顺博合金(002996) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents and Definitions Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no plans for cash dividends, bonus shares, or capital increase from reserves - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[4] - Company head Wang Zhenjian, chief accountant Lu Lutao, and head of accounting department Li Feifei declare that the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[5] Table of Contents This section provides a detailed overview of the report's structure, listing nine main chapters covering company profile, management discussion, governance, and financial statements - The report's table of contents is clear, comprising nine main chapters such as Company Profile, Management Discussion and Analysis, and Financial Report[7] Definitions This section defines key terms used in the report, including company names, subsidiaries, regulatory bodies, and industry-specific vocabulary for clarity - This section defines company names, major subsidiaries, regulatory bodies, and professional terms related to the recycled aluminum industry, such as "Shunbo Alloy" and "recycled aluminum"[13] Section II Company Profile and Key Financial Indicators I. Company Profile The company, known as Shunbo Alloy (stock code 002996), is listed on the Shenzhen Stock Exchange, with Wang Zhenjian as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Shunbo Alloy | | Stock Code | 002996 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Chongqing Shunbo Aluminum Alloy Co., Ltd. | | Legal Representative | Wang Zhenjian | II. Contact Persons and Information Li Xiaohua serves as Board Secretary and Zhang Kaili as Securities Affairs Representative, with disclosed contact details including address, phone, and email Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Xiaohua | 22nd Floor, Block B, Palm Springs International Center, No. 90 Jinkai Avenue, Yubei District, Chongqing | 023-63202996 | 023-42460123 | ir@sballoy.com | | Securities Affairs Representative | Zhang Kaili | 22nd Floor, Block B, Palm Springs International Center, No. 90 Jinkai Avenue, Yubei District, Chongqing | 023-63202996 | 023-42460123 | ir@sballoy.com | III. Other Information The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period - The company's contact information, information disclosure, and storage locations remained unchanged during the reporting period, as detailed in the 2024 annual report[17][18] IV. Key Accounting Data and Financial Indicators This period saw revenue grow by 11.75%, net profit attributable to shareholders surge by 110.56%, and basic EPS increase by 58.82%, while operating cash flow decreased by 31.87% Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year) | Indicator | Current Reporting Period (Yuan) | Prior Year (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 7,126,279,774.01 | 6,376,853,691.63 | 11.75% | | Net Profit Attributable to Shareholders of Listed Company | 176,634,781.94 | 83,888,171.50 | 110.56% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 151,055,661.76 | 70,570,447.33 | 114.05% | | Net Cash Flow from Operating Activities | 167,315,469.19 | 245,568,407.23 | -31.87% | | Basic Earnings Per Share (Yuan/share) | 0.27 | 0.17 | 58.82% | | Diluted Earnings Per Share (Yuan/share) | 0.24 | 0.17 | 41.18% | | Weighted Average Return on Net Assets | 5.44% | 2.89% | 2.55% | | Current Reporting Period End vs. Prior Year End | | | | | Total Assets (Yuan) | 13,711,635,292.02 | 12,991,406,362.54 | 5.54% | | Net Assets Attributable to Shareholders of Listed Company (Yuan) | 3,271,363,393.51 | 3,182,677,070.19 | 2.79% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, there were no differences in net profit or net assets between financial reports prepared under international/overseas and Chinese accounting standards - The company had no differences in accounting data under domestic and overseas accounting standards during the reporting period[21][22] VI. Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to 25.58 million Yuan, primarily from government subsidies and fair value changes of financial assets, with industrial development funds classified as recurring Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -1,726,829.87 | | Government grants recognized in current profit or loss | 12,025,996.22 | | Gains or losses from changes in fair value of financial assets and liabilities, and disposal gains or losses (excluding hedging) | 24,668,400.15 | | Other non-operating income and expenses | -1,828,312.31 | | Less: Income tax impact | 7,434,209.85 | | Impact on minority interests (after tax) | 125,924.16 | | Total | 25,579,120.18 | - The company classifies industrial development funds (141,949,893.89 Yuan) as recurring gains and losses because they are closely related to the company's normal operations, the amount is determinable, and they are continuously obtained[25] Section III Management Discussion and Analysis I. Main Business Activities During the Reporting Period The company's core business involves producing and selling recycled aluminum alloy ingots and liquids, operating in the circular economy with three segments: cast aluminum, wrought aluminum, and aluminum ash hazardous waste disposal - The company's main business is the production and sale of recycled aluminum alloy ingots and liquids, operating in the circular economy as a resource-saving and environmentally friendly industry[27] - The company's main business is divided into cast aluminum alloy, wrought aluminum alloy, and aluminum ash hazardous waste disposal segments[27] - The company operates on a "produce-to-order, procure-to-produce" business model, achieving profitability through high asset turnover efficiency and business chain control[31] 1. Main Business The company produces recycled aluminum alloy ingots and wrought aluminum from scrap, with 1.05 million tons of cast aluminum capacity, 50,000 tons of wrought aluminum capacity, and a hazardous waste disposal segment - The cast aluminum alloy segment has 4 production bases in Hechuan (Chongqing), Qingyuan (Guangdong), Xiangyang (Hubei), and Ma'anshan (Anhui), with a total capacity of 1.05 