国光股份(002749) - 2025 Q2 - 季度财报

Part I Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, the report's structural overview, and definitions of key terms for clarity Important Notes The Board, Supervisory Board, and senior management guarantee the report's accuracy, with the financial report certified by key executives - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, bearing individual and joint legal responsibility[3] - Company head He Jie, chief accountant Yang Lei, and head of accounting department Yang Lei declare the financial report's truthfulness, accuracy, and completeness[3] Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Share Capital Base | 466,358,550.00 shares | | Cash Dividend per 10 shares | 4.00 Yuan (tax inclusive) | | Bonus Shares | 0 shares (tax inclusive) | | Capital Reserve to Share Capital | No conversion | Table of Contents This section lists the report's structured directory, covering company profile, management discussion, governance, and financial statements - The report's table of contents clearly covers company profile, management discussion, corporate governance, significant matters, share changes, bond information, financial report, and other data[5] Definitions This section defines common terms, including company entities, subsidiaries, reporting period, and key agricultural product terminology - This section clarifies names of entities like the Company, Issuer, and major subsidiaries such as Guoguang Nongzi, Sichuan Jiazhi, and Run'er Technology[8] - Professional terms related to core businesses, including pesticide technical, formulations, plant growth regulators, and various pesticides, are explained in detail[8] - The reporting period is defined as January 1, 2025, to June 30, 2025[8] Part II Company Profile and Key Financial Indicators This section provides an overview of the company, its contact information, and a summary of key financial performance and position Company Profile Sichuan Guoguang Agrochemical Co., Ltd. (stock code: 002749) is listed on the Shenzhen Stock Exchange, with He Jie as its legal representative - The company's stock abbreviation is "Guoguang Shares," stock code "002749," listed on the Shenzhen Stock Exchange[10] - The company's legal representative is He Jie[10] Contact Persons and Information The company's Board Secretary is Yan Ming, and the Securities Affairs Representative is Li Chao, with consistent contact details - The Board Secretary is Yan Ming, and the Securities Affairs Representative is Li Chao[11] - Company contact address: No. 899 Beijing Road, Longquanyi District, Chengdu City, Sichuan Province[11] - Contact phone/fax: 028-66848862, email: dsh@scggic.com[11] 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 remained unchanged during the reporting period, as detailed in the 2024 annual report[12] - Information disclosure and storage locations remained unchanged during the reporting period, as detailed in the 2024 annual report[13] Key Accounting Data and Financial Indicators In H1 2025, operating revenue grew by 7.33% to 1.12 billion Yuan, with net profit attributable to shareholders increasing by 6.05% to 230.53 million Yuan Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,118,836,327.91 | 1,042,425,459.80 | 7.33% | | Net Profit Attributable to Shareholders | 230,530,454.99 | 217,372,888.31 | 6.05% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 226,713,885.96 | 213,570,132.60 | 6.15% | | Net Cash Flow from Operating Activities | 189,441,964.28 | 205,723,026.86 | -7.91% | | Basic Earnings Per Share (Yuan/share) | 0.50 | 0.50 | 0.00% | | Diluted Earnings Per Share (Yuan/share) | 0.50 | 0.48 | 4.17% | | Weighted Average Return on Net Assets | 11.24% | 12.38% | -1.14% | | Indicator | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 2,617,825,602.24 | 2,720,733,319.08 | -3.78% | | Net Assets Attributable to Shareholders | 2,060,677,347.77 | 2,102,769,041.62 | -2.00% | Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets under international or overseas accounting standards compared to Chinese standards - The company reported no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[16] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[17] Non-Recurring Gains and Losses and Amounts In H1 2025, the company's non-recurring gains and losses totaled 3.82 million Yuan, primarily from government grants and fair value changes Non-Recurring Gains and Losses and Amounts for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Disposal gains/losses of non-current assets | -90,364.59 | | Government grants recognized in current profit/loss (excluding those with continuous impact) | 4,123,070.11 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 687,722.92 | | Debt restructuring gains/losses | 500,000.00 | | Other non-operating income and expenses | -326,080.46 | | Less: Income tax impact | 829,970.23 | | Impact on minority interests (after tax) | 247,808.72 | | Total | 3,816,569.03 | - The company does not classify non-recurring gains and losses listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-Recurring Gains and Losses" as recurring gains and losses[20] Part III Management Discussion and Analysis This section analyzes the company's main businesses, core competencies, financial performance, investment activities, and risk management strategies Company's Main Businesses during the Reporting Period The company specializes in R&D, production, and sales of pesticide formulations, primarily plant growth regulators, and high-end water-soluble fertilizers (1) Company's Main Businesses The company primarily engages in R&D, production, and sales of plant growth regulator-based pesticide formulations and high-end water-soluble fertilizers - The company's main business is the research, development, production, and sales of pesticide formulations, primarily plant growth regulators, and high-end water-soluble fertilizers[22] - As of June 30, 2025, the company holds 330 pesticide product registration certificates (including 150 for plant growth regulators) and 132 fertilizer registration certificates[22] - The company is the largest