高争民爆(002827) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management guarantee the report's accuracy, while advising investors of risks and planning no dividend distribution - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents This section lists the report's nine main chapters and their starting page numbers, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial report, and other submitted data Definitions This section provides definitions for common terms used in the report, covering key concepts such as company name, controlling shareholder, regulatory bodies, laws and regulations, and the reporting period, ensuring clear understanding of the report's content - The reporting period refers to January 1, 2025, to June 30, 2025[13] - The controlling shareholder is Tibet Construction Engineering and Building Materials Group Co., Ltd[13] Part II Company Profile and Key Financial Indicators 1. Company Profile Tibet Gaozheng Civil Explosives Co., Ltd., stock abbreviation Gaozheng Civil Explosives, stock code 002827, is listed on the Shenzhen Stock Exchange, with Le Yongjian as its legal representative - Company stock abbreviation: Gaozheng Civil Explosives, stock code: 002827[15] - Company legal representative: Le Yongjian[15] 2. Contact Persons and Information This section provides detailed contact information for the company's Board Secretary Ma Yingying and Securities Affairs Representative Li Guobing, including names, addresses, phone numbers, faxes, and email addresses - Board Secretary: Ma Yingying, Securities Affairs Representative: Li Guobing[16] 3. Other Information The company's registered address, office address, postal code, website, email, information disclosure, and document storage locations remained unchanged during the reporting period, with specific details available in the 2024 annual report - The company's contact information, information disclosure, and document storage locations remained unchanged during the reporting period[17][18] 4. Key Accounting Data and Financial Indicators The company achieved growth in operating revenue and net profit in the first half of 2025, with a significant improvement in net cash flow from operating activities, and steady growth in total assets and net assets attributable to shareholders of the listed company 2025 H1 Key Accounting Data and Financial Indicators | Indicator | Current Period (yuan) | Same Period Last Year (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 771,467,303.87 | 724,050,776.95 | 6.55 | | Net Profit Attributable to Shareholders of the Listed Company | 69,200,000.04 | 55,051,435.23 | 25.70 | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | 61,880,581.54 | 44,801,857.00 | 38.12 | | Net Cash Flow from Operating Activities | 146,690,253.68 | -42,944,537.27 | 441.58 | | Basic Earnings Per Share (yuan/share) | 0.2507 | 0.1995 | 25.66 | | Diluted Earnings Per Share (yuan/share) | 0.2507 | 0.1995 | 25.66 | | Weighted Average Return on Net Assets | 7.35 | 6.54 | 0.81 | | End of Period Indicators | End of Current Period (yuan) | End of Last Year (yuan) | Change from End of Last Year to End of Current Period (%) | | Total Assets | 2,750,991,810.52 | 2,571,233,117.17 | 6.99 | | Net Assets Attributable to Shareholders of the Listed Company | 955,118,077.23 | 925,966,017.64 | 3.15 | - Net cash flow from operating activities significantly increased by 441.58%, primarily due to increased sales of goods and maturity and acceptance of notes receivable[20] 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards during the reporting period - 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[21] - 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[22] 6. Non-Recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the reporting period amounted to 7.3194 million yuan, primarily from disposal gains/losses of non-current assets, government grants, and income from structured deposits and wealth management products 2025 H1 Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | Description | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | 1,791,248.10 | Primarily from disposal and scrapping of non-current assets | | Government grants recognized in current profit or loss | 8,502,522.38 | Primarily government grants recognized in current profit or loss | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 249,402.74 | Income from structured deposits and wealth management products | | Other non-operating income and expenses apart from the above | -1,566,917.79 | Primarily external donations | | Less: Income tax impact | 864,763.19 | | | Minority interests impact (after tax) | 792,073.74 | | | Total | 7,319,418.50 | | Part III Management Discussion and Analysis 1. Principal Businesses Engaged in During the Reporting Period The company is a comprehensive service enterprise in the Tibet Autonomous Region, integrating R&D, production, sales, transportation, and services, primarily engaged in civil explosive materials production and sales, blasting services, transportation services, and electronic detonator chip modules, forming a diversified business model (1) Production and Sales of Civil Explosives The company is a comprehensive service enterprise in the Tibet Autonomous Region, integrating R&D, production, sales, transportation, and services, with main products including industrial explosives, electronic detonators, and industrial detonating cords, widely used in mining, water conservancy, hydropower, and transportation construction - The company is a comprehensive service enterprise in the Tibet Autonomous Region, integrating R&D, production, sales, transportation, and services[27] - Main products include industrial explosives, electronic detonators, industrial detonating cords, industrial detonating fuses, and electronic detonator chip modules, widely used in mining, water conservancy, hydropower, transportation construction, urban renovation, geological exploration, blasting services, and national defense construction[27] (2) Blasting Services Integrated blasting services are one of the company's core businesses and main revenue sources, providing open-pit and underground mining services based on its Grade I general