珠海光库科技股份有限公司 2025 年半年度报告全文 1 2025 年半年度报告 公告编号：2025-057 2025 年 8 月 珠海光库科技股份有限公司 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。 公司负责人郭瑾、主管会计工作负责人姚韵莉及会计机构负责人(会计主 管人员)易仁洲声明：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。 珠海光库科技股份有限公司 1、行业周期性波动及宏观经济下滑风险 全球光纤激光器行业受宏观经济形势的影响较大，未来存在行业需求下 滑或者增速放缓的可能；技术升级换代等原因造成电信运营商和设备商投资 的周期性，光通讯行业存在周期性波动风险。若未来国内外宏观经济环境发 生变化，固定资产投资放缓，将可能影响光纤激光器和光通讯行业的发展环 境和市场需求，从而给公司的经营业绩和盈利能力带来不利影响。对此，公 司将密切跟踪行业发展变化趋势，提升应变能力，做好公司战略规划。 2、市 ...

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[Definitions](index=4&type=section&id=Section%201%20Definitions) This chapter defines and explains professional terms, company entity abbreviations, and industry-specific vocabulary used in the report - Key professional terms, company entity abbreviations, and industry-specific vocabulary such as GMP, GAP, and GSP are defined and explained[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This chapter presents the company's basic information, listing details, and key financial indicators for H1 2025, highlighting revenue growth, profit decline, and a significant drop in operating cash flow [Company Basic Information](index=8&type=section&id=I.%20Company%20Basic%20Information) This section provides an overview of the company's legal name, contact details, registered addresses, and dual listing information on the Shanghai and Hong Kong stock exchanges - The company is an A+H share dual-listed company, with A-shares listed as **'Baiyunshan' (code 600332)** and H-shares as **'Baiyunshan' (code 0874)**[15](index=15&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=II.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company reported **RMB 41.835 billion** in operating revenue, a **1.93% increase**, but net profit attributable to the parent declined by **1.31%** to **RMB 2.516 billion**, with operating cash flow significantly decreasing by **66.79%** Key Accounting Data | Key Accounting Data | Current Period (RMB Yuan) | Prior Period (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 41,834,546,114 | 41,042,815,088 | 1.93 | | **Total Profit** | 3,090,416,329 | 3,229,403,377 | (4.30) | | **Net Profit Attributable to Parent Company Shareholders** | 2,516,140,987 | 2,549,565,302 | (1.31) | | **Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items)** | 2,205,589,254 | 2,340,832,630 | (5.78) | | **Net Cash Flow from Operating Activities** | (3,397,136,268) | (2,036,740,495) | (66.79) | | **Basic Earnings Per Share (RMB/share)** | 1.548 | 1.568 | (1.31) | - Net cash flow from operating activities significantly decreased by **66.79%** year-on-year, primarily due to lower receivables collection and increased payments for purchases by the company's subsidiaries during the reporting period[18](index=18&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=9&type=section&id=IV.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) The company's total non-recurring gains and losses reached **RMB 311 million**, mainly from fair value changes of financial assets/liabilities and government grants Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (RMB Yuan) | | :--- | :--- | | Gains and Losses from Financial Assets and Liabilities Held by Non-financial Enterprises | 240,596,003 | | Government Grants Recognized in Current Profit or Loss | 130,454,564 | | **Total** | **310,551,733** | [Management Discussion and Analysis](index=12&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This chapter analyzes the company's operating environment, business segments, core competencies, and financial status, noting slight revenue growth but profit decline, with the Great Health segment performing well while Great Pharmaceutical declined, and the company continues strategic initiatives [Industry and Main Business Overview](index=12&type=section&id=I.%20Overview%20of%20the%20Group%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company operates across the pharmaceutical and health industry, segmented into Great Pharmaceutical, Great Health, Great Commercial, and Great Medical, navigating industry slowdowns while leveraging its brand and full-chain presence - The company's business is primarily divided into four segments - **Great Pharmaceutical Segment**: Engages in R&D, manufacturing, and sales of traditional Chinese and Western medicines, raw materials, owning **13** Chinese time-honored pharmaceutical enterprises - **Great Health Segment**: Key products include Wanglaoji herbal tea and Ciningji series, with Wanglaoji herbal tea holding a significant market share in China's herbal tea industry - **Great Commercial Segment**: Engages in wholesale, retail, and import/export of pharmaceutical products and medical devices, with Guangzhou Pharmaceutical as a leading enterprise in South China - **Great Medical Segment**: In the layout and investment expansion phase, focusing on medical services, traditional Chinese medicine wellness, and modern elderly care[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - In the first half of 2025, operating revenue for national pharmaceutical manufacturing enterprises above designated size decreased by **1.2%** year-on-year, and total profit decreased by **2.8%**, indicating industry-wide pressure from slowing growth and declining profits[29](index=29&type=chunk) [Discussion and Analysis of Operations](index=14&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2025, the company's revenue grew by **1.93%** to **RMB 41.835 billion**, but net profit declined by **1.31%** to **RMB 2.516 billion** due to market and policy factors, while strategic initiatives like internationalization and capital operations progressed - The year-on-year decline in the company's profit was primarily due to the continuous impact of insufficient demand, intensified industry competition, and industry policies, leading to a decrease in the operating performance of some businesses[34](index=34&type=chunk) - Key work progress during the reporting period includes - **Internationalization**: Xiaochaihu Granules obtained Macau registration, Wanglaoji launched international dual-label cans, expanding into markets like Saudi Arabia and Malaysia - **Scientific Research**: Obtained **15** drug registration approvals, added **1** national-level platform - **Capital Operations**: Successfully acquired Caishantang, increasing the number of time-honored brands to **13**; Guangzhou Pharmaceutical successfully listed on the New Third Board; completed 2024 annual profit distribution, with cash dividends accounting for **45.87%** of net profit[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) [Core Competitiveness Analysis](index=16&type=section&id=III.%20Core%20Competitiveness%20Analysis%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its extensive product and brand portfolio, rich TCM heritage, comprehensive industrial chain, national distribution network, robust R&D system, and skilled talent pool, which remained stable - The company owns **10** China Well-known Trademarks, and **13** of its member enterprises are certified as Chinese Time-Honored Brands, with **11** of them being century-old enterprises[42](index=42&type=chunk)[43](index=43&type=chunk) - The company has established a multi-level innovation platform system, possessing **6** national-level R&D institutions and **2** postdoctoral workstations, with over **160** ongoing R&D projects covering traditional Chinese medicine, chemical drugs, and biological drugs[46](index=46&type=chunk) [Analysis of Key Operating Performance](index=18&type=section&id=IV.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes operating performance across financial items, segments, and regions, noting the Great Health segment's strong growth and improved gross margin, the Great Pharmaceutical segment's decline, and overall stable financial ratios [Other Disclosures](index=28&type=section&id=V.%20Other%20Disclosures) The company faces significant risks from industry policies, R&D uncertainties, product quality control, and market fluctuations, which it plans to mitigate through innovation and digital transformation - Potential risks faced by the company include - **Policy Risks**: Transformation and upgrading pressures from healthcare reform measures such as consistency evaluation, volume-based procurement, and medical insurance payment method reforms - **R&D Risks**: Long development cycles and high investment for innovative drugs, with risks of progress or clinical results falling short of expectations - **Other Risks**: Product quality control risks, market risks, etc[75](index=75&type=chunk) [Corporate Governance, Environment, and Society](index=30&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This chapter details the company's corporate governance, environmental, and social responsibility practices, including board changes, a proposed interim dividend, compliance with listing rules, environmental disclosures, and ongoing rural revitalization initiatives [Changes in Directors, Supervisors, and Senior Management](index=30&type=section&id=I.%20Changes%20in%20the%20Company%27s%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20and%20Their%20Information) During the reporting period, the company saw changes in its board and senior management, with Mr. Li Xiaojun elected as Chairman and other key personnel changes due to work transfers or retirement - Mr. Li Xiaojun was elected as the company's Chairman, while Mr. Yang Jun (former Vice Chairman), Mr. Wu Changhai (former Executive Director), and Ms. Liu Juyan (former Executive Director) resigned[79](index=79&type=chunk)[81](index=81&type=chunk) [Profit Distribution Plan](index=30&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The board approved the 2025 interim profit distribution plan, proposing a cash dividend of **RMB 4.00 (tax inclusive)** per 10 shares, totaling approximately **RMB 650 million**, with no bonus shares or capital reserve conversions Profit Distribution Plan | Distribution/Conversion Item | Plan | | :--- | :--- | | Dividend per 10 Shares (RMB Yuan, tax inclusive) | 4.00 | | Total Cash Dividend (RMB Yuan, tax inclusive) | 650,316,379.60 | | Bonus Shares per 10 Shares (shares) | / | | Conversion Shares per 10 Shares (shares) | / | [Corporate Governance Status](index=31&type=section&id=V.%20Corporate%20Governance%20Status) The company maintained strong corporate governance, complying with listing rules, disclosing key reports, establishing a market value management system, and strengthening internal control and audit functions - Key corporate governance initiatives include - Disclosure of the 2024 Internal Control Evaluation Report and Sustainable Development Report - Formulation and implementation of the 'Market Value Management System' - Holding **2** shareholder meetings, **8** board meetings, and **3** supervisory board meetings in the first half of 2025 - Establishment of an audit center to coordinate enterprise audit resources and strengthen supervision[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) [Rural Revitalization Initiatives](index=34&type=section&id=VIII.%20Specific%20Progress%20in%20Consolidating%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Initiatives) The company actively promotes rural revitalization through various initiatives, including medical equipment donations, establishing medicinal material planting bases, investing in agricultural industrial parks, and driving local economic development - The company promotes rural revitalization through industrial assistance, with specific measures including - **Targeted Assistance**: Donating medical equipment worth approximately **RMB 350,000** to Nanxing Town Central Health Center in Leizhou City, Zhanjiang - **Industrial Drive**: Developing medicinal material planting base projects in Zhanjiang, Meizhou, Xinjiang, and other regions; investing in the Guangdong Lychee (Maoming, Shantou) Industrial Park; advancing production base projects in Meizhou, Longyan, Guizhou, and other areas[90](index=90&type=chunk) [Significant Matters](index=35&type=section&id=Section%205%20Significant%20Matters) This chapter details the company's significant commitments, related party transactions, use of raised funds, and other important matters, including ongoing commitments, trademark transfer progress, normal related party transactions, and the successful listing of Guangzhou Pharmaceutical on the New Third Board [Fulfillment of Commitments](index=35&type=section&id=I.%20Fulfillment%20of%20Commitments) The company and its controlling shareholder are fulfilling commitments related to the 2013 asset restructuring and Guangzhou Pharmaceutical's New Third Board listing, with most 'Wanglaoji' trademark transfers completed and performance commitment periods adjusted - Controlling shareholder GPHL's long-term commitments regarding maintaining the listed company's independence, avoiding horizontal competition, and regulating related party transactions are being fulfilled[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Regarding the commitment for 'Wanglaoji' trademark injection, asset delivery has been completed, and the performance commitment period was adjusted to 2019, 2021, and 2022; as of the end of the reporting period, **398** out of **418** trademarks have completed transfer procedures, with **20** still pending approval[99](index=99&type=chunk) [Significant Related Party Transactions](index=44&type=section&id=X.%20Significant%20Related%20Party%20Transactions) The company conducted normal related party transactions with joint ventures, associates, and common control entities at market prices, and approved a **RMB 150 million** capital increase in Baiyunshan Bio, maintaining its **50.00%** stake - The company engaged in daily related party transactions, including purchase/sale of goods and acceptance/provision of services, with affiliates such as Baiyunshan & Hutchison (joint venture), Yixintang (associate), and Huacheng Pharmaceutical (under common control)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - The company increased capital in Baiyunshan Bio by **RMB 150 million**, maintaining its **50.00%** shareholding post-investment; this transaction constitutes a related party transaction and the agreement was signed on June 30, 2025[117](index=117&type=chunk) [Explanation of Progress in Use of Raised Funds](index=49&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's 2016 non-public A-share offering raised **RMB 7.863 billion**, with **97.43%** utilized by June 30, 2025, primarily for 'Great Pharmaceutical' R&D, production bases, 'Wanglaoji' trademarks, and working capital Raised Funds Utilization Progress | Source of Raised Funds | Net Raised Funds (RMB 10,000 Yuan) | Cumulative Investment Amount (RMB 10,000 Yuan) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | | 2016 Non-public Offering | 786,344.65 | 766,170.29 | 97.43 | [Explanation of Other Significant Matters](index=54&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) A key event during the reporting period was the successful listing and public transfer of shares of the controlling subsidiary, Guangzhou Pharmaceutical Co., Ltd., on the New Third Board on May 20, 2025 - The shares of the company's controlling subsidiary, Guangzhou Pharmaceutical Co., Ltd., were successfully listed and publicly traded on the New Third Board on May 20, 2025[125](index=125&type=chunk) [Share Changes and Shareholder Information](index=56&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This chapter details the company's stable share capital structure, shareholder information, including **85,550** shareholders and the controlling shareholder's **45.04%** stake, and employee data, with **27,425** employees and **RMB 2.013 billion** in H1 wages [Shareholder Information](index=56&type=section&id=II.