民丰特纸(600235) - 2025 Q2 - 季度财报

Definitions This section provides a comprehensive glossary of key terms and entities used throughout the report, ensuring clarity and consistent understanding 1.1 Definitions of Common Terms This chapter provides definitions for common terms used in the report, including company names, reporting periods, accounting firms, regulatory bodies, and specific business-related project names, ensuring consistent report interpretation | Common Term | Meaning | | :--- | :--- | | Minfeng, Minfeng Special Paper, the Company | Minfeng Special Paper Co., Ltd. | | Reporting Period | January 1, 2025 to June 30, 2025 | | Accounting Firm | Zhonghui Certified Public Accountants (Special General Partnership) | | CSRC | China Securities Regulatory Commission | | SSE | Shanghai Stock Exchange | | Company Law | Company Law of the People's Republic of China | | Articles of Association | Articles of Association of Minfeng Special Paper Co., Ltd. | | Controlling Shareholder, Group Company | Jiaxing Minfeng Group Co., Ltd. | | Jiaxing Industrial Assets Investment Group | Jiaxing Industrial Assets Investment Group Co., Ltd. | | Municipal Industrial Group | Jiaxing Industrial Development Group Co., Ltd. | | Phase I Project | Upgrade and Technical Transformation Project for New PM8 and New PM20 | | Phase II Project | 70,000-ton/year Special Coated Paper Project | Company Profile and Key Financial Indicators This section presents the company's fundamental information, contact details, recent operational changes, stock overview, and a summary of its key accounting data and financial performance for the reporting period 2.1 Company Information and Contact Details This section outlines the basic information of Minfeng Special Paper Co., Ltd., including its Chinese name, abbreviation, English name, legal representative, and contact details for the Board Secretary and Securities Affairs Representative | Indicator | Information | | :--- | :--- | | Company Chinese Name | 民丰特种纸股份有限公司 | | Company Chinese Abbreviation | 民丰特纸 | | Company English Name | MINFENG SPECIAL PAPER CO.,LTD. | | Company English Abbreviation | MFSP | | Legal Representative | Cao Jihua | | Board Secretary | Yao Minghuan | | Securities Affairs Representative | Yan Shuiming | | Contact Number | 0573-82812992 | | Email | dsh@mfspchina.net | 2.2 Overview of Basic Information Changes The company's registered address changed on March 7, 2023, from No. 70 Luli Street, Jiaxing City, Zhejiang Province, to No. 288 Yongkang Road, Shendang Town, Haiyan County, Jiaxing City, Zhejiang Province, with the office address also changing simultaneously from July 1, 2025 - The company's registered address changed on March 7, 2023, from No. 70 Luli Street, Jiaxing City, Zhejiang Province, to No. 288 Yongkang Road, Shendang Town, Haiyan County, Jiaxing City, Zhejiang Province[16] - The company's office address changed from No. 70 Luli Street, Jiaxing City, Zhejiang Province, to No. 288 Yongkang Road, Shendang Town, Haiyan County, Jiaxing City, Zhejiang Province, effective July 1, 2025[16] 2.3 Overview of Information Disclosure and Document Custody Location Changes The company designates "China Securities Journal," "Shanghai Securities News," and "Securities Times" as its information disclosure newspapers, with the semi-annual report published on www.sse.com.cn, and the report custody location is the company's Board Secretary Office, with no changes during the reporting period - The company designates "China Securities Journal," "Shanghai Securities News," and "Securities Times" as its information disclosure newspapers[18] - The semi-annual report is published on www.sse.com.cn, and the custody location is the company's Board Secretary Office[18] - There were no changes in information disclosure or document custody locations during the reporting period[18] 2.4 Company Stock Overview The company's A-shares are listed on the Shanghai Stock Exchange, with the stock abbreviation Minfeng Special Paper and stock code 600235 | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-shares | Shanghai Stock Exchange | Minfeng Special Paper | 600235 | G Special Paper | 2.5 Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue decreased by 23.21% year-on-year to CNY 601.45 million, and net profit attributable to shareholders significantly decreased by 68.88% to CNY 15.07 million, with net cash flow from operating activities also sharply declining by 86.20%, primarily due to reduced production and sales from machine shutdowns, and lower other income and interest income Key Accounting Data for H1 2025 | Key Accounting Data (Jan-Jun) | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 601,447,256.25 | 783,216,400.35 | -23.21 | | Total Profit | 15,117,614.02 | 48,432,324.85 | -68.79 | | Net Profit Attributable to Shareholders of Listed Company | 15,073,722.88 | 48,431,304.38 | -68.88 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 15,039,294.11 | 48,384,838.84 | -68.92 | | Net Cash Flow from Operating Activities | 16,459,948.51 | 119,296,378.25 | -86.20 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,509,672,592.79 | 1,500,570,969.91 | 0.61 | | Total Assets (Period-end) | 3,022,973,181.69 | 3,083,951,976.52 | -1.98 | Key Financial Indicators for H1 2025 | Key Financial Indicators (Jan-Jun) | Current Period | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.043 | 0.138 | -68.84 | | Diluted Earnings Per Share (CNY/share) | 0.043 | 0.138 | -68.84 | | Basic Earnings Per Share (Excluding Non-recurring Gains and Losses) (CNY/share) | 0.043 | 0.138 | -68.84 | | Weighted Average Return on Net Assets (%) | 1.00 | 3.29 | Decrease of 2.29 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains and Losses) (%) | 1.00 | 3.29 | Decrease of 2.29 percentage points | - The primary reasons for the decline in operating revenue and profit were the year-on-year decrease in production and sales due to the shutdown of PM20 and PM22 machines, the inclusion of accumulated VAT additional deductions from 2023 into other income in Q1 2024 which led to a decrease in other income this period, and increased financial expenses due to a year-on-year decrease in interest income this period[23] 2.6 Non-recurring Gains and Losses Items and Amounts The total