural parts and electronic components business primarily provides R&D and manufacturing services for precision metal structural parts required by "Apple supply chain" customers such as Lens Technology, AAC Technologies, and Everwin Precision for consumer electronics and other terminal products[34](index=34&type=chunk) - Jiangsu Quanzhishun Electronic Technology Co., Ltd. enhances Taizhou Zhongshixin's service capabilities in the smartphone and automotive industry chains through one-stop services including stamping, electroplating, injection molding, and design[34](index=34&type=chunk) [Analysis of Core Competencies during the Reporting Period](index=9&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) Analyzes the company's core competencies in R&D, integrated supply chains, experienced management, and continuous quality improvement across its two main business segments - The light conveyor belt business possesses strong R&D capabilities, mastering core technologies and processes, capable of providing comprehensive products and services, and actively expanding into new application areas (e.g., automotive, solar energy)[36](index=36&type=chunk) - The light conveyor belt business focuses on integrating internal business chains (R&D, production, sales synergy) and external industry chains (TPU modification, expansion to felt, synchronous toothed belts, etc.) to enhance product quality and control costs[36](index=36&type=chunk)[37](index=37&type=chunk) - The light conveyor belt business has a stable and experienced management team with years of industry experience, capable of promptly grasping market dynamics and introducing new products[37](index=37&type=chunk) - The precision metal structural parts and electronic components business also possesses strong R&D capabilities, holding multiple independent intellectual property rights and patented technologies, and focuses on industry innovation to meet differentiated customer needs[39](index=39&type=chunk) - The precision metal structural parts and electronic components business management team is experienced and familiar with the stamping, fastening, and electroplating industries, and emphasizes continuous product quality improvement, certified by ISO9001, ISO14001, IATF16949, and other quality management systems[39](index=39&type=chunk) [Key Operating Performance during the Reporting Period](index=10&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) Analyzes changes in key financial statement items, including revenue, profit, cash flow, and asset-liability structure, primarily due to the Taizhou Zhongshixin acquisition Financial Statement Item Variation Analysis (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 102,124,390.18 | 86,900,541.06 | 17.52 | Light conveyor belt business increased by approximately RMB 6 million, precision metal structural parts and electronic components business (consolidated) by approximately RMB 9 million | | Total Profit | 9,329,410.52 | 2,753,762.86 | 238.79 | Operating revenue growth, financial expenses shifted from exchange losses to exchange gains | | Net Profit Attributable to Shareholders of Listed Company | 9,164,989.78 | 3,337,962.87 | 174.57 | Same as above | | Net Cash Flow from Operating Activities | 4,458,318.06 | 11,893,053.07 | -62.51 | Cash received from sales of goods and provision of services was less than the prior period | | Net Cash Flow from Investing Activities | -45,504,282.92 | -10,253,072.25 | Not Applicable | Acquisition of Taizhou Zhongshixin led to increased cash outflow | | Net Cash Flow from Financing Activities | 48,975,211.51 | -2,386,076.57 | Not Applicable | Cash inflow from bank borrowings was more than the prior period | Asset and Liability Status Changes (June 30, 2025 vs December 31, 2024) | Item | Current Period Amount (RMB) | Prior Year-end Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 103,762,271.21 | 46,145,694.11 | 124.86 | Due to consolidation of Taizhou Zhongshixin | | Prepayments | 4,982,388.83 | 1,299,510.05 | 283.41 | Due to consolidation of Taizhou Zhongshixin | | Other Receivables | 5,476,027.54 | 2,973,818.72 | 84.14 | Due to consolidation of Taizhou Zhongshixin | | Construction in Progress | 22,389,202.04 | 14,557,931.11 | 53.79 | Increase in "equipment under installation and minor projects" balance | | Right-of-use Assets | 16,654,580.68 | 7,201,507.86 | 131.27 | Due to consolidation of Taizhou Zhongshixin | | Short-term Borrowings | 109,095,482.68 | 17,041,120.00 | 540.19 | Increase in bank borrowings | | Accounts Payable | 64,448,607.67 | 32,003,502.03 | 101.38 | Due to consolidation of Taizhou Zhongshixin | | Other Payables | 33,318,422.40 | 1,048,607.13 | 3,077.40 | Increase in equity transfer payables and dividends payable | - As of the end of the reporting period, overseas assets amounted to **RMB 96.08 million**, accounting for **12.73%** of total assets[47](index=47&type=chunk) [Analysis of Major Holding and Participating Companies](index=12&type=section&id=%E5%85%AD%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Lists major subsidiaries and their financial data, highlighting the impact of consolidating Taizhou Zhongshixin Electronics Co., Ltd Major Subsidiary Financial Data (Unit: RMB million) | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB million) | Net Assets (RMB million) | Operating Revenue (RMB million) | Operating Profit (RMB million) | Net Profit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Ino | Subsidiary | Production, sales of industrial belts | 107.25752401 | 183.75 | 164.25 | 30.61 | 2.46 | 2.42 | | Shanghai Ino | Subsidiary | Sales of industrial belts | 4.489259 | 84.52 | 12.25 | 33.11 | 6.83 | 5.13 | | Xi'an AiAi | Subsidiary | Production, sales of industrial belts | 50.00 | 104.87 | 36.63 | 6.16 | -2.10 | -1.62 | | Anhui AiAi | Subsidiary | Production, sales of industrial belts | 105.22831755 | 119.95 | 85.57 | 9.55 | -3.09 | -2.28 | | Hong Kong Ino | Subsidiary | Investment | USD 1 | 113.97 | -3.26 | 30.14 | 2.72 | 2.28 | | Taizhou Zhongshixin | Subsidiary | Production, sales of precision metal structural parts and electronic components | 24.90 | 186.53 | 91.51 | 8.85 | -0.72 | -0.81 | - During the reporting period, the company acquired Taizhou Zhongshixin Electronics Co., Ltd., consolidating it from June 2025, which impacted overall production, operations, and performance[50](index=50&type=chunk) [Other Disclosure Matters](index=13&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) Discloses eight potential risks, including control, market competition, technology leakage, exchange rate, tax, raw material, funding, and human resource risks - **Control Risk**: Actual controllers Tu Mulin and Cai Ruimei jointly hold **66.94%** of shares, potentially controlling the company's production, operations, and major decisions through voting rights[50](index=50&type=chunk) - **Market Competition Risk**: The domestic conveyor belt market is highly competitive, and the company still lags behind international renowned manufacturers in brand, technology, and scale, facing intensified competition risk[50](index=50&type=chunk) - **Technology Leakage Risk**: The quality of light conveyor belt products relies on material modification formulas and process design, posing risks of core technical personnel loss or key technology leakage[51](index=51&type=chunk) - **Exchange Rate Risk**: Overseas sales revenue accounts for over **50%**, and fluctuations in RMB against major international currencies may affect the company's pricing and profitability[51](index=51&type=chunk) - **Tax Incentive Change Risk**: Changes in export tax rebate policies or the inability to renew high-tech enterprise qualifications may lead to a decline in profitability[51](index=51&type=chunk)[52](index=52&type=chunk) - **Major Raw Material Fluctuation Risk**: Costs of major raw materials like TPU and PVC account for over **60%** of operating costs, and price fluctuations may impact the company's performance[52](index=52&type=chunk) - **Funding Risk**: A buyer's market leads to an increase in credit sales, resulting in higher capital tie-ups and financial costs[52](index=52&type=chunk) - **Human Resource Risk**: Company expansion increases demand for high-quality R&D, technology industrialization, and market support human resources[53](index=53&type=chunk) [Corporate Governance, Environment and Society](index=15&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 covers changes in the company's directors and senior management, as well as its profit distribution plan for the reporting period [Changes in Company Directors and Senior Management](index=15&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) No changes occurred in the company's directors or senior management during the reporting period - No changes in the company's directors or senior management during the reporting period[56](index=56&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=15&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 will not undertake profit distribution or capital reserve conversion for the semi-annual period - The company's proposed profit distribution or capital reserve conversion plan for the semi-annual period is "none", meaning no distribution or conversion[6](index=6&type=chunk) [Significant Matters](index=16&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 addresses the fulfillment of commitments, non-operating fund occupation by related parties, illegal guarantees, audit status, major litigation, integrity, and significant related party transactions [Fulfillment of Commitments](index=16&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) No commitment matters requiring disclosure from the company's actual controllers, shareholders, or related parties during the reporting period - No commitment matters requiring disclosure from the company's actual controllers, shareholders, related parties, acquirers, or the company during the reporting period[59](index=59&type=chunk) [Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties during the Reporting Period](index=16&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) No non-operating fund occupation by controlling shareholders or other related parties during the reporting period - No non-operating fund occupation by controlling shareholders or other related parties during the reporting period[7](index=7&type=chunk) [Illegal Guarantees](index=16&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) No instances of providing external guarantees in violation of prescribed decision-making procedures during the reporting period - No instances of providing external guarantees in violation of prescribed decision-making procedures during the reporting period[8](index=8&type=chunk) [Semi-Annual Report Audit Status](index=16&type=section&id=%E5%9B%9B%E3%80%81%E5%8D%8A%E5%B9%B4%E6%8A%A5%E5%AE%A1%E8%AE%A1%E6%83%85%E5%86%B5) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [Major Litigation and Arbitration Matters](index=16&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) No major litigation or arbitration matters for the company during the reporting period - No major litigation or arbitration matters for the company during the reporting period[59](index=59&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers during the Reporting Period](index=16&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) The company, its controlling shareholder, and actual controllers maintained good integrity during the reporting period, with no records of dishonesty - During the reporting period, the company, its controlling shareholder, and actual controllers strictly complied with all laws and regulations, maintained good integrity, and had no records of dishonesty[59](index=59&type=chunk) [Significant Related Party Transactions](index=16&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) Details significant related party transactions, including purchases, sales, leases, and fund transfers, along with outstanding balances at period-end - Related party transactions related to daily operations occurred during the reporting period, detailed in Section VIII "Financial Report", XIV "Related Parties and Related Party Transactions"[60](index=60&type=chunk) - Related party creditor-debtor relationships occurred during the reporting period, detailed in Section VIII "Financial Report", XIV "Related Parties and Related Party Transactions"[63](index=63&type=chunk) [Share Changes and Shareholder Information](index=18&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital and provides an overview of its shareholder structure, including major shareholders and actual controllers [Share Capital Changes](index=18&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) No changes occurred in the company's total share capital or share structure during the reporting period - No changes occurred in the company's total share capital or share structure during the reporting period[66](index=66&type=chunk) [Shareholder Information](index=18&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) Details the company's shareholder structure, including the total number of common shareholders and the shareholdings of the top ten, with actual controllers holding **66.94%** Total Number of Common Shareholders as of the End of the Reporting Period | Indicator | Number (Households) | | :--- | :--- | | Total Number of Common Shareholders | 9,158 | Shareholding of Top Ten Shareholders (as of the End of the Reporting Period) | Shareholder Name | Shares Held at Period-end | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Tu Mulin | 44,100,000 | 33.75 | Overseas Natural Person | | Cai Ruimei | 43,365,000 | 33.19 | Overseas Natural Person | | Xiamen Huarui Investment Management Co., Ltd. | 1,964,400 | 1.50 | Domestic Non-State-Owned Legal Person | | Xie Zhengli | 599,800 | 0.46 | Domestic Natural Person | | Tu Guosheng | 576,000 | 0.44 | Overseas Natural Person | | Qin Jie | 521,300 | 0.40 | Domestic Natural Person | | Jin Ye | 505,100 | 0.39 | Domestic Natural Person | | UBS AG | 455,045 | 0.35 | Overseas Legal Person | | BARCLAYS BANK PLC | 450,054 | 0.34 | Overseas Legal Person | | Hu Xuemin | 422,400 | 0.32 | Domestic Natural Person | - The company's controlling shareholders and actual controllers are Tu Mulin and Cai Ruimei, who are acting in concert with Tu Guosheng[69](index=69&type=chunk) [Bond-Related Information](index=21&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 confirms the absence of company bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period [Company Bonds (including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no company bonds or non-financial enterprise debt financing instruments during the reporting period - The company had no company bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[73](index=73&type=chunk) [Convertible Corporate Bonds](index=21&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E6%83%85%E5%86%B5) The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[73](index=73&type=chunk) [Financial Report](index=22&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 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, taxes, and specific financial items [Audit Report](index=22&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) [Financial Statements](index=22&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Presents the company's consolidated and parent company financial statements for the first half of 2025, reflecting financial position and operating results Consolidated Balance Sheet Summary (as of June 30, 2025) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 754,511,623.11 | 508,148,789.98 | | Total Liabilities | 269,152,937.74 | 73,124,512.85 | | Total Owners' Equity | 485,358,685.37 | 435,024,277.13 | Consolidated Income Statement Summary (Jan-Jun 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 102,124,390.18 | 86,900,541.06 | | Total Operating Costs | 92,347,589.29 | 85,968,463.85 | | Total Profit | 9,329,410.52 | 2,753,762.86 | | Net Profit | 7,971,242.33 | 2,437,557.85 | | Net Profit Attributable to Parent Company Shareholders | 9,164,989.78 | 3,337,962.87 | Consolidated Cash Flow Statement Summary (Jan-Jun 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,458,318.06 | 11,893,053.07 | | Net Cash Flow from Investing Activities | -45,504,282.92 | -10,253,072.25 | | Net Cash Flow from Financing Activities | 48,975,211.51 | -2,386,076.57 | | Net Increase in Cash and Cash Equivalents | 9,133,801.26 | -485,583.34 | [Company Basic Information](index=40&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) Introduces the company's history, capital, legal representative, registration, actual controllers, and current business scope - The company, formerly AiAi Industrial Belt (Shanghai) Co., Ltd., was first listed on May 15, 2017[105](index=105&type=chunk) - As of June 30, 2025, the company's total share capital and registered capital were both **RMB 130,673,200.00**[106](index=106&type=chunk) - The company's actual controllers are Taiwanese natural persons Tu Mulin and Cai Ruimei[106](index=106&type=chunk) - The company's main business activities include the R&D, production, and sales of light conveyor belts and precision metal structural parts & electronic components[106](index=106&type=chunk) [Basis of Financial Statement Preparation](index=40&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) States that the financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and CSRC regulations - The company's financial statements are prepared on a going concern basis, with recognition and measurement performed in accordance with enterprise accounting standards, their application guidelines, and interpretations[107](index=107&type=chunk) - The company assessed its going concern ability for 12 months from the end of the reporting period and found no matters affecting its ability to continue as a going