%20Shareholder%20Information) As of June 30, 2025, the company had **85,550** shareholders, with Guangzhou Pharmaceutical Holdings Limited and HKSCC Nominees Limited as the top two, holding **45.04%** and **13.52%** respectively Top Shareholders | Shareholder Name | Shares Held at Period End (shares) | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Guangzhou Pharmaceutical Holdings Limited | 732,305,103 | 45.04 | | HKSCC Nominees Limited | 219,783,142 | 13.52 | | Guangzhou Guoshou Urban Development Industrial Investment Enterprise | 67,576,183 | 4.16 | [Employee Information](index=60&type=section&id=IV.%20Employee%20Information%20of%20the%20Group) As of the reporting period end, the Group had **27,425** employees, with total wages of approximately **RMB 2.013 billion** in H1 2025, supported by performance-linked compensation and a comprehensive training system - As of June 30, 2025, the Group had **27,425** employees, with total wages for the first half of the year approximately **RMB 2.013 billion**[138](index=138&type=chunk) [Bond-Related Information](index=62&type=section&id=Section%207%20Bond-Related%20Information) This chapter confirms that the company had no bond-related activities during the reporting period - During the reporting period, the company had no bond-related information[145](index=145&type=chunk) [Financial Report (Unaudited)](index=62&type=section&id=Section%208%20Financial%20Report%20%28Unaudited%29) This chapter presents the company's unaudited 2025 interim consolidated and parent company financial statements, including the balance sheet, income statement, cash flow statement, and detailed notes on accounting policies, key items, and related party transactions [Consolidated Balance Sheet](index=63&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets increased by **0.90%** to **RMB 82.420 billion**, total liabilities decreased by **2.97%** to **RMB 42.608 billion**, and equity attributable to parent company shareholders grew by **5.17%** to **RMB 37.760 billion** Consolidated Balance Sheet Summary | Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | **Total Assets** | 82,419,655,052 | 81,683,611,521 | | **Total Liabilities** | 42,608,420,884 | 43,913,975,774 | | **Equity Attributable to Parent Company Shareholders** | 37,760,172,340 | 35,904,527,869 | [Consolidated Income Statement](index=65&type=section&id=Consolidated%20Income%20Statement) In H1 2025, operating revenue grew by **1.93%** to **RMB 41.835 billion**, but net profit attributable to the parent declined by **1.31%** to **RMB 2.516 billion**, despite decreases in sales and R&D expenses Consolidated Income Statement Summary | Item | Current Period (RMB Yuan) | Prior Period (RMB Yuan) | | :--- | :--- | :--- | | **Operating Revenue** | 41,834,546,113.81 | 41,042,815,087.95 | | **Operating Cost** | 34,171,307,857.09 | 33,244,055,666.85 | | **Selling Expenses** | 3,028,477,834.76 | 3,119,415,170.54 | | **R&D Expenses** | 285,285,159.35 | 391,145,311.41 | | **Net Profit Attributable to Parent Company Shareholders** | 2,516,140,986.67 | 2,549,565,302.08 | [Consolidated Cash Flow Statement](index=66&type=section&id=Consolidated%20Cash%20Flow%20Statement) In H1 2025, net cash flow from operating activities significantly increased its outflow to **RMB -3.397 billion**, investing activities had a net outflow of **RMB 4.723 billion**, while financing activities generated a net inflow of **RMB 1.918 billion**, with period-end cash and equivalents at **RMB 10.107 billion** Consolidated Cash Flow Statement Summary | Item | Current Period (RMB Yuan) | Prior Period (RMB Yuan) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | (3,397,136,268.03) | (2,036,740,494.59) | | **Net Cash Flow from Investing Activities** | (4,722,774,623.53) | (3,914,678,746.75) | | **Net Cash Flow from Financing Activities** | 1,918,310,698.76 | 595,081,664.61 | | **Cash and Cash Equivalents at Period End** | 10,106,808,592.20 | 14,471,487,165.36 | [Notes to Financial Statements](index=75&type=section&id=Notes%20to%20Financial%20Statements) The notes to the financial statements provide detailed explanations of the company's basic information, accounting policies, major consolidated financial statement items, segment reporting, related party transactions, and contingent liabilities - The notes provide detailed explanations of the revenue, profit, assets, and liabilities for the company's four business segments (Great Pharmaceutical, Great Health, Great Commercial, Other), offering data support for in-depth analysis of each segment's operating performance[528](index=528&type=chunk)[530](index=530&type=chunk) - The notes disclose detailed transaction information with related parties (including the parent company, joint ventures, and associates), covering purchase and sale of goods, provision and acceptance of services, and related party leases[510](index=510&type=chunk)[515](index=515&type=chunk) - Important contingent liabilities are disclosed in the notes, such as the dispute over 'Jinge' profit distribution where no consensus has been reached, and multiple ongoing litigation matters[523](index=523&type=chunk)[533](index=533&type=chunk)

```markdown Item I. [Definitions](index=4&type=section&id=Item%20I.%20Definitions) This chapter defines professional terms, company entity abbreviations, industry terms, and technical terms used in the report, providing a foundation for understanding the report content Item II. [Company Profile and Key Financial Indicators](index=7&type=section&id=Item%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's fundamental information and key financial performance, highlighting double-digit revenue and net profit growth, significant asset expansion due to private placement, and a decrease in operating cash flow I. [Basic Company Information](index=7&type=section&id=I.%20Basic%20Company%20Information) This chapter provides the company's basic business registration information, including Chinese and English names, legal representative, registered and office addresses, website, and contact details Basic Company Information Overview | Item | Information | | :--- | :--- | | **Chinese Name** | 上海凯赛生物技术股份有限公司 | | **Chinese Abbreviation** | 凯赛生物 | | **Stock Code** | 688065 | | **Listing Board** | 上海证券交易所科创板 | | **Legal Representative** | XIUCAI LIU(刘修才) | | **Registered Address** | 中国（上海）自由贸易试验区蔡伦路1690号5幢4楼 | | **Office Address** | 上海市闵行区绿洲环路396弄11号楼 | VI. [Key Accounting Data and Financial Indicators](index=9&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company achieved double-digit growth in operating revenue and net profit, primarily driven by increased sales of long-chain dibasic acid products; total assets and net assets significantly grew due to a 5.915 billion yuan private placement, while net cash flow from operating activities decreased Key Financial Performance Indicators | Key Financial Indicator | Current Period (Jan-Jun) (billion yuan) | Prior Period (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1.671 | 1.444 | 15.68% | | **Net Profit Attributable to Shareholders of Listed Company** | 0.309 | 0.247 | 24.74% | | **Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items)** | 0.296 | 0.240 | 23.67% | | **Net Cash Flow from Operating Activities** | 0.339 | 0.435 | -22.08% | | **Basic Earnings Per Share (yuan/share)** | 0.47 | 0.42 | 11.90% | | **R&D Investment as % of Operating Revenue (%)** | 7.37% | 6.93% | 0.44 percentage points | Key Balance Sheet Indicators | Asset and Liability Indicator | End of Current Period (billion yuan) | End of Prior Year (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | 23.821 | 19.021 | 25.23% | | **Net Assets Attributable to Shareholders of Listed Company** | 17.453 | 11.507 | 51.67% | - Performance growth was primarily driven by the continuous increase in sales volume of long-chain dibasic acid products, leading to higher sales revenue and gross profit. The significant increase in asset scale was mainly due to the completion of a private placement of A-shares during the reporting period, raising net proceeds of **5.915 billion yuan**[25](index=25&type=chunk) Non-recurring Gains and Losses Items | Non-recurring Item | Amount (yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 5,194,901.42 | | Government Grants | 8,514,558.81 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities | 2,251,132.80 | | Other Non-operating Income/Expenses | -3,651,967.36 | | **Total** | **12,214,396.82** | Item III. [Management Discussion and Analysis](index=11&type=section&id=Item%20III.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's industry position, operational performance, core competencies, and risk factors, highlighting its leadership in bio-based materials, strong financial growth, strategic partnerships, and key operational changes I. [Description of Industry and Main Business During the Reporting Period](index=11&type=section&id=I.%20Description%20of%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company is a global leader in bio-based new materials, leveraging synthetic biology for R&D, production, and sales, with core products including long-chain dibasic acids, bio-based pentanediamine, and bio-based polyamides, expanding into composites and bio-based piperidine, benefiting from national strategic support and carbon neutrality goals Main Products Overview | Main Product | Annual Capacity (thousand tons) | Application Areas | | :--- | :--- | :--- | | **Series of Bio-based Long-Chain Dibasic Acids (DC10-DC18)** | 115 | Long-chain nylon, plasticizers, lubricants, fragrances, etc. | | **Bio-based Pentanediamine** | 50 | Raw material for bio-based polyamide, epoxy curing agents, isocyanates, etc. | | **Series of Bio-based Polyamides** | 100 | Textiles (Tyrelon®), engineering materials (ECOPENT®), automotive, electronics, etc. | | **Bio-based Continuous Fiber Thermoplastic Composites** | - | New energy (battery casings, PV frames), automotive structural parts, transportation, etc. | | **Bio-based Piperidine** | - | Pharmaceuticals, pesticides, new materials, etc. | - The company's bio-manufacturing industry is designated by the state as a strategic emerging and future industry, receiving extensive policy support, including the '14th Five-Year Plan for Bioeconomy Development' and the 2025 government work report's mention of fostering future industries, indicating broad development prospects[39](index=39&type=chunk)[40](index=40&type=chunk)[64](index=64&type=chunk) - The company dominates the global market in bio-based long-chain dibasic acids (DC11-DC18), with increasing capacity utilization and market share for bio-based sebacic acid projects, and has achieved the world's first large-scale production of odd-carbon diamine (pentanediamine)[58](index=58&type=chunk) II. [Discussion and Analysis of Operations](index=17&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company's operations continued to improve, with operating revenue up **15.68%** and net profit attributable to parent up **24.74%**; R&D investment increased by **23.13%**, achieving significant progress across multiple projects; a private placement raised **5.915 billion yuan** from China Merchants Group, initiating comprehensive collaboration in bio-based new materials and fostering an industrial ecosystem, while actively promoting commercial applications of bio-based polyamides and composites with downstream clients Key Financial Performance Summary | Financial Indicator | Current Period (billion yuan) | YoY Growth (%) | | :--- | :--- | :--- | | **Operating Revenue** | 1.671 | 15.68% | | **Net Profit Attributable to Parent** | 0.309 | 24.74% | | **Net Profit Attributable to Parent (Excluding Non-recurring Items)** | 0.296 | 23.67% | - The company's R&D investment continued to increase, with **0.123 billion yuan** invested in H1 2025, a **23.13%** YoY increase, accounting for **7.37%** of revenue, achieving significant progress in green dibasic acids, bio-based piperidine, and bio-based polyamide composites[66](index=66&type=chunk) - The company introduced China Merchants Group through a private placement, raising **5.915 billion yuan**, with Shanghai Yaoxiu becoming the controlling shareholder; both parties have initiated comprehensive cooperation and signed a tripartite strategic agreement with Hefei Municipal Government to build a synthetic biomaterials industrial cluster[68](index=68&type=chunk) III. [Analysis of Core Competencies During the Reporting Period](index=18&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies span technology, industrialization experience, full industry chain, cost efficiency, green production, and business layout; it possesses globally leading synthetic biology technology with **516 patents** and a complete value chain from monomers to polymers and composites, further strengthening its industry leadership through the strategic partnership with China Merchants Group - The company possesses a complete industry chain from polyamide monomers (long-chain dibasic acid/pentanediamine) to polyamides and then to composite materials, with independent control over core raw materials, ensuring supply stability and cost advantages[74](index=74&type=chunk)[75](index=75&type=chunk) - The company holds a globally leading technological position, possessing **516 patents** as of the end of the reporting period, including **400 invention patents**, with R&D teams across biology, chemistry, materials, and engineering fields[71](index=71&type=chunk) - The company introduced China Merchants Group as a strategic investor, raising **5.915 billion yuan**, with both parties committing to deep collaboration to develop bio-based polyamides and their composites as foundational materials for the dual-carbon era, also partnering with Hefei Municipal Government and China Merchants Venture to build a synthetic biomaterials industrial cluster[77](index=77&type=chunk)[78](index=78&type=chunk) R&D Investment Overview | R&D Investment | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | **Expensed R&D Investment (yuan)** | 123,198,537.35 | 100,053,981.57 | 23.13 | | **Total R&D Investment as % of Operating Revenue (%)** | 7.37 | 6.93 | 0.44 percentage points | IV. [Risk Factors](index=26&type=section&id=IV.%20Risk%20Factors) The company faces core risks including talent loss, core technology leakage, and R&D obsolescence; operational risks involve raw material price fluctuations, underperforming new projects and product launches, and safety/environmental compliance; financial risks include accounts receivable impairment, inventory write-downs, exchange rate volatility, and increased depreciation from new fixed assets; macroeconomic, industrial policy, and international trade changes also pose potential risks - **Core Competency Risks**: Include loss of technical personnel, leakage of core technologies, and the risk of R&D lagging due to industry technological innovation[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) - **Operational Risks**: Include fluctuations in raw material (alkanes, corn) prices, slower-than-expected construction or production ramp-up of new projects (e.g., **500 thousand tons** of pentanediamine and **900 thousand tons** of polyamide), and slower-than-anticipated industrialization and promotion of bio-based new materials leading to unabsorbed capacity[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - **Financial Risks**: Include bad debts from accounts receivable, inventory write-downs, RMB exchange rate fluctuations, gross margin volatility, and the risk of performance decline due to significant increases in depreciation after construction-in-progress projects are capitalized[106](index=106&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk) - **Macroeconomic Environment Risks**: The company has a high proportion of export business, facing risks from import/export policies such as tariffs and changes in the international trade environment; the report notes that while the US imposed additional tariffs on Chinese goods in 2025, the company's main export to the US, long-chain dibasic acid, is on the tariff exemption list, resulting in minimal short-term impact[116](index=116&type=chunk)[117](index=117&type=chunk) V. [Key Operating Conditions During the Reporting Period](index=30&type=section&id=V.