million tons, and Anhui Shunbo Phase I (400,000 tons capacity) has been released and is ramping up production[28] - The wrought aluminum alloy segment's Chongqing Aobo has a 50,000-ton capacity, with Anhui Shunbo Phase II under construction, aiming to expand capacity and extend into deep processing of aluminum materials and high-value-added products[28] - The aluminum ash hazardous waste disposal segment actively improves its harmless disposal and comprehensive utilization technologies, achieving a closed-loop industrial chain[29] 2. Main Products Main products include recycled aluminum alloy ingots (ADC12, A380, AC4B) for automotive and general machinery, and wrought aluminum sheets (1050-8011 series) for various industrial applications - The main products of cast aluminum alloy are recycled aluminum alloy ingots and liquids such as ADC12, A380, and AC4B, primarily used in the automotive, general machinery, communication equipment, and electronic appliance industries[30] - The main products of wrought aluminum alloy are aluminum sheets and strips from Chongqing Aobo, covering 1050, 1060, 1100, 3003, 3004, 3005, 5052, 6061, and 8011 series, widely used in medicine cans, battery casings, energy-saving lamp reflectors, and 3C products[30] 3. Business Model The company operates on a "produce-to-order, procure-to-produce" model, utilizing direct and distribution sales, market-based and cost-plus pricing, and flexible procurement strategies - The company's sales model is primarily direct sales, with pricing models including "market-based pricing" and "cost-plus pricing" to control raw material market price fluctuations and ensure reasonable processing profits[32] - The production model is order-based, arranged according to customer orders, focusing on raw material proportioning, process optimization, and new technology application, with inventory prepared for general grades[33] - The procurement model is flexible, with procurement plans formulated based on production plans and raw material conditions, increasing procurement efforts to address market supply-demand and price fluctuation risks[34] II. Analysis of Core Competencies Core competencies include diversified regional layout, broad product applications, leading technology, scaled production, complete industrial chain, and efficient group management, strengthening market leadership and resilience - The company has production bases with 1.05 million tons capacity in Southwest, South, East, and Central China, forming a diversified regional layout that reduces transportation costs and increases market share[35] - Products are widely used in diversified industries such as automotive, motorcycles, machinery, communication equipment, and electronic appliances, particularly benefiting from the lightweight trend in new energy vehicles[37] - The company possesses deep technological expertise, is a drafting unit for the national standard "Recycled Cast Aluminum Alloy Raw Materials," and enhances production efficiency and product quality through intelligent sorting, low-carbon combustion, waste heat recovery, precise control, and digital quality control technologies[38] - The company's production scale is leading, consistently ranking first in market share in Southwest China for many years and among the top tier in the domestic recycled aluminum industry, demonstrating strong supply assurance and expansion support capabilities[39] - The company has built a complete aluminum processing industrial chain, achieving a "recycled cast aluminum alloy + recycled wrought aluminum alloy" dual-driven strategy with synergistic aluminum ash hazardous waste disposal, enhancing overall competitiveness[40] - The company implements group-wide management through five major management centers: sales, finance, human resources, procurement, and R&D manufacturing, ensuring efficient operations and achievement of business objectives[41] III. Analysis of Main Business Main business revenue grew by 11.75% due to increased sales volume and higher aluminum prices, while operating cash flow decreased by 31.87% due to higher tax payments Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 7,126,279,774.01 | 6,376,853,691.63 | 11.75% | Scale expansion, sales volume up 7.27%; aluminum price fluctuations affected average selling price. | | Operating Cost | 6,872,143,115.76 | 6,152,577,645.11 | 11.70% | Scale expansion, sales volume up 7.27%; aluminum price fluctuations affected average procurement price. | | Selling Expenses | 13,223,483.51 | 15,293,884.49 | -13.54% | Jiangsu Shunbo not included in consolidation scope for this reporting period. | | Administrative Expenses | 44,456,582.60 | 48,929,199.65 | -9.14% | Jiangsu Shunbo transferred, Hubei Building Materials production line adjusted. | | Income Tax Expense | 14,976,006.88 | 19,998,550.57 | -25.11% | Decrease in corporate income tax settlement supplementary tax amount; decrease in Anhui Shunbo's tax burden. | | Net Cash Flow from Operating Activities | 167,315,469.19 | 245,568,407.23 | -31.87% | Increase in taxes paid. | | Net Cash Flow from Investing Activities | -1,284,773,623.04 | -995,146,103.32 | 29.10% | Bank time deposit interest rates higher than discount rates, company increased time deposit scale. | | Net Cash Flow from Financing Activities | 1,731,882,512.26 | 1,373,478,062.28 | 26.09% | Bill margin recovered upon maturity. | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Waste Resource Comprehensive Utilization | 7,047,292,644.71 | 98.89% | 6,308,420,167.06 | 98.93% | 11.71% | | | Other Businesses | 78,987,129.30 | 1.11% | 68,433,524.57 | 1.07% | 15.42% | | By Product | Aluminum Alloy Ingots (Liquid) | 6,648,477,569.79 | 93.30% | 5,960,238,555.02 | 93.47% | 11.55% | | | Rolled Aluminum Products | 376,255,928.01 | 5.28% | 244,136,677.93 | 3.83% | 54.12% | | By Region | East China | 3,406,908,146.44 | 47.81% | 3,041,072,825.89 | 47.69% | 12.03% | | | Southwest China | 1,985,443,312.43 | 27.86% | 1,852,147,428.04 | 29.04% | 7.20% | | | South China | 1,037,536,374.24 | 14.56% | 941,764,187.98 | 14.77% | 10.17% | Industries, Products, or Regions Accounting for Over 10% of Company's Operating Revenue or Operating Profit | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Waste Resource Comprehensive Utilization | 7,047,292,644.71 | 6,832,352,589.26 | 3.05% | 11.71% | 11.44% | 0.24% | | By Product | | | | | | | | Aluminum Alloy Ingots (Liquid) | 6,648,477,569.78 | 6,456,300,609.10 | 2.89% | 11.55% | 11.39% | 0.14% | | By Region | | | | | | | | East China | 3,406,908,146.45 | 3,349,692,984.40 | 1.68% | 12.03% | 13.54% | -1.31% | | South China | 1,037,536,374.24 | 1,001,543,841.35 | 3.47% | 10.17% | 9.07% | 0.97% | | Southwest China | 1,985,443,312.43 | 1,878,850,919.04 | 5.37% | 7.20% | 3.04% | 3.82% | IV. Analysis of Non-Core Business Non-core businesses had no significant impact on the company's performance during the reporting period - The company had no non-core business analysis during the reporting period[46] V. Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders increased, with a notable rise in construction in progress due to Anhui Shunbo Phase II, and significant increases in short-term and long-term borrowings Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,849,303,653.55 | 13.49% | 1,958,658,183.93 | 15.08% | -1.59% | Decrease in balance due to maturity and acceptance payment of margin deposits. | | Accounts Receivable | 2,975,631,532.75 | 21.70% | 3,372,303,930.02 | 25.96% | -4.26% | Increased proportion of cash sales and sales to customers with shorter credit terms, intensified collection efforts. | | Construction in Progress | 608,556,820.28 | 4.44% | 125,695,975.57 | 0.97% | 3.47% | Increase due to Anhui Shunbo Phase II construction. | | Short-term Borrowings | 7,175,522,325.10 | 52.33% | 6,149,000,591.02 | 47.33% | 5.00% | Bank time deposit interest rates higher than discount rates, company increased internal bill settlement scale. | | Long-term Borrowings | 418,631,640.76 | 3.05% | 258,700,000.00 | 1.99% | 1.06% | Increased funding needs for Anhui Shunbo Phase II project construction. | | Other Current Assets | 4,534,534,911.17 | 33.07% | 3,484,050,069.71 | 26.82% | 6.25% | Increase in time deposits. | | Notes Payable | 716,855,375.15 | 5.23% | 1,649,290,000.00 | 12.70% | -7.47% | Bank time deposit interest rates higher than discount rates, company increased internal bill settlement, external notes payable settlement scale decreased. | - The company had no major overseas assets at the end of the reporting period[49] - The company's financial assets measured at fair value totaled 62,691,054.46 Yuan at the end of the reporting period, primarily including trading financial assets and other equity instrument investments[49] - As of the end of the reporting period, details of restricted asset rights are provided in the notes to the financial statements[50] VI. Analysis of Investment Status Total investment decreased by 60.35%, with significant equity investments in Anhui Shunbo and Anhui Shunbo Environmental New Materials, and successful hedging through commodity futures derivatives Overall Investment Situation | Indicator | Investment Amount in Reporting Period (Yuan) | Investment Amount in Prior Year (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 112,182,391.53 | 282,936,368.01 | -60.35% | Significant Equity Investments During the Reporting Period | Investee Company Name | Investment Amount (Yuan) | Shareholding Ratio | Estimated Profit (Yuan) | Current Period Investment Gain/Loss (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Shunbo Alloy Anhui Co., Ltd. | 99,152,391.53 | 100.00% | 50,000,000.00 | 55,223,639.09 | | Anhui Shunbo Environmental New Materials Co., Ltd. | 10,030,000.00 | 34.00% | - | -631,757.77 | - The company had no ongoing significant non-equity investments during the reporting period[55] - The company had no securities investments or derivative investments for speculative purposes during the reporting period[55][60] - The company engaged in commodity futures derivative investments for hedging purposes, recognizing 5.43 million Yuan in derivative investment income during the reporting period, achieving its hedging objective[57] Overall Use of Raised Funds | Fundraising Method | Total Raised Funds (10,000 Yuan) | Total Raised Funds Used (10,000 Yuan) | Total Raised Funds with Changed Use (10,000 Yuan) | Unused Raised Funds (10,000 Yuan) | Proportion of Unused Raised Funds to Net Raised Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Public Issuance of Convertible Corporate Bonds | 83,000 | 81,895.09 | 0 | 299.64 | 0.37% | | Issuance of Shares to Specific Objects | 60,000 | 59,329.61 | 0 | 0 | 0.00% | | Total | 143,000 | 141,224.70 | 0 | 299.64 | 0.21% | - The net proceeds from convertible bonds were 818.95 million Yuan, with 815.95 million Yuan cumulatively used, and the remaining 2.9964 million Yuan allocated for final engineering payments and quality assurance deposits[63][64] - The net proceeds from the issuance of shares to specific objects were 593.30 million Yuan, with 595.02 million Yuan cumulatively used, indicating all raised funds have been utilized, with the difference representing net income from wealth management and interest after deducting fees[65][66] - The Anhui Shunbo Phase I project did not achieve expected benefits, primarily due to changes in the market price environment of the recycled aluminum industry, leading to a reduction in gross profit per ton of product[68] VII. Significant Asset and Equity Disposals No significant asset or equity disposal events occurred during the reporting period - The company did not dispose of significant assets during the reporting period[71] - The company did not dispose of significant equity during the reporting period[72] VIII. Analysis of Major Holding and Participating Companies Key subsidiaries like Guangdong Shunbo, Hubei Shunbo, and Anhui Shunbo are crucial in aluminum alloy production, sheet manufacturing, and trade, with Anhui Shunbo reporting the highest net profit Financial Data of Major Holding and Participating Companies (Current Reporting Period) | Company Name | Company Type | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Shunbo Aluminum Alloy Co., Ltd. | Subsidiary | 80,000,000.00 | 799,437,355.96 | 445,670,559.78 | 1,134,537,821.86 | 22,268,162.15 | 19,698,392.72 | | Shunbo Aluminum Alloy Hubei Co., Ltd. | Subsidiary | 200,000,000.00 | 1,540,648,618.71 | 622,521,209.18 | 1,674,659,467.21 | 63,366,037.90 | 63,285,744.43 | | Shunbo Alloy Anhui Co., Ltd. | Subsidiary | 1,000,000,000.00 | 2,834,867,310.08 | 1,301,434,475.67 | 2,107,446,888.68 | 53,869,419.25 | 55,223,639.09 | | Chongqing Aobo Aluminum Manufacturing Co., Ltd. | Subsidiary | 305,000,000.00 | 563,037,000.65 | 196,141,965.56 | 384,826,247.88 | 8,596,142.44 | 8,622,371.35 | | Chongqing Shunbo Aluminum Alloy Sales Co., Ltd. | Subsidiary | 500,000,000.00 | 6,246,338,346.87 | 443,257,124.80 | 4,477,490,681.42 | 32,008,624.10 | 32,008,623.63 | | Chongqing Jinjiajia Trading Co., Ltd. | Subsidiary | 15,000,000.00 | 429,206,999.16 | 6,820,709.23 | 17,318,790.95 | 36,618,382.75 | 26,767,921.23 | - The company did not acquire or dispose of subsidiaries during the reporting period[73] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[80] X. Risks Faced by the Company and Countermeasures The company faces risks from aluminum price fluctuations, environmental and safety issues, and talent mismatch, addressed by flexible procurement, process optimization, enhanced EHS management, and diversified talent strategies - The company faces risks from aluminum price fluctuations; a sustained decline in aluminum prices may reduce gross profit, while excessively high prices could lead to price corrections[80] - Countermeasures for aluminum price fluctuation risks include leveraging procurement advantages, strengthening cooperation with suppliers, flexible procurement strategies, maintaining reasonable raw material inventory, moderate hedging, optimizing production processes, and enhancing bargaining power[81] - The company faces environmental protection and safety production risks, which could lead to increased environmental expenditures or safety accidents[82] - Countermeasures for environmental and safety production risks include strict adherence to environmental requirements, strengthening pollutant prevention and treatment, continuous improvement and upgrading of environmental and safety facilities, and enhanced personnel training[83] - The company faces risks of talent demand and supply mismatch, which may affect the implementation progress and effectiveness of expansion plans[84] - Countermeasures for talent risks include attracting and cultivating various management and technical personnel through targeted training, social recruitment, and in-house training, and strengthening professional skills training for existing employees[84] XI. Implementation of Market Value Management System and Valuation Enhancement Plan The company has not established a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system nor disclosed a valuation enhancement plan[85] XII. Implementation of "Quality and Return Dual Improvement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[85] Section IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management No changes occurred in the company's directors, supervisors, or senior management during the reporting period - The company's directors, supervisors, and senior management did not change during the reporting period[86] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans no cash dividends, bonus shares, or capital increase from reserves for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[87] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures No equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[88] IV. Environmental Information Disclosure The company and its four main subsidiaries are all included in the list of enterprises required to disclose environmental information by law - The company and its 4 major subsidiaries are all included in the list of enterprises required to disclose environmental information by law[89] Enterprises Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Chongqing Shunbo Aluminum Alloy Co., Ltd. | Public Announcement of Chongqing Hechuan District 2025 Annual Environmental Information Disclosure Enterprise List | | 2 | Shunbo Aluminum Alloy Hubei Co., Ltd. | Public Announcement of Hubei Xiangyang Laohekou City 2025 Annual Environmental Information Disclosure Enterprise List | | 3 | Guangdong Shunbo Aluminum Alloy Co., Ltd. | Public Announcement of Guangdong Qingyuan City 2025 Annual Environmental Information Disclosure Enterprise List | | 4 | Shunbo Alloy Anhui Co., Ltd. | Public Announcement of Ma'anshan City 2025 Annual Environmental Information Disclosure Enterprise List | V. Social Responsibility The company and its subsidiaries actively fulfilled social responsibilities through donations supporting rural revitalization and disability welfare initiatives - The company and its subsidiaries actively responded to the call of the Party and government, contributing to rural revitalization and consolidating poverty alleviation achievements[90] - Hubei Shunbo, Guangdong Shunbo, and Anhui Shunbo each donated 20,000 Yuan to public welfare activities for Disability Day, rural revitalization strategies, and disabled performing arts support[91] Section V Significant Matters I. Fulfillment of Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and After the Reporting Period Commitments by actual controllers Wang Zhenjian, Wang Zengchao, Wang Qi, and Du Fuchang not to reduce company shareholdings were fulfilled during the reporting period - The commitments by the company's actual controllers Wang Zhenjian, Wang Zengchao, Wang Qi, and Du Fuchang not to reduce their shareholdings in the company were fulfilled on time[93] II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties No non-operating funds were occupied by controlling shareholders or other related parties during the reporting period - The company had no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[94] III. Irregular External Guarantees No irregular external guarantees were provided by the company during the reporting period - The company had no irregular external guarantees during the reporting period[95] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was unaudited[96] V. Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Period No non-standard audit report was issued for the company during the reporting period - The company had no non-standard audit report during the reporting period[97] VI. Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year No non-standard audit report was issued for the company during the reporting period - The company had no non-standard audit report during the reporting period[98] VII. Bankruptcy and Reorganization Matters No bankruptcy or reorganization matters occurred for the company during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[98] VIII. Litigation Matters No significant litigation, arbitration, or other legal proceedings were initiated against the company during the reporting period - The company had no significant litigation or arbitration matters during the current reporting period[99] IX. Penalties and Rectification No significant penalties or rectification situations were reported by the company during the reporting period - The company had no significant penalties or rectification situations during the reporting period[99] X. Integrity Status of the Company, Controlling Shareholders, and Actual Controllers No integrity issues were reported for the company, its controlling shareholders, or actual controllers during the reporting period - The company had no integrity issues concerning itself, its controlling shareholders, or actual controllers during the reporting period[100] XI. Significant Related Party Transactions The company engaged in market-priced, routine related-party transactions for goods and services but had no related-party asset/equity acquisitions, disposals, joint investments, non-operating debt, or financial dealings with affiliated finance companies Related Party Transactions Related to Daily Operations (Procurement of Goods/Acceptance of Services) | Related Party | Related Transaction Content | Current Period Transaction Amount (10,000 Yuan) | Approved Transaction Limit (10,000 Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Chongqing Shunbo Taidong Electromechanical Equipment Co., Ltd. | Procurement of goods, acceptance of services | 2,201.89 | - | - | | Chongqing Tailier Die Casting Co., Ltd. | Procurement of goods | 1.84 | 2,500 | No | | Chongqing Chentai Machinery Co., Ltd. | Procurement of goods | 4.99 | 2,500 | No | | Yu Can | Procurement of goods | 258.17 | 258.17 | No | | Ma'anshan Fanggetaidong Thermal Energy Technology Co., Ltd. | Procurement of goods | 0.25 | - | - | | Ma'anshan Anbo Aluminum-based New Materials Technology Co., Ltd. | Acceptance of services | 19.80 | - | - | Related Party Transactions Related to Daily Operations (Sale of Goods/Provision of Services) | Related Party | Related Transaction Content | Current Period Transaction Amount (10,000 Yuan) | Approved Transaction Limit (10,000 Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Haoyi Metal Products Co., Ltd. | Sale of goods | 973.84 | 2,500 | No | | Chongqing Chentai Machinery Co., Ltd. | Sale of goods | 654.51 | 2,500 | No | | Chongqing Shunbo Taidong Electromechanical Equipment Co., Ltd. | Sale of goods | 2.51 | - | - | - The company had no related-party transactions involving asset or equity acquisition or disposal during the reporting period[102][103] - The company had no related-party transactions involving joint external investment during the reporting period[104] - The company had no non-operating related-party creditor's rights or debts during the reporting period[105] - The company had no deposits, loans, credit lines, or other financial business dealings with affiliated finance companies[106] - The company's controlled finance company had no deposits, loans, credit lines, or other financial business dealings with related parties[107] - The company had no other significant related-party transactions during the reporting period[108] XII. Significant Contracts and Their Performance The company had no trusteeship or contracting arrangements but engaged in various leasing activities and provided several joint liability guarantees for subsidiaries, totaling 75.27% of net assets, alongside entrusted wealth management - The company had no trusteeship or contracting arrangements during the reporting period[109][110] - The company has multiple leasing operations, including leasing land and factory buildings to third parties, and providing housing leasing services to subsidiaries[112][113] - The company provided multiple joint liability guarantees for its subsidiaries, with actual guarantee balances totaling 2,462.41 million Yuan at the end of the reporting period, accounting for 75.27% of the company's net assets[116][124] Entrusted Wealth Management | Specific Type | Entrusted Wealth Management Amount (10,000 Yuan) | Unmatured Balance (10,000 Yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 19,008 | 0 | | Bank Wealth Management Products | 3,630 | 30 | | Brokerage Wealth Management Products | 100 | 1,853.01 | | Total | 22,738 | 1,883.01 | - The company had no other significant contracts during the reporting period[127] XIII. Explanation of Other Significant Matters No other significant matters requiring explanation were reported by the company during the reporting period - The company had no other significant matters requiring explanation during the reporting period[128] XIV. Significant Matters of Company Subsidiaries No significant matters concerning company subsidiaries were reported during the reporting period - The company had no significant matters concerning subsidiaries during the reporting period[129] Section VI Share Changes and Shareholder Information I. Share Fluctuation Total shares slightly increased due to convertible bond conversions, restricted shares decreased, and unrestricted shares increased, with the company completing a share repurchase plan Share Fluctuation | Share Type | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 253,034,857 | 37.80% | -62,100 | 252,972,757 | 37.79% | | II. Unrestricted Shares | 416,401,557 | 62.20% | 62,267 | 416,463,824 | 62.21% | | III. Total Shares | 669,436,414 | 100.00% | 167 | 669,436,581 | 100.00% | - The number of shares changed due to convertible