大业股份(603278) - 2025 Q2 - 季度财报

Part I Definitions This chapter defines key terms used in the report, ensuring clarity and accuracy of the content Definitions of Common Terms This chapter defines key terms used in the report, ensuring clarity and accuracy of the content - The reporting period is from January 1, 2025, to June 30, 2025[15] - The Company, Daye Co., Ltd. all refer to Shandong Daye Co., Ltd.[15] Part II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, key accounting data, and financial performance indicators for the reporting period Company Information This section provides the company's basic registration information, including names and legal representative Basic Company Information | Indicator | Content | | :--- | :--- | | Chinese Name | 山东大业股份有限公司 | | Chinese Abbreviation | 大业股份 | | Foreign Name | Shandong Daye Co., Ltd. | | Legal Representative | 窦勇 | Contact Person and Information This section lists detailed contact information for the Board Secretary and Securities Affairs Representative for stakeholder communication Company Contact Information | Position | Name | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | 牛海平 | 0536-6528805 | 0536-6112898 | helongnhp@126.com | | Securities Affairs Representative | 张岚 | 0536-6528805 | 0536-6112898 | zqb@sddaye.com | Brief Introduction to Changes in Basic Information The company's registered and office addresses have remained unchanged historically - The company's registered and office addresses have no historical changes[13] Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section specifies designated media and website for timely information disclosure to investors - The company's selected information disclosure newspapers include Shanghai Securities News, China Securities Journal, Securities Daily, and Securities Times[14] - The website address for publishing the semi-annual report is http://www.sse.com.cn/[14](index=14&type=chunk) Brief Introduction to Company Shares This section provides basic information on the company's shares, including type, exchange, abbreviation, and code Brief Introduction to Company Shares | Share Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | 大业股份 | 603278 | -- | Company's Key Accounting Data and Financial Indicators Operating revenue decreased by 4.19%, but net profit attributable to shareholders turned profitable, enhancing profitability, while total assets increased by 5.32% and net assets slightly decreased Key Accounting Data (January-June 2025) | Indicator | Current Period (Jan-Jun) (yuan) | Prior Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,521,267,698.85 | 2,631,397,559.15 | -4.19 | | Total Profit | 43,738,937.26 | -38,150,362.87 | Not Applicable | | Net Profit Attributable to Shareholders | 42,397,855.44 | -24,549,620.85 | Not Applicable | | Net Profit Attributable to Shareholders After Non-Recurring Items | 25,623,911.38 | -32,015,938.45 | Not Applicable | | Net Cash Flow from Operating Activities | 132,692,844.77 | 195,403,025.60 | -32.09 | | End of Current Period | | | | | Net Assets Attributable to Shareholders | 2,036,964,407.45 | 2,101,690,426.07 | -3.08 | | Total Assets | 8,109,736,407.63 | 7,699,799,836.44 | 5.32 | Key Financial Indicators (January-June 2025) | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.12 | -0.07 | Not Applicable | | Diluted Earnings Per Share (yuan/share) | 0.12 | -0.07 | Not Applicable | | Basic EPS After Non-Recurring Items (yuan/share) | 0.07 | -0.09 | Not Applicable | | Weighted Average ROE (%) | 2.00 | -1.07 | Increased by 3.07 percentage points | | Weighted Average ROE After Non-Recurring Items (%) | 1.21 | -1.40 | Increased by 2.61 percentage points | - The company achieved a net profit attributable to parent company shareholders of 42.40 million yuan and a net profit after deducting non-recurring gains and losses of 25.62 million yuan, turning losses into profits compared to the same period last year[19] - Improved profitability is primarily due to core technological advantages, increased market expansion, higher product sales, and effective control over raw material procurement, production, and transportation costs[19] Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses, totaling 16.77 million yuan, primarily from asset disposal, government subsidies, and financial asset fair value changes Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Item | Amount (yuan) | | :--- | :--- | | Disposal Gains/Losses of Non-Current Assets | 2,493,903.69 | | Government Subsidies Recognized in Current Profit/Loss | 13,230,507.89 | | Fair Value Changes and Disposal Gains/Losses of Financial Assets and Liabilities Held by Non-Financial Enterprises | 3,373,799.01 | | Debt Restructuring Gains/Losses | 632,595.23 | | Other Non-Operating Income and Expenses | -2,250,298.26 | | Less: Income Tax Impact | 403,771.05 | | Minority Interest Impact (After Tax) | 302,792.45 | | Total | 16,773,944.06 | Part III Management Discussion and Analysis This section provides management's perspective on the company's operations, industry, core competencies, and key financial performance during the reporting period Explanation of the Company's Industry and Main Business During the Reporting Period The company's main business is R&D, production, and sales of tire skeleton materials, holding leading industry positions, with the sector stabilizing and market share increasing despite fierce competition - The company's main business is the R&D, production, and sales of bead