enterprise in China in terms of registered plant growth regulator varieties and formulation sales revenue[22] (2) Industry Development The pesticide industry is moving towards efficiency and environmental friendliness, while water-soluble fertilizers offer significant market potential in sustainable agriculture 1. Pesticide Industry The pesticide industry is strictly regulated, evolving towards consolidation, specialization, and eco-friendly products, with increasing concentration and integration of technical and formulation production - National strict industry entry, product registration, and production licensing for pesticides drive the industry towards intensive, large-scale, specialized, and distinctive development[23] - In 2024, the top 100 pesticide enterprises achieved total sales of 276.23 billion Yuan, a 5.69% year-on-year increase, indicating rising industry concentration[25] - The pesticide industry faces significant barriers, including high entry barriers (long and costly registration), technical barriers (R&D and application technology), green barriers (stringent environmental requirements), and brand barriers (customer loyalty)[28][30] 2. Water-Soluble Fertilizers Water-soluble fertilizers offer significant advantages in efficiency, water conservation, and pollution reduction, aligning with national agricultural sustainability goals and presenting broad market prospects - Water-soluble fertilizers, as new environmentally friendly fertilizers, offer clear advantages in improving fertilizer utilization, saving water, reducing environmental pollution, enhancing crop quality, and decreasing labor[31] - Water-soluble fertilizers align with China's needs for water-saving agriculture and pollution-free agricultural product development, poised for rapid growth under national advocacy[32] - The company holds a leading position in the water-soluble fertilizer industry, particularly in amino acid-containing water-soluble fertilizers, and offers "water-fertilizer integration" solutions[32] (3) Company's Main Products and Uses As of June 30, 2025, the company holds 330 pesticide and 132 fertilizer registration certificates, offering a wide range of plant growth regulators and water-soluble fertilizers for crop management Company Pesticide and Fertilizer Registration Certificates (as of June 30, 2025) | Certificate Holder/Producer | Regulators (units) | Fungicides (units) | Insecticides (units) | Herbicides (units) | Others (units) | Total Pesticide Certificates (units) | Fertilizer Certificates (units) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Run'er Technology Co., Ltd. | 70 | 42 | 17 | 10 | 2 | 141 | 71 | | Chongqing Yi'er Shuangfeng Technology Co., Ltd. | 31 | 6 | 1 | 28 | - | 66 | 24 | | Shanxi Haozhida Biotechnology Co., Ltd. | 6 | 10 | 13 | - | - | 29 | 18 | | Hebi Quanfeng Biotechnology Co., Ltd. | 43 | 14 | 22 | 1 | 14 | 94 | 19 | | Total | 150 | 72 | 53 | 39 | 16 | 330 | 132 | - Key plant growth regulator products include Mepiquat Chloride, Naphthaleneacetic Acid, Paclobutrazol, Ethephon, Triacontanol, Forchlorfenuron, and Gibberellic Acid, used for regulating plant growth, increasing yield, and improving quality[33] - Water-soluble fertilizers, including amino acid-containing and macro-element types, provide plant nutrition, enhance yield and quality, and are suitable for various crops, vegetables, fruit trees, and garden plants[33][34] (4) Company's Business Model and Market Position The company is a high-tech enterprise integrating R&D, production, and sales, with five production bases and five marketing segments, primarily utilizing a dealer-based technical marketing model - The company is the largest in China in terms of registered plant growth regulator varieties and formulation sales revenue[34] - The company operates five production bases (Sichuan Jianyang, Chongqing Yongchuan, Shanxi Jiangxian, Henan Hebi, Henan Anyang) and five marketing segments (Guoguang Nongzi, Guoguang Garden, Yi'er Shuangfeng, Haozhida, Yi'er Quanfeng)[35] - The sales model primarily involves a "company-dealer-retailer-customer" network, supplemented by direct sales, and employs a technical marketing approach to provide solutions[36] (5) Key Performance Drivers in H1 2025 H1 2025 performance growth was driven by strong demand for agricultural inputs, national initiatives promoting plant growth regulators, enhanced marketing, R&D, and improved product margins - Agricultural inputs, as necessities for agricultural production, exhibit strong rigid demand and are less affected by macroeconomic conditions and policies[36] - National initiatives to boost large-scale grain and oil crop yields actively promote the application of plant growth regulators in field crops[37] - The company's "sales + product + technology + service" integrated solution marketing strategy effectively boosted product sales[37][38] - R&D capabilities continuously improved, with 9 new pesticide and 11 new fertilizer registration certificates obtained in H1, and an industry research institute co-established with scientific institutions[38] - Product gross profit margin and net profit margin both increased year-on-year, primarily due to higher sales of high-margin products and lower raw material prices compared to the prior year[39] Core Competitiveness Analysis The company's core competitiveness stems from its early mover advantage, strong brand, extensive marketing channels, robust innovation, comprehensive product portfolio, and experienced management team - The company boasts nearly forty years of first-mover advantage in the plant growth regulator industry, establishing a strong "Guoguang" brand image and customer loyalty[40] - Its marketing network extends to county and township levels, supported by over 1,000 professional technical marketing and service personnel, enhancing channel and end-user stickiness[40][41] - The company is one of the few domestic enterprises with a complete industrial chain for R&D, production, and sales of plant growth regulator technical and formulations, collaborating with research institutions and universities to boost