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) This chapter analyzes changes in financial statement items, revealing shifts in the company's operating conditions; during the period, revenue and costs grew in tandem, while finance expenses significantly decreased due to substantial interest income from raised funds; cash outflow from investing activities notably increased for structured deposits, and cash inflow from financing activities surged due to a **5.915 billion yuan** private placement, leading to major changes in asset-liability structure with significant increases in monetary funds and financial assets at fair value through profit or loss, and a substantial reduction in short-term borrowings Key Financial Statement Item Changes | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,670,767,942.21 | 1,444,292,958.19 | 15.68 | 业务增长 | | **Finance Expenses** | -83,715,979.60 | -71,010,724.91 | 不适用 | 募集资金到账，利息收入增加 | | **Net Cash Flow from Investing Activities** | -1,473,632,247.29 | -534,671,303.37 | 不适用 | 使用闲置募集资金购买结构性存款 | | **Net Cash Flow from Financing Activities** | 4,636,232,957.76 | -293,516,578.98 | 不适用 | 完成定向增发，募集资金到账 | Key Asset and Liability Item Changes | Asset/Liability Item | Amount at End of Current Period (million yuan) | % of Total Assets | Change from Prior Year-End (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | **Monetary Funds** | 872.03 | 36.61 | 63.09 | 定增募集资金到账 | | **Financial Assets at Fair Value Through Profit or Loss** | 110.26 | 4.63 | 234,904.58 | 使用闲置募集资金购买结构性存款 | | **Short-term Borrowings** | 5.04 | 0.21 | -95.96 | 使用募集资金偿还短期借款 | - Among the company's main controlled subsidiaries, Cathay (Jinxiang), Cathay (Wusu) Technology, and Cathay (Taiyuan) Technology were profitable during the reporting period, while Cathay (Wusu) Materials and Cathay (Taiyuan) Materials incurred losses[137](index=137&type=chunk)[138](index=138&type=chunk) Item IV. [Corporate Governance, Environment, and Society](index=36&type=section&id=Item%20IV.%20Corporate%20Governance,%20Environment,%20and%20Society) This section details changes in the company's senior management and board, confirms no semi-annual profit distribution plan, and outlines environmental information disclosure compliance for the company and its key subsidiaries I. [Changes in the Company's Directors, Supervisors, Senior Management, and Core Technical Personnel](index=36&type=section&id=I.%20Changes%20in%20the%20Company's%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) During the reporting period, the company appointed a new Vice President and Chief Financial Officer, and added two non-independent directors to optimize its management team structure and meet development needs - In April 2025, the company appointed Mr. Zeng Yuan as Vice President and Ms. Yang Wenying as Chief Financial Officer[142](index=142&type=chunk) - At the shareholders' meeting in May 2025, Mr. Deng Weidong and Mr. Lu Yiyang were elected as non-independent directors of the company's second board of directors[143](index=143&type=chunk) II. [Profit Distribution or Capital Reserve to Share Capitalization Plan](index=36&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capitalization%20Plan) The company has no profit distribution or capital reserve to share capitalization plan for the first half of 2025 - The company's proposed semi-annual profit distribution plan and capital reserve to share capitalization plan are 'No'[144](index=144&type=chunk) IV. [Environmental Information of Listed Companies and Their Main Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=37&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Main%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company and its four main subsidiaries, Cathay (Jinxiang), Cathay (Wusu) Biomaterials, Cathay (Wusu) Biotechnology, and Cathay (Taiyuan) Biomaterials, are all included in the list of enterprises required to disclose environmental information by law and have complied with disclosure requirements - A total of **4** of the company's entities are included in the list of enterprises required to disclose environmental information by law, with relevant reports available for inquiry on designated official systems[146](index=146&type=chunk) Item V. [Significant Matters](index=38&type=section&id=Item%20V.%20Significant%20Matters) This section covers the company's fulfillment of commitments, ongoing significant litigation, progress in utilizing raised funds, including project delays, and the strategic importance of the recent private placement and partnership with China Merchants Group I. [Fulfillment of Commitments](index=38&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, the company and related parties strictly fulfilled all commitments, including Shanghai Yaoxiu's pledge to lock up newly issued shares for **60 months** from the issuance completion date, and initial public offering shareholders like CIB and the actual controller also complied with share reduction commitments - Acquirer Shanghai Yaoxiu committed that the newly subscribed shares will be locked up for **60 months** from March 31, 2025, until their release on March 30, 2030[149](index=149&type=chunk)[157](index=157&type=chunk) - China Merchants Group committed that its limited partnership interest in Shanghai Yaoxiu will not be transferred externally within **60 months** from the completion date of this non-public offering[157](index=157&type=chunk) VII. [Significant Litigation and Arbitration Matters](index=48&type=section&id=VII.%20Significant%20Litigation%20and%20Arbitration%20Matters) The company is involved in two significant trade secret infringement lawsuits as the plaintiff against Shandong Hanlin and its affiliates, with cases involving **78.35 million yuan** and **0.502 billion yuan** respectively, both currently under trial with no judgments yet rendered Litigation Summary | Cause of Action | Defendant | Amount Involved (yuan) | Case Progress | | :--- | :--- | :--- | :--- | | Trade Secret Infringement | Hanlin, Cao Wubo, etc. | 78,350,000.00 | Second instance trial in progress | | Trade Secret Infringement | Hanlin, Laiyang Shanhe, etc. | 501,898,875.69 | First instance trial in progress | XII. [Explanation of Progress in Use of Raised Funds](index=54&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) During the reporting period, proceeds from both the initial public offering and private placement were utilized as planned; IPO funds' cumulative investment progress exceeded **100%** with some projects concluded, while the **5.915 billion yuan** from the private placement was almost entirely used for working capital, and the 'Annual Production of **500 thousand tons** Bio-based Pentanediamine and **900 thousand tons** Bio-based Polyamide Project' completion date was extended to December 31, 2025, due to park infrastructure construction and other factors Summary of Raised Funds Utilization | Source of Raised Funds | Net Proceeds (million yuan) | Total Cumulative Investment (million yuan) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | | **Initial Public Offering** | 5,279.99 | 5,448.19 | 103.19 | | **Private Placement** | 5,914.73 | 5,920.80 | 100.10 | - The 'Annual Production of **500 thousand tons** Bio-based Pentanediamine and **900 thousand tons** Bio-based Polyamide Project' completion date was extended from December 31, 2024, to December 31, 2025, due to the construction of supporting infrastructure in the industrial park and the process of customer demand release[171](index=171&type=chunk) XIII. [Explanation of Other Significant Matters](index=58&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The most significant event during the reporting period was the company's successful A-share issuance to Shanghai Yaoxiu, raising funds and introducing China Merchants Group as a strategic partner, aiming to deepen collaboration in transportation, logistics, new energy, and high-end manufacturing to jointly advance bio-based polyamides and composites, fostering green new productive forces - The company's issuance of **137,911,755** A-shares to Shanghai Yaoxiu has been registered, leading to the supplementary election of Mr. Deng Weidong and Mr. Lu Yiyang from the China Merchants Group as non-independent directors[176](index=176&type=chunk)[526](index=526&type=chunk) - The company and China Merchants Group will collaborate deeply in transportation, logistics, real estate, new energy, and high-end manufacturing, striving to develop bio-based polyamides and their composites as foundational bio-based materials for the dual-carbon era[177](index=177&type=chunk)[527](index=527&type=chunk) Item VI. [Share Changes and Shareholder Information](index=60&type=section&id=Item%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details the increase in the company's total share capital due to a private placement, resulting in a new controlling shareholder and changes in the top ten shareholder structure I. [Changes in Share Capital](index=60&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital increased due to a private placement of A-shares, with total shares rising from **583 million** to **721 million**, adding **138 million** restricted shares - On March 31, 2025, the company completed a private placement of A-shares, adding **137,911,755** shares, all of which are restricted shares[181](index=181&type=chunk) Share Capital Changes | Share Class | Before This Change | Increase/Decrease in This Change | After This Change | | :--- | :--- | :--- | :--- | | **Restricted Shares** | 0 | +137,911,755 | 137,911,755 | | **Unrestricted Tradable Shares** | 583,378,039 | 0 | 583,378,039 | | **Total Share Capital** | **583,378,039** | **+137,911,755** | **721,289,794** | II. [Shareholder Information](index=61&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **11,714** shareholders; among the top ten, Shanghai Yaoxiu Biotechnology Partnership (Limited Partnership) became the largest and controlling shareholder with a **35.29%** stake, followed by Shanxi Lu'an Mining Group and Cathay Industrial Biotech Ltd. as the second and third largest shareholders - As of the end of the reporting period, the company had a total of **11,714** common shareholders[184](index=184&type=chunk) Shareholder Details | Shareholder Name | Number of Shares Held | Proportion (%) | Nature of Shares | | :--- | :--- | :--- | :--- | | **Shanghai Yaoxiu Biotechnology Partnership (Limited Partnership)** | 254,567,395 | 35.29 | Other | | **Shanxi Lu'an Mining (Group) Co., Ltd.** | 52,007,550 | 7.21 | State-owned Legal Entity | | **Cathay Industrial Biotech Ltd.** | 48,543,681 | 6.73 | Foreign Legal Entity | | **Shanxi Science and Technology Innovation City Investment and Development Co., Ltd.** | 40,139,958 | 5.57 | State-owned Legal Entity | | **HBM Healthcare Investments (Cayman) Ltd.** | 35,621,436 | 4.94 | Foreign Legal Entity | - The largest shareholder, Shanghai Yaoxiu, and the third largest shareholder, Cathay Industrial Biotech Ltd., are both controlled by the family of the company's actual controller, Liu Xiucai[187](index=187&type=chunk) Item VII. [Bond-Related Information](index=68&type=section&id=Item%20VII.%20Bond-Related%20Information) This section confirms that the company had no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period I. [Corporate Bonds and Other Debt Instruments](index=68&type=section&id=I.%20Corporate%20Bonds%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no outstanding corporate bonds, enterprise bonds, or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[198](index=198&type=chunk) II. [Convertible Corporate Bonds](index=68&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[198](index=198&type=chunk) Item VIII. [Financial Report](index=69&type=section&id=Item%20VIII.%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements, including detailed notes on key items such as significant increases in monetary funds and owners' equity due to private placement, and the status of major construction-in-progress projects II. [Financial Statements](index=69&type=section&id=II.%20Financial%20Statements) This chapter presents the company's unaudited consolidated and parent company financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, showing significant growth in total assets and owners' equity due to a private placement, steady increase in operating revenue, and year-on-year net profit growth Key Consolidated Income Statement Items (yuan) | Key Consolidated Income Statement Items (yuan) | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | **Total Operating Revenue** | 1,670,767,942.21 | 1,444,292,958.19 | | **Total Operating Costs** | 1,283,596,878.98 | 1,153,083,688.62 | | **Total Profit** | 342,112,439.58 | 280,867,987.80 | | **Net Profit** | 284,191,771.38 | 244,107,412.58 | | **Net Profit Attributable to Parent Company Shareholders** | 308,667,050.28 | 247,445,607.49 | Key Consolidated Balance Sheet Items (yuan) | Key Consolidated Balance Sheet Items (yuan) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | 23,821,182,667.75 | 19,021,477,349.64 | | **Total Liabilities** | 2,746,393,442.69 | 3,920,405,139.91 | | **Total Owners' Equity Attributable to Parent Company** | 17,452,567,422.38 | 11,507,005,495.25 | | **Total Owners' Equity** | 21,074,789,225.06 | 15,101,072,209.73 | Key Consolidated Cash Flow Statement Items (yuan) | Key Consolidated Cash Flow Statement Items (yuan) | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 339,313,855.32 | 435,458,412.19 | | **Net Cash Flow from Investing Activities** | -1,473,632,247.29 | -534,671,303.37 | | **Net Cash Flow from Financing Activities** | 4,636,232,957.76 | -293,516,578.98 | | **Net Increase in Cash and Cash Equivalents** | 3,497,809,332.12 | -382,002,493.36 | VII. [Notes to Consolidated Financial Statements](index=107&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) This chapter provides detailed explanations for key items in the consolidated financial statements; period-end monetary funds significantly increased to **8.72 billion yuan** due to private placement proceeds, financial assets at fair value through profit or loss rose to **1.10 billion yuan** from structured deposits, and construction-in-progress balance reached **6.15 billion yuan** for two major projects; short-term borrowings decreased by **95.96%** due to repayment with raised funds, while share capital and capital reserves significantly increased from the private placement - Period-end monetary funds totaled **8.720 billion yuan**, a **63.09%** increase from the beginning of the period, primarily due to the receipt of private placement proceeds[128](index=128&type=chunk)[323](index=323&type=chunk) - Period-end construction-in-progress book value was **6.147 billion yuan**, mainly comprising the 'Annual Production of **2.4 million tons** Corn Deep Processing' project and the 'Annual Production of **500 thousand tons** Bio-based Pentanediamine and **900 thousand tons** Bio-based Polyamide' project[381](index=381&type=chunk)[383](index=383&type=chunk) - Following the completion of a private placement of **138 million** A-shares, the company's share capital increased to **721 million** shares, and capital reserves (share premium) increased by **5.777 billion yuan**[425](index=425&type=chunk)[428](index=428&type=chunk) ```