concern[108](index=108&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=40&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) Discloses specific accounting policies and estimates for key areas like business combinations, financial instruments, inventories, and revenue recognition, providing context for financial statements - Detailed accounting treatment methods for business combinations under common control and non-common control, including measurement of assets and liabilities, and recognition of goodwill[115](index=115&type=chunk)[116](index=116&type=chunk) - Classification and measurement of financial instruments are based on the business model for managing financial assets and contractual cash flow characteristics, categorized as financial assets measured at amortized cost, fair value through profit or loss, or fair value through other comprehensive income[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Inventories are valued using the moving weighted average method upon issuance and measured at the lower of cost or net realizable value, with provision for inventory impairment[160](index=160&type=chunk)[161](index=161&type=chunk) - Long-term equity investments in subsidiaries are accounted for using the cost method, while investments in associates and joint ventures are accounted for using the equity method[172](index=172&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **20-25 years** for buildings and **5-10 years** for machinery and equipment[179](index=179&type=chunk) - Revenue is recognized when the customer obtains control of the related goods, with domestic sales recognized upon customer receipt and overseas sales upon delivery to the carrier and completion of customs declaration[201](index=201&type=chunk)[204](index=204&type=chunk) - Government grants are classified as asset-related or income-related, recognized as deferred income or directly into profit or loss, respectively[207](index=207&type=chunk)[208](index=208&type=chunk) - Deferred income tax assets and liabilities are recognized and measured based on temporary differences between the carrying amounts of assets and liabilities and their tax bases[209](index=209&type=chunk)[210](index=210&type=chunk) - As a lessee, simplified treatment is applied to short-term leases and leases of low-value assets; other leases recognize right-of-use assets and lease liabilities[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) [Taxes](index=69&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) Details the company's main tax categories and rates, including VAT and corporate income tax, noting the **15%** preferential rate for high-tech enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods, taxable sales services income, intangible assets or real estate | 23%, 19%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7%, 5% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | - The company's headquarters and Suzhou Ino Industrial Belt Co., Ltd. are recognized as high-tech enterprises, and for the first half of 2025, corporate income tax is calculated at a rate of **15.00%**[229](index=229&type=chunk) [Notes to Consolidated Financial Statement Items](index=70&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) Provides detailed notes and analysis for various assets, liabilities, owners' equity, income, costs, and expenses in the consolidated financial statements, including period-end balances, beginning-of-period balances, current period changes, and reasons for changes, with particular emphasis on the impact of the acquisition of Taizhou Zhongshixin Electronics Co., Ltd - Cash and cash equivalents at period-end amounted to **RMB 48,939,173.88**, of which **RMB 7,949,885.81** was deposited overseas[231](index=231&type=chunk) - Accounts receivable at period-end had a carrying value of **RMB 103,762,271.21**, a significant increase from the beginning of the period, primarily due to the consolidation of Taizhou Zhongshixin[243](index=243&type=chunk) - Inventories at period-end had a carrying value of **RMB 131,554,403.02**, an increase from the beginning of the period, primarily due to the consolidation of Taizhou Zhongshixin[269](index=269&type=chunk) - Short-term borrowings at period-end amounted to **RMB 109,095,482.68**, a substantial increase from the beginning of the period, primarily due to increased bank borrowings[307](index=307&type=chunk) - Other payables at period-end amounted to **RMB 33,318,422.40**, a substantial increase from the beginning of the period, primarily due to increased payables for equity transfer and dividends[320](index=320&type=chunk) - Operating revenue for the current period was **RMB 102,124,390.18**, with light conveyor belt business revenue of **RMB 92,517,028.33** and precision metal structural parts & electronic components business revenue of **RMB 8,655,901.97**[341](index=341&type=chunk) - Financial expenses for the current period were **RMB -5,034,831.71**, primarily due to exchange gains replacing losses from the previous period[344](index=344&type=chunk) - Net cash flow from investing activities was **RMB -45,504,282.92**, primarily due to increased cash outflow from investing activities in the current period for the acquisition of Taizhou Zhongshixin[360](index=360&type=chunk) [R&D Expenses](index=110&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Lists the composition of the company's R&D expenses by nature of cost for the reporting period, with a total R&D expenditure of **RMB 4,354,625.13**, all expensed R&D Expenses by Nature of Cost (Jan-Jun 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Material Consumption | 1,433,713.22 | 1,046,925.97 | | Personnel Costs | 1,462,392.49 | 1,819,859.83 | | Fixed Asset Depreciation | 1,162,253.90 | 1,691,119.65 | | Fuel and Power | 144,862.68 | 163,741.36 | | Other | 151,402.84 | 114,938.21 | | **Total** | **4,354,625.13** | **4,836,585.02** | - All R&D expenses for the current period were expensed, with no capitalized R&D expenses[373](index=373&type=chunk) [Changes in Consolidation Scope](index=111&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) Details the acquisition of **50.2008%** equity in Taizhou Zhongshixin Electronics Co., Ltd., its consolidation from May 31, 2025, and the resulting **RMB 87.089 million** goodwill - Acquired **50.2008%** equity of Taizhou Zhongshixin Electronics Co., Ltd. through a non-common control business combination in the current period, with the acquisition date being May 31, 2025[375](index=375&type=chunk) Taizhou Zhongshixin Electronics Co., Ltd. Consolidation Cost and Goodwill | Item | Amount (RMB million) | | :--- | :--- | | Consolidation Cost (Cash) | 125.00 | | Less: Fair Value Share of Identifiable Net Assets Acquired | 37.911 | | **Goodwill** | **87.089** | - From the acquisition date to the end of the period (June 30, 2025), Taizhou Zhongshixin generated revenue of **RMB 8.8453 million**, net profit of **RMB -0.8106 million**, and cash flow of **RMB -2.7672 million**[375](index=375&type=chunk) [Interests in Other Entities](index=113&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) Details the company's enterprise group structure, including domestic and overseas subsidiaries, their business nature, and acquisition methods - The company owns multiple domestic and overseas subsidiaries, including Suzhou Ino, Shanghai Ino, Bode Belting GmbH, Hong Kong Ino, ARCK Beteiligungen GmbH, INO Prozesstechnik GmbH, INO USA INC, INO POLSKA SP Z O O, Suzhou Bode, Xi'an AiAi, Anhui AiAi, Taizhou Zhongshixin Electronics Co., Ltd., and Jiangsu Quanzhishun Electronic Technology Co., Ltd[379](index=379&type=chunk)[380](index=380&type=chunk) - Taizhou Zhongshixin Electronics Co., Ltd. was included in the consolidation scope through acquisition, with a shareholding of **50.2008%**; its subsidiary, Jiangsu Quanzhishun Electronic Technology Co., Ltd., is indirectly held at **51.00%**[380](index=380&type=chunk) [Government Grants](index=115&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) Discloses government grant-related liabilities and total grants recognized in profit or loss for the period, with deferred income of **RMB 3,533,338.57** and total grants of **RMB 825,063.16** Government Grant Liability Items (as of June 30, 2025) | Financial Statement Item | Beginning Balance (RMB) | New Grants in Current Period (RMB) | Amount Included in Non-operating Income in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 3,687,762.42 | 0.00 | 0.00 | 154,423.85 | 3,533,338.57 | Asset-related | Government Grants Recognized in Profit or Loss (Jan-Jun 2025) | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Asset-related | 154,423.85 | 154,423.85 | | Income-related | 670,639.31 | 1,060,040.00 | | **Total** | **825,063.16** | **1,214,463.85** | [Risks Related to Financial Instruments](index=116&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) Explains the company's credit, liquidity, and market risks (foreign exchange, interest rate) and the strategies employed for their management - **Credit risk** primarily arises from cash and cash equivalents, notes receivable, accounts receivable, accounts receivable financing, other receivables, etc; the company manages this risk by assessing customer creditworthiness and regularly monitoring credit records[386](index=386&type=chunk) - As of June 30, 2025, accounts receivable from the top five customers accounted for **36.50%** of the total, and other receivables from the top five companies accounted for **68.74%** of the total[389](index=389&type=chunk) - **Liquidity risk** is managed by regularly monitoring short-term and long-term liquidity needs, ensuring sufficient cash reserves and readily marketable securities[390](index=390&type=chunk) - **Foreign exchange risk** primarily stems from foreign currency-denominated assets and liabilities of overseas operating entities in Euro, USD, and Zloty; if the RMB appreciates or depreciates by **10%** against major foreign currencies, the annual net profit would increase or decrease by **RMB 1.637 million**[391](index=391&type=chunk)[392](index=392&type=chunk) - **Interest rate risk** primarily arises from bank borrowings; the company's headquarters finance department continuously monitors interest rate levels and makes timely adjustments based on market conditions[392](index=392&type=chunk)[393](index=393&type=chunk) [Disclosure of Fair Value](index=119&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) Discloses the fair value of the company's assets and liabilities measured at fair value at the end of the reporting period, primarily including accounts receivable financing and other non-current financial assets, and explains their valuation techniques Fair Value of Assets and Liabilities Measured at Fair Value at Period-End (as of June 30, 2025) | Item | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | Accounts Receivable Financing | 2,153,141.48 | 2,153,141.48 | | Other Non-current Financial Assets | 34,327,768.98 | 34,327,768.98 | | **Total Assets Measured at Fair Value on a Recurring Basis** | **36,480,910.46** | **36,480,910.46** | - Accounts receivable financing (bank acceptance bills) are valued at their face amount as fair value; valuation techniques for other non-current financial assets are not detailed[397](index=397&type=chunk) - Financial assets and liabilities not measured at fair value primarily include cash and cash equivalents, notes receivable, accounts receivable, other receivables, accounts payable, other payables, and short-term borrowings[399](index=399&type=chunk) [Related Parties and Related Party Transactions](index=120&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) Details the company's related parties and significant related party transactions, including purchases, sales, leases, and fund transfers, along with outstanding balances at period-end - The company's ultimate controlling parties are Tu Mulin, Cai Ruimei, and 4 parties acting in concert, with a combined shareholding of **67.79%**[401](index=401&type=chunk) - During the reporting period, the company engaged in related party transactions for purchases and sales of goods with Jinfengfu (Chuzhou) Technology Co., Ltd., Chuzhou Hechuan Logistics Machinery Co., Ltd., Xi'an Degao Printing and Dyeing Automation Engineering Co., Ltd., and its subsidiaries[403](index=403&type=chunk) - The company, as lessor, leased buildings to Xi'an Degao Printing and Dyeing Automation Engineering Co., Ltd., recognizing lease income of **RMB 762,044.04** in the current period[404](index=404&type=chunk) - The company, as lessee, leased buildings from ANKE Gewerbeimmobilien GmbH & Co KG, paying **RMB 250,784.34** in rent in the current period[407](index=407&type=chunk) - Controlling shareholder Cai Ruimei provided loans to subsidiaries; as of June 30, 2025, loan balances were **EUR 1.53 million** (Ino Industrial Belt Co., Ltd.) and **EUR 0.2944 million** (ARCK Beteiligungen GmbH)[409](index=409&type=chunk)[411](index=411&type=chunk) - As of period-end, accounts receivable from Xi'an Degao Printing and Dyeing Automation Engineering Co., Ltd. amounted to **RMB 2,665,089.34**; other receivables from Tu Xiaozhu amounted to **RMB 420,120.00**[414](index=414&type=chunk) - As of period-end, short-term borrowings payable to Cai Ruimei amounted to **RMB 13,443,840.00**, and long-term borrowings amounted to **RMB 2,436,696.00**[417](index=417&type=chunk) [Notes to Parent Company Financial Statement Major Items](index=126&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Provides detailed notes for key parent company financial statement items, including accounts receivable, other receivables, and long-term equity investments, with aging analysis and bad debt provisions [Disclosure of Parent Company Accounts Receivable by Aging](index=126&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE%E6%8C%89%E8%B4%A6%E9%BE%84%E6%8A%AB%E9%9C%B2) Details the aging analysis of the parent company's accounts receivable at the end of the reporting period Parent Company Accounts Receivable by Aging (as of June 30, 2025) | Aging | Ending Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 Year (inclusive) | 37,319,414.79 | 41,365,404.18 | | 1 to 2 Years | 2,782,477.46 | 1,423,507.42 | | 2 to 3 Years | 180,320.25 | 65,807.55 | | Over 3 Years | 536,258.30 | 286,044.05 | | **Total** | **40,818,470.80** | **43,140,763.20** | - Parent company accounts receivable impairment provision at period-end was **RMB 2,452,893.02**, with a provision rate of **6.01%**[425](index=425&type=chunk) - Parent company long-term equity investments at period-end had a carrying value of **RMB 383,898,019.39**, increasing by **RMB 125,000,000.00** in the current period, primarily due to additional investment in Taizhou Zhongshixin Electronics Co., Ltd[441](index=441&type=chunk)[445](index=445&type=chunk) [Supplementary Information](index=134&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) Provides supplementary financial information, including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share, further elaborating on the financial report content [Detailed Statement of Non-recurring Gains and Losses](index=134&type=section&id=%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E6%98%8E%E7%BB%86%E8%A1%A8) Presents a detailed breakdown of non-recurring gains and losses for the reporting period Detailed Statement of Non-recurring Gains and Losses (Jan-Jun 2025) | Item | Amount (RMB) | | :--- | :--- | | Disposal gains and losses of non-current assets | -98,030.82 | | Government grants included in current profit or loss (excluding those closely related to the company's normal business operations, in line with national policies, and continuously enjoyed according to certain standards) | 670,639.31 | | Other non-operating income and expenses | -25,116.38 | | Less: Income tax impact | 80,695.95 | | Minority interest impact (after tax) | -4.08 | | **Total** | **466,800.24** | [Return on Net Assets and Earnings Per Share](index=134&type=section&id=%E5%87%80%E8%B5%84%E4%BA%A7%E6%94%B6%E7%9B%8A%E7%8E%87%E5%8F%8A%E6%AF%8F%E8%82%A1%E6%94%B6%E7%8E%87) Provides key profitability metrics including weighted average return on net assets and basic and diluted earnings per share Return on Net Assets and Earnings Per Share (Jan-Jun 2025) | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB/share) | Diluted Earnings Per Share (RMB/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 2.16 | 0.0701 | 0.0701 | | Net Profit Attributable to Common Shareholders of the Company Excluding Non-recurring Gains and Losses | 2.05 | 0.0666 | 0.0666 |

1 / 188 基蛋生物科技股份有限公司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。 基蛋生物科技股份有限公司2025 年半年度报告 公司代码：603387 公司简称：基蛋生物 基蛋生物科技股份有限公司 2025 年半年度报告 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。 四、 公司负责人苏恩本、主管会计工作负责人倪文及会计机构负责人（会计主管人员）倪文声 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 公司董事会提议拟以实施权益分派股权登记日总股本数为基数（具体日期将在权益分派实施 公告中明确，在实施权益分派的股权登记日前公司总股本发生变动的，拟维持分配总额不变，相 应调整每股分配比例），向全体股东每 10 股派发人民币 0.9 元（含税），以第四届董事会第七次会 议召开日的前一个交易日（即 2025 年 8 月 28 日）总股本 507,153,517 股进行计算，本次 ...

元成环境股份有限公司2025 年半年度报告 公司代码：603388 公司简称：*ST 元成 元成环境股份有限公司 2025 年半年度报告 1 / 193 元成环境股份有限公司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。 四、 公司负责人祝昌人、主管会计工作负责人张彤及会计机构负责人（会计主管人员）程俊声明： 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 不适用 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告所涉及的公司未来发展规划、战略目标等前瞻性陈述，不构成公司对投资者的实质性承诺，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 十、 重大风险提示 ...

美年大健康产业控股股份有限公司 2025 年半年度报告全文 美年大健康产业控股股份有限公司 2025 年半年度报告 2025 年 08 月 1 美年大健康产业控股股份有限公司 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、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人俞熔、主管会计工作负责人侯灵昌及会计机构负责人（会计 主管人员）侯灵昌声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告涉及的未来计划等前瞻性陈述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。 公司不存在经营状况、财务状况和持续盈利能力方面有严重不利影响的 风险因素。有关公司可能面临的风险及公司应对措施等详见本报告"第三节 管理层讨论与分析"中"十、公司面临的风险和应对措施"，敬请投资者认真阅 读并注意投资风险。 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 | 目录 ...

