浙江松原汽车安全系统股份有限公司 2025 年半年度报告全文 浙江松原汽车安全系统股份有限公司 2025 年半年度报告 2025-049 2025 年 8 月 1 浙江松原汽车安全系统股份有限公司 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。 公司负责人胡铲明、主管会计工作负责人郭小平及会计机构负责人(会计 主管人员)郭小平声明：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。 本半年度报告中涉及未来计划或规划等前瞻性陈述，均不构成公司对投资 者的实质承诺，投资者及相关人士均应对此保持足够的风险认识，并且应当 理解计划、预测与承诺之间的差异。 公司已在本报告中详细阐述可能存在的风险及应对措施，详见本报告"第 三节管理层讨论与分析"之"十、公司面临的风险和应对措施"部分，请广 大投资者仔细阅读并注意投资风险。 公司经本次董事会审议通过的利润分配预案为：以 316,914,122 为基 数，向全体股东每 ...

[Glossary](index=5&type=section&id=Glossary) This section provides definitions for key terms used throughout the report [Company Profile and Key Financial Indicators](index=7&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) [Basic Company Information](index=7&type=section&id=Basic%20Company%20Information) This section details Shanghai MicuRx Pharmaceuticals' basic corporate information, including legal representative and addresses, with no changes in the reporting period - The company's legal representative is ZHENGYU YUAN, with its registered and office address located in the Shanghai Free Trade Zone[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew 10.26% to 66.97 million CNY, driven by Contezolid sales, with net loss narrowing due to reduced expenses and improved cash flow, despite high R&D intensity Key Accounting Data for H1 2025 | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 66,969,753.09 CNY | 60,738,238.45 CNY | 10.26% | | **Net Profit Attributable to Shareholders** | -138,674,492.55 CNY | -201,304,246.81 CNY | N/A | | **Net Profit Attributable to Shareholders (Excluding Non-recurring Items)** | -143,358,346.31 CNY | -211,520,217.94 CNY | N/A | | **Net Cash Flow from Operating Activities** | -120,704,678.78 CNY | -229,023,837.10 CNY | N/A | | **Total Assets (Period-end)** | 772,902,757.53 CNY | - | -8.98% (Compared to prior year-end) | | **Net Assets Attributable to Shareholders (Period-end)** | 313,375,760.33 CNY | - | -28.61% (Compared to prior year-end) | - Operating revenue increased by **10.26%**, primarily due to increased sales of the self-developed product Contezolid Tablets[22](index=22&type=chunk) - Net loss narrowed year-on-year, mainly due to reduced selling expenses and R&D investment[22](index=22&type=chunk) - R&D investment as a percentage of operating revenue was **173.83%**, a year-on-year decrease of **99.75 percentage points**, primarily due to strict control over R&D expenditures[22](index=22&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Main Business and Product Pipeline](index=11&type=section&id=Main%20Business%20and%20Product%20Pipeline) The company's core business is innovative small molecule drug R&D for infectious diseases, with Contezolid Tablets (MRX-1) sales growing 10.26% to 66.97 million CNY, while advancing pipeline products MRX-4, MRX-8, MRX-5, and expanding into oncology and nephrology - The first commercialized product, Contezolid Tablets (MRX-1), generated **66.97 million CNY** in operating revenue during the reporting period, a **10.26%** year-on-year increase[30](index=30&type=chunk) Core R&D Product Pipeline Progress | Product Code | Drug Type | Indication | Latest Progress | | :--- | :--- | :--- | :--- | | **MRX-4** | Contezolid Prodrug | Diabetic Foot Infections, Complicated Skin and Soft Tissue Infections | International multi-center Phase III clinical trials ongoing; NDA for complicated skin infections accepted | | **MRX-8** | Polymyxin Class | Multi-drug Resistant Gram-negative Bacterial Infections | US and China Phase I clinical trials completed | | **MRX-5** | Benzoxaborole Class | Non-tuberculous Mycobacterial (NTM) Infections | Australia Phase I clinical trial completed, China Phase I clinical trial ongoing, and granted FDA Orphan Drug Designation | | **ADC Pipeline** | Antibody-Drug Conjugate | Refractory Solid Tumors | First candidate drug has entered preclinical development | | **MRX-15/17** | Peptide-Drug Conjugate | Renal Cancer and Nephritis | In preclinical research stage | [Business Model](index=15&type=section&id=Business%20Model) The company's business model integrates in-house R&D with CRO outsourcing, MAH for manufacturing, a robust supplier evaluation system for procurement, and a hybrid sales approach combining an in-house team with CSO partnerships - R&D Model: Driven by in-house R&D, with non-core technical research outsourced to CRO service companies[40](index=40&type=chunk) - Production Model: Adopts the Marketing Authorization Holder (MAH) model, entrusting third parties with the production of APIs and formulations[43](index=43&type=chunk) - Sales Model: Combines an in-house commercialization team with external Contract Sales Organizations (CSOs) to accelerate hospital access and market coverage[44](index=44&type=chunk) [Industry Overview and Market Analysis](index=16&type=section&id=Industry%20Overview%20and%20Market%20Analysis) The severe global bacterial resistance crisis drives demand for new antimicrobials; the Chinese oxazolidinone market is expanding, with Contezolid Tablets' segment projected to reach 52.6% of treatment days by 2030, while MRX-8 targets the 25.5 billion CNY Gram-negative market, and MRX-5 addresses unmet NTM needs, with industry trends favoring innovative, safe, oral, and narrow-spectrum antibiotics - Global antimicrobial resistance is one of the greatest threats to global health, food security, and development, projected to cause **10 million deaths worldwide by 2050**[47](index=47&type=chunk) - The share of oxazolidinone drugs (the class to which Contezolid belongs) in China's treatment days is projected to increase from **44.8% in 2024 to 52.6% by 2030**[76](index=76&type=chunk)[77](index=77&type=chunk) - The market size for antibacterial drugs targeting multi-drug resistant Gram-negative bacterial infections in China is projected to grow from **19.9 billion CNY in 2024 to 25.5 billion CNY by 2030**[106](index=106&type=chunk)[109](index=109&type=chunk) - Industry Trends: Innovative anti-resistant bacterial drugs, emphasis on safety, oral formulations, and narrow-spectrum antibiotics are key development directions for the future antimicrobial market[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Discussion and Analysis of Operations](index=38&type=section&id=Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company achieved steady operational growth, with Contezolid Tablets commercialization covering 580 hospitals and sales up 10.26%, while advancing pipeline products MRX-4, MRX-8, and MRX-5, and enhancing academic influence - Contezolid Tablets commercialization progress: Covered **580 hospitals** nationwide, achieved access and temporary procurement in **180 hospitals**, with a commercialization team of **82 people**[134](index=134&type=chunk) - Contezolid Tablets sales performance: Achieved operating revenue of **66.97 million CNY**, a year-on-year increase of **10.26%**[135](index=135&type=chunk) - R&D pipeline progress: MRX-4's NDA accepted; MRX-4 international multi-center Phase III clinical trial for diabetic foot infections enrolled **465 patients**; MRX-8 China Phase I clinical trial completed; MRX-5 China Phase I clinical trial enrolled **19 patients**[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Analysis of Core Competencies](index=41&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies include strong R&D with dual US-China centers, a differentiated product strategy for unmet needs, a professional global commercialization team, a rich R&D pipeline with three core technology platforms, and policy support for key products accelerating internationalization - The company possesses three core technologies: drug molecule design and discovery, metabolism-based drug design and optimization, and targeted therapy platform technologies (PDC and ADC)[149](index=149&type=chunk) - Core product Contezolid Tablets and its prodrug MRX-4 received **FDA Qualified Infectious Disease Product (QIDP)** and **Fast Track designations** in the US, while MRX-5 was granted **FDA Orphan Drug Designation**[147](index=147&type=chunk) R&D Investment Overview | Item | Current Period Amount | Prior Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | **Expensed R&D Investment** | 116,413,285.79 CNY | 166,167,389.94 CNY | -29.94% | | **Total R&D Investment** | 116,413,285.79 CNY | 166,167,389.94 CNY | -29.94% | | **R&D Investment as % of Revenue** | 173.83% | 273.58% | -99.75 percentage points | [Risk Factors](index=45&type=section&id=Risk%20Factors) The company faces multiple risks, including ongoing losses from high R&D and commercialization costs, operational risks like clinical trial failures and reliance on a single product/supplier, governance risks due to no controlling shareholder, and financial/regulatory risks - Unprofitability Risk: The company has continuously invested heavily in R&D since its inception, has not yet achieved profitability, and has accumulated uncompensated losses[162](index=162&type=chunk) - Commercialization Risk: Short-term operating performance relies on the single product Contezolid Tablets, facing risks of market promotion falling short of expectations[167](index=167&type=chunk) - Single Supplier Risk: Commercialized products are exclusively manufactured by Zhejiang Huahai, posing a risk of insufficient drug supply[168](index=168&type=chunk) - No De Facto Controller Risk: The company's dispersed equity structure may lead to governance instability or inefficient decision-making[169](index=169&type=chunk) [Corporate Governance, Environment, and Society](index=53&type=section&id=Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Directors, Supervisors, and Senior Management](index=53&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company's Board Secretary changed from Mr. Li Zhile to Ms. Nie Anna, with no changes to core technical personnel - The company's Board Secretary changed from Li Zhile to Nie Anna[188](index=188&type=chunk) [Profit Distribution and Equity Incentives](index=53&type=section&id=Profit%20Distribution%20and%20Equity%20Incentives) During the reporting period, the company had no half-year profit distribution or capital reserve capitalization plans, and completed share registration for the first vesting period of the 2023 restricted stock incentive plan's initial grant - The company had no half-year profit distribution or capital reserve capitalization plans during the reporting period[190](index=190&type=chunk) - The company completed the share registration for the first vesting period of the initial grant under the 2023 Restricted Stock Incentive Plan[191](index=191&type=chunk) [Significant Matters](index=56&type=section&id=Significant%20Matters) [Major Litigation and Arbitration Matters](index=72&type=section&id=Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company's wholly-owned subsidiary MicuRx US filed a contract dispute lawsuit against CRO service provider Medpace, Inc., which is ongoing and has not yet gone to trial, with no significant adverse impact on operations - The company's wholly-owned subsidiary MicuRx US filed a lawsuit against CRO service provider Medpace, Inc. for contract disputes; the case has been filed but not yet heard[216](index=216&type=chunk)[217](index=217&type=chunk) [Progress of Proceeds from Fundraising](index=75&type=section&id=Progress%20of%20Proceeds%20from%20Fundraising) The company's net IPO proceeds were 960 million CNY, with 764 million CNY (79.62%) cumulatively invested by period-end in R&D, marketing, and operations, while up to 500 million CNY of idle funds are used for cash management Overall Utilization of Proceeds from Fundraising | Item | Amount (CNY) | | :--- | :--- | | **Net Proceeds from Fundraising** | 959,727,898.12 | | **Amount Invested This Year** | 72,818,353.03 | | **Cumulative Amount Invested as of Period-end** | 764,136,874.43 | | **Cumulative Investment Progress as of Period-end** | 79.62% | - The company approved using up to **500 million CNY** of temporarily idle proceeds for cash management, for a period of **12 months** from the date of Board approval[231](index=231&type=chunk) [Share Changes and Shareholder Information](index=79&type=section&id=Share%20Changes%20and%20Shareholder%20Information) [Share Change Information](index=79&type=section&id=Share%20Change%20Information) During the reporting period, the company's total share capital increased by **395,407 shares** to **655,605,491 shares** due to the vesting of restricted shares under the 2023 incentive plan - During the reporting period, the company's total share capital increased by **395,407 shares** to **655,605,491 shares** due to the implementation of the equity incentive plan[234](index=234&type=chunk)[235](index=235&type=chunk) [Shareholder Information](index=80&type=section&id=Shareholder%20Information) As of period-end, the company had **14,444 common shareholders**, with the top three holding over 10% each, indicating a dispersed equity structure with no controlling shareholder or de facto controller - As of the end of the reporting period, the company had a total of **14,444 shareholders**[237](index=237&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-end | Percentage (%) | | :--- | :--- | :--- | | Genie Pharma | 71,572,817 | 10.92 | | MicuRx（HK）Limited | 70,756,084 | 10.79 | | Best Idea International Limited | 68,752,718 | 10.49 | | JSR Limited | 38,579,770 | 5.88 | | GP TMT Holdings Limited | 18,371,317 | 2.80 | | Huagai Capital...Beijing Huagai Xincheng... | 16,441,633 | 2.51 | | Zhao Ji | 16,300,000 | 2.49 | | Zhao Jianping | 16,000,000 | 2.44 | | Xinyi Youmaikesi Financial Consulting Center... | 15,217,545 | 2.32 | | Zhejiang Huahai Pharmaceutical Co., Ltd. | 8,307,401 | 1.27 | [Bond-Related Information](index=84&type=section&id=Bond-Related%20Information) [Corporate Bond Information](index=84&type=section&id=Corporate%20Bond%20Information) During the reporting period, the company had no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - The company has no corporate bonds or convertible corporate bonds[246](index=246&type=chunk) [Financial Report](index=85&type=section&id=Financial%20Report) [Financial Statement Summary](index=85&type=section&id=Financial%20Statement%20Summary) As of June 30, 2025, total assets were **773 million CNY**, total liabilities **460 million CNY**, and equity **313 million CNY**; H1 2025 saw **66.97 million CNY** revenue, **139 million CNY** net loss, **-121 million CNY** operating cash flow, and **237 million CNY** cash and equivalents Consolidated Financial Statement Key Data Summary (Jan-Jun 2025) | Indicator | Amount (CNY) | | :--- | :--- | | **Balance Sheet (Period-end)** | | | Total Assets | 772,902,757.53 | | Total Liabilities | 459,526,997.20 | | Equity Attributable to Parent Company Owners | 313,375,760.33 | | **Income Statement (Reporting Period)** | | | Total Operating Revenue | 66,969,753.09 | | Total Operating Costs | 209,906,680.34 | | Net Profit | -138,674,492.55 | | **Cash Flow Statement (Reporting Period)** | | | Net Cash Flow from Operating Activities | -120,704,678.78 | | Net Cash Flow from Investing Activities | 37,538,810.77 | | Net Cash Flow from Financing Activities | 47,673,187.41 | | Cash and Cash Equivalents at Period-end | 236,905,387.67 | [Summary of Notes to Consolidated Financial Statements](index=129&type=section&id=Summary%20of%20Notes%20to%20Consolidated%20Financial%20Statements) Notes to financial statements show period-end cash of **269 million CNY**, financial assets held for trading of **253 million CNY**, and accounts receivable of **37.76 million CNY** (4% allowance); R&D expenses were **116 million CNY** (down **29.94%**); long-term borrowings totaled **136 million CNY**, and **15.26 million CNY** in share-based payment expenses were recognized - Period-end cash and cash equivalents totaled **269 million CNY**, with **97.67 million CNY** held overseas[386](index=386&type=chunk) - R&D expenses for the period amounted to **116 million CNY**, a year-on-year decrease of **29.94%**, primarily comprising outsourced R&D expenses (**82.14 million CNY**) and employee compensation (**20.32 million CNY**)[483](index=483&type=chunk) - Total share-based payment expenses recognized this period were **15.26 million CNY**, recorded under selling, general and administrative, and R&D expenses[552](index=552&type=chunk) - The company has pending litigation, with subsidiary MicuRx US suing CRO service provider Medpace for contract disputes; the case has been filed but not yet heard[553](index=553&type=chunk)[555](index=555&type=chunk)

Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's Board, Supervisory Board, and senior management guarantee the semi-annual report's truthfulness and completeness, assuming legal responsibility, and plan no cash dividends or bonus shares - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[3](index=3&type=chunk) - Liu Xiaojun, the company's head, Yu Ziying, the person in charge of accounting, and Yu Ziying, the head of the accounting department, declare that the financial report in this semi-annual report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company names, subsidiaries, associates, and industry concepts like food additives, probiotics, and postbiotics, ensuring accurate understanding - Full company name: Beijing Scitop Bio-tech Co., Ltd., abbreviated as Scitop Bio-tech[10](index=10&type=chunk) - Probiotic definition: According to FAO and WHO, live microorganisms that, when administered in adequate amounts, confer a health benefit on the host[11](index=11&type=chunk) - Postbiotic definition: A preparation of inanimate microorganisms and/or their components that confers a health benefit on the host, with a defined genetic background, including or not including their metabolites[11](index=11&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company's stock abbreviation is Scitop Bio-tech, stock code 300858, listed on the Shenzhen Stock Exchange, with Liu Xiaojun as the legal representative Basic Company Information | Metric | Content | | :--- | :--- | | Stock Abbreviation | Scitop Bio-tech | | Stock Code | 300858 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Liu Xiaojun | [Contact Persons and Information](index=7&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) The company's Board Secretary is Zhang Lingyu, and the Securities Affairs Representative is Xie Ling, both located at Building 1-2, No. 31 Mangniuhe Road, Yanqi Economic Development Zone, Huairou District, Beijing, with phone number 010-69667389 and email zqb@scitop.cn Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhang Lingyu | Building 1-2, No. 31 Mangniuhe Road, Yanqi Economic Development Zone, Huairou District, Beijing | 010-69667389 | 010-69667381 | zqb@scitop.cn | | Securities Affairs Representative | Xie Ling | Building 1-2, No. 31 Mangniuhe Road, Yanqi Economic Development Zone, Huairou District, Beijing | 010-69667389 | 010-69667381 | zqb@scitop.cn | [Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's registered address, office address, website, email, information disclosure and placement location, and registration status remained unchanged during the reporting period, with specific details available in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[15](index=15&type=chunk) - The information disclosure and placement location remained unchanged during the reporting period[16](index=16&type=chunk) - The company's registration status remained unchanged during the reporting period[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2025, the company's operating revenue increased by **18.32%** to **RMB 163.35 million**, but net profit attributable to shareholders decreased by **5.31%** to **RMB 41.21 million**, with non-recurring net profit down **6.67%**. Net cash flow from operating activities significantly decreased by **44.47%**, while total assets and net assets attributable to shareholders slightly increased Key Accounting Data and Financial Indicators for H1 2025 | Metric | Current Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 163,345,625.11 | 138,050,858.07 | 18.32% | | Net Profit Attributable to Shareholders | 41,205,063.04 | 43,514,985.46 | -5.31% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 35,126,939.95 | 37,636,699.24 | -6.67% | | Net Cash Flow from Operating Activities | 27,882,992.28 | 50,213,593.81 | -44.47% | | Basic Earnings Per Share (RMB/share) | 0.16 | 0.17 | -5.88% | | Diluted Earnings Per Share (RMB/share) | 0.16 | 0.17 | -5.88% | | Weighted Average Return on Net Assets | 2.28% | 2.48% | -0.20% | | **End of Current Period** | **End of Prior Year** | **Change from Prior Year-End** | | | Total Assets (RMB) | 1,943,592,311.49 | 1,915,597,694.39 | 1.46% | | Net Assets Attributable to Shareholders (RMB) | 1,791,248,601.12 | 1,789,567,795.89 | 0.09% | [Differences in Accounting Data Under Domestic and International Accounting Standards](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards, overseas accounting standards, and Chinese Accounting Standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[19](index=19&type=chunk) - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[20](index=20&type=chunk) [Non-recurring Gains and Losses