innovation[41][42] - The company offers a rich product matrix, providing crop regulation technical solutions centered on plant growth regulators and comprehensive crop cultivation management solutions, increasing user loyalty[43][44] - The management team possesses extensive industry experience, deeply understanding industry trends and characteristics, ensuring sustained competitiveness and profitability[44][45] Main Business Analysis In H1 2025, operating revenue increased by 7.33% to 1.12 billion Yuan, with a significant 42.84% rise in R&D investment due to increased experimental expenses Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,118,836,327.91 | 1,042,425,459.80 | 7.33% | | | Operating Cost | 588,318,760.29 | 559,292,418.02 | 5.19% | | | Selling Expenses | 133,059,966.68 | 120,135,724.96 | 10.76% | | | Administrative Expenses | 69,087,568.51 | 67,455,656.68 | 2.42% | | | Financial Expenses | -7,485,169.23 | -7,675,735.10 | -2.48% | | | Income Tax Expense | 37,922,590.47 | 39,371,689.42 | -3.68% | | | R&D Investment | 44,170,818.53 | 30,922,550.65 | 42.84% | Primarily due to increased experimental expenses. | | Net Cash Flow from Operating Activities | 189,441,964.28 | 205,723,026.86 | -7.91% | | | Net Cash Flow from Investing Activities | -57,394,277.02 | 6,534,195.90 | -978.37% | Primarily due to increased net expenditure on structured deposits and other wealth management products. | | Net Cash Flow from Financing Activities | -306,564,462.17 | -207,785,915.63 | 47.54% | Primarily due to increased cash dividend payments in the current period. | | Net Increase in Cash and Cash Equivalents | -174,612,138.51 | 4,524,255.46 | -3,959.47% | Primarily due to increased cash dividends and net expenditure on structured deposits and other wealth management products. | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Pesticides | 781,456,855.99 | 69.85% | 724,819,897.90 | 69.53% | 7.81% | | Fertilizers | 297,892,303.09 | 26.63% | 278,442,557.03 | 26.71% | 6.99% | | Garden Materials | 28,472,577.71 | 2.54% | 28,769,569.01 | 2.76% | -1.03% | | Service Revenue | 11,014,591.12 | 0.98% | 10,393,435.86 | 1.00% | 5.98% | Operating Revenue Composition (by Region) | Region | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Southwest | 179,295,901.44 | 16.03% | 189,514,030.72 | 18.18% | -5.39% | | Northeast | 64,702,553.78 | 5.78% | 64,851,943.68 | 6.22% | -0.23% | | North China | 171,946,328.64 | 15.37% | 171,223,042.84 | 16.43% | 0.42% | | Central China | 175,194,046.94 | 15.66% | 152,777,831.21 | 14.66% | 14.67% | | South China | 148,456,466.33 | 13.27% | 126,351,947.96 | 12.12% | 17.49% | | East China | 176,382,950.60 | 15.76% | 162,531,747.18 | 15.59% | 8.52% | | Northwest | 195,217,370.12 | 17.45% | 171,644,696.42 | 16.47% | 13.73% | | Export Sales | 7,640,710.06 | 0.68% | 3,530,219.79 | 0.33% | 116.44% | Non-Core Business Analysis Non-core businesses had a minor impact on total profit, with investment income contributing 0.42% and asset/credit impairment losses totaling -2.94% Impact of Non-Core Businesses on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | | :--- | :--- | :--- | | Investment Income | 1,187,722.92 | 0.42% | | Fair Value Change Gains/Losses | 0.00 | 0.00% | | Asset Impairment | -4,024,857.81 | -1.42% | | Non-Operating Income | 1,452,098.02 | 0.51% | | Non-Operating Expenses | 1,850,460.94 | 0.65% | | Credit Impairment Losses | -4,308,474.34 | -1.52% | Asset and Liability Status Analysis At the end of the reporting period, total assets decreased by 3.78% to 2.62 billion Yuan, with a notable decline in monetary funds and an increase in accounts receivable and construction in progress 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 | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,186,654,788.65 | 45.33% | 1,420,344,810.06 | 52.20% | -6.87% | | Accounts Receivable | 51,582,346.10 | 1.97% | 31,498,566.14 | 1.16% | 0.81% | | Inventories | 363,035,230.94 | 13.87% | 359,671,400.38 | 13.22% | 0.65% | | Fixed Assets | 403,895,305.77 | 15.43% | 414,659,543.54 | 15.24% | 0.19% | | Construction in Progress | 100,528,711.18 | 3.84% | 81,932,720.45 | 3.01% | 0.83% | | Net Assets Attributable to Shareholders | 2,060,677,347.77 | - | 2,102,769,041.62 | - | -2.00% | - As of the end of the reporting period, 413.68 million Yuan of the company's bank deposits were restricted, including time deposits, accrued interest, and guarantees[56] Investment Status Analysis The company's investment increased by 4.31% year-on-year, with convertible bond projects facing delays due to land acquisition and safety enhancements, and a 30 million Yuan wealth management product unrecovered due to debt crisis Investment Amount in Reporting Period | Indicator | Investment Amount in Current Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 521,940,862.65 | 500,351,068.99 | 4.31% | Convertible Bond Raised Funds Investment Projects | Project Name | Committed Investment (10,000 Yuan) | Adjusted Investment (10,000 Yuan) | Cumulative Investment at Period-End (10,000 Yuan) | Investment Progress at Period-End | | :--- | :--- | :--- | :--- | :--- | | Relocation and Technical Upgrade Project for 22,000 tons/year High-Efficiency, Safe, and Environmentally Friendly Formulation Production Line | 14,500 | 14,500 | 5,348 | 36.88% | | Relocation and Technical Upgrade Project for 50,000 tons/year Water-Soluble Fertilizer (Specialty Fertilizer) Production | 9,500 | 9,500 | 3,126.89 | 32.91% | | Enterprise Technology Center Upgrade Project | 8,000 | 664.53 | 664.53 | 100.00% | | 15,000 tons/year Technical and Intermediate Synthesis Production Project | 0 | 6,549.43 | 165.72 | 2.53% | - The "Relocation and Technical Upgrade Project for 22,000 tons/year High-Efficiency, Safe, and Environmentally Friendly Formulation Production Line" and "Relocation and Technical Upgrade Project for 50,000 tons/year Water-Soluble Fertilizer (Specialty Fertilizer) Production" were extended to December 2027 due to delays in obtaining construction land[67] - The remaining 65.49 million Yuan from the "Enterprise Technology Center Upgrade Project" was reallocated to the "15,000 tons/year Technical and Intermediate Synthesis Production Project," which was also extended to December 2027 for enhanced safety, environmental measures, and process optimization[67] - A 30 million Yuan wealth management product, "Hengchuan Chengjia 033509," could not be recovered due to Evergrande Group's debt crisis, with 26.75 million Yuan of principal outstanding as of June 30, 2025, for which a full impairment provision has been made[114] Significant Asset and Equity Disposals During the reporting period, the company did not engage in any significant asset or equity disposals - The company did not dispose of any significant assets during the reporting period[70] - The company did not dispose of any significant equity during the reporting period[71] Analysis of Major Holding and Associate Companies This section lists the company's major subsidiaries and their financial performance, all of which were profitable during the reporting period Major Subsidiary Financial Information (H1 2025) | Company Name | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Guoguang Nongzi Co., Ltd. | 70,000,000.00 | 499,830,866.15 | 175,547,654.38 | 756,655,851.57 | 152,301,072.06 | 130,354,143.68 | | Sichuan Run'er Technology Co., Ltd. | 411,668,000.00 | 1,053,778,199.85 | 938,330,929.86 | 363,055,692.50 | 60,860,900.07 | 55,607,687.76 | | Sichuan Guoguang Garden Technology Co., Ltd. | 67,438,000.00 | 323,760,503.92 | 281,421,677.44 | 148,635,621.20 | 46,331,875.01 | 39,841,140.52 | | Hebi Quanfeng Biotechnology Co., Ltd. | 95,000,000.00 | 372,962,947.08 | 257,616,460.18 | 205,937,586.33 | 29,632,560.93 | 25,914,368.70 | - The company did not acquire or dispose of any subsidiaries during the reporting period[72] Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company reported no control over structured entities during the reporting period[73] Risks and Countermeasures The company faces risks related to corporate governance, industry, market, environmental protection, safety, investment projects, and operations, addressed through enhanced management and innovation - The company's controlling shareholder and actual controller, Yan Changxu, and his relatives hold a concentrated stake, potentially exerting significant influence on operations and development strategies[74] - Changes in industry laws and regulations, intensified market competition, and fluctuations in major raw material prices may adversely affect the company's profitability[74][75] - The company faces environmental protection risks (exceeding pollutant discharge standards, stricter environmental standards) and production safety risks (improper handling of hazardous chemicals, equipment failures)[75][76] - Convertible bond investment projects carry risks of delayed implementation, sudden market changes, or intensified industry competition leading to underutilized production capacity[76] - Operational management risks include product quality control, renewal of production licenses and product registration certificates, and talent shortages[76][77] - Other risks include public misunderstanding of pesticide products due to improper use, new pesticide product development risks, and the impact of abnormal climate changes on operating performance[77][78] Implementation of Market Value Management System and Valuation Enhancement Plan During the reporting period, the company did not formulate a market value management system or disclose a valuation enhancement plan - The company did not formulate a market value management system during the reporting period[79] - The company did not disclose a valuation enhancement plan during the reporting period[79] Implementation of "Quality and Return Dual Improvement" Action Plan During the reporting period, the company did not disclose an announcement regarding its "Quality and Return Dual Improvement" action plan - The company did not disclose an announcement regarding its "Quality and Return Dual Improvement" action plan during the reporting period[79] Part IV Corporate Governance, Environment, and Society This section details changes in the company's governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management - The company's directors, supervisors, and senior management did not change during the reporting period[81] Profit Distribution and Capital Reserve Conversion in the Reporting Period The company plans to distribute a cash dividend of 4.00 Yuan (tax inclusive) per 10 shares, totaling 186.54 million Yuan, based on the future equity registration date's total share capital Profit Distribution Plan for Current Reporting Period | Indicator | Value | | :--- | :--- | | Bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (Yuan) (tax inclusive) | 4.00 | | Share capital base for distribution plan (shares) | 466,358,550 | | Cash dividend amount (Yuan) (tax inclusive) | 186,543,420.00 | | Proportion of total cash dividends (including other methods) to total profit distribution | 100% | | Distributable profit (Yuan) | 340,193,360.62 | - The company plans to distribute a cash dividend of 4.00 Yuan (tax inclusive) per 10 shares to all shareholders, based on the total share capital at the equity registration date when the distribution plan is implemented, with no bonus shares or capital reserve conversion[82] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures In H1 2025, the company completed the reserved grant registration for its 2024 restricted stock incentive plan, granting 472,800 shares, and repurchased 2,392,650 shares due to eligibility changes and unmet performance targets - On March 6, 2025, the company completed the reserved grant registration for its 2024 restricted stock incentive plan, granting 472,800 shares to 45 incentive recipients at a price of 4.89 Yuan/share[85] - On May 24, 2025, the company completed the repurchase and cancellation of 2,392,650 shares of restricted stock from the 2024 restricted stock incentive plan, due to incentive recipients no longer being eligible and the company's performance targets not being met[85] - The company had no employee stock ownership plans or other employee incentive