wire, steel cord, and hose wire, primarily used in various tire products such as passenger car tires, truck tires, engineering tires, and aircraft tires[23] - The company is currently the largest bead wire manufacturer in China, with well-known domestic and international tire manufacturers such as Zhongce Rubber, Linglong Tire, Michelin, and Bridgestone as its main customers[23] - In the first half of 2025, driven by the development of the automotive market, downstream tire industry demand was released, and the rubber skeleton material industry showed signs of stabilization and recovery, with improved industry profitability[25] Main Business The company specializes in R&D, production, and sales of tire skeleton materials, leading the domestic bead wire sector with global partnerships - The company's main business has not undergone significant changes since its establishment, with primary products being bead wire, steel cord, and hose wire[23] - The company is the largest bead wire manufacturer in China, possessing outstanding technical R&D capabilities and manufacturing process expertise[23] - Key customers include well-known domestic and international tire manufacturers such as Zhongce Rubber, Linglong Tire, Michelin, Bridgestone, and Goodyear, with market share increasing year by year[23] Main Business Model The company uses a centralized procurement, make-to-order production model with direct sales, ensuring quality and stable customer relations - Procurement Model: Main raw materials (wire rod) and auxiliary materials are centrally procured by the supply department, adhering to standardized procurement procedures and supplier audit systems[23][24] - Production Model: Adopts a "make-to-order" production model, where the sales department formulates production plans based on customer orders, the production department arranges production considering inventory and capacity, and the technical department provides guidance[24] - Sales Model: Primarily direct sales, with a sales department and an overseas business department, mainly targeting well-known domestic and international tire companies; inclusion in the supplier list requires an assessment period of approximately three years[25] Industry Overview The rubber skeleton material industry stabilized in H1 2025, with bead wire output up 6.07%, while steel cord declined, as the downstream tire sector grew and Chinese firms gained global market share - In the first half of 2025, statistics from the China Rubber Industry Association's Skeleton Material Professional Committee showed bead wire output of 586,700 tons, a year-on-year increase of 6.07%; steel cord output of 1.6167 million tons, a year-on-year decrease of 1.55%; and hose wire output of 177,400 tons, a year-on-year increase of 0.66%[25] - With the rapid growth in China's new energy vehicle sales and the increasing market share of domestic brands, downstream tire industry demand continues to drive steady growth in bead wire[26] - The skeleton material industry has entered a mature phase, with intensified market competition; leading enterprises demonstrate clear advantages in scale, cost, and market, and market concentration is expected to further increase[27] - Changes in global tire production layout, with increased production investment by skeleton material enterprises in Southeast Asia, India, and Eastern Europe, will lead to a continuous increase in export volumes for domestic skeleton material enterprises[29] - In the 2024 global top 75 tire manufacturers ranking, Chinese enterprises accounted for 38 positions, with Zhongce Rubber and Sailun Tire entering the global top ten[30] Discussion and Analysis of Operations Management achieved significant progress in R&D, internationalization, clean energy, digital transformation, and talent, enhancing profitability and competitiveness amid complex market conditions - The company increased R&D investment, making progress in new product development such as engineering tire cable-type bead wire and ultra-high strength bead wire, increasing the proportion of high-performance series wire products[32] - Actively responding to the "Belt and Road" initiative, accelerating the construction of the Morocco overseas production base project, and gradually establishing a global integrated production and sales layout[33] - Strengthening clean energy construction, with a 200 MW wind power generation project and a 70 MW biomass cogeneration project under construction, expected to achieve grid connection/heating power generation by 2026, increasing the proportion of green electricity usage[35] - Continuously promoting digital transformation, building a smart steel cord factory, recognized as a 2025 Shandong Province Advanced Smart Factory, enhancing operational efficiency and corporate competitiveness[35] - Continuously expanding talent reserves, improving recruitment and training systems, creating a talent growth path with company characteristics, and maintaining the enthusiasm and stability of the core team[36] Analysis of Core Competencies During the Reporting Period Core competencies include extensive customer resources, strong brand influence, leading production scale, robust innovation, regional advantages, flexible production, and an experienced team - The company has established long-term stable strategic partnerships with well-known domestic and international tire enterprises such as Zhongce Rubber, Linglong Tire, Michelin, and Bridgestone, forming a business pattern