and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **RMB 6.08 million**, primarily from government subsidies, fair value changes in financial assets, individual income tax handling fee refunds, and VAT additional deductions Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Government subsidies recognized in current profit or loss (excluding recurring government subsidies) | 4,362,421.62 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and investment gains or losses from disposal | 2,314,032.82 | | Other non-operating income and expenses apart from the above | 9,314.79 | | Other income and expense items that meet the definition of non-recurring gains and losses | 192,396.91 | | Less: Income tax impact | 800,043.05 | | **Total** | **6,078,123.09** | - Other income and expense items that meet the definition of non-recurring gains and losses include individual income tax handling fee refunds of **RMB 54,211.33** and VAT additional deductions of **RMB 138,185.58**[23](index=23&type=chunk)[574](index=574&type=chunk) Management Discussion and Analysis [Principal Businesses Engaged by the Company During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company primarily engages in the R&D, production, and sales of edible probiotic products, animal and plant micro-ecological preparations, and compound food additives, aiming to become the 'No. 1 brand for lactic acid bacteria and probiotics in China'. During the reporting period, there were no significant changes in its main business, with edible probiotic products being the largest and most profitable segment, animal and plant micro-ecological preparations experiencing high growth, and compound food additives maintaining stable scale - The company's main business involves the R&D, production, and sales of edible probiotic products, animal and plant micro-ecological preparations, and compound food additives[25](index=25&type=chunk) - The company's long-term strategic goal is to become the 'No. 1 brand for lactic acid bacteria and probiotics in China'[25](index=25&type=chunk) - During the reporting period, there were no significant changes in the company's main business[25](index=25&type=chunk) [(I) Industry Overview](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The company operates in the food manufacturing industry, specifically in other unlisted food manufacturing (edible probiotic products) and food and feed additive manufacturing (compound food additives and animal and plant micro-ecological preparations). The global probiotic market is steadily growing, with the Asia-Pacific region having the highest consumption, and China showing immense market potential. The animal and plant micro-ecological preparations and compound food additives industries also exhibit trends of green development and technological innovation - The company's industry is food manufacturing (C14), with edible probiotic products classified under C1499, and compound food additives and animal and plant micro-ecological preparations under C1495[26](index=26&type=chunk) - The global probiotic market size was estimated at **USD 61.1 billion** in 2021, projected to reach **USD 91.1 billion** by 2026, with a CAGR of **8.3%**. The Asia-Pacific region accounts for the highest global consumption, approximately **44.4%**[29](index=29&type=chunk) - China's probiotic consumption market has surpassed Italy, ranking second globally, and is growing at an annual rate of **11-12%**[29](index=29&type=chunk) [(II) Company Business Overview](index=13&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E5%86%B5) During the reporting period, the company's operating revenue increased by **18.32%** to **RMB 163.35 million**, but net profit attributable to the parent company decreased by **5.31%** to **RMB 41.21 million**. Edible probiotic products business grew steadily, animal and plant micro-ecological preparations business grew rapidly by **83.12%**, and compound food additives business remained stable. The company actively pursued product innovation, market expansion, participated in national standard setting, published white papers, strategically invested in Qinghe Shixiang to expand the ToC market, established an overseas business unit to explore international markets, upgraded its ERP system, and advanced the construction of fundraising projects Company Operating Performance for H1 2025 | Metric | Amount (RMB 10,000) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 16,334.56 | 18.32% | | Net Profit Attributable to Parent Company Shareholders | 4,120.51 | -5.31% | - The edible probiotic products business has become the company's largest and most profitable core business segment[44](index=44&type=chunk) - Operating revenue from animal and plant micro-ecological preparations business increased by **83.12%** year-on-year, primarily due to capacity release and market recognition[45](index=45&type=chunk) - The company strategically invested **RMB 20 million** in Qinghe Shixiang, holding **7.14%** equity, to expand into the ToC probiotic market[48](index=48&type=chunk) - The company established an overseas business unit to actively explore international markets and participated in the European International Health Food Exhibition[50](index=50&type=chunk) - Phase I civil engineering for the Food Sector R&D and Production Base project is nearing completion, interior decoration is largely finished, and major production equipment installation and debugging are complete, with trial operation expected within 2025[52](index=52&type=chunk) [(III) Company's Main Products and Their Uses](index=14&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E5%85%B6%E7%94%A8%E9%80%94) The company's main products include edible probiotic products (raw bacterial powder and 'Yishiyou' brand consumer products), animal and plant micro-ecological preparations (feed additives, silage preparations, crop planting preparations), and compound food additives (thickeners, thickening emulsifiers). The company possesses a lactic acid bacteria strain resource library of over 50,000 strains, with core strains like Lactobacillus casei Zhang having broad application efficacy - Edible probiotic products include food-grade probiotic raw bacterial powder and the 'Yishiyou' brand series of probiotic consumer products[53](index=53&type=chunk) - The company possesses a strain resource library containing over **50,000** lactic acid bacteria (including probiotics) and has mastered the complete set of technologies for probiotic isolation, screening, evaluation, cultivation, freeze-drying, and preservation[54](index=54&type=chunk) - Animal and plant micro-ecological preparations are primarily applied in animal husbandry (micro-ecological feed additives, silage micro-ecological preparations) and crop cultivation (plant micro-ecological preparations)[57](index=57&type=chunk) - Compound food additives mainly include compound thickeners and compound thickening emulsifiers, used in yogurt, dairy drinks, plant-based protein beverages, baked goods, etc., for thickening, emulsifying, and improving texture[59](index=59&type=chunk) [(IV) Company Business Model](index=16&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company primarily generates profit through the sale of self-produced products and expands into customized probiotic strain development and transfer services. The procurement model is mainly 'production-driven procurement' to ensure food safety. Production for proprietary probiotic consumer products follows market plans, while products for enterprise clients, animal and plant micro-ecological preparations, and compound food additives are 'sales-driven production'. The sales model is primarily direct sales, with proprietary probiotic consumer products adopting a distribution model, and deep R&D collaborations established with leading downstream enterprises - The company primarily generates profit through the sale of self-produced products and conducts technical cooperation businesses such as customized probiotic strain development and transfer[60](index=60&type=chunk) - The procurement model is 'production-driven procurement', prioritizing food safety, with strict supplier management and inspection[61](index=61&type=chunk) - Production for proprietary probiotic consumer products follows market plans, while products for enterprise clients, animal and plant micro-ecological preparations, and compound food additives are 'sales-driven production'[62](index=62&type=chunk) - The sales model is primarily direct sales, with proprietary probiotic consumer products mainly adopting a distribution model (online platforms like Tmall, Xiaohongshu, and offline mother-and-baby stores, pharmacies)[64](index=64&type=chunk) [(V) Key Business Qualifications](index=17&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E8%B5%84%E8%B4%A8) As of June 30, 2025, the company and its subsidiaries hold multiple qualifications including quality management, food safety management, intellectual property management, organic certification, BRC Global Food Safety Standard, HACCP, and GMP, as well as business licenses such as food production permits, feed production permits, and fertilizer registration certificates, comprehensively covering their main businesses and product types - Jinhua Yinhe holds Quality Management System Certification, Food Safety Management System Certification, FSSC 22000 Certificate, Halal Certificate, BRC Global Food Safety Certificate, HACCP Certification, and GMP Certificate[66](index=66&type=chunk) - Neimeng Hemei holds organic certification and multiple fertilizer registration certificates[66](index=66&type=chunk) - Scitop Micro-ecology holds feed production licenses, feed additive production licenses, and multiple fertilizer registration certificates[67](index=67&type=chunk) - The company and its subsidiaries have obtained all necessary qualifications to conduct business, fully covering the types, scope, and operating periods of their main businesses and all products[67](index=67&type=chunk) [Analysis of Core Competencies](index=19&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness lies in its strong R&D and technological advantages, including a rich strain resource library, core strain functional development, clinical evidence data, and the formulation of multiple industry standards. The company holds **106** invention patents and has built Asia's largest commercial lactic acid bacteria strain resource library. R&D is organically integrated with marketing, establishing long-term partnerships with major clients like Mengniu Dairy and Bright Dairy, while ensuring product quality and efficiency through a stringent food safety and quality management system and advanced production processes and equipment - As of June 30, 2025, the company has a professional, multi-disciplinary R&D team of **67** personnel, including **28** with master's or doctoral degrees[75](index=75&type=chunk) - The company has led and participated in the formulation of multiple group and national standards for the probiotic industry, such as 'Probiotic Foods' and 'General Technical Specification for Food Production Traceability System'[76](index=76&type=chunk) - The company holds **106** invention patents (including **2** foreign patents), **30** utility model patents, and **1** design patent related to probiotics, and has built Asia's largest commercial lactic acid bacteria strain resource library, containing over **50,000** lactic acid bacteria strains[78](index=78&type=chunk) - The company has established long-term and stable strategic partnerships with leading domestic enterprises such as Mengniu Dairy, Bright Dairy, Wandashan Dairy, New Hope Dairy, Jiangzhong Pharmaceutical, Shanghai Pharma Xinyi, and Shengmu Gaoke[80](index=80&type=chunk) - The company has passed certifications such as ISO 9001, ISO 22000, Halal, and BRC Global Food Safety Standard, and possesses advanced production processes and equipment, including bacterial cell enrichment and concentration control technology, and low-temperature raw granule packaging technology[81](index=81&type=chunk)[83](index=83&type=chunk) [Main Business Analysis](index=21&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue increased by **18.32%**, but operating costs increased by **33.41%**, primarily due to increased depreciation and amortization from the capitalization of the animal and plant micro-ecological preparations production base. Net profit attributable to the parent company decreased by **5.31%**. Edible probiotic products remained the main source of revenue, animal and plant micro-ecological preparations revenue grew by **83.12%**, and compound food additives revenue remained largely flat. Selling expenses decreased by **13.14%** year-on-year, mainly due to reduced advertising and promotional expenses Year-on-Year Changes in Key Financial Data | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 163,345,625.11 | 138,050,858.07 | 18.32% | | | Operating Cost | 82,916,596.70 | 62,151,307.27 | 33.41% | Primarily due to increased depreciation and amortization from the capitalization of the animal and plant micro-ecological preparations production base | | Selling Expenses | 13,832,941.70 | 15,925,717.01 | -13.14% | | | Income Tax Expense | 8,676,597.42 | 6,562,520.14 | 32.21% | Primarily due to deductible temporary differences from deferred income tax | | Net Cash Flow from Operating Activities | 27,882,992.28 | 50,213,593.81 | -44.47% | Primarily due to increased procurement payments in the current period | | Net Cash Flow from Investing Activities | -70,299,317.05 | -122,842,820.41 | 42.77% | Primarily due to wealth management investments | | Net Cash Flow from Financing Activities | -658,865.00 | -26,282,505.96 | 97.49% | Primarily due to dividend distribution in the prior period | | Credit Impairment Loss (Losses indicated by "-") | -377,431.90 | 1,850,804.34 | -120.39% | Primarily due to increased customer receivables from higher sales in the current period | By Product or Service | Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Edible Probiotic Products | 116,016,938.77 | 46,378,075.56 | 60.02% | 13.85% | 25.49% | -3.72% | | Animal and Plant Micro-ecological Preparations | 27,709,791.52 | 22,521,202.11 | 18.72% | 83.12% | 113.36% | -11.53% | | Compound Food Additives | 18,204,152.55 | 13,693,335.86 | 24.78% | -0.49% | 0.13% | -0.47% | - Selling expenses decreased by **13.14%** year-on-year, primarily due to a **28.39%** decrease in advertising and promotional expenses[90](index=90&type=chunk) [Non-Principal Business Analysis](index=22&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's non-principal business income primarily stemmed from wealth management product gains and government subsidies. Investment income was **RMB 1.30 million**, fair value change gains were **RMB 0.96 million**, and other income was **RMB 4.55 million**. Wealth management product gains and fair value change gains have some sustainability, while non-operating income and government subsidies do not Composition of Non-Principal Business Income | Item | Amount (RMB) | Percentage of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,298,927.79 | 2.60% | Primarily from wealth management product gains | Has some sustainability | | Fair Value Change Gains/Losses | 956,219.16 | 1.92% | Primarily due to fair value changes in unexpired bank wealth management products | Has some sustainability | | Other Income | 4,554,818.53 | 9.13% | Primarily from government subsidies | No | [Analysis of Assets and Liabilities](index=22&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets were **RMB 1.94 billion**, an increase of **1.46%** from the end of the previous year. Construction in progress significantly increased by **6.40%**, mainly due to investment in the Food Sector R&D and Production Base project. Monetary funds and trading financial assets decreased, while non-current assets due within one year and dividends payable significantly increased. Total liabilities amounted to **RMB 0.15 billion**, a **20.88%** increase from the end of the previous year Significant Changes in Asset Composition | Item | Amount at End of Current Period (RMB) | Percentage of Total Assets | Amount at End of Prior Year (RMB) | Percentage of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 62,560,187.59 | 3.22% | 108,635,367.47 | 5.67% | -2.45% | Primarily due to cash management and implementation of fundraising projects during the current period | | Construction in Progress | 298,862,799.55 | 15.38% | 172,069,465.90 | 8.98% | 6.40% | Primarily due to increased investment in the Food Sector R&D and Production Base project's construction in progress during the current period | | Trading Financial Assets | 201,319,515.59 | 10.36% | 296,731,399.24 | 15.49% | -5.13% | Primarily due to rolling purchases of bank wealth management products during the current period | | Non-current Assets Due Within One Year | 611,792,841.34 | 31.48% | 425,496,669.38 | 22.21% | 9.27% | Primarily due to an increase in bank time deposits due within one year | | Other Non-current Assets | 163,655,281.42 | 8.42% | 350,715,598.55 | 18.31% | -9.89% | Primarily due to a decrease in bank time deposits exceeding one year and prepaid engineering款项 | | Dividends Payable | 39,524,267.70 | 2.03% | 0 | 0 | 2.03% | Primarily due to accrued but unpaid dividend payments | - As of June 30, 2025, the company's restricted monetary funds were deposits, amounting to **RMB 50,000.00**[97](index=97&type=chunk) [Analysis of Investment Status](index=24&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's investment amounted to **RMB 676 million**, a year-on-year decrease of **50.34%**. The main non-equity investment was the Food Sector R&D and Production Base project, with **RMB 143 million** invested in the current period, cumulative investment of **RMB 420 million**, and a progress of **53.92%**, though the project is slightly behind schedule, with the estimated completion date adjusted to December 31, 2026. The micro-ecological preparations production base project's returns did not meet expectations. The company's entrusted wealth management balance was **RMB 853 million**, comprising **RMB 509 million** in own funds and **RMB 344 million** in raised funds Investment Amount During the Reporting Period | Metric | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Investment Amount During Reporting Period | 675,793,345.02 | -50.34% | | Investment Amount in Prior Period | 1,360,888,125.31 | | Significant Non-Equity Investment Status | Project Name | Investment Method | Amount Invested in Current Period (RMB) | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Investment Progress as of End of Reporting Period | Estimated Date of Reaching Usable Condition | | :--- | :--- | :--- | :--- | :--- | :--- | | Food Sector R&D and Production Base Project | Self-built | 142,939,004.89 | 419,835,629.92 | 53.92% | 2026年12月31日 | - The Food Sector R&D and Production Base project is slightly behind schedule, with the estimated date of reaching usable condition adjusted from June 30, 2025, to December 31, 2026[109](index=109&type=chunk)[114](index=114&type=chunk) - The micro-ecological preparations production base project's returns did not meet expectations, primarily due to slowing product demand caused by operational pressure in the animal husbandry industry[109](index=109&type=chunk)[114](index=114&type=chunk) Entrusted Wealth Management Status | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (RMB 10,000) | Unexpired Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 50,882.00 | 50,882.00 | | Bank Wealth Management Products | Raised Funds | 52,426.29 | 34,443.46 | | **Total** | | **103,308.29** | **85,325.46** | [Significant Asset and Equity Sales](index=33&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not experience any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[119](index=119&type=chunk) - The company did not sell significant equity during the reporting period[120](index=120&type=chunk) [Analysis of Major Holding and Associated Companies](index=33&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Jinhua Yinhe, a wholly-owned subsidiary, primarily engages in edible probiotic products, with semi-annual operating revenue increasing by **9.24%** to **RMB 104 million**, and net profit decreasing by **4.86%** to **RMB 37.56 million**. Neimeng Hemei, mainly involved in animal and plant micro-ecological preparations, saw its semi-annual operating revenue grow by **28.44%** to **RMB 18.05 million**, and net profit surge by **803.61%** to **RMB 5.89 million** Financial Performance of Major Subsidiaries | Company Name | Company Type | Main Business | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jinhua Yinhe | Subsidiary | Edible Probiotic Products | 103,767,356.42 | 43,141,212.86 | 37,560,395.77 | | Neimeng Hemei | Subsidiary | Animal and Plant Micro-ecological Preparations | 18,054,534.22 | 7,800,300.61 | 5,888,996.81 | - Jinhua Yinhe's operating revenue for H1 2025 increased by **9.24%** year-on-year, while net profit decreased by **4.86%**[121](index=121&type=chunk) - Neimeng Hemei's operating revenue for H1 2025 increased by **28.44%** year-on-year, and