Cathay Biotech (SH:688065)2025-08-15 13:50markdown Item I. [Definitions](index=4&type=section&id=Item%20I.%20Definitions) This chapter defines professional terms, company entity abbreviations, industry terms, and technical terms used in the report, providing a foundation for understanding the report content Item II. [Company Profile and Key Financial Indicators](index=7&type=section&id=Item%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's fundamental information and key financial performance, highlighting double-digit revenue and net profit growth, significant asset expansion due to private placement, and a decrease in operating cash flow I. [Basic Company Information](index=7&type=section&id=I.%20Basic%20Company%20Information) This chapter provides the company's basic business registration information, including Chinese and English names, legal representative, registered and office addresses, website, and contact details Basic Company Information Overview | Item | Information | | :--- | :--- | | **Chinese Name** | 上海凯赛生物技术股份有限公司 | | **Chinese Abbreviation** | 凯赛生物 | | **Stock Code** | 688065 | | **Listing Board** | 上海证券交易所科创板 | | **Legal Representative** | XIUCAI LIU(刘修才) | | **Registered Address** | 中国（上海）自由贸易试验区蔡伦路1690号5幢4楼 | | **Office Address** | 上海市闵行区绿洲环路396弄11号楼 | VI. [Key Accounting Data and Financial Indicators](index=9&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company achieved double-digit growth in operating revenue and net profit, primarily driven by increased sales of long-chain dibasic acid products; total assets and net assets significantly grew due to a 5.915 billion yuan private placement, while net cash flow from operating activities decreased Key Financial Performance Indicators | Key Financial Indicator | Current Period (Jan-Jun) (billion yuan) | Prior Period (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1.671 | 1.444 | 15.68% | | **Net Profit Attributable to Shareholders of Listed Company** | 0.309 | 0.247 | 24.74% | | **Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items)** | 0.296 | 0.240 | 23.67% | | **Net Cash Flow from Operating Activities** | 0.339 | 0.435 | -22.08% | | **Basic Earnings Per Share (yuan/share)** | 0.47 | 0.42 | 11.90% | | **R&D Investment as % of Operating Revenue (%)** | 7.37% | 6.93% | 0.44 percentage points | Key Balance Sheet Indicators | Asset and Liability Indicator | End of Current Period (billion yuan) | End of Prior Year (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | 23.821 | 19.021 | 25.23% | | **Net Assets Attributable to Shareholders of Listed Company** | 17.453 | 11.507 | 51.67% | - Performance growth was primarily driven by the continuous increase in sales volume of long-chain dibasic acid products, leading to higher sales revenue and gross profit. The significant increase in asset scale was mainly due to the completion of a private placement of A-shares during the reporting period, raising net proceeds of **5.915 billion yuan**[25](index=25&type=chunk) Non-recurring Gains and Losses Items | Non-recurring Item | Amount (yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 5,194,901.42 | | Government Grants | 8,514,558.81 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities | 2,251,132.80 | | Other Non-operating Income/Expenses | -3,651,967.36 | | **Total** | **12,214,396.82** | Item III. [Management Discussion and Analysis](index=11&type=section&id=Item%20III.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's industry position, operational performance, core competencies, and risk factors, highlighting its leadership in bio-based materials, strong financial growth, strategic partnerships, and key operational changes I. [Description of Industry and Main Business During the Reporting Period](index=11&type=section&id=I.%20Description%20of%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company is a global leader in bio-based new materials, leveraging synthetic biology for R&D, production, and sales, with core products including long-chain dibasic acids, bio-based pentanediamine, and bio-based polyamides, expanding into composites and bio-based piperidine, benefiting from national strategic support and carbon neutrality goals Main Products Overview | Main Product | Annual Capacity (thousand tons) | Application Areas | | :--- | :--- | :--- | | **Series of Bio-based Long-Chain Dibasic Acids (DC10-DC18)** | 115 | Long-chain nylon, plasticizers, lubricants, fragrances, etc. | | **Bio-based Pentanediamine** | 50 | Raw material for bio-based polyamide, epoxy curing agents, isocyanates, etc. | | **Series of Bio-based Polyamides** | 100 | Textiles (Tyrelon®), engineering materials (ECOPENT®), automotive, electronics, etc. | | **Bio-based Continuous Fiber Thermoplastic Composites** | - | New energy (battery casings, PV frames), automotive structural parts, transportation, etc. | | **Bio-based Piperidine** | - | Pharmaceuticals, pesticides, new materials, etc. | - The company's bio-manufacturing industry is designated by the state as a strategic emerging and future industry, receiving extensive policy support, including the '14th Five-Year Plan for Bioeconomy Development' and the 2025 government work report's mention of fostering future industries, indicating broad development