[Definitions](index=4&type=section&id=Section%201%20Definitions) This chapter defines key terms and company abbreviations, covering X-ray technology, components, medical imaging, and subsidiaries, essential for report comprehension - This chapter defines professional terms and company entity abbreviations, covering X-ray technology, key components, medical imaging equipment, industry standards, and company subsidiaries, providing a basis for understanding the report content[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=10&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's basic information, key financial data, and details on non-recurring gains and losses for the reporting period [Basic Company Information](index=10&type=section&id=I.%20Basic%20Company%20Information) This chapter provides the company's basic business information, including names, legal representative, and addresses, noting a change in registered address during the period - The company's full name is **iRay Technology Group Co., Ltd.**, with Tieer Gu as its legal representative[18](index=18&type=chunk) - In February 2025, the company's registered address changed from 'Room 202, Building 9, No. 590 Ruiqing Road, Pudong New Area, Shanghai' to 'No. 999 Huanqiao Road, Pudong New Area, Shanghai'[18](index=18&type=chunk) [Key Accounting Data and Financial Indicators](index=11&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue grew by **3.94%**, net profit attributable to shareholders increased by **8.82%**, and net cash flow from operating activities surged by **340.20%** due to increased customer deposits and sales collections, while non-recurring adjusted net profit decreased by **2.11%** Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 1,066,611,820.18 | RMB 1,026,151,704.71 | 3.94% | | Net Profit Attributable to Shareholders of Listed Company | RMB 334,567,467.70 | RMB 307,441,804.39 | 8.82% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | RMB 328,308,023.36 | RMB 335,380,730.02 | -2.11% | | Net Cash Flow from Operating Activities | RMB 817,732,776.49 | RMB 185,763,701.58 | 340.20% | | Total Assets (End of Reporting Period) | RMB 9,804,974,935.43 | RMB 9,083,006,463.92 | 7.95% | Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 1.67 | 1.54 | 8.44% | | Diluted Earnings Per Share (RMB/share) | 1.66 | 1.51 | 9.93% | | Weighted Average Return on Net Assets (%) | 6.93% | 6.92% | Increase 0.01 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 14.46% | 14.92% | Decrease 0.46 percentage points | [Non-Recurring Gains and Losses Items and Amounts](index=11&type=section&id=VIII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **RMB 6.2594 million**, primarily comprising government subsidies, fair value changes in financial assets, and other non-operating income and expenses Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Items | Amount (RMB) | | :--- | :--- | | Government Subsidies Included in Current Profit and Loss | 7,408,591.20 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | -1,895,459.42 | | Other Non-Operating Income and Expenses | 2,104,372.66 | | Income Tax Impact | -321,313.05 | | Impact on Minority Interests (After Tax) | -1,036,441.02 | | **Total** | **6,259,444.34** | [Management Discussion and Analysis](index=13&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's industry, operational performance, core competencies, risk factors, and key financial and operational highlights during the reporting period [Industry and Main Business Overview](index=13&type=section&id=I.%20Explanation%20of%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company is a mid-stream supplier of X-ray imaging equipment core components and solutions, specializing in digital X-ray detectors, high-voltage generators, and X-ray tubes, with a leading global market share in digital X-ray detectors and expanding into other core components to build vertical integration advantages, while the industry trends towards broader applications, supply chain shifts to China, and dynamic and 3D imaging technologies - The company operates in the mid-stream of the X-ray imaging equipment industry, primarily engaged in the R&D, production, and sales of core components such as digital X-ray detectors, high-voltage generators, and X-ray tubes[31](index=31&type=chunk)[33](index=33&type=chunk) Global X-ray Core Component Market Size Forecast (by Sales Revenue) | X-ray Core Component Global Market Size Forecast (by Sales Revenue) | 2021/2023 | 2030 Forecast | CAGR | | :--- | :--- | :--- | :--- | | Digital X-ray Detectors | 2.28 billion USD (2021) | 5.03 billion USD | 9.3% (2022-2030) | | High-Voltage Generators | 0.79 billion USD (2021) | 1.30 billion USD | 6.3% (2022-2030) | | X-ray Tubes | 4.26 billion USD (2023) | 9.53 billion USD | 12.18% (2023-2030) | | Combined X-ray Sources | 2.39 billion USD (2021) | 7.41 billion USD | 14.3% (2022-2030) | - The company holds a leading global market share in digital X-ray detectors, reaching **19.83%** in 2024, and ranks first in the domestic market[55](index=55&type=chunk) - The company's product lines cover both medical (general radiography, dental, mammography, radiotherapy) and industrial (non-destructive testing, security inspection) fields, mastering four major sensor technologies: amorphous silicon, IGZO, CMOS, and flexible substrates[64](index=64&type=chunk) [Discussion and Analysis of Operations](index=26&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) In the first half of 2025, the company advanced high-quality development amidst a complex macro environment, making progress in R&D, market expansion, supply chain optimization, financial internal control, and human resource system development, with R&D investment reaching **RMB 154 million** (14.46% of revenue), new core components and solutions business growing over **50%**, and the global '1 headquarters + 6 bases' layout accelerating - During the reporting period, the company's R&D investment was **RMB 154 million**, accounting for **14.46%** of operating revenue, with **70** new IP authorizations, including **32** invention patents[85](index=85&type=chunk) - In market expansion, new core components and solutions businesses, such as high-voltage generators and combined X-ray sources, achieved significant growth, with a year-on-year increase of over **50%**[89](index=89&type=chunk) - Regarding the supply chain, the company's global '1 headquarters + 6 bases' layout is accelerating, with **6** factory locations worldwide, enhancing production and operational efficiency through digital means[90](index=90&type=chunk)[91](index=91&type=chunk) [Analysis of Core Competencies](index=28&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies are primarily in five areas: technological advantages (mastering various X-ray core component technologies), talent advantages (a high-caliber R&D team of **633**), customer resource advantages (stable collaborations with renowned domestic and international manufacturers), product quality advantages (multiple international quality system certifications), and customer service advantages (a global service network) - Technological Advantage: The company is one of the few global manufacturers of digital X-ray detectors mastering all major core technologies, including TFT, CMOS sensors, scintillator materials, and readout chips, having established an X-ray core technology matrix spanning multiple product areas[94](index=94&type=chunk) - Talent Advantage: As of the end of the reporting period, the company had **633** R&D personnel, accounting for **30.24%** of the total workforce, with **33.97%** holding master's degrees or higher[95](index=95&type=chunk)[119](index=119&type=chunk) - Customer Resource Advantage: The company has established strong, high-stickiness cooperative relationships with renowned domestic and international manufacturers such as Konica, Carestream, GE Healthcare, Siemens, Philips, United Imaging Healthcare, and CATL[97](index=97&type=chunk)[98](index=98&type=chunk) [Risk Factors](index=38&type=section&id=IV.%20Risk%20Factors) The company faces five main categories of risks: core competency risks (new technology development, technology substitution, talent loss), operational risks (raw material supply, intellectual property, expansion management), financial risks (accounts receivable, gross margin fluctuations, tax policies, exchange rates, inventory, debt ratio), market risks (industry prosperity, product price decline, market competition), and macroeconomic environment risks (trade friction, industrial policy changes) - Core Competency Risk: Rapid technological iteration in the industry poses a risk of weakened market competitiveness if the company fails to launch innovative products promptly, alongside high R&D investment and the risk of project failure or uncompetitive new products[120](index=120&type=chunk) - Financial Risk: Accounts receivable book value at the end of the reporting period was **RMB 835 million**, accounting for **8.52%** of total assets and growing rapidly; the asset-liability ratio was **50.54%**, with high interest-bearing debt potentially increasing financial expenses and risks[131](index=131&type=chunk)[137](index=137&type=chunk) - Construction in Progress Risk: As of the end of the reporting period, construction in progress amounted to **RMB 2.753 billion**, which upon completion will significantly increase depreciation and amortization, potentially impacting operating performance if revenue falls short of expectations[129](index=129&type=chunk) - Market Risk: Intensified industry competition and localization efforts may lead to continuous product price declines, posing risks to the company's gross margin and profitability if cost control or product upgrades fail to keep pace[139](index=139&type=chunk)[140](index=140&type=chunk) [Key Operating Conditions](index=42&type=section&id=V.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) This chapter provides a detailed analysis of the company's financial status during the reporting period, highlighting a **340.20%** increase in net cash flow from operating activities due to customer performance deposits and increased sales collections, a **48.77%** decrease in net cash outflow from investing activities due to lower payments for construction and equipment, and a shift from positive to negative net cash flow from financing activities primarily due to significant long-term borrowings in the prior period and repayment of short-term borrowings in the current period Cash Flow Statement Key Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 817,732,776.49 | 185,763,701.58 | 340.20 | Primarily due to receipt of customer performance deposits and increased sales collections | | Net Cash Flow from Investing Activities | -412,267,548.59 | -804,725,510.10 | 48.77 | Primarily due to lower payments for construction and equipment purchases compared to the prior period | | Net Cash Flow from Financing Activities | -259,815,246.03 | 596,530,542.04 | -143.55 | Primarily due to a larger increase in long-term borrowings in the prior period and repayment of some short-term borrowings in the current period | Asset/Liability Key Items | Asset/Liability Item | Amount at End of Current Period (RMB) | Amount at End of Prior Period (RMB) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Other Payables | 578,892,691.13 | 26,734,329.13 | 2,065.35 | Due to receipt of performance deposits | | Fixed Assets | 1,950,965,264.11 | 1,440,622,330.63 | 35.43 | Due to transfer of construction in progress to fixed assets upon reaching intended usable state | | Long-term Equity Investments | 118,421,062.29 | 72,313,374.68 | 63.76 | Due to new external investments | [Corporate Governance, Environment, and Society](index=49&type=section&id=Section%204%20Corporate%20Governance,%2C%20Environment%2C%20and%20Society) This section details changes in the company's directors, supervisors, senior management, and core technical personnel, along with the proposed profit distribution plan for the reporting period [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=49&type=section&id=I.%20Changes%20in%20Company%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) During the reporting period, there were no changes in the company's directors, supervisors, senior management, or core technical personnel, whose identification criteria are primarily based on their contributions to core technology R&D, project leadership, intellectual property, and industry experience - There were no changes in the company's directors, supervisors, senior management, or core technical personnel during the reporting period[172](index=172&type=chunk) [Profit Distribution Plan](index=49&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Increase%20Plan) The company has no proposed profit distribution or capital reserve to share capital increase plan for the first half of 2025 - The proposed profit distribution and capital reserve to share capital increase plan for the first half of 2025 is **'No'**[173](index=173&type=chunk) [Significant Matters](index=51&type=section&id=Section%205%20Significant%20Matters) This section covers the fulfillment of commitments, major litigation, significant related-party transactions, and the progress of raised funds utilization during the reporting period [Fulfillment of Commitments](index=51&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, the company's actual controllers, shareholders, directors, supervisors, and senior management strictly fulfilled all commitments made during initial public offerings, refinancing, and equity incentive activities, including share lock-ups, avoidance of horizontal competition, and regulation of related-party transactions, with no breaches observed - The company's actual controllers, shareholders, directors, supervisors, and other related parties strictly fulfilled all commitments, including share lock-ups, avoidance of horizontal competition, and regulation of related-party transactions, during the reporting period[177](index=177&type=chunk) [Major Litigation and Arbitration Matters](index=59&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) The lawsuit involving the company's Korean subsidiary (iRay Korea) and its representative director has concluded, with the Korean prosecution not appealing the second instance's acquittal, which became effective on April 17, 2025 - The second instance court's acquittal in the lawsuit against iRay Korea and its representative director became effective on **April 17, 2025**, concluding the case[210](index=210&type=chunk) [Significant Related-Party Transactions](index=60&type=section&id=X.%20Significant%20Related-Party%20Transactions) During the reporting period, the company engaged in several related-party transactions related to daily operations, including sales, purchases, leases, and performance deposits, with notable transactions being sales to SeeYa Technology and collection of significant performance deposits, purchases from E-ray Co., Ltd., and a joint external investment with related parties in Haining Kaitu Semiconductor Co., Ltd Related-Party Transaction Details | Related-Party Transaction Type | Related Party | Cumulative Amount for 2025 (RMB in ten thousands) | | :--- | :--- | :--- | | Sales of Products to Related Parties | Shenzhen Phison Technology Co., Ltd. | 2,020.64 | | Collection of Performance Deposits | SeeYa Technology Co., Ltd. | 56,552.94 | | Purchases of Goods from Related Parties | E-ray Co., Ltd. | 2,745.65 | - The company, through its wholly-owned subsidiary iRay Hefei, invested **RMB 20 million** in Haining Kaitu Semiconductor Co., Ltd., acquiring an **18.18%** stake, which constitutes a joint investment with a related party[214](index=214&type=chunk) [Explanation of Progress in Use of Raised Funds](index=63&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company provided an explanation of the use of proceeds from its initial public offering and convertible bond issuance, with cumulative investment progress at **92.55%** for IPO proceeds and **87.55%** for convertible bond proceeds as of the end of the reporting period, and some projects, such as the 'New Detector and Scintillator Material Industrialization Project,' having applied for extensions Raised Funds Utilization Progress | Source of Raised Funds | Net Proceeds (RMB in ten thousands) | Cumulative Investment at End of Reporting Period (RMB in ten thousands) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | | Initial Public Offering (IPO) | 198,616.94 | 183,821.22 | 92.55% | | Issuance of Convertible Bonds | 142,131.35 | 124,434.31 | 87.55% | [Share Changes and Shareholder Information](index=66&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This section provides an overview of the company's share capital changes and detailed shareholder information, including the top ten shareholders [Share Capital Changes](index=66&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital increased from **143 million** shares to **200 million** shares, primarily due to the implementation of the 2024 annual capital reserve to share capital increase plan (0.4 shares per share) and a small number of 'iRay Convertible Bonds' converting into company shares - The company's total share capital increased by **57,155,546** shares due to the capital reserve to share capital increase plan (0.4 shares per share)[227](index=227&type=chunk)[228](index=228&type=chunk) - During the reporting period, a cumulative total of **6** 'iRay Convertible Bonds' were converted into shares[228](index=228&type=chunk) [Shareholder Information](index=67&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **6,990** common shareholders, with Shanghai Yiyuan Herui Investment Consulting Co., Ltd. being the largest shareholder holding **16.33%**, and the top ten shareholders largely comprising company-affiliated investment platforms, employee stock ownership platforms, and institutional investors Top Shareholders | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | Shanghai Yiyuan Herui Investment Consulting Co., Ltd. | 32,696,549 | 16.33 | | Tianjin Sequoia Juye Equity Investment Partnership | 11,785,883 | 5.89 | | Hainan Heyi Investment Co., Ltd. | 11,721,318 | 5.85 | | Shanghai Changze Management Consulting Partnership | 10,668,085 | 5.33 | | Beijing Sequoia Xinyuan Equity Investment Center | 5,547,286 | 2.77 | [Bond-Related Information](index=71&type=section&id=Section%207%20Bond-Related%20Information) This section provides details on the company's convertible bonds, including issuance terms, conversion status, and adjustments to the conversion price [Convertible Corporate Bonds](index=71&type=section&id=II.