顺灏股份(002565) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents and Definitions Important Notice The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, affirming the financial report's authenticity - Company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions, and bear individual and joint legal responsibilities[4] - Company's responsible person Wang Zhengling, accounting supervisor Shen Bin, and accounting manager Tang Juchan declare the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans no cash dividends, no bonus shares, and no capital increase from capital reserves[6] Table of Contents This section lists the report's overall structure, covering nine main chapters including company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data List of Reference Documents This section provides a list of reference documents for the report, including financial statements signed by the legal representative, the original semi-annual report, original drafts of publicly disclosed documents, and other relevant materials, available at the company's securities department - Reference documents include financial statements signed and sealed by the legal representative, accounting supervisor, and accounting manager; the original 2025 semi-annual report signed and sealed by the legal representative; original drafts of all company documents and announcements publicly disclosed during the reporting period; and other relevant materials[11] - The aforementioned reference documents are available at the company's securities department[12] Definitions This section defines key terms used in the report, covering company names, reporting periods, currency units, laws, regulations, affiliated companies, product types, specific chemical substances, and regulatory authorizations, ensuring clear understanding of the report's content Partial Definitions | Definition Item | Definition Content | | :--- | :--- | | The Company, Company, Shunhao Stock, Shanghai Luxin | Shanghai Shunhao New Material Technology Co., Ltd., formerly known as Shanghai Luxin Packaging Material Technology Co., Ltd. | | Reporting Period, This Reporting Period | January 1, 2025 to June 30, 2025 | | New Tobacco Products | Relative to traditional tobacco products, refers to other categories of tobacco products that contain tobacco or can produce smoke and flavor, provide smoking pleasure, and satisfy physiological needs, but are not cigarettes, roll-your-own cigarettes, pipe tobacco, shisha, cigars, chewing tobacco, snuff, or oral tobacco products; generally considered to include low-temperature cigarettes (heated non-burn tobacco products) | | Industrial Hemp | Cannabis sativa plants with a tetrahydrocannabinol content below 0.3% (dry weight percentage); in China, industrial hemp is called Hanma (hemp), an annual herbaceous plant of the Cannabinaceae family (Cannabis) that does not exhibit psychoactive effects | | CBD | Cannabidiol | | PMTA Authorization | PMTA (Premarket Tobacco Product Application) is a review process used by the U.S. Food and Drug Administration (FDA) to regulate tobacco products | Section II Company Profile and Key Financial Indicators Company Profile Shanghai Shunhao New Material Technology Co., Ltd., stock abbreviation "Shunhao Stock," stock code 002565, is listed on the Shenzhen Stock Exchange, with Wang Zhengling as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Shunhao Stock | | Stock Code | 002565 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Shanghai Shunhao New Material Technology Co., Ltd. | | Legal Representative | Wang Zhengling | Contact Persons and Information The company's Board Secretary is Du Yunbo, and Securities Affairs Representative is Zhou Xiaofeng, both located at 200 Zhenchen Road, Putuo District, Shanghai, with identical phone and fax numbers, and provided email addresses Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Du Yunbo | 200 Zhenchen Road, Putuo District, Shanghai | 021-66278702 | 021-66278702 | duyunbo@shunhostock.com | | Securities Affairs Representative | Zhou Xiaofeng | 200 Zhenchen Road, Putuo District, Shanghai | 021-66278702 | 021-66278702 | zhouxiaofeng@shunhostock.com | Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure, and reference locations, with details available in the 2024 annual report - Company's registered address, office address and postal code, website, and email remained unchanged during the reporting period, details can be found in the 2024 annual report[19] - The securities exchange website and media name and URL for the company's semi-annual report disclosure, and the location for the company's semi-annual report, remained unchanged during the reporting period, details can be found in the 2024 annual report[20] Key Accounting Data and Financial Indicators This reporting period, the company's operating revenue decreased by 12.19% year-on-year, but net profit attributable to shareholders increased by 23.11%, with basic earnings per share and weighted average return on net assets also improving Key Accounting Data and Financial Indicators (This Reporting Period vs. Prior Year Period) | Indicator | This Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 619,542,591.83 | 705,557,540.18 | -12.19% | | Net Profit Attributable to Listed Company Shareholders | 33,303,430.24 | 27,051,476.56 | 23.11% | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-recurring Gains and Losses | 29,483,521.27 | 31,444,852.31 | -6.24% | | Net Cash Flow from Operating Activities | 97,647,244.23 | 93,130,846.61 | 4.85% | | Basic Earnings Per Share (Yuan/share) | 0.0314 | 0.0255 | 23.14% | | Diluted Earnings Per Share (Yuan/share) | 0.0314 | 0.0255 | 23.14% | | Weighted Average Return on Net Assets | 1.81% | 1.42% | 0.39% | | Period-end Indicators | End of This Reporting Period (Yuan) | End of Prior Year (Yuan) | Change from Prior Year-end | | Total Assets | 2,615,118,272.85 | 2,795,780,646.47 | -6.46% | | Net Assets Attributable to Listed Company Shareholders | 1,788,292,787.37 | 1,892,104,559.86 | -5.49% | Differences in Accounting Data under Domestic and International Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those under Chinese accounting standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under international accounting standards and those under Chinese accounting