prospects[39](index=39&type=chunk)[40](index=40&type=chunk)[64](index=64&type=chunk) - The company dominates the global market in bio-based long-chain dibasic acids (DC11-DC18), with increasing capacity utilization and market share for bio-based sebacic acid projects, and has achieved the world's first large-scale production of odd-carbon diamine (pentanediamine)[58](index=58&type=chunk) II. [Discussion and Analysis of Operations](index=17&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company's operations continued to improve, with operating revenue up **15.68%** and net profit attributable to parent up **24.74%**; R&D investment increased by **23.13%**, achieving significant progress across multiple projects; a private placement raised **5.915 billion yuan** from China Merchants Group, initiating comprehensive collaboration in bio-based new materials and fostering an industrial ecosystem, while actively promoting commercial applications of bio-based polyamides and composites with downstream clients Key Financial Performance Summary | Financial Indicator | Current Period (billion yuan) | YoY Growth (%) | | :--- | :--- | :--- | | **Operating Revenue** | 1.671 | 15.68% | | **Net Profit Attributable to Parent** | 0.309 | 24.74% | | **Net Profit Attributable to Parent (Excluding Non-recurring Items)** | 0.296 | 23.67% | - The company's R&D investment continued to increase, with **0.123 billion yuan** invested in H1 2025, a **23.13%** YoY increase, accounting for **7.37%** of revenue, achieving significant progress in green dibasic acids, bio-based piperidine, and bio-based polyamide composites[66](index=66&type=chunk) - The company introduced China Merchants Group through a private placement, raising **5.915 billion yuan**, with Shanghai Yaoxiu becoming the controlling shareholder; both parties have initiated comprehensive cooperation and signed a tripartite strategic agreement with Hefei Municipal Government to build a synthetic biomaterials industrial cluster[68](index=68&type=chunk) III. [Analysis of Core Competencies During the Reporting Period](index=18&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies span technology, industrialization experience, full industry chain, cost efficiency, green production, and business layout; it possesses globally leading synthetic biology technology with **516 patents** and a complete value chain from monomers to polymers and composites, further strengthening its industry leadership through the strategic partnership with China Merchants Group - The company possesses a complete industry chain from polyamide monomers (long-chain dibasic acid/pentanediamine) to polyamides and then to composite materials, with independent control over core raw materials, ensuring supply stability and cost advantages[74](index=74&type=chunk)[75](index=75&type=chunk) - The company holds a globally leading technological position, possessing **516 patents** as of the end of the reporting period, including **400 invention patents**, with R&D teams across biology, chemistry, materials, and engineering fields[71](index=71&type=chunk) - The company introduced China Merchants Group as a strategic investor, raising **5.915 billion yuan**, with both parties committing to deep collaboration to develop bio-based polyamides and their composites as foundational materials for the dual-carbon era, also partnering with Hefei Municipal Government and China Merchants Venture to build a synthetic biomaterials industrial cluster[77](index=77&type=chunk)[78](index=78&type=chunk) R&D Investment Overview | R&D Investment | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | **Expensed R&D Investment (yuan)** | 123,198,537.35 | 100,053,981.57 | 23.13 | | **Total R&D Investment as % of Operating Revenue (%)** | 7.37 | 6.93 | 0.44 percentage points | IV. [Risk Factors](index=26&type=section&id=IV.%20Risk%20Factors) The company faces core risks including talent loss, core technology leakage, and R&D obsolescence; operational risks involve raw material price fluctuations, underperforming new projects and product launches, and safety/environmental compliance; financial risks include accounts receivable impairment, inventory write-downs, exchange rate volatility, and increased depreciation from new fixed assets; macroeconomic, industrial policy, and international trade changes also pose potential risks - **Core Competency Risks**: Include loss of technical personnel, leakage of core technologies, and the risk of R&D lagging due to industry technological innovation[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) - **Operational Risks**: Include fluctuations in raw material (alkanes, corn) prices, slower-than-expected construction or production ramp-up of new projects (e.g., **500 thousand tons** of pentanediamine and **900 thousand tons** of polyamide), and slower-than-anticipated industrialization and promotion of bio-based new materials leading to unabsorbed capacity[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - **Financial Risks**: Include bad debts from accounts receivable, inventory write-downs, RMB exchange rate fluctuations, gross margin volatility, and the risk of performance decline due to significant increases in depreciation after construction-in-progress projects are capitalized[106](index=106&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk) - **Macroeconomic Environment Risks**: The company has a high proportion of export business, facing risks from import/export policies such as tariffs and changes in the international trade environment; the report notes that while the US imposed additional tariffs on Chinese goods in 2025, the company's main export to the US, long-chain dibasic acid, is on the tariff exemption list, resulting in minimal short-term impact[116](index=116&type=chunk)[117](index=117&type=chunk) V. [Key Operating Conditions During the Reporting Period](index=30&type=section&id=V.