Important Notices, Table of Contents, and Definitions [Important Notices](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the truthfulness and accuracy of the semi-annual report and plans no profit distribution for the period - The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, and bear individual and joint legal responsibility[3](index=3&type=chunk) - The company plans **not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital**[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) The report is structured into eight main sections covering key corporate and financial information Report Chapters | Section | Page Number | | :--- | :--- | | Section I Important Notices, Table of Contents, and Definitions | 2 | | Section II Company Profile and Key Financial Indicators | 6 | | Section III Management Discussion and Analysis | 9 | | Section IV Corporate Governance, Environment, and Society | 21 | | Section V Significant Events | 27 | | Section VI Changes in Share Capital and Shareholders | 38 | | Section VII Bond-related Matters | 43 | | Section VIII Financial Report | 44 | [List of Documents for Inspection](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) Available documents for inspection include signed financial statements and the semi-annual report text - Documents available for inspection include financial statements signed by company officials, the semi-annual report text signed by the legal representative, and originals of all documents publicly disclosed during the reporting period[8](index=8&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms used throughout the report, including company entities and reporting periods Key Definitions | Term | Refers to | Definition | | :--- | :--- | :--- | | The Company, Chenming Group, Chenming Paper | Refers to | Shandong Chenming Paper Holdings Limited and its subsidiaries | | Parent Company, Shouguang Headquarters | Refers to | Shandong Chenming Paper Holdings Limited | | Chenming Holdings | Refers to | Chenming Holdings Limited | | SZSE | Refers to | Shenzhen Stock Exchange | | HKEX | Refers to | The Stock Exchange of Hong Kong Limited | | CSRC | Refers to | China Securities Regulatory Commission | | Shandong Securities Regulatory Bureau | Refers to | China Securities Regulatory Commission Shandong Regulatory Bureau | | Zhanjiang Chenming | Refers to | Zhanjiang Chenming Pulp & Paper Co, Ltd | | Jiangxi Chenming | Refers to | Jiangxi Chenming Paper Co, Ltd | | Huanggang Chenming | Refers to | Huanggang Chenming Pulp & Paper Co, Ltd | | Hong Kong Chenming | Refers to | Chenming (Hong Kong) Limited | | Jilin Chenming | Refers to | Jilin Chenming Paper Co, Ltd | | Shouguang Meilun | Refers to | Shouguang Meilun Paper Co, Ltd | | Jiangxi Port | Refers to | Jiangxi Chenming Port Co, Ltd | | Chenming Leasing | Refers to | Shandong Chenming Financial Leasing Co, Ltd and its subsidiaries | | Reporting Period | Refers to | January 1, 2025 to June 30, 2025 | | Beginning of the Year/Period | Refers to | January 1, 2025 | | End of the Half-Year/Period | Refers to | June 30, 2025 | Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company is listed on both the Shenzhen and Hong Kong stock exchanges, with no changes to its contact or registration details during the period Company Basic Information | Stock Name | ST Chenming | Stock Code | 000488 | | :--- | :--- | :--- | :--- | | | ST Chenming B | | 200488 | | Stock Exchange | Shenzhen Stock Exchange | | | | Stock Name | Chenming Paper | Stock Code | 01812 | | Stock Exchange | The Stock Exchange of Hong Kong Limited | | | | Company Name (Chinese) | 山东晨鸣纸业集团股份有限公司 | | | | Company Abbreviation (Chinese) | 晨鸣纸业 | | | | Company Name (English) | SHANDONG CHENMING PAPER HOLDINGS LIMITED | | | | Company Abbreviation (English) | SCPH | | | | Legal Representative | Hu Changqing | | | - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period, as detailed in the 2024 annual report[14](index=14&type=chunk) [Contact Persons and Methods](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Contact information for the Board Secretary, Securities Affairs Representative, and Hong Kong Company Secretary is provided for investor communication Company Contact Information | | Board Secretary | Securities Affairs Representative | | Hong Kong Company Secretary | | :--- | :--- | :--- | :--- | :--- | | Name | Yuan Xikun | Zhang Chuanyong | Chen Lin | Zhu Hanliang | | Email | chenmmingpaper@163.com | friend537@163.com | ZQCL0536@163.com | liamchu@li-partners.com | | Address | 2199 Nongsheng East Street, Shouguang, Shandong | 2199 Nongsheng East Street, Shouguang, Shandong | | 22/F, World-Wide House, Central, Hong Kong | | Phone | 0536-2158008 | 0536-2158008 | | 00852-21629600 | | Fax | 0536-2158977 | 0536-2158977 | | 00852-25010028 | [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's revenue and net profit declined sharply, with a net loss attributable to shareholders of 3.86 billion yuan, a year-on-year decrease of 13,567.59% Key Accounting Data and Financial Indicators (Current Period vs Prior Year Period/End) | Indicator | Current Period/End | Prior Year Period/End | Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 2,106,630,952.30 | 13,884,731,519.04 | -84.83% | | Net Profit Attributable to Shareholders (Yuan) | -3,857,953,190.56 | 28,646,205.42 | -13,567.59% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | -3,645,363,615.81 | -270,865,043.51 | -1,245.82% | | Net Cash Flow from Operating Activities (Yuan) | 785,303,274.19 | 1,992,499,393.07 | -60.59% | | Basic Earnings Per Share (Yuan/Share) | -1.31 | 0.01 | -13,200.00% | | Diluted Earnings Per Share (Yuan/Share) | -1.31 | 0.01 | -13,200.00% | | Weighted Average Return on Equity | -53.39% | 0.17% | Decreased by 53.56 percentage points | | Total Assets (Yuan) | 54,698,875,991.74 | 63,509,295,142.08 | -13.87% | | Net Assets Attributable to Shareholders (Yuan) | 5,318,763,216.33 | 9,156,104,358.91 | -41.91% | [Non-recurring Profit and Loss Items and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring losses totaled -212.59 million yuan, mainly driven by asset disposals, fair value changes of biological assets, and debt restructuring Non-recurring Profit and Loss Items and Amounts | Item | Amount (Yuan) | Notes | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets (including write-offs of asset impairment provisions) | -97,049,878.76 | | | Government Grants Recognized in Current Profit/Loss (excluding grants closely related to normal business operations) | 25,503,367.73 | | | Fair Value Gains/Losses from Financial Assets/Liabilities held by non-financial enterprises, and gains/losses from their disposal | 8,439,571.88 | | | Reversal of Impairment Provisions for Individually Tested Receivables | 13,201,496.76 | | | Gains/Losses on Debt Restructuring | -37,171,293.24 | | | Gains/Losses from Fair Value Changes of Consumable Biological Assets Measured at Fair Value | -129,059,190.34 | | | Other Non-operating Income and Expenses | -18,188,031.78 | | | Less: Income Tax Effect | 2,948,680.16 | | | Minority Interest Effect (After Tax) | -24,683,063.16 | | | Total | -212,589,574.75 | | - Other income of 24,301,996.32 yuan from asset-related government grants closely tied to normal business operations is treated as recurring profit and loss[22](index=22&type=chunk) Management Discussion and Analysis [Principal Business Activities During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's core business is pulp and paper manufacturing, but production halts for maintenance led to a significant revenue decline and a net loss of 3.86 billion yuan - The company is a large modern enterprise group focused on pulp and paper manufacturing, implementing a pulp-paper integration strategy with production bases across China[27](index=27&type=chunk) - During the reporting period, **production lines at the Zhanjiang, Jilin, and Shouguang bases were shut down for maintenance**, leading to a decline in production, sales, revenue, and profit[28](index=28&type=chunk) - From January to June 2025, the company achieved **operating revenue of 2.11 billion yuan** and a **net loss attributable to shareholders of 3.86 billion yuan**[28](index=28&type=chunk) Industry Overview The paper industry faced oversupply and weak demand in H1 2025, causing price drops and a 21.4% decline in total industry profit - In H1 2025, new capacity in China's paper industry led to increased supply and a structural imbalance, causing **significant price drops for cultural paper and white cardboard**[25](index=25&type=chunk) - From January to June 2025, the paper and paper products industry's **operating revenue decreased by 2.3% YoY** to 681.21 billion yuan, while **total profit fell by 21.4% YoY** to 17.57 billion yuan[25](index=25&type=chunk) - In the medium to long term, driven by "dual carbon" strategies and "anti-involution" policies, the paper industry's prosperity is expected to improve[26](index=26&type=chunk) Main Products and Their Uses The company offers a diverse product portfolio across seven major series, supported by leading R&D platforms - The company emphasizes R&D through leading innovation platforms, including a National Enterprise Technology Center and a Post-doctoral Research Workstation[29](index=29&type=chunk) Company's Main Paper Products and Uses | Category | Main Brands and Varieties | Application | | :--- | :--- | :--- | | Cultural Paper Series | "Biyuntian", "Yunjing" offset paper, lightweight paper, blueprint paper | Printing books, textbooks, magazines, notebooks, exam papers | | Coated Paper Series | "Xuesha", "Xueying" single/double-sided coated paper, matte coated paper | High-end albums, magazines, calendars, posters, cigarette labels, packaging | | White Cardboard Series | "Liya" series white card, food card, coated kraft, playing card stock | High-end gift boxes, cosmetic boxes, hang tags, handbags, promotional materials | | Copy Paper Series | "Jinmingyang", "Jinchenming" copy paper | Printing, copying, business documents, training materials | | Industrial Paper Series | High-grade/standard release liner base paper, PE-coated base paper | Base for release paper, self-adhesive label face stock, playing card composite | | Specialty Paper Series | Thermal paper, glassine paper | Labels for electronics, medicine, food, supermarkets; double-sided tape base | | Tissue Paper Series | Toilet paper, facial tissue, paper towels, napkins, "Xingzhilian" | Daily hygiene, restaurants, hotels, offices, and household use | [Analysis of Liquidity, Financial Resources, and Capital Structure under HKEX Listing Rules](index=10&type=section&id=%E4%BA%8C%E3%80%81%E6%8C%89%E9%A6%99%E6%B8%AF%E8%81%94%E4%BA%A4%E6%89%80%E4%B8%8A%E5%B8%82%E8%A7%84%E5%88%99%E6%8A%AB%E9%9C%B2%E7%9A%84%E8%B5%84%E9%87%91%E6%B5%81%E5%8A%A8%E6%80%A7%E5%8F%8A%E8%B4%A2%E6%94%BF%E8%B5%84%E6%BA%90%E3%80%81%E8%B5%84%E6%9C%AC%E7%BB%93%E6%9E%84%E5%88%86%E6%9E%90) As of June 30, 2025, the company's liquidity and solvency were constrained, with an asset-liability ratio of 85.93% and total bank borrowings of 29.10 billion yuan Liquidity and Financial Resources as of June 30, 2025 | Indicator | Amount/Ratio | | :--- | :--- | | Current Ratio | 23.72% | | Quick Ratio | 17.34% | | Asset-Liability Ratio | 85.93% | | Total Bank Borrowings | 29.103 billion yuan | | Cash and Cash Equivalents | 954 million yuan | | Number of Employees | 9,095 | | Total Employee Salaries in H1 | 432.10 million yuan | - The Group's **liquidity and solvency were constrained** due to production halts at some bases[31](index=31&type=chunk) - A **syndicated loan of 2.31 billion yuan** for resuming production has been approved, and the company will gradually restart operations based on funding and market conditions[31](index=31&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core strengths lie in its pulp-paper integration strategy, scale, diverse product range, and advanced technology - The company adheres to a **pulp-paper integration strategy** and is the first in China to achieve a balance between wood pulp self-sufficiency and paper production capacity[32](index=32&type=chunk) - The company has the **most diverse product portfolio** in the domestic paper industry, covering cultural paper, white cardboard, coated paper, and more[34](index=34&type=chunk) - The company possesses national-level R&D institutions, including a **National Enterprise Technology Center** and a Post-doctoral Research Workstation[37](index=37&type=chunk) - With a cumulative **environmental investment of over 8 billion yuan**, the company's environmental protection indicators are at the forefront nationally and globally[39](index=39&type=chunk) [Analysis of Principal Business](index=12&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Operating revenue plummeted by 84.83% due to reduced paper sales from production halts, leading to a significant shift in revenue composition and a substantial loss Year-on-Year Changes in Key Financial Data | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,106,630,952.30 | 13,884,731,519.04 | -84.83% | Reduced paper sales due to production halts | | Operating Costs | 3,727,203,720.24 | 12,185,505,709.00 | -69.41% | Reduced paper sales due to production halts | | R&D Expenses | 36,567,185.69 | 611,914,096.41 | -94.02% | Reduced R&D investment due to production halts | | Investment Income | -430,669,782.44 | 181,332,096.11 | -337.50% | Decrease in investment income from associates and equity disposals | | Fair Value Change Gains | -129,487,561.79 | -2,221,596.44 | -5,728.58% | Increased losses from fair value changes in forest assets | | Credit Impairment Losses | -506,322,424.22 | -124,386,619.66 | 307.06% | Increased bad debt provisions for receivables | | Asset Impairment Losses | -240,561,409.32 | -3,041,427.75 | 7,809.49% | Increased impairment provisions for equipment | | Net Cash Flow from Operating Activities | 785,303,274.19 | 1,992,499,393.07 | -60.59% | Decreased sales revenue due to lower sales volume | Operating Revenue Composition (by Industry, Product, Region) | Item | Current Period Amount (Yuan) | % of Revenue | Prior Year Period Amount (Yuan) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | Machine-made Paper | 1,121,420,145.71 | 53.23% | 12,429,565,296.10 | 89.52% | -90.98% | | Chemical Pulp | 740,160,267.96 | 35.13% | 676,203,401.45 | 4.87% | 9.46% | | **By Product** | | | | | | | Coated Paper | 322,730,071.72 | 15.32% | 2,407,591,953.96 | 17.34% | -86.60% | | White Cardboard | 260,654,282.46 | 12.37% | 2,926,439,060.82 | 21.08% | -91.09% | | Offset Paper | 213,202,847.01 | 10.12% | 3,710,036,202.61 | 26.72% | -94.25% | | **By Region** | | | | | | | Mainland China | 2,075,083,434.21 | 98.50% | 11,052,530,679.12 | 79.60% | -81.23% | | Other Countries and Regions | 31,547,518.09 | 1.50% | 2,832,200,839.92 | 20.40% | -98.89% | [Analysis of Non-Principal Business](index=14&type=section&id=%E4%BA%94%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-principal business activities, including investment losses and impairment charges, had a significant negative impact on total profit Impact of Non-Principal Business on Total Profit | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Other Income | 22,794,816.03 | -0.55% | Government grants related to daily operations and debt restructuring gains | Partially sustainable (annual amortization of grants) | | Investment Income | -430,669,782.44 | 10.30% | Investment income from external investments and gains from disposal of equity/financial assets | No | | Fair Value Change Gains/Losses | -129,487,561.79 | 3.10% | Fair value fluctuations of Bohai Bank stock and forest assets | No | | Credit Impairment Losses | -506,322,424.22 | 12.11% | Bad debt provisions for receivables | No | | Asset Impairment Losses | -240,561,409.32 | 5.75% | Impairment provisions for non-current assets | No | | Non-operating Expenses | 26,198,489.55 | -0.63% | Expenses not directly related to daily production and operations | No | [Analysis of Assets and Liabilities](index=14&type=section&id=%E5%85%AD%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets attributable to shareholders decreased significantly, while shifts in liabilities indicate increased liquidity pressure Significant Changes in Asset Composition | Item | End of Period Amount (Yuan) | % of Total Assets | Prior Year-End Amount (Yuan) | % of Total Assets | Change in % | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 953,661,496.60 | 1.74% | 5,909,879,812.18 | 9.31% | -7.57% | Decrease in security deposits at period-end | | Accounts Receivable | 930,731,502.52 | 1.70% | 1,384,290,313.70 | 2.18% | -0.48% | Decrease in amounts due from customers | | Long-term Equity Investments | 3,621,265,404.11 | 6.62% | 3,971,035,411.54 | 6.25% | 0.37% | Decrease in investment income from associates | | Other Non-current Financial Assets | 344,266,989.06 | 0.63% | 751,030,454.68 | 1.18% | -0.55% | Consolidation of Weifang Chenchuang Equity Investment Fund | | Notes Payable | 107,370,000.00 | 0.20% | 1,423,918,112.99 | 2.24% | -2.04% | Reclassification of overdue notes to accounts payable and short-term borrowings | | Accounts Payable | 8,426,902,071.31 | 15.41% | 7,708,967,406.47 | 12.14% | 3.27% | Reclassification of overdue commercial bills to accounts payable | | Other Payables | 3,560,628,293.65 | 6.51% | 2,896,409,953.94 | 4.56% | 1.95% | Increase in payables to related parties and accrued expenses | | Non-current Liabilities Due within One Year | 2,534,511,114.58 | 4.63% | 1,577,936,964.14 | 2.48% | 2.15% | Increase in reclassified long-term liabilities due within one year | | Other Current Liabilities | 844,340,067.04 | 1.54% | 2,680,562,600.58 | 4.22% | -2.68% | Reclassification of extended equipment finance leases to long-term payables | | Long-term Payables | 2,544,988,247.10 | 4.65% | 774,965,008.29 | 1.22% | 3.43% | Reclassification of extended equipment finance leases to long-term payables | Restricted Assets as of Period-End | Item | Book Value at Period-End (Yuan) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | | Fixed Assets | 19,712,891,634.14 | Mortgage | Collateral for bank loans and long-term payables | | Investment Property | 5,195,027,744.73 | Mortgage | Collateral for bank loans | | Intangible Assets | 1,328,582,983.12 | Mortgage | Collateral for bank loans and long-term payables | | Long-term Equity Investments | 1,649,407,876.62 | Frozen | Frozen due to lawsuits over outstanding payments | | Cash and Cash Equivalents | 875,404,665.38 | Pledge, Frozen | Pledged as deposits for bills, letters of credit, loans, or frozen due to lawsuits | | Inventories | 14,865,436.95 | Court Seizure | Seized due to lawsuits over outstanding payments | | Total | 28,776,180,340.94 | | | [Investment Analysis](index=15&type=section&id=%E4%B8%83%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Investment amount increased by 3,490.27%, driven by major equity investments in an investment fund and two subsidiaries Investment Amount During the Reporting Period | Investment Amount in Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change | | :--- | :--- | :--- | | 646,248,442.80 | 18,000,000.00 | 3,490.27% | Major Equity Investments During the Reporting Period | Investee Company Name | Investment Method | Investment Amount (Yuan) | Shareholding Ratio | Funding Source | Investment Type | Profit/Loss this Period (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Weifang Chenchuang Equity Investment Fund Partnership (LP) | Acquisition | 512,000,000.00 | 99.67% | Own funds | Investment | 626.63 | | Shandong Chenming Paper Sales Co, Ltd | Capital Increase | 98,500,000.00 | 100.00% | Own funds | Trading | -30,348,394.39 | | Shouguang Chenming Art Paper Co, Ltd | Acquisition | 35,748,442.80 | 100.00% | Own funds | Manufacturing | 66,979,940.94 | | Total | -- | 646,248,442.80 | -- | -- | -- | 97,327,708.70 | - The company had no derivative investments during the reporting period[57](index=57&type=chunk) [Disposal of Material Assets and Equity](index=17&type=section&id=%E5%85%AB%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company sold 22 properties for 85.92 million yuan to optimize its asset structure and focus on its main business Disposal of Material Assets | Counterparty | Asset Sold | Date of Sale | Transaction Price (million yuan) | Impact on the Company | Contribution to Net Profit (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Aikesheng Real Estate Co, Ltd | 22 units in Fado Apartment | June 2025 | 85.92 | Aided in resource integration, asset structure optimization, and focusing on core business | 1.56% | - The company had no material equity disposals during the reporting period[60](index=60&type=chunk) [Analysis of Major Subsidiaries and Investees](index=17&type=section&id=%E4%B9%9D%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Key subsidiaries Zhanjiang Chenming and Shouguang Meilun both reported net losses, while the company's consolidation scope changed through acquisition and disposal Major Subsidiaries and Investees with >10% Impact on Net Profit | Company Name | Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhanjiang Chenming Pulp & Paper Co, Ltd | Subsidiary | Production and sales of offset paper, copy paper, white cardboard | 6,913,572,423.00 | 17,837,776,517.63 | 6,881,696,853.57 | 143,191,538.56 | -956,012,412.30 | -844,270,649.67 | | Shouguang Meilun Paper Co, Ltd | Subsidiary | Production and sales of coated paper, cultural paper, tissue paper, chemical pulp | 4,801,045,519.00 | 13,489,027,547.87 | 7,053,307,921.36 | 805,084,480.98 | -836,167,663.19 | -677,427,573.67 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition/Disposal | Impact on Overall Production and Performance | | :--- | :--- | :--- | | Chenming International Trade Co, Ltd | Newly established | None | | Shouguang Weiyuan Logistics Co, Ltd | Disposal | Increased net profit by 0.1664 million yuan | | Weifang Chenchuang Equity Investment Fund Partnership (LP) | Acquisition | Increased net profit by 0.0006 million yuan | [Risks and Countermeasures](index=18&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from economic policies, competition, and liquidity, which it addresses through structural optimization, cost control, and debt restructuring - The company faces risks including **macroeconomic policy changes, environmental regulations, raw material price volatility, market competition, liquidity constraints, and financial leasing business risks**[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - To mitigate macroeconomic risks, the company will focus on its core pulp and paper business, adhere to an innovation-driven strategy, and optimize its industrial structure and regional layout[63](index=63&type=chunk) - To address liquidity risks, the company is **actively disposing of non-core assets**, intensifying debt collection, communicating with financial institutions to restructure debt, and seeking extensions and interest rate reductions[66](index=66&type=chunk) [Development and Implementation of Market Value Management System and Valuation Enhancement Plan](index=19&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has established a market value management system and a valuation enhancement plan to improve its investment value and shareholder returns - The company has formulated the "Shandong Chenming Paper Holdings Limited Market Value Management System" in accordance with relevant laws and regulations, approved by the Board of Directors on March 31, 2025[68](index=68&type=chunk) - The company's "Valuation Enhancement Plan," approved on March 31, 2025, includes measures for **financial optimization, business optimization, market and brand building, and strategic investment and cooperation**[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) There were no changes to the company's directors, supervisors, or senior management during the reporting period - There were no changes to the company's directors, supervisors, and senior management during the reporting period; for details, please refer to the 2024 annual report[74](index=74&type=chunk) [Profit Distribution and Capitalization of Capital Reserve for the Reporting Period](index=21&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company does not plan to distribute profits or capitalize capital reserves for the semi-annual period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[75](index=75&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=21&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%00%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company completed the buy-back and cancellation for its 2020 A-share restricted stock incentive plan, though some shares remain outstanding due to judicial freezes - The company's 2020 A-share restricted stock incentive plan involved **111 participants** and granted **79.60 million A-share restricted stocks** at a price of 2.85 yuan per share[78](index=78&type=chunk) - In November 2024, the company paid the buy-back consideration for the unvested restricted stocks of the third vesting period and proceeded with the share buy-back and cancellation procedures[93](index=93&type=chunk) - As of the end of this reporting period, **6,900,000 A-share restricted stocks** held by 2 departed incentive participants have not been cancelled due to judicial freezes[93](index=93&type=chunk) [Environmental Information Disclosure](index=24&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and seven of its major subsidiaries are listed for mandatory environmental information disclosure and have published their reports accordingly - The listed company and its major subsidiaries are included in the list of enterprises for mandatory environmental information disclosure: Yes[94](index=94&type=chunk) Enterprises Listed for Mandatory Environmental Information Disclosure | No | Enterprise Name | Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Shandong Chenming Paper Holdings Limited | Enterprise Environmental Information Disclosure System (Shandong) | | 2 | Shouguang Meilun Paper Co, Ltd | Enterprise Environmental Information Disclosure System (Shandong) | | 3 | Shouguang Chenming Art Paper Co, Ltd | Enterprise Environmental Information Disclosure System (Shandong) | | 4 | Zhanjiang Chenming Pulp & Paper Co, Ltd | Enterprise Environmental Information Disclosure System (Guangdong) | | 5 | Huanggang Chenming Pulp & Paper Co, Ltd | Enterprise Environmental Information Disclosure System (Hubei) | | 6 | Jiangxi Chenming Paper Co, Ltd | Enterprise Environmental Information Disclosure System (Jiangxi) | | 7 | Jilin Chenming Paper Co, Ltd | Enterprise Environmental Information Disclosure System (Jilin) | [Social Responsibility](index=24&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company fulfills its social responsibilities by optimizing corporate governance, protecting stakeholder interests, and adhering to green development principles - The company continuously optimizes its corporate governance structure, strengthens its internal control system, and strictly implements insider information management to ensure truthful, accurate, and timely information disclosure[96](index=96&type=chunk) - The company strictly complies with labor laws, upholds a people-centric employment philosophy, and focuses on employee well-being and development[96](index=96&type=chunk) - The company practices the philosophy that "lucid waters and lush mountains are invaluable assets" and is committed to a high-quality development path that is eco-friendly and low-carbon[97](index=97&type=chunk) [Disclosures under the Hong Kong Stock Exchange Listing Rules](index=25&type=section&id=%E5%85%AD%E3%80%81%E6%A0%B9%E6%8D%AE%E9%A6%99%E6%B8%AF%E8%81%94%E5%90%88%E4%BA%A4%E6%98%93%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E5%85%AC%E5%B8%83%E7%9A%84%E9%A6%99%E6%B8%AF%E4%B8%8A%E5%B8%82%E8%A7%84%E5%88%99%E6%8A%AB%E9%9C%B2) The company complied with the Corporate Governance Code, with the exception of a delayed board re-election due to pending work on governance updates - The company complied with the principles and code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules, except that the term of the tenth Board of Directors and Supervisory Committee, which expired on June 15, 2025, has been extended as the re-election process is not yet complete[98](index=98&type=chunk) - The company's directors have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the HKEX Listing Rules, and the company is not aware of any non-compliance by its directors during the reporting period[99](index=99&type=chunk) Significant Events [Commitments](index=27&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) There were no commitments from the company's controlling shareholders or other related parties that were fulfilled or overdue during the reporting period - The company reports no fulfilled or overdue commitments from its de facto controller, shareholders, related parties, acquirers, or the company itself during the reporting period[101](index=101&type=chunk) [Non-operating Fund Occupation](index=27&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating occupation of the company's funds by its controlling shareholder or other related parties - The company reports no non-operating occupation of its funds by the controlling shareholder or other related parties during the reporting period[102](index=102&type=chunk) [Irregular External Guarantees](index=27&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[103](index=103&type=chunk) [Appointment and Dismissal of Accounting Firm](index=27&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[104](index=104&type=chunk) [Board's Explanation on Prior Year's "Non-standard Audit Report"](index=27&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The Board is actively addressing the issues raised in the 2024 qualified audit opinion by resuming production, securing loans, and restructuring debt - Grant Thornton China issued a qualified audit opinion on the company's 2024 financial report, for which the Board of Directors has provided a special explanation[105](index=105&type=chunk) - The company is actively working to **resume production, secure syndicated loan disbursements, restructure debt, attract strategic investors, and dispose of assets** to improve its going concern ability[106](index=106&type=chunk) - As of the period-end, production lines at the Huanggang, Jiangxi, and Shouguang bases are operational, and a **2.31 billion yuan syndicated loan** for resuming production has been approved[106](index=106&type=chunk) [Bankruptcy and Reorganization Matters](index=28&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not undergo any bankruptcy or reorganization proceedings during the reporting period - The company did not undergo any bankruptcy or reorganization proceedings during the reporting period[108](index=108&type=chunk) [Litigation Matters](index=28&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company is involved in several major lawsuits, with a winding-up petition having been dismissed and total pending cases against the company amounting to 4.98 billion yuan - On June 20, 2025, the company received an order from the High Court of Hong Kong dismissing the petitioner's summons and the winding-up petition[109](index=109&type=chunk) Overview of Other Litigation Matters | Litigation (Arbitration) Status | Amount Involved (million yuan) | Provision for Liabilities | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | | Cases with Chenming Leasing as Plaintiff | 464.33 | No | Judgments have favored the company, ordering defendants to repay debts; no material impact on operations is expected | | Cases with the Company and its Subsidiaries as Plaintiffs | 434.06 | No | No material impact on the company's operations and financial condition | | Cases with the Company and its Subsidiaries as Defendants | 7,778.18 | Yes | Cases are being resolved through negotiation, active defense, and settlement with creditors | | Provision for Liabilities | 5.935 | | | [Penalties and Rectifications](index=29&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company was not subject to any penalties or rectification orders during the reporting period - The company was not subject to any penalties or rectification orders during the reporting period[110](index=110&type=chunk) [Integrity Status of the Company and its Controlling Shareholders](index=29&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company and its subsidiary Zhanjiang Chenming were listed as discredited judgment debtors for two cases, while the controlling shareholder was not - According to the China Enforcement Information Online portal, the company and its subsidiary Zhanjiang Chenming were listed as discredited judgment debtors in **2 cases** for failing to comply with court orders; the company's controlling shareholder and de facto controller are not listed as discredited judgment debtors[111](index=111&type=chunk) [Material Related-Party Transactions](index=29&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in routine service procurement with related parties and maintained non-operating debt balances with its associates and controlling shareholder Related-Party Transactions for Goods and Services | Related Party | Transaction Content | Amount this Period (Yuan) | Approved Transaction Limit (million yuan) | | :--- | :--- | :--- | :--- | | Weifang Port Wood Chip Terminal Co, Ltd | Port charges | 2,333,303.83 | 110.00 | Receivables from Related Parties | Related Party | Relationship | Balance at Period-End (million yuan) | | :--- | :--- | :--- | | Shouguang Meite Environmental Protection Technology Co, Ltd | Joint Venture | 11.38 | | Weifang Port Wood Chip Terminal Co, Ltd | Joint Venture | 81.30 | | Wuhan Chenming Hanyang Paper Co, Ltd | Associate | 177.97 | | Total | | 270.65 | Payables to Related Parties | Related Party | Relationship | Balance at Period-End (million yuan) | | :--- | :--- | :--- | | Chenming Holdings Limited | Controlling Shareholder | 36.84 | | Guangdong Nanyue Bank Co, Ltd | Associate | 758.29 | | Total | | 795.13 | [Material Contracts and Their Performance](index=30&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company has an ongoing business outsourcing contract, generated leasing income, and provided significant guarantees for its subsidiaries totaling 19.75 billion yuan - Subsidiary Jiangxi Chenming has outsourced the operations of Jiangxi Port to Jiangxi Yirong Investment Co, Ltd for a fixed annual fee of 4 million yuan[121](index=121&type=chunk) - The company's total outstanding guarantees for its subsidiaries amounted to **19.75 billion yuan** as of June 30, 2025, representing **371.42% of the parent company's shareholders' equity**, with overdue guarantees totaling 1.98 billion yuan[127](index=127&type=chunk) Short-term or Low-value Asset Lease Expenses | Item | H1 2025 (Yuan) | | :--- | :--- | | Low-value Leases | 2,220,927.78 | | Total | 2,220,927.78 | Operating Lease Income as Lessor | Item | H1 2025 (Yuan) | | :--- | :--- | | Lease Income | 60,638,854.58 | [Other Significant Events](index=35&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company faces operational challenges including overdue debts, frozen bank accounts, and production halts, while its board re-election has been postponed - As of the period-end, the company had **cumulative overdue debts of 3.82 billion yuan**, **332 frozen bank accounts** with a total frozen amount of 39.38 million yuan, and some production lines remain under maintenance[135](index=135&type=chunk) - The re-election of the company's tenth Board of Directors and Supervisory Committee has been postponed to ensure operational continuity while the company revises its Articles of Association and related internal systems[137](index=137&type=chunk) [Significant Events of Subsidiaries](index=37&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company received approval to dissolve its finance subsidiary and terminated the construction of the Huanggang Chenming Phase II project to preserve liquidity - On February 12, 2025, Shandong Chenming Group Finance Co, Ltd received approval from the National Financial Regulatory Administration for its dissolution[141](index=141&type=chunk) - The company terminated the construction of the Huanggang Chenming Phase II project to avoid further capital expenditure that could impact liquidity, thereby protecting the interests of the company and its shareholders[142](index=142&type=chunk) Changes in Share Capital and Shareholders [Changes in Share Capital](index=38&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The number of restricted shares decreased while unrestricted shares increased due to the annual recalculation of transferable shares for senior management - The change in restricted shares was primarily due to the annual recalculation of the transferable quota for directors, supervisors, and senior management, and the release of locked-up shares for some executives who had been departed for over 6 months[145](index=145&type=chunk) Changes in Restricted Shares | Item | Pre-Change Quantity (Shares) | Ratio | Change (+, -) (Shares) | Post-Change Quantity (Shares) | Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 30,941,154 | 1.05% | -5,562,842 | 25,378,312 | 0.86% | | II. Unrestricted Shares | 2,910,515,046 | 98.95% | 5,562,842 | 2,916,077,888 | 99.14% | | III. Total Shares | 2,941,456,200 | 100.00% | 0 | 2,941,456,200 | 100.00% | [Number of Shareholders and Shareholdings](index=39&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) The company had 117,668 ordinary shareholders at the period-end, with Chenming Holdings Limited as the largest shareholder holding 15.50% - At the end of the reporting period, the total number of ordinary shareholders was **117,668** (99,783 A-shareholders, 17,568 B-shareholders, and 317 H-shareholders)[148](index=148&type=chunk) - The foreign legal entity shareholder Chenming Holdings (Hong Kong) Limited is a wholly-owned subsidiary of the state-owned legal entity shareholder Chenming Holdings Limited[149](index=149&type=chunk) Shareholdings of Shareholders with >5% or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End | Pledged, Marked, or Frozen Status (Status/Quantity) | | :--- | :--- | :--- | :--- | :--- | | Chenming Holdings Limited | State-owned legal entity | 15.50% | 455,781,319 | Pledged: 386,811,546; Frozen: 409,956,441 | | HKSCC NOMINEES LIMITED | Foreign legal entity | 12.69% | 373,409,775 | N/A: 0 | | Chenming Holdings (Hong Kong) Limited | Foreign legal entity | 12.38% | 364,131,563 | N/A: 0 | | Jin Xing | Domestic individual | 1.27% | 37,385,427 | N/A: 0 | | Chen Hongguo | Domestic individual | 0.65% | 19,080,044 | Frozen: 19,080,044 | [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=41&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period; for details, please refer to the 2024 annual report[152](index=152&type=chunk) [Changes in Controlling Shareholder or De Facto Controller](index=41&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes to the company's controlling shareholder or de facto controller during the reporting period - The company's controlling shareholder did not change during the reporting period[153](index=153&type=chunk) - The company's de facto controller did not change during the reporting period[153](index=153&type=chunk) [Interests of Directors, Supervisors, and Chief Executive in Securities under HKEX Listing Rules](index=41&type=section&id=%E4%B8%83%E3%80%81%E6%8C%89%E9%A6%99%E6%B8%AF%E8%81%94%E4%BA%A4%E6%89%80%E4%B8%8A%E5%B8%82%E8%A7%84%E5%88%99%E6%8A%AB%E9%9C%B2%E7%9A%84%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E4%B9%8B%E8%AF%81%E5%88%B8%E6%9D%83%E7%9B%8A) As of June 30, 2025, several directors and supervisors held A-shares in the company, with no other declarable interests or short positions A-Shares Held by Directors, Supervisors, and Chief Executive | Name | Position | Shares Held at Period-End (A-shares) | % of Total Share Capital | | :--- | :--- | :--- | :--- | | Hu Changqing | Chairman | 792,857 | 0.03% | | Li Xingchun | Executive Director & Vice Chairman | 2,000,000 | 0.07% | | Li Weixian | Executive Director & General Manager | 362,100 | 0.01% | | Li Feng | Executive Director & Deputy General Manager | 1,356,027 | 0.05% | | Li Kang | Chairman of the Supervisory Committee | 149,300 | 0.01% | - Other than as disclosed above, as of June 30, 2025, none of the directors, supervisors, or chief executive had any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations that were required to be recorded in the register kept under Section 352 of the SFO[156](index=156&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares under HKEX Listing Rules](index=42&type=section&id=%E5%85%AB%E3%80%81%E6%8C%89%E9%A6%99%E6%B8%AF%E8%81%94%E4%BA%A4%E6%89%80%E4%B8%8A%E5%B8%82%E8%A7%84%E5%88%99%E6%8A%AB%E9%9C%B2%E7%9A%84%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E4%BA%8E%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E5%85%B3%E8%82%A1%E4%BB%BD%E4%B8%AD%E4%B9%8B%E6%9D%83%E7%9B%8A%E5%8F%8A%E6%B7%A1%E4%BB%93) As of June 30, 2025, Chenming Holdings and its Hong Kong subsidiary were the principal shareholders with declarable interests under the SFO Interests and Short Positions of Substantial Shareholders | Name | Number of Shares Held | Approx. % of Shareholding (Total/Class) | | :--- | :--- | :--- | | Chenming Holdings Limited | 455,781,319 A-shares (L) | 15.50 / 26.70 | | Chenming Holdings (Hong Kong) Limited | 210,717,563 B-shares (L) | 7.16 / 29.83 | | Chenming Holdings (Hong Kong) Limited | 153,414,000 H-shares (L) | 5.22 / 29.04 | - Other than as disclosed above, as of June 30, 2025, no other person had an interest or short position in the shares and underlying shares of the company recorded in the register required to be kept under Section 336 of the SFO[157](index=157&type=chunk) Bond-related Matters [Bond-related Matters](index=43&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters to report for the period - The company had no bond-related matters to report for the period[159](index=159&type=chunk) Financial Report [Audit Report](index=44&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[161](index=161&type=chunk) [Financial Statements](index=44&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 consolidated and parent company financial statements for the semi-annual period ending June 30, 2025 - This section includes the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Equity, and Parent Company Statement of Changes in Equity[162](index=162&type=chunk)[165](index=165&type=chunk)[169](index=169&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk)[175](index=175&type=chunk)[178](index=178&type=chunk)[184](index=184&type=chunk) [Company's Basic Information](index=53&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Shandong Chenming Paper is a joint-stock company established in 1993, with shares listed on multiple exchanges and a diverse business portfolio - Shandong Chenming Paper Holdings Limited was established as a joint-stock company in 1993 through the restructuring of the former Shouguang County General Paper Mill[190](index=190&type=chunk) - As of June 30, 2025, the company's total share capital was **2,934.56 million shares**[191](index=191&type=chunk) - The company's main businesses include the production and sale of machine-made paper, power and heat generation, forestry, hotel services, and financial leasing[191](index=191&type=chunk) [Basis of Preparation of Financial Statements](index=54&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 financial statements are prepared in accordance with China's Accounting Standards for Business Enterprises and on a going concern basis - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and related guidelines issued by the Ministry of Finance[193](index=193&type=chunk) - The financial statements are presented on a **going concern basis**[193](index=193&type=chunk) - The company has no events or conditions that cast significant doubt on its ability to continue as a going concern for the next 12 months from the reporting date[194](index=194&type=chunk) [Significant Accounting Policies and Estimates](index=54&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 for key areas such as financial instruments, revenue recognition, and asset valuation - The financial statements comply with the requirements of the Accounting Standards for Business Enterprises, providing a true and complete view of the company's financial position and performance[197](index=197&type=chunk) - Financial assets are classified into three categories at initial recognition: **amortized cost, fair value through other comprehensive income, and fair value through profit or loss**[213](index=213&type=chunk) - The company accounts for impairment and recognizes loss provisions for financial instruments such as notes receivable, accounts receivable, and other receivables based on an **expected credit loss model**[218](index=218&type=chunk) - Revenue is recognized when control of goods or services is transferred to the customer, primarily from the sale of goods, provision of hotel and property services, and financial leasing services[262](index=262&type=chunk)[263](index=263&type=chunk) [Taxes](index=76&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company is subject to various taxes, including VAT and corporate income tax, with several subsidiaries enjoying preferential tax rates Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable value-added amount | 13%/9%/6% | | Property Tax | Based on rent or value | 1.2%/12% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 25% | - The company and several of its subsidiaries, including Shouguang Meilun and Zhanjiang Chenming, are qualified as high-tech enterprises and enjoy a **preferential corporate income tax rate of 15%**[294](index=294&type=chunk)[295](index=295&type=chunk) - The company's forestry subsidiaries are exempt from corporate income tax in accordance with relevant tax laws[295](index=295&type=chunk) [Notes to Consolidated Financial Statements](index=77&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 breakdowns and explanations for items in the consolidated financial statements, including assets, liabilities, and income statement components - The closing balance of **cash and cash equivalents was 953.66 million yuan**, down from 5.91 billion yuan at the beginning of the period, with a significant portion restricted as deposits or frozen due to litigation[298](index=298&type=chunk)[299](index=299&type=chunk) - The closing balance of **accounts receivable was 930.73 million yuan**, down from 1.38 billion yuan, with a bad debt provision of 69.71 million yuan recognized during the period[308](index=308&type=chunk)[317](index=317&type=chunk) - **Operating revenue for the period was 2.11 billion yuan**, a sharp decrease from 13.88 billion yuan in the prior year period[488](index=488&type=chunk) - **Net profit attributable to parent company shareholders was -3.86 billion yuan**, a significant turnaround from a profit of 28.65 million yuan in the prior year period[170](index=170&type=chunk) [R&D Expenses](index=118&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) R&D expenditure for the period was 36.57 million yuan, a 94.02% decrease year-on-year, with all expenses being charged to profit or loss Breakdown of R&D Expenses | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Depreciation | 14,930,274.98 | 36,311,580.22 | | Salaries and Surcharges | 10,026,470.26 | 63,586,172.66 | | Material Consumption | 6,530,356.81 | 414,455,113.32 | | Insurance | 2,282,295.78 | 13,601,674.17 | | Water, Steam, and Electricity | 1,770,284.72 | 76,607,858.27 | | Welfare | 469,909.54 | 3,372,176.58 | | Housing Provident Fund | 350,817.26 | 2,265,763.36 | | Other Expenses | 206,776.34 | 1,713,757.83 | | Total | 36,567,185.69 | 611,914,096.41 | | Of which: Expensed R&D | 36,567,185.69 | 611,914,096.41 | [Changes in the Scope of Consolidation](index=119&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The scope of consolidation changed with the disposal of one subsidiary and the establishment and acquisition of two new entities Disposal of Subsidiaries | Subsidiary Name | Disposal Price at Loss of Control (Yuan) | Disposal Ratio at Loss of Control | Disposal Method | Date of Loss of Control | | :--- | :--- | :--- | :--- | :--- | | Shouguang Weiyuan Logistics Co, Ltd | 650,000.00 | 100.00% | Transfer | 2025-4-30 | - During the year, one new subsidiary, Chenming International Trade Co, Ltd, was established, and one subsidiary, Weifang Chenchuang Equity Investment Fund Partnership (LP), was acquired[555](index=555&type=chunk) [Interests in Other Entities](index=119&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company has interests in 77 subsidiaries, including two significant non-wholly-owned subsidiaries that both incurred losses, as well as several joint ventures and associates - In 2025, the company's consolidated scope included a total of **77 subsidiaries**[192](index=192&type=chunk) - The company holds a 4.46% stake in Guangdong Nanyue Bank Co, Ltd, but as the second-largest shareholder with one board seat, it can exert significant influence[568](index=568&type=chunk) Significant Non-wholly-owned Subsidiaries | Subsidiary Name | Minority Interest Ratio | Profit/Loss Attributable to Minority Interests (Yuan) | Minority Interest Balance at Period-End (Yuan) | | :--- | :--- | :--- | :--- | | Shouguang Meilun Paper Co, Ltd | 13.22% | -142,204,918.84 | 560,742,910.47 | | Zhanjiang Chenming Pulp & Paper Co, Ltd | 19.72% | -166,516,344.51 | 1,237,916,095.04 | [Government Grants](index=125&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company recognized 52.56 million yuan in government grants in the current period, primarily related to environmental protection and infrastructure projects Liability Items Related to Government Grants | Liability Item | Opening Balance (Yuan) | Amount Recognized in Other Income (Yuan) | Closing Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Environmental Protection Fund Grants | 478,415,952.52 | 25,464,041.36 | 452,951,911.16 | Asset-related | | Huanggang Pulp-Paper Integration Project | 420,942,087.45 | 12,513,108.90 | 408,428,978.55 | Asset-related | | Infrastructure and Environmental Projects | 185,285,787.80 | 5,758,794.74 | 179,526,993.06 | Asset-related | | Technical Upgrade Project Grants | 89,417,910.72 | 4,666,552.48 | 84,751,358.24 | Asset-related | | Zhanjiang Pulp-Paper Integration Project | 38,522,698.43 | 2,047,316.46 | 36,475,381.97 | Asset-related | | National Science and Technology Support Program | 629,025.00 | 82,350.00 | 546,675.00 | Asset-related | | Other | 27,726,023.60 | 843,605.04 | 26,882,418.56 | Asset-related | | Total | 1,240,939,485.52 | 51,375,768.98 | 1,189,563,716.54 | | Government Grants Recognized in Current Profit or Loss | Item | Account | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | :--- | | Environmental Protection Fund Grants | Other Income | 25,474,041.36 | 25,239,041.36 | | Huanggang Pulp-Paper Integration Project | Other Income | 12,513,108.90 | 12,513,108.90 | | Infrastructure and Environmental Projects | Other Income | 5,758,794.74 | 5,758,794.72 | | Technical Upgrade Project Grants | Other Income | 4,700,763.02 | 11,626,552.48 | | Zhanjiang Pulp-Paper Integration Project | Other Income | 2,113,105.92 | 2,047,316.46 | | Enterprise Reform and Development Grants | Other Income | 218,000.00 | | | Government Rewards | Other Income | 130,000.00 | 1,910,920.00 | | National Science and Technology Support Program | Other Income | 82,350.00 | 82,350.00 | | Tax Rebates | Other Income | 20,000.00 | 30,124.00 | | Employment Stability Subsidies | Other Income | 2,000.00 | 1,227,050.37 | | Afforestation Subsidies | Other Income | 39,730.53 | 491,960.00 | | Social Security Subsidies | Other Income | | 46,500.00 | | Other | Other Income | 1,504,445.92 | 3,327,666.75 | | Total | | 52,556,340.39 | 64,301,385.04 | [Risks Related to Financial Instruments](index=126&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company manages its exposure to credit, liquidity, and market risks through diversified investment, credit assessment, and cash flow monitoring - The company's main financial risks are **credit risk, liquidity risk, and market risk** (including currency, interest rate, and commodity price risks)[579](index=579&type=chunk) - The company manages credit risk by portfolio classification, with primary exposure arising from bank deposits, notes receivable, accounts receivable, and other receivables[581](index=581&type=chunk) - As of June 30, 2025, the company's **financial assets due within one year were 12.19 billion yuan**, while its **financial liabilities due within one year were 38.62 billion yuan**, indicating a liquidity gap[583](index=583&type=chunk) - Although major operations are settled in RMB, the company is exposed to foreign exchange risk from its foreign currency-denominated assets, liabilities, and future transactions (mainly in USD, EUR, HKD, and JPY)[588](index=588&type=chunk) [Disclosure of Fair Value](index=131&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company's assets measured at fair value include financial assets and biological assets, utilizing both Level 1 and Level 3 inputs for valuation Fair Value of Assets and Liabilities at Period-End | Item | Level 1 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 36,692,409.73 | | 36,692,409.73 | | (II) Receivables Financing | | 92,166,113.62 | 92,166,113.62 | | (III) Other Non-current Financial Assets | | 344,266,989.06 | 344,266,989.06 | | (IV) Biological Assets | | 1,098,778,602.31 | 1,098,778,602.31 | | Total Assets at Fair Value | 36,692,409.73 | 1,535,211,704.99 | 1,571,904,114.72 | - For trading financial assets in active markets, the company determines their fair value based on quoted market prices[600](index=600&type=chunk) Valuation Techniques and Key Parameters for Level 3 Fair Value | Item | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | | :--- | :--- | :--- | :--- | | Forest Assets | Market Price Back-Calculation | Price per ton of Eucalyptus | 500 Yuan | | | | Price per ton of Loblolly Pine | 520 Yuan | | | | Price per ton of Cunninghamia | 500 Yuan | [Related Parties and Transactions](index=132&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's ultimate controlling party is the Shouguang State-owned Assets Supervision and Administration Bureau, and it engages in various transactions with its related parties - The ultimate controlling party of the enterprise is the **Shouguang State-owned Assets Supervision and Administration Bureau**[605](index=605&type=chunk) - Related parties with transactions or outstanding balances during the period include joint ventures and associates such as Weifang Port Wood Chip Terminal Co, Ltd and Guangdong Nanyue Bank Co, Ltd[607](index=607&type=chunk) - The company engages in transactions with related parties, including the **purchase and sale of goods, provision of services, leasing, guarantees, and debt financing**[610](index=610&type=chunk)[612](index=612&type=chunk)[614](index=614&type=chunk)[624](index=624&type=chunk)[625](index=625&type=chunk) [Commitments and Contingencies](index=140&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company has capital commitments of 294.24 million yuan for long-term asset construction and faces contingent liabilities from pending litigation totaling 3.10 billion yuan Capital Commitments | Contracted but not yet recognized capital commitments | Balance at Period-End (Yuan) | | :--- | :--- | | Commitments for construction of long-term assets | 294,241,260.20 | Contingent Liabilities from Pending Litigation and Arbitration | Plaintiff | Defendant | Cause of Action | Amount at Stake (Yuan) | Case Status | | :--- | :--- | :--- | :--- | :--- | | Guangdong Nanyue Bank | Zhanjiang Chenming, Shandong Chenming Paper | Failure to repay loan | 452,700,000.00 | First-instance judgment rendered, on second-instance appeal | | Guodu Venture Capital | Shandong Chenming Paper | Non-payment of equity transfer consideration | 63,706,000.00 | Awaiting first-instance judgment | | Beijing Chuanfa Investment | Shandong Chenming Paper, Zhanjiang Chenming | Refusal to pay for share repurchase | 405,134,700.00 | In first-instance trial | | Bank of Communications | Zhanjiang Chenming, Shandong Chenming Paper | Failure to repay loan | 394,529,036.28 | In first-instance trial | | China Minsheng Bank | Shandong Chenming Paper Sales, Shandong Chenming Paper | Non-payment of letter of credit advances | 200,005,000.00 | First-instance judgment rendered, on second-instance appeal | | Guangdong Nanyue Bank | Chongmin Culture, Shanxi