measures during the reporting period[86] Environmental Information Disclosure The company and its key subsidiaries, Sichuan Run'er Technology Co., Ltd. and Hebi Quanfeng Biotechnology Co., Ltd., are listed as legally required environmental information disclosure enterprises - The company and its major subsidiaries, Sichuan Run'er Technology Co., Ltd. and Hebi Quanfeng Biotechnology Co., Ltd., are included in the list of enterprises required to disclose environmental information by law[86] - Both subsidiaries have publicly disclosed their environmental information reports on the National Pollutant Discharge Permit Information Disclosure Platform[86] Social Responsibility During the reporting period, the company did not disclose its social responsibility performance - The company did not disclose its social responsibility performance during the reporting period[87] Part V Significant Matters This section covers the company's commitments, related-party transactions, litigation, and other significant events during the reporting period Commitments Fulfilled and Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company The company fulfilled its equity incentive commitment not to provide financial assistance to incentive recipients, with no overdue unfulfilled commitments at the end of the reporting period - The company implemented the 2024 restricted stock incentive plan, committing not to provide loans or other financial assistance to incentive recipients for acquiring restricted stock[89] - This equity incentive commitment was fulfilled on March 6, 2025[89] - During the reporting period, the company had no overdue unfulfilled commitments[89] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties - The company reported no non-operating occupation of funds by the controlling shareholder or other related parties during the reporting period[90] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company reported no irregular external guarantees during the reporting period[91] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[92] Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" During the reporting period, the company did not receive a "non-standard audit report" from its accounting firm - The company reported no "non-standard audit report" issued by the accounting firm during the reporting period[93] Board of Directors' Explanation on "Non-Standard Audit Report" from Previous Year During the reporting period, the company did not provide an explanation regarding a "non-standard audit report" from the previous year - The company reported no explanation regarding a "non-standard audit report" from the previous year during the reporting period[93] Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy or reorganization matters - The company reported no bankruptcy or reorganization matters during the reporting period[94] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters, but was involved in several other cases with varying outcomes - The company had no significant litigation or arbitration matters during the current reporting period[95] - The company was involved in 13 litigation cases against Evergrande Garden Group and others, totaling 30.10 million Yuan, with 7 cases ongoing, 1 concluded, 5 in enforcement, and the company winning 6 cases[95] - The company was involved in 12 litigation cases, including one with Hunan Xiangniu Environmental Protection Industrial Co., Ltd., totaling 13.47 million Yuan, with 7 cases ongoing and 5 concluded; the company was liable for 1.12 million Yuan in one case and ordered to pay 4.93 million Yuan in construction fees in another second-instance judgment[95] Penalties and Rectification During the reporting period, the company did not incur any penalties or require rectification - The company reported no penalties or rectification situations during the reporting period[96] Integrity Status of the Company, Controlling Shareholder, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - The company reported no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period[97] Significant Related-Party Transactions During the reporting period, the company engaged in purchase and sales transactions with Sichuan Yibei Intelligent Equipment Co., Ltd., but no other significant related-party transactions Related-Party Transactions for Purchase/Sale of Goods/Services | Related Party | Related Transaction Content | Amount in Current Period (Yuan) | Approved Transaction Limit (10,000 Yuan) | Exceeded Transaction Limit | Amount in Prior Period (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Yibei Intelligent Equipment Co., Ltd. | Purchase of Goods | 3,842,037.00 | 3,000 | No | 1,693,919.00 | - During the reporting period, the company's sales of products/goods on behalf of related parties amounted to 3.84 million Yuan, reaching 12.81% of the estimated amount[98] - The company reported no related-party transactions involving asset or equity acquisition/disposal, joint external investments, or related-party creditor/debtor relationships during the reporting period[99][100][101] Significant Contracts and Their Performance The company had no trust or contracting arrangements, 60 lease contracts, and provided a 33 million Yuan guarantee to a subsidiary; a 30 million Yuan wealth management product is unrecovered - The company reported no trust or contracting arrangements during the reporting period[105][106] - During the reporting period, there were 60 lease contracts with total lease expenses of 5.70 million Yuan, which did not meet the disclosure threshold for significant contracts[107] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Guoguang Nongzi Co., Ltd. | 10,000 | 3,300 | Joint and Several Liability Guarantee | 3 years | No | | Sichuan Guoguang Garden Technology Co., Ltd. | 3,000 | 0 | Joint and Several Liability Guarantee | 3 years | No | | Sichuan Run'er Technology Co., Ltd. | 2,000 | 0 | Joint and Several Liability Guarantee | 3 years | No | | Sichuan Guoguang Nongzi Co., Ltd. | 7,000 | 0 | Joint and Several Liability Guarantee | 3 years | No | | Sichuan Guoguang Garden Technology