non-recurring gains and losses for the reporting period amounted to CNY 34,428.77, primarily comprising other non-operating income and expenses, and other items defined as non-recurring gains and losses | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Other non-operating income and expenses apart from the above items | -5,699.53 | | Other profit and loss items conforming to the definition of non-recurring gains and losses | 40,128.30 | | Total | 34,428.77 | Management Discussion and Analysis This section offers an in-depth review of the company's industry, principal business operations, core competencies, and significant financial performance during the reporting period, alongside an assessment of potential risks and strategic initiatives 3.1 Industry and Principal Business Overview The company operates in the paper and paper products industry, with its principal business being the R&D, production, and sales of special paper products, including three major series: tobacco industry paper, transparent paper, and coated paper, holding a leading position in niche markets, while the overall paper industry faces overcapacity and intensified competition but shows improving operational trends - The company belongs to the paper and paper products manufacturing industry, classified under code C22[26] - The company's principal business involves the R&D, production, and sales of special paper products, primarily categorized into tobacco industry paper series, transparent paper series, and coated paper series[26] - The company holds a leading or first-tier market share in the tobacco industry paper, transparent paper, and beer label paper markets[28] - From January to June 2025, national machine-made paper and paperboard output totaled 79.332 million tons, a year-on-year increase of 3.2%[26] 3.2 Discussion and Analysis of Operations In the first half of 2025, the company actively addressed market challenges, ensured timely project commissioning, completed the full transfer of production operations to the Haiyan plant, and implemented organizational reforms, achieving progress in market value management, safety production, and project ramp-up despite year-on-year declines in revenue and net profit Operating Performance for H1 2025 | Indicator | Amount (CNY billion) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 6.01 | -23.21 | | Net Profit Attributable to Shareholders of Listed Company | 0.150737 | -68.88 | | Total Assets (Period-end) | 30.23 | -1.98 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 15.09 | 0.61 | | Asset-Liability Ratio | 50.06% | -2.49 percentage points | - The upgrade and technical transformation project for New PM8 and New PM20 achieved expected stable production capacity by the end of March 2025[29] - The paper machine section of the 70,000-ton/year special coated paper project underwent physical trial operation by the end of March 2025, and the coater section underwent linked trial operation by the end of April 2025, preliminarily meeting production conditions[29] - The company completed the full transfer of production operations from the Nanhu plant to the Haiyan plant and established an organizational structure of "six departments and two centers"[30] - The total cash dividend for 2024 accounted for 30.25% of the net profit attributable to shareholders for the same period, marking the best level in nearly a decade[31] - The company's average daily market capitalization increased by 15.04% year-on-year in 2025, outperforming the Shenwan Secondary (Paper) Index by 16.87 percentage points[31] - No major personal injury or fire accidents occurred during the reporting period, upholding the bottom line of safety production[32] 3.3 Analysis of Core Competencies During the Reporting Period The company's core competencies remained largely unchanged, primarily demonstrated through its technological advantages (pioneer in cigarette paper and tracing paper, high-tech enterprise), brand advantages (nearly a century of history, "China Time-Honored Brand"), equipment advantages (modern production lines), geographical advantages (Yangtze River Delta region), and system advantages (multiple management system certifications) - Technological Advantage: Minfeng pioneered cigarette paper and tracing paper in China and is recognized as a National High-tech Enterprise[34] - Brand Advantage: The company boasts nearly a century of history, enjoying a high reputation for its "Minfeng" trade name and "Ship Brand" trademark, and has received honors such as "China Time-Honored Brand"[34] - Equipment Advantage: The company operates 7 modern papermaking production lines and 1 coating production line, closely monitoring international advanced technologies[34] - Geographical Advantage: Located in the Yangtze River Delta region, the company benefits from dense scientific and technological innovation resources and a developed transportation network[34] - System Advantage: The company has obtained multiple system certifications, including Quality/Environmental/Occupational Health and Safety (QES) three-system certification and FSC® forest certification[35] 3.4 Key Operating Performance During the Reporting Period This section provides a detailed analysis of the company's key operating performance during the reporting period, including changes in financial statement items, asset and liability status, investment status, and major controlled and investee companies, noting significant decreases in operating revenue and net cash flow from operating activities, substantial increases in fixed assets and prepayments, and significant reductions in notes receivable and accounts receivable 3.4.1 Analysis of Principal Business The analysis of principal business indicates a year-on-year decrease in operating revenue and cost of sales, an increase in selling, general and administrative expenses, and financial expenses, a slight decrease in R&D expenses, a significant decline in net cash flow from operating activities, reduced outflow from investing activities, and a substantial decrease in net cash flow from financing activities Analysis of Changes in Financial Statement Items | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 601,447,256.25 | 783,216,400.35 | -23.21 | Reduced production and