net profit increased by **803.61%**[122](index=122&type=chunk) [Status of Structured Entities Controlled by the Company](index=33&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[123](index=123&type=chunk) [Risks Faced by the Company and Countermeasures](index=34&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces market competition, downstream market fluctuations, core technology leakage, profit decline due to increased fixed asset depreciation, and management risks arising from fundraising project construction and company expansion. The company plans to address these risks by strengthening product innovation, market promotion, technological leadership, prudent investment planning, enhanced internal management, and talent development - The company faces intense market competition across its three major product series: edible probiotic products, animal and plant micro-ecological preparations, and compound food additives[124](index=124&type=chunk)[125](index=125&type=chunk) - Changes in consumer preferences, product upgrades in the downstream fast-moving consumer goods industry, and cyclical fluctuations in animal husbandry may lead to volatility in the company's product sales[127](index=127&type=chunk) - Leakage of core technologies, product formulations, and critical data could result in the company losing its technological advantage and market opportunities[129](index=129&type=chunk) - A significant increase in fixed assets after the fundraising projects become operational will lead to a corresponding increase in depreciation expenses, potentially resulting in a decline in net profit[130](index=130&type=chunk) - The company will address risks by strengthening product innovation, market promotion, technological leadership, prudent investment planning, enhanced internal management, and talent development[126](index=126&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=35&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) During the reporting period, on May 8, 2025, the company held its 2024 annual performance briefing via the 'Cloud Interview' section of the Shenzhen Stock Exchange's 'Interactive Easy' platform, engaging in online communication with all investors - On May 8, 2025, the company held its 2024 annual performance briefing via the 'Cloud Interview' section of the Shenzhen Stock Exchange's 'Interactive Easy' platform[134](index=134&type=chunk) - The performance briefing was conducted online remotely, targeting all investors[134](index=134&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=35&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 not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[135](index=135&type=chunk) - The company has not disclosed a valuation enhancement plan[135](index=135&type=chunk) [Implementation of the "Dual Improvement in Quality and Returns" Action Plan](index=35&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan - The company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[135](index=135&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=36&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, Ma Jie was elected as a company director due to the resignation of a former director, with an appointment date of January 15, 2025 Changes in Directors | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Ma Jie | Director | Elected | 2025年01月15日 | Former director resigned, new director elected | [Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period](index=36&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans 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[138](index=138&type=chunk) [Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=36&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company launched its 2024 Restricted Stock Incentive Plan in February 2024, with an initial grant of **2.6 million** restricted shares to **17** incentive recipients in May 2024. During the reporting period, the company adjusted the grant price twice and disclosed the expiration of reserved equity in April 2025, invalidating some granted but unvested restricted shares - On February 2, 2024, the company reviewed and approved the '2024 Restricted Stock Incentive Plan (Draft)' and its summary[139](index=139&type=chunk) - On May 15, 2024, the company initially granted **2.6 million** restricted shares to **17** incentive recipients at a grant price of **RMB 13.00/share**[141](index=141&type=chunk) - On August 19, 2024, the grant price was adjusted to **RMB 12.85/share**; on August 18, 2025, the grant price was adjusted to **RMB 12.70/share**[141](index=141&type=chunk)[143](index=143&type=chunk) - On April 9, 2025, the company disclosed that the **400,000** restricted shares reserved under the 2024 Restricted Stock Incentive Plan had expired[141](index=141&type=chunk) [Environmental Information Disclosure](index=37&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[144](index=144&type=chunk) [Social Responsibility](index=37&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 actively fulfills its social responsibilities, committed to building China's national probiotic industry system, establishing Asia's largest commercial lactic acid bacteria strain resource library, participating in industry standard formulation, and maintaining industry norms. The company strictly protects the rights and interests of shareholders, investors, employees, suppliers, customers, and consumers, and prioritizes environmental protection and sustainable development - Since 2016, the company has collaborated with various scientific research institutions to establish the 'Chinese Gut Microbiota Gene Bank'. As of June 30, 2025, the company's lactic acid bacteria strain resource library preserves over **50,000** strains, making it Asia's largest commercial lactic acid bacteria strain resource library[144](index=144&type=chunk) - The group standards 'Probiotic Foods' and 'Lactic Acid Bacteria Postbiotics in Probiotic Products', led and participated in by the company, have been officially released and implemented, promoting high-quality industry development[144](index=144&type=chunk) - The company strictly fulfills its information disclosure obligations, establishes diversified investor communication mechanisms, and protects the rights and interests of shareholders and investors[145](index=145&type=chunk) - The company strictly adheres to the 'Labor Law', legally pays social insurance and housing provident fund for employees, improves compensation and incentive mechanisms, and protects employees' legitimate rights and interests[146](index=146&type=chunk) - The company upholds honesty and trustworthiness, establishing win-win cooperative relationships with suppliers and customers, and protecting their legitimate rights and interests[147](index=147&type=chunk) - The company considers environmental protection a crucial part of its sustainable development strategy, strictly implementing environmental laws and regulations[148](index=148&type=chunk) Significant Matters [Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, and Those Overdue and Unfulfilled as of the End of the Reporting Period](index=38&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, the company and relevant incentive recipients fulfilled their commitments under the equity incentive plan on time, with no overdue or unfulfilled commitments - The company and all directors and supervisors guarantee the truthfulness, accuracy, and completeness of the equity incentive plan and its summary, and assume legal responsibility, with commitments fulfilled by February 6, 2025[150](index=150&type=chunk) - All incentive recipients committed to returning all benefits if information disclosure documents contain false records, misleading statements, or major omissions leading to non-compliance with grant or exercise arrangements, with commitments fulfilled by February 6, 2025[150](index=150&type=chunk)[151](index=151&type=chunk) - The company committed not to provide loans or any other form of financial assistance to incentive recipients for acquiring restricted shares under this incentive plan, with commitments fulfilled by February 6, 2025[150](index=150&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company](index=39&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) During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[152](index=152&type=chunk) [Irregular External Guarantees](index=39&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[153](index=153&type=chunk) [Appointment and Dismissal of Accounting Firms](index=39&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 was unaudited - The company's semi-annual financial report was unaudited[154](index=154&type=chunk)[196](index=196&type=chunk) [Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the "Non-Standard Audit Report" for the Current Period](index=39&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%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%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[155](index=155&type=chunk) [Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=39&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 company had no explanations regarding a non-standard audit report for the previous year during the reporting period - The company had no explanations regarding a non-standard audit report for the previous year during the reporting period[155](index=155&type=chunk) [Bankruptcy and Reorganization Matters](index=39&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 had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[155](index=155&type=chunk) [Litigation Matters](index=40&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no significant litigation or arbitration matters. Other litigation matters include a case where a company subsidiary was the plaintiff, with an involved amount of **RMB 0.70 million**. The first-instance judgment has become effective and is currently under enforcement, with no significant impact on the company - The company had no significant litigation or arbitration matters during the current reporting period[156](index=156&type=chunk) Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Whether a Provision is Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | Enforcement Status of Litigation (Arbitration) Judgment | | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of other litigation not meeting the disclosure threshold for significant litigation (company subsidiary as plaintiff) | 69.53 | No | First-instance judgment has become effective | No significant impact | Under compulsory enforcement | [Penalties and Rectification](index=40&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 had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[157](index=157&type=chunk) [Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=40&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) During the reporting period, there were no integrity issues concerning the company, its controlling shareholders, or actual controllers - During the reporting period, there were no integrity issues concerning the company, its controlling shareholders, or actual controllers[158](index=158&type=chunk) [Significant Related Party Transactions](index=40&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in ordinary related party transactions with Chief Scientist Professor Zhang Heping, receiving **RMB 0.60 million** in technical consulting fees, which did not exceed the approved limit of **RMB 1.50 million**. There were minor related party transactions for commodity procurement and sales with Zhongfeng Bio. The company had no related party transactions involving asset or equity acquisition/disposal, joint external investments, or related party creditor-debtor relationships during the reporting period Ordinary Related Party Transactions | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount Incurred in Current Period (RMB 10,000) | Approved Transaction Limit (RMB 10,000) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Heping | Acceptance of services provided by related party | Technical consulting fees | 60 | 150 | No | | Zhongfeng Bio | Purchase of goods | Purchase of goods | 1.04 | | No | | Zhongfeng Bio | Sale of goods/Provision of services | Edible probiotic products | 0.21 | | | - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[160](index=160&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[161](index=161&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[162](index=162&type=chunk) [Significant Contracts and Their Performance](index=42&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company had no trusteeship, contracting, or significant guarantee situations. Lease matters are detailed in the financial report notes. The company signed the 'Integrated R&D and Pilot Production Base Project Investment Contract', constructing a food sector R&D and production base and a micro-ecological preparations production base, with the project ongoing. A probiotic new drug technology development (cooperation) contract was signed with Jiangzhong Pharmaceutical, with the project progressing orderly but the completion date extended. A probiotic licensing agreement was signed with Centro Sperimentale del Latte S.r.l., which is being performed normally - The company had no trusteeship or contracting situations during the reporting period[166](index=166&type=chunk)[167](index=167&type=chunk) - The company had no significant guarantee situations during the reporting period[169](index=169&type=chunk) - The company signed the 'Integrated R&D and Pilot Production Base Project Investment Contract' with the Hohhot Shengle Modern Service Industry Cluster Management Committee, constructing a food sector R&D and production base and a micro-ecological preparations production base, with the project ongoing[173](index=173&type=chunk) - The company signed a 'Technology Development (Cooperation) Contract' with Jiangzhong Pharmaceutical to jointly develop a probiotic new drug project for treating Irritable Bowel Syndrome and Inflammatory Bowel Disease. Due to research complexity, the completion date has been extended, and cooperation continues[174](index=174&type=chunk) - The company signed a probiotic licensing agreement with Centro Sperimentale del Latte S.r.l., authorizing it to exclusively produce, market, and sell the company's Lactobacillus plantarum P-8 strain in Europe and North America, with the agreement being performed normally[172](index=172&type=chunk) [Explanation of Other Significant Matters](index=45&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 disclosed announcements regarding the by-election of non-independent directors, the 2024 Restricted Stock Incentive Plan, the 2024 annual profit distribution plan, and the adjustment of fundraising project investment scale, structure, and estimated completion time, as well as the permanent replenishment of working capital with surplus raised funds - The company disclosed announcements regarding the by-election of non-independent directors[175](index=175&type=chunk) - The company disclosed announcements regarding the expiration of reserved equity under the 2024 Restricted Stock Incentive Plan and the invalidation of some granted but unvested restricted shares[176](index=176&type=chunk) - The company disclosed announcements regarding the 2024 annual profit distribution plan[177](index=177&type=chunk) - The company disclosed announcements regarding the adjustment of fundraising project investment scale, structure, and estimated completion time, and the permanent replenishment of working capital with surplus raised funds[178](index=178&type=chunk) [Significant Matters of Company Subsidiaries](index=45&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 had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[179](index=179&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=46&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's restricted shares decreased by **4,211,123** shares, while unrestricted shares increased by **4,211,123** shares, with total share capital remaining unchanged. The primary reason was the recalculation of lock-up for shares held by former director Mr. Lin Wei, leading to the release of some restricted shares. As of the end of the period, total restricted shares amounted to **69,730,541** shares, accounting for **26.46%** of the total share capital Share Change Status | Share Type | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 73,941,664 | 28.06% | -4,211,123 | 69,730,541 | 26.46% | | II. Unrestricted Shares | 189,553,454 | 71.94% | 4,211,123 | 193,764,577 | 73.54% | | III. Total Shares | 263,495,118 | 100.00% | 0 | 263,495,118 | 100.00% | - The main reason for the share change was the recalculation of lock-up for shares held by former director Mr. Lin Wei, resulting in a decrease of **4,211,123** locked shares[183](index=183&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Tiansong | 39,404,116 | 0 | 0 | 39,404,116 | Restricted shares after IPO, senior management lock-up shares | | Lin Wei | 16,844,490 | 4,211,123 | 0 | 12,633,367 | Senior management lock-up shares (resigned, still subject to restriction rules) | [Securities Issuance and Listing](index=48&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[186](index=186&type=chunk) [Number of Shareholders and Shareholding Status](index=48&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At the end of the reporting period, the total number of common shareholders was **16,170**. Among the top ten shareholders, Sun Tiansong held **19.94%** as the largest shareholder, and Ningbo Shunyi Venture Capital Partnership (Limited Partnership) held **9.08%**. The company is unaware of any related party relationships or concerted actions among the shareholders - At the end of the reporting period, the total number of common shareholders was **16,170**[187](index=187&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Tiansong | Domestic Natural Person | 19.94% | 52,538,822 | 39,404,116 | 13,134,706 | | Ningbo Shunyi Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 9.08% | 23,925,966 | 0 | 23,925,966 | | Lin Wei | Domestic Natural Person | 6.39% | 16,844,490 | 12,633,367 | 4,211,123 | | Qiao Xiangqian | Domestic Natural Person | 4.51% | 11,888,100 | 8,916,075 | 2,972,025 | | Liu Xiaojun | Domestic Natural Person | 4.37% | 11,510,495 | 8,632,871 | 2,877,624 | | Zhang Liebing | Domestic Natural Person | 4.18% | 11,004,613 | 0 | 11,004,613 | - The company is unaware of any related party relationships among the aforementioned shareholders, nor whether they are concerted parties[188](index=188&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=49&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) During the reporting period, the shareholdings of some directors, supervisors, and senior management changed, with Ma Jie, Chen Jie, and Qimuge Sudu reducing their shares, while others' holdings remained unchanged. Some senior executives hold granted restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | Number of Restricted Shares Granted at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Tiansong | Chairman | Current | 52,538,822 | 0 | 0 | 52,538,822 | 320,000 | | Liu Xiaojun | Director, General Manager | Current | 11,510,495 | 0 | 0 | 11,510,495 | 320,000 | | Qiao Xiangqian | Director, Deputy General Manager | Current | 11,888,100 | 0 | 0 | 11,888,100 | 160,000 | | Ma Jie | Director | Current | 1,656,720 | 0 | 162,000 | 1,494,720 | 96,000 | | Chen Jie | Chairman of Supervisory Board | Current | 1,323,000 | 0 | 160,697 | 1,162,303 | 0 | | Yu Ziying | Deputy General Manager, CFO | Current | 27,000 | 0 | 0 | 27,000 | 160,000 | | Zhang Lingyu | Deputy General Manager, Board Secretary | Current | 6,121,125 | 0 | 0 | 6,121,125 | 128,000 | | Qimuge Sudu | Deputy General Manager | Current | 1,393,743 | 0 | 162,000 | 1,231,743 | 96,000 | | Zhang Jianjun | Deputy General Manager | Current | 2,837,429 | 0 | 0 | 2,837,429 | 128,000 | | Bao Weichen | Deputy General Manager | Current | 15,750 | 0 | 0 | 15,750 | 160,000 | | **Total** | | | **89,312,184** | **0** | **484,697** | **88,827,487** | **1,568,000** | [Changes in Controlling Shareholder or Actual Controller](index=50&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) Neither the company's controlling shareholder nor its actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[191](index=191&type=chunk) - The company's actual controller did not change during the reporting period[191](index=191&type=chunk) [Preferred Share Information](index=50&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[192](index=192&type=chunk) Bond Information [Bond Information](index=51

2025 年半年度报告 （公告编号：2025-042） 深圳市农产品集团股份有限公司 2025 年半年度报告全文 2025 年 8 月 深圳市农产品集团股份有限公司 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。 公司法定代表人黄伟先生、总裁张磊先生、财务总监向自力先生、主管 会计工作负责人林冠平先生及会计机构负责人郭矿先生声明：保证本半年度 报告中财务报告的真实、准确、完整。 审议本报告的董事会会议为第九届董事会第二十八次会议，董事王慧敏 女士因公未出席本次会议，委托董事向自力先生代为出席并表决；其余董事 均以现场或通讯方式出席了审议本次半年报的董事会会议。 公司 2025 年半年度计划不派发现金红利，不送红股，不以公积金转增股 本。 公司农产品批发市场业务面临的机遇和挑战以及农产品批发市场行业和 政策环境变化等内容详见本报告"第三节 管理层讨论与分析"。本报告中涉 及未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请 投资者理性 ...

[Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions of key terms used throughout the report [Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's fundamental information and a summary of its key financial performance indicators [Basic Company Information](index=4&type=section&id=I.%20Company%20Information) This chapter provides basic information about Guizhou Chitianhua Co., Ltd., including its name, stock code, legal representative, contact details, and registered and office addresses, noting a name and stock abbreviation change in 2023 Basic Company Information | Item | Information | | :--- | :--- | | **Company Chinese Name** | Guizhou Chitianhua Co., Ltd. | | **Company Chinese Abbreviation** | Chitianhua | | **Stock Code** | 600227 | | **Stock Abbreviation Before Change** | Shengjitang | | **Legal Representative** | Ding Linhong | | **Registered Address** | Pharmaceutical Park, Qingzhen City, Guiyang, Guizhou Province | | **Office Address** | Chitianhua Building, No. 28 Yangguan Avenue, Guanshanhu District, Guiyang, Guizhou Province | [Key Accounting Data and Financial Indicators](index=5&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue increased by 5.86% year-on-year, but net profit attributable to shareholders expanded its loss, while net cash flow from operating activities significantly grew by 74.67%, and total assets and net assets slightly decreased from the beginning of the period Main Accounting Data | Main Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Million Yuan) | 1,129.55 | 1,067.05 | 5.86 | | Net Profit Attributable to Shareholders (Million Yuan) | -48.95 | -36.74 | Not Applicable | | Net Cash Flow from Operating Activities (Million Yuan) | 170.91 | 97.84 | 74.67 | | **Asset Status** | **End of Current Period** | **End of Prior Year** | **Period-end vs. Period-start Change (%)** | | Total Assets (Million Yuan) | 4,626.12 | 4,835.57 | -4.33 | | Net Assets Attributable to Shareholders (Million Yuan) | 2,501.22 | 2,544.80 | -1.71 | Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.0290 | -0.0217 | Not Applicable | | Weighted Average Return on Net Assets (%) | -1.94 | -1.38 | Decreased by 0.56 percentage points | [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to 1.12 million Yuan, primarily from government subsidies, partially offset by other net non-operating income and expenses Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (Million Yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 1.97 | | Gains or losses from debt restructuring | -0.04 | | Other non-operating income and expenses apart from the above | -0.94 | | Other income and loss items meeting the definition of non-recurring gains and losses | 0.12 | | **Total** | **1.12** | [Management Discussion and Analysis](index=7&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's operational performance, financial condition, and future outlook [Industry and Main Business Overview](index=7&type=section&id=I.%20Description%20of%20the%20Company's%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company's main businesses span three segments: chemicals, medical services, and coal, with core products including urea and methanol in chemicals, specialized oncology hospital services in medical, and anthracite and thermal coal mining and sales in coal, detailing each segment's products, operating models, and market conditions - The company primarily operates in three major businesses: - **Chemical Business**: Wholly-owned subsidiary Tongzi Chemical, with main products including urea, methanol, and compound fertilizers - **Medical Services Business**: Wholly-owned subsidiary Daqin Hospital, a tertiary specialized oncology hospital - **Coal Business**: Wholly-owned subsidiary Anjia Mining, responsible for coal mining and sales at Huaqiu No. 2 Mine[26](index=26&type=chunk) - Operating models for each business segment: - **Chemicals**: Raw material coal purchased with annual volume lock and monthly pricing; continuous production with annual overhauls; sales primarily through distributors, with methanol also direct sales - **Medical**: Procurement of drugs, consumables, and other materials based on demand plans, through invitation for bids, competitive negotiations, and price inquiries; services provided under the philosophy of 'specialized disease, specialized department, specialized treatment' - **Coal**: Utilizes underground mining and comprehensive mining technology; sales channels primarily Tongzi Chemical and Tongzi Power Plant, with pricing based on market rates[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - In the first half of 2025, domestic urea prices initially rose then fell, the compound fertilizer market showed cost-driven increases, and methanol prices generally exhibited a trend of 'initial rise, then fall, followed by recovery'[32](index=32&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company achieved operating revenue of 1.13 billion Yuan, a 5.86% year-on-year increase, while net profit attributable to the parent company was -48.95 million Yuan, with losses expanding year-on-year, driven by increased chemical product sales and rising medical service volumes, though overall net profit declined due to continued losses in medical and coal businesses despite increased chemical profitability Business Segment Performance | Business Segment | Operating Revenue (Million Yuan) | YoY Change | Total Profit (Million Yuan) | YoY Change | Operational Highlights | | :--- | :--- | :--- | :--- | :--- | :--- | | **Chemical Business** | 1,038.82 | +2.59% | 101.64 | +11.14% | Increased urea and methanol production and sales, decreased raw coal prices | | **Medical Services Business** | 68.36 | +52.61% | -67.49 | Loss reduced by 3.72 million Yuan | Steady increase in business scale, oncology patients account for 70% | | **Coal Business** | 21.31 | +190.70% | -65.46 | (Loss) | Significant increase in raw coal production and sales, but still loss-making due to falling market prices and costs | - Tongzi Chemical improved production efficiency and cost control through technical upgrades, reducing standard coal consumption per ton of ammonia by **100 kg/t** and power consumption by **55.09 kWh/t** year-on-year[45](index=45&type=chunk) - Daqin Hospital rapidly developed its business through deepened community collaboration, introduction of cutting-edge technologies (such as the Yttrium-90 assistance program), and establishment of an internet hospital, with oncology department revenue reaching **29.57 million Yuan**[46](index=46&type=chunk) - Anjia Mining advanced safety production standardization and updated comprehensive mining equipment, leading to a **445.38%** year-on-year increase in output, but annual plan completion was below expectations due to gas management and policy-related shutdowns[47](index=47&type=chunk)[49](index=49&type=chunk) [Analysis of Core Competencies](index=13&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies stem from unique advantages across its three business segments: strong brand, channels, and upstream/downstream integration in chemicals; a top-tier expert team and advanced diagnostic equipment in medical services; and abundant resource reserves, superior geographical location, and high mechanization levels in coal - **Chemical Business**: - **Brand and Channels**: 'Chi' brand urea holds a high market share in Guizhou with strong brand loyalty - **Technology and Location**: Utilizes world-leading technology for high product quality; strategically located at a transportation hub, offering significant logistics advantages - **Upstream and Downstream Integration**: Anjia Mining can supply fuel coal, reducing production costs - **R&D Innovation**: Obtained **8** utility model patent authorizations during the reporting period[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - **Medical Services Business**: - **Expert Team**: Comprises over **50** oncology diagnosis and treatment experts from Beijing, Huaxi, and other regions - **Diagnostic Equipment**: Equipped with nearly **300 million Yuan** worth of international top-tier equipment, such as CyberKnife M6 and PET-CT - **Technological Leadership**: Approved as the first in Guizhou Province for the Yttrium-90 microsphere precision interventional therapy project, filling a provincial gap[53](index=53&type=chunk)[54](index=54&type=chunk) - **Coal Business**: - **Resources and Synergy**: Huaqiu No. 2 Mine boasts abundant coal reserves and excellent coal quality, forming significant synergistic effects with the company's chemical and power plants - **Geographical Location**: Proximate to major transportation lines, facilitating convenient transport and effectively reducing logistics costs - **Production Efficiency**: Achieved **100%** mechanization coverage in mining and excavation, ensuring safe and efficient production[54](index=54&type=chunk)[55](index=55&type=chunk) [Financial Analysis of Key Operating Conditions](index=14&type=section&id=IV.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) This chapter provides an in-depth financial analysis of the company's operating conditions, noting a synchronous increase in operating revenue and costs, an 88% surge in selling expenses due to hospital marketing, significant reductions in prepayments and construction in progress, and a detailed discussion of risks faced by each business segment along with corresponding countermeasures [Analysis of Financial Statement Account Changes](index=14&type=section&id=1.%20Analysis%20Table%20of%20Changes%20in%20Financial%20Statement%20Accounts%20Related%20to%20Main%20Business%20Analysis) During the reporting period, operating revenue and costs grew largely in sync, selling expenses surged by 87.99% year-on-year primarily due to increased marketing costs for Daqin Hospital and power coal subsidies for Anjia Mining, R&D expenses decreased by 31.32% due to reduced energy costs in chemical R&D, and net cash flow from operating activities increased by 74.67% year-on-year, mainly driven by higher sales collections Financial Statement Account Changes | Account | Current Period Amount (Million Yuan) | Prior Period Amount (Million Yuan) | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,129.55 | 1,067.05 | 5.86 | Increased methanol and coal production/sales and hospital patient visits | | Selling Expenses | 15.64 | 8.32 | 87.99 | Increased marketing expenses for Daqin Hospital and power coal subsidies for Anjia Mining | | R&D Expenses | 22.96 | 33.43 | -31.32 | Reduced energy costs consumed in chemical R&D | | Net Cash Flow from Operating Activities | 170.91 | 97.84 | 74.67 | Increased cash received from sales of goods and provision of services | [Analysis of Assets and Liabilities](index=15&type=section&id=(II)%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, the company's total assets were 4.63 billion Yuan, a 4.33% decrease from the beginning of the period, with key changes including a 49.36% reduction in prepayments due to decreased coal prepayments, an 88.07% significant decrease in construction in progress due to the capitalization of hospital staff dormitories, and a 29.25% increase in short-term borrowings due to increased financial institution loans Assets and Liabilities Changes | Item Name | Current Period End Amount (Million Yuan) | Prior Year End Amount (Million Yuan) | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Prepayments | 74.54 | 147.20 | -49.36 | Decrease in prepaid coal purchase payments | | Construction in Progress | 9.17 | 76.88 | -88.07 | Capitalization of Daqin Hospital staff dormitories | | Short-term Borrowings | 568.96 | 440.19 | 29.25 | Increase in financial institution borrowings | | Contract Liabilities | 101.70 | 170.02 | -40.18 | Decrease in balance of advances from customers | [Analysis of Major Holding and Participating Companies](index=18&type=section&id=(V)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, core subsidiary Tongzi Chemical achieved a net profit of 102 million Yuan, serving as the company's primary profit source, while Daqin Hospital and Anjia Mining remained in a loss-making state, with net losses of 67.49 million Yuan and 63.62 million Yuan respectively, dragging down the company's overall performance Major Holding and Participating Companies Performance | Company Name | Main Business | Total Assets (Million Yuan) | Net Assets (Million Yuan) | Operating Revenue (Million Yuan) | Net Profit (Million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Tongzi Chemical** | Chemical Products | 2,738.25 | 1,643.72 | 1,038.82 | 101.63 | | **Daqin Hospital** | Medical Services | 1,131.70 | 317.20 | 68.36 | -67.49 | | **Anjia Mining** | Coal Mining | 1,061.64 | -141.10 | 21.31 | -63.62 | [Risk Analysis](index=19&type=section&id=(I)%20Potential%20Risks) The company faces multiple risks across its three business segments: chemicals, medical, and coal, with chemical industry risks including raw material supply, product market fluctuations, and environmental regulation; medical industry risks encompassing policy, talent, and competition; and coal industry risks involving industry oversight and safety/environmental production, for which the company has developed corresponding countermeasures - **Chemical Industry Risks**: - Raw coal supply and price fluctuation risks - Product market price downturn risks - Strengthened environmental regulation and 'dual carbon' policy risks[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - **Medical Services Industry Risks**: - Medical policy change risks - Risk of high-level medical talent loss and recruitment difficulty - Medical quality and technology risks, and intensified market competition risks[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - **Coal Industry Risks**: - Tightening industry regulation, potentially facing production halts for rectification - Safety and environmental production risks, such as gas exceedance or outburst risks[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Corporate Governance, Environment, and Society](index=22&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details the company's governance structure, including personnel changes, and outlines its commitment to environmental protection and social responsibility initiatives [Corporate Governance and Social Responsibility](index=22&type=section&id=I.%20Changes%20in%20the%20Company's%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company saw a change in supervisors with Ms. Yang Yang's resignation and Mr. Cai Zhanwei's election as the new supervisor, with no profit distribution or capital reserve capitalization plan for the half-year, while actively engaging in rural revitalization and other public welfare activities, donating a total of 1.04 million Yuan in cash and goods during the first half - In January 2025, company supervisor Ms. Yang Yang resigned due to work adjustments, and the shareholders' meeting elected Mr. Cai Zhanwei as the new supervisor[82](index=82&type=chunk) - The company has no profit distribution or capital reserve capitalization plan for this half-year period[83](index=83&type=chunk) - During the reporting period, the company actively fulfilled its social responsibilities, donating a total of **1.04 million Yuan** in cash and goods in the first half for rural revitalization, student aid, social welfare, and free medical clinics[85](index=85&type=chunk) [Significant Matters](index=24&type=section&id=Section%20V%20Significant%20Matters) This section details key events and developments impacting the company, including commitment fulfillment, major litigation, related party transactions, and the use of raised funds [Fulfillment of Commitments](index=24&type=section&id=I.%20Fulfillment%20of%20Commitments) This chapter outlines various commitments made by relevant parties since the company's major asset restructuring in 2016 and asset swap transaction in 2023, noting that shareholder Yuyang Company has not fully met its performance compensation obligations due to its pledged shares, while other commitments regarding non-competition, related-party transactions, and maintaining the listed company's independence remain ongoing - Shareholder Yuyang Company failed to meet its performance commitments for 2016-2019 and has not fully fulfilled its performance compensation obligations due to all its company shares being pledged[88](index=88&type=chunk) - The company's controlling shareholder and actual controller's commitments regarding avoiding horizontal competition, regulating related-party transactions, and ensuring the listed company's independence remained effective and were complied with during the reporting period[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - In the 2023 asset swap transaction, the counterparty committed to achieving agreed net profits for the injected assets during the 2023-2027 performance commitment period, with a cash compensation mechanism in place[93](index=93&type=chunk) [Major Litigation and Arbitration Matters](index=32&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company was involved in two major lawsuits: a debt dispute case related to subsidiary Huaqiu Mining, where the second instance final judgment upheld the first instance, dismissing claims unfavorable to the company, and a goods payment dispute lawsuit initiated by the company, which concluded as the opposing party did not appeal, though the related accounts receivable have been fully provisioned for bad debts - Regarding the debt dispute between Yuetong Company and Huaqiu Mining, the second instance judgment upheld the original verdict, dismissing the plaintiff's claims for the company to bear repayment responsibilities, and this final judgment had no substantial impact on the company[95](index=95&type=chunk) - The lawsuit initiated by the company regarding outstanding payments from Guizhou Provincial Agricultural Production Materials Company concluded after the first instance judgment as the opposing party did not appeal; the company has fully provisioned for bad debts on this **17.89 million Yuan** receivable[97](index=97&type=chunk) [Major Related Party Transactions](index=33&type=section&id=X.