Co., Ltd. | 3,000 | 0 | Joint and Several Liability Guarantee | 3 years | No | | Total Actual Guarantee Balance for Subsidiaries at Period-End | 25,000 | 3,300 | | | | Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Entrusted Wealth Management Amount (10,000 Yuan) | Unmatured Balance (10,000 Yuan) | Overdue Unrecovered Amount (10,000 Yuan) | Impairment Amount for Overdue Unrecovered Wealth Management (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | Own Funds | 0 | 0 | 2,675.21 | 2,675.21 | | Bank Wealth Management Products | Own Funds | 35,000 | 10,000 | 0 | 0 | | Total | | 35,000 | 10,000 | 2,675.21 | 2,675.21 | - A 30 million Yuan wealth management product, "Hengchuan Chengjia 033509," could not be recovered due to Evergrande Group's debt crisis, with 26.75 million Yuan of principal outstanding as of June 30, 2025, for which a full impairment provision has been made[114] Explanation of Other Significant Matters In H1 2025, the company implemented two equity distributions totaling 281.11 million Yuan in cash dividends and completed reserved grants and repurchases of restricted shares - In H1 2025, the company implemented profit distributions for Q1-Q3 2024 and the full year 2024, distributing a total of 281.11 million Yuan in cash dividends to all shareholders[116] - On March 6, 2025, the company completed the reserved grant registration for its 2024 restricted stock incentive plan, granting 472,800 shares to 45 incentive recipients[118] - Due to 11 incentive recipients no longer being eligible and the company's 2024 performance targets not being met, the company repurchased and canceled 2,392,650 shares of restricted stock from the 2024 restricted stock incentive plan that had been granted but not yet unblocked[118] Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters - The company reported no significant matters concerning its subsidiaries during the reporting period[119] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and shareholdings of directors and senior management Share Change Status During the reporting period, the company's total share capital decreased by 1,919,850 shares to 466,358,550 shares, primarily due to the net effect of restricted stock grants and repurchases Share Change Status | Share Type | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 45,600,903.00 | 9.74% | -32,893,385.00 | 12,707,518.00 | 2.72% | | II. Unrestricted Shares | 422,677,497.00 | 90.26% | 30,973,535.00 | 453,651,032.00 | 97.28% | | III. Total Shares | 468,278,400.00 | 100.00% | -1,919,850.00 | 466,358,550.00 | 100.00% | - Total shares decreased by 1,919,850 shares, mainly due to the net effect of reserved grants (increase of 472,800 shares) and repurchases (decrease of 2,392,650 shares) of restricted stock under the 2024 restricted stock incentive plan[123] - Restricted shares held by former CFO Zhuang Wanfu, former Chairman Yan Yaqi, and his ex-wife Hu Lixia have all been released from restrictions[124] - Share changes resulted in basic and diluted earnings per share of 0.50 Yuan for H1 2025, and net assets per ordinary share of 4.42 Yuan[126] Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing activities - The company reported no securities issuance or listing activities during the reporting period[129] Shareholder Numbers and Shareholding At the end of the reporting period, the company had 11,670 ordinary shareholders, with Yan Changxu as the largest shareholder, and significant family and institutional holdings - At the end of the reporting period, the total number of ordinary shareholders was 11,670[131] Top 10 Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Yan Changxu | Domestic Natural Person | 34.54% | 161,102,605 | 0 | 161,102,605 | | Yan Yaqi | Domestic Natural Person | 4.38% | 20,449,170 | 0 | 20,449,170 | | Hu Lixia | Domestic Natural Person | 3.47% | 16,194,423 | 0 | 16,194,423 | | Industrial Bank Co., Ltd. - Fullgoal Xingyuan Optimal 12-Month Holding Mixed Securities Investment Fund | Other | 3.20% | 14,903,366 | 0 | 14,903,366 | | Yan Changli | Domestic Natural Person | 3.00% | 13,995,565 | 0 | 13,995,565 | | Yan Qiushi | Domestic Natural Person | 3.00% | 13,995,565 | 0 | 13,995,565 | | Yan Changcheng | Domestic Natural Person | 2.98% | 13,877,590 | 0 | 13,877,590 | | Industrial and Commercial Bank of China Co., Ltd. - Fullgoal Culture, Sports, and Health Stock Investment Fund | Other | 2.03% | 9,476,720 | 0 | 9,476,720 | | China Construction Bank Co., Ltd. - Fullgoal New Power Flexible Allocation Mixed Securities Investment Fund | Other | 1.71% | 7,953,838 | 0 | 7,953,838 | | Yan Ling | Domestic Natural Person | 1.52% | 7,072,085 | 10,080 | 7,062,005 | - Yan Yaqi is Yan Changxu's son, Hu Lixia is Yan Yaqi's ex-wife, Yan Qiushi, Yan Changcheng, and Yan Changli are Yan Changxu's brothers, and Yan Ling is Yan Changcheng's child, indicating concentrated family shareholding[131][132] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, several directors and senior management saw their shareholdings decrease due to the repurchase of equity incentive shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Reduced in Current Period (shares) | Shares Held at End of Period (shares) | Restricted Shares Granted at Period-End (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | He Jie | Chairman, President | 482,675 | 48,330 | 434,345 | 112,770 | | He Peng | Director, Vice President | 455,248 | 49,770 | 405,478 | 116,130 | | Zou Tao | Director, Vice President | 132,000 | 39,600 | 92,400 | 92,400 | | Chen Xi | Director | 1,897,987 | 25,740 | 1,872,247 | 60,060 | | Wu Pandao | Vice President | 340,069 | 28,740 | 311,329 | 67,060 | | Yan Ming | Board Secretary | 7,006,345 | 29,040 | 6,977,305 | 67,760 | | Yang Lei | CFO | 124,700 | 25,350 | 99,350 | 59,150 | | Total | | 10,439,024 | 246,570 | 10,192,454 | 575,330 | - The number of shares reduced in the current period represents the number of equity incentive shares repurchased during the reporting period[133] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[134] - The company's actual controller did not change during the reporting period[134] Preferred