sales due to shutdown of some machines | | Operating Cost | 499,873,725.92 | 663,758,452.30 | -24.69 | Decreased sales volume | | Selling Expenses | 4,788,655.02 | 4,591,982.60 | 4.28 | Increased export sales volume, increased export sales agency fees | | Administrative Expenses | 55,485,733.50 | 51,725,336.00 | 7.27 | Depreciation of some idled machines included | | Financial Expenses | 9,227,769.93 | 5,126,301.89 | 80.01 | Decreased interest income | | R&D Expenses | 19,150,095.32 | 21,605,775.13 | -11.37 | Slight decrease in R&D investment | | Net Cash Flow from Operating Activities | 16,459,948.51 | 119,296,378.25 | -86.20 | Decreased cash received from sales of goods and rendering of services | | Net Cash Flow from Investing Activities | -70,034,849.81 | -343,012,801.84 | Not applicable | Decreased cash paid for acquisition of fixed assets | | Net Cash Flow from Financing Activities | 18,411,497.92 | 320,472,228.28 | -94.25 | Decreased cash received from borrowings and increased cash paid for debt repayment | 3.4.2 Analysis of Assets and Liabilities At the end of the reporting period, the company experienced significant decreases in monetary funds, notes receivable, financing receivables, and construction in progress, while prepayments, other current assets, and fixed assets substantially increased, and on the liability side, notes payable and contract liabilities decreased, while employee compensation payable increased Changes in Assets and Liabilities | Item Name | Current Period-end (CNY) | Share of Total Assets (%) | Prior Year-end (CNY) | Share of Total Assets (%) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 110,656,574.55 | 3.66 | 177,344,633.50 | 5.75 | -37.60 | Decrease in bank acceptance deposit | | Notes Receivable | 5,360,767.48 | 0.18 | 12,450,026.38 | 0.40 | -56.94 | Bank acceptance bills matured or transferred by finance company | | Financing Receivables | 92,216,999.36 | 3.05 | 192,620,593.20 | 6.25 | -52.13 | Decrease in bank acceptance bills | | Prepayments | 45,953,677.36 | 1.52 | 19,688,881.77 | 0.64 | 133.40 | Increase in purchase payments settled by prepayment | | Other Current Assets | 63,001,026.10 | 2.08 | 29,846,236.53 | 0.97 | 111.09 | Increase in input VAT to be deducted | | Fixed Assets | 1,401,848,873.55 | 46.37 | 883,442,981.29 | 28.65 | 58.68 | Construction in progress transferred to fixed assets | | Construction in Progress | 530,872,350.02 | 17.56 | 982,256,532.00 | 31.85 | -45.95 | Construction in progress transferred to fixed assets | | Long-term Deferred Expenses | 0.00 | 0.00 | 822,757.17 | 0.03 | -100.00 | Decrease in sewage discharge rights usage fees | | Other Non-current Assets | 12,832,462.00 | 0.42 | 55,004,793.84 | 1.78 | -76.67 | Decrease in prepaid engineering equipment costs | | Notes Payable | 0.00 | 0.00 | 2,000,000.00 | 0.06 | -100.00 | Bank acceptance bills matured and paid | | Contract Liabilities | 4,790,775.08 | 0.16 | 7,548,101.43 | 0.24 | -36.53 | Decrease in advance receipts | | Employee Compensation Payable | 6,224,977.27 | 0.21 | 3,314,594.16 | 0.11 | 87.81 | Increase in accrued employee compensation | - As of the end of the reporting period, restricted assets totaled CNY 4,391,000.03, including restricted time deposits, bank acceptance bill deposits, and frozen ETC funds[43] 3.4.3 Analysis of Investment Status During the reporting period, the company's long-term equity investments had a period-end balance of CNY 40.5693 million, primarily comprising equity investments in Zhejiang Minfeng Robert Paper Co., Ltd. and Zhejiang Viola Plastic Co., Ltd - During the reporting period, the company's long-term equity investments had a period-end balance of CNY 40.5693 million[44] - The primary equity investment targets are Zhejiang Minfeng Robert Paper Co., Ltd. and Zhejiang Viola Plastic Co., Ltd.[44] 3.4.4 Analysis of Major Controlled and Investee Companies The company's controlled subsidiary, Jiaxing Yanfeng Trading Co., Ltd., primarily engages in paper product sales, while investee companies include Zhejiang Minfeng Robert Paper Co., Ltd. (producing cigarette paper series, currently in liquidation) and Zhejiang Viola Plastic Co., Ltd. (producing and selling plastic products), with Zhejiang Viola Plastic Co., Ltd. achieving a net profit of CNY 0.3248 million and operating revenue of CNY 8.7207 million during the reporting period Overview of Major Controlled and Investee Companies | Company Name | Registered Capital | Shareholding (%) | Principal Business | | :--- | :--- | :--- | :--- | | Controlled Companies | | | | | Jiaxing Yanfeng Trading Co., Ltd. | CNY 20 million | 100% | Sales of paper products; sales of pulp; sales of chemical products; sales of coal and products; information consulting services | | Investee Companies | | | | | Zhejiang Minfeng Robert Paper Co., Ltd. | USD 12.1 million | 39% | Production of cigarette paper series and related paper types | | Zhejiang Viola Plastic Co., Ltd. | USD 1.22 million | 20% | Production and sales of plastic products, woven products, wood-plastic products, etc. | | Zhejiang Benkete Tipping Paper Co., Ltd. | USD 8.9 million | 5% | Production and operation of tipping paper and its series products | | Paradise Silicon Valley Venture Capital Group Co., Ltd. | CNY 1.2 billion | 5% | Equity investment, industrial investment, venture capital for high-tech enterprises and projects, etc. | | Zhejiang Chendao New Material Co., Ltd. | CNY 10 million | 5% | Development of chemical and plastic raw materials, import and export trade of goods and technologies | - The business term of Zhejiang Minfeng Robert Paper Co., Ltd. expired on June 7, 2020, and it is currently still in the liquidation process[45] Financial Data of Investee Companies | Name | Total Assets (CNY) | Total Liabilities (CNY) | Net Profit (CNY) | Operating Revenue (CNY) | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Minfeng Robert Paper Co., Ltd. | 97,837,221.47 | 86,268.56 | -27,570.27 | 0 | | Zhejiang Viola Plastic Co., Ltd. | 20,781,827.19 | 3,508,100.92 | 324,766.75 | 8,720,721.34 | 3.5 Other Disclosure Matters This section discloses potential policy, industry, and project risks faced by the company, and assesses the semi-annual implementation of the "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan for 2025, highlighting progress in focusing on principal business, emphasizing shareholder returns, strengthening information disclosure, and improving corporate governance 3.5.1 Potential Risks The company faces policy risks (fiscal and monetary policies, dual control of energy consumption), industry risks (weakening market demand, intensified competition, rising costs), and project risks (new project ramp-up time, market price uncertainty), which it plans to actively address through strengthened internal management, cost reduction and efficiency improvement, and energy conservation and emission reduction measures - Policy risks: Changes in national fiscal and monetary policies, dual control of energy consumption, and "carbon peak, carbon neutrality" targets will increase the company's investment and financing costs and environmental protection expenditures[46] - Industry risks: Weakening global market demand, overcapacity in some products, intensified market competition, and high uncertainty in commodity price fluctuations[46] - Project risks: Although the Haiyan plant project has been put into operation, it will take time to reach designed capacity, and uncertainties in product market, prices, and raw material prices may affect revenue and profitability[46] 3.5.2 Semi-Annual Assessment of the 2025 "Quality Improvement, Efficiency Enhancement, and Return Focus" Action Plan In the first half of the year, the company focused on its principal business, ensuring the preliminary commissioning of Phase I and Phase II projects on schedule to enhance market influence, prioritized shareholder returns with a 30.25% cash dividend ratio in 2024 and the approval of a market value management system, strengthened information disclosure quality and investor communication, adhered to standardized operations and improved corporate governance by implementing independent director reforms, promoted ESG system construction, and reinforced the responsibilities of "key minorities" to enhance their performance and risk awareness - Focus on Principal Business: In the first half, operating revenue reached CNY 601 million, and net profit attributable to the parent company was CNY 15.0737 million, both year-on-year decreases. Phase I and Phase II projects were preliminarily commissioned on schedule, which will enhance the company's industry leadership and market influence[48][49] - Emphasis on Shareholder Returns: The cash dividend ratio for 2024 reached 30.25%, the best in nearly a decade. The "Minfeng Special Paper Market Value Management System" was reviewed and approved, with the average daily market capitalization increasing by 15.04% year-on-year in 2025[50] - Strengthening Information Disclosure Quality: In the first half, 38 announcements were disclosed, 32 investor questions were answered via the SSE e-interaction platform, and the 2024 annual performance and cash dividend briefing was held[51] - Improving Corporate Governance: Actively implemented reforms to the independent director system, revised the "Articles of Association," abolished the Board of Supervisors, and strengthened the functions of the Audit Committee[52] - Promoting ESG System Construction: Published the 2024 Environmental Report and Social Responsibility Report, planned ESG system construction, and was awarded the 2025 ESG Outstanding Listed Company Award[53] - Strengthening "Key Minority" Responsibilities: Optimized management incentive and restraint mechanisms through indicator decomposition and strict assessment, and organized internal and external training to enhance performance capabilities and risk awareness[54][55] Corporate Governance, Environment, and Society This section details changes in the company's governance structure, outlines its environmental information disclosure practices, and reports on its contributions to poverty alleviation and rural revitalization efforts 4.1 Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - During the reporting period, the status of changes in the company's directors, supervisors, and senior management was "Not applicable," indicating no changes[57] 4.2 Profit Distribution or Capital Reserve Conversion Plan The company's proposed semi-annual profit distribution or capital reserve conversion plan is "None," meaning no distribution or conversion will be made - The company's proposed semi-annual profit distribution plan or capital reserve conversion to share capital plan is "None"[57] 4.3 Environmental Information Disclosure in Accordance with Law The company and its major subsidiaries (Nanhu plant and Haiyan plant) are included in the list of enterprises required to disclose environmental information by law, and their reports are publicly available through the Zhejiang Provincial Department of Ecology and Environment's enterprise environmental information disclosure system - The company has 2 entities included in the list of enterprises required to disclose environmental information by law: Minfeng Special Paper Co., Ltd. (Nanhu Plant) and Minfeng Special Paper Co., Ltd. (Haiyan Plant)[58] - Environmental information disclosure reports can be accessed through the Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[58][59] 4.4 Specifics of Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts In the first half of 2025, the company's Party Committee and its subordinate Party branches provided paired assistance to 13 disadvantaged households, distributing a total of CNY 6,916 in condolences and gifts through Spring Festival visits and educational support, while the company's Party Committee also provided CNY 8,000 to 10 disadvantaged Party members, and the labor union provided CNY 68,020 to 147 disadvantaged employees - In the first half of 2025, the company's Party Committee and its subordinate Party branches provided paired assistance to 13 disadvantaged households, offering condolences and gifts through visits to understand their needs[59] - A total of 13 home visits were made to paired disadvantaged families, distributing CNY 6,916 in condolences and gifts[60] - The company's Party Committee provided condolences to 10 disadvantaged Party members, totaling CNY 8,000[60] - The company's labor union provided condolences and gifts to 147 disadvantaged employees, totaling