%20Major%20Related%20Party%20Transactions) During the reporting period, the company conducted multiple routine related-party transactions, all within the scope of annual forecasts and shareholder approval, primarily involving the procurement of drugs and medical equipment from related parties, and payment of guarantee fees to related parties, with all transactions implemented as planned - The company anticipates total routine related-party transactions of approximately **65.80 million Yuan** for 2025, including product purchases, catering services, and property leases, all of which were implemented within the approved scope during the reporting period[100](index=100&type=chunk) - The company approved guarantee fee payments to related parties such as Chitianhua Group not exceeding an estimated **34.64 million Yuan**, with **1.51 million Yuan** paid during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk) [Explanation of Progress in Use of Raised Funds](index=38&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company raised a net amount of 1.94 billion Yuan in 2016, with cumulative investment reaching 1.60 billion Yuan by the end of the reporting period, representing an 82.08% progress rate, and during the period, the company decided to close the 'Guiyang Guanshanhu Oncology Hospital and Guiyang Shengjitang Diabetes Hospital Construction Project' and permanently supplement working capital with the remaining 357 million Yuan (including interest), with relevant special accounts now cancelled - The company adjusted the investment scale and closed the 'Guiyang Guanshanhu Oncology Hospital and Guiyang Shengjitang Diabetes Hospital Construction Project' due to a reduction in actually approved land area and the existing scale's ability to meet market demand[109](index=109&type=chunk)[115](index=115&type=chunk) - In June 2025, the company permanently supplemented working capital with remaining raised funds of **356.92 million Yuan** (including interest) and completed the cancellation procedures for the relevant special fundraising accounts[110](index=110&type=chunk)[115](index=115&type=chunk) [Share Changes and Shareholder Information](index=43&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section provides an overview of the company's share capital movements and detailed information on its shareholders, including major holders and their shareholding status [Shareholder Information](index=43&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had 67,801 common shareholders, with controlling shareholder Guizhou Yuyang Trading Co., Ltd. holding 26.25% of shares, all of which are pledged, and China Great Wall Asset Management Co., Ltd. and its concerted parties holding a significant combined stake among the top ten shareholders Top Shareholders | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | | Guizhou Yuyang Trading Co., Ltd. | 443,326,840 | 26.25 | Pledged | 443,326,840 | | Great Wall Guorong Investment Management Co., Ltd. | 95,660,378 | 5.66 | None | - | | China Great Wall Asset Management Co., Ltd. | 94,339,622 | 5.59 | None | - | - As of the end of the reporting period, the company had a total of **67,801** common shareholders[121](index=121&type=chunk) [Bond-Related Information](index=46&type=section&id=Section%20VII%20Bond-Related%20Information) This section provides an overview of the company's bond instruments, including corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible bonds [Corporate Bond Information](index=46&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - The company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during this reporting period[129](index=129&type=chunk) [Financial Report](index=47&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's comprehensive financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies and specific financial items [Financial Statements](index=47&type=section&id=II.%20Financial%20Statements) This chapter includes the company's unaudited consolidated and parent company financial statements for the first half of 2025, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position as of June 30, 2025, and its operating results and cash flows for the first half of the year - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were **4.63 billion Yuan**, total liabilities were **2.13 billion Yuan**, and owners' equity attributable to the parent company was **2.50 billion Yuan**[131](index=131&type=chunk)[133](index=133&type=chunk) - The consolidated income statement indicates that in the first half of 2025, the company achieved total operating revenue of **1.13 billion Yuan**, a total loss of **50.59 million Yuan**, and net loss attributable to parent company shareholders of **48.95 million Yuan**[138](index=138&type=chunk)[139](index=139&type=chunk) - The consolidated cash flow statement shows that in the first half of 2025, net cash flow from operating activities was **171 million Yuan**, net cash flow from investing activities was **-62 million Yuan**, and net cash flow from financing activities was **-119 million Yuan**[145](index=145&type=chunk)[147](index=147&type=chunk) [Significant Accounting Policies and Estimates](index=67&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) The company's financial statements are prepared on a going concern basis in accordance with enterprise accounting standards, with this chapter detailing key accounting policies such as financial instrument classification and measurement, recognition of expected credit losses, inventory valuation methods, fixed asset depreciation, intangible asset amortization, capitalization conditions for research and development expenditures, and revenue recognition principles - **Revenue Recognition**: Revenue is recognized when the customer obtains control of the related goods or services; chemical products are typically recognized upon customer pickup or delivery to a designated location, while medical services are recognized upon provision[242](index=242&type=chunk)[243](index=243&type=chunk) - **Impairment of Financial Assets**: Impairment accounting is performed based on expected credit losses; for accounts receivable, loss provisions are always measured at an amount equal to the expected credit losses over the entire lifetime[192](index=192&type=chunk)[195](index=195&type=chunk) - **Research and Development Expenditures**: Distinguished into research and development phases; research phase expenditures are expensed, while development phase expenditures are capitalized when specific conditions are met[229](index=229&type=chunk) - **Depreciation of Fixed Assets**: Calculated using the straight-line method, with depreciation periods of **20-40 years** for buildings and structures, and **5-18 years** for machinery and equipment[223](index=223&type=chunk) [Notes to Consolidated Financial Statement Items](index=87&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This chapter provides detailed explanations and analyses of each item in the consolidated financial statements, including the composition, changes, and related details of key accounts such as monetary funds, receivables, inventories, fixed assets, construction in progress, borrowings, payables, and revenue costs, serving as an important supplement for understanding the company's specific financial position - Of the **316 million Yuan** in monetary funds at period-end, **224 million Yuan** are restricted funds, primarily for acceptance bill deposits, frozen bank funds, and environmental governance restoration funds[263](index=263&type=chunk) - Accounts receivable balance at period-end was **112 million Yuan**, with bad debt provisions of **80.47 million Yuan**, resulting in a carrying value of **31.46 million Yuan**, of which **55.91 million Yuan** was individually provisioned for bad debts[271](index=271&type=chunk) - Inventory carrying value at period-end was **307 million Yuan**, including **49.24 million Yuan** in inventory impairment provisions, primarily for raw materials and finished goods[297](index=297&type=chunk)[299](index=299&type=chunk) - Short-term borrowings at period-end were **569 million Yuan**, and long-term borrowings were **465 million Yuan**, both secured by collateral or guarantees[356](index=356&type=chunk)[381](index=381&type=chunk) [Related Parties and Related Party Transactions](index=144&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) This chapter discloses the company's parent company, subsidiaries, joint ventures, associates, and other related parties, detailing related-party transactions during the reporting period, primarily including procurement of goods, provision of services, related-party leases, and related-party guarantees, along with the period-end balances of receivables from and payables to related parties - The company's parent company is Guizhou Yuyang Trading Co., Ltd., holding **26.25%** of shares, with Ding Linhong as the ultimate controlling party[458](index=458&type=chunk)[460](index=460&type=chunk) - During the reporting period, the company procured drugs, materials, etc., from related parties totaling **20.28 million Yuan**; provided catering, health check-up, and other services totaling **0.10 million Yuan**[464](index=464&type=chunk)[466](index=466&type=chunk) - As a guaranteed party, the company received guarantees from its controlling shareholder, related parties, and itself, primarily for the financing of subsidiaries Tongzi Chemical and Daqin Hospital[471](index=471&type=chunk)[472](index=472&type=chunk) - Among period-end payables to related parties, the balance due to Guizhou Chitianhua Huaqiu Mining Co., Ltd. was **48.58 million Yuan**, and the balance due to parent company Guizhou Yuyang Trading Co., Ltd. was **21.96 million Yuan**[479](index=479&type=chunk)

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[Important Notice](index=2&type=section&id=Important%20Notice) [Statement by the Board of Directors, Supervisory Board, and Senior Management](index=2&type=section&id=Statement%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Senior%20Management) The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility, with all directors attending the board meeting and the report being unaudited - Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness, and assume legal responsibility[3](index=3&type=chunk) - All company directors attended the board meeting, and the semi-annual report is unaudited[4](index=4&type=chunk)[5](index=5&type=chunk) - Company head Wang Yue, chief accountant He Lanhong, and head of accounting department Huang Mingxuan declare the financial report is true, accurate, and complete[6](index=6&type=chunk) [Profit Distribution Plan](index=2&type=section&id=Profit%20Distribution%20Plan) The Board of Directors approved the semi-annual profit distribution plan, proposing a cash dividend of 0.02 yuan (tax inclusive) per share based on the total share capital minus repurchased shares, totaling 35.88 million yuan - The Board of Directors approved the semi-annual profit distribution plan[6](index=6&type=chunk) 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount/Description | | :--- | :--- | | Cash Dividend per Share (tax inclusive) | 0.02 yuan | | No Bonus Shares | Yes | | No Capitalization from Capital Reserve | Yes | | Total Share Capital (as of August 18, 2025) | 1,848,000,000 shares | | Less: Repurchased Shares | 54,235,200 shares | | Shares Eligible for Distribution | 1,793,764,800 shares | | Total Proposed Cash Dividend (tax inclusive) | 35,875,296.00 yuan | | Remaining Profit | Carried forward to subsequent years | [Risk Statement and Disclosure](index=2&type=section&id=Risk%20Statement%20and%20Disclosure) Forward-looking statements in this report do not constitute substantive commitments, and investors should be aware of investment risks, with no non-operating fund occupation or irregular guarantees by controlling shareholders - Forward-looking statements in the report do not constitute substantive commitments, and investors should be aware of investment risks[7](index=7&type=chunk) - There is no non-operating occupation of funds by controlling shareholders or other related parties[8](index=8&type=chunk) - There are no external guarantees provided in violation of decision-making procedures[8](index=8&type=chunk) - Significant risk factors are described in the "Management Discussion and Analysis" section of this report[8](index=8&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section defines common terms used in the report, including the company itself, controlling shareholder Wenfeng Group, key subsidiaries, and the reporting period - "Company", "the Company", and "Wenfeng Shares" all refer to Wenfeng Great World Chain Development Co., Ltd[13](index=13&type=chunk) - "Wenfeng Group" refers to Jiangsu Wenfeng Group Co., Ltd., the company's controlling shareholder[13](index=13&type=chunk) - "Reporting Period" refers to January 1, 2025, to June 30, 2025[13](index=13&type=chunk) [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Information and Contact Details](index=4&type=section&id=Company%20Information%20and%20Contact%20Details) This section provides the company's basic information, including its Chinese name, abbreviation, legal representative, registered and office addresses, website, email, and contact details for the Board Secretary and Securities Affairs Representative - The company's Chinese name is Wenfeng Great World Chain Development Co., Ltd., abbreviated as Wenfeng Great World, with Wang Yue as the legal representative[15](index=15&type=chunk) - The company's registered address is No. 3-21 Nandajie, Nantong City, Jiangsu Province, and its office address is No. 59 Youth Middle Road, Nantong City, Jiangsu Province[17](index=17&type=chunk) - The Board Secretary is Huang Jiaying, and the Securities Affairs Representative is Lan Yulu, with contact number 0513-85505666-9609[16](index=16&type=chunk) [Information Disclosure and Stock Overview](index=4&type=section&id=Information%20Disclosure%20and%20Stock%20Overview) The company designates China Securities Journal and Shanghai Securities News for information disclosure, with its semi-annual report published on www.sse.com.cn, and its A-shares are listed on the Shanghai Stock Exchange under stock code 601010 - The company designates China Securities Journal and Shanghai Securities News as information disclosure newspapers, with the report published on www.sse.com.cn[18](index=18&type=chunk) Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Wenfeng Shares | 601010 | [Key Accounting Data and Financial Indicators](index=5&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2025, the company's operating revenue decreased by 14.34% year-on-year, net profit attributable to shareholders decreased by 48.19%, and net cash flow from operating activities was negative, significantly declining Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 857,281,136.99 yuan | 1,000,807,051.51 yuan | -14.34 | | Total Profit | 63,851,273.85 yuan | 117,035,250.03 yuan | -45.44 | | Net Profit Attributable to Shareholders of Listed Company | 37,527,792.51 yuan | 72,429,651.35 yuan | -48.19 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 30,448,510.31 yuan | 69,354,769.82 yuan | -56.10 | | Net Cash Flow from Operating Activities | -139,084,528.72 yuan | -9,988,110.96 yuan | Not Applicable | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 4,336,899,035.47 yuan | 4,431,584,123.86 yuan | -2.14 | | Total Assets (Period-end) | 6,143,109,855.45 yuan | 6,434,894,601.88 yuan | -4.53 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.02 | 0.04 | -50.00 | | Diluted Earnings Per Share (yuan/share) | 0.02 | 0.04 | -50.00 | | Basic Earnings Per Share (Excluding Non-Recurring Gains and Losses) (yuan/share) | 0.02 | 0.04 | -50.00 | | Weighted Average Return on Net Assets (%) | 0.84 | 1.62 | Decrease of 0.78 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains and Losses) (%) | 0.68 | 1.55 | Decrease of 0.87 percentage points | - The decrease in total profit, net profit attributable to shareholders, and non-recurring net profit is primarily due to a decline in operating revenue and a year-on-year reduction in operating gross profit[21](index=21&type=chunk) - The decrease in net cash flow from operating activities is mainly due to lower operating revenue, increased cash payments for accounts payable, inventory purchases, and prepaid accounts[21](index=21&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=6&type=section&id=Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to 7.08 million yuan, primarily comprising government subsidies, fair value changes, and non-operating income and expenses Non-Recurring