standards[23] - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and those under Chinese accounting standards[24] Non-recurring Gains and Losses Items and Amounts This reporting period, total non-recurring gains and losses amounted to 3,819,908.97 Yuan, primarily from disposal of non-current assets, government grants, and fair value changes of financial assets Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 840,671.13 | | | Government Grants Recognized in Current Profit or Loss | 3,093,701.84 | Mainly government grants related to income/assets | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-financial Enterprises and from Disposal of Financial Assets and Liabilities | 313,837.68 | Fair value changes and investment income from trading financial assets | | Other Non-operating Income and Expenses Apart from the Above Items | -39,954.98 | | | Less: Income Tax Impact | 288,346.22 | | | Impact on Minority Interests (After Tax) | 100,000.48 | | | Total | 3,819,908.97 | | Section III Management Discussion and Analysis Company's Main Businesses During the Reporting Period The company's main businesses remained unchanged during the reporting period, adhering to a "green low-carbon new materials + biological big health" dual-wing development strategy, encompassing special environmental paper, printed products, industrial hemp deep processing, and new tobacco R&D, production, and sales - The company's main businesses remained unchanged, consistently adhering to the "environmental low-carbon new materials + biological big health" dual-wing development strategy[40] - The company's operations revolve around four major businesses: R&D, production, and sales of special environmental paper; R&D, production, and sales of printed products; deep processing of industrial hemp and application scenario R&D; and R&D, production, and sales of new tobacco[40] - The company expanded its development into a diversified, multi-industry chain new landscape by investing in Beijing Rail Chenguang Technology Co., Ltd., whose core businesses include "Tian Shu Tian Suan" and "Di Shu Tian Suan"[40] (I) Industry Overview During the Reporting Period The packaging and printing industry is moving towards green and scaled development, with the tobacco packaging market expected to grow steadily, while the industrial hemp and new tobacco industries are entering regulated and orderly development phases globally - The packaging and printing industry shows a trend of green and scaled development, with the global tobacco packaging market projected to reach $10.15 billion by 2031, at a CAGR of 1.9%[29] - The industrial hemp industry is gradually entering a compliant development stage, with the global medical cannabis market revenue expected to reach $21.04 billion by 2025, growing at a CAGR of 1.65% from 2025-2029[31][32] - The new tobacco products industry is entering a legal and orderly development stage, with increasing global regulatory policies, and compliant products are expected to significantly increase their market share[37][38] (II) Company's Main Businesses The company adheres to a "green low-carbon new materials + biological big health" dual-wing development strategy, with main businesses including special environmental paper, printed products, industrial hemp deep processing, and new tobacco R&D, production, and sales - The company's main businesses remained unchanged, consistently adhering to the "environmental low-carbon new materials + biological big health" dual-wing development strategy[40] - The company's operations revolve around four major businesses: R&D, production, and sales of special environmental paper; R&D, production, and sales of printed products; deep processing of industrial hemp and application scenario R&D; and R&D, production, and sales of new tobacco[40] - The company expanded its development into a diversified, multi-industry chain new landscape by investing in Beijing Rail Chenguang Technology Co., Ltd[40] (III) Company's Main Products, Uses, and Business Models The company's main products include special anti-counterfeiting environmental paper, printed products, industrial hemp extracts and derivatives, and new tobacco products, with business models covering customized production, bidding, domestic and international sales, and license management - Special anti-counterfeiting environmental paper, including vacuum metallized paper and laser anti-counterfeiting paper, is applied in specific customer terminal consumer goods and social consumer goods industries, with a sales model based on customer orders for raw material procurement, production, and sales[41] - Printed products are diverse, primarily serving specific customer terminal enterprises through bidding for orders and providing personalized customization services[42] - The industrial hemp business covers the processing and extraction of CBD, full-spectrum oil, and other rare cannabinoids, technical research, and product export, also launching the Nano Joints series of heated non-burn products and Vitaldiol-R series health products in the United States[43][45] - The new tobacco products business is conducted through self-investment and controlled subsidiaries, with sub-subsidiary Luxinfeng, associate company Meizhonglian, and subsidiary Shunhao Yilong having obtained relevant e-cigarette production or brand holding licenses, and launched the "Yilong" brand e-cigarette products[47][48] Analysis of Core Competencies The company's core competencies include independent innovation, green environmental products, renowned brands, scaled production, quality products, innovative services, and synergistic domestic and international resources - The company is one of the drafting units for the national packaging industry standard "Vacuum Metallized Paper," holding 223 trademarks and 402 patents (including 38 invention patents), maintaining leading technology and market competitive advantages[50][51] - The company's products are certified with OK compost industrial and home compostable standards, actively developing biodegradable and recyclable paper-film packaging products, and introducing RTO waste gas treatment equipment, demonstrating green, environmental, and sustainable advantages[52][53] - The company expands production scale through mergers, acquisitions, and new subsidiaries, achieving industrial chain integration, possessing