of simultaneous domestic and international sales[37] - The company holds multiple honors such as "Shandong Famous Brand", "China Rubber Industry Association Annual Recommended Brand", and "National Manufacturing Single Champion Demonstration Enterprise", demonstrating significant brand influence[37][38] - The company is the largest bead wire production enterprise in China, with bead wire output accounting for 37.53% of the domestic market share in 2024, holding a prominent industry position[38] - The company has established multiple R&D platforms, including a national-level enterprise technology center and engineering research center, and collaborates with universities and research institutes, demonstrating strong technological innovation capabilities[38] - Located in Shandong Province, the company benefits from abundant tire industry customers and steel raw material supply, possessing prominent regional comprehensive resource advantages[39] - The company has established a flexible production system, capable of mass production according to customer customization requirements, improving equipment and labor efficiency[39] Key Operating Performance Operating revenue decreased by 4.19%, but net profit turned profitable through cost control and market expansion, with significant changes in asset-liability structure and fair value of financial assets - During the reporting period, the company achieved operating revenue of 2.521 billion yuan, a year-on-year decrease of 4.19%; net profit attributable to shareholders was 42.40 million yuan, turning losses into profits[18][19] - Total assets at the end of the period were 8.11 billion yuan, an increase of 5.32% compared to the end of the previous year[18] - The company's main controlled and investee companies include Zhucheng Jinyi Trading Co., Ltd., Shandong Daye New Material Co., Ltd., and Shandong Shengtong Steel Cord Co., Ltd., among which Shandong Shengtong Steel Cord Co., Ltd. achieved a net profit of 10.73 million yuan[52][55] Analysis of Main Business Operating revenue decreased by 4.19% due to lower selling prices, but improved profitability resulted from a 6.25% drop in operating costs and significant reductions in financial and R&D expenses Changes in Key Financial Statement Items | Item | Current Period (yuan) | Prior Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,521,267,698.85 | 2,631,397,559.15 | -4.19 | | Operating Cost | 2,326,067,208.87 | 2,481,086,126.63 | -6.25 | | Selling Expenses | 40,644,731.97 | 36,392,482.84 | 11.68 | | Administrative Expenses | 42,397,685.47 | 53,231,724.89 | -20.35 | | Financial Expenses | 44,192,506.24 | 71,426,652.39 | -38.13 | | R&D Expenses | 25,306,647.66 | 34,571,023.62 | -26.80 | | Other Income | 26,121,666.69 | 44,505,057.28 | -41.31 | | Net Cash Flow from Operating Activities | 132,692,844.77 | 195,403,025.60 | -32.09 | | Net Cash Flow from Investing Activities | -208,872,920.66 | -164,571,426.64 | -26.92 | | Net Cash Flow from Financing Activities | -43,394,391.08 | 92,288,407.88 | -147.02 | - The change in operating revenue is primarily due to the combined effect of a year-on-year decrease in the selling price of main products and a year-on-year increase in sales volume[42] - The decrease in financial expenses is mainly due to the combined effect of reduced discount expenses and increased exchange gains[42] Analysis of Assets and Liabilities Total assets grew by 5.32% to 8.11 billion yuan, with significant shifts in asset and liability composition, including increases in financial assets and borrowings, and decreases in notes receivable and construction in progress Changes in Assets and Liabilities | Item | Current Period End (yuan) | Proportion of Total Assets (%) | Prior Period End (yuan) | Proportion of Total Assets (Prior Period End) (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,778,046.20 | 0.02 | 1,003,748.84 | 0.01 | 77.14 | | Notes Receivable | 213,961,645.46 | 2.64 | 244,452,075.25 | 3.17 | -12.47 | | Notes Receivable Financing | 195,632,987.90 | 2.41 | 74,493,634.48 | 0.97 | 162.62 | | Prepayments | 123,261,345.25 | 1.52 | 89,319,221.28 | 1.16 | 38.00 | | Construction in Progress | 199,329,010.87 | 2.46 | 390,355,409.65 | 5.07 | -48.94 | | Other Non-Current Assets | 473,774,543.33 | 5.84 | 67,414,138.83 | 0.88 | 602.78 | | Short-Term Borrowings | 1,982,057,244.28 | 24.44 | 1,685,325,275.16 | 21.89 | 17.61 | | Trading Financial Liabilities | 0.00 | 0.00 | 2,218,359.26 | 0.03 | -100.00 | | Accounts Payable | 654,068,840.24 | 8.07 | 539,939,333.53 | 7.01 | 21.14 | | Contract Liabilities | 9,909,762.20 | 0.12 | 24,812,347.81 | 0.32 | -60.06 | | Other Payables | 36,339,123.31 | 0.45 | 28,325,210.94 | 0.37 | 28.29 | | Non-Current Liabilities Due Within One Year | 594,531,119.03 | 7.33 | 421,402,254.13 | 5.47 | 41.08 | | Other Current Liabilities | 75,194,973.50 | 0.93 | 145,953,874.41 | 1.90 | -48.48 | | Long-Term Borrowings | 837,499,681.17 | 10.33 | 679,358,246.25 | 8.82 | 23.28 | | Long-Term Payables | 496,624,149.44 | 6.12 | 259,480,610.76 | 3.37 | 91.39 | - Overseas assets at the end of the period totaled 26.62 million yuan, accounting for 0.33% of total assets[48] - The decrease in construction in progress is mainly due to the completion and capitalization of steel cord installation equipment and the second-phase factory building project at Kenli plant[46] - The increase in other non-current assets is mainly due to prepayments for wind power projects and new time deposit products