Gains and Losses and Amounts for H1 2025 | Non-Recurring Gain/Loss Item | Amount (yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -1,406.00 | | Government subsidies recognized in current profit and loss | 7,738,217.34 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 4,571,033.80 | | Gains and losses from contingent events unrelated to the company's normal operating activities | -5,289,548.55 | | Other non-operating income and expenses apart from the above | 1,879,021.00 | | Other gain/loss items that meet the definition of non-recurring gains and losses | 158,203.41 | | Less: Income tax impact | 1,976,173.28 | | Impact on minority interests (after tax) | 65.52 | | Total | 7,079,282.20 | [Net Profit After Deducting Share-Based Payment Impact](index=6&type=section&id=Net%20Profit%20After%20Deducting%20Share-Based%20Payment%20Impact) After deducting the impact of share-based payments, the company's net profit for the first half of 2025 was 40.76 million yuan, a year-on-year decrease of 50.28% Net Profit After Deducting Share-Based Payment Impact | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 40,759,739.94 yuan | 81,983,629.12 yuan | -50.28 | [Section III Management Discussion and Analysis](index=6&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) [Description of the Company's Industry and Main Business During the Reporting Period](index=6&type=section&id=Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company primarily operates a chain of department stores, supermarkets, electronics stores, and shopping centers, with a significant portion of revenue from consignment sales, facing a challenging retail environment but leveraging its strong brand and market position - The company's main business involves the chain operation of department stores, supermarkets, electronics stores, and shopping centers, primarily in Nantong City, Jiangsu Province, and Shanghai City[28](index=28&type=chunk) - Operating models include direct sales, consignment sales, and leasing, with consignment sales accounting for **76.17%** of main business revenue in H1 2025[28](index=28&type=chunk) H1 2025 Operating Model Revenue and Gross Profit by Business Segment (ten thousand yuan) | Item | Direct Sales Revenue (excl. tax) | Direct Sales Gross Profit (excl. tax) | Consignment Sales Revenue (excl. tax) | Consignment Sales Gross Profit (excl. tax) | Subtotal Revenue (excl. tax) | Subtotal Gross Profit (excl. tax) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Department Store | 26,675.29 | 1,036.74 | 247,187.41 | 23,023.16 | 273,862.71 | 24,059.90 | | Supermarket | 23,105.57 | 2,098.54 | 7,346.76 | 366.88 | 30,452.32 | 2,465.43 | | Electronics | 31,838.53 | 2,431.75 | 7,646.57 | 894.74 | 39,485.10 | 3,326.48 | | Shopping Center | 501.95 | 40.33 | 365.90 | 25.78 | 867.85 | 66.11 | | Total | 82,121.34 | 5,607.36 | 262,546.64 | 24,310.56 | 344,667.98 | 29,917.91 | - In H1 2025, total retail sales of consumer goods increased by **5.0%** year-on-year, indicating broad prospects for the retail industry with policy support, despite weak consumer demand requiring innovation for structural growth[30](index=30&type=chunk)[31](index=31&type=chunk) - The company has cultivated the Nantong market for over thirty years, enjoying strong brand trust among consumers, and ranked **46th** in the "2024 China Chain Top 100"[31](index=31&type=chunk)[32](index=32&type=chunk) [Discussion and Analysis of Operations](index=8&type=section&id=Discussion%20and%20Analysis%20of%20Operations) In H1 2025, the company focused on brand, service, membership, digitalization, and team, implementing tailored strategies, brand optimization, innovative marketing, and digital transformation to enhance influence and efficiency, despite a year-on-year decline in revenue and net profit - The company上半年以“创新驱动、品质筑基、温度联结”为引擎，聚焦品牌、服务、会员、数字化和团队五大领域工作[32](index=32&type=chunk) - The department store segment improved performance by renovating space layouts, optimizing brand portfolios, innovating cooperation models, deepening operations and risk control, and upgrading marketing strategies[33](index=33&type=chunk) - The supermarket segment enhanced user repurchase rates by innovating new product development channels, increasing direct sourcing, planning exclusive offline promotions, and deepening online platform functions[34](index=34&type=chunk) - The electronics segment reshaped cooperation value, optimized operational efficiency, deepened customer operations, and implemented precise marketing around the strategy of "focusing on reduction, profit orientation, and precise marketing"[35](index=35&type=chunk) - The shopping center segment implemented "one store, one policy" to reshape store positioning, enhance customer satisfaction, accelerate vacant space leasing, and promote innovation, thereby boosting brand influence[36](index=36&type=chunk) - Wenfeng Cloud Shopping deepened digital transformation, empowering the four business segments, actively responding to national subsidy policies, upgrading the mini-program system, and continuously enhancing member benefits[37](index=37&type=chunk) H1 2025 Operating Performance | Indicator | Amount (ten thousand yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | | Operating Revenue | 85,728.11 | -14.34 | | Net Profit Attributable to Shareholders of Listed Company | 3,752.78 | -48.19 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 3,044.85 | -56.10 | [Analysis of Core Competencies](index=9&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies include its over thirty years of brand influence and consumer trust in the Nantong market, the successfully registered "Wenfeng Summer Night" brand, a customer-centric "Satisfaction Project," superior location advantages, and a differentiated competition strategy through deep integration of business formats - The company has cultivated the Nantong market for over thirty years, and its brand image is deeply trusted and favored by local consumers[38](index=38&type=chunk) - The "Wenfeng Summer Night" brand trademark has been successfully registered, enjoying high recognition and reputation among consumers[38](index=38&type=chunk) - Major department stores are located in commercial origins or core areas, and shopping centers are adjacent to subway and bus stations, providing significant location advantages and ample customer traffic[38](index=38&type=chunk) - The company actively promotes deep integration of department store, supermarket, electronics, and shopping center formats to create a differentiated competitive advantage[38](index=38&type=chunk) [Key Operating Performance During the Reporting Period](index=9&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company experienced year-on-year declines in operating revenue and costs, an increase in financial expenses, and significant decreases in net cash flow from operating, investing, and financing activities due to various factors Financial Statement Item Fluctuation Analysis (H1 2025) | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 857,281,136.99 | 1,000,807,051.51 | -14.34 | | Operating Cost | 454,119,284.71 | 510,153,857.35 | -10.98 | | Selling Expenses | 136,039,430.46 | 149,556,428.01 | -9.04 | | Administrative Expenses | 153,273,641.41 | 167,600,609.94 | -8.55 | | Financial Expenses | 11,394,550.47 | 9,385,227.18 | 21.41 | | Net Cash Flow from Operating Activities | -139,084,528.72 | -9,988,110.96 | Not Applicable | | Net Cash Flow from Investing Activities | -119,414,249.60 | 19,894,199.98 | -700.25 | | Net Cash Flow from Financing Activities | -86,963,562.29 | -127,070,344.39 | Not Applicable | - Operating revenue decreased by **122.44 million yuan**, and other business income decreased by **21.09 million yuan**[39](index=39&type=chunk) - Financial expenses increased by **21.41%**, mainly due to a **1.97 million yuan** decrease in interest income and a **0.76 million yuan** increase in interest expenses[39](index=39&type=chunk) - Net cash flow from investing activities decreased by **182.95 million yuan**, with payments for long-term asset acquisitions decreasing by **43.69 million yuan**[41](index=41&type=chunk) - Changes in net cash flow from financing activities were primarily influenced by increased borrowings, increased debt repayments, decreased share repurchases, and increased dividend distributions[41](index=41&type=chunk) [Analysis of Assets and Liabilities](index=10&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's monetary funds decreased significantly due to net cash outflows from operating, investing, and financing activities, while other receivables, other current assets, long-term equity investments, other non-current assets, short-term borrowings, and provisions for liabilities all saw notable increases Asset and Liability Status Changes (H1 2025) | Item Name | Period-end Amount (yuan) | % of Total Assets | Prior Year-end Amount (yuan) | Prior Year-end % of Total Assets | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 334,209,930.14 | 5.44 | 701,469,512.56 | 10.90 | -52.36 | Net cash outflow from operating, investing, and financing activities | | Other Receivables | 43,223,845.20 | 0.70 | 32,213,208.36 | 0.50 | 34.18 | Increase in receivables for Su Xin consumption subsidies | | Other Current Assets | 94,504,822.86 | 1.54 | 41,575,659.21 | 0.65 | 127.31 | Increase in input VAT credit, etc. | | Long-term Equity Investments | 49,992,339.90 | 0.81 | 702.14 | 0.00 | 7,119,895.98 | New investment funds | | Other Non-current Assets | 19,168,712.86 | 0.31 | 11,989,454.89 | 0.19 | 59.88 | Increase in prepaid asset acquisition funds | | Short-term Borrowings | 49,700,000.00 | 0.81 | 23,000,000.00 | 0.36 | 116.09 | Increase in bank borrowings | | Notes Payable | 53,222,556.00 | 0.87 | 80,581,194.00 | 1.25 | -33.95 | Decrease in bank acceptance bill payments | | Accounts Payable | 202,334,695.54 | 3.29 | 299,908,953.72 | 4.66 | -32.53 | Decrease in payments to suppliers | | Taxes Payable | 26,716,418.80 | 0.43 | 52,215,423.50 | 0.81 | -48.83 | Decrease in VAT and corporate income tax payable | | Provisions for Liabilities | 5,328,470.55 | 0.09 | 142,616.22 | 0.00 | 3,636.23 | Increase in provisions for pending litigation | | Long-term Employee Benefits Payable | 1,387,735.81 | 0.02 | 2,356,554.75 | 0.04 | -41.11 | Original provision for termination benefits decreasing annually | - Overseas assets amounted to **101,282.82 yuan**, accounting for **0.002%** of total assets[43](index=43&type=chunk) Major Asset Restrictions at Period-end | Item | Period-end Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 34,005,731.12 | Acceptance, letter of guarantee deposits, and litigation frozen funds | | Fixed Assets | 20,052,629.05 | Mortgage guarantee for bank loans | | Intangible Assets | 2,619,613.88 | Mortgage guarantee for bank loans | [Analysis of Investment Status](index=11&type=section&id=Analysis%20of%20Investment%20Status) The company had no significant equity investments during the reporting period, but various profit and loss statement items showed significant changes, with the Shanghai Songjiang Integrated Building project 93.63% complete, active investments in wealth management and trust products, and the controlling shareholder committed to covering losses from a private equity fund - There were no significant equity investments during the reporting period[46](index=46&type=chunk) Major Profit Statement Item Fluctuations (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Jan-Jun 2025 (yuan) | Jan-Jun 2024 (yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Interest Income | 1,079,525.65 | 3,047,986.37 | -64.58 | Decrease in bank interest income year-on-year | | Other Income | 549,857.71 | 250,118.80 | 119.84 | Increase in government subsidies year-on-year | | Investment Income | 5,541,694.71 | 3,409,802.16 | 62.52 | Increase in investment income from wealth management products year-on-year | | Fair Value Change Gains | -979,023.15 | -92,438.94 | Not Applicable | Impact of fair value changes in trading financial assets and other non-current financial assets | | Credit Impairment Losses | -1,647,178.58 | 630,463.71 | -361.26 | Increase in provision for bad debts year-on-year | | Asset Impairment Losses | -9,938.56 | 67,292.27 | -114.77 | Increase in provision for inventory depreciation year-on-year | | Asset Disposal Gains | 20,102.42 | 223,575.88 | -91.01 | Decrease in gains from disposal of right-of-use assets and fixed assets year-on-year | | Non-operating Income | 9,380,769.14 | 1,505,788.97 | 522.98 | Increase in government subsidies unrelated to daily operations year-on-year | | Non-operating Expenses | 5,469,542.07 | 1,523,970.45 | 258.90 | Increase in provision for estimated liabilities year-on-year | | Income Tax Expense | 26,444,918.69 | 44,800,176.61 | -40.97 | Decrease in current and deferred income tax expenses year-on-year | | Net Profit | 37,406,355.16 | 72,235,073.42 | -48.22 | Decrease in operating gross profit, three expenses, income tax expense, and taxes and surcharges year-on-year | | Minority Interest Loss | -121,437.35 | -194,577.93 | Not Applicable | Closure or business reduction of subsidiaries with minority interests | - The Shanghai Songjiang Integrated Building project construction progress is **93.63%**, with cumulative project investment of **549.76 million yuan**[48](index=48&type=chunk) - The company uses its own funds for wealth management product investments, with a maximum daily balance not exceeding **1 billion yuan**[49](index=49&type=chunk) - The company's total trust investments amount to **250 million yuan**, having generated trust income of **4.12 million yuan**[49](index=49&type=chunk) - Wholly-owned subsidiary Wenfeng Technology invested **219 million yuan** in Jiangsu Gairui Health Technology Co., Ltd., acquiring an **8.693926%** equity stake[51](index=51&type=chunk) - The wholly-owned subsidiary's investment in Shoupu Industry Preferred No. 1 Private Securities Investment Fund incurred losses, and the controlling shareholder committed to covering the difference, having cumulatively paid **125 million yuan**[52](index=52&type=chunk) [Analysis of Major Holding and Participating Companies](index=14&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company owns numerous wholly-owned subsidiaries with diverse business operations, and during the reporting period, Baoying Wenfeng Great World Asia Shopping Center Co., Ltd. was deregistered, while several subsidiaries experienced significant year-on-year changes in net profit - The company's former subsidiary, Baoying Wenfeng Great World Asia Shopping Center Co., Ltd., was deregistered in December 2024 and removed from the consolidated scope this period[55](index=55&type=chunk) Major Subsidiaries and Participating Companies with over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (ten thousand yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nantong Wenfeng Commercial Procurement and Wholesale Co., Ltd. | Subsidiary | Domestic Commerce | 1,000 | 393,481,238.84 | 62,753,012.36 | 501,186,964.78 | 16,244,351.77 | 12,098,184.50 | | Shanghai Wenfeng Qianjiahui Shopping Center Co., Ltd. | Subsidiary | Wholesale, Retail | 10,500 | 245,266,273.50 | 190,025,065.39 | 174,805,066.21 | 26,055,482.36 | 20,301,142.21 | | Jiangsu Great World Apparel Co., Ltd. | Subsidiary | Wholesale, Retail | 500 | 83,389,954.71 | 38,525,873.82 | 306,140,481.33 | 21,170,867.56 | 20,505,440.69 | | Shanghai Wenfeng Commercial Co., Ltd. | Subsidiary | Wholesale, Retail | 500 | 44,616,834.98 | 24,178,042.16 | 150,128,027.12 | 12,497,876.25 | 10,236,080.81 | | Nantong Wenjing Real Estate Co., Ltd. | Subsidiary | Real Estate Development | 150,000 | 1,476,329,890.17 | 1,470,082,638.08 | 19,991,307.11 | -12,691,332.34 | -12,647,726.61 | Subsidiaries with Over 30% Year-on-Year Change in Operating Performance and Significant Impact on Consolidated Operating Performance | Subsidiary Name | H1 2025 Net Profit (yuan) | H1 2024 Net Profit (yuan) | Change Amount (yuan) | Growth Rate (%) | Explanation for >30% Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Hai'an Wenfeng Great World Co., Ltd. | 1,020,719.20 | 3,550,812.65 | -2,530,093.45 | -71.25 | Decrease in sales performance, gross profit, and other business net income | | Nantong Haimen Wenfeng Great World Co., Ltd. | -427,892.08 | 1,211,302.77 | -1,639,194.85 | -135.32 | Decrease in sales performance, gross profit, and other business net income | | Qidong Wenfeng Great World Co., Ltd. | 58,206.37 | 1,058,138.44 | -999,932.07 | -94.50 | Decrease in sales performance, gross profit, and other business net income | | Rugao Wenfeng Great World Co., Ltd. | -102,033.24 | 1,293,347.63 | -1,395,380.87 | -107.89 | Decrease in sales performance, gross profit | | Jiangsu Wenfeng Electrical Appliances Co., Ltd. | 3,046,029.03 | 5,744,089.07 | -2,698,060.04 | -46.97 | Increase in rebates to stores this year, decrease in gross profit | | Nantong Wenfeng Supermarket Franchise Management Co., Ltd. | 1,649,339.15 | 684,227.74 | 965,111.41 | 141.05 | Decrease in expenses, increase in wholesale sales performance, increase in gross profit | | Nantong Wenfeng Electrical Appliance Sales Co., Ltd. | -1,301,357.80 | -5,219,524.48 | 3,918,166.68 | 75.07 | Increase in sales performance, increase in gross profit | | Tongzhou Wenfeng Great World Co., Ltd. | 984,259.86 | 1,515,806.38 | -531,546.52 | -35.07 | Decrease in sales performance, gross