%20Convertible%20Corporate%20Bonds) The company issued **RMB 1.435 billion** in convertible corporate bonds, 'iRay Convertible Bonds' (code 118025), in October 2022; as of the end of the reporting period, there were **5,342** bondholders, with **99.07%** of the bonds yet to be converted, and the conversion price was adjusted to **RMB 115.50/share** on June 19, 2025, due to the 2024 profit distribution and capital reserve to share capital increase plan - The company's 'iRay Convertible Bonds' have a total value of **RMB 1.435 billion**, a 6-year term, and were listed for trading on **November 18, 2022**[239](index=239&type=chunk) Convertible Bond Status | Metric | Value | | :--- | :--- | | Amount Converted in Reporting Period | RMB 1,000 | | Cumulative Shares Converted | 57,686 shares | | Unconverted Bond Amount | RMB 1,421,735,000 | | Percentage of Unconverted Bonds to Total Issuance | 99.0749% | - Due to the implementation of the 2024 annual profit distribution and capital reserve to share capital increase plan, the conversion price was adjusted from **RMB 162.64/share** to **RMB 115.50/share** on **June 19, 2025**[246](index=246&type=chunk) [Financial Report](index=75&type=section&id=Section%208%20Financial%20Report) This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owner's equity, along with significant accounting policies and detailed notes to the consolidated financial statements [Financial Statements](index=75&type=section&id=II.%20Financial%20Statements) This chapter provides the company's unaudited 2025 semi-annual consolidated and parent company financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owner's equity, reflecting the company's financial position, operating results, and cash flows during the reporting period Key Items from Consolidated Balance Sheet (2025-06-30) | Key Items from Consolidated Balance Sheet (2025-06-30) | Amount (RMB) | | :--- | :--- | | Total Assets | 9,804,974,935.43 | | Total Liabilities | 4,955,562,542.36 | | Total Equity Attributable to Parent Company Owners | 4,851,035,642.02 | Key Items from Consolidated Income Statement (Jan-Jun 2025) | Key Items from Consolidated Income Statement (Jan-Jun 2025) | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 1,066,611,820.18 | | Total Profit | 366,795,900.81 | | Net Profit | 324,998,931.52 | | Net Profit Attributable to Parent Company Shareholders | 334,567,467.70 | [Significant Accounting Policies and Estimates](index=91&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This chapter elaborates on the company's fundamental accounting principles, including enterprise accounting standards, accounting period, and functional currency, used for financial statement preparation, and explains accounting policies and estimates for key items such as financial instruments, inventories, long-term equity investments, fixed assets, intangible assets, revenue recognition, and government grants, noting no significant changes in accounting policies during the reporting period - Financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards[281](index=281&type=chunk)[282](index=282&type=chunk) - Revenue Recognition Policy: The company recognizes revenue when customers obtain control of the related goods or services, with domestic sales recognized upon customer receipt and international sales upon completion of customs declaration[352](index=352&type=chunk)[354](index=354&type=chunk) - Financial Instrument Impairment: The company applies impairment accounting for financial assets measured at amortized cost based on expected credit losses, and for accounts receivable and contract assets, loss provisions are always measured at the amount of expected credit losses over their entire lifetime[312](index=312&type=chunk) [Notes to Consolidated Financial Statement Items](index=112&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This chapter provides detailed notes and explanations for major items in the consolidated financial statements, including the composition, changes, and related details of monetary funds, accounts receivable, inventories, fixed assets, construction in progress, short-term borrowings, bonds payable, share capital, capital reserves, and operating revenue and costs, offering essential supplementary information for understanding the financial statement data - The top five accounts receivable balances at period-end collectively accounted for **23.13%** of the total, with bad debt provisions calculated based on individual and aging portfolio methods[397](index=397&type=chunk)[403](index=403&type=chunk) - The balance of construction in progress at period-end was **RMB 2.753 billion**, primarily for the 'New Detector and Scintillator Material Industrialization Project' and the 'Digital X-ray Detector Key Technology R&D and Comprehensive Innovation Base Construction Project'[454](index=454&type=chunk) - Other payables significantly increased to **RMB 579 million** at period-end, primarily due to the receipt of **RMB 567 million** in deposits and guarantees[499](index=499&type=chunk)

[Important Notice, Table of Contents and Definitions](index=2&type=section&id=Item%201.%20Important%20Notice%2C%20Table%20of%20Contents%20and%20Definitions) This section provides essential preliminary information, including the table of contents and definitions [Company Profile and Key Financial Indicators](index=6&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section introduces the company's background and presents its key financial performance metrics [Company Profile](index=6&type=section&id=1.%20Company%20Profile) Hao Xiang Ni Health Food Co Ltd (stock code: 002582), listed on the Shenzhen Stock Exchange, is led by Chairman Shi Jubin and specializes in health food - The company's basic information includes stock abbreviation **'Hao Xiang Ni'**, stock code **002582**, listed on the Shenzhen Stock Exchange[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=4.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, operating revenue decreased by 15.64% year-over-year, but net loss attributable to shareholders significantly narrowed by 45.25%, with non-recurring net profit turning positive, increasing by 147.02%, and net cash flow from operating activities growing by 272.82%, indicating improved operational quality Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (Yuan) | Prior Year Same Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (Yuan)** | 688,730,956.56 | 816,408,064.23 | -15.64% | | **Net Profit Attributable to Shareholders (Yuan)** | -19,838,777.72 | -36,234,717.43 | 45.25% | | **Net Profit Attributable to Shareholders After Non-recurring Gains/Losses (Yuan)** | 17,071,229.21 | -36,308,044.64 | 147.02% | | **Net Cash Flow from Operating Activities (Yuan)** | 113,907,688.14 | 30,552,830.78 | 272.82% | | **Basic EPS (Yuan/share)** | -0.0440 | -0.0936 | 52.99% | | **Total Assets (Yuan)** | 4,428,129,712.65 | 4,890,765,768.80 | -9.46% (vs. end of prior year) | | **Net Assets Attributable to Shareholders (Yuan)** | 3,107,653,649.33 | 3,559,523,361.15 | -12.69% (vs. end of prior year) | [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=6.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to -36.91 million Yuan, primarily influenced by losses from disposal of non-current assets (-78.435 million Yuan) and fair value changes and disposal gains from financial assets (46.1833 million Yuan) Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -78,435,014.01 | | Government Grants | 1,720,443.95 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 46,183,331.81 | | **Total** | **-36,910,006.93** | [Management Discussion and Analysis](index=9&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operations, financial condition, and future outlook [Main Business and Operations Overview](index=9&type=section&id=1.%20Main%20Business%20and%20Operations%20During%20the%20Reporting%20Period) The company focuses on R&D, production, and sales of "jujube + healthy fresh-keeping food," leading China's jujube industry, with non-recurring net profit increasing by 147.02% and operating cash flow by 272.82% in H1 2025, achieving significant brand value growth to 20.772 billion Yuan and becoming the first domestic jujube enterprise to pass BRCGS global food safety standard certification - The company consistently focuses on the R&D, production, and sales of **'jujube + healthy fresh-keeping food'**, with core products including 'Zao Boshi' and 'Hong Xiaopai'[28](index=28&type=chunk) Financial Performance Highlights | Financial Indicator | Current Period | YoY Growth | | :--- | :--- | :--- | | Net Profit After Non-recurring Gains/Losses | 17.0712 Million Yuan | 147.02% | | Net Cash Flow from Operating Activities | 114 Million Yuan | 272.82% | - In brand building, the Hao Xiang Ni brand value increased to **20.772 billion Yuan**, ranking first in the industry for seven consecutive years, and becoming the first domestic jujube enterprise to pass BRCGS international certification[38](index=38&type=chunk) - Regarding channels, the company's e-commerce revenue accounted for **28.73%** of operating revenue, while deepening cooperation with high-potential supermarkets like Sam's Club, Yonghui, and Pang Dong Lai, and accelerating expansion into snack bulk retail channels[40](index=40&type=chunk)[41](index=41&type=chunk) [Core Competitiveness Analysis](index=16&type=section&id=2.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its deeply integrated full industry chain, strong technological barriers, diversified product matrix, international quality assurance, and omni-channel penetration capabilities, with a brand value of 20.772 billion Yuan - The company has built a vertical industry chain system covering R&D, cultivation, processing, and sales, establishing deep processing barriers through independently developed technologies such as jujube pitting, FD fresh-locking, and 'Nine Steaming and Nine Processing' black jujube[57](index=57&type=chunk) - The company has obtained BRCGS Global Food Safety Standard certification, established a **GMP 100,000-grade purification workshop**, and implemented the 'Jujube 7 Good Standard' to ensure product quality[58](index=58&type=chunk) - The company's brand value reached **20.772 billion Yuan**, advancing towards the 'Three Hundreds Goal' (10 billion market capitalization, 10 billion revenue, 100-year brand) through a dual-curve strategy (gift scenarios + casual healthy food) and organizational reform[58](index=58&type=chunk)[59](index=59&type=chunk) [Main Business Analysis](index=17&type=section&id=3.%20Main%20Business%20Analysis) During the reporting period, the company's operating revenue decreased by 15.64% year-over-year, while operating costs decreased by 20.97%, leading to an improved gross margin, with jujube products accounting for 72.66% of revenue and a gross margin of 34.60%, and both selling and administrative expenses decreasing by over 20% Operating Performance Summary | Item | Current Period (Yuan) | Prior Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 688,730,956.56 | 816,408,064.23 | -15.64% | | Operating Cost | 485,573,154.15 | 614,416,863.21 | -20.97% | | Selling Expenses | 146,746,830.62 | 185,626,360.56 | -20.95% | | Administrative Expenses | 47,358,446.23 | 63,965,518.59 | -25.96% | | R&D Investment | 11,813,332.25 | 10,417,557.16 | 13.40% | Main Business by Product and Region | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Revenue YoY | Cost YoY | Gross Margin YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Product** | | | | | | | | Jujube Products | 500,397,589.57 | 327,257,549.07 | 34.60% | -16.38% | -25.39% | +7.90% | | **By Region** | | | | | | | | E-commerce | 197,847,736.88 | 132,442,959.34 | 33.06% | -23.27% | -27.72% | +4.12% | | Within Henan Province | 204,632,114.50 | 115,245,967.23 | 43.68% | -10.09% | -16.80% | +4.55% | | Outside Henan Province | 254,048,989.58 | 210,755,218.15 | 17.04% | -13.11% | -19.94% | +7.08% | [Analysis of Assets and Liabilities](index=20&type=section&id=5.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, total assets decreased by 9.46% from the end of the previous year, primarily due to a significant 15.09 percentage point decrease in long-term equity investments and a 16.75 percentage point increase in other non-current financial assets, resulting from a change in accounting method for the associate "Ming Ming Hen Mang," while on the liability side, long-term borrowings increased by 7.95 percentage points - Long-term equity investment as a percentage of total assets decreased from **21.28%** to **6.19%**, while other non-current financial assets increased from **6.72%** to **23.47%**, primarily due to a change in accounting method for the investment in 'Ming Ming Hen Mang'[71](index=71&type=chunk) - Regarding liabilities, long-term borrowings as a percentage of total assets increased from **3.62%** to **11.57%**, mainly due to new long-term borrowings, while accounts payable and non-current liabilities due within one year decreased due to payment of procurement funds and loan repayments[71](index=71&type=chunk) [Risks and Countermeasures](index=26&type=section&id=10.%20Company%20Risks%20and%20Countermeasures) The company faces four main risks: raw material price fluctuations, food safety, intensified market competition, and changes in market demand, for which it implements countermeasures including using futures markets to hedge costs, establishing strict quality management systems, strengthening brand advantage and omni-channel networks, and continuously launching innovative product matrices based on "dietary nourishment, therapy, and supplementation" concepts - The company faces four major risks: **raw material price fluctuations**, **food safety**, **intensified market competition**, and **changes in market demand**[88](index=88&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Countermeasures include: utilizing futures markets to hedge price risks, ensuring food safety through **ISO9001/HACCP/BRCGS** certifications, strengthening the 'Jujube Expert' brand recognition, and building a 'Jujube+' product matrix to meet diversified consumer demands[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) [Corporate Governance, Environment and Society](index=29&type=section&id=Item%204.