with maturities over one year[46] Analysis of Investment Status The company's investments in fair value financial assets totaled 228 million yuan at period-end, a significant increase, including trading financial assets and notes receivable financing Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (yuan) | Amount Purchased in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,003,748.84 | 774,297.36 | 1,778,046.20 | | Notes Receivable Financing | 74,493,634.48 | 121,139,353.42 | 195,632,987.90 | | Other Equity Instrument Investments | 23,980,812.36 | 0 | 23,980,812.36 | | Other Non-Current Financial Assets | 6,800,000.00 | 0 | 6,800,000.00 | | Total | 106,278,195.68 | 121,913,650.78 | 228,191,846.46 | Analysis of Major Controlled and Investee Companies Major controlled and investee companies operate across diverse sectors, with Shandong Daye New Material and Shandong Shengtong Steel Cord being key subsidiaries, reporting revenues of 419 million yuan and 522 million yuan respectively Financial Information of Major Controlled and Investee Companies (Partial) | Company Name | Main Business | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhucheng Daye Metal Products Co., Ltd. | Production and sales of metallurgical rolls and accessories, etc. | 36,157,188.91 | 18,609,030.05 | 12,646,791.81 | -157,368.58 | | Zhucheng Jinyi Trading Co., Ltd. | Sales of steel, wire, tire wire, etc. | 465,146,864.53 | -51,401,979.82 | 9,952,367.38 | -5,209,461.14 | | Shandong Daye New Material Co., Ltd. | Manufacturing of high-performance fibers and composite materials, etc. | 2,992,296,490.66 | 1,766,119,024.53 | 418,742,449.96 | -26,177,864.03 | | Shandong Shengtong Steel Cord Co., Ltd. | Hose wire, steel cord, bead wire, etc. | 1,195,915,618.81 | 822,472,650.85 | 521,851,382.23 | 10,734,681.94 | Part IV Corporate Governance, Environment, and Society This section covers the company's governance practices, environmental disclosures, and social responsibilities Profit Distribution or Capital Reserve Conversion Plan The board resolved no semi-annual profit distribution or capital reserve conversion to share capital for the reporting period - There is no profit distribution plan or capital reserve conversion to share capital plan for the current reporting period[58] Environmental Information Disclosure Status The company and its major subsidiary are listed for environmental information disclosure and report via the Shandong system - The company and Shandong Shengtong Steel Cord Co., Ltd. are both included in the list of enterprises required to disclose environmental information[59] - Environmental information disclosure reports can be accessed on the Enterprise Environmental Information Disclosure System (Shandong)[59] Part V Significant Matters This section addresses important events and disclosures, including integrity status, related party transactions, and significant contracts Explanation of the Integrity Status of the Company and Its Controlling Shareholders and Actual Controllers During the Reporting Period The company, its controlling shareholders, and actual controllers maintained good integrity, with no instances of dishonesty or unfulfilled obligations - During the reporting period, the company, its controlling shareholders, and actual controllers had no instances of dishonesty[62] - There were no instances of failure to comply with effective court judgments or large overdue debts[62] Significant Related Party Transactions Related party transactions totaled 250,800 yuan, primarily for equipment procurement from Hubei Sanjiang Aerospace and electricity from Cairui Electronics Related Party Transactions in Ordinary Course of Business | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (yuan) | | :--- | :--- | :--- | :--- | | Hubei Sanjiang Aerospace Jiangbei Mechanical Engineering Co., Ltd. | Purchase of Goods | Equipment Procurement | 50,176.99 | | Cairui Electronics (Zhucheng) Co., Ltd. | Purchase of Goods | Electricity Procurement | 200,671.24 | | Total | | | 250,848.23 | Significant Contracts and Their Performance Significant guarantees for subsidiaries totaled 1.123 billion yuan at period-end, representing 55.13% of net assets, mainly for loan guarantees to Shandong Daye New Material and Shandong Shengtong Steel Cord Company Guarantees for Subsidiaries | Indicator | Amount (yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During Reporting Period | 1,164,000,000.00 | | Total Guarantee Balance for Subsidiaries at Period-End (B) | 1,122,890,000.00 | | Total Guarantees (A+B) | 1,122,890,000.00 | | Proportion of Total Guarantees to Company's Net Assets (%) | 55.13 | - The company provided guarantee for subsidiaries including Shandong Daye New Material Co., Ltd., Shandong Shengtong Steel Cord Co., Ltd., and Shandong Daye New Energy Co., Ltd., with a total amount of 1.164 billion yuan[67][68] Part VI Share Changes and Shareholder Information This section details changes in share capital and provides an overview of the company's shareholder structure Share Capital Change Status The company's total share capital and structure remained stable and unchanged during the reporting period - During the reporting period, the company's total share capital and share structure remained unchanged[70] Shareholder Information As of period-end, the company had 24,895 common shareholders; actual controllers Dou Yong and Dou Baosen held 32.59% and 18.11% respectively, with pledged shares - As of the end of the reporting