bond conversions during this reporting period[133] - As of June 18, 2025, the company completed its share repurchase plan, cumulatively repurchasing 8,605,520 shares, accounting for 1.29% of the total share capital, with a total repurchase amount of 55,576,183.6 Yuan[133] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Zengchao | 112,667,010 | 7,500 | 0 | 112,659,510 | Senior Management Lock-up Shares | | Wang Zhenjian | 108,571,957 | 0 | 0 | 108,571,957 | Senior Management Lock-up Shares | | Wang Qi | 31,440,015 | 0 | 0 | 31,440,015 | Senior Management Lock-up Shares | | Wang Hui | 220,350 | 54,600 | 0 | 165,750 | Senior Management Lock-up Shares | | Wu Jianghua | 117,000 | 0 | 0 | 117,000 | Senior Management Lock-up Shares | | Luo Le | 18,525 | 0 | 0 | 18,525 | Senior Management Lock-up Shares | | Total | 253,034,857 | 62,100 | 0 | 252,972,757 | -- | II. Securities Issuance and Listing No securities issuance or listing activities occurred for the company during the reporting period - The company had no securities issuance or listing activities during the reporting period[137] III. Number of Shareholders and Shareholding Structure The company had 33,515 common shareholders at period-end, with Wang Zengchao, Wang Zhenjian, Du Fuchang, and Wang Qi as major shareholders, and the company's repurchase account holding 1.29% of total shares - The total number of common shareholders at the end of the reporting period was 33,515 accounts[138] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Zengchao | Domestic Natural Person | 22.44% | 150,212,681 | 112,659,510 | 37,553,171 | | Wang Zhenjian | Domestic Natural Person | 21.62% | 144,762,610 | 108,571,957 | 36,190,653 | | Du Fuchang | Domestic Natural Person | 6.30% | 42,165,889 | 0 | 42,165,889 | | Wang Qi | Domestic Natural Person | 6.26% | 41,920,021 | 31,440,015 | 10,480,006 | - Wang Zengchao, Wang Zhenjian, and Wang Qi are three brothers and are the company's actual controllers, acting in concert[139] - The company's dedicated share repurchase securities account holds 8,605,520 shares, accounting for 1.29% of the company's total share capital[139] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management No changes in shareholdings of the company's directors, supervisors, or senior management occurred during the reporting period - The company's directors, supervisors, and senior management had no changes in shareholdings during the reporting period[140] V. Changes in Controlling Shareholder or Actual Controller No changes occurred in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[141] - The company's actual controller did not change during the reporting period[141] Section VII Bond-Related Information I. Corporate Bonds The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[144] II. Company Bonds The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[145] III. Non-Financial Enterprise Debt Financing Instruments The company had no non-financial enterprise debt financing instruments during the reporting period - The company had no non-financial enterprise debt financing instruments during the reporting period[146] IV. Convertible Corporate Bonds The company issued 830 million Yuan in convertible bonds ("Shunbo Convertible Bonds," code 127068) on August 12, 2022, with 8,316 holders and no guarantors, and a current conversion price of 11.27 Yuan per share - The company publicly issued 830 million Yuan in convertible bonds on August 12, 2022, with the bond abbreviation "Shunbo Convertible Bonds" and code "127068", listed and traded on the Shenzhen Stock Exchange on September 7, 2022[147] - At the end of the reporting period, the number of convertible bondholders was 8,316 accounts, with no guarantors[148] Changes in Convertible Bonds During the Reporting Period | Convertible Corporate Bond Name | Amount Before This Change (Yuan) | Increase/Decrease in This Change (Conversion to Shares) (Yuan) | Amount After This Change (Yuan) | | :--- | :--- | :--- | :--- | | Shunbo Convertible Bonds | 829,968,200.00 | -1,900.00 | 829,966,300.00 | - As of June 30, 2025, a cumulative total of 33,700.00 Yuan of Shunbo Convertible Bonds had been converted into the company's A-shares, with a cumulative conversion of 2,010 shares, accounting for 0.005% of the company's total issued shares before the convertible bond conversion[153][155] - The conversion price of Shunbo Convertible Bonds has been adjusted multiple times, with the latest conversion price being 11.27 Yuan/share[155] - As of June 30, 2025, the company's asset-liability ratio was 75.96%, an increase of 0.64% from the end of the previous year, with a long-term credit rating of "AA-" and a "stable" outlook[156] V. Consolidated Statement Loss Exceeding 10% of Net Assets at Year-End The consolidated statement loss did not exceed 10% of net assets at the previous year-end during the reporting period - The company's consolidated statement loss did not exceed 10% of net assets at the previous year-end during the reporting period[158] VI. Key Accounting Data and Financial Indicators for the Past Two Years as of the End of the Reporting Period Net profit excluding non-recurring items surged by 114.05% over two years, and interest coverage ratio significantly improved by 87.99%, indicating enhanced profitability and solvency Key Accounting Data and Financial Indicators for the Past Two Years | Indicator | Current Reporting Period | Prior Year | Current Reporting Period vs. Prior Year Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.24 | 1.27 | -2.36% | | Asset-Liability Ratio | 75.96% | 75.32% | 0.64% | | Quick Ratio | 1.13 | 1.16 | -2.59% | | Net Profit Excluding Non-Recurring Gains/Losses (10,000 Yuan) | 15,105.57 | 7,057.04 | 114.05% | | EBITDA to Total Debt Ratio | 2.92% | 3.22% | -0.30% | | Interest Coverage Ratio | 5.32 | 2.83 | 87.99% | | Cash Interest Coverage Ratio | 3.76 | 4.39 | -14.35% | | EBITDA Interest Coverage Ratio | 6.84 | 4 | 71.00% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | Section VIII Financial Report I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[162] II. Financial Statements This section presents consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, showing