%20Corporate%20Governance%2C%20Environment%20and%20Society) This section details the company's governance structure, environmental initiatives, and social responsibility efforts [Implementation of Equity Incentive Plan](index=29&type=section&id=3.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company adjusted its 2023 Restricted Stock Incentive Plan, completing two rounds of repurchase and cancellation of a total of 4,551,478 restricted shares due to the departure of some incentive recipients and the non-achievement of the second vesting period conditions - From January to March 2025, the company completed the repurchase and cancellation of **305,000** restricted shares that had not yet vested for **12** departed incentive recipients[102](index=102&type=chunk) - Due to the non-achievement of the second vesting period conditions for the 2023 Restricted Stock Incentive Plan, the company initiated the repurchase and cancellation of the remaining **4,246,478** restricted shares from April to May 2025[103](index=103&type=chunk) [Social Responsibility](index=30&type=section&id=5.%20Social%20Responsibility) The company actively fulfills its social responsibilities through significant investor returns, rural revitalization efforts, and various public welfare activities, including a cash dividend of 432 million Yuan to all shareholders and industrial assistance to Xinjiang's jujube industry - The company distributed a cash dividend of **10.00 Yuan** (tax inclusive) per 10 shares to all shareholders, totaling **432 million Yuan** in cash dividends[106](index=106&type=chunk) - The company continuously carries out industrial assistance activities in Xinjiang, such as raw material procurement, to support rural revitalization[107](index=107&type=chunk) [Significant Events](index=31&type=section&id=Item%205.%20Significant%20Events) This section outlines major events and commitments that significantly impact the company's operations and financial position [Fulfillment of Commitments](index=31&type=section&id=1.%20Fulfillment%20of%20Commitments%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company) During the reporting period, the company and relevant parties fulfilled all commitments on time, with long-term commitments such as those by the controlling shareholder Shi Jubin regarding avoiding horizontal competition and regulating related-party transactions remaining in effect and being continuously fulfilled - The commitments made by the controlling shareholder Shi Jubin during asset restructuring and IPO regarding avoiding horizontal competition and regulating related-party transactions are **long-term effective** and currently being fulfilled[110](index=110&type=chunk)[111](index=111&type=chunk) - The company's commitments regarding equity incentives and the dividend commitments in the 2023-2025 Shareholder Return Plan are all being fulfilled as normal[111](index=111&type=chunk) [Share Changes and Shareholder Information](index=38&type=section&id=Item%206.%20Share%20Changes%20and%20Shareholder%20Information) This section provides details on changes in the company's share capital and the status of its shareholders [Share Changes](index=38&type=section&id=1.%20Share%20Changes) During the reporting period, the company's total share capital decreased by 305,000 shares, from 452,259,369 shares to 451,954,369 shares, due to the repurchase and cancellation of shares from departed equity incentive recipients, resulting in a net reduction of 478,186 restricted shares Share Capital Changes | Share Class | Before Change | Change | After Change | | :--- | :--- | :--- | :--- | | Restricted Shares | 108,190,352 | -478,186 | 107,712,166 | | Unrestricted Shares | 344,069,017 | +173,186 | 344,242,203 | | **Total Shares** | **452,259,369** | **-305,000** | **451,954,369** | [Number of Shareholders and Shareholding Status](index=41&type=section&id=3.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the end of the reporting period, the company had 58,587 common shareholders, with controlling shareholder Shi Jubin holding 28.61%, and multiple Xingquan Fund products collectively holding a significant stake, while Shi Jubin, Shi Juling, and Chang Guojie are parties acting in concert - As of the end of the reporting period, the total number of common shareholders was **58,587**[148](index=148&type=chunk) Top Shareholders | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Shi Jubin | 28.61% | 129,289,218 | | Xingquan Business Model Preferred Mixed (LOF) | 4.94% | 22,316,119 | | Xingquan New Horizon Flexible Allocation Mixed | 3.89% | 17,584,487 | | Shi Juling | 1.83% | 8,283,200 | [Bond-Related Information](index=44&type=section&id=Item%207.%20Bond-Related%20Information) This section addresses any information pertinent to the company's bond issuances or related financial instruments [Not Applicable](index=44&type=section&id=Not%20Applicable) During the reporting period, the company had no bond-related information [Financial Report](index=45&type=section&id=Item%208.%20Financial%20Report) This section presents the company's comprehensive financial statements, including balance sheets, income statements, and cash flow statements [Financial Statements](index=45&type=section&id=2.%20Financial%20Statements) The company's semi-annual financial report is unaudited; the balance sheet shows a decrease in total assets primarily due to reclassification of long-term equity investments to other non-current financial assets; the income statement indicates decreased revenue but narrowed losses, driven by cost control and fair value changes; and the cash flow statement reflects significantly improved operating cash flow, net cash inflow from investing activities, and net cash outflow from financing activities [Consolidated Balance Sheet](index=45&type=section&id=1.%20Consolidated%20Balance%20Sheet) At period-end, total assets were 4.428 billion Yuan, a 9.46% decrease from the beginning of the period, with key changes including long-term equity investments decreasing from 1.041 billion Yuan to 274.14 million Yuan, and other non-current financial assets increasing from 328.82 million Yuan to 1.039 billion Yuan, mainly due to a change in accounting method for "Ming Ming Hen Mang," while long-term borrowings increased from 177 million Yuan to 512.2 million Yuan Consolidated Balance Sheet | Item | Period-end Balance (Yuan) | Period-beginning Balance (Yuan) | | :--- | :--- | :--- | | **Total Assets** | **4,428,129,712.65** | **4,890,765,768.80** | | Long-term Equity Investment | 274,141,679.86 | 1,040,533,242.00 | | Other Non-current Financial Assets | 1,039,385,767.10 | 328,823,701.64 | | **Total Liabilities** | **1,352,470,728.09** | **1,363,374,295.09** | | Long-term Borrowings | 512,200,000.00 | 177,000,000.00 | | **Total Owners' Equity** | **3,075,658,984.56** | **3,527,391,473.71** | [Consolidated Income Statement](index=50&type=section&id=3.%20Consolidated%20Income%20Statement) In H1 2025, total operating revenue was 688.73 million Yuan, a 15.64% year-over-year decrease, while total operating cost was 697.33 million Yuan, a 20.02% year-over-year decrease; net profit attributable to parent company shareholders was -19.84 million Yuan, a 45.25% narrowing of loss compared to -36.23 million Yuan in the prior year, with profit improvement mainly from cost and expense control, fair value change gains (41.57 million Yuan), and increased investment income from associates Consolidated Income Statement | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 688,730,956.56 | 816,408,064.23 | | Total Operating Cost | 697,332,651.41 | 871,932,093.54 | | Investment Income | -49,118,900.61 | 24,864,744.13 | | Gains from Fair Value Changes | 41,573,065.83 | -8,735,948.18 | | **Total Profit** | **-12,461,616.87** | **-38,026,516.69** | | **Net Profit Attributable to Parent Company Shareholders** | **-19,838,777.72** | **-36,234,717.43** | [Consolidated Cash Flow Statement](index=53&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, net cash flow from operating activities was 113.91 million Yuan, a significant 272.82% year-over-year increase, primarily because the decrease in cash inflows from operating activities was less than the decrease in outflows; net cash flow from investing activities was 252.14 million Yuan, mainly from investment recovery; net cash flow from financing activities was -386.74 million Yuan, primarily for debt repayment and dividend distribution; and the period-end cash and cash equivalents balance was 128 million Yuan Consolidated Cash Flow Statement | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 113,907,688.14 | 30,552,830.78 | | Net Cash Flow from Investing Activities | 252,143,983.92 | 285,603,081.14 | | Net Cash Flow from Financing Activities | -386,743,204.02 | -423,754,585.17 | | **Net Increase in Cash and Cash Equivalents** | **-20,691,531.96** | **-107,598,673.25** | [Other Submitted Data](index=156&type=section&id=Item%209.%20Other%20Submitted%20Data) This section includes additional data and disclosures not covered in the main financial statements [Investor Relations Activities](index=156&type=section&id=2.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%20and%20Other%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company actively engaged with investors through 4 investor relations activities, including interactions with institutions such as Guotai Junan, China Asset Management, and GF Securities, primarily discussing operational performance, channel strategies, development plans, and dividend policies - The company conducted **4** investor relations activities during the reporting period, including on-site and telephone communications, and online exchanges, engaging with multiple institutional investors[633](index=633&type=chunk)[634](index=634&type=chunk)

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I.%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial disclaimers, the report's structure, and definitions of key terms used throughout the document [Important Notice](index=2&type=section&id=Important%20Notice) The company's board ensures the report's accuracy and completeness, announcing a 2025 interim profit distribution and capital reserve to share capital plan, while advising investors to consult official disclosures and risk factors - The company's board approved the 2025 interim profit distribution plan: based on the total share capital as of June 30, 2025, a cash dividend of **CNY 0.90 per 10 shares (including tax)** will be distributed, and **4 shares per 10 shares** will be transferred from capital reserves to share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The report's table of contents clearly lists nine major chapters, covering everything from important notices and company overview to management discussion and financial reports [Definitions](index=5&type=section&id=Definitions) This chapter defines key company abbreviations and terms used in the report, such as "Weichai Heavy Machinery" and "Shandong Heavy Industry," and specifies the reporting period from January 1 to June 30, 2025 [Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information and a summary of its key financial performance metrics [Company Profile](index=6&type=section&id=I.%20Company%20Profile) This chapter provides the company's basic information, including its stock ticker "Weichai Heavy Machinery," stock code "000880," and its full Chinese and English names, along with the legal representative [Key Accounting Data and Financial Indicators](index=6&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved strong performance in the first half of 2025, with revenue increasing by 43.91% and net profit attributable to shareholders by 52.62%, indicating significant improvement in profitability and cash flow 2025 H1 Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 2,746,363,246.88 | 1,908,434,150.32 | 43.91% | | Net Profit Attributable to Shareholders (CNY) | 143,667,942.17 | 94,135,274.71 | 52.62% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (CNY) | 128,649,375.44 | 91,734,682.39 | 40.24% | | Net Cash Flow from Operating Activities (CNY) | 163,326,691.02 | 50,359,915.91 | 224.32% | | Basic Earnings Per Share (CNY/share) | 0.43 | 0.28 | 52.62% | | Weighted Average Return on Net Assets | 6.80% | 4.73% | Increased by 2.07 percentage points | | Total Assets (CNY) | 7,051,508,285.87 | 6,279,690,766.70 | 12.29% (vs. end of prior year) | | Net Assets Attributable to Shareholders (CNY) | 2,149,069,218.68 | 2,060,208,014.27 | 4.31% (vs. end of prior year) | [Non-recurring Gains and Losses and Amounts](index=7&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled **CNY 15.02 million**, primarily from government subsidies and disposal gains/losses of non-current assets 2025 H1 Non-recurring Gains and Losses | Item | Amount (CNY) | | :--- | :--- | | Disposal gains/losses of non-current assets | 6,004,272.85 | | Government subsidies recognized in current profit/loss | 11,122,255.12 | | Other non-operating income and expenses | 542,374.07 | | Less: Income tax impact | 2,650,335.31 | | **Total** | **15,018,566.73** | [Management Discussion and Analysis](index=9&type=section&id=Section%20III.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, financial condition, and future outlook [Principal Businesses During the Reporting Period](index=9&type=section&id=I.%20Principal%20Businesses%20During%20the%20Reporting%20Period) The company's core businesses, marine power and power generation equipment, achieved record performance in the reporting period, driven by green transformation in inland navigation and data center market expansion - The company's business covers four areas: ocean-going, offshore, inland river, and power generation, with marine engines holding a leading position in inland river and offshore transport vessels and fishing boats, while generator sets are widely used in marine, telecommunications, and data center industries[28](index=28&type=chunk) 2025 H1 Operating Performance Highlights | Indicator | Value | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | CNY 2.75 billion | 44% | | Net Profit Attributable to Shareholders | CNY 144 million | 53% | | Engine/Generator Set Sales | 12,100 units | 8% | | International Market Operating Revenue | - | 62% | - In marine power, the company capitalized on "equipment renewal" policies, significantly increasing LNG power product sales; in generator sets, it achieved major breakthroughs in the data center market, with substantial growth in sales and revenue, successfully entering the procurement lists of the three major operators, breaking the monopoly of imported brands[29](index=29&type=chunk)[30](index=30&type=chunk) [Analysis of Core Competitiveness](index=10&type=section&id=II.%20Analysis%20of%20Core%20Competitiveness) The company's core competitiveness lies in its marine power and energy power business segments, excelling in alternative fuel engine development and generator set performance - The company has completed the development and application of natural gas engines and dual-fuel engines using various technical routes, including spark ignition, micro-pilot ignition, and high-pressure direct injection, and has laid out methanol engine product development, leading the industry in marine engine energy conservation and emission reduction[34](index=34&type=chunk) [Analysis of Principal Business](index=10&type=section&id=III.