period, the company had a total of 24,895 common shareholders[71] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End (shares) | Shareholding (%) | Share Status | Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Dou Yong | 111,384,000 | 32.59 | Pledged | 73,200,000 | Domestic Natural Person | | Dou Baosen | 61,898,440 | 18.11 | Pledged | 49,000,000 | Domestic Natural Person | | Zhu Jianwei | 5,593,500 | 1.64 | Unpledged | 0 | Domestic Natural Person | | Zheng Hongxia | 4,525,000 | 1.32 | Pledged | 3,500,000 | Domestic Natural Person | | Zhucheng Yihe Axle Co., Ltd. | 3,460,000 | 1.01 | Unpledged | 0 | Domestic Non-State-Owned Legal Person | | China Construction Bank - Guotai JINMA Stable Return Securities Investment Fund | 2,795,300 | 0.82 | Unpledged | 0 | Other | | Shandong Daye Co., Ltd. Repurchase Special Securities Account | 2,511,100 | 0.73 | Unpledged | 0 | Other | | China Minsheng Bank Co., Ltd. - Everbright Pramerica Credit Plus Bond Fund | 2,394,420 | 0.70 | Unpledged | 0 | Other | | Agricultural Bank of China Co., Ltd. - ICBC Credit Suisse Small and Mid-Cap Growth Mixed Securities Investment Fund | 2,316,304 | 0.68 | Unpledged | 0 | Other | | Wang Chunxiang | 1,975,500 | 0.58 | Unpledged | 0 | Domestic Natural Person | - Dou Baosen and Dou Yong are father and son and act in concert[74] Part VII Bond-Related Information This section provides information regarding the company's bonds and other debt financing instruments Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company had no outstanding or overdue corporate bonds or non-financial enterprise debt financing instruments during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[77] Convertible Corporate Bonds Status The company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[77] Part VIII Financial Report This section presents the company's financial statements, including the audit report, balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[6][79] Financial Statements This section presents the company's 2025 semi-annual consolidated and parent company financial statements, reflecting financial position and operating results - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[79] Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were 8.11 billion yuan (up 5.32%), total liabilities 6.073 billion yuan (up 15.19%), and parent equity 2.037 billion yuan (down 3.08%) Key Data from Consolidated Balance Sheet | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Total Assets | 8,109,736,407.63 | 7,699,799,836.44 | | Total Liabilities | 6,072,772,000.18 | 5,272,112,143.45 | | Total Equity Attributable to Parent Company Owners | 2,036,964,407.45 | 2,101,690,426.07 | | Minority Interests | 0 | 325,997,266.92 | Parent Company Balance Sheet As of June 30, 2025, parent company total assets were 6.881 billion yuan (up 5.80%), total liabilities 4.559 billion yuan (up 7.21%), and total owners' equity 2.323 billion yuan (up 3.13%) Key Data from Parent Company Balance Sheet | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Total Assets | 6,881,471,571.64 | 6,504,392,674.15 | | Total Liabilities | 4,558,566,316.43 | 4,252,051,834.99 | | Total Owners' Equity | 2,322,905,255.21 | 2,252,340,839.16 | Consolidated Income Statement In H1 2025, consolidated operating revenue was 2.521 billion yuan (down 4.19%), total profit 43.74 million yuan (turning profitable), and net profit attributable to parent shareholders 42.40 million yuan (EPS 0.12 yuan/share) Key Data from Consolidated Income Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 2,521,267,698.85 | 2,631,397,559.15 | | Total Operating Cost | 2,501,787,597.73 | 2,695,381,644.05 | | Total Profit | 43,738,937.26 | -38,150,362.87 | | Net Profit | 39,895,514.47 | -32,731,343.92 | | Net Profit Attributable to Parent Company Shareholders | 42,397,855.44 | -24,549,620.85 | | Basic Earnings Per Share (yuan/share) | 0.12 | -0.07 | Parent Company Income Statement In H1 2025, parent company operating revenue was 1.906 billion yuan (down 4.61%), and net profit was 70.56 million yuan (up 125.94%) Key Data from Parent Company Income Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 1,906,285,836.82 | 1,998,327,422.27 | | Operating Cost | 1,737,138,941.12 | 1,861,228,619.46 | | Total Profit | 79,356,738.43 | 26,331,080.07 | | Net Profit | 70,564,416.05 | 31,231,202.12 | Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities was 133 million yuan (down 32.09%), investing activities had a -209 million yuan net outflow, and financing activities shifted to a -43.39 million yuan net outflow Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 132,692,844.77 | 195,403,025.60 | | Net Cash Flow from Investing Activities | -208,872,920.66 | -164,571,426.64 | | Net Cash Flow from Financing Activities | -43,394,391.08 | 92,288,407.88 | | Net Increase in Cash and Cash Equivalents | -112,655,364.71 | 130,419,287.07 | Parent Company Cash Flow Statement In H1 2025, parent company operating cash flow was 96.77 million yuan (down 41.85%), investing cash flow was -425 million yuan (increased outflow), and financing cash flow was 266 million yuan (shifted to inflow) Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 96,769,779.08 | 166,429,659.58 | | Net Cash Flow from Investing Activities | -425,024,714.02 | -48,095,083.49 | | Net Cash Flow from Financing Activities | 266,260,168.93 | -26,096,497.31 | | Net Increase in Cash and Cash Equivalents | -57,966,276.35 | 96,188,237.09 | Consolidated Statement of