strong bargaining power and manufacturing advantages with lower procurement costs[57] - The company has established ISO9001 quality, ISO14001 environmental, ISO45001 occupational health and safety, and FSC-COC forest chain of custody management systems, and enhances product quality through AI-driven quality prediction models[58][59] - The company deepens service system reform, establishing "2-hour feedback" and "24-hour customer" mechanisms to improve customer satisfaction, and builds domestic and international synergy through agile organization, professional talent, and systematic incentives[60][61] Analysis of Main Business Operations This reporting period, the company's operating revenue decreased by 12.19% year-on-year to 619.54 million Yuan, primarily due to reduced sales, while operating costs decreased by 15.01% Year-on-year Changes in Key Financial Data | Indicator | This Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 619,542,591.83 | 705,557,540.18 | -12.19% | Decreased sales | | Operating Costs | 449,843,820.29 | 529,291,941.23 | -15.01% | Related to revenue decrease | | Net Profit Attributable to Listed Company Shareholders | 33,303,430.24 | 27,051,476.56 | 23.11% | | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-recurring Gains and Losses | 29,483,521.27 | 31,444,852.31 | -6.24% | | | Net Cash Flow from Operating Activities | 97,647,244.23 | 93,130,846.61 | 4.85% | Increase in other cash received related to operating activities | | Net Cash Flow from Investing Activities | -59,536,776.94 | -101,348,086.08 | 41.26% | Increase in cash received from investment recovery | | Net Cash Flow from Financing Activities | -86,862,791.29 | -33,068,840.42 | -162.67% | Repurchase of treasury shares | | Net Increase in Cash and Cash Equivalents | -48,558,509.17 | -41,277,879.14 | -17.64% | Dividends distributed this period | Operating Revenue Composition (by Product) | Product | Amount This Reporting Period (Yuan) | Proportion of Operating Revenue | Amount Prior Year Period (Yuan) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Metallized Paper | 186,060,070.44 | 30.03% | 230,759,220.52 | 32.71% | -19.37% | | Printed Products | 297,796,167.59 | 48.07% | 312,919,140.51 | 44.35% | -4.83% | | New Tobacco | 10,204,639.51 | 1.65% | 2,700,885.54 | 0.38% | 277.83% | Operating Revenue Composition (by Region) | Region | Amount This Reporting Period (Yuan) | Proportion of Operating Revenue | Amount Prior Year Period (Yuan) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | East China Region | 128,251,561.20 | 20.70% | 167,760,144.27 | 23.78% | -23.55% | | South China Region | 116,848,389.73 | 18.86% | 95,122,986.41 | 13.48% | 22.84% | | Southwest China Region | 178,921,419.24 | 28.88% | 203,562,453.34 | 28.85% | -12.10% | | Overseas Region | 91,179,043.81 | 14.72% | 68,393,687.82 | 9.69% | 33.31% | Analysis of Non-Main Business Operations This reporting period, non-main business operations contributed minimally to total profit, with negative investment income, and fair value changes and asset impairments being non-sustainable items Non-Main Business Items and Proportion to Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | -985,909.92 | -1.86% | Yes | | Fair Value Change Gains/Losses | 453,328.30 | 0.85% | No | | Asset Impairment | -1,438,424.67 | -2.71% | No | | Non-operating Income | 179,605.72 | 0.34% | No | | Non-operating Expenses | 66,569.33 | 0.13% | No | | Taxes and Surcharges | 5,376,861.00 | 10.12% | Yes | | Other Income | 6,142,024.15 | 11.56% | No | | Credit Impairment Losses | -572,363.34 | -1.08% | No | | Asset Disposal Gains | 836,965.86 | 1.58% | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets decreased by 6.46% year-on-year, and net assets attributable to shareholders decreased by 5.49% Significant Changes in Asset Composition | Item | Amount at End of This Reporting Period (Yuan) | Proportion of Total Assets | Amount at Prior Year-end (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 795,988,768.15 | 30.44% | 858,089,975.56 | 30.69% | -0.25% | No significant change during the reporting period | | Accounts Receivable | 218,584,622.81 | 8.36% | 342,865,419.93 | 12.26% | -3.90% | | | Long-term Borrowings | 90,000,000.00 | 3.44% | 29,700,000.00 | 1.06% | 2.38% | Increase in long-term borrowings | | Trading Financial Assets | 106,423,175.36 | 4.07% | 42,122,823.03 | 1.51% | 2.56% | Wealth management products not yet matured and redeemed at period-end | | Notes Payable | 219,853,435.26 | 8.41% | 286,769,188.22 | 10.26% | -1.85% | Notes matured and accepted | | Accounts Payable | 141,844,473.44 | 5.42% | 191,167,898.55 | 6.84% | -1.42% | Decrease in accounts payable | Key Overseas Asset Information | Specific Asset Content | Reason for Formation | Asset Scale (Yuan) | Location | Operating Model | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | SINO-JK Equity Investment | Business combination not under common control | 16,985,993.05 | Cambodia | Cigarette Productions | -0.86% | | Kinneloa Holdings Inc Equity Investment | Subsidiary | 63,165,344.31 | United States | Trade | 3.21% | | E1011 Labs Equity Investment | Subsidiary | -27,158,397.44 | United States | Manufacturing, Trade | -1.38% | | Shunho Luxin USA Equity Investment | Subsidiary | 1,531,381.10 | United States | Health Product Manufacturing, Trade | 0.08% | | LHS Industry Equity Investment | Subsidiary | -14,447,045.76 | United States | Industrial Hemp Product Manufacturing, Trade | -0.73% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for the Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 42,122,823.03 | 453,328.30 | 106,423,175.36 | | Investments in Other Equity Instruments | 17,100,000.00 | 0.00 | 17,100,000.00 | | Other Non-current Financial Assets | 47,452,435.55 | 0.00 | 47,444,985.55 | | Financing Receivables | 91,522,002.82 | 0.00 | 100,839,567.70 | | Total | 198,197,261.40 | 453,328.30 | 271,807,728.61 | Asset Restrictions | Item | Ending Book Balance (Yuan) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 135,247,920.67 | Bank acceptance bill deposits, letter of credit deposits, performance bonds, etc. | Restricted Use | | Financing Receivables | 1,115,320.09 | Pledge | Bill splitting | | Fixed Assets | 60,483,835.30 | Mortgage | Issuance of bank acceptance bills | | Intangible Assets | 4,563,591.75 | Mortgage | Issuance of bank acceptance bills | | Total | 201,410,667.81 | | | Analysis of Investment Status During the reporting period, the company's total investment amounted to 749.59 million Yuan, a year-on-year increase of 86.97% Investment Amount During the Reporting Period | Indicator | Investment Amount This Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 749,592,087.39 | 400,920,758.42 | 86.97% | Securities Investment (Ending Book Value) | Stock Abbreviation | Ending Book Value (Yuan) | | :--- | :--- | | Dawn Group | 3,075,147.00 | | Anche Testing | 4,968,600.00 | | Huaguang Huaneng | 4,810,914.00 | | Runyang Technology | 6,003,730.00 | | Suzhou Tianmai | 2,086,920.00 | | Total | 20,945,311.00 | 4. Financial Asset Investments The company's total securities investment during the reporting period was 749.59 million Yuan, primarily in domestic and overseas stocks, with an ending book value of 20.95 million Yuan Securities Investment (Ending Book Value) | Stock Abbreviation | Ending Book Value (Yuan) | | :--- | :--- | | Dawn Group | 3,075,147.00 | | Anche Testing | 4,968,600.00 | | Huaguang Huaneng | 4,810,914.00 | | Runyang Technology | 6,003,730.00 | | Suzhou Tianmai | 2,086,920.00 | | Total | 20,945,311.00 | - The company had no derivative investments during the reporting period[84] - The company had no use of raised funds during the reporting period[85] Significant Asset and Equity Sales During the reporting period, the company, through Shanghai Shunyun Industrial Co., Ltd., sold its equity in associate company Yuanhengliyun Printing Technology (Shanghai) Co., Ltd. for 29.81 million Yuan, expected to increase 2025 net profit by approximately 16.52 million Yuan - The company, through Shanghai Shunyun Industrial Co., Ltd., sold its equity in associate company Yuanhengliyun Printing Technology (Shanghai) Co., Ltd. for 29.81 million Yuan[86] - This sale is expected to increase the company's 2025 net profit by approximately 16.52 million Yuan[86] - This transaction followed principles of equality, voluntariness, fairness, and reasonableness, with no harm to the company or its shareholders' interests[86] Analysis of Major Holding and Associate Companies The company's major holding subsidiaries include Hubei Luxin, Qujing Fupai, Yuxi Printing, Shanghai Shunhao International Trade, and Fujian Taixing Special Paper, with associate companies including Shenzhen Meizhonglian and Yuxi Global Color Printing Carton Financial Overview of Major Holding and Associate Companies | Company Name | Company Type | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Hubei Luxin Environmental Packaging Technology Co., Ltd. | Subsidiary | 101,521,376.63 | 3,806,820.20 | | Qujing Fupai Color Printing Co., Ltd. | Subsidiary | 127,892,352.40 | 13,932,164.52 | | Yunnan Yuxi Printing Co., Ltd. | Subsidiary | 100,745,213.19 | 21,658,539.76 | | Shanghai Shunhao International Trade Co., Ltd. | Subsidiary | 102,497,142.62 | 1,374,670.00 | | Fujian Taixing Special Paper Co., Ltd. | Subsidiary | 112,408,370.40 | 10,225,695.93 | | E1011 Labs LLC | Subsidiary | 1,344,793.14 | 3,107,795.26 | | Shanghai Luxin Electronic Technology Co., Ltd. | Subsidiary | 4,524,938.66 | -8,234,990.02 | | Shenzhen Meizhonglian Technology Co., Ltd. | Associate Company | 275,592,818.77 | -16,401,222.30 | | Yuxi Global Color Printing Carton Co., Ltd. | Associate Company | 55,042,815.52 | 10,853,640.64 | - Hubei Luxin Environmental Packaging Technology Co., Ltd.'s net profit for this reporting period decreased by 60.13% year-on-year, mainly due to a 26.54% decrease in company revenue[89] - E1011 Labs LLC's net profit for this reporting period increased by 51.14% year-on-year, mainly due to a 704.41% increase in revenue and a 99.86% decrease in asset impairment losses this period[90] - Shanghai Luxin Electronic Technology Co., Ltd.'s net profit for this reporting period decreased by 504.93% year-on-year, mainly due to a decrease in investment income from joint ventures[90] Risks Faced by the Company and Countermeasures The company faces multiple risks in operational management, market competition, raw material price fluctuations, packaging and printing industry policy adjustments, new tobacco policy changes, and industrial hemp industry chain layout - The company's expanding operational scale demands higher internal management and risk control, addressed by strengthening management training and enhancing institutional enforcement to improve management levels and risk prevention awareness[91][92] - Facing intensified market competition, the company will adhere to R&D innovation, increase investment in new product development, secure high-quality customer resources, and enhance service quality to strengthen customer loyalty[94] - Raw material price fluctuation risks are managed by continuously tracking price trends, maintaining reasonable inventory, improving utilization efficiency, and strengthening strategic cooperation with suppliers[95] - Given the packaging and printing industry's strong reliance on the tobacco industry, the company will expand its printing business coverage, explore new markets, and provide integrated technical solutions[96] - Risks from new tobacco policy changes are mitigated by obtaining relevant licenses, increasing R&D and production efforts, expanding the entire industry chain, and strategically entering overseas markets[98] - The industrial hemp industry chain faces strict regulation and market competition, which the company addresses by strictly adhering to laws and regulations, strengthening external investment management, and enhancing talent reserves and management capabilities[99] Section IV Corporate Governance, Environment and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, the company's senior management changed, with Ni Li, Xiang Songlin, and Wu Di appointed as Vice Presidents, while Zhang Xiaoyong and Hou Ningning were dismissed from their Vice President positions due to work transfers Changes in Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Ni Li | Vice President | Appointment | June 26, 2025 | Work Transfer | | Xiang Songlin | Vice President | Appointment | June 26, 2025 | Work Transfer | | Wu Di | Vice President | Appointment | June 26, 2025 | Work Transfer | | Zhang Xiaoyong | Vice President | Dismissal | June 26, 2025 | Dismissal | | Hou Ningning | Vice President | Dismissal | June 26, 2025 | Dismissal | Profit Distribution and Capital Reserve to Share Capital Conversion for This Reporting Period The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans no cash dividends, no bonus shares, and no capital increase from capital reserves for the semi-annual period[103] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no implementation of equity incentive plans, employee stock ownership plans, or other employee incentive measures, though the 2025 employee stock ownership plan was approved but not yet completed - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[104] - The company's 2025 employee stock ownership plan related matters have been approved by the general meeting of shareholders, but the transfer of underlying shares has not yet been completed[104] Environmental Information Disclosure The company and its three major subsidiaries (Yunnan Yuxi Printing Co., Ltd., Hubei Luxin Environmental Packaging Technology Co., Ltd., and Qujing Fupai Color Printing Co., Ltd.) are included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries, totaling 3 entities, are included in the list of enterprises required to disclose environmental information by law[105] Enterprises Included in the List of Legally Required Environmental Information Disclosure | No. | Enterprise Name | Query Index for Legally Disclosed Environmental Information Report | | :--- | :--- | :--- | | 1 | Yunnan Yuxi Printing Co., Ltd. | http://183.224.17.39:10097/ynyfpl/frontal/index.html/home/enterpriseInfo?XTXH=07e201ae-486b-4da6-8f9b-fc7064710af7&XH=1682673685521045334528&year=2024 | | 2 | Hubei Luxin Environmental Packaging Technology Co., Ltd. | http://219.140.164.18:8007/hbyfpl/frontal/index.html/home/enterpriseInfo?XTXH=3645564b-b99c-4ec2-9f1c-b671c439ba41&XH=1682677500316029335552&year=2024 | | 3 | Qujing Fupai Color Printing Co., Ltd. | http://183.224.17.39:10097/ynyfpl/frontal/index.html/home/enterpriseInfo?XTXH=a6d24e11-aa9c-4158-9925-717916209706&XH=1682673681839045334528&year=2024 | Social Responsibility Status During the reporting period, the company had not yet carried out work related to consolidating poverty alleviation or rural revitalization - During the reporting period, the company had not yet carried out work related to consolidating poverty alleviation or rural revitalization[106] Section V Significant Matters Fulfillment of Commitments by Controlling Shareholders, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period During the reporting period, the company had no commitments by controlling shareholders, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period - During the reporting period, the company had no commitments by controlling shareholders, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period[108] Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties[109] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - During the reporting period, the company had no illegal external guarantees[110] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[111] Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization matters - During the reporting period, the company had no bankruptcy and reorganization matters[112] Litigation Matters This reporting period, the company had no significant litigation or arbitration matters, but two other lawsuits below the disclosure threshold, one with a 1 million Yuan provision, one pending, and one awaiting trial, none significantly impacting operations - This reporting period, the company had no significant litigation or arbitration matters[113] Summary of Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (Yuan) | Whether a Provision for Liabilities was Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Summary of other litigation (arbitration) matters of the company and its controlled subsidiaries that did not meet the disclosure threshold for significant litigation (total 2 cases) | 12,399,400.00 | One case resulted in a provision for liabilities of 1 million Yuan | One case is currently under trial, awaiting judgment; one case has been filed and is awaiting hearing | None of the involved cases had a significant impact on the company's production and operations | Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - During the reporting period, the company had no penalties or rectification situations[115] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholders, or actual controllers - During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholders, or actual controllers[116] Significant Related Party Transactions During the reporting period, the company engaged in ordinary related party transactions with associate company Yuxi Global Color Printing Carton Co., Ltd., including purchasing goods for 3.09 million Yuan and selling goods for 1.84 million Yuan, both within approved limits and at fair market prices Ordinary Related Party Transactions | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (Yuan) | Approved Transaction Limit (Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Yuxi Global Color Printing Carton Co., Ltd. | Purchase of Goods | Purchase of Goods | 3,085,711.43 | 4,480,000.00 | No | | Yuxi Global Color Printing Carton Co., Ltd. | Sale of Goods | Sale of Goods | 1,841,042.21 | 5,280,000.00 | No | - The company had no deposits, loans, credit, or other financial business with related financial companies[121] Significant Contracts and Their Performance During the reporting period, the company had no trust or contracting arrangements, but engaged in various property and equipment leases, generating both income and expenses - The company had no trust arrangements during the reporting period[124] - The company had no contracting arrangements during the reporting period[125] - During this reporting period, the company and its subsidiaries leased factory buildings, office buildings, dormitories, etc., generating lease income and expenses[126] Company's Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (Yuan) | Actual Guarantee Amount (Yuan) | Guarantee Period | Whether Guarantee Has Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Shanghai Shunhao International Trade Co., Ltd. | 120,000,000.00 | 47,220,000.00 | One year | No | | Shanghai Shunhao International Trade Co., Ltd. | 20,000,000.00 | 2,500,000.00 | One year | No | | Total Approved Guarantee Limit for Subsidiaries at Period-end | 140,000,000.00 | | | | | Total Actual Guarantee Balance for Subsidiaries at Period-end | | 49,720,000.00 | | | | | Proportion of Total Actual Guarantee to Company's Net Assets | | 2.78% | | | | Wealth Management Products | Specific Type | Amount of Wealth Management Transactions (Yuan) | Unmatured Balance (Yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 200,000,000.00 | 80,000,000.00 | | Brokerage Wealth Management Products | 5,000,000.00 | 5,000,000.00 | | Total | 205,000,000.00 | 85,000,000.00 | 2. Significant Guarantees The company provided a total guarantee limit of 140 million Yuan for its wholly-owned subsidiary, Shanghai Shunhao International Trade Co., Ltd., with an actual outstanding guarantee balance of 49.72 million Yuan, representing 2.78% of the company's net assets Company's Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (Yuan) | Actual Guarantee Amount (Yuan) | Guarantee Start Date | Guarantee End Date | Whether Guarantee Has Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Shunhao International Trade Co., Ltd. | 120,000,000.00 | 47,220,000.00 | October 10, 2024 | October 09, 2025 | No | | Shanghai Shunhao International Trade Co., Ltd. | 20,000,000.00 | 2,500,000.00 | August 28, 2024 | August 28, 2025 | No | | Total Approved Guarantee Limit for Subsidiaries at Period-end | 140,000,000.00 | | | | | | Total Actual Guarantee Balance for Subsidiaries at Period-end | | 49,720,000.00 | | | | | Proportion of Total Actual Guarantee to Company's Net Assets | | 2.78% | | | | - The company provided a guarantee for Shunhao International's application for a comprehensive credit line of 120 million Yuan from Shanghai Rural Commercial Bank Putuo Branch, with a one-year validity, primarily for opening international letters of credit[171] - The company provided a guarantee for Shunhao International's application for a comprehensive credit line of 20 million Yuan from Bank of Ningbo Co., Ltd. Shanghai Branch, with a one-year validity, primarily for opening guarantees and international letters of credit[171] 3. Wealth Management The company's total wealth management during the reporting period was 205 million Yuan, including 200 million Yuan in bank wealth management products and 5 million Yuan in brokerage wealth management products, with an unmatured balance of 85 million Yuan and no overdue unrecovered amounts Wealth Management Products | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (Yuan) | Unmatured Balance (Yuan) | Overdue Unrecovered Amount | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 200,000,000.00 | 80,000,000.00 | 0 | | Brokerage Wealth Management Products | Own Funds | 5,000,000.00 | 5,000,000.00 | 0 | | Total | | 205,000,000.00 | 85,000,000.00 | 0 | Explanation of Other Significant Matters The company's former controlled subsidiary, Zhejiang Demei Color Printing Co., Ltd., received three liquidation distributions totaling 40.14 million Yuan - The company's former controlled subsidiary, Zhejiang Demei Color Printing Co., Ltd., received three liquidation distributions, with the company receiving a total of 40,139,414.18 Yuan and its wholly-owned subsidiary Shanghai Shunhao International Trade Co., Ltd. receiving a total of 207,587.10 Yuan[133] - On June 1, 2023, the company received a "Case Filing Notice" from the Chuzhou Municipal Supervision Commission, initiating an investigation into the company for suspected unit bribery, with no latest progress on this matter yet[135] - The company's 2025 employee stock ownership plan has been approved by the general meeting of shareholders, with a proposed total of no more than 199 participants, holding no more than 28,661,750 shares of underlying stock, and the purchase price adjusted to 2.74 Yuan/share, but the transfer of underlying shares has not yet been completed as of the end of the reporting period[136][137] Section VI Share Changes and Shareholder Information Share Change Information During the reporting period, the company's total share capital remained unchanged, but due to the resignation of former Vice President Hou Ningning, his 11,250 unrestricted shares were converted to restricted shares 1. Share Change Information The company's total share capital remained unchanged, but due to the resignation of former Vice President Hou Ningning, his 11,250 unrestricted shares were converted to restricted shares, and the company completed a repurchase of 28,661,750 shares for employee incentives Share Change Information | Share Type | Quantity Before This Change (shares) | Proportion Before This Change | Increase/Decrease (+, -) Other in This Change (shares) | Quantity After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 33,750 | 0.00% | 11,250 | 45,000 | 0.00% | | II. Unrestricted Shares | 1,059,955,172 | 100.00% | -11,250 | 1,059,943,922 | 100.00% | | III. Total Shares | 1,059,988,922 | 100.00% | 0 | 1,059,988,922 | 100.00% | - During the reporting period, due to the resignation of former Vice President Mr. Hou Ningning, his 11,250 unrestricted shares were converted to restricted shares, with 100% of his shares locked[142] - As of May 12, 2025, the company had cumulatively repurchased 28,661,750 shares through centralized bidding, accounting for 2.7040% of the company's total share capital, with a total payment of 99,999,808.17 Yuan, and this share repurchase plan has been completed[144] 2. Changes in Restricted Shares During the reporting period, Mr. Hou Ningning's restricted shares increased from 33,750 shares to 45,000 shares, with an increase of 11,250 restricted shares due to his departure as a director, supervisor, or senior executive Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Increase in Restricted Shares This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Hou Ningning | 33,750 | 11,250 | 45,000 | Restriction due to departure of Director, Supervisor, or Senior Executive | | Total | 33,750 | 11,250 | 45,000 | | Number of Shareholders and Shareholding Status At the end of the reporting period, the total number of common shareholders was 46,062 - The total number of common shareholders at the end of the reporting period was 46,062[149] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Changes in Shareholding During Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shunhao