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) This chapter analyzes changes in financial statement items, revealing shifts in the company's operating conditions; during the period, revenue and costs grew in tandem, while finance expenses significantly decreased due to substantial interest income from raised funds; cash outflow from investing activities notably increased for structured deposits, and cash inflow from financing activities surged due to a **5.915 billion yuan** private placement, leading to major changes in asset-liability structure with significant increases in monetary funds and financial assets at fair value through profit or loss, and a substantial reduction in short-term borrowings Key Financial Statement Item Changes | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,670,767,942.21 | 1,444,292,958.19 | 15.68 | 业务增长 | | **Finance Expenses** | -83,715,979.60 | -71,010,724.91 | 不适用 | 募集资金到账，利息收入增加 | | **Net Cash Flow from Investing Activities** | -1,473,632,247.29 | -534,671,303.37 | 不适用 | 使用闲置募集资金购买结构性存款 | | **Net Cash Flow from Financing Activities** | 4,636,232,957.76 | -293,516,578.98 | 不适用 | 完成定向增发，募集资金到账 | Key Asset and Liability Item Changes | Asset/Liability Item | Amount at End of Current Period (million yuan) | % of Total Assets | Change from Prior Year-End (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | **Monetary Funds** | 872.03 | 36.61 | 63.09 | 定增募集资金到账 | | **Financial Assets at Fair Value Through Profit or Loss** | 110.26 | 4.63 | 234,904.58 | 使用闲置募集资金购买结构性存款 | | **Short-term Borrowings** | 5.04 | 0.21 | -95.96 | 使用募集资金偿还短期借款 | - Among the company's main controlled subsidiaries, Cathay (Jinxiang), Cathay (Wusu) Technology, and Cathay (Taiyuan) Technology were profitable during the reporting period, while Cathay (Wusu) Materials and Cathay (Taiyuan) Materials incurred losses[137](index=137&type=chunk)[138](index=138&type=chunk) Item IV. [Corporate Governance, Environment, and Society](index=36&type=section&id=Item%20IV.%20Corporate%20Governance,%20Environment,%20and%20Society) This section details changes in the company's senior management and board, confirms no semi-annual profit distribution plan, and outlines environmental information disclosure compliance for the company and its key subsidiaries I. [Changes in the Company's Directors, Supervisors, Senior Management, and Core Technical Personnel](index=36&type=section&id=I.%20Changes%20in%20the%20Company's%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) During the reporting period, the company appointed a new Vice President and Chief Financial Officer, and added two non-independent directors to optimize its management team structure and meet development needs - In April 2025, the company appointed Mr. Zeng Yuan as Vice President and Ms. Yang Wenying as Chief Financial Officer[142](index=142&type=chunk) - At the shareholders' meeting in May 2025, Mr. Deng Weidong and Mr. Lu Yiyang were elected as non-independent directors of the company's second board of directors[143](index=143&type=chunk) II. [Profit Distribution or Capital Reserve to Share Capitalization Plan](index=36&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capitalization%20Plan) The company has no profit distribution or capital reserve to share capitalization plan for the first half of 2025 - The company's proposed semi-annual profit distribution plan and capital reserve to share capitalization plan are 'No'[144](index=144&type=chunk) IV. [Environmental Information of Listed Companies and Their Main Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=37&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Main%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company and its four main subsidiaries, Cathay (Jinxiang), Cathay (Wusu) Biomaterials, Cathay (Wusu) Biotechnology, and Cathay (Taiyuan) Biomaterials, are all included in the list of enterprises required to disclose environmental information by law and have complied with disclosure requirements - A total of **4** of the company's entities are included in the list of enterprises required to disclose environmental information by law, with relevant reports available for inquiry on designated official systems[146](index=146&type=chunk) Item V. [Significant Matters](index=38&type=section&id=Item%20V.