Changes in Owners' Equity In H1 2025, consolidated owners' equity decreased by 16.18% to 2.037 billion yuan, primarily due to a 42.40 million yuan net profit and a 107 million yuan capital reserve reduction from minority interest acquisition Key Data from Consolidated Statement of Changes in Owners' Equity | Item | H1 2025 Period-End Balance (yuan) | H1 2024 Period-End Balance (yuan) | | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 341,759,392.00 | 341,759,392.00 | | Capital Reserve | 1,012,348,683.41 | 1,119,472,557.48 | | Retained Earnings | 597,741,957.90 | 712,887,677.32 | | Total Equity Attributable to Parent Company Owners | 2,036,964,407.45 | 2,259,234,000.95 | | Minority Interests | 0 | 344,878,577.07 | | Total Owners' Equity | 2,036,964,407.45 | 2,604,112,578.02 | - Total comprehensive income attributable to parent company owners for the current period was 42.40 million yuan[97] - Capital reserve decreased by 107 million yuan, mainly due to the company's acquisition of minority interests in its subsidiary, Daye New Material Co., Ltd.[97][346] Parent Company Statement of Changes in Owners' Equity In H1 2025, parent company owners' equity increased by 3.13% to 2.323 billion yuan, driven by a 70.56 million yuan increase in comprehensive income Key Data from Parent Company Statement of Changes in Owners' Equity | Item | H1 2025 Period-End Balance (yuan) | H1 2024 Period-End Balance (yuan) | | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 341,759,392.00 | 341,759,392.00 | | Capital Reserve | 1,127,004,998.75 | 1,127,004,998.75 | | Retained Earnings | 769,026,490.32 | 756,568,339.21 | | Total Owners' Equity | 2,322,905,255.21 | 2,310,447,104.10 | - Total comprehensive income for the current period was 70.56 million yuan[102] Company Basic Information The company, listed on SSE in 2017, specializes in R&D, production, and sales of tire steel materials for automotive and tire industries - The company was listed on the Shanghai Stock Exchange on November 13, 2017, and as of June 30, 2025, had a total issued share capital of 341,759,392.00 shares[106] - The company operates in the metal products industry, with main products including bead wire, steel cord, and hose wire, applied in automotive, tire, and other fields[106] - Business scope includes the production, sales, and import/export of tire wire, hose wire, steel cord, and other products, as well as investment, construction, production, and electricity sales for solar energy projects[107] Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, confirming the company's ability to operate for at least 12 months - The company's financial statements are prepared on a going concern basis[108] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[108] Significant Accounting Policies and Estimates This section details the company's accounting standards, policies, and estimates for financial instruments, revenue, asset impairment, depreciation, amortization, and deferred tax, ensuring financial report accuracy - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting financial position, operating results, and other information[110] - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[134] - Revenue is recognized when the customer obtains control of the related goods, and revenue is recognized based on the progress or point in time of performance[211][212][213] - The company depreciates fixed assets and amortizes intangible assets using the straight-line method over their useful lives after considering their residual value[293][191][232] - The company assesses impairment of financial instruments using the expected credit loss model and makes provisions for inventory obsolescence[141][164][229] Taxation This section details the company's and subsidiaries' main tax types and rates, including VAT, urban maintenance tax, and corporate income tax, with some enjoying preferential rates Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 13% | | Urban Maintenance and Construction Tax | Actual Turnover Tax Paid | 7% | | Corporate Income Tax | Taxable Income | 15%, 20%, 25%, 16.5%, 5%, 21%, 27.375% | - Shandong Daye Co., Ltd. and Shandong Shengtong Steel Cord Co., Ltd., as high-tech enterprises, enjoy a preferential corporate income tax rate of 15%[237][238] - Shandong Baotongyuan Technology Co., Ltd., as a small and micro-profit enterprise, enjoys a preferential policy where the portion of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan is included in taxable income at 25% and subject to a corporate income tax rate of 20%[237] Notes to Consolidated Financial Statement Items This section provides detailed notes for consolidated financial statement items, explaining period-end balances, changes, and reasons for monetary funds, receivables, inventory, fixed assets, borrowings, revenue, and expenses - Monetary funds at period-end totaled 1.063 billion yuan, including bank deposits of 71.05 million yuan and other monetary funds of 992 million yuan[240] - Accounts receivable at period-end totaled 1.471 billion yuan, with 98.53% having an aging of less than 1 year, and total bad debt provisions of 94.26 million yuan[251][253] - Inventory book value at period-end was 688 million yuan, with inventory impairment provisions of 13.45 million yuan, mainly comprising raw materials, work-in-progress, finished goods, and goods in transit[280][281] - Fixed assets book value at period-end was 2.643 billion yuan, increasing by 344 million yuan in the current period, mainly