profit, and other business net income | | Shanghai Wenfeng Qianjiahui Supermarket Development Co., Ltd. | -2,138,582.11 | -992,861.22 | -1,145,720.89 | -115.40 | Decrease in sales performance, gross profit, and other business net income | | Rugao Changjiang Wenfeng Great World Co., Ltd. | -799,397.06 | -6,013,015.87 | 5,213,618.81 | 86.71 | Business structure adjustment, increase in sales performance, gross profit, and other business net income | | Nantong Wenfeng City Plaza Shopping Center Co., Ltd. | 2,244,468.47 | 10,759,442.99 | -8,514,974.52 | -79.14 | Decrease in sales performance, gross profit, and other business net income | | Zhangjiagang Haolin Enterprise Management Co., Ltd. | -2,875,119.44 | -2,124,512.52 | -750,606.92 | -35.33 | Decrease in sales performance, gross profit, and other business net income | [Potential Risks](index=16&type=section&id=Potential%20Risks) The company faces risks from a weak macroeconomic environment leading to reduced consumer spending, online shopping competition, intense regional market homogenization, high investment with slow returns for new marketing models, and a scarcity of professional retail talent - While the macroeconomic growth remains stable, weak consumer spending intentions pose significant pressure on the overall retail industry[59](index=59&type=chunk) - The rise of online shopping has significantly impacted the offline retail industry, leading to decreased store traffic[59](index=59&type=chunk) - The company's regional and surrounding markets face intense homogeneous competition, continuously diverting sales across various business formats[59](index=59&type=chunk) - New marketing models, such as store renovation and upgrades, digital transformation, and deep omnichannel collaboration, require substantial investment with long payback periods, leading to immense cost control pressure[59](index=59&type=chunk) - There is a scarcity of professional talent in the retail industry, with an aging workforce and insufficient talent pipeline, hindering future development[59](index=59&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=17&type=section&id=Section%20IV%20Corporate%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) Independent Director Mr. Zhou Chongqing resigned due to the expiration of his term, and Mr. Xie Debing was elected as an independent director for the seventh Board of Directors - Independent Director Mr. Zhou Chongqing resigned due to his continuous tenure approaching six years[62](index=62&type=chunk) - Mr. Xie Debing was elected as an independent director for the company's seventh Board of Directors[62](index=62&type=chunk) [Profit Distribution or Capital Reserve Capitalization Plan](index=17&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Capitalization%20Plan) The Board of Directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of 0.02 yuan (tax inclusive) per share based on total share capital minus repurchased shares, totaling 35.88 million yuan, with no bonus shares or capitalization from capital reserves - The company's 2025 semi-annual profit distribution plan proposes a cash dividend of **0.02 yuan** (tax inclusive) per share, with no bonus shares or capitalization from capital reserves[64](index=64&type=chunk) - As of August 18, 2025, the total proposed cash dividend is **35,875,296.00 yuan** (tax inclusive)[64](index=64&type=chunk) - The profit distribution plan was authorized by the Board of Directors at the 2024 Annual General Meeting of Shareholders[63](index=63&type=chunk) [Employee Stock Ownership Plan](index=18&type=section&id=Employee%20Stock%20Ownership%20Plan) The company has implemented two employee stock ownership plans; the first plan's second lock-up period ended in June 2025, with some participants' qualifications canceled, and the second plan completed share repurchases in August 2023 totaling 39.30 million shares for 99.97 million yuan - The company's first employee stock ownership plan completed non-trading transfer of **24,642,935 shares** in June 2023[68](index=68&type=chunk) - The first employee stock ownership plan has a duration not exceeding 36 months, with shares unlocking in two phases over 12 and 24 months respectively[68](index=68&type=chunk) - During the reporting period, some employee stock ownership plan participants resigned or retired, and the management committee has the right to cancel their qualifications[69](index=69&type=chunk) - The company completed the second phase of share repurchases in August 2023, cumulatively repurchasing **39,303,800 shares** for a total of **99,966,707.93 yuan**[70](index=70&type=chunk) [Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=18&type=section&id=Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) During the reporting period, the company actively participated in rural revitalization by procuring various agricultural products, including Alashan water-saving millet, Maotai Distillery Youmi blueberry wine, Shandong Shouguang vegetables, and Qinghai Guide County specialty agricultural products, totaling approximately 1.12 million yuan - During the reporting period, the company procured approximately **0.68 ten thousand yuan** of Alashan water-saving millet "Ren Millet" series products[70](index=70&type=chunk) - Procurement of Maotai Distillery Youmi blueberry brewed wine amounted to approximately **9.48 ten thousand yuan**[70](index=70&type=chunk) - Procurement and sales of Shandong Shouguang vegetables amounted to approximately **89.8 ten thousand yuan**[70](index=70&type=chunk) - Introduction of specialty agricultural products from Guide County, Qinghai, with procurement amounting to approximately **11.9 ten thousand yuan**[70](index=70&type=chunk) [Section V Significant Matters](index=19&type=section&id=Section%20V%20Significant%20Matters) [Fulfillment of Commitments](index=19&type=section&id=Fulfillment%20of%20Commitments) Controlling shareholder Wenfeng Group has consistently and strictly fulfilled its long-term commitments regarding resolving horizontal competition, standardizing related-party transactions, bearing the risk of fiscal subsidy clawbacks, and covering private equity fund losses, having cumulatively paid 125 million yuan for the latter - Controlling shareholder Wenfeng Group committed to resolving horizontal competition and taking effective measures to avoid business competition with the company[72](index=72&type=chunk) - The controlling shareholder committed to standardizing related-party transactions, avoiding illegal occupation of company funds and assets, not providing any form of guarantee, and adhering to market principles[72](index=72&type=chunk) - The controlling shareholder committed to bearing the risk of clawback for fiscal subsidies and other funds received by the company before its initial public offering[73](index=73&type=chunk) - The controlling shareholder committed to covering the difference for losses incurred by the company's subscription to Shoupu Fund shares, having cumulatively paid **125 million yuan** as of the end of the reporting period[73](index=73&type=chunk) [Significant Litigation and Arbitration Matters](index=21&type=section&id=Significant%20Litigation%20and%20Arbitration%20Matters) The company is involved in a securities market manipulation liability dispute with Xu Xiang and Xu Changjiang, where the first-instance judgment held the company jointly liable, and the second-instance upheld the original judgment with a modified statement of joint liability - The company is involved in a securities market manipulation liability dispute with Xu Xiang and Xu Changjiang[75](index=75&type=chunk) - The first-instance judgment ordered Xu Xiang and Xu Changjiang to compensate a total loss of **1,102,627.55 yuan**, with Wenfeng Shares bearing joint liability[75](index=75&type=chunk) - After the company appealed, the second-instance upheld the first-instance judgment but modified the statement regarding Wenfeng Shares' joint liability[75](index=75&type=chunk) [Significant Contracts and Their Performance](index=23&type=section&id=Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no external guarantees but provided guarantees totaling 36.28 million yuan to subsidiaries, with an outstanding balance of 31.16 million yuan at period-end, representing 0.72% of net assets, primarily for Jiangsu Wenfeng Electrical Appliances Co., Ltd.'s comprehensive credit line Company Guarantee Overview (H1 2025) | Indicator | Amount (yuan) | | :--- | :--- | | Total Guarantees Issued During Reporting Period (excluding guarantees to subsidiaries) | 0.00 | | Total Guarantee Balance at Period-end (excluding guarantees to subsidiaries) | 0.00 | | Total Guarantees Issued to Subsidiaries During Reporting Period | 36,277,487.80 | | Total Guarantee Balance to Subsidiaries at Period-end | 31,163,501.80 | | Total Guarantees (A+B) | 31,163,501.80 | | Ratio of Total Guarantees to Company's Net Assets (%) | 0.72 | - The company provided a maximum guarantee for a comprehensive credit line application by its wholly-owned subsidiary Jiangsu Wenfeng Electrical Appliances Co., Ltd., amounting to **200 million yuan** in 2024 and **240 million yuan** in 2025[81](index=81&type=chunk) [Section VI Share Changes and Shareholder Information](index=24&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) [Changes in Share Capital](index=24&type=section&id=Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[83](index=83&type=chunk) [Shareholder Information](index=24&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had 104,320 common shareholders, with controlling shareholder Jiangsu Wenfeng Group Co., Ltd. holding 24.07% and pledging 77.44% of its shares, while Zheng Suzhen's stake decreased to 6.70% after an auction - As of the end of the reporting period, the total number of common shareholders was **104,320**[83](index=83&type=chunk) Top Ten Shareholders' Shareholding at Period-end | Shareholder Name | Period-end Shareholding (shares) | Percentage (%) | Share Status | Pledged/Frozen Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Wenfeng Group Co., Ltd. | 444,724,567 | 24.07 | Pledged | 344,408,943 | Domestic Non-State-Owned Legal Person | | Zheng Suzhen | 263,150,000 | 14.24 | Frozen | 263,150,000 | Domestic Natural Person | | Shanghai Jiahong Private Equity Fund Management Co., Ltd. - Jiahong Tianfu No. 1 Private Securities Investment Fund | 100,000,000 | 5.41 | Unrestricted | 0 | Other | | Central Huijin Asset Management Co., Ltd. | 21,950,000 | 1.19 | Unrestricted | 0 | State-Owned Legal Person | | Wenfeng Great World Chain Development Co., Ltd. - First Employee Stock Ownership Plan | 12,321,535 | 0.67 | Unrestricted | 0 | Other | | Xing Chunmei | 6,799,600 | 0.37 | Unrestricted | 0 | Domestic Natural Person | | Chen Weide | 6,378,700 | 0.35 | Unrestricted | 0 | Domestic Natural Person | | Du Ruiping | 6,248,100 | 0.34 | Unrestricted | 0 | Domestic Natural Person | | Lu Fei | 5,654,700 | 0.31 | Unrestricted | 0 | Domestic Natural Person | | Hong Kong Securities Clearing Company Limited | 3,339,109 | 0.18 | Unrestricted | 0 | Overseas Legal Person | - Controlling shareholder Jiangsu Wenfeng Group Co., Ltd. cumulatively pledged **344,408,943 shares**, accounting for **77.44%** of its holdings and **18.64%** of the company's total share capital[87](index=87&type=chunk) - Ms. Zheng Suzhen's company shares were auctioned, reducing her shareholding to **6.70%** after the auction[86](index=86&type=chunk)[87](index=87&type=chunk) [Section VII Bond-Related Information](index=27&type=section&id=Section%20VII%20Bond-Related%20Information) [Corporate Bonds and Non-Financial Enterprise Debt Financing Instruments](index=27&type=section&id=Corporate%20Bonds%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[90](index=90&type=chunk) [Convertible Corporate Bonds](index=27&type=section&id=Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[90](index=90&type=chunk) [Section VIII Financial Report](index=28&type=section&id=Section%20VIII%20Financial%20Report) [Audit Report](index=28&type=section&id=Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[92](index=92&type=chunk) [Financial Statements](index=28&type=section&id=Financial%20Statements) This section includes the company's consolidated and parent company balance sheets as of June 30, 2025, and consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for January-June 2025 [Consolidated Balance Sheet](index=28&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were 6.14 billion yuan, total liabilities were 1.81 billion yuan, and total owners' equity was 4.33 billion yuan [Parent Company Balance Sheet](index=30&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were 6.01 billion yuan, total liabilities were 1.23 billion yuan, and total owners' equity was 4.78 billion yuan [Consolidated Income Statement](index=32&type=section&id=Consolidated%20Income%20Statement) For January-June 2025, the company's consolidated total operating revenue was 857.28 million yuan, net profit was 37.41 million yuan, and net profit attributable to parent company shareholders was 37.53 million yuan [Parent Company Income Statement](index=34&type=section&id=Parent%20Company%20Income%20Statement) For January-June 2025, the parent company's operating revenue was 250.02 million yuan, and net profit was -4.25 million yuan [Consolidated Cash Flow Statement](index=35&type=section&id=Consolidated%20Cash%20Flow%20Statement) For January-June 2025, the company's consolidated net cash flow from operating activities was -139.08 million yuan, from investing activities was -119.41 million yuan, and from financing activities was -86.96 million yuan [Parent Company Cash Flow Statement](index=36&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For January-June 2025, the parent company's net cash flow from operating activities was -13.26 million yuan, from investing activities was -73.42 million yuan, and from financing activities was -72.97 million yuan [Consolidated Statement of Changes in Owners' Equity](index=38&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For January-June 2025, the company's consolidated total owners' equity decreased by 94.81 million yuan, with a period-end balance of 4.33 billion yuan [Parent Company Statement of Changes in Owners' Equity](index=40&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For January-June 2025, the parent company's total owners' equity decreased by 136.95 million yuan, with a period-end balance of 4.78 billion yuan [Company Basic Information](index=42&type=section&id=Company%20Basic%20Information) Wenfeng Great World Chain Development Co., Ltd. was listed on the Shanghai Stock Exchange on June 3, 2011, with its total share capital increasing to 1.848 billion shares, and its main business remains retail operations including department stores, supermarkets, and electronics sales - The company was listed and traded on the Shanghai Stock Exchange on June 3, 2011[118](index=118&type=chunk) - After multiple capital increases, the company's total share capital increased to **1,848,000,000 shares**[119](index=119&type=chunk) - The company's legal representative is Wang Yue, and its registered address is No. 3-21 Nandajie, Nantong City, Jiangsu Province[120](index=120&type=chunk) - The company primarily operates retail businesses such as department stores, supermarkets, and electronics sales, with no change in its main business[120](index=120&type=chunk) [Basis of Financial Statement Preparation](index=42&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations, using the accrual basis of accounting and historical cost measurement, with a confirmed ability to continue as a going concern for at least 12 months from the reporting period end - Financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations[120](index=120&type=chunk) - Accounting is based on the accrual method, and except for certain financial instruments, all items are measured at historical cost[121](index=121&type=chunk) - The company has the ability to continue as a going concern for at least 12 months from the end of this reporting period, with no significant matters affecting its going concern ability[122](index=122&type=chunk) [Significant Accounting Policies and Estimates](index=42&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's adherence to enterprise accounting standards, covering accounting periods, operating cycles, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, other receivables, inventories, assets held for sale, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred tax assets/liabilities, and leases - The company uses a **12-month** operating cycle as the standard for classifying assets and liabilities as current or non-current[127](index=127&type=chunk) - Financial assets are classified into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[143](index=143&type=chunk) - For inventory issuance, department store and electronics segments use the first-in, first-out method, supermarket segments use the moving weighted average method, and special valuable and fresh goods use the specific identification method[157](index=157&type=chunk) - Revenue is recognized when performance obligations are satisfied, meaning the customer obtains control of the related goods, with consignment sales revenue recognized using the net method[196](index=196&type=chunk) - Government grants are classified as asset-related or income-related; asset-related