total assets of 13.71 billion Yuan and net profit of 177 million Yuan Consolidated Balance Sheet Summary (Period-End Balance) | Item | Period-End Balance (Yuan) | | :--- | :--- | | Total Current Assets | 11,361,669,483.36 | | Total Non-Current Assets | 2,349,965,808.66 | | Total Assets | 13,711,635,292.02 | | Total Current Liabilities | 9,147,124,849.70 | | Total Non-Current Liabilities | 1,268,737,039.83 | | Total Liabilities | 10,415,861,889.53 | | Total Equity Attributable to Parent Company Owners | 3,271,363,393.51 | | Minority Interests | 24,410,008.98 | | Total Equity | 3,295,773,402.49 | Consolidated Income Statement Summary (Current Period) | Item | 2025 Semi-Annual (Yuan) | | :--- | :--- | | Total Operating Revenue | 7,126,279,774.01 | | Total Operating Cost | 7,060,898,348.01 | | Operating Profit | 196,917,491.61 | | Total Profit | 192,344,039.08 | | Income Tax Expense | 14,976,006.88 | | Net Profit | 177,368,032.20 | | Net Profit Attributable to Parent Company Shareholders | 176,634,781.94 | | Minority Interest Income/Loss | 733,250.26 | | Total Comprehensive Income | 177,970,257.20 | | Basic Earnings Per Share (Yuan/share) | 0.27 | | Diluted Earnings Per Share (Yuan/share) | 0.24 | Consolidated Cash Flow Statement Summary (Current Period) | Item | 2025 Semi-Annual (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 167,315,469.19 | | Net Cash Flow from Investing Activities | -1,284,773,623.04 | | Net Cash Flow from Financing Activities | 1,731,882,512.26 | | Net Increase in Cash and Cash Equivalents | 614,424,358.41 | | Cash and Cash Equivalents at End of Period | 1,456,619,489.67 | III. Company Overview Registered in Chongqing, the company is a joint-stock enterprise with 669.44 million Yuan in registered capital, operating in waste resource utilization, primarily producing and selling recycled aluminum alloy ingots - The company's registered capital is 669.44 million Yuan, belongs to the C42 Waste Resource Comprehensive Utilization industry, and its main business is the production and sale of recycled aluminum alloy ingots and liquids[194][198] - The company's controlling shareholders and actual controllers are the three brothers Wang Zengchao, Wang Zhenjian, and Wang Qi, who collectively hold 50.32% of the company's shares[198] - The scope of consolidated financial statements for this year includes the company and 20 subsidiaries, covering businesses such as aluminum alloy ingot manufacturing, metal material research, environmental new materials, transportation, and trade[199][203] IV. Basis of Financial Statement Preparation Financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards, with no significant doubts regarding the company's ability to continue as a going concern - The company prepares its financial statements on a going concern basis, in accordance with the "Enterprise Accounting Standards - Basic Standards" and other accounting standards[204] - The company's ability to continue as a going concern is good, with no significant doubts identified that would impact its going concern assumption[205] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including those for financial instruments, revenue recognition, and government grants, confirming no changes during the reporting period - The company's financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting its financial position and operating results[207] - The company adopts the calendar year as its accounting period, with the operating cycle from January 1 to December 31 each year, and the functional currency is RMB[208][209][210] - The company classifies, measures, and impairs financial instruments, including financial assets and liabilities measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss[236][240][245][250] - The company recognizes revenue in accordance with new revenue standards, based on whether performance obligations are satisfied over time or at a point in time, and measures revenue at the transaction price allocated to each distinct performance obligation[331][333][336] - The company had no significant changes in accounting policies and estimates during the reporting period[361] VI. Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, with various tax incentives for disability employment, resource utilization, and high-tech enterprises Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | 13%, 9%, 6%, 3% | | Urban Maintenance and Construction Tax | 5%, 7% | | Corporate Income Tax | 15%, 20%, 25% | | Education Surcharge | 3.00% | | Local Education Surcharge | 2.00% | - The company and some subsidiaries enjoy VAT immediate refund policies for employing disabled individuals and for comprehensive resource utilization[365] - The company and Guangdong Shunbo, Chongqing Aobo, and Shunbo Alloy Anhui Co., Ltd. enjoy a 15% corporate income tax preferential rate, while some subsidiaries enjoy corporate income tax benefits for small and micro-profit enterprises[367][368][369] - The company enjoys tax exemptions for property tax and urban land use tax, and Shunbo Aluminum Alloy Hubei Co., Ltd. enjoys a reduction in land use tax[371][372] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, highlighting a decrease in cash and receivables, a significant increase in construction in progress and borrowings, and a substantial rise in net profit Period-End Balances and Changes of Major Assets and Liabilities | Item | Period-End Balance (Yuan) | Beginning-of-Period Balance (Yuan) | Explanation of Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,849,303,653.55 | 1,958,658,183.93 | Slightly decreased, mainly due to maturity and acceptance payment of margin deposits. | | Trading Financial Assets | 18,830,054.46 | 28,030,054.46 | Decreased. | | Notes Receivable | 373,401,217.98 | 402,439,474.35 | Decreased. | | Accounts Receivable | 2,975,631,532.75 | 3,372,303,930.02 | Decreased, mainly due to increased proportion of cash sales and intensified collection efforts. | | Other Current Assets | 4,534,534,911.17 | 3,484,050,069.71 | Significantly increased, mainly due to an increase in time deposits. | | Construction in Progress | 608,556,820.28 | 