from transfers from construction in progress[293][294] - Construction in progress book value at period-end was 199 million yuan, with major projects including Kenli plant production workshops, steel cord production line installation equipment, new energy wind power projects, and biomass cogeneration projects[300][302][303] - Short-term borrowings at period-end totaled 1.982 billion yuan, mainly consisting of pledged and mortgaged borrowings[318] - Long-term borrowings at period-end totaled 837 million yuan, mainly consisting of pledged and mortgaged borrowings[338] - Operating revenue for the current period was 2.521 billion yuan, operating cost was 2.326 billion yuan, with main business revenue primarily from steel cord, bead wire, and hose wire[354][356] - Financial expenses for the current period were 44.19 million yuan, a decrease of 38.13% from the prior period, mainly due to reduced discount expenses and increased exchange gains[361] - Other income for the current period was 26.12 million yuan, mainly comprising government subsidies and refunds of individual income tax withholding service fees[362][363] - Investment income for the current period was 4.28 million yuan, turning losses into profits compared to the prior period, mainly including investment income from long-term equity investments accounted for using the equity method, debt restructuring gains, and gains from options and forward foreign exchange transactions[364] - Credit impairment losses for the current period were 2.11 million yuan, a significant improvement from the prior period, mainly due to reduced bad debt losses on notes receivable[368] - Asset impairment losses for the current period were -11.65 million yuan, mainly due to inventory obsolescence losses[368] R&D Expenses R&D expenses totaled 25.31 million yuan for the period, primarily comprising material costs, employee compensation, fuel, power, and other expenses, all expensed R&D Expenses by Nature of Expense | Item | Current Period (yuan) | Prior Period (yuan) | | :--- | :--- | :--- | | Direct Materials | 6,971,291.24 | 7,296,790.51 | | Employee Compensation | 10,154,697.52 | 12,528,931.95 | | Fuel and Power | 3,509,284.31 | 3,544,114.80 | | Other Expenses | 4,671,374.60 | 11,201,186.36 | | Total | 25,306,647.66 | 34,571,023.62 | | Of which: Expensed R&D | 25,306,647.66 | 34,571,023.62 | | Capitalized R&D | 0 | 0 | - All R&D expenses for the current period were expensed and not capitalized[390] Changes in Consolidation Scope The company had no business combinations or disposals of subsidiaries resulting in loss of control during the reporting period - No business combinations not under common control occurred in the current period[391] - No business combinations under common control occurred in the current period[391] - There were no transactions or events resulting in the loss of control over subsidiaries in the current period[392] Interests in Other Entities This section details interests in subsidiaries, joint ventures, and associates, including the acquisition of a 19.4444% stake in Shandong Daye New Material, making it a wholly-owned subsidiary and reducing capital reserve by 107 million yuan - The company owns wholly-owned subsidiaries including Zhucheng Jinyi Trading Co., Ltd., Zhucheng Baocheng Trading Co., Ltd., Zhucheng Daye Metal Products Co., Ltd., Daye Europe LLC, Daye (Hong Kong) International Development Co., Ltd., Daye (Americas) LLC, Shandong Zhihuigu Electronic Technology Co., Ltd., Shandong Daye New Energy Co., Ltd., Shandong Baotongyuan Technology Co., Ltd., Shandong Zhixu New Energy Co., Ltd., Shandong Xiangyu Intelligent Technology Co., Ltd., Shandong Daye New Material Co., Ltd., Shandong Shengtong Steel Cord Co., Ltd., Dongying Huitong International Trade Co., Ltd., Shandong Shengtong Machinery Manufacturing Co., Ltd., Shandong Shengtong Import and Export Co., Ltd., Shandong Yetai New Energy Co., Ltd., Shandong Zhipeng Green Energy Co., Ltd., Shandong Yefeng Green Energy Co., Ltd., Shandong Daye Zhilian Logistics Co., Ltd., and Shandong Daye Robot Technology Co., Ltd.[394][395] - The company acquired a 19.4444% equity stake in Shandong Daye New Material Co., Ltd. from Weifang City Urban Construction Development Investment Group Co., Ltd., making it a wholly-owned subsidiary[397] - This acquisition resulted in a purchase cost of 431 million yuan, with the subsidiary's net asset share calculated based on the acquired equity ratio being 323 million yuan, and the difference of 107 million yuan adjusted to capital reserve[398] Government Grants This section details government grants received, totaling 26.12 million yuan recognized in profit or loss, comprising 12.29 million yuan asset-related and 13.83 million yuan income-related Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (yuan) | New Grants Added in Current Period (yuan) | Transferred to Other Income in Current Period (yuan) | Ending Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 191,259,675.01 | 23,247,919.90 | 12,289,257.89 | 202,218,337.02 | Asset-Related | | Deferred Income | 980,089.60 | 0.00 | 0.00 | 980,089.60 | Income-Related | | Total | 192,239,764.61 | 23,247,919.90 | 12,289,257.89 | 203,198,426.62 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period (yuan) | Prior Period (yuan) | | :--- | :--- | :--- | | Asset-Related | 12,289,257.89 | 8,693,890.72 | | Income-Related | 13,832,408.8 | 35,811,166.56 | | Total | 26,121,666.69 | 44,505,057.28 | Risks Related to Financial