%20Significant%20Matters) This section covers the company's fulfillment of commitments, ongoing significant litigation, progress in utilizing raised funds, including project delays, and the strategic importance of the recent private placement and partnership with China Merchants Group I. [Fulfillment of Commitments](index=38&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, the company and related parties strictly fulfilled all commitments, including Shanghai Yaoxiu's pledge to lock up newly issued shares for **60 months** from the issuance completion date, and initial public offering shareholders like CIB and the actual controller also complied with share reduction commitments - Acquirer Shanghai Yaoxiu committed that the newly subscribed shares will be locked up for **60 months** from March 31, 2025, until their release on March 30, 2030[149](index=149&type=chunk)[157](index=157&type=chunk) - China Merchants Group committed that its limited partnership interest in Shanghai Yaoxiu will not be transferred externally within **60 months** from the completion date of this non-public offering[157](index=157&type=chunk) VII. [Significant Litigation and Arbitration Matters](index=48&type=section&id=VII.%20Significant%20Litigation%20and%20Arbitration%20Matters) The company is involved in two significant trade secret infringement lawsuits as the plaintiff against Shandong Hanlin and its affiliates, with cases involving **78.35 million yuan** and **0.502 billion yuan** respectively, both currently under trial with no judgments yet rendered Litigation Summary | Cause of Action | Defendant | Amount Involved (yuan) | Case Progress | | :--- | :--- | :--- | :--- | | Trade Secret Infringement | Hanlin, Cao Wubo, etc. | 78,350,000.00 | Second instance trial in progress | | Trade Secret Infringement | Hanlin, Laiyang Shanhe, etc. | 501,898,875.69 | First instance trial in progress | XII. [Explanation of Progress in Use of Raised Funds](index=54&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) During the reporting period, proceeds from both the initial public offering and private placement were utilized as planned; IPO funds' cumulative investment progress exceeded **100%** with some projects concluded, while the **5.915 billion yuan** from the private placement was almost entirely used for working capital, and the 'Annual Production of **500 thousand tons** Bio-based Pentanediamine and **900 thousand tons** Bio-based Polyamide Project' completion date was extended to December 31, 2025, due to park infrastructure construction and other factors Summary of Raised Funds Utilization | Source of Raised Funds | Net Proceeds (million yuan) | Total Cumulative Investment (million yuan) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | | **Initial Public Offering** | 5,279.99 | 5,448.19 | 103.19 | | **Private Placement** | 5,914.73 | 5,920.80 | 100.10 | - The 'Annual Production of **500 thousand tons** Bio-based Pentanediamine and **900 thousand tons** Bio-based Polyamide Project' completion date was extended from December 31, 2024, to December 31, 2025, due to the construction of supporting infrastructure in the industrial park and the process of customer demand release[171](index=171&type=chunk) XIII. [Explanation of Other Significant Matters](index=58&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The most significant event during the reporting period was the company's successful A-share issuance to Shanghai Yaoxiu, raising funds and introducing China Merchants Group as a strategic partner, aiming to deepen collaboration in transportation, logistics, new energy, and high-end manufacturing to jointly advance bio-based polyamides and composites, fostering green new productive forces - The company's issuance of **137,911,755** A-shares to Shanghai Yaoxiu has been registered, leading to the supplementary election of Mr. Deng Weidong and Mr. Lu Yiyang from the China Merchants Group as non-independent directors[176](index=176&type=chunk)[526](index=526&type=chunk) - The company and China Merchants Group will collaborate deeply in transportation, logistics, real estate, new energy, and high-end manufacturing, striving to develop bio-based polyamides and their composites as foundational bio-based materials for the dual-carbon era[177](index=177&type=chunk)[527](index=527&type=chunk) Item VI. [Share Changes and Shareholder Information](index=60&type=section&id=Item%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details the increase in the company's total share capital due to a private placement, resulting in a new controlling shareholder and changes in the top ten shareholder structure I. [Changes in Share Capital](index=60&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital increased due to a private placement of A-shares, with total shares rising from **583 million** to **721 million**, adding **138 million** restricted shares - On March 31, 2025, the company completed a private placement of A-shares, adding **137,911,755** shares, all of which are restricted shares[181](index=181&type=chunk) Share Capital Changes | Share Class | Before This Change | Increase/Decrease in This Change | After This Change | | :--- | :--- | :--- | :--- | | **Restricted Shares** | 0 | +137,911,755 | 137,911,755 | | **Unrestricted Tradable Shares** | 583,378,039 | 0 | 583,378,039 | | **Total Share Capital** | **583,378,039** | **+137,911,755** | **721,289,794** | II. [Shareholder Information](index=61&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **11,714** shareholders; among the top ten, Shanghai Yaoxiu Biotechnology Partnership (Limited Partnership) became the largest and controlling shareholder with a **35.29%** stake, followed by Shanxi Lu'an Mining Group and Cathay Industrial Biotech Ltd. as the second and third largest shareholders - As of the end of the reporting period, the company had a total of **11,714** common shareholders[184](index=184&type=chunk) Shareholder Details | Shareholder Name | Number of Shares Held | Proportion (%) | Nature of Shares | | :--- | :--- | :--- | :--- | | **Shanghai Yaoxiu Biotechnology Partnership (Limited Partnership)** | 254,567,395 | 35.29 | Other | | **Shanxi Lu'an Mining (Group) Co., Ltd.