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) [Important Notes](index=2&type=section&id=Important%20Notes) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, assuming legal responsibility[4](index=4&type=chunk) - Company head Wang Jiufang, chief accountant Yu Jie, and head of accounting department Zheng Shulin declare the financial report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report's clear table of contents lists nine main chapters, covering important notes, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial report, and other submitted data, providing comprehensive information navigation for investors - The report's table of contents includes nine main chapters, from important notes to the financial report, with a clear structure[7](index=7&type=chunk) [Definitions](index=4&type=section&id=Definitions) This section defines key terms used in the report, including the CSRC, SZSE, Ningbo Securities Regulatory Bureau, company name, Rong'an Group, reporting period, and the currency unit "yuan," ensuring accurate understanding of the report's content Major Definitions | Term | Definition | | :--- | :--- | | China Securities Regulatory Commission, CSRC | China Securities Regulatory Commission | | Shenzhen Stock Exchange, SZSE | Shenzhen Stock Exchange | | Rong'an Real Estate, Company, the Company | Rong'an Real Estate Co., Ltd. | | Reporting Period | January 1, 2025 to June 30, 2025 | [Company Profile and Key Financial Indicators](index=5&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile](index=5&type=section&id=Company%20Profile) Rong'an Real Estate Co., Ltd., with stock abbreviation "Rong'an Real Estate" and stock code 000517, is listed on the Shenzhen Stock Exchange, and its legal representative is Wang Jiufang Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Rong'an Real Estate | | Stock Code | 000517 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 荣安地产股份有限公司 | | Legal Representative | Wang Jiufang | [Contact Person and Contact Information](index=5&type=section&id=Contact%20Person%20and%20Contact%20Information) The company's board secretary is Deng Huatang and the securities affairs representative is Zheng Sisi, both located at 18F (A), Rong'an Building, No. 700 Tiantong South Road, Yinzhou District, Ningbo City, Zhejiang Province, with identical phone and fax numbers, and provided email addresses Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | Deng Huatang | 0574-87312566 | denghuatang@000517.com | | Securities Affairs Representative | Zheng Sisi | 0574-87312566 | zhengsisi@000517.com | [Other Information](index=5&type=section&id=Other%20Information) During the reporting period, there were no changes in the company's registered address, office address, website, email, or information disclosure and archiving locations, with specific details available in the 2024 annual report - The company's contact information, information disclosure, and archiving locations remained unchanged during the reporting period, consistent with the 2024 annual report[13](index=13&type=chunk)[14](index=14&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue and net profit attributable to shareholders of the listed company significantly decreased year-on-year by **71.95%** and **92.14%**, respectively, with net cash flow from operating activities also declining by **30.83%**, total assets decreasing by **24.17%**, but net assets attributable to shareholders slightly increasing by **0.63%** Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (yuan) | Prior Year Same Period (yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,895,014,587.17 | 13,884,161,304.65 | -71.95% | | Net Profit Attributable to Shareholders of the Listed Company | 36,450,786.55 | 464,033,165.86 | -92.14% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 12,009,582.34 | 486,353,459.09 | -97.53% | | Net Cash Flow from Operating Activities | 560,583,084.05 | 810,411,928.87 | -30.83% | | Basic Earnings Per Share (yuan/share) | 0.0114 | 0.1457 | -92.18% | | Diluted Earnings Per Share (yuan/share) | 0.0114 | 0.1457 | -92.18% | | Weighted Average Return on Net Assets | 0.62% | 5.27% | -4.65% | | **Period-end Indicators** | **Current Reporting Period-end (yuan)** | **Prior Year-end (yuan)** | **Change from Prior Year-end** | | Total Assets | 14,414,301,174.99 | 19,008,979,439.71 | -24.17% | | Net Assets Attributable to Shareholders of the Listed Company | 5,854,624,756.00 | 5,818,173,969.45 | 0.63% | [Differences in Accounting Data Under Domestic and Foreign Accounting Standards](index=6&type=section&id=Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Foreign%20Accounting%20Standards) During the reporting period, the company had no differences in net profit and net assets disclosed in financial reports prepared under International Accounting Standards or foreign accounting standards compared to Chinese Accounting Standards - The company had no differences in net profit and net assets under domestic and foreign accounting standards during the reporting period[17](index=17&type=chunk)[18](index=18&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=6&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **24,441,204.21 yuan**, primarily from government grants, fair value changes in financial assets, and reversal of impairment provisions for receivables, positively impacting net profit Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -218,489.79 | | Government grants recognized in current profit or loss | 5,026,704.43 | | Gains or losses from changes in fair value and disposal of financial assets and liabilities | 13,531,145.02 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 7,081,883.03 | | Other non-operating income and expenses apart from the above | 2,948,699.43 | | Less: Income tax impact | 3,898,415.74 | | Impact on minority interests (after tax) | 30,322.17 | | **Total** | **24,441,204.21** | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified any listed non-recurring gains and losses items as recurring gains and losses[21](index=21&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [Company's Main Business During the Reporting Period](index=8&type=section&id=Company%27s%20Main%20Business%20During%20the%20Reporting%20Period) In H1 2025, real estate policies focused on inventory digestion and new supply optimization, with central bank rate cuts and local measures stabilizing the market, leading to significant land transaction growth, while the company, primarily in real estate development in core Yangtze River Delta cities, reported **3.895 billion yuan** in operating revenue and a **1.50%** net gearing ratio - In the first half of 2025, real estate industry policies continued the theme of "digesting existing inventory and optimizing new supply," with the central bank cutting interest rates and local governments implementing city-specific measures, leading to market stabilization and improvement[23](index=23&type=chunk) - In the first half of the year, the transaction volume of residential land in 65 key cities nationwide increased by **18.4%** year-on-year, with land transfer fees reaching **644.16 billion yuan**, a **45%** year-on-year increase[24](index=24&type=chunk) - The company's main business is real estate development and sales, primarily located in the Yangtze River Delta region, including Ningbo, Hangzhou, and Jiaxing, focusing on mid-to-high-end refined residential properties, supplemented by commercial real estate[26](index=26&type=chunk) - During the reporting period, the company's operating revenue was approximately **3.895 billion yuan**, mainly from the handover of completed projects; the period-end net gearing ratio was **1.50%**[26](index=26&type=chunk) [Macroeconomic Situation and Industry Policies in the Reporting Period](index=8&type=section&id=Macroeconomic%20Situation%20and%20Industry%20Policies%20in%20the%20Reporting%20Period) In H1 2025, real estate policies emphasized inventory digestion and new supply optimization, with central bank rate cuts and local measures stabilizing the market, leading to significant land transaction growth, despite national real estate development investment decreasing by **11.2%** and commercial housing sales area by **3.5%**, with a shortened residential inventory destocking cycle - In the first half of 2025, the Central Political Bureau meeting proposed increasing the supply of high-quality housing and optimizing policies for acquiring existing commercial housing[23](index=23&type=chunk) - On May 7, the central bank adjusted the 5-year LPR and the 5-year first-home provident fund rate to **3.50%** and **2.60%** respectively, both reaching historical lows[23](index=23&type=chunk) H1 2025 Real Estate Market Data | Indicator | Data | Year-on-year Change | | :--- | :--- | :--- | | Transaction volume of residential land in 65 key cities nationwide | - | Increased by 18.4% | | Land transfer fees in 65 key cities nationwide | 644.16 billion yuan | Increased by 45% | | National real estate development investment | 4,665.8 billion yuan | Decreased by 11.2% | | Commercial housing sales area | 458.51 million M² | Decreased by 3.5% | | Commercial housing for sale (as of end of June) | 769.48 million M² | Decreased for four consecutive months month-on-month | | Real estate development prosperity index | 93.60 | Increased by 1.49 percentage points from the beginning of the year | [Company's Main Business and Operating Performance in the Reporting Period](index=8&type=section&id=Company%27s%20Main%20Business%20and%20Operating%20Performance%20in%20the%20Reporting%20Period) The company focuses on real estate development and sales in core Yangtze River Delta cities, developing mid-to-high-end residential and commercial projects, with no new land reserves in the reporting period, **579,400 M²** total salable area (**98.21%** in Zhejiang), all projects delivered, **1.695 billion yuan** financing at **3.46%** average cost, and **298 million yuan** in phased guarantees for purchasers - The company did not acquire land reserves during the reporting period[27](index=27&type=chunk) Company's Salable Resources | Region Name | Total Salable Construction Area (10,000 M²) | Proportion of Salable Resources | | :--- | :--- | :--- | | Within Zhejiang Province | 56.90 | 98.21% | | Outside Zhejiang Province | 1.04 | 1.79% | | **Total** | **57.94** | **100.00%** | - During the reporting period, the company's real estate projects have all been completed and delivered[30](index=30&type=chunk) Company's Financing Situation | Financing Channel | Period-end Financing Balance (10,000 yuan) | Average Financing Cost | | :--- | :--- | :--- | | Bank Loans | 169,487.13 | 3.46% | | **Total** | **169,487.13** | **3.46%** | - As of the end of the reporting period, the company's outstanding phased guarantees for commercial housing purchasers amounted to **298 million yuan**[36](index=36&type=chunk) [Development Strategy and Operating Plan for the Next Year](index=10&type=section&id=Development%20Strategy%20and%20Operating%20Plan%20for%20the%20Next%20Year) The company will pursue a strategy of "strategy-oriented, efficiency from management, risk control, and steady development," focusing on the Yangtze River Delta to strengthen its core real estate business and cultivate new profit drivers, with plans to increase quality land reserves, accelerate inventory destocking, enhance product quality, reduce financial costs, and improve organizational development - Company's development strategy: Deeply cultivate the Yangtze River Delta, refine, specialize, strengthen, and sustain the core real estate business, while also developing related industries such as agency construction and construction engineering, and actively fostering new profit growth points[37](index=37&type=chunk) - 2025 operating plan: Focus on cities like Hangzhou and Ningbo, actively increase quality land reserves, accelerate inventory destocking, strictly control product quality, reduce financial costs, and enhance organizational vitality[37](index=37&type=chunk) - The company will implement full-process standardized operations, including "operational standardization, product standardization, marketing standardization, and construction standardization," and conduct refined cost control[38](index=38&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness stems from its scientific management, experienced development team, flexible land strategy, strong regional brand, and prudent financial management, fostering long-term advantages through standardized operations, rapid development, and low debt levels - The company has established a process management system and performance management system, implementing a project operation model of rapid commencement, sales, and capital recovery to reduce development costs and policy risks[39](index=39&type=chunk) - The company possesses nearly thirty years of real estate development experience, cultivating an excellent management team with a rational knowledge structure and rich practical experience, and maintains strategic cooperation with upstream and downstream enterprises and financial institutions[39](index=39&type=chunk) - The company adheres to the principle of "better to miss than to acquire incorrectly," deeply cultivating core areas within Zhejiang Province's core cities, strictly controlling land costs, and opportunistically increasing quality land reserves[40](index=40&type=chunk) - The company enjoys high brand recognition and influence in the Yangtze River Delta region, particularly strong brand premium capability in the Zhejiang market, establishing a brand image as a "residential expert and luxury home master"[40](index=40&type=chunk) - The company adheres to prudent financial management, maintaining low debt levels and financing costs, and achieves cash flow and profit balance through a rapid development strategy[40](index=40&type=chunk) [Main Business Analysis](index=11&type=section&id=Main%20Business%20Analysis) Main business revenue decreased **71.95%** year-on-year due to smaller project delivery, with corresponding cost and expense reductions; housing sales, though down **72.16%**, still comprised **98.66%** of revenue, and while both Ningbo and non-Ningbo revenues fell, Ningbo's share rose Major Financial Data Year-on-Year Changes | Item | Current Reporting Period (yuan) | Prior Year Same Period (yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,895,014,587.17 | 13,884,161,304.65 | -71.95% | Mainly due to smaller scale of project delivery in the current reporting period | | Operating Cost | 3,432,139,101.81 | 12,937,750,144.23 | -73.47% | Mainly due to smaller scale of project delivery in the current reporting period | | Net Profit Attributable to Shareholders of the Listed Company | 36,450,786.55 | 464,033,165.86 | -92.14% | - | | Net Cash Flow from Operating Activities | 560,583,084.05 | 810,411,928.87 | -30.83% | Mainly due to reduced sales collection in the current reporting period | | Net Cash Flow from Investing Activities | -87,545,092.22 | 5,754,345.47 | -1,621.37% | Mainly due to increased investment in cooperative projects in the current reporting period | | Net Cash Flow from Financing Activities | -1,097,448,056.64 | -1,687,701,102.63 | 34.97% | Mainly due to reduced debt repayment cash outflow resulting from smaller debt scale in the current reporting period | Operating Revenue Composition (by Industry/Product) | Category | Item | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | | By Industry/Product | Housing Sales | 3,843,022,003.30 | 98.66% | -72.16% | | | Construction | 11,625,530.26 | 0.30% | -67.41% | | | Property Leasing | 33,460,763.39 | 0.86% | -1.96% | | By Region | Ningbo Region | 1,938,393,171.15 | 49.77% | -60.14% | | | Non-Ningbo Region | 1,956,621,416.02 | 50.23% | -78.31% | [Non-Main Business Analysis](index=13&type=section&id=Non-Main%20Business%20Analysis) During the reporting period, non-main business significantly impacted total profit, with investment income primarily from wealth management products, fair value change gains and losses mainly from other non-current financial assets, asset impairment losses substantially increasing due to inventory depreciation provisions, non-operating income mainly from forfeited deposits and quality guarantee deductions, and non-operating expenses primarily from unrecoverable funds Impact of Non-Main Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,064,410.92 | 46.31% | Mainly from wealth management products in the current reporting period | No | | Fair Value Change Gains and Losses | 5,694,396.15 | 86.05% | Mainly due to fair value changes of other non-current financial assets in the current reporting period | No | | Asset Impairment | -176,099,369.48 | -2,661.00% | Mainly due to provision for inventory depreciation in the current reporting period | No | | Non-operating Income | 5,940,676.96 | 89.77% | Mainly from forfeited deposits and quality guarantee deductions | No | | Non-operating Expenses | 2,991,977.53 | 45.21% | Mainly from individual unrecoverable funds | No | [Analysis of Assets and Liabilities](index=13&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Period-end total assets decreased **24.17%** year-on-year, driven by reduced inventory and contract liabilities, while monetary funds and borrowings also fell, net assets attributable to shareholders slightly rose **0.63%**, and various assets remained restricted for borrowings Significant Changes in Asset Composition | Item | Current Reporting Period-end (yuan) | Proportion of Total Assets | Prior Year-end (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,601,983,572.40 | 11.11% | 2,226,747,417.35 | 11.71% | -0.60% | | Inventory | 9,383,842,540.76 | 65.10% | 13,192,106,381.35 | 69.40% | -4.30% | | Contract Liabilities | 1,545,869,357.35 | 10.72% | 4,286,906,539.18 | 22.55% | -11.83% | | Long-term Borrowings | 1,082,171,300.00 | 7.51% | 1,694,701,300.00 | 8.92% | -1.41% | | Non-current Liabilities Due Within One Year | 34,678,418.02 | - | 401,064,294.87 | - | - | | Total Assets | 14,414,301,174.99 | - | 19,008,979,439.71 | - | -24.17% | Period-end Asset Restrictions | Item | Book Balance (yuan) | Book Value (yuan) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Inventory | 2,298,619,600.12 | 1,973,091,260.82 | Mortgage | Mortgaged for borrowings | | Investment Properties | 826,251,384.42 | 485,794,707.73 | Mortgage | Mortgaged for borrowings | | Fixed Assets | 39,832,028.49 | 17,281,142.71 | Mortgage | Mortgaged for borrowings | | Monetary Funds | 93,777,939.84 | 93,777,939.84 | Pledge/Freeze | Guarantee deposits, loan deposits, frozen funds | [Investment Status Analysis](index=14&type=section&id=Investment%20Status%20Analysis) During the reporting period, the company's investment amount remained unchanged, with no significant equity investments acquired or ongoing significant non-equity investments, and no securities investments, derivative investments, or use of raised funds - The company's investment amount was **0.00 yuan** during the reporting period, consistent with the prior year's same period[56](index=56&type=chunk) - The company had no significant equity investments, significant non-equity investments, securities investments, derivative investments, or use of raised funds during the reporting period[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [Significant Asset and Equity Sales](index=15&type=section&id=Significant%20Asset%20and%20Equity%20Sales) During the reporting period, the company did not engage in any sales of significant assets or equity - The company did not sell significant assets or equity during the reporting period[61](index=61&type=chunk)[62](index=62&type=chunk) [Analysis of Major Holding and Participating Companies](index=15&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main subsidiaries, Ningbo Rongxin Real Estate Co., Ltd. and Jiaxing Jiarong Real Estate Co., Ltd., impacted the company's net profit during the reporting period, with Ningbo Rongxin Real Estate achieving a net profit of **95,868,734.57 yuan** and Jiaxing Jiarong Real Estate achieving **16,195,949.68 yuan**, and no subsidiaries were acquired or disposed of during the reporting period Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | Ningbo Rongxin Real Estate Co., Ltd. | Subsidiary | Real estate development and operation | 2,000,000.00 | 95,868,734.57 | | Jiaxing Jiarong Real Estate Co., Ltd. | Subsidiary | Real estate development and operation | 50,000,000.00 | 16,195,949.68 | - The company did not acquire or dispose of subsidiaries during the reporting period[63](index=63&type=chunk) [Information on Structured Entities Controlled by the Company](index=16&type=section&id=Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[64](index=64&type=chunk) [Risks Faced by the Company and Countermeasures](index=16&type=section&id=Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces policy, funding, project operation, and human resource risks, which it plans to address by strengthening macroeconomic policy research, rationally planning funds, adhering to rapid development and refined cost control, and continuously attracting and developing professional talent while improving its human resource management system - Policy risk: The real estate industry is highly susceptible to national macroeconomic regulation, so the company will strengthen policy tracking and research, invest rationally, and optimize product structure[64](index=64&type=chunk) - Funding risk: Real estate enterprises are capital-intensive, so the company will rationally plan funds, maintain financial stability, flexibly use financing tools, and reduce financial expenses[64](index=64&type=chunk) - Project operation risk: Real estate projects have long development cycles, high investment, and complex processes, so the company will adhere to "no hoarding land, no holding back sales," rapid development and destocking, and implement standardized operations and refined cost control[64](index=64&type=chunk)[65](index=65&type=chunk) - Human resource risk: As the industry enters an era of management dividends, the company will attract and develop professional talent, strengthen talent pipeline construction and internal training, and improve its human resource management system[65](index=65&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=16&type=section&id=Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system nor disclosed a valuation enhancement plan[66](index=66&type=chunk) [Implementation of "Quality and Return Dual Improvement" Action Plan](index=16&type=section&id=Implementation%20of%20%22Quality%20and%20Return%20Dual%20Improvement%22%20Action%20Plan) The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[66](index=66&type=chunk) [Corporate Governance, Environment, and Society](index=17&type=section&id=Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, independent director Yan Guoqing resigned from his positions as independent director and member of the board's nomination, remuneration and appraisal, audit, and strategy committees due to personal reasons, and has ceased to perform his duties Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Yan Guoqing | Independent Director, Chairman of Board Nomination Committee, Chairman of Remuneration and Appraisal Committee, Member of Audit Committee, Member of Strategy Committee | Resignation | August 12, 2025 | Personal reasons | [Profit Distribution and Capital Reserve to Share Capital Conversion in the Current Reporting Period](index=17&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion%20in%20the%20Current%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[69](index=69&type=chunk) [Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures](index=17&type=section&id=Implementation%20of%20Company%27s%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[70](index=70&type=chunk) [Environmental Information Disclosure](index=17&type=section&id=Environmental%20Information%20Disclosure) The company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law[71](index=71&type=chunk) [Social Responsibility](index=17&type=section&id=Social%20Responsibility) During the reporting period, the company actively fulfilled social responsibilities through continuous "Rong'an Cup" Children's Art Exhibitions, expanded Shared Reading and "Little Shark" Public Swimming programs, established a Children's Medical Aid Fund, conducted rural science and art teaching, and donated to rural revitalization and community projects - The company has continuously held the "Rong'an Cup" Children's Art Exhibition for **19 years** and expanded the Shared Reading Program to remote areas[71](index=71&type=chunk) - The company established a Children's Medical Aid Fund, successfully assisting **sixty-eight critically ill children**, and supported rural science and art public welfare teaching projects[71](index=71&type=chunk) - The company donated **1.2 million yuan** to Huangping County, Guizhou Province, to promote rural revitalization and an additional **1 million yuan** to consolidate poverty alleviation achievements[72](index=72&type=chunk) - The company donated funds for the Lemon Tree Sunshine Home project in Yinzhou District, Ningbo City, and local community public welfare projects[72](index=72&type=chunk) [Significant Matters](index=18&type=section&id=Significant%20Matters) [Fulfillment of Commitments](index=18&type=section&id=Fulfillment%20of%20Commitments) During the reporting period, the company had no commitments that were fulfilled or overdue and unfulfilled by the actual controller, shareholders, related parties, acquirers, or the company itself - The company had no commitments that were unfulfilled or overdue and unfulfilled during the reporting period[74](index=74&type=chunk) [Related Party Fund Occupation](index=18&type=section&id=Related%20Party%20Fund%20Occupation) During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties - The company had no non-operating fund occupation by controlling shareholders or other related parties during the reporting period[75](index=75&type=chunk) [Irregular External Guarantees](index=18&type=section&id=Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[76](index=76&type=chunk) [Appointment and Dismissal of Accounting Firms](index=18&type=section&id=Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[77](index=77&type=chunk) [Board of Directors' and Supervisory Board's Explanation on Non-Standard Audit Report](index=18&type=section&id=Board%20of%20Directors%27%20and%20Supervisory%20Board%27s%20Explanation%20on%20Non-Standard%20Audit%20Report) The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[78](index=78&type=chunk) [Board of Directors' Explanation on Prior Year's Non-Standard Audit Report](index=18&type=section&id=Board%20of%20Directors%27%20Explanation%20on%20Prior%20Year%27s%20Non-Standard%20Audit%20Report) The company had no non-standard audit report for the prior year during the reporting period - The company had no non-standard audit report for the prior year during the reporting period[78](index=78&type=chunk) [Bankruptcy and Reorganization Matters](index=18&type=section&id=Bankruptcy%20and%20Reorganization%20Matters) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[78](index=78&type=chunk) [Litigation Matters](index=18&type=section&id=Litigation%20Matters) The company had no significant litigation, arbitration, or other litigation matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[79](index=79&type=chunk) [Penalties and Rectification](index=19&type=section&id=Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[80](index=80&type=chunk) [Integrity Status of the Company and its Controlling Shareholder and Actual Controller](index=19&type=section&id=Integrity%20Status%20of%20the%20Company%20and%20its%20Controlling%20Shareholder%20and%20Actual%20Controller) The company had no integrity issues requiring explanation during the reporting period - The company had no integrity issues requiring explanation during the reporting period[81](index=81&type=chunk) [Significant Related Party Transactions](index=19&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company had no significant related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor transactions, or transactions with financial companies - The company had no significant related party transactions related to daily operations during the reporting period[81](index=81&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[82](index=82&type=chunk) - The company had no related party creditor-debtor transactions during the reporting period[84](index=84&type=chunk) [Significant Contracts and Their Performance](index=20&type=section&id=Significant%20Contracts%20and%20Their%20Performance) The company had no entrustment, contracting, or leasing matters, but provided **1.55637 billion yuan** in subsidiary guarantees (**31.84%** of net assets), including **1.57265 billion yuan** for high-leverage entities, and executed **1.1 billion yuan** in wealth management transactions with no outstanding balance, and no other significant contracts - The company had no entrustment, contracting, or leasing matters during the reporting period[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) Company's Guarantees to Subsidiaries | Guaranteed Party Name | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Tianyuan Landscape Construction Co., Ltd. | 15,000 | 10,150 | Three years from the expiration of debt performance period | No | | Zhejiang Tianyuan Landscape Construction Co., Ltd. | 10,000 | 10,000 | Three years from the expiration of debt performance period | No | | Ningbo Happy Shopping Plaza Development Co., Ltd. | 31,000 | 30,750 | Three years from the expiration of debt performance period | No | | Hangzhou Xianghua Investment Management Co., Ltd. | 50,000 | 46,250 | Three years from the expiration of debt performance period | No | | Yiwu Huajie Real Estate Co., Ltd. | 35,000 | 7,926 | Three years from the expiration of debt performance period | No | | Ningbo Rongyuan Real Estate Co., Ltd. | 60,000 | 5,365 | Three years from the expiration of debt performance period | No | | **Total Actual Guarantee Balance to Subsidiaries at Period-end** | **299,000** | **155,637** | - | - | - The total actual guarantee amount at period-end was **1.86387 billion yuan**, accounting for **31.84%** of the company's net assets[94](index=94&type=chunk) - The debt guarantee balance provided for guaranteed parties with an asset-liability ratio exceeding **70%** was **1.57265 billion yuan**[94](index=94&type=chunk) Wealth Management Product Information | Specific Type | Wealth Management Product Transaction Amount (10,000 yuan) | Outstanding Balance at Period-end (10,000 yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 110,000 | 0 | | **Total** | **110,000** | **0** | - The company had no other significant contracts during the reporting period[97](index=97&type=chunk) [Explanation of Other Significant Matters](index=23&type=section&id=Explanation%20of%20Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[98](index=98&type=chunk) [Significant Matters of Company Subsidiaries](index=23&type=section&id=Significant%20Matters%20of%20Company%20Subsidiaries) The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[99](index=99&type=chunk) [Share Changes and Shareholder Information](index=24&type=section&id=Share%20Changes%20and%20Shareholder%20Information) [Share Changes](index=24&type=section&id=Share%20Changes) During the reporting period, the company's total share capital remained unchanged at **3,183,922,485 shares**, with the number and proportion of restricted and unrestricted shares also remaining constant Share Changes | Item | Number Before Change (shares) | Proportion Before Change | Number of Changes (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 691,936,069 | 21.73% | 0 | 691,936,069 | 21.73% | | II. Unrestricted Shares | 2,491,986,416 | 78.27% | 0 | 2,491,986,416 | 78.27% | | III. Total Shares | 3,183,922,485 | 100.00% | 0 | 3,183,922,485 | 100.00% | - The company's total share capital, restricted shares, and unrestricted shares all remained unchanged during the reporting period[102](index=102&type=chunk) [Securities Issuance and Listing](index=25&type=section&id=Securities%20Issuance%20and%20Listing) The company had no securities issuance and listing during the reporting period - The company had no securities issuance and listing during the reporting period[103](index=103&type=chunk) [Company Shareholder Numbers and Shareholding](index=25&type=section&id=Company%20Shareholder%20Numbers%20and%20Shareholding) At the end of the reporting period, the company had **35,707** common shareholders, with Rong'an Group Co., Ltd. holding **47.93%** and Wang Jiufang holding **28.69%** among the top ten shareholders, both acting in concert, and Rong'an Group's shares were pledged, while some shareholders participated in margin trading and securities lending through credit securities accounts - At the end of the reporting period, the total number of common shareholders was **35,707**[104](index=104&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-end (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status (number) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Rong'an Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 47.93% | 1,525,939,995 | 0 | 1,525,939,995 | Pledged: 306,150,000 | | Wang Jiufang | Domestic Natural Person | 28.69% | 913,500,000 | 685,125,000 | 228,375,000 | Not applicable: 0 | | Shanghai Yingshui Investment Management Co., Ltd. - Yingshui Jubao No. 13 Private Securities Investment Fund | Other | 0.99% | 31,500,000 | 0 | 31,500,000 | Not applicable: 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.59% | 18,786,443 | 0 | 18,786,443 | Not applicable: 0 | - Among the top 10 shareholders, Rong'an Group Co., Ltd., Wang Jiufang, and Wang Congwei are parties acting in concert[105](index=105&type=chunk) - Some of the top 10 common shareholders participated in margin trading and securities lending through credit securities accounts[105](index=105&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=27&type=section&id=Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[107](index=107&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=27&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[108](index=108&type=chunk) - The company's actual controller remained unchanged during the reporting period[108](index=108&type=chunk) [Preferred Shares Information](index=27&type=section&id=Preferred%20Shares%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[110](index=110&type=chunk) [Bond-Related Information](index=28&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[112](index=112&type=chunk) [Financial Report](index=29&type=section&id=Financial%20Report) [Audit Report](index=29&type=section&id=Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[114](index=114&type=chunk) [Financial Statements](index=29&type=section&id=Financial%20Statements) This section provides Rong'an Real Estate Co., Ltd.'