grants are recognized as deferred income and amortized over the asset's useful life, while income-related grants compensating for future expenses are recognized as deferred income, and those compensating for incurred expenses are recognized in current profit or loss or offset against costs[201](index=201&type=chunk)[202](index=202&type=chunk) [Taxation](index=60&type=section&id=Taxation) The company's main taxes include VAT (13%, 9%, 6%, 5%, 3%, 0%), consumption tax (5%), urban maintenance and construction tax (7%, 5%, 3.5%), and corporate income tax (25%), with some subsidiaries enjoying tax reductions for small and micro enterprises and specific exemptions for agricultural trade markets Major Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value Added | 13%, 9%, 6%, 5%, 3%, 0% | | Consumption Tax | Gold and Silver Jewelry Operating Revenue | 5% | | Urban Maintenance and Construction Tax | Payable Turnover Tax | 7%, 5%, 3.5% | | Corporate Income Tax | Taxable Income | 25% | - Sixteen subsidiaries enjoy a **50%** reduction in resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty, cultivated land occupation tax, and education surcharges from January 1, 2023, to December 31, 2027[208](index=208&type=chunk) - Jiangsu Lvfeng Modern Agricultural Investment Co., Ltd. enjoys temporary exemption from property tax and urban land use tax for agricultural trade markets[209](index=209&type=chunk) [Notes to Consolidated Financial Statement Items](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed explanations for each item in the consolidated financial statements, including monetary funds, financial assets, receivables, inventories, investments, fixed assets, intangible assets, liabilities, equity, revenues, costs, expenses, and other financial performance indicators - Period-end other monetary funds amounted to **23,266,621.03 yuan**, including **22,059,054.20 yuan** for bank acceptance bill deposits and interest, and **1,165,900.00 yuan** for letter of guarantee deposits[211](index=211&type=chunk) - The restricted amount of monetary funds at period-end was **34,005,731.12 yuan**, primarily for acceptance, letter of guarantee deposits, and litigation frozen funds[212](index=212&type=chunk)[295](index=295&type=chunk) - Current period operating revenue was **857,281,136.99 yuan**, operating cost was **454,119,284.71 yuan**, and main business revenue was **707,383,153.10 yuan**[347](index=347&type=chunk) - Current period selling expenses were **136,039,430.46 yuan**, administrative expenses were **153,273,641.41 yuan**, and financial expenses were **11,394,550.47 yuan**[355](index=355&type=chunk)[357](index=357&type=chunk)[360](index=360&type=chunk) [Research and Development Expenses](index=105&type=section&id=Research%20and%20Development%20Expenses) During the reporting period, the company did not disclose specific details of research and development expenses, nor did it have capitalized R&D projects or significant externally acquired in-progress R&D projects - During the reporting period, the company did not disclose specific details of research and development expenses[400](index=400&type=chunk) [Changes in Consolidation Scope](index=105&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, the company's former subsidiary, Baoying Wenfeng Great World Asia Shopping Center Co., Ltd., was deregistered in December 2024 and thus removed from the consolidated scope - The company's former subsidiary, Baoying Wenfeng Great World Asia Shopping Center Co., Ltd., was deregistered in December 2024 and removed from the consolidated scope this period[400](index=400&type=chunk) [Interests in Other Entities](index=105&type=section&id=Interests%20in%20Other%20Entities) The company holds interests in numerous wholly-owned subsidiaries with diverse business natures, and at the end of the reporting period, its investment in joint ventures and associates totaled 49.99 million yuan, with a net profit of -8,362.24 yuan - The company owns numerous wholly-owned subsidiaries, such as Rudong Wenfeng Great World Co., Ltd. and Hai'an Wenfeng Great World Co., Ltd., with business natures covering sales, technology development, and real estate development[403](index=403&type=chunk) Summary Financial Information of Insignificant Joint Ventures and Associates | Item | Period-end Balance/Current Period Amount (yuan) | Beginning Balance/Prior Period Amount (yuan) | | :--- | :--- | :--- | | Total Book Value of Investments in Associates | 49,992,339.90 | 702.14 | | Net Profit of Associates | -8,362.24 | -68,626.08 | | Total Comprehensive Income of Associates | -8,362.24 | -68,626.08 | [Government Grants](index=108&type=section&id=Government%20Grants) During the reporting period, the company recognized total government grants of 7.74 million yuan in current profit or loss, comprising 7.67 million yuan related to income and 71,867.04 yuan related to assets Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Income-related | 7,666,350.30 | 792,897.70 | | Asset-related | 71,867.04 | 71,867.04 | | Total | 7,738,217.34 | 864,764.74 | Liability Items Involving Government Grants (Deferred Income) | Financial Statement Item | Beginning Balance (yuan) | Amount of New Grants in Current Period (yuan) | Amount Recognized in Non-operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Period-end Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 754,458.20 | 0 | 71,867.04 | 0 | 682,591.16 | Asset-related | [Risks Related to Financial Instruments](index=109&type=section&id=Risks%20Related%20to%20Financial%20Instruments) The company faces minimal exchange rate risk, with interest rate risk primarily from supply chain financing, credit risk mitigated through management and bad debt provisions, and liquidity risk managed by cash budgeting, bank credit lines, and monitoring borrowing usage - The company's exchange rate risk is minimal, and interest rate risk primarily arises from supply chain financing, which is mitigated through good bank-enterprise relationships and cash budgeting[410](index=410&type=chunk) - Credit risk is reduced through credit management, credit approval, post-event monitoring, and provision for bad debts[411](index=411&type=chunk) - Liquidity risk is managed by ensuring sufficient funding liquidity, regularly analyzing liability structure and maturity, monitoring bank borrowing usage, and maintaining credit lines[412](index=412&type=chunk) - As of June 30, 2025, the company had unused bank credit lines totaling **230.30 million yuan**[412](index=412&type=chunk) [Disclosure of Fair Value](index=110&type=section&id=Disclosure%20of%20Fair%20Value) The company's total assets continuously measured at fair value amounted to 675.70 million yuan, mainly comprising trading financial assets (bank wealth management, precious metal investments) and other non-current financial assets (trust products, equity investments), with fair values determined using active market quotes for Level 1 and valuation techniques for Level 3 Fair Value of Assets and Liabilities Measured at Fair Value at Period-end | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 67,901,288.94 | 137,496,059.23 | 0 | 205,397,348.17 | | Other Non-current Financial Assets | 0 | 0 | 470,300,273.97 | 470,300,273.97 | | Total Assets Continuously Measured at Fair Value | 67,901,288.94 | 137,496,059.23 | 470,300,273.97 | 675,697,622.14 | - The market price for Level 1 fair value measurement items refers to unadjusted quotes in active markets[416](index=416&type=chunk) - Level 3 fair value measurement items, such as wealth management products, private equity funds, and other non-current financial assets, have their fair values determined using valuation techniques[417](index=417&type=chunk) [Related Parties and Related Party Transactions](index=112&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) The company's controlling shareholder is Jiangsu Wenfeng Group Co., Ltd., with Xue Jian as the ultimate controlling party, and during the reporting period, the company engaged in various related-party transactions including procurement, sales, and leasing, and also signed a property purchase agreement with Jiangsu Xinhuishunda Investment Management Co., Ltd., with key management personnel compensation totaling 2.73 million yuan - The company's controlling shareholder is Jiangsu Wenfeng Group Co., Ltd., holding **24.07%** of shares, and the ultimate controlling party is natural person Xue Jian[419](index=419&type=chunk)[420](index=420&type=chunk) Purchase and Sale of Goods/Acceptance of Services | Related Party | Related Transaction Content | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | :--- | | Nantong Wenfeng Supply Chain Management Co., Ltd. | Purchase of Goods | 339,753.95 | 377,666.55 | | Nantong Wenfeng Weiheng Automobile Sales and Service Co., Ltd. | Purchase of Goods and Provision of Services | 6,870.80 | 19,414.51 | | Nantong Wenfeng Hotel Co., Ltd. | Acceptance of Services and Property Purchase | 407,282.55 | 8,690,663.26 | | Nantong Grand Hotel Co., Ltd. | Provision of Services | 253,381.10 | 229,687.29 | | Total | | 1,007,288.40 | 9,330,353.71 | Sale of Goods/Provision of Services | Related Party | Related Transaction Content | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | :--- | | Nantong Wenfeng Hotel Co., Ltd. | Sale of Goods and Provision of Services | 290,171.25 | 457,618.86 | | Nantong Grand Hotel Co., Ltd. | Sale of Goods and Provision of Services | 213,953.98 | 161,373.46 | | Jiangsu Wenfeng Group Co., Ltd. | Sale of Goods | 10,221.24 | 79,592.92 | | Total | | 514,346.47 | 698,585.24 | - The company signed a property purchase agreement with Jiangsu Xinhuishunda Investment Management Co., Ltd. to acquire property for **20.07 million yuan**, having paid a **50%** down payment of **10.035 million yuan**[430](index=430&type=chunk) Key Management Personnel Compensation | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 2,727,756.00 | 2,416,867.37 | [Share-Based Payment](index=116&type=section&id=Share-Based%20Payment) The company's first employee stock ownership plan's second lock-up period has ended, and the unlocking conditions have been met, allowing for the unlocking of 12.32 million shares, with a total share-based payment expense of 3.39 million yuan recognized for the current period - The company's first employee stock ownership plan's second lock-up period has ended and unlocking conditions have been met, with **12.32 million shares** eligible for unlocking[436](index=436&type=chunk) Current Period Share-Based Payment Expense | Category of Grantee | Equity-Settled Share-Based Payment Expense (yuan) | | :--- | :--- | | Directors, Senior Management, Middle Management, and Core Personnel | 3,388,439.72 | | Total | 3,388,439.72 | [Commitments and Contingencies](index=117&type=section&id=Commitments%20and%20Contingencies) The company is involved in several pending litigations and arbitrations, including disputes over engineering monitoring services, investment agreements, software system development, and commercial property leases, and also provides mortgage guarantees for financing and housing mortgage loans for property buyers Major Pending Litigations and Arbitrations as of June 30, 2025 | No. | Cause of Action | Amount Involved (ten thousand yuan) | Remarks | | :--- | :--- | :--- | :--- | | 1 | Engineering Monitoring Service Contract Dispute | 683.2076 | Under appraisal | | 2 | Investment Agreement Arbitration | 1,126.50 | Arbitration result rejected our company's request, preparing to initiate new arbitration application | | 3 | Software System Development and Technical Service Contract Dispute | 513.9215 | Company dissatisfied with first-instance judgment, filed an appeal, second-instance hearing on August 21, 2025 | | 4 | Commercial Property Lease Contract Dispute | Original claim: 366.6852; Counterclaim: 427.9731 | First hearing held, awaiting second hearing | - The company provided mortgage guarantees for its financing using operational real estate located at No. 3-21 Nandajie, Nantong City, with a maximum mortgage guarantee amount of **776.33 million yuan** and an outstanding mortgage guarantee balance of **150 million yuan**[442](index=442&type=chunk) - Nantong Wenjing Real Estate Co., Ltd. provided phased mortgage guarantees for housing mortgage loans for property buyers, with a guarantee amount of **6.13 million yuan**[442](index=442&type=chunk) [Events After the Balance Sheet Date](index=118&type=section&id=Events%20After%20the%20Balance%20Sheet%20Date) After the balance sheet date, the company entered into a sale-and-leaseback contract with Far East Horizon Limited for 66 million yuan, with a 36-month lease term and approximately 8.8 million yuan in total interest, and the Board of Directors approved a semi-annual profit distribution plan of 35.88 million yuan - On July 4, 2025, the company signed a sale-and-leaseback contract with Far East Horizon Limited, with an agreed lease item price of **66 million yuan**, a lease term of **36 months**, and total interest of approximately **8.8 million yuan**[443](index=443&type=chunk) 2025 H1 Profit Distribution | Item | Amount (yuan) | | :--- | :--- | | Proposed Profit or Dividend Distribution | 35,875,296.00 | | Profit or Dividend Declared and Approved for Distribution | 35,875,296.00 | [Other Significant Matters](index=119&type=section&id=Other%20Significant%20Matters) The company's operations are segmented into department stores, supermarkets, electronics, shopping centers, and other categories, with their respective external operating revenues for the first half of 2025 being 422.16 million yuan, 183.44 million yuan, 169.80 million yuan, 72.94 million yuan, and 8.95 million yuan - The company's operating businesses are divided into four reporting segments based on product categories and business nature: department store, electronics, supermarket, shopping center, and other[448](index=448&type=chunk) H1 2025 Financial Information by Reporting Segment (ten thousand yuan) | Item | Department Store Segment | Supermarket Segment | Electronics Segment | Shopping Center | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Operating Revenue | 42,216.23 | 18,344.02 | 16,979.56 | 7,293.76 | 894.55 | 85,728.11 | | Total Profit | 9,867.17 | -1,114.88 | 476.78 | -410.92 | -2,433.03 | 6,385.13 | [Notes to Parent Company Financial Statement Items](index=122&type=section&id=Notes%20to%20Parent%20Company%20Financial%20Statement%20Items) This section provides detailed notes for the parent company's financial statement items, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income, with period-end balances of 29.07 million yuan for accounts receivable, 316.74 million yuan for other receivables, and 4.93 billion yuan for long-term equity investments Parent Company Accounts Receivable by Age (Period-end) | Age | Period-end Book Balance (yuan) | | :--- | :--- | | Within 1 year (inclusive) | 28,874,424.79 | | 1 to 2 years | 200,000.00 | | Total | 29,074,424.79 | Parent Company Other Receivables by Nature of Payment (Period-end) | Nature of Payment | Period-end Book Balance (yuan) | | :--- | :--- | | Receivables from consolidated entities | 350,129,660.52 | | Receivables from UnionPay and other third-party collections | 2,256,002.26 | | Receivables for employee imprest funds and loans | 494,500.00 | | Receivables for supplier deposits, etc. | 958,000.00 | | Other receivables | 236,656.18 | | Total | 354,074,818.96 | Parent Company Long-term Equity Investments (Period-end) | Item | Book Value (yuan) | | :--- | :--- | | Investments in Subsidiaries | 4,929,350,255.24 | | Investments in Associates and Joint Ventures | 715.11 | | Total | 4,929,350,970.35 | Parent Company Operating Revenue and Operating Cost (H1 2025) | Item | Revenue (yuan) | Cost (yuan) | | :--- | :--- | :--- | | Main Business | 244,730,287.86 | 173,208,075.16 | | Other Business | 5,290,042.81 | 158,260.76 | | Total | 250,020,330.67 | 173,366,335.92 | Parent Company Investment Income (H1 2025) | Item | Current Period Amount (yuan) | | :--- | :--- | | Investment income from long-term equity investments accounted for using equity method | 12.97 | | Investment income from wealth management products | 4,835,767.16 | | Total | 4,835,780.13 | [Supplementary Information](index=129&type=section&id=Supplementary%20Information) This section provides supplementary information, including a detailed statement of non-recurring gains and losses totaling 7.08 million yuan, and key financial ratios such as a weighted average return on net assets of 0.84% and basic earnings per share of 0.02 yuan/share Current Period Non-Recurring Gains and Losses Detailed Statement | Item | Amount (yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -1,406.00 | | Government subsidies recognized in current profit and loss | 7,738,217.34 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 4,571,033.80 | | Gains and losses from contingent events unrelated to the company's normal operating activities | -5,289,548.55 | | Other non-operating income and expenses apart from the above | 1,879,021.00 | | Other gain/loss items that meet the definition of non-recurring gains and losses | 158,203.41 | | Less: Income tax impact | 1,976,173.28 | | Impact on minority interests (after tax) | 65.52 | | Total | 7,079,282.20 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 0.84 | 0.02 | 0.02 | | Net profit attributable to common shareholders of