125,695,975.57 | Significantly increased, mainly due to Anhui Shunbo Phase II construction. | | Short-term Borrowings | 7,175,522,325.10 | 6,149,000,591.02 | Increased, mainly due to an increase in internal bill settlement scale. | | Notes Payable | 716,855,375.15 | 1,649,290,000.00 | Significantly decreased, mainly due to an increase in internal bill settlement. | | Long-term Borrowings | 418,631,640.76 | 258,700,000.00 | Increased, mainly due to funding needs for Anhui Shunbo Phase II project construction. | Current Period Balances and Changes of Major Profit and Loss Items | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Explanation of Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 7,126,279,774.01 | 6,376,853,691.63 | Increased, mainly due to scale expansion and higher aluminum prices. | | Operating Cost | 6,872,143,115.76 | 6,152,577,645.11 | Increased, consistent with the trend in operating revenue. | | Net Profit Attributable to Parent Company Shareholders | 176,634,781.94 | 83,888,171.50 | Significantly increased by 110.56%. | | Net Cash Flow from Operating Activities | 167,315,469.19 | 245,568,407.23 | Decreased, mainly due to increased tax payments. | | Net Cash Flow from Investing Activities | -1,284,773,623.04 | -995,146,103.32 | Outflow increased, mainly due to an increase in time deposit scale. | | Net Cash Flow from Financing Activities | 1,731,882,512.26 | 1,373,478,062.28 | Increased, mainly due to the recovery of bill margin upon maturity. | - The total assets whose ownership or use rights were restricted at the end of the reporting period amounted to 5,367,702,359.09 Yuan, primarily consisting of monetary funds, notes receivable, fixed assets, and intangible assets used as pledges or collateral[544] VIII. Research and Development Expenses The company did not disclose specific R&D expenditure amounts but noted that development phase expenses are capitalized as intangible assets when conditions are met - R&D expenditures are divided into research phase expenditures and development phase expenditures; research phase expenditures are recognized in current profit or loss, while development phase expenditures are recognized as intangible assets when conditions are met[299][300] - Specific R&D expenditure amounts were not disclosed during the reporting period, nor were capitalized R&D projects or significant externally acquired in-progress projects[167][168] IX. Changes in Consolidation Scope No changes in the scope of consolidation occurred during the reporting period due to business combinations, reverse acquisitions, or subsidiary disposals - During the reporting period, the company did not undergo business combinations under non-common control[168] - During the reporting period, the company did not undergo business combinations under common control[170] - During the reporting period, the company did not undergo reverse acquisitions, dispose of subsidiaries, or experience other changes in the scope of consolidation[171] X. Interests in Other Entities The company holds interests in 20 wholly-owned or controlled subsidiaries, with no significant non-wholly-owned subsidiaries, and its investments in joint ventures and associates total 26.13 million Yuan - The company owns 20 subsidiaries, with shareholding ratios of 100% or controlling interests, and their business nature covers aluminum alloy ingot manufacturing, metal material research, environmental new materials, transportation, trade, and other businesses[199][203][678] - During the reporting period, the company had no significant non-wholly-owned subsidiaries, nor did it engage in transactions where the ownership interest in a subsidiary changed while control was maintained[680][683][686] Summary Financial Information of Insignificant Joint Ventures and Associates | Item | Period-End Balance/Current Period Amount (Yuan) | | :--- | :--- | | Total Carrying Amount of Investments in Joint Ventures | 26,130,344.31 | | --Net Profit | 943,481.34 | | --Total Comprehensive Income | 943,481.34 | - The company had no significant joint operations or structured entities not included in the consolidated financial statements during the reporting period[694][695] XI. Government Grants Government grants recognized as receivables totaled 81.42 million Yuan, with deferred income from grants at 63.08 million Yuan, and 94.88 million Yuan recognized as current period income - Government grants recognized as receivables at the end of the reporting period amounted to 81,424,871.88 Yuan[697] Liability Items Related to Government Grants | Account Title | Beginning-of-Period Balance (Yuan) | Amount Transferred to Other Income in Current Period (Yuan) | Period-End Balance (Yuan) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 65,865,937.38 | 2,788,939.30 | 63,076,998.08 | Asset-related | Government Grants Recognized in Current Profit or Loss | Account Title | Current Period Amount (Yuan) | | :--- | :--- | | Other Income | 94,860,821.31 | | Non-Operating Income | 16,693.07 | | Operating Cost | -141,949,893.89 | XII. Risks Related to Financial Instruments The company manages credit, market (currency, interest rate, price), and liquidity risks through strategies like high-rated bank deposits, bad debt provisions, foreign currency monitoring, and continuous cash flow management, without engaging in hedging - The company faces credit risk, market risk (exchange rate risk, interest rate risk, other price risks), and liquidity risk[701][704] - Credit risk management measures include depositing bank funds in highly-rated banks and making adequate provisions for bad debts on accounts receivable and other receivables[702] - Exchange rate risk: If foreign currencies appreciate or depreciate by 10%, net profit could be affected by approximately 1.61 million Yuan[707] - Interest rate risk: If borrowing interest rates rise or fall by 20%, pre-tax profit could be affected by 30.17 million Yuan to 49.75 million Yuan[708] - Liquidity risk management measures include continuously monitoring short-term and long-term funding needs, ensuring sufficient cash reserves, and obtaining standby funding commitments from major financial institution