Instruments The company manages market, credit, and liquidity risks through monitoring exchange rates, adjusting financial instrument proportions, assessing credit, and forecasting cash flows - The company's main financial instruments include debt investments, accounts receivable, and accounts payable[403] - Foreign exchange risk primarily arises from export business, and the company closely monitors the impact of exchange rate fluctuations[403] - Interest rate risk is managed by determining the proportion of fixed and floating rate financial instruments[406] - Credit risk is prevented by assessing new customer credit, quarterly monitoring existing customer credit ratings, and accounts receivable aging[408] - Liquidity risk is managed by monitoring cash balances, marketable securities, and 12-month cash flow forecasts to ensure sufficient funds, and by utilizing various financing methods[409] Disclosure of Fair Value This section discloses the fair value of assets and liabilities, totaling 228 million yuan, including trading financial assets and notes receivable financing, determined by market prices and valuation techniques Fair Value of Assets Measured at Fair Value at Period-End | Item | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,778,046.20 | 0 | 1,778,046.20 | | Other Equity Instrument Investments | 0 | 23,980,812.36 | 23,980,812.36 | | Other Non-Current Financial Assets | 0 | 6,800,000.00 | 6,800,000.00 | | Notes Receivable Financing | 0 | 195,632,987.90 | 195,632,987.90 | | Total Assets Continuously Measured at Fair Value | 1,778,046.20 | 226,413,800.26 | 228,191,846.46 | - The fair value of derivative financial assets is determined based on the settlement price of futures contracts on the futures exchange[414] - The fair value of non-current financial assets and other equity instrument investments is determined based on valuation techniques; the fair value of notes receivable financing (bank acceptance bills) is determined based on the face amount[415] Related Parties and Related Party Transactions This section identifies key related parties and discloses transactions, including equipment and electricity procurement, and guarantees provided by the company for subsidiaries and by related parties for the company - Key related parties include the company's director and general manager Zheng Hongxia, deputy general manager Gong Haixia, actual controller Dou Baosen and his spouse Wang Bingying, and other enterprises they control or hold positions in[417] Related Party Transactions for Purchase/Sale of Goods/Acceptance of Services | Related Party | Content of Related Party Transaction | Current Period (yuan) | | :--- | :--- | :--- | | Hubei Sanjiang Aerospace Jiangbei Mechanical Engineering Co., Ltd. | Equipment Procurement | 50,176.99 | | Cairui Electronics (Zhucheng) Co., Ltd. | Electricity Procurement | 200,671.24 | - The company provided guarantees for subsidiaries including Shandong Daye New Material Co., Ltd., Shandong Shengtong Steel Cord Co., Ltd., and Shandong Daye New Energy Co., Ltd., with a total guarantee amount of 1.123 billion yuan[422][67] - The company received guarantees from related parties including Dou Baosen, Dou Yong, Gong Haixia, and Wang Bingying, with a total guarantee amount exceeding 1 billion yuan[423][424] - The company borrowed 20 million yuan from Cairui Electronics (Zhucheng) Co., Ltd.[426] Notes to Parent Company Financial Statement Items This section provides detailed notes for parent company financial statement items, including accounts receivable (1.186 billion yuan), long-term equity investments (2.086 billion yuan), operating revenue (1.906 billion yuan), and investment income (3.65 million yuan) - The parent company's accounts receivable book balance at period-end was 1.186 billion yuan, with 98.54% having an aging of less than 1 year, and total bad debt provisions of 71.05 million yuan[432][433][439] - The parent company's other receivables book balance at period-end was 124 million yuan, mainly including intercompany fund transfers, business deposits, and wind power project deposits[445][448] - The parent company's long-term equity investments book value at period-end was 2.086 billion yuan, mainly including investments in subsidiaries of 1.881 billion yuan and investments in associates of 64.99 million yuan[454][456] - The parent company's operating revenue for the current period was 1.906 billion yuan, operating cost was 1.737 billion yuan, with main business revenue accounting for 98.42%[459] - The parent company's investment income for the current period was 3.65 million yuan, mainly from investment income from long-term equity investments accounted for using the equity method, gains from options and forward foreign exchange settlement and sales, and time deposit interest income[460] Supplementary Information This section provides supplementary financial information, including non-recurring gains and losses (16.77 million yuan), weighted average ROE (2.00%), and basic EPS (0.12 yuan/share) Detailed Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (yuan) | | :--- | :--- | | Disposal Gains/Losses of Non-Current Assets | 2,493,903.69 | | Government Subsidies Recognized in Current Profit/Loss | 13,230,507.89 | | Fair Value Changes and Disposal Gains/Losses of Financial Assets and Liabilities Held by Non-Financial Enterprises | 3,373,799.01 | | Debt Restructuring Gains/Losses | 632,595.23 | | Other Non-Operating Income and Expenses | -2,250,298.