** | 52,007,550 | 7.21 | State-owned Legal Entity | | **Cathay Industrial Biotech Ltd.** | 48,543,681 | 6.73 | Foreign Legal Entity | | **Shanxi Science and Technology Innovation City Investment and Development Co., Ltd.** | 40,139,958 | 5.57 | State-owned Legal Entity | | **HBM Healthcare Investments (Cayman) Ltd.** | 35,621,436 | 4.94 | Foreign Legal Entity | - The largest shareholder, Shanghai Yaoxiu, and the third largest shareholder, Cathay Industrial Biotech Ltd., are both controlled by the family of the company's actual controller, Liu Xiucai[187](index=187&type=chunk) Item VII. [Bond-Related Information](index=68&type=section&id=Item%20VII.%20Bond-Related%20Information) This section confirms that the company had no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period I. [Corporate Bonds and Other Debt Instruments](index=68&type=section&id=I.%20Corporate%20Bonds%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no outstanding corporate bonds, enterprise bonds, or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[198](index=198&type=chunk) II. [Convertible Corporate Bonds](index=68&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[198](index=198&type=chunk) Item VIII. [Financial Report](index=69&type=section&id=Item%20VIII.%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements, including detailed notes on key items such as significant increases in monetary funds and owners' equity due to private placement, and the status of major construction-in-progress projects II. [Financial Statements](index=69&type=section&id=II.%20Financial%20Statements) This chapter presents the company's unaudited consolidated and parent company financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, showing significant growth in total assets and owners' equity due to a private placement, steady increase in operating revenue, and year-on-year net profit growth Key Consolidated Income Statement Items (yuan) | Key Consolidated Income Statement Items (yuan) | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | **Total Operating Revenue** | 1,670,767,942.21 | 1,444,292,958.19 | | **Total Operating Costs** | 1,283,596,878.98 | 1,153,083,688.62 | | **Total Profit** | 342,112,439.58 | 280,867,987.80 | | **Net Profit** | 284,191,771.38 | 244,107,412.58 | | **Net Profit Attributable to Parent Company Shareholders** | 308,667,050.28 | 247,445,607.49 | Key Consolidated Balance Sheet Items (yuan) | Key Consolidated Balance Sheet Items (yuan) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | 23,821,182,667.75 | 19,021,477,349.64 | | **Total Liabilities** | 2,746,393,442.69 | 3,920,405,139.91 | | **Total Owners' Equity Attributable to Parent Company** | 17,452,567,422.38 | 11,507,005,495.25 | | **Total Owners' Equity** | 21,074,789,225.06 | 15,101,072,209.73 | Key Consolidated Cash Flow Statement Items (yuan) | Key Consolidated Cash Flow Statement Items (yuan) | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 339,313,855.32 | 435,458,412.19 | | **Net Cash Flow from Investing Activities** | -1,473,632,247.29 | -534,671,303.37 | | **Net Cash Flow from Financing Activities** | 4,636,232,957.76 | -293,516,578.98 | | **Net Increase in Cash and Cash Equivalents** | 3,497,809,332.12 | -382,002,493.36 | VII. [Notes to Consolidated Financial Statements](index=107&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) This chapter provides detailed explanations for key items in the consolidated financial statements; period-end monetary funds significantly increased to **8.72 billion yuan** due to private placement proceeds, financial assets at fair value through profit or loss rose to **1.10 billion yuan** from structured deposits, and construction-in-progress balance reached **6.15 billion yuan** for two major projects; short-term borrowings decreased by **95.96%** due to repayment with raised funds, while share capital and capital reserves significantly increased from the private placement - Period-end monetary funds totaled **8.720 billion yuan**, a **63.09%** increase from the beginning of the period, primarily due to the receipt of private placement proceeds[128](index=128&type=chunk)[323](index=323&type=chunk) - Period-end construction-in-progress book value was **6.147 billion yuan**, mainly comprising the 'Annual Production of **2.4 million tons** Corn Deep Processing' project and the 'Annual Production of **500 thousand tons** Bio-based Pentanediamine and **900 thousand tons** Bio-based Polyamide' project[381](index=381&type=chunk)[383](index=383&type=chunk) - Following the completion of a private placement of **138 million** A-shares, the company's share capital increased to **721 million** shares, and capital reserves (share premium) increased by **5.777 billion yuan**[425](index=425&type=chunk)[428](index=428&type=chunk)