CNY 68,020[60] Significant Matters This section covers the company's fulfillment of commitments made by its controlling shareholder and provides details on significant related-party transactions during the reporting period 5.1 Fulfillment of Commitments Jiaxing Industrial Development Group Co., Ltd., the company's controlling shareholder, made several commitments regarding the listed company's independence, fund occupation, horizontal competition, and related-party transactions, which were strictly fulfilled during the reporting period without any breaches - Jiaxing Industrial Development Group Co., Ltd. committed to maintaining independence from the listed company in terms of assets, personnel, finance, organization, and business, not illegally occupying listed company funds, and strictly complying with relevant laws and regulations[62] - Jiaxing Industrial Development Group Co., Ltd. committed to resolving horizontal competition issues, ensuring that it and other enterprises it controls do not engage in businesses that compete with Minfeng Special Paper's principal business[62][63] - Jiaxing Industrial Development Group Co., Ltd. committed to avoiding and reducing related-party transactions, adhering to market fairness principles for unavoidable related-party transactions, and eliminating non-operating fund occupation and illegal guarantees[63][64] - All commitments were strictly fulfilled during the reporting period, with no instances of failure to perform in a timely manner[62][63][64] 5.2 Significant Related-Party Transactions The company engages in daily operating related-party transactions, such as purchasing packaging materials from Zhejiang Viola Plastic Co., Ltd., with a current period transaction amount of CNY 4.6956 million, which did not exceed the approved limit, and the company's estimated daily related-party transactions for 2025 have been disclosed in temporary announcements - The company purchased packaging materials from Zhejiang Viola Plastic Co., Ltd., with a current period transaction amount of CNY 4,695,609.38, within the approved transaction limit of CNY 7,500,000.00[66][67] - The company sold goods/provided services to Zhejiang Viola Plastic Co., Ltd. and Jiaxing Minfeng Group Co., Ltd., with current period transaction amounts of CNY 205,212.60 and CNY 96,608.18, respectively[67][68] - The estimated daily related-party transactions for 2025 have been disclosed in temporary announcements[66] Share Changes and Shareholder Information This section provides an overview of the company's share capital stability and detailed information on its shareholder structure, including the top ten shareholders 6.1 Share Capital Changes There were no changes in the company's total share capital or share structure during the reporting period - During the reporting period, there were no changes in the company's total share capital or share structure[70] 6.2 Shareholder Information As of the end of the reporting period, the company had 19,043 common shareholders, with Jiaxing Minfeng Group Co., Ltd. holding 36.29% as the controlling shareholder, and the top ten circulating shareholders being largely consistent with the top ten shareholders | Indicator | Number | | :--- | :--- | | Total number of common shareholders at period-end | 19,043 | | Total number of preferred shareholders with restored voting rights at period-end | 0 | Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-end | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Jiaxing Minfeng Group Co., Ltd. | 127,500,000 | 36.29 | State-owned Legal Person | | Xiao Shaojin | 4,140,600 | 1.18 | Domestic Natural Person | | Hu Zhiping | 3,651,200 | 1.04 | Domestic Natural Person | | Zhang Guoming | 3,000,000 | 0.85 | Domestic Natural Person | | BARCLAYS BANK PLC | 2,168,133 | 0.62 | Other | | Hu Liping | 2,062,200 | 0.59 | Domestic Natural Person | | China Construction Bank Corporation - Noah Multi-Strategy Stock Fund | 1,657,700 | 0.47 | Other | | Yao Yinong | 1,580,900 | 0.45 | Domestic Natural Person | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | 1,447,155 | 0.41 | Other | | Huang Yu | 1,435,900 | 0.41 | Domestic Natural Person | - There is no related-party relationship or concerted action between the company's controlling shareholder, Jiaxing Minfeng Group Co., Ltd., and the other top ten shareholders[74] Bond-Related Information This section confirms the absence of corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds for the company during the reporting period 7.1 Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The situation regarding corporate bonds (including enterprise bonds) and non-financial enterprise debt financing instruments is "Not applicable"[77] 7.2 Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - The situation regarding convertible corporate bonds is "Not applicable"[77] Financial Report This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxation, and other significant financial matters 8.1 Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5][78] 8.2 Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation at the end of the reporting period 8.2.1 Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 3.023 billion, a 1.98% decrease from the end of the previous year; consolidated total liabilities were CNY 1.513 billion, a 4.43% decrease; and total owners' equity attributable to the parent company was CNY 1.510 billion, a 0.61% increase Key Data from Consolidated Balance Sheet | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 3,022,973,181.69 | 3,083,951,976.52 | | Total Liabilities | 1,513,300,588.90 | 1,583,381,006.61 | | Total Owners' Equity Attributable to Parent Company | 1,509,672,592.79 | 1,500,570,969.91 | 8.2.2 Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were CNY 3.024 billion, a 2.09% decrease from the end of the previous year; total liabilities were CNY 1.514 billion, a 4.65% decrease; and total owners' equity was CNY 1.510 billion, a 0.60% increase Key Data from Parent Company Balance Sheet | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 3,024,265,919.61 | 3,089,079,877.56 | | Total Liabilities | 1,514,405,231.55 | 1,588,269,536.78 | | Total Owners' Equity | 1,509,860,688.06 | 1,500,810,340.78 | 8.2.3 Consolidated Income