Investment Group Co., Ltd. | Overseas Legal Person | 20.10% | 213,013,150 | 0 | 213,013,150 | | Wang Dan | Overseas Natural Person | 3.76% | 39,822,504 | 0 | 39,822,504 | | Gu Guomian | Domestic Natural Person | 3.74% | 39,606,800 | 39,606,800 | 39,606,800 | | Wang Yaofeng | Overseas Natural Person | 2.13% | 22,570,000 | -17,090,000 | 22,570,000 | | Teng Rongsong | Domestic Natural Person | 1.26% | 13,400,000 | 13,400,000 | 13,400,000 | - The company's actual controller, Mr. Wang Zhengling, holds 100% equity in Shunhao Investment Group Co., Ltd., the company's largest shareholder; Mr. Wang Zhengling is the son of Mr. Wang Dan, the company's second largest shareholder, and they constitute persons acting in concert due to their family relationship; Mr. Wang Zhengling and his persons acting in concert collectively hold 23.86% of the company's voting shares[149] - The company cumulatively repurchased 28,661,750 shares through centralized bidding, accounting for 2.7040% of the company's current total share capital; the repurchased shares are held in the company's dedicated repurchase account opened with China Securities Depository and Clearing Corporation Limited[150] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period, with details available in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period, details can be found in the 2024 annual report[151] 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[152] - The company's actual controller did not change during the reporting period[152] Preferred Share Information During the reporting period, the company had no preferred shares - During the reporting period, the company had no preferred shares[153] Section VII Bond Information Bond Information During the reporting period, the company had no bond-related information - During the reporting period, the company had no bond-related information[155] Section VIII Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[157] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the 2025 semi-annual period, comprehensively reflecting the financial position, operating results, and cash flow changes - The consolidated balance sheet shows total assets of 2,615,118,272.85 Yuan and total owners' equity attributable to the parent company of 1,788,292,787.37 Yuan at period-end[161] - The consolidated income statement shows total operating revenue of 619,542,591.83 Yuan and net profit attributable to parent company shareholders of 33,303,430.24 Yuan for this period[168][169] - The consolidated cash flow statement shows net cash flow from operating activities of 97,647,244.23 Yuan, net cash flow from investing activities of -59,536,776.94 Yuan, and net cash flow from financing activities of -86,862,791.29 Yuan[173][174] 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 2,615,118,272.85 Yuan, a 6.46% decrease from the beginning of the period Key Data from Consolidated Balance Sheet | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 795,988,768.15 | 858,089,975.56 | | Trading Financial Assets | 106,423,175.36 | 42,122,823.03 | | Accounts Receivable | 218,584,622.81 | 342,865,419.93 | | Inventories | 266,561,022.83 | 297,050,493.16 | | Long-term Equity Investments | 239,179,602.04 | 250,189,631.35 | | Fixed Assets | 418,293,711.04 | 437,115,526.68 | | Short-term Borrowings | 2,000,000.00 | 12,500,000.00 | | Notes Payable | 219,853,435.26 | 286,769,188.22 | | Long-term Borrowings | 90,000,000.00 | 29,700,000.00 | | Share Capital | 1,059,988,922.00 | 1,059,988,922.00 | | Treasury Stock | 99,999,808.17 | 0.00 | | Total Owners' Equity Attributable to Parent Company | 1,788,292,787.37 | 1,892,104,559.86 | | Total Assets | 2,615,118,272.85 | 2,795,780,646.47 | | Total Liabilities and Owners' Equity | 2,615,118,272.85 | 2,795,780,646.47 | 3. Consolidated Income Statement This reporting period, the company's consolidated total operating revenue was 619,542,591.83 Yuan, a 12.19% year-on-year decrease Key Data from Consolidated Income Statement | Item | 2025 Semi-annual Period (Yuan) | 2024 Semi-annual Period (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 619,542,591.83 | 705,557,540.18 | | Total Operating Costs | 570,961,922.88 | 655,053,339.67 | | Operating Profit | 53,016,289.33 | 58,081,543.81 | | Total Profit | 53,129,325.72 | 54,087,017.86 | | Net Profit | 42,745,035.97 | 41,866,452.96 | | Net Profit Attributable to Parent Company Shareholders | 33,303,430.24 | 27,051,476.56 | | Minority Interests | 9,441,605.73 | 14,814,976.40 | | Basic Earnings Per Share | 0.0314 | 0.0255 | | Diluted Earnings Per Share | 0.0314 | 0.0255 | 5. Consolidated Cash Flow Statement This reporting period, the company's net cash flow from operating activities was 97,647,244.23 Yuan, a 4.85% year-on-year increase Key Data from Consolidated Cash Flow Statement | Item | 2025 Semi-annual Period (Yuan) | 2024 Semi-annual Period (Yuan) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 898,092,797.07 | 833,310,254.42 | | Subtotal of Cash Outflows from Operating Activities | 800,445,552.84 | 740,179,407.81 | | Net Cash Flow from Operating Activities | 97,647,244.23 | 93,130,846.61 | | Subtotal of Cash Inflows from Investing Activities | 699,014,718.73 | 305,870,926.11 | | Subtotal of Cash Outflows from Investing Activities | 758,551,495.67 | 407,219,012.19 | | Net Cash Flow from Investing Activities | -59,536,776.94 | -101,348,086.08 | | Subtotal of Cash Inflows from Financing Activities | 92,000,000.00 | 2,500,000.00 | | Subtotal of Cash Outflows from Financing Activities | 178,862,791.29 | 35,568,840.42 | | Net Cash Flow from Financing Activities | -86,862,791.29 | -33,068,840.42 | | Net Increase in Cash and Cash Equivalents | -48,558,509.17 | -41,277,879.14 | | Cash and Cash Equivalents at End of Period | 660,740,847.47 | 500,763,617.83 | Company Basic Information Shanghai Shunhao New Material Technology Co., Ltd., formerly Shanghai Luxin Tobacco Packaging Material Technology Co., Ltd., changed its name in 2016 - Shanghai Shunhao New Material Technology Co., Ltd. was formerly Shanghai Luxin Tobacco Packaging Material Technology Co., Ltd., and changed its name in December 2016[200][202] - As of June 30, 2025, the company's total issued share capital was 1,059.9889 million shares, with a registered capital of 1,059.9889 million Yuan[205] - Mr. Wang Zhengling became