contracting qualification for mining engineering and Grade I commercial blasting operation license - The integrated blasting service model has become one of the company's core businesses and main revenue sources[28] - The company holds core qualifications such as Grade I general contracting for mining engineering and Grade I commercial blasting operation license[28] (3) Transportation Services Gaozheng Transportation, as the company's professional logistics platform, has developed into a comprehensive logistics service enterprise integrating road dangerous goods transportation, general cargo transportation, warehousing, motor vehicle maintenance, armed escort, security services, and labor dispatch, with business covering the entire Tibet region and surrounding provinces - Gaozheng Transportation is the company's professional logistics platform, providing comprehensive logistics services including road dangerous goods transportation, general cargo warehousing, armed escort, security services, and labor dispatch[29] - Business scope covers the entire Tibet region, Xinjiang, Sichuan, Gansu, and Qinghai[29] (4) Electronic Detonator Chip Modules Gaozheng Yiyi is a Shanghai high-tech enterprise specializing in the R&D, design, production, and sales of electronic detonator control modules, and has independently developed a digital electronic detonator data management cloud platform, providing 24-hour technical support - Gaozheng Yiyi is a Shanghai high-tech enterprise, holding over 60 related patents and software copyrights[30] - The company specializes in the integrated R&D, design, production, and sales of electronic detonator control modules, and has independently developed a digital electronic detonator data management cloud platform[30] (5) Company's Main Business Model The company has established sales branches in seven prefectures/cities in Tibet to provide integrated civil explosive services, employing diversified procurement methods, production based on sales, direct sales to end-customers with active expansion into export markets, and transitioning its service model towards an integrated "R&D-production-sales-transportation-blasting service" approach - The company has established sales branches in seven prefectures/cities in the Tibet Autonomous Region to provide integrated civil explosive services[31] - Procurement methods include strategic procurement, framework agreement procurement, and public bidding, utilizing a centralized procurement platform to improve efficiency[32][33] - The production model adopts production based on sales, combining annual sales plans to formulate production plans, and continuously promoting industry-university-research cooperation[33] - The sales model involves direct supply to end-customers and actively exploring export business for civil explosive products[34] - The service model actively promotes a transformation from a traditional product supplier to an integrated "R&D-production-sales-transportation-blasting service" model[35] 2. Industry Analysis In the first half of 2025, the civil explosives industry remained stable but faced intensified competition, with a year-on-year decrease in total output and sales value, while blasting service revenue grew; upstream raw material prices fluctuated, and downstream demand was driven by infrastructure investment, with the company maintaining a dominant position in the regional market and actively responding to policy guidance under strict industry regulation (1) Macroeconomic Conditions In the first half of 2025, the civil explosives industry operated steadily, with explosive production largely flat, but intensified market competition led to a year-on-year decrease in total output and sales value; production enterprises saw an 18.29% increase in blasting service revenue, while sales enterprises saw a 9.01% increase - In the first half of 2025, the civil explosives industry operated steadily and controllably, with explosive production largely flat compared to the same period last year[36] - Due to intensified market competition, total output and sales value showed a downward trend year-on-year[36] 2025 H1 Civil Explosives Industry Key Financial Data Year-on-Year Change | Indicator | Year-on-Year Change for Production Enterprises (%) | Year-on-Year Change for Sales Enterprises (%) | | :--- | :--- | :--- | | Total Output Value | -2.71 | - | | Total Sales Value | -1.56 | -13.81 | | Main Business Revenue | -1.49 | -16.84 | | Total Tax and Profit | -3.03 | -21.34 | | Total Profit | -4.07 | -32.05 | | Blasting Service Revenue | 18.29 | 9.01 | - Cumulative production and sales of industrial explosives by production enterprises increased by 0.20% and 0.23% year-on-year, respectively[36] - Industrial explosive inventory at period-end decreased by 38.22% year-on-year, and industrial detonator inventory decreased by 29.41% year-on-year[36] (2) Industry Upstream and Downstream Conditions Upstream raw material ammonium nitrate prices decreased year-on-year, but transportation costs are high in Tibet; downstream demand is widely used in mining, metallurgy, transportation, and water conservancy, closely related to fixed asset investment in the secondary industry, with the national "14th Five-Year Plan" bringing benefits Ammonium Nitrate Prices Year-on-Year Change as of June 2025 | Product | Price (yuan/ton) | Year-on-Year Decrease (%) | Month-on-Month Change (%) | | :--- | :--- | :--- | :--- | | Powdered Ammonium Nitrate | 2264 | 12.91 | -1.09 | | Porous Granular Ammonium Nitrate | 2396 | 9.81 | 1.57 | | Liquid Ammonium Nitrate | 2109 | 13.90 | -0.80 | - Due to its special geographical location, Tibet has long transportation distances, making ammonium nitrate transportation costs significantly higher than other regions nationwide[38] - Downstream civil explosive products are widely used in mining, metallurgy, transportation, water conservancy, power, construction, and petroleum sectors, with demand closely related to the scale of fixed asset investment in China's secondary industry[38] (3) Company's Industry Position The company has developed into a state-controlled listed company in the Tibet Autonomous Region with "full industry