Statement In the first half of 2025, the company's consolidated total operating revenue was CNY 601.45 million, a 23.21% year-on-year decrease; consolidated total profit was CNY 15.1176 million, a 68.79% decrease; and consolidated net profit was CNY 15.0737 million, a 68.88% decrease Key Data from Consolidated Income Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 601,447,256.25 | 783,216,400.35 | | Total Operating Cost | 594,199,924.06 | 752,319,882.67 | | Total Profit | 15,117,614.02 | 48,432,324.85 | | Net Profit | 15,073,722.88 | 48,431,304.38 | | Net Profit Attributable to Parent Company Shareholders | 15,073,722.88 | 48,431,304.38 | | Basic Earnings Per Share (CNY/share) | 0.043 | 0.138 | | Diluted Earnings Per Share (CNY/share) | 0.043 | 0.138 | 8.2.4 Parent Company Income Statement In the first half of 2025, the parent company's operating revenue was CNY 601.45 million, a 23.70% year-on-year decrease; total profit was CNY 15.0651 million, a 68.40% decrease; and net profit was CNY 15.0224 million, a 68.50% decrease Key Data from Parent Company Income Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 601,447,256.25 | 787,970,852.98 | | Operating Profit | 15,070,795.59 | 47,683,465.35 | | Total Profit | 15,065,096.06 | 47,703,814.45 | | Net Profit | 15,022,447.28 | 47,703,814.45 | 8.2.5 Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was CNY 16.46 million, a significant year-on-year decrease of 86.20%; net cash flow from investing activities was -CNY 70.03 million, representing a reduced outflow; and net cash flow from financing activities was CNY 18.41 million, a substantial year-on-year decrease of 94.25% Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 16,459,948.51 | 119,296,378.25 | | Net Cash Flow from Investing Activities | -70,034,849.81 | -343,012,801.84 | | Net Cash Flow from Financing Activities | 18,411,497.92 | 320,472,228.28 | | Net Increase in Cash and Cash Equivalents | -35,188,058.95 | 96,760,714.94 | | Cash and Cash Equivalents at Period-end | 106,265,574.52 | 229,410,492.52 | 8.2.6 Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was CNY 16.35 million, a year-on-year decrease of 87.09%; net cash flow from investing activities was -CNY 70.03 million, representing a reduced outflow; and net cash flow from financing activities was CNY 18.41 million, a year-on-year decrease of 94.25% Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 16,346,027.80 | 126,464,057.33 | | Net Cash Flow from Investing Activities | -70,034,849.81 | -349,912,801.84 | | Net Cash Flow from Financing Activities | 18,411,497.92 | 320,472,228.28 | | Net Increase in Cash and Cash Equivalents | -35,301,979.66 | 97,028,394.02 | | Cash and Cash Equivalents at Period-end | 105,770,730.88 | 228,807,586.73 | 8.2.7 Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's consolidated total owners' equity increased by CNY 9.1016 million, primarily from a total comprehensive income of CNY 15.0737 million, while profit distribution decreased by CNY 5.9721 million Key Data from Consolidated Statement of Changes in Owners' Equity | Item | H1 2025 Period-end Balance (CNY) | H1 2024 Period-end Balance (CNY) | | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 351,300,000.00 | 351,300,000.00 | | Capital Reserve | 830,314,866.51 | 830,314,866.51 | | Surplus Reserve | 96,129,255.03 | 89,007,149.64 | | Retained Earnings | 231,928,471.25 | 222,187,474.24 | | Total Owners' Equity Attributable to Parent Company | 1,509,672,592.79 | 1,492,809,490.39 | | Total Owners' Equity | 1,509,672,592.79 | 1,492,809,490.39 | - The net change for the current period (decreases indicated by "-") was CNY 9,101,622.88, with total comprehensive income of CNY 15,073,722.88 and profit distribution of -CNY 5,972,100.00[101] 8.2.8 Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's total owners' equity increased by CNY 9.0503 million, primarily from a total comprehensive income of CNY 15.0224 million, while profit distribution decreased by CNY 5.9721 million Key Data from Parent Company Statement of Changes in Owners' Equity | Item | H1 2025 Period-end Balance (CNY) | H1 2024 Period-end Balance (CNY) | | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 351,300,000.00 | 351,300,000.00 | | Capital Reserve | 837,914,509.09 | 838,839,739.04 | | Surplus Reserve | 96,129,255.03 | 89,007,149.64 | | Retained Earnings | 224,516,923.94 | 214,879,942.65 | | Total Owners' Equity | 1,509,860,688.06 | 1,494,026,831.33 | - The net change for the current period (decreases indicated by "-") was CNY 9,050,347.28, with total comprehensive income of CNY 15,022,447.28 and profit distribution of -CNY 5,972,100.00[105] 8.3 Company Basic Information Minfeng Special Paper Co., Ltd., established in 1998 and formerly "Hefeng Paper Company" founded in 1923, was listed on the Shanghai Stock Exchange in 2000, with a registered capital of CNY 351.3 million, primarily engaged in papermaking and paper products, with a broad business scope covering cigarette paper production and sales, pulp manufacturing, equipment maintenance, and more - The company was established on November 12, 1998, with its predecessor, "Hefeng Paper Company," traceable back to 1923[108][109] - The company's shares were listed and traded on the Shanghai Stock Exchange on June 15, 2000[108][109] - The company's registered capital is CNY 351,300,000.00, with a total share capital of 351,300,000 shares[108] - The principal business is in the papermaking and paper products industry, including the production and sales of cigarette paper, manufacturing and sales of pulp, paper, and paper products, among others[111] 8.4 Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant disclosure regulations of the CSRC, with no significant doubts about the going concern assumption - The company prepares its financial statements on a going concern basis, in accordance with Accounting Standards for Business Enterprises and relevant regulations of the CSRC[112] - There are no matters or circumstances that would cast significant doubt on the going concern assumption for the 12 months from the end of the reporting period[113] 8.5 Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for financial instruments, inventories, fixed assets, construction in progress, intangible