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 presenting the company's financial position, operating results, and cash flow at the end of the reporting period - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[115](index=115&type=chunk)[119](index=119&type=chunk)[123](index=123&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[130](index=130&type=chunk)[134](index=134&type=chunk)[140](index=140&type=chunk) [Consolidated Balance Sheet](index=29&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, consolidated total assets were **14.414 billion yuan**, down **24.17%** from period-beginning, with total liabilities at **8.033 billion yuan**, and owners' equity attributable to the parent company at **5.855 billion yuan** Consolidated Balance Sheet Key Data | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 14,414,301,174.99 | 19,008,979,439.71 | | Total Liabilities | 8,032,604,659.80 | 12,543,443,124.74 | | Total Owners' Equity Attributable to Parent Company | 5,854,624,756.00 | 5,818,173,969.45 | | Minority Interests | 527,071,759.19 | 647,362,345.52 | [Parent Company Balance Sheet](index=32&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, parent company total assets were **16.118 billion yuan**, down **4.88%** from period-beginning, with total liabilities at **5.103 billion yuan**, and total owners' equity at **11.015 billion yuan** Parent Company Balance Sheet Key Data | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 16,117,544,437.40 | 16,934,803,015.03 | | Total Liabilities | 5,102,717,500.68 | 6,926,697,767.07 | | Total Owners' Equity | 11,014,826,936.72 | 10,008,105,247.96 | [Consolidated Income Statement](index=34&type=section&id=Consolidated%20Income%20Statement) For H1 2025, consolidated total operating revenue was **3.895 billion yuan**, down **71.95%** year-on-year, with net profit attributable to parent company shareholders at **36.4508 million yuan**, a **92.14%** decrease, and basic earnings per share of **0.0114 yuan** Consolidated Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 3,895,014,587.17 | 13,884,161,304.65 | | Operating Profit | 3,669,092.32 | 515,590,923.27 | | Total Profit | 6,617,791.75 | 516,583,888.86 | | Net Profit | 2,160,200.22 | 421,178,892.10 | | Net Profit Attributable to Parent Company Shareholders | 36,450,786.55 | 464,033,165.86 | | Basic Earnings Per Share (yuan/share) | 0.0114 | 0.1457 | [Parent Company Income Statement](index=36&type=section&id=Parent%20Company%20Income%20Statement) For the first half of 2025, the parent company's operating revenue was **219,125.92 yuan**, a **48.3%** year-on-year decrease, with operating profit of **989 million yuan**, total profit of **989 million yuan**, and net profit of **1.007 billion yuan**, primarily driven by **971 million yuan** in investment income Parent Company Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 219,125.92 | 423,658.59 | | Operating Profit | 988,972,710.37 | 1,480,612,918.51 | | Total Profit | 988,898,697.27 | 1,480,434,495.05 | | Net Profit | 1,006,721,688.76 | 1,682,524,516.51 | | Investment Income | 970,723,047.45 | 1,418,947,181.25 | [Consolidated Cash Flow Statement](index=37&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first half of 2025, the company's net cash flow from operating activities was **561 million yuan**, a **30.83%** year-on-year decrease, with net cash flow from investing activities of **-88 million yuan** and net cash flow from financing activities of **-1.097 billion yuan**, resulting in a net decrease in cash and cash equivalents of **-624 million yuan** Consolidated Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 560,583,084.05 | 810,411,928.87 | | Net Cash Flow from Investing Activities | -87,545,092.22 | 5,754,345.47 | | Net Cash Flow from Financing Activities | -1,097,448,056.64 | -1,687,701,102.63 | | Net Increase in Cash and Cash Equivalents | -624,410,064.81 | -871,534,828.29 | | Period-end Cash and Cash Equivalents Balance | 1,508,205,632.56 | 3,176,151,894.14 | [Parent Company Cash Flow Statement](index=38&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For the first half of 2025, the parent company's net cash flow from operating activities was **-598 million yuan**, net cash flow from investing activities was **972 million yuan**, and net cash flow from financing activities was **-552 million yuan**, resulting in a net decrease in cash and cash equivalents of **-178 million yuan** Parent Company Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -598,410,404.52 | -1,582,589,050.54 | | Net Cash Flow from Investing Activities | 972,131,974.07 | 1,373,220,355.72 | | Net Cash Flow from Financing Activities | -552,161,258.41 | -54,000,000.00 | | Net Increase in Cash and Cash Equivalents | -178,439,688.86 | -263,368,694.82 | | Period-end Cash and Cash Equivalents Balance | 216,373,046.83 | 121,419,011.35 | [Consolidated Statement of Changes in Owners' Equity](index=40&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For H1 2025, consolidated owners' equity decreased from **6.466 billion yuan** to **6.382 billion yuan**, mainly due to a **120 million yuan** decrease in minority interests and a **36.4508 million yuan** increase in parent company owners' equity Consolidated Statement of Changes in Owners' Equity | Item | Period-beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 5,818,173,969.45 | 36,450,786.55 | 5,854,624,756.00 | | Minority Interests | 647,362,345.52 | -120,290,586.33 | 527,071,759.19 | | Total Owners' Equity | 6,465,536,314.97 | -83,839,799.78 | 6,381,696,515.19 | [Parent Company Statement of Changes in Owners' Equity](index=44&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For the first half of 2025, the parent company's total owners' equity increased from **10.008 billion yuan** at the beginning of the period to **11.015 billion yuan** at the end of the period, primarily due to a **1.007 billion yuan** increase in undistributed profits Parent Company Statement of Changes in Owners' Equity | Item | Period-beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | | Undistributed Profits | 5,051,310,209.72 | 1,006,721,688.76 | 6,058,031,898.48 | | Total Owners' Equity | 10,008,105,247.96 | 1,006,721,688.76 | 11,014,826,936.72 | [Company Basic Information](index=48&type=section&id=Company%20Basic%20Information) Rong'an Real Estate Co., Ltd., established May 19, 1989, acquired Rong'an Group assets in 2008, changing registered capital to **1,061,307,495 yuan**, headquartered in Ningbo, primarily engaged in real estate development and construction, with financial statements approved on August 28, 2025 - The company was established on **May 19, 1989**, formerly known as Success Information Industry (Group) Co., Ltd[147](index=147&type=chunk) - In **2008**, the company acquired assets from Rong'an Group Co., Ltd. through share issuance, changing its registered capital to **1,061,307,495 yuan**[147](index=147&type=chunk) - The company's main business includes real estate development, operation, and construction project contracting[147](index=147&type=chunk) [Basis of Financial Statement Preparation](index=48&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, with recognition and measurement performed in accordance with the "Enterprise Accounting Standards" and relevant regulations issued by the Ministry of Finance, and management has evaluated the company's ability to continue as a going concern for at least 12 months from the end of the reporting period, believing it can continue operations for the foreseeable future - The company prepares its financial statements on a going concern basis, in accordance with the "Enterprise Accounting Standards" and relevant regulations issued by the Ministry of Finance[148](index=148&type=chunk) - The company's management believes that the company can continue as a going concern for a foreseeable period of no less than **12 months** from the approval date of these financial statements[149](index=149&type=chunk) [Significant Accounting Policies and Estimates](index=48&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering business combinations, consolidated financial statements, financial instruments, receivables, inventories, investment properties, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax, and leases, ensuring the truthfulness and completeness of the financial report - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truthfully and completely reflecting the financial position, operating results, cash flows, and other information[151](index=151&type=chunk) - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its operating cycle (usually more than **12 months**) is used as the basis for classifying assets and liabilities as current or non-current[152](index=152&type=chunk)[153](index=153&type=chunk) - When initially recognizing financial assets, the company classifies them as financial assets measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss, based on the business model for managing the financial assets and the contractual cash flow characteristics[165](index=165&type=chunk) - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[214](index=214&type=chunk) [Taxes](index=64&type=section&id=Taxes) This section discloses the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, enterprise income tax, land value-added tax, education surcharge, and local education surcharge, with the company's subsidiary Zhejiang Boyuan Construction Co., Ltd. enjoying a **15%** enterprise income tax preferential rate as a high-tech enterprise Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Real estate sales, construction and installation projects, rental income, property management, sales agency, commodity sales | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Turnover taxes paid | 7%, 5% | | Enterprise Income Tax | Taxable income | 25%, 15% | | Education Surcharge | Turnover tax amount paid | 3% | | Local Education Surcharge | Turnover tax amount paid | 2% | - Subsidiary Zhejiang Boyuan Construction Co., Ltd. passed the high-tech enterprise review and was subject to a **15%** enterprise income tax rate during the reporting period[228](index=228&type=chunk) - Real estate development enterprises provisionally prepay land value-added tax at **1.5%-3%** of the pre-sale income as stipulated by the local tax authorities, and it is levied at a four-tier progressive rate upon final settlement[229](index=229&type=chunk) [Notes to Consolidated Financial Statement Items](index=65&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details consolidated financial statement items, noting significant changes in monetary funds, inventory, contract liabilities, and long-term borrowings, along with asset impairment provisions and restricted assets, while operating revenue and net profit significantly decreased, cash flow was affected, and interests in subsidiaries, joint ventures, government grants, and financial instrument risks are disclosed Composition of Monetary Funds | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Bank Deposits | 1,508,205,632.56 | 2,132,615,697.37 | | Other Monetary Funds | 93,777,939.84 | 94,131,719.98 | | **Total** | **1,601,983,572.40** | **2,226,747,417.35** | - Other monetary funds primarily consist of guarantee deposits, loan deposits, and frozen funds[231](index=231&type=chunk) Disclosure of Accounts Receivable by Impairment Provision Method | Category | Period-end Book Balance (yuan) | Period-end Impairment Provision (yuan) | Period-end Book Value (yuan) | | :--- | :--- | :--- | :--- | | Accounts receivable for which impairment provisions are made individually | 34,845,421.34 | 27,763,538.31 | 7,081,883.03 | | Accounts receivable for which impairment provisions are made by portfolio | 156,090,456.80 | 21,359,302.78 | 134,731,154.02 | | **Total** | **190,935,878.14** | **49,122,841.09** | **141,813,037.05** | - Impairment provisions of **2,107,916.67 yuan** were made in the current period, with **7,081,883.03 yuan** recovered or reversed, and the period-end impairment provision balance was **49,122,841.09 yuan**[242](index=242&type=chunk) Inventory Classification | Item | Period-end Book Balance (yuan) | Period-end Inventory Depreciation Reserve (yuan) | Period-end Book Value (yuan) | | :--- | :--- | :--- | :--- | | Development Costs | 271,935,103.46 | - | 271,935,103.46 | | Developed Products | 11,356,862,964.76 | 2,244,955,527.46 | 9,111,907,437.30 | | **Total** | **11,628,798,068.22** | **2,244,955,527.46** | **9,383,842,540.76** | - The cumulative amount of capitalized interest in inventory at period-end was **681,824,675.74 yuan**, with the current period's interest capitalization rate ranging from **3.82%** to **11.45%**[283](index=283&type=chunk) Assets with Restricted Ownership or Use Rights | Item | Book Balance (yuan) | Book Value (yuan) | Type of Restriction | | :--- | :--- | :--- | | Inventory | 2,298,619,600.12 | 1,973,091,260.82 | Mortgage | | Investment Properties | 826,251,384.42 | 485,794,707.73 | Mortgage | | Fixed Assets | 39,832,028.49 | 17,281,142.71 | Mortgage | | Accounts Receivable | 3,079,779.47 | 2,905,536.92 | Pledge | | Monetary Funds | 93,777,939.84 | 93,777,939.84 | Pledge/Freeze | | **Total** | **3,261,560,732.34** | **2,572,850,588.02** | - | Operating Revenue and Operating Cost | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Period Revenue (yuan) | Prior Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 3,855,032,642.06 | 3,408,745,422.57 | 13,839,950,237.32 | 12,914,043,635.20 | | Other Business | 39,981,945.11 | 23,393,679.24 | 44,211,067.33 | 23,706,509.03 | | **Total** | **3,895,014,587.17** | **3,432,139,101.81** | **13,884,161,304.65** | **12,937,750,144.23** | - The revenue amount corresponding to contracts signed but not yet performed or not fully performed at the end of the current reporting period is **16,711,224.77 yuan**, expected to be recognized in **2025**[374](index=374&type=chunk) Top Five Projects by Revenue Recognition in the Reporting Period | No. | Project Name | Revenue Amount (yuan) | | :--- | :--- | :--- | | 1 | Guantang Qingyu Mansion | 754,770,236.44 | | 2 | Huixueli | 728,540,666.95 | | 3 | Xinyue Hebin Mansion | 432,790,643.58 | | 4 | Wenlan Wangzhuang | 398,192,503.69 | | 5 | Huicuili | 276,505,846.73 | Income Tax Expense | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Current Income Tax Expense | 20,471,303.93 | 99,060,593.39 | | Deferred Income Tax Expense | -16,013,712.40 | -3,655,596.63 | | **Total** | **4,457,591.53** | **95,404,996.76** | Reconciliation of Net Cash Flow from Operating Activities | Supplementary Information | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net Profit | 2,160,200.22 | 421,178,892.10 | | Add: Asset Impairment Provisions | 176,099,369.48 | -988,101.87 | | Credit Impairment Losses | 1,546,504.93 | 8,140,185.81 | | Decrease in Inventory (increase indicated by "-") | 3,630,173,304.95 | 12,425,038,394.73 | | Decrease in Operating Receivables (increase indicated by "-") | 180,410,911.87 | 404,464,718.02 | | Increase in Operating Payables (decrease indicated by "-") | -3,470,830,621.67 | -12,555,377,018.10 | | **Net Cash Flow from Operating Activities** | **560,583,084.05** | **810,411,928.87** | Operating Lease Income as Lessor | Item | Lease Income (yuan) | | :--- | :--- | | Ningbo Rong'an Building | 10,365,740.80 | | Hangzhou Rong'an Building | 12,816,828.23 | | Happy Shopping Plaza | 7,392,346.09 | | Other | 2,885,848.27 | | **Total** | **33,460,763.39** | [R&D Expenses](index=102&type=section&id=R%26D%20Expenses) During the reporting period, the company's total R&D expenses were **5,875,888.16 yuan**, all expensed, primarily comprising employee compensation and material costs, representing a significant year-on-year increase of **113.28%** R&D Expenses | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Employee Compensation | 1,307,006.21 | 1,979,658.27 | | Material Costs | 4,487,763.00 | 621,221.32 | | Other | 81,118.95 | 154,086.68 | | **Total** | **5,875,888.16** | **2,754,966.27** | | Of which: Expensed R&D Expenses | 5,875,888.16 | 2,754,966.27 | [Changes in Consolidation Scope](index=103&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, the company did not experience business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries leading to loss of control, but **6** subsidiaries were deregistered, resulting in changes in the consolidation scope - During the reporting period, the company did not experience business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries leading to loss of control[424](index=424&type=chunk) - During the reporting period, **6** subsidiaries, including Ningbo Yiwang Real Estate Co., Ltd. and Ningbo Rong'an Education Investment Management Co., Ltd., were deregistered, leading to changes in the consolidation scope[424](index=424&type=chunk) [Interests in Other Entities](index=103&type=section&id=Interests%20in%20Other%20Entities) This section discloses the company's interests in subsidiaries, joint ventures, and associates, including several subsidiaries, with Yiwu Huayi Real Estate Co., Ltd. and Ningbo Kanghai Real Estate Co., Ltd. being important non-wholly-owned subsidiaries, and the company holds interests in multiple joint ventures, for which key financial information is provided, along with the basis for the company's control over certain joint ventures Important Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage | Net Profit Attributable to Minority Shareholders in Current Period (yuan) | Minority Interests Balance at Period-end (yuan) | | :--- | :--- | :--- | :--- | | Yiwu Huayi Real Estate Co., Ltd. (Consolidated) | 49.00% | -21,172,611.77 | 413,725,519.45 | | Ningbo Kanghai Real Estate Co., Ltd. | 49.00% | -5,095,849.11 | 46,451,698.21 | - The company in Cangnan Rong'an Real Estate Co., Ltd., Longgang City Lianghui Real Estate Co., Ltd., and Jiaxing Yikun Real Estate Co., Ltd. joint ventures, through cooperation agreements and articles of association, holds more than half of the voting rights, thus including them in the consolidated financial statements[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk) Key Financial Information of Important Joint Ventures (Period-end Balance/Current Period Amount) | Item | Hangzhou Zhenda Investment Co., Ltd. | Chongqing Rongquan Industrial Co., Ltd. | Ningbo Kangrui Enterprise Management Consulting Co., Ltd. | | :--- | :--- | :--- | :--- | | Total Assets (yuan) | 304,952,338.86 | 144,146,753.28 | 211,357,657.58 | | Total Liabilities (yuan) | 201,120,999.93 | 22,561,951.90 | 91,413,615.07 | | Owners' Equity Attributable to Parent Company (yuan) | 103,831,338.93 | 81,803,016.45 | 119,944,042.51 | | Net Profit (yuan) | 960,404.49 | 2,385.94 | -13,848,220.06 | Summary Financial Information of Unimportant Joint Ventures and Associates | Item | Period-end Balance/Current Period Amount (yuan) | | :--- | :--- | | Total Book Value of Joint Venture Investments | 258,252,068.31 | | Net Profit of Joint Ventures | -3,519,590.37 | | Total Comprehensive Income of Joint Ventures | -3,519,590.37 | [Government Grants](index=112&type=section&id=Government%20Grants) During the reporting period, government grants recognized in current profit or loss amounted to **5,026,704.43 yuan**, primarily consisting of income-related government grants Government Grants Recognized in Current Profit or Loss | Accounting Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Income-related government grants | 5,026,704.43 | 5,960,417.45 | [Risks Related to Financial Instruments](index=113&type=section&id=Risks%20Related%20to%20Financial%20Instruments) The company faces market risk (primarily interest rate risk), credit risk, and liquidity risk, with a **50 basis point** increase in interest rates leading to a **2.8353 million yuan** reduction in pre-tax profit, while credit risk is managed by depositing funds with highly reputable financial institutions and monitoring accounts receivable and implementing credit policies, and liquidity risk is managed by maintaining sufficient cash and cash equivalents and monitoring bank borrowings, with most financial liabilities maturing within **1 year** at period-end - The company faces market risk (interest rate risk), credit risk, and liquidity risk[446](index=446&type=chunk) - A **50 basis point** increase in interest rates would lead to an increase in interest expenses and a reduction in the company's pre-tax profit by **2.8353 million yuan**[447](index=447&type=chunk) - The company's credi

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