chain integration" and dual Grade I qualifications, occupying a dominant position in the regional market and gradually expanding its influence in the national civil explosives industry through its unique geographical advantages and industrial layout - The company has developed into a state-controlled listed company in the Tibet Autonomous Region, simultaneously possessing "full industry chain integration" with dual Grade I qualifications for R&D, production, sales, warehousing, transportation of civil explosives, and general contracting for mining and blasting operation services[39] - The company maintains a dominant position in the regional market due to its unique geographical advantages and industrial layout[39] - The company owns 27 branches/subsidiaries, 1 academician workstation, and 2 research centers, with business covering civil explosive product R&D, production, sales, mining development, and blasting engineering services[39] (4) Macro Policy Analysis Macro policies focus on the transformation and upgrading of the civil explosives industry, including promoting unmanned production lines, enhancing industrial concentration, optimizing product structure, deepening integrated development models, promoting green development, and expanding openness; the company will actively seize policy opportunities to focus on intelligent manufacturing, industrial layout, and technological innovation - The Ministry of Industry and Information Technology's "14th Five-Year Plan for the Safe Development of the Civil Explosives Industry" proposes that by the end of 2027, unmanned production lines for civil explosive products will be widely promoted, forming 3-5 large civil explosive enterprises (groups) with international competitiveness[40] - Key policy tasks include adhering to innovation-driven development, accelerating digital technology empowerment, continuously deepening supply-side structural reform, promoting green development, and expanding openness[40] - The company will actively seize policy opportunities, accelerate the promotion of intelligent manufacturing and industrial internet applications, optimize industrial layout, and deepen industry-university-research cooperation[40] (5) Industry-Related Laws and Regulations The civil explosives industry is strictly regulated by the Ministry of Industry and Information Technology and the Ministry of Public Security, covering full-cycle safety management for production, sales, purchase, transportation, and blasting operations; relevant laws and regulations are continuously updated, such as the "Qualification Conditions and Management Requirements for Blasting Operation Units" issued in 2025, strengthening dynamic supervision and optimizing approval processes - The Ministry of Industry and Information Technology and the Ministry of Public Security manage the full-cycle safety supervision of civil explosive materials production, sales, purchase, transportation, and blasting operations in China[41] - The civil explosives industry must comply with a series of laws, regulations, and standards, including the "Production Safety Law of the People's Republic of China" and the "Regulations on the Safety Management of Civil Explosive Materials"[42] - The latest "Qualification Conditions and Management Requirements for Blasting Operation Units" and "Blasting Operation Project Management Requirements" issued in 2025 refine the qualification grading for blasting operation units and strengthen dynamic supervision[42] 3. Analysis of Core Competencies The company has built unique competitive advantages through excellent corporate governance, comprehensive industrial layout, strict safety management, leading blasting service capabilities, and continuous technological innovation, solidifying its leading position in the industry (1) Corporate Governance Advantage The company has established a modern enterprise governance system with Chinese characteristics, earning the "State-Owned Enterprise Corporate Governance Demonstration Enterprise" title from the State-owned Assets Supervision and Administration Commission of the State Council, providing institutional guarantees for high-quality development through deepened state-owned enterprise reform initiatives - The company was awarded the title of "State-Owned Enterprise Corporate Governance Demonstration Enterprise" by the State-owned Assets Supervision and Administration Commission of the State Council[43] - Through deepened state-owned enterprise reform initiatives, the company has improved the operation mechanism of the "three meetings and one layer" and strengthened Party building leadership and board of directors' authority construction[43] (2) Industrial Layout Advantage As the leading enterprise in Tibet's civil explosives industry, the company continuously improves its marketing network through increased investment, establishing a network covering all seven prefectures/cities in the region, maintaining a long-term leading position in business coverage and market share, and receiving key support from various levels of authorities - The company has established a marketing network system covering all seven prefectures/cities in the region, with professional sales outlets, warehousing facilities, and transportation teams[44] - Business coverage and market share have long maintained a leading position in the region, receiving key support from various levels of authorities[44] (3) Safety Management Advantage The company consistently prioritizes safety production, pioneering a "dual chief supervisor +驻制" management model to achieve full coverage of safety supervision, and maintaining a record of zero safety accidents for many years through professional training and system improvement - The company consistently prioritizes safety production, insisting on making safety production meetings the No. 1 meeting each year[45] - It pioneered a "dual chief supervisor +驻制" management model to achieve full coverage of safety supervision, maintaining a record of zero safety accidents for many years[45] (4) Blasting Service Advantage The company's controlling subsidiaries, Chengyuan Mining and Tibet Gaozheng Blasting Engineering Co., Ltd., hold "dual Grade I" and Grade II qualifications respectively, significantly enhancing the company's competitive capabilities in blasting services and building a full industry chain comprehensive service capability - Controlling subsidiary Chengyuan Mining Development Co., Ltd. holds "dual Grade I" qualifications (Grade I blasting operation unit license, Grade I general contracting for mining engineering)[46] - Controlling subsidiary Tibet Gaozheng Blasting Engineering Co., Ltd. holds Grade II commercial blasting operation qualification and Grade II general contracting for mining engineering qualification[46] (5) Technological Innovation Advantage The company has built a collaborative innovation system integrating "production, education, research, and application," achieving breakthroughs in new civil explosive products for high-altitude regions, production technology, and engineering blasting technology, supported by its academician workstation and research centers, and has obtained multiple national and autonomous region-level certifications - The company has built a collaborative innovation system integrating "production, education, research, and application," relying on its academician workstation and two research centers to focus on research and development in new civil explosive products for high-altitude regions, production technology, and engineering blasting technology[47] - The "Ammonium Nitrate Explosive Development" project, jointly completed by the company, Anhui University of Science and Technology, and Fujian Haixia Kehua, was evaluated as "domestically and internationally pioneering, with technology reaching international advanced levels"[47] - The company has successively been recognized with multiple national certifications such as "Science and Technology Reform Demonstration Enterprise," "High-tech Enterprise," and "Green Factory"[47] 4. Analysis of Principal Business The company's principal business achieved steady growth during the reporting period, with significant increases in operating revenue and net profit attributable to the parent company, though blasting service revenue decreased; civil explosives and blasting services are the main revenue sources, with Tibet contributing most of the revenue; the company's mixed industrial explosive capacity utilization reached 100%; in terms of safety management, the company continuously strengthened system construction, training, hazard investigation, and emergency response Overview This section provides an overview of the company's principal businesses during the reporting period, with specific details available in the "1. Principal Businesses Engaged in During the Reporting Period" section Year-on-Year Changes in Key Financial Data The company's operating revenue and net profit attributable to shareholders of the listed company both increased in the first half of 2025, with net cash flow from operating activities significantly rising, primarily due to increased sales of goods and maturity and acceptance of notes receivable 2025 H1 Key Financial Data Year-on-Year Change | Indicator | Current Period (yuan) | Same Period Last Year (yuan) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 771,467,303.87 | 724,050,776.95 | 6.55 | | | Operating Cost | 553,683,367.48 | 537,648,366.27 | 2.98 | | | Administrative Expenses | 95,607,434.81 | 76,811,197.85 | 24.47 | | | Income Tax Expense | 10,370,414.61 | 5,034,197.50 | 106.00 | Increase in profit led to increased income tax expense | | Net Cash Flow from Operating Activities | 146,690,253.68 | -42,944,537.27 | 441.58 | Primarily due to increased sales of goods and maturity and acceptance of notes receivable | | Net Cash Flow from Financing Activities | 36,855,342.85 | 1,255,811.79 | 2834.78 | Primarily due to increased cash received in the current year | | Net Increase in Cash and Cash Equivalents | 147,817,181.69 | -79,324,673.63 | 286.34 | Primarily due to increased bank deposits from increased collection of goods payments | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[49] Composition of Operating Revenue The company's operating revenue primarily comes from civil explosives and blasting services, with significant growth in civil explosives and electronic detonator module revenue, while blasting services and transportation services revenue decreased; Tibet remains the company's most significant revenue source 2025 H1 Operating Revenue Composition | Category | Item | Current Period Amount (yuan) | Proportion of Operating Revenue (%) | Same Period Last Year Amount (yuan) | Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Civil Explosives | 332,278,316.99 | 43.06 | 272,125,325.88 | 37.58 | 22.10 | | | Electronic Detonator Modules | 45,455,005.30 | 5.89 | 27,313,480.66 | 3.77 | 66.42 | | | Transportation Services | 9,161,011.26 | 1.19 | 12,997,623.53 | 1.80 | -29.52 | | | Blasting Services | 377,762,022.41 | 48.97 | 408,722,419.79 | 56.45 | -7.57 | | | Oxygen Generation Equipment | 3,747,337.92 | 0.49 | 335,692.70 | 0.05 | 1,016.30 | | By Region | Tibet | 633,813,412.31 | 82.15 | 615,123,128.47 | 84.96 | 3.04 | Industries, Products, or Regions Accounting for Over 10% of Company's Operating Revenue or Operating Profit Civil explosives and blasting services are the main contributors to the company's operating revenue and profit, with civil explosives showing a higher and improved gross profit margin, while blasting services maintain a stable gross profit margin; industrial explosives and industrial pipe products performed well, and Tibet Autonomous Region is the core market 2025 H1 Operating Revenue, Cost, and Gross Profit Margin by Major Industry, Product, and Region | Category | Item | 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 | Civil Explosives | 332,278,316.99 | 194,954,256.22 | 41.33 | 22.10 | 19.72 | 1.17 | | | Blasting Services | 377,762,022.41 | 314,337,150.28 | 16.79 | -7.57 | -7.56 | -0.01 | | By Product | Industrial Explosives | 171,281,068.79 | 103,359,315.55 | 39.66 | 24.07 | 25.09 | -0.49 | | | Industrial Pipe Products | 140,954,690.34 | 76,219,341.60 | 45.93 | 19.49 | 18.46 | 0.47 | | | Blasting Services | 377,762,022.41 | 314,337,150.28 | 16.79 | -7.57 | -7.56 | -0.01 | | By Region | Tibet Autonomous Region | 633,813,412.31 | 428,811,140.12 | 32.34 | 3.04 | -0.04 | 2.08 | Licensed Capacity of Various Civil Explosive Products During the reporting period, the company's licensed capacity for gelatinous emulsion explosives was 10,000 tons, with a capacity utilization rate of 66.58%; for mixed industrial explosives, the licensed capacity was 12,000 tons, with a capacity utilization rate of 100%; currently, the company has no capacity under construction 2025 H1 Civil Explosive Product Licensed Capacity | Product Category | Licensed Capacity | Capacity Utilization Rate | Capacity Under Construction | | :--- | :--- | :--- | :--- | | Gelatinous Emulsion Explosives | 10,000 tons | 66.58% | None | | Mixed Industrial Explosives | 12,000 tons | 100% | None | Construction and Operation of Internal Control Systems Related to Safety Management During the Reporting Period In the first half of 2025, the company strictly implemented its safety production responsibility system, strengthening institutional framework construction, safety education and training, hazard investigation and rectification, emergency response capabilities, and standardized management; concurrently, it invested 1.9993 million yuan in safety funds and strictly enforced safety reward and punishment systems to ensure safe production - The company strictly implemented the requirements of "Party and government share responsibility, dual responsibilities for one position, joint management, and accountability for dereliction of duty" and "three musts" to carry out safety production management work[56] - It pioneered a "dual chief supervisor +驻制" management model and revised and improved 1 compilation of safety production management systems[57] - Throughout the year, 4 safety production education and training sessions were organized for 156 participants, and 1 training session for safety management personnel certification was organized (76 people passed)[57] - Throughout the year, 21 safety production hazard investigations were conducted, with 51 hazards or problems rectified, achieving a 100% rectification rate[58] - As of June 2025, a total of 1.999256 million yuan was invested in safety funds, primarily for safety testing, hazard rectification, emergency drills, and safety informatization construction[60] 5. Analysis of Non-Principal Business The company's non-principal businesses had some impact on total profit during the reporting period, mainly including investment income, government grants, and asset disposal gains, but most are not sustainable; credit impairment losses were negative, negatively impacting total profit 2025 H1 Impact of Non-Principal Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,349,402.74 | 1.75 | Equity method accounting for long-term equity investments and wealth management income | No | | Asset Impairment | 241,945.91 | 0.31 | Provision for bad debts on contract assets | No | | Non-Operating Income | 43,314.34 | 0.06 | Received goods compensation, superior unit awards/subsidies | No | | Non-Operating Expenses | 1,716,655.23 | 2.23 | External donation expenses | No | | Other Income | 6,649,418.21 | 8.64 | Government grants recognized in current profit or loss | No | | Credit Impairment Losses | -781,119.34 | -1.01 | Provision for bad debts on accounts receivable, notes receivable, other receivables | Yes | | Asset Disposal Gains | 1,897,671.20 | 2.47 | Disposal and scrapping of non-current assets | No | 6. Analysis of Assets and Liabilities The company's asset structure remained stable at the end of the reporting period, with increases in cash and cash equivalents and total assets, but a decrease in the proportion of long-term borrowings; the company has no major overseas assets, and assets measured at fair value are primarily financing for accounts receivable; some assets are subject to restrictions 1. Significant Changes in Asset Composition At the end of the reporting period, the company's cash and cash equivalents and total assets both increased, with cash and cash equivalents' proportion of total assets increasing by 4.13%; long-term borrowings' proportion of total assets decreased by 3.26% 2025 H1 Asset Composition Change | Item | End of Current Period Amount (yuan) | Proportion of Total Assets (%) | End of Last Year Amount (yuan) | Proportion of Total Assets (%) | Change in Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 685,320,179.49 | 24.91 | 534,358,588.59 | 20.78 | 4.13 | | Accounts Receivable | 1,016,236,918.25 | 36.94 | 950,436,654.46 | 36.96 | -0.02 | | Total Assets | 2,750,991,810.52 | 100.00 | 2,571,233,117.17 | 100.00 | 6.99 | | Short-Term Borrowings | 179,196,686.26 | 6.51 | 165,601,814.73 | 6.44 | 0.07 | | Long-Term Borrowings | 364,423,130.55 | 13.25 | 424,410,413.51 | 16.51 | -3.26 | 2. Major Overseas Assets The company had no major overseas assets during the reporting period - The company had no major overseas assets during the reporting period[66] 3. Assets and Liabilities Measured at Fair Value At period-end, the company's financial assets measured at fair value were primarily financing for accounts receivable, with an ending balance of 13.0633 million yuan, and no fair value change gains or losses in the current period 2025 H1 Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Other Changes (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financing for Accounts Receivable | 52,514,439.06 | 48,433,110.51 | - | 87,884,231.29 | 13,063,318.28 | | Financial Liabilities | 0.00 | - | - | 0.00 | 0.00 | - Other changes in financing for accounts receivable this period were due to maturity and acceptance of bills, and derecognition of discounted bills (endorsement or discounting)[67] 4. Asset Restrictions as of the End of the Reporting Period As of the end of the reporting period, the company's cash and cash equivalents, notes receivable, and fixed assets totaling 137.20799276 million yuan were restricted, primarily for letter of guarantee deposits, un-derecognized notes, and mortgage borrowings 2025 H1 Asset Restrictions | Item | Ending Book Balance (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 13,188,495.94 | Letter of guarantee deposit | | Notes Receivable | 5,750,833.18 | Un-derecognized notes | | Fixed Assets | 118,268,663.64 | Mortgage borrowings | | Total | 137,207,992.76 | | 7. Analysis of Investment Status The company's investment amount for the reporting period was 0 yuan, a significant decrease from the 1.7634 million yuan in the same period last year; there were no significant equity investments, non-equity investments, securities investments, derivative investments, or use of raised funds during the reporting period 1. Overall Situation The company's investment amount for the reporting period was 0 yuan, a significant decrease from 1.7634 million yuan in the same period last year 2025 H1 Investment Amount Change | Indicator | Investment Amount in Reporting Period (yuan) | Investment Amount in Same Period Last Year (yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Investment Amount | 0.00 | 1,763,390.31 | 0.00 | 2. Significant Equity Investments Acquired During the Reporting Period The company had no significant equity investments acquired during the reporting period - The company had no securities investments during the reporting period[70] 3. Significant Non-Equity Investments Underway During the Reporting Period The company had no significant non-equity investments underway during the reporting period - The company had no derivative investments during the reporting period[70] 4. Financial Asset Investments The company had no securities investments or derivative investments during the reporting period - The company had no securities investments during the reporting period[70] - The company had no derivative investments during the reporting period[71] 5. Use of Raised Funds The company had no use of raised funds during the reporting period - The company had no use of raised funds during the reporting period[72] 8. Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of any significant assets during the reporting period[73] - The company did not dispose of any significant equity during the reporting period[74] 9. Analysis of Major Holding and Participating Companies Among the company's major holding subsidiaries, Chengyuan Mining's net profit decreased, while Gaozheng Blasting, Gaozheng Transportation, and Gaozheng Yiyi all achieved net profit growth, primarily due to increased projects, optimized operations, and higher sales volume 2025 H1 Major Holding and Participating Company Financial Data | Company Name | Company Type | Principal Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chengyuan Mining Development Co., Ltd. | Subsidiary | Blasting Services | 66,592,610.00 | 622,086,606.69 | 252,103,991.04 | 163,716,394.15 | -31,188,842.34 | -31,862,543.04 | | Tibet Gaozheng Blasting Engineering Co., Ltd. | Subsidiary | Blasting Services | 46,511,622.00 | 483,441,659.52 | 121,179,901.28 | 229,860,950.82 | 18,811,520.73 | 16,520,532.14 | | Tibet Gaozheng Transportation Services Co., Ltd. | Subsidiary | Transportation Services | 58,823,500.00 | 135,990,975.88 | 105,164,706.93 | 54,532,025.22 | 8,908,971.27 | 7,867,730.61 | | Tibet Gaozheng Yiyi Technology Co., Ltd. | Subsidiary | Electronic Detonator Modules | 44,900,000.00 | 125,701,128.02 | 65,211,173.60 | 45,500,441.14 | 5,361,327.96 | 4,709,345.42 | - Chengyuan Mining Development Co., Ltd.'s net profit decreased, mainly due to fewer large projects and higher initial investments in newly developed projects[77] - Tibet Gaozheng Blasting Engineering Co., Ltd.'s net profit increased, mainly due to more projects and lower unit costs for mixed explosives[77] - Tibet Gaozheng Transportation Services Co., Ltd.'s net profit increased, mainly due to increased civil explosive product usage in large infrastructure projects, higher transportation volume, and cost reduction through optimized operating models[76] - Tibet Gaozheng Yiyi Technology Co., Ltd.'s net profit increased, mainly due to higher sales volume, reduced costs from bulk raw material procurement, improved capacity utilization, and reduced bad debt provisions[77] 10. Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[78] 11. Risks Faced by the Company and Countermeasures The company faces multiple risks including intensified industry competition, capacity bottlenecks, safety production, raw material price fluctuations, and accounts receivable management; the company has formulated and actively implemented countermeasures such as cooperation with industry associations, market-based capacity solutions, strengthened safety management, optimized supply chains, and enhanced accounts receivable collection - The company faces risks from intensified industry competition, mainly due to central enterprises and civil explosive companies entering the Tibet market, leading to fierce price competition from new production enterprises[78] - Countermeasures: Establish the Tibet Autonomous Region Blasting Industry Association to regulate market competition and cooperate with competitors to maintain civil explosive material prices in the Tibet region[78] - The company faces capacity bottleneck constraints, as demand for civil explosives increases annually with the development of large-scale mining projects and regional infrastructure[78] - Countermeasures: Resolve capacity constraints through market-based approaches in line with industry regulatory policies[79] - The civil explosives industry is high-risk, and the company faces safety production risks, requiring continuous resource investment to strengthen safety management[79] - Countermeasures: Learn from leading enterprises' advanced experience, optimize systems, strengthen education and training, increase assessment and penalties, and invest in intelligent technology[80] - Ammonium nitrate, as a main raw material, has price fluctuations that may affect the company's profitability[81] - Countermeasures: Strengthen market monitoring systems, optimize supply chain layout, and expand qualified supplier resources[81] - Due to the business model and settlement cycles of engineering construction, the company's accounts receivable continue to grow, facing risks of overdue payments or bad debts[81] - Countermeasures: Establish a leading group for accounts receivable collection, strengthen collection quality management, and improve the legal rights protection system[82] 12. Implementation of Market Value Management System and Valuation Enhancement Plan The company did not disclose a market value management system or valuation enhancement plan during the reporting period - The company has not formulated a market value management system[83] - The company has not disclosed a valuation enhancement plan[83] 13. Implementation of "Quality and Return Dual Enhancement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan[83] Part IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period, with specific details available in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[85] 2. Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[86] 3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company actively advanced its 2025 restricted stock incentive plan, which was reviewed and approved by the board of directors and supervisory board, received approval from the controlling shareholder and SASAC, had its list of incentive recipients publicly disclosed without objection, and was ultimately approved by the general meeting of shareholders - The company convened the eighth meeting of the fourth board of directors, which reviewed and approved the "Proposal on the Tibet Gaozheng Civil Explosives Co., Ltd. 2025 Restricted Stock Incentive Plan (Draft)" and its summary, among other related proposals[87] - The company received approval from its controlling shareholder, Tibet Construction Engineering and Building Materials Group Co., Ltd., agreeing in principle to the company's implementation of the restricted stock incentive plan[88] - The company publicly disclosed the list of proposed incentive recipients for this incentive plan and received no objections[88] - The company convened the second extraordinary general meeting of shareholders in 2025, which reviewed and approved the restricted stock incentive plan and related proposals[89] 4. Environmental Information Disclosure The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law[91] 5. Social Responsibility During the reporting period, the company actively fulfilled its social responsibilities, including donating 907,000 yuan worth of relief supplies for earthquake disaster relief, purchasing 119,000 yuan in poverty alleviation products, donating 45,000 yuan for emergency safety popular science activities, supporting industry association activities with 49,000 yuan, and creating 176 jobs - The company donated 907,000 yuan worth of relief supplies for earthquake disaster relief in Dingri County, Xigaze[91] - To support consumption-based poverty alleviation, the company purchased poverty alleviation products totaling 119,000 yuan from Tibet Earth's Third Pole Plateau Specialty Natural Food Ingredients Co., Ltd[91] - The company donated 45,000 yuan to the Nyingchi Emergency Management Bureau for the 2025 Nyingchi "Emergency Safety Popular Science" series of activities[91] - The company and its holding subsidiaries created 176 jobs[91] Part V Significant Matters 1. Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company The commitments made by the company's actual controller, shareholders, and related parties regarding avoiding horizontal competition are currently being fulfilled, with no overdue unfulfilled commitments as of the end of the reporting period - Luo Naixin's commitments regarding horizontal competition, related party transactions, and fund occupation are being fulfilled and are long-term effective[93][94][95] - Tibet Construction Engineering and Building Materials Group Co., Ltd.'s commitment to avoid horizontal competition is being fulfilled and is long-term effective[95][96] 2. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties The company reported no non-operating funds occupied by its controlling shareholder and other related parties during the reporting period - The company reported no non-operating funds occupied by its controlling shareholder and other related parties during the reporting period[97] 3. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[98] 4. 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[100] 5. Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for This Period The company had no non-standard audit report during the reporting period, thus this explanation is not applicable 6. Board of Directors' Explanation on "Non-Standard Audit Report" for Last Year The company had no non-standard audit report during the reporting period, thus this explanation is not applicable 7. Bankruptcy Reorganization Matters The company had no bankruptcy reorganization matters during the reporting period - The company had no bankruptcy reorganization matters during the reporting period[101] 8. Litigation Matters Controlling subsidiary Chengyuan Mining is involved in a contract dispute lawsuit with an amount of 125.7586 million yuan, where it won in the first instance, but the plaintiff appealed, and the second instance is currently underway; additionally, 4 new contract disputes were concluded and won during the reporting period - The company's controlling subsidiary, Chengyuan Mining Development Co., Ltd., is involved in a contract dispute lawsuit with an amount of 125.7586 million yuan[102] - The company won the first instance of the lawsuit, and the second instance has been heard but not yet ruled upon[102][103] - During the reporting period, 4 new contract disputes were concluded and won, involving an amount of 2.0171 million yuan[103] 9. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[104] 10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no issues with the integrity status of the company, its controlling shareholder, or actual controller during the reporting period - The company reported no issues with the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[105] 11. Significant Related Party Transactions The company engaged in significant related party transactions related to daily operations during the reporting period, primarily involving the procurement and sale of goods and the provision and acceptance of labor services, with transaction pricing adhering to market principles; additionally, there were other related party transactions such as accepting labor dispatch services and office leasing 1. Related Party Transactions Related to Daily Operations During the reporting period, the company engaged in multiple daily operating related party transactions, primarily including the procurement of explosives, pipe products, and cord products totaling 57.02688 million yuan from Yahua Group Mianyang Industrial Co., Ltd., and the sale of electronic detonators and transportation services totaling 27.41564366 million yuan to them 2025 H1 Related Party Transactions Related to Daily Operations | Related Party | Related Party Transaction Type | Related Party Transaction Content | Related Party Transaction Amount (ten thousand yuan) | Proportion of Similar Transactions (%) | Approved Transaction Limit (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tibet Zhongjin Xinlian Blasting Engineering Co., Ltd. | Sales of Products to Related Party | Pipe Products, Cord Products | 677.16 | 0.88 | 1,000 | | Sichuan Yahua Industrial Group Co., Ltd., Yahua Group Mianyang Industrial Co., Ltd. | Procurement of Products from Related Party | Explosives, Pipe Products, Cord Products | 5,702.68 | 10.62 | 13,000 | | Sichuan Yahua Industrial Group Co., Ltd., Yahua Group Mianyang Industrial Co., Ltd. | Sales of Products and Provision of Transportation Services to Related Party | Electronic Detonators, Transportation Services | 2,741.56 | 3.57 | 7,000 | | Tibet Changdu Gaozheng Building Materials Co., Ltd. | Provision of Blasting Construction Services to Related Party | Blasting Services | 0.00 | 0.00 | 6,000 | | Tibet Poly Jiulian Civil Explosives Development Co., Ltd. | Provision of Transportation Services to Related Party | Transportation Services | 108.26 | 0.14 | 1,000 | | Tibet Poly Jiulian Civil Explosives Development Co., Ltd. | Procurement of Products from Related Party | Explosives | 2,510.01 | 4.48 | 6,000 | | Total | | | 11,739.67 | | 34,000 | 2. Related Party Transactions Involving Asset or Equity Acquisitions and Disposals The company had no related party transactions involving asset or equity acquisitions and disposals during the reporting period - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[109] 3. Related Party Transactions Involving Joint External Investments The company had no related party transactions involving joint external investments during the reporting period - The company had no related party transactions involving joint external investments during the reporting period[111] 4. Related Party Debt and Credit Transactions The company had no related party debt and credit transactions during the reporting period - The company had no related party debt and credit transactions during the reporting period[112] 5. Transactions with Affiliated Finance Companies The company had no deposits, loans, credit lines, or other financial business with affiliated finance companies - The company had no deposits, loans, credit lines, or other financial business with affiliated finance companies and related parties[113] 6. Transactions Between the Company's Controlled Finance Company and Related Parties The company's controlled finance company had no deposits, loans, credit lines, or other financial business with related parties - The company's controlled finance company had no deposits, loans, credit lines, or other financial business with related parties[114] 7. Other Significant Related Party Transactions The company engaged in other significant related party transactions during the reporting period, including accepting labor dispatch services, providing office leasing, and accepting property management services 2025 H1 Other Significant Related Party Transactions | Related Party Name | Transaction Type | Actual Transaction Amount (yuan) | | :--- | :--- | :--- | | Tibet Tianhui Human Resources Management and Development Co., Ltd. | Acceptance of Labor Dispatch Services | 18,165,841.35 | | Tibet Zangjian Investment Co., Ltd. | Provision of Office Leasing | 500,138.57 | | Tibet Gaozheng Property Management Co., Ltd. | Acceptance of Property Services | 878,878.65 | | Tibet Zangjian Management Services Co., Ltd. | Acceptance of Office Supplies Procurement, Catering Management, etc. | 158,004.44 | 12. Significant Contracts and Their Performance The company had office leasing arrangements and entrusted wealth management during the reporting period, but no significant guarantees or other major contracts 1. Custody, Contracting, and Leasing Matters The company had no custody or contracting situations during the reporting period, but did have office leasing arrangements, recognizing 500,138.57 yuan in leasing income for the current period - The company had no custody situations during the reporting period[116] - The company had no contracting situations during the reporting period[117] 2025 H1 Leasing Situation | Related Party Name | Transaction Type | Actual Transaction Amount (yuan) | | :--- | :--- | :--- | | Tibet Zangjian Investment Co., Ltd. | Office Leasing | 500,138.57 | 2. Significant Guarantees The company had no significant guarantees during the reporting period - The company had no significant guarantees during the reporting period[119] 3. Entrusted Wealth Management The company's entrusted wealth management amount and unmatured balance for the reporting period were both 55 million yuan, all in bank wealth management products, with no overdue unrecovered amounts 2025 H1 Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Entrusted Wealth Management Amount (ten thousand yuan) | Unmatured Balance (ten thousand yuan) | Overdue Unrecovered Amount (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 5,500 | 5,500 | 0 | 4. Other Significant Contracts The company had no other significant contracts during the reporting period - The company had no other significant contracts during the reporting period[121] 13. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[122] 14. Significant Matters of Company Subsidiaries The contract dispute involving the company's controlling subsidiary, Chengyuan Mining Development Co., Ltd., is currently in its second instance after the plaintiff appealed the first-i