Share Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[135] Part VII Bond-Related Information During the reporting period, the company had no bond-related information - The company reported no bond-related information during the reporting period[137] Part VIII Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[139] Financial Statements This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 2.62 billion Yuan, a 3.78% decrease from the beginning of the period Consolidated Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 2,617,825,602.24 | 2,720,733,319.08 | | Total Current Assets | 1,825,199,482.26 | 1,923,903,021.65 | | Total Non-Current Assets | 792,626,119.98 | 796,830,297.43 | | Total Liabilities | 357,886,591.60 | 422,063,111.97 | | Total Owners' Equity | 2,259,939,010.64 | 2,298,670,207.11 | | Total Owners' Equity Attributable to Parent Company | 2,060,677,347.77 | 2,102,769,041.62 | 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 1.49 billion Yuan, a 3.33% decrease from the beginning of the period Parent Company Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,493,054,911.54 | 1,544,400,277.24 | | Total Current Assets | 525,900,766.49 | 582,439,127.85 | | Total Non-Current Assets | 967,154,145.05 | 961,961,149.39 | | Total Liabilities | 43,735,809.10 | 58,571,672.76 | | Total Owners' Equity | 1,449,319,102.44 | 1,485,828,604.48 | 3. Consolidated Income Statement In H1 2025, consolidated operating revenue grew by 7.33% to 1.12 billion Yuan, with net profit attributable to parent company shareholders increasing by 6.05% to 230.53 million Yuan Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,118,836,327.91 | 1,042,425,459.80 | | Total Operating Costs | 831,279,299.62 | 774,600,088.45 | | Operating Profit | 284,516,407.04 | 269,818,286.87 | | Total Profit | 284,118,044.12 | 270,427,198.76 | | Net Profit | 246,195,453.65 | 231,055,509.34 | | Net Profit Attributable to Parent Company Shareholders | 230,530,454.99 | 217,372,888.31 | | Basic Earnings Per Share (Yuan/share) | 0.50 | 0.50 | | Diluted Earnings Per Share (Yuan/share) | 0.50 | 0.48 | 4. Parent Company Income Statement In H1 2025, the parent company's operating revenue was 14.88 million Yuan, with net profit reaching 236.42 million Yuan, driven by a significant increase in investment income Parent Company Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 14,879,358.19 | 14,455,519.27 | | Operating Profit | 237,412,941.31 | 116,025,644.53 | | Total Profit | 236,642,880.70 | 116,084,347.73 | | Net Profit | 236,424,470.41 | 116,389,191.96 | | Investment Income | 238,959,569.89 | 128,185,393.74 | | Basic Earnings Per Share (Yuan/share) | 0.51 | 0.27 | | Diluted Earnings Per Share (Yuan/share) | 0.51 | 0.27 | 5. Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities decreased by 7.91% to 189.44 million Yuan, while net cash flow from investing activities significantly declined by 978.37% Consolidated Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 189,441,964.28 | 205,723,026.86 | | Net Cash Flow from Investing Activities | -57,394,277.02 | 6,534,195.90 | | Net Cash Flow from Financing Activities | -306,564,462.17 | -207,785,915.63 | | Net Increase in Cash and Cash Equivalents | -174,612,138.51 | 4,524,255.46 | | Cash and Cash Equivalents at Period-End | 772,975,849.64 | 1,144,401,901.72 | 6. Parent Company Cash Flow Statement In H1 2025, the parent company's net cash flow from operating activities was -11.49 million Yuan, with net cash flow from investing activities at 171.22 million Yuan and financing activities at -290.09 million Yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -11,492,620.50 | 21,939,048.14 | | Net Cash Flow from Investing Activities | 171,223,170.43 | 108,502,406.78 | | Net Cash Flow from Financing Activities | -290,085,784.83 | -198,455,922.67 | | Net Increase in Cash and Cash Equivalents | -130,355,234.90 | -68,014,467.75 | | Cash and Cash Equivalents at Period-End | 103,458,199.96 | 255,477,406.48 | 7. Consolidated Statement of Changes in Owners' Equity In H1 2025, consolidated owners' equity decreased by 38.73 million Yuan to 2.26 billion Yuan, reflecting changes in share capital, capital reserves, and retained earnings due to equity incentives Consolidated Owners' Equity Changes | Item | Period-Beginning Balance (Yuan) | Amount of Change in Current Period (Yuan) | Period-End Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 468,278,400.00 | -1,919,850.00 | 466,358,550.00 | | Capital Reserve | 486,677,948.24 | -4,064,133.10 | 482,613,815.14 | | Less: Treasury Stock | 40,917,699.25 | -12,421,696.70 | 28,496,002.55 | | Surplus Reserve | 184,666,462.13 | 23,642,447.04 | 208,308,909.17 | | Retained Earnings | 1,001,169,089.79 | -72,802,809.75 | 928,366,280.04 | | Total Owners' Equity Attributable to Parent Company | 2,102,769,041.62 | -42,091,693.85 | 2,060,677,347.77 | | Minority Interests | 195,901,165.49 | 3,360,497.38 | 199,261,662.87 | | Total Owners' Equity | 2,298,670,207.11 | -38,731,196.47 | 2,259,939,010.64 | 8. Parent Company Statement of Changes in Owners' Equity In H1 2025, parent company owners' equity decreased by 36.51 million Yuan to 1.45 billion Yuan, with reductions in share capital, capital reserves, and retained earnings Parent Company Owners' Equity Changes | Item | Period-Beginning Balance (Yuan) | Amount of Change in Current Period (Yuan) | Period-End Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 468,278,400.00 | -1,919,850.00 | 466,358,550.00 | | Capital Reserve | 466,899,286.65 | -3,745,001.45 | 463,154,285.20 | | Less: Treasury Stock | 40,917,699.25 | -12,421,696.70 | 28,496,002.55 | | Surplus Reserve | 184,666,462.13 | 23,642,447.04 | 208,308,909.17 | | Retained Earnings | 407,102,154.95 | -66,908,794.33 | 340,193,360.62 | | Total Owners' Equity | 1,485,828,604.48 | -36,509,502.04 | 1,449,319,102.44 | Company Overview The company, registered in Jianyang City, Sichuan Province, specializes in R&D, production, and sales of plant growth regulator-based pesticide formulations and water-soluble fertilizers, with a total issued share capital of 466,358,550 shares - Company