%20Analysis%20of%20Principal%20Business) During the reporting period, the company's principal business grew significantly, with operating revenue increasing by 43.91%, primarily due to increased sales of main products, especially generator sets Major Financial Data YoY Changes | Item | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,746,363,246.88 | 1,908,434,150.32 | 43.91% | | Operating Cost | 2,456,520,125.38 | 1,670,300,017.25 | 47.07% | | Net Cash Flow from Operating Activities | 163,326,691.02 | 50,359,915.91 | 224.32% | Operating Revenue Composition (by Product) | Product | Current Period Revenue (CNY) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Engines | 930,629,901.30 | 33.89% | 0.11% | | **Generator Sets** | **1,417,273,405.90** | **51.60%** | **135.48%** | | Parts and Processing Services | 198,571,021.10 | 7.23% | 10.73% | | Aftermarket and Others | 199,888,918.58 | 7.28% | 1.14% | [Analysis of Assets and Liabilities](index=12&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, the company's total assets reached **CNY 7.05 billion**, an increase of 12.29% from the end of the previous year, driven by expanded investments and business scale Significant Changes in Asset Composition | Item | Amount at End of Current Period (CNY) | % of Total Assets | % Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Monetary Funds | 2,375,048,903.41 | 33.68% | -8.69% | | Accounts Receivable | 649,375,677.02 | 9.21% | 2.55% | | Inventories | 1,185,619,339.21 | 16.81% | 3.75% | | Long-term Equity Investments | 1,022,971,214.18 | 14.51% | 2.53% | [Analysis of Investment Status](index=12&type=section&id=VI.%20Analysis%20of%20Investment%20Status) During the reporting period, the company's investment significantly increased, primarily due to a **CNY 261 million** capital injection into Shandong Heavy Industry Group Finance Co, Ltd, which is a major source of investment income from associates - The investment amount for the reporting period was **CNY 292 million**, a substantial increase of **1,302.24%** compared to **CNY 20.83 million** in the same period last year[43](index=43&type=chunk) - The company injected **CNY 261 million** into Shandong Heavy Industry Group Finance Co, Ltd, holding a **7.81%** stake; investment income recognized in this period was **CNY 12.40 million**[45](index=45&type=chunk) [Analysis of Major Holding and Participating Companies](index=14&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Weichai Power Equipment Co, Ltd, a key subsidiary, performed well in the reporting period, with net profit of **CNY 40.89 million**, up 25.89% year-on-year, driven by increased operating revenue and gross profit Weichai Power Equipment Co, Ltd Key Financial Data | Indicator | Amount (CNY) | | :--- | :--- | | Total Assets | 2,080,261,188.41 | | Net Assets | 189,743,710.54 | | Operating Revenue | 1,567,370,196.42 | | Net Profit | 40,890,260.56 | [Risks Faced by the Company and Countermeasures](index=15&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) Looking ahead to H2 2025, the company acknowledges a complex global economic environment but sees ample domestic macroeconomic policy space, focusing on its dual core businesses and efficiency improvements - Marine engine business: Seize "vessel scrapping and renewal" opportunities to promote LNG and methanol products; expand overseas markets, especially in Russia and Southeast Asia; and deepen system integration and aftermarket TCO services[54](index=54&type=chunk)[55](index=55&type=chunk) - Land-use generator set business: Continuously explore high-end markets such as data centers, telecommunications, oil and gas fields, and high-end manufacturing, to address increasingly fierce industry competition[57](index=57&type=chunk) [Corporate Governance, Environment, and Society](index=17&type=section&id=Section%20IV.%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details changes in the company's governance structure, its profit distribution plans, and its commitment to environmental and social responsibilities [Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company's board of directors and senior management underwent several personnel changes, including the election of new directors and the appointment of new vice general managers and board secretaries 2025 H1 Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | | :--- | :--- | :--- | | Wang Dehua | Director | Elected | | Li Jian | Director | Elected | | Mu Degang | Vice General Manager | Appointed | | Sheng Weining | Board Secretary | Appointed | | Zhang Quan | Director | Resigned | | Wang Xuewen | Director | Resigned | | Li Deming | Manufacturing Director | Resigned | | Wen Tao | Board Secretary | Resigned | [Profit Distribution and Capital Reserve to Share Capital Plan](index=17&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Plan) The company proposed a 2025 interim profit distribution and capital reserve to share capital plan, intending to distribute a cash dividend of **CNY 0.90 per 10 shares (including tax)** and transfer **4 shares per 10 shares** from capital reserves to all shareholders 2025 Interim Dividend and Capitalization Plan | Item | Value | | :--- | :--- | | Cash Dividend per 10 Shares (CNY) (incl. tax) | 0.90 | | Capitalization per 10 Shares (shares) | 4 | | Share Capital Base for Distribution Plan (shares) | 331,320,600 | | Cash Dividend Amount (CNY) (incl. tax) | 29,818,854.00 | [Environmental Information Disclosure](index=18&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company has been included in the list of enterprises required to disclose environmental information by law, demonstrating its commitment to environmental protection and responsibility [Social Responsibility](index=18&type=section&id=V.%20Social%20Responsibility) During the reporting period, the company actively fulfilled its social responsibilities by participating in public welfare, community care activities, and ecological protection initiatives, while also enhancing employee cohesion through diverse cultural events [Significant Matters](index=19&type=section&id=Section%20V.%20Significant%20Matters) This section outlines major events and transactions that significantly impacted the company during the reporting period [Significant Related Party Transactions](index=20&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company engaged in significant related party transactions related to its daily operations, primarily involving the purchase and sale of engines and parts, and a joint capital increase in Shandong Heavy Industry Group Finance Co, Ltd Daily Related Party Transactions with Weichai Power and its Affiliates | Transaction Type | Related Party Transaction Content | Amount in Current Period (CNY million) | % of Similar Transaction Amount | | :--- | :--- | :--- | :--- | | Purchase of Goods/Acceptance of Services | Engines, parts, services, etc | 1,400.28 | 49.94% | | Sale of Goods/Provision of Services | Engines, parts, services, etc | 983.18 | 35.80% | - The company, along with Shandong Heavy Industry Group Co, Ltd, Weichai Power Co, Ltd, and other related parties, jointly increased capital in Shandong Heavy Industry Group Finance Co, Ltd[79](index=79&type=chunk) - As of the end of the reporting period, the company's deposit balance with Shandong Heavy Industry Group Finance Co, Ltd was **CNY 1.14 billion**, with a total credit line of **CNY 400 million**[81](index=81&type=chunk) [Explanation of Other Significant Matters](index=23&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company is planning a major equity acquisition and related party transaction, intending to acquire 100% of Changzhou Fiberglass Shipyard Co, Ltd - The company disclosed an announcement on August 7, 2025, regarding the acquisition of 100% equity in Changzhou Fiberglass Shipyard Co, Ltd, which constitutes a related party transaction[91](index=91&type=chunk) [Share Changes and Shareholder Information](index=24&type=section&id=Section%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details any changes in the company's share capital and provides an overview of its shareholder structure [Share Changes](index=24&type=section&id=I.%20Share%20Changes) During the reporting period, the company's total share capital and share structure remained unchanged, with the total share capital maintained at **331.32 million shares** Share Structure | Share Type | Quantity | Proportion | | :--- | :--- | :--- | | I. Restricted Shares | 169,158,600 | 51.06% | | II. Unrestricted Shares | 162,162,000 | 48.94% | | **III. Total Shares** | **331,320,600** | **100.00%** | [Number of Shareholders and Shareholding Status](index=24&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the end of the reporting period, the company had 38,156 common shareholders, with the top two shareholders, Weichai Holding Group Co, Ltd and Weifang City Investment Group Co, Ltd, holding over 51% combined Top Two Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held | | :--- | :--- | :--- | :--- | | Weichai Holding Group Co, Ltd | State-owned Legal Person | 30.59% | 101,358,600 | | Weifang City Investment Group Co, Ltd | State-owned Legal Person | 20.46% | 67,800,000 | [Bond-Related Information](index=27&type=section&id=Section%20VII.%20Bond-Related%20Information) This section provides details regarding any bonds issued or outstanding by the company [Bond-Related Information](index=27&type=section&id=Bond-Related%20Information) During the reporting period, the company had no bond-related information [Financial Report](index=28&type=section&id=Section%20VIII.%20Financial%20Report) This section contains the company's audited financial statements and accompanying notes for the reporting period [Audit Report](index=28&type=section&id=I.%20Audit%20Report) This semi-annual financial report has been audited by Zhongqin Wanxin Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion - The audit firm issued a standard unqualified audit report (Qinxin Audit [2025] No. 3424)[106](index=106&type=chunk) [Financial Statements](index=28&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity [Notes to Financial Statements](index=46&type=section&id=Notes%20to%20Financial%20Statements) The notes to the financial statements detail the company's basic information, basis of preparation, significant accounting policies and estimates, taxation, and provide detailed explanations for major items in the consolidated financial statements, along with disclosures of related party relationships and transactions, contingencies, and post-balance sheet events - Significant accounting policy change: In accordance with "Interpretation No. 18 of Accounting Standards for Business Enterprises," the company retrospectively adjusted the accounting treatment for guarantee-type quality assurance, reclassifying related expenses from "selling expenses" to "operating costs"[308](index=308&type=chunk) - Tax incentives: The company and its subsidiary, Weichai Power Equipment Co, Ltd, as high-tech enterprises, enjoy a **15% corporate income tax preferential rate** and can benefit from a **100% pre-tax deduction for R&D expenses**[322](index=322&type=chunk) - Post-balance sheet events: On August 6, 2025, the company signed an agreement to acquire 100% equity in Changzhou Fiberglass Shipyard Co, Ltd, held by related party Weichai Group, for **CNY 491.67 million** in cash[529](index=529&type=chunk) [Other Submitted Data](index=122&type=section&id=Section%20IX.%20Other%20Submitted%20Data) This section includes additional data submitted by the company, such as investor relations activities and related party fund movements [Investor Relations Activities During the Reporting Period](index=122&type=section&id=II.%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company engaged in three public communication activities with investors through online platforms and on-site visits, primarily discussing operating performance, market conditions, and future plans [Fund Movements with Controlling Shareholder and Other Related Parties](index=122&type=section&id=III.%20Fund%20Movements%20with%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) This section discloses the company's operating fund movements with related parties, with the largest amount being deposit transactions with Shandong Heavy Industry Group Finance Co, Ltd, totaling **CNY 1.14 billion** at period-end

[Company Profile and Core Financial Data](index=6&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information, key financial performance, and non-recurring gains and losses [Basic Company Information](index=6&type=section&id=I.%20Company%20Profile) Xi'an Tourism Co., Ltd. (000610) is a Shenzhen Stock Exchange-listed company, with Lu Fei as its legal representative | Item | Information | | :--- | :--- | | **Stock Abbreviation** | Xi'an Tourism | | **Stock Code** | 000610 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Company Name** | Xi'an Tourism Co., Ltd | | **Legal Representative** | Lu Fei | [Key Accounting Data and Financial Indicators](index=6&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Operating revenue decreased by **13.54%**, net loss narrowed by **12.06%**, and operating cash flow increased by **11.08%**, while total assets and net assets declined | Key Financial Indicators | This Reporting Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (Yuan)** | 218,009,096.08 | 252,136,292.00 | -13.54% | | **Net Profit Attributable to Shareholders (Yuan)** | -55,989,631.51 | -63,664,935.45 | 12.06% | | **Net Cash Flow from Operating Activities (Yuan)** | 15,053,308.51 | 13,551,344.10 | 11.08% | | **Basic Earnings Per Share (Yuan/Share)** | -0.2365 | -0.2689 | 12.05% | | **Weighted Average Return on Net Assets** | -26.83% | -13.69% | -13.14% | | | **End of This Reporting Period** | **End of Prior Year** | **Year-on-Year Change** | | **Total Assets (Yuan)** | 2,000,907,532.48 | 2,062,086,439.51 | -2.97% | | **Net Assets Attributable to Shareholders (Yuan)** | 180,692,937.35 | 236,682,568.86 | -23.66% | [Non-recurring Gains and Losses](index=7&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses were **-57,249.56 Yuan**, mainly from government subsidies, asset disposals, and other non-operating items | Item | Amount (Yuan) | Description | | :--- | :--- | :--- | | Non-current asset disposal gains/losses | -41.55 | - | | Government subsidies recognized in current profit/loss | 50,000.00 | Beilin District Commerce Bureau Time-honored Brand Award | | Net other non-operating income/expenses | -115,623.28 | - | | **Total** | **-57,249.56** | - | [Management Discussion and Analysis (MD&A)](index=9&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section analyzes the company's core business, competitive advantages, financial performance, asset status, and risk management [Overview of Principal Operations](index=9&type=section&id=I.%20Principal%20Operations%20During%20the%20Reporting%20Period) The company positions itself as a 'Comprehensive Cultural Tourism Service Provider,' driven by 'Pleasant Stay Hotels & Homestays' and 'Pleasant Journey Travel' businesses - Company's core principal businesses are divided into three segments: - **Pleasant Stay Hotels & Homestays**: Covers hotel operations and management, launched the "Xilv Wan'ao" new brand, adopting a "light and heavy asset" strategy[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - **Pleasant Journey Travel**: Includes Xi'an China Travel Service and Xi'an Overseas Travel Service, developing five major business brands such as study tours, MICE, and vacation travel[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - **Pleasant Life Innovative Cultural Tourism**: Expands new business formats around the main tourism business, such as "Centimeter City" coffee and Xilv Le Kelong Magical Animal City projects[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Core Competencies](index=9&type=section&id=II.%20Analysis%20of%20Core%20Competencies) Core competencies include hotel and homestay brand matrix, digital operations, full-chain travel services, and innovative cultural tourism IP development capabilities - **Hotel & Homestay**: Has built a "Wan'ao" spectrum including nine major brands, covering 10 provinces and 23 cities nationwide, and independently developed "Wan'ao Club" APP, "Zhumaman" hotel management system, and other digital platforms[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - **Pleasant Journey Travel**: Enhanced full-chain control through self-built visa, ticketing, and marketing centers, with 311 stores[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - **Innovative Cultural Tourism**: Implemented an IP brand-led strategy, collaborated with high-traffic scenic spots (e.g., Xi'an City Wall) to provide content planning and promotion, and created new urban cultural tourism projects like "Centimeter City" coffee[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Analysis of Principal Operations](index=9&type=section&id=III.