assets, and revenue recognition, ensuring the standardization and accuracy of financial statement preparation, with the company adhering to Accounting Standards for Business Enterprises, using a 12-month operating cycle, and with CNY as its functional currency - The company adheres to the requirements of Accounting Standards for Business Enterprises to truthfully and completely reflect its financial position[115] - The accounting year runs from January 1 to December 31 of the Gregorian calendar, with 12 months constituting an operating cycle[116][117] - The functional currency is Renminbi (CNY)[118] - The company has established specific accounting policies and estimates for transactions and matters such as impairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition[114] 8.6 Taxation The company's main taxes include VAT, property tax, land use tax, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax, benefiting from a 5% VAT additional deduction policy for advanced manufacturing enterprises and paying corporate income tax at a 15% rate as a high-tech enterprise, while its subsidiary Jiaxing Yanfeng Trading Co., Ltd. qualifies as a small-profit enterprise and enjoys corporate income tax benefits Major Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Value-added amount generated from sales of goods or provision of taxable services | Calculated at tax rates of 3%, 6%, 9%, 13%, etc. | | Property Tax | Calculated ad valorem at 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property | 1.2% | | Land Use Tax | Actual occupied land area | CNY 4.00/sqm, CNY 12.00/sqm | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Corporate Income Tax | Taxable Income | 15%, 20%, 25% | - The company meets the criteria for advanced manufacturing enterprises and is eligible for a 5% additional VAT deduction policy[230][231] - The company is recognized as a high-tech enterprise and pays corporate income tax at a 15% rate for the 2025 fiscal year[231] - Subsidiary Jiaxing Yanfeng Trading Co., Ltd. qualifies as a small-profit enterprise and enjoys corporate income tax preferential policies[231] 8.7 Notes to Consolidated Financial Statement Items This section provides detailed disclosures on specific items within the consolidated financial statements, including monetary funds, notes receivable, accounts receivable, inventories, fixed assets, construction in progress, long-term equity investments, short-term borrowings, accounts payable, employee compensation, operating revenue, and costs, along with explanations for their respective changes - Monetary funds at period-end totaled CNY 111 million, a 37.60% decrease from the beginning of the period, primarily due to a reduction in bank acceptance deposits[41][236] - Notes receivable at period-end totaled CNY 5.3608 million, a 56.94% decrease from the beginning of the period, mainly due to bank acceptance bills maturing or being transferred by the finance company[41][235] - Accounts receivable at period-end totaled CNY 187 million, a 2.90% increase from the beginning of the period, including CNY 11.2721 million for individually assessed impairment and CNY 13.2727 million for collectively assessed impairment[244][246] - Inventories at period-end totaled CNY 385 million, a 7.41% increase from the beginning of the period, comprising CNY 175 million in raw materials and CNY 200 million in finished goods[271] - Fixed assets at period-end had a book value of CNY 1.402 billion, a 58.68% increase from the beginning of the period, primarily due to the transfer of construction in progress to fixed assets[41][284] - Construction in progress at period-end had a book value of CNY 531 million, a 45.95% decrease from the beginning of the period, primarily due to the transfer of construction in progress to fixed assets[41][291] - Short-term borrowings at period-end totaled CNY 665 million, remaining largely consistent with the beginning of the period[310] - Accounts payable at period-end totaled CNY 210 million, a 24.30% decrease from the beginning of the period[315] - Operating revenue for the current period was CNY 601 million, and operating cost was CNY 500 million, representing year-on-year decreases of 23.21% and 24.69%, respectively[355] 8.8 Research and Development Expenses In the first half of 2025, the company's total R&D expenses amounted to CNY 19.1501 million, a year-on-year decrease of 11.37%, primarily allocated to material consumption and employee compensation, with all R&D expenditures expensed R&D Expenses by Nature of Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Materials Consumed | 12,686,035.72 | 15,519,911.09 | | Employee Compensation | 5,825,534.03 | 5,702,907.69 | | Other | 638,525.57 | 382,956.35 | | Total | 19,150,095.32 | 21,605,775.13 | | Of which: Expensed R&D Expenditures | 19,150,095.32 | 21,605,775.13 | | Capitalized R&D Expenditures | 0 | 0 | - Current period R&D expenses decreased by 11.37% year-on-year, primarily due to a slight reduction in R&D investment[37] 8.9 Changes in Consolidation Scope During the reporting period, there were no changes in the company's consolidation scope due to business combinations involving entities not under common control, business combinations involving entities under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, there were no changes in the company's consolidation scope[394] 8.10 Interests in Other Entities The company owns Jiaxing Yanfeng Trading Co., Ltd. as a wholly-owned subsidiary and holds equity interests in associates such as Zhejiang Minfeng Robert Paper Co., Ltd. (39% stake) and Zhejiang Viola Plastic Co., Ltd. (20% stake), with Zhejiang Minfeng Robert Paper Co., Ltd. currently undergoing liquidation Subsidiary Information | Subsidiary Name | Registered Capital (CNY 10k) | Shareholding (%) | Acquisition Method | | :--- | :--- | :--- | :--- | | Jiaxing Yanfeng Trading Co., Ltd. | 2,000 | 100.00 | Establishment | Information on Significant Associates | Associate Name | Shareholding (%) | Accounting Method | | :--- | :--- | :--- | | Zhejiang Minfeng Robert Paper Co., Ltd. | 39.00 | Equity method accounting | | Zhejiang Viola Plastic Co., Ltd. | 20.00 | Equity method accounting | - The business term of Zhejiang Minfeng Robert Paper Co., Ltd. expired on June 7, 