registered address: Pingquan Street, Jianyang City, Sichuan Province; Legal Representative: He Jie; Business Term: December 30, 1985, to long-term[174] - The company primarily engages in the research, development, production, and sales of plant growth regulator-based pesticide formulations and water-soluble fertilizers[183] - As of June 30, 2025, the company's total issued share capital was 466,358,550.00 shares[183] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to Chinese Accounting Standards, with no significant doubts about its ability to continue operating for the next 12 months - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" and relevant regulations issued by the Ministry of Finance[184] - The company believes there are no matters or circumstances that would cast significant doubt on its ability to continue as a going concern for the next 12 months[185] Significant Accounting Policies and Estimates This section details the company's accounting policies for financial instruments, receivables, inventory, fixed assets, revenue recognition, and government grants, along with materiality standards and policy changes - The company adheres to enterprise accounting standards, accurately and completely reflecting its financial position and operating results[187] - The company defines materiality thresholds as individual accounts receivable/other receivables exceeding 1 million Yuan, individual write-offs exceeding 1 million Yuan, construction in progress with current period transactions over 10 million Yuan, and non-wholly owned subsidiaries with total assets exceeding 10% of consolidated total assets[191][192] - The company classifies financial assets into three categories: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, assessing expected credit losses based on credit risk[199][201] - The company's inventory includes raw materials, packaging materials, low-value consumables, semi-finished goods, work-in-progress, and finished goods, valued at actual cost, issued using the weighted-average method, and measured at the lower of cost or net realizable value at period-end[208] - The company recognizes revenue when customers obtain control of related goods or services, at the transaction price allocated to that performance obligation, specifically for cash sales and credit sales[237] - Effective January 1, 2025, the company implemented the Ministry of Finance and National Financial Regulatory Administration's document Cai Kuai [2025] No. 12, with no impact on its financial statements[252] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, benefiting from various tax incentives for agricultural products, western development, high-tech enterprises, and small-profit enterprises Major Tax Categories and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | VAT taxable income | Exempt, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7%, 5% | | Corporate Income Tax | Taxable income | 15%, 25%, 5% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | - The company's sales of pesticides and organic fertilizers are exempt from VAT in accordance with regulations[257] - Guoguang Nongzi, Run'er Technology, Guoguang Garden, Yi'er Shuangfeng, and Yi'er Quanfeng enjoy Western Development tax incentives, with a corporate income tax rate of 15%[257] - Hebi Quanfeng and Haozhida are high-tech enterprises, subject to a corporate income tax rate of 15%[257] - Training schools, Yunling Agriculture, Hill Crop, Jiazhi Ecology, Anyang Xin Quanfeng, Ge'er Quanfeng, and other small-profit enterprises enjoy a corporate income tax rate of 5%[258] - The company benefits from the "six taxes and two fees" reduction policy for small and micro enterprises[258] Notes to Consolidated Financial Statements This section provides detailed notes on consolidated financial statement items, highlighting changes in monetary funds, financial assets, receivables, inventory, construction in progress, and equity - Monetary funds at period-end were 1.19 billion Yuan, a 16.46% decrease from the beginning of the period, with 413.68 million Yuan restricted from use[261][356] - Trading financial assets at period-end were 100 million Yuan, entirely consisting of structured deposits[262] - Accounts receivable at period-end were 51.58 million Yuan, a 63.73% increase from the beginning of the period, with a bad debt provision of 42.02 million Yuan[273] - Inventory book value at period-end was 363.04 million Yuan, a slight increase from the beginning of the period, with inventory impairment and contract performance cost impairment totaling 10.23 million Yuan, an increase of 4.02 million Yuan in the current period[311][313] - Construction in progress book value at period-end was 97.35 million Yuan, a 19.95% increase from the beginning of the period, primarily for Run'er Technology's relocation and technical upgrade project and Hebi Quanfeng's plant growth regulator project[330] - Share capital at period-end was 466.36 million Yuan, a decrease of 1,919,850 shares from the beginning of the period, mainly due to the net effect of equity incentive reserved grants and partial restricted stock repurchases[385] - Operating revenue for the current period was 1.12 billion Yuan, and operating cost was 588.32 million Yuan, representing year-on-year increases of 7.33% and 5.19%, respectively[396] - R&D expenses for the current period were 44.17 million Yuan, a 42.84% year-on-year increase, primarily due to increased experimental expenses[403] - Net cash flow from investing activities was -57.39 million Yuan, mainly due to a year-on-year increase in net expenditure on structured deposits and other wealth management products[427] Research and Development Expenses In H1 2025, the company's total R&D expenditure was 44.17 million Yuan, entirely expensed, representing a 42.84% year-on-year increase, primarily driven by higher experimental costs R&D Expenditure Composition | Item | Amount in Current Period (Yuan) | Amount in Prior Period (Yuan) | | :--- | :--- | :--- | | Depreciation of Fixed Assets | 1,247,670.48 | 1,193,120.38 | | Employee Compensation | 15,859,376.25 | 15,