%20Analysis%20of%20Principal%20Operations) First-half operating revenue decreased by **13.54%** due to consumption downgrade, impacting hotel and travel agency businesses, despite cost control efforts - **Hotel Segment**: Facing a market trend of "stable volume, falling prices," the company focused on brand expansion and digitalization, with Wan'ao Club App active members increasing by **47.81%** year-on-year, and 8 new franchised stores opened[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - **Travel Agency Segment**: Outbound group tour business performed strongly, with revenue growing by **47.75%**, particularly advantageous in Southeast Asia, Japan, and Korea routes[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - **Innovative Cultural Tourism Segment**: Leveraging scenic spots like Xi'an City Wall, successfully launched popular products such as "Youpo Lazibread," enhancing the profitability of supporting commercial operations[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) | Major Financial Data | This Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 218,009,096.08 | 252,136,292.00 | -13.54% | Impacted by consumption downgrade, decrease in hotel and tourism business revenue | | **Operating Costs** | 213,457,588.55 | 241,976,186.68 | -11.79% | Decreased in line with operating revenue | | **Administrative Expenses** | 20,570,874.96 | 26,617,858.27 | -22.72% | Decrease in employee compensation and intermediary fees year-on-year | | **Net Cash Flow from Financing Activities** | -24,807,420.17 | 44,521,609.76 | -155.72% | Net amount of borrowings obtained and repaid decreased year-on-year | | By Industry | Operating Revenue (Yuan) | Proportion of Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hotel Industry | 53,318,418.41 | 24.46% | -26.87% | | Travel Agency Business | 139,150,247.24 | 63.83% | -8.19% | | Commercial Trade | 5,996,529.37 | 2.75% | -38.43% | | Amusement Park | 2,053,503.82 | 0.94% | -63.52% | | Leasing | 11,913,791.45 | 5.46% | 10.91% | | Business Segment Over 10% | Operating Revenue (Yuan) | Operating Costs (Yuan) | Gross Margin | Revenue YoY | Costs YoY | Gross Margin YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Hotel Industry** | 53,318,418.41 | 60,005,544.78 | -12.54% | -26.87% | -8.94% | -22.16% | | **Travel Agency Business** | 139,150,247.24 | 131,128,634.54 | 5.76% | -8.19% | -9.26% | 1.11% | [Assets and Liabilities Status](index=12&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities%20Status) Total assets were **2.001 billion Yuan**, a **2.97%** decrease, with stable asset structure and short-term borrowings increasing to **31.85%** of total assets | Major Asset and Liability Items | Period-End Balance (Yuan) | Proportion of Total Assets | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 133,956,188.70 | 6.69% | -1.34% | | Inventories | 364,409,123.75 | 18.21% | 1.74% | | Fixed Assets | 454,322,851.24 | 22.71% | 0.11% | | Right-of-Use Assets | 366,430,961.86 | 18.31% | -0.56% | | Short-term Borrowings | 637,233,907.82 | 31.85% | 2.23% | | Long-term Borrowings | 226,900,000.00 | 11.34% | -0.61% | | Lease Liabilities | 371,212,576.73 | 18.55% | -0.01% | - At period-end, **582,300 Yuan** of monetary funds were restricted due to tourism and guarantee deposits[45](index=45&type=chunk) [Analysis of Major Holding and Participating Companies](index=15&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Most subsidiaries, including hotel and travel agencies, reported losses, with Xi'an Xilv Yibai Hotel Investment Co., Ltd. having the largest loss of **-25.02 million Yuan** | Major Subsidiary Name | Business Type | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Xi'an Overseas Travel Co., Ltd | Travel Agency | 85,266,480.98 | -1,246,602.33 | | Xi'an China Travel Service International Travel Agency Co., Ltd | Travel Agency | 61,014,562.82 | -4,439,927.58 | | Xi'an Xilv Yibai Hotel Investment Co., Ltd | Hotel Investment Management | 37,214,919.22 | -25,020,889.32 | | Diebu County Zagana Kangyang Real Estate Co., Ltd | Real Estate Development | 0.00 | -5,519,409.11 | | Chengdu Xilv Wan'ao Hotel Management Co., Ltd | Hotel Management | 9,714,069.33 | -3,446,157.01 | [Risks and Countermeasures](index=18&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces market competition, evolving customer demands, and force majeure risks, addressed by brand, product, and operational strategies - **Risks Faced:** - **Intensified Market Competition Risk**: Frequent price wars and product homogenization in the industry lead to market share erosion[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Customer Demand Iteration Risk**: Consumer demand shifts towards personalization and experiential travel, risking customer loss if product updates lag[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Force Majeure Impact Risk**: The tourism industry is susceptible to external environmental factors such as natural disasters and emergencies[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Countermeasures:** - **Deepen Brand Strategy**: Enhance brand recognition and influence through multi-channel marketing[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Promote Product Innovation**: Develop differentiated advantages by focusing on high-end customized tours and immersive cultural tourism experiences in niche segments[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Diversify Business Layout**: Extend the industry chain to mitigate single-business risks[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Optimize Customer Experience**: Reconstruct products with a "user-centric mindset" to enhance customer satisfaction and loyalty[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Improve Emergency Mechanisms**: Establish comprehensive emergency plans and strengthen risk response capabilities[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Corporate Governance, Environmental, and Social (GES)](index=19&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details the company's profit distribution plan and its commitment to social responsibility initiatives [Profit Distribution Plan](index=19&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20in%20This%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions for the first half of 2025 - The company plans no profit distribution or capital reserve conversion for the half-year period[67](index=67&type=chunk) [Social Responsibility](index=19&type=section&id=V.%20Social%20Responsibility%20Status) The company actively fulfills social responsibilities through volunteer services, care stations for workers, and rural revitalization support - **Cultural Heritage**: During the Spring Festival, a team of gold-medal tour guides was formed to provide in-depth explanations for tourists[69](index=69&type=chunk)[70](index=70&type=chunk) - **Care for Workers**: During Labor Day, care stations were set up to provide free tea and drinks for delivery riders, sanitation workers, and others[69](index=69&type=chunk)[70](index=70&type=chunk) - **Rural Revitalization**: Supported rural revitalization through consumption assistance by purchasing **67,000 Yuan** worth of poverty alleviation products[69](index=69&type=chunk)[70](index=70&type=chunk) [Significant Matters](index=21&type=section&id=Section%205%20Significant%20Matters) This section outlines the company's major litigation cases, significant related party transactions, and substantial guarantees [Litigation Matters](index=22&type=section&id=VIII.%20Litigation%20Matters) Two major lawsuits were disclosed: a sales contract dispute for **56.341 million Yuan** and a construction contract dispute for **45.7089 million Yuan**, both under appeal | Litigant | Opponent | Cause of Action | Amount Involved (Yuan) | Progress | | :--- | :--- | :--- | :--- | :--- | | Company Supply Chain Management Branch | Sichuan Nonferrous New Material Technology Co., Ltd | Sales Contract Dispute | 56,341,000 | Partial judgment rendered, company applied for enforcement | | Subsidiary Zagana Kangyang Real Estate | Gansu Construction Investment Civil Engineering Construction Group | Construction Project Contract Dispute | 45,708,900 | After first-instance judgment, both parties appealed | [Significant Related Party Transactions](index=24&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) Significant non-operating fund transfers to controlled subsidiaries resulted in a **226.1017 million Yuan** receivable from Xi'an Xilv Yibai Hotel Investment Co., Ltd | Related Party (Receivable) | Relationship | Period-End Balance (Yuan) | Reason for Formation | | :--- | :--- | :--- | :--- | | Xi'an Xilv Yibai Hotel Investment Co., Ltd | Controlled Subsidiary | 226,101,700 | Fund Turnover | | Xi'an Tourism Ecological Industry Co., Ltd | Controlled Subsidiary | 89,224,200 | Fund Turnover | | Diebu County Zagana Kangyang Real Estate Co., Ltd | Controlled Subsidiary | 78,607,400 | Fund Turnover | | Xi'an China Travel Service International Travel Agency Co., Ltd | Controlled Subsidiary | 46,237,500 | Fund Turnover | [Significant Guarantees](index=27&type=section&id=2.%20Significant%20Guarantees) Total actual guarantees reached **280.8102 million Yuan**, **155.41%** of net assets, primarily for subsidiary borrowings and project homebuyers, with **280.8102 million Yuan** for high debt-to-asset ratio entities | Guarantee Situation | Amount (Yuan) | | :--- | :--- | | **Total Actual Guarantee Balance at Period-End** | 280,810,200 | | **Proportion of Total Actual Guarantees to Company's Net Assets** | 155.41% | | **Debt Guarantees Provided for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70%** | 280,810,200 | | **Amount of Guarantees Exceeding 50% of Net Assets** | 190,463,700 | [Share Changes and Shareholder Information](index=31&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital changes and the holdings of its major shareholders [Share Changes](index=31&type=section&id=I.%20Share%20Change%20Status) Total share capital remained unchanged at **236,747,901 shares**, with restricted shares decreasing by **15,300** due to executive share release | Share Class | Before This Change (Shares) | After This Change (Shares) | Change (Shares) | | :--- | :--- | :--- | :--- | | **Restricted Shares** | 1,258,907 | 1,243,607 | -15,300 | | **Unrestricted Shares** | 235,488,994 | 235,504,294 | +15,300 | | **Total Share Capital** | **236,747,901** | **236,747,901** | **0** | [Shareholder Information](index=33&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) The company had **64,020** common shareholders, with the largest shareholder's **31,388,170** shares pledged and the second largest shareholder's entire stake frozen - The total number of common shareholders at the end of the reporting period was **64,020**[109](index=109&type=chunk) | Top Two Shareholder Names | Shareholder Nature | Shareholding Proportion | Period-End Shareholding | Share Status | | :--- | :--- | :--- | :--- | :--- | | Xi'an Tourism Group Co., Ltd | State-owned Legal Person | 26.57% | 62,902,145 | Pledged 31,388,170 Shares | | Panjing Equity Investment Fund Management (Shanghai) Co., Ltd - Panjing Win-Win No. 6 | Domestic Non-State-owned Legal Person | 5.01% | 11,850,028 | Frozen 11,850,028 Shares | [Financial Report](index=37&type=section&id=Section%208%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements [Financial Statements](index=37&type=section&id=II.%20Financial%20Statements) Unaudited 2025 semi-annual consolidated and parent company financial statements show a loss-making status with slight asset contraction but positive operating cash flow [Consolidated Balance Sheet](index=37&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets were **2.001 billion Yuan**, total liabilities **1.848 billion Yuan**, and equity **181 million Yuan**, with a **92.34%** debt-to-asset ratio | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | **Total Current Assets** | 664,470,488.90 | 678,197,635.87 | | **Total Non-current Assets** | 1,336,437,043.58 | 1,383,888,803.64 | | **Total Assets** | **2,000,907,532.48** | **2,062,086,439.51** | | **Total Current Liabilities** | 1,125,002,952.75 | 1,092,578,310.07 | | **Total Non-current Liabilities** | 722,651,949.25 | 754,612,522.72 | | **Total Liabilities** | **1,847,654,902.00** | **1,847,190,832.79** | | **Total Equity Attributable to Parent Company Owners** | 180,692,937.35 | 236,682,568.86 | | **Total Owners' Equity** | **153,252,630.48** | **214,895,606.72** | [Consolidated Income Statement](index=42&type=section&id=3.%20Consolidated%20Income%20Statement) First-half total operating revenue was **218 million Yuan** (**-13.54%** YoY), total operating costs **281 million Yuan** (**-12.52%** YoY), and net loss narrowed to **-55.99 million Yuan** | Item | 2025 Half-Year (Yuan) | 2024 Half-Year (Yuan) | | :--- | :--- | :--- | | **I. Total Operating Revenue** | **218,009,096.08** | **252,136,292.00** | | **II. Total Operating Costs** | 280,858,107.07 | 321,070,403.08 | | Including: Operating Costs | 213,457,588.55 | 241,976,186.68 | | **III. Operating Profit** | -61,506,259.44 | -69,198,412.87 | | **IV. Total Profit** | -61,621,882.72 | -69,239,953.87 | | **V. Net Profit** | -61,642,976.24 | -69,101,257.13 | | Net Profit Attributable to Parent Company Shareholders | -55,989,631.51 | -63,664,935.45 | | Minority Interest Income/Loss | -5,653,344.73 | -5,436,321.68 | [Consolidated Cash Flow Statement](index=44&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) First-half net operating cash flow was **15.05 million Yuan** (**+11.08%** YoY), with net outflows from investing and financing, and period-end cash equivalents at **133 million Yuan** | Item | 2025 Half-Year (Yuan) | 2024 Half-Year (Yuan) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | **15,053,308.51** | **13,551,344.10** | | **Net Cash Flow from Investing Activities** | **-21,861,892.08** | **-50,058,021.45** | | **Net Cash Flow from Financing Activities** | **-24,807,420.17** | **44,521,609.76** | | **Net Increase in Cash and Cash Equivalents** | **-31,616,003.74** | **8,014,932.41** | | **Cash and Cash Equivalents at Period-End** | **133,373,932.59** | **186,307,770.38** | [Notes to Consolidated Financial Statements](index=70&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) Key financial statement items are detailed, including top five accounts receivable debtors at **41.44%**, development costs at **359 million Yuan**, total borrowings at **864 million Yuan**, and significant guarantees | Inventory Classification | Period-End Book Value (Yuan) | | :--- | :--- | | Raw Materials | 1,918,118.24 | | Merchandise Inventory | 1,807,166.88 | | **Development Costs** | **358,664,881.17** | | Low-value Consumables | 2,018,957.46 | | **Total** | **364,409,123.75** | | Borrowing Classification | Period-End Balance (Yuan) | | :--- | :--- | | Short-term Borrowings | 637,233,907.82 | | Long-term Borrowings | 226,900,000.00 | | **Total** | **864,133,907.82** | [Other Submitted Data](index=133&type=section&id=Section%209%20Other%20Submitted%20Data) This section details the company's financial transactions with related parties [Fund Transactions with Related Parties](index=133&type=section&id=III.%20Fund%20Transactions%20Between%20Listed%20Company%20and%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) Non-operating fund transfers to subsidiaries resulted in a total year-end balance of **483.7871 million Yuan** in receivables from related parties | Related Party (Receivable) | Nature of Transaction | Period-End Balance (Yuan) | | :--- | :--- | :--- | | Xi'an Xilv Yibai Hotel Investment Co., Ltd | Non-operating Transaction | 226,101,700 | | Xi'an Tourism Ecological Industry Co., Ltd | Non-operating Transaction | 89,224,200 | | Diebu County Zagana Kangyang Real Estate Co., Ltd | Non-operating Transaction | 78,607,400 | | **Total** | **--** | **483,787,100** |