2020, and it is currently still in the liquidation process[45] 8.11 Government Grants During the reporting period, the amount of government grants recognized in profit or loss was CNY 0, compared to CNY 1,500 in the prior period | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Related to Income | 0 | 1,500.00 | | Total | 0 | 1,500.00 | 8.12 Risks Related to Financial Instruments The company faces credit risk, market risk (foreign exchange risk, interest rate risk, other price risks), and liquidity risk, which it manages through diversified investments, credit assessment, and cash flow forecasting, with an asset-liability ratio of 50.06% at the end of the reporting period - The company faces credit risk, market risk (foreign exchange risk, interest rate risk, other price risks), and liquidity risk[403][404][405][406][407][408][413] - The company manages financial risks through diversified investments, credit risk concentration management, regular assessment of debtor creditworthiness, monitoring cash balances, and cash flow forecasting[404][408][413] - As of June 30, 2025, the company's asset-liability ratio was 50.06%, a decrease from 51.34% at the end of 2024[415] 8.13 Disclosure of Fair Value The company's total assets measured at fair value on a recurring basis amounted to CNY 156 million, primarily comprising financing receivables and other non-current financial assets measured at fair value through profit or loss Fair Value Measurement Items at Period-end | Item | Level 1 Fair Value Measurement (CNY) | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | :--- | | Financing Receivables | 92,216,999.36 | 0 | 0 | 92,216,999.36 | | Other Non-current Financial Assets | 63,563,695.27 | 0 | 0 | 63,563,695.27 | | Total Assets Measured at Fair Value on a Recurring Basis | 155,780,694.63 | 0 | 0 | 155,780,694.63 | 8.14 Related Parties and Related-Party Transactions The company's parent company is Jiaxing Minfeng Group Co., Ltd., holding a 36.29% stake, and the company engages in transactions such as purchasing and selling goods, providing services, and related-party guarantees with its subsidiaries, associates, and other related parties, having received multiple guarantees as a guaranteed party from Jiaxing Minfeng Group Co., Ltd. and Jiaxing Industrial Development Group Co., Ltd., among others, during the reporting period - The company's parent company is Jiaxing Minfeng Group Co., Ltd., with a shareholding and voting rights percentage of 36.29%[422] - The company purchased CNY 4.6956 million in packaging materials from Zhejiang Viola Plastic Co., Ltd. and sold CNY 0.2052 million in other products to it[427][428] - As a guaranteed party, the company received multiple guarantees from Jiaxing Minfeng Group Co., Ltd., Jiaxing Industrial Development Group Co., Ltd., and Jiaxing Industrial Assets Investment Group Co., Ltd., with a significant total guarantee amount, all of which remain unfulfilled[429][430] - Period-end amounts payable to related parties include CNY 3 million to Zhejiang Minfeng Robert Paper Co., Ltd. and CNY 1.4186 million to Zhejiang Viola Plastic Co., Ltd.[432] 8.15 Commitments and Contingencies As of the balance sheet date, the company had no significant contingencies requiring disclosure - As of the balance sheet date, the company had no significant contingencies requiring disclosure[436] 8.16 Events After the Balance Sheet Date The company had no significant non-adjusting events after the balance sheet date, and profit distribution was not applicable - There were no significant non-adjusting events after the balance sheet date[437] - Profit distribution status is not applicable[438] 8.17 Other Significant Matters The company's production and operation land (north of Luli Street) is leased until December 10, 2048, with land rent of CNY 1.4371 million accrued for 2025, remaining unpaid as of June 30, 2025 - The company's production and operation land (north of Luli Street) is used under a 50-year lease, from December 10, 1998, to December 10, 2048[440] - Land rent of CNY 1,437,060.52 was accrued for 2025, remaining unpaid as of June 30, 2025[440] 8.18 Notes to Parent Company Financial Statement Items This section provides detailed disclosures on specific items within the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income, along with explanations for their respective changes - The parent company's accounts receivable at period-end totaled CNY 187 million, including CNY 11.2721 million for individually assessed impairment and CNY 13.2727 million for collectively assessed impairment[444][446] - The parent company's other receivables at period-end totaled CNY 7.4295 million, including CNY 7.6107 million for deposits and guarantees, and CNY 2.4020 million for petty cash[454] - The parent company's long-term equity investments at period-end totaled CNY 60.5693 million, comprising CNY 20 million in investments in subsidiaries and CNY 40.5693 million in investments in associates and joint ventures[464] - The parent company's operating revenue for the current period was CNY 601 million, and operating cost was CNY 500 million, representing year-on-year decreases of 23.70% and 25.40%, respectively[468] - The parent company's investment income for the current period was CNY 5.0529 million, primarily including CNY 5 million in dividend income from other equity instrument investments held during the period[472][473] 8.19 Supplementary Information This section provides a detailed statement of non-recurring gains and losses for the current period, totaling CNY 34,428.77, along with key financial indicators such as return on net assets and earnings per share Details of Non-recurring Gains and Losses for the Current Period | Item | Amount (CNY) | | :--- | :--- | | Other non-operating income and expenses apart from the above items | -5,699.53 | | Other profit and loss items conforming to the definition of non-recurring gains and losses | 40,128.30 | | Total | 34,428.77 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (CNY) | Diluted Earnings Per Share (CNY) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 1.00 | 0.043 | 0.043 | | Net Profit Attributable to Common Shareholders of the Company (Excluding Non-recurring Gains and Losses) | 1.00 | 0.043 | 0.043 |