the company's new actual controller on December 31, 2022, and he and his person acting in concert, Mr. Wang Dan, collectively hold 23.86% of the company's voting shares[204] - The company primarily engages in the development, production, and sales of high-grade paper and paperboard, new capacitor films, high-barrier films, multi-functional films, laser films, laser paper, aluminum foil paper, and aluminum foil cards; self-produced products, similar products, paper and paper products, edible agricultural products, electronic products sales (including online retail), commission agency (excluding auctions), import and export; providing related supporting services and technical consulting, packaging design services; network technology development; R&D, manufacturing, and sales of natural bio-fertilizers and organic feed; soil improvement; and leasing of self-owned properties[206] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis - These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and various specific accounting standards, application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance, as well as the "Information Disclosure Compilation Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" of the China Securities Regulatory Commission[207] - These financial statements are prepared on a going concern basis[208] Significant Accounting Policies and Estimates This reporting period saw no changes in significant accounting policies and estimates; the company adheres to enterprise accounting standards, uses RMB as its functional currency, and has a 12-month operating cycle - There were no significant changes in accounting policies or estimates this period[209] - The company uses RMB as its functional currency, and its operating cycle is 12 months[212][213] - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[232][233] - The company recognizes revenue when it has satisfied its performance obligations in the contract, i.e., when the customer obtains control of the related goods or services[338] - The company recognizes right-of-use assets and lease liabilities for leases other than short-term leases and leases of low-value assets[362][364] Taxation The company's main taxes include Value-Added Tax, Urban Maintenance and Construction Tax, and Corporate Income Tax, with several subsidiaries enjoying preferential income tax rates as high-tech or Western Development enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Calculated based on sales of goods and taxable services as stipulated by tax law to determine output tax, with the difference after deducting input tax for the current period being the VAT payable | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT and consumption tax paid | 7%, 5% | | Corporate Income Tax | Calculated based on taxable income | 25%, 23.20%, 21%, 20%, 16.50%, 15%, 8.25%, 8.84% | - Shanghai Shunhao New Material Technology Co., Ltd., Fujian Taixing Special Paper Co., Ltd., Yunnan Yuxi Printing Co., Ltd., Qujing Fupai Color Printing Co., Ltd., Shanghai Luxin Ziguang Intelligent Equipment Co., Ltd., and Hubei Luxin Environmental Packaging Technology Co., Ltd. all enjoy a 15% corporate income tax preferential rate[379][380][381] - Luxin Packaging Resources Holdings Limited, Luxinfeng Technology (Hong Kong) Limited, Luxin Limited, Luxin Cosmeceutical (Hong Kong) Limited, and Luxin Cosmetic (Hong Kong) Limited are registered in Hong Kong, China, and apply a two-tiered tax rate: 8.25% for profits up to 2 million HKD and 16.50% for profits exceeding 2 million HKD[382] - SINO-JK TOBACCO (CAMBODIA) CO., LTD. is registered in Cambodia and is subject to a 20.00% corporate profit tax; Kinneloa Holdings Inc., E1011 Labs LLC, Vitaldiol Pharmaceutical LLC, and LHS Industry LLC are registered in the United States and are subject to a 21% US federal tax and an 8.84% California state tax[382][383] Notes to Consolidated Financial Statement Items This section provides detailed notes on various consolidated financial statement items, including assets, liabilities, owners' equity, and profit and loss items, disclosing their ending balances, beginning balances, and period-on-period changes - Cash and cash equivalents had an ending balance of 796 million Yuan, with 13.9829 million Yuan deposited overseas[385] - Accounts receivable had an ending book value of 219 million Yuan, a 36.24% decrease from the beginning of the period, mainly due to reduced sales[22][399] - Inventories had an ending book value of 267 million Yuan, a 10.26% decrease from the beginning of the period, primarily comprising raw materials, merchandise inventory, and goods in transit[22][462] - Fixed assets had an ending book value of 418 million Yuan, a 4.31% decrease from the beginning of the period[22][507][509] - Operating revenue for this period was 619 million Yuan, and operating costs were 450 million Yuan, decreasing by 12.19% and 15.01% year-on-year, respectively[65][625] - Net profit attributable to parent company owners was 33.3034 million Yuan, a 23.11% increase year-on-year[169] Research and Development Expenses This reporting period, the company's total R&D expenses were 24.94 million Yuan, a 3.01% year-on-year decrease, primarily composed of direct materials and power, salaries, and depreciation and amortization, all expensed R&D Expense Composition | Item | Amount Incurred This Period (Yuan) | Amount Incurred Last Period (Yuan) | | :--- | :--- | :--- | | Direct Materials and Power | 7,320,035.50 | 8,475,180.59 | | Salaries and Wages | 10,755,908.61 | 10,837,241.58 | | Depreciation and Amortization | 5,160,626.42 | 4,765,550.05 | | Special Facility Fees | 292,591.48 | 251,725.65 | | Other Direct Expenses | 1,411,462.02 | 1,385,067.15 | | Total | 24,940,624.03 | 25,714,765.02 | | Of which: Expensed R&D Expenses | 24,940,624.03 | 25,714,765.02 | - R&D expenses for this period decreased by 3.01% year-on-year, mainly due to a decrease in direct materials and power[65][681] Changes in Consolidation Scope This reporting period, the company had no business combinations not under common control, business combinations under common control, reverse acquisitions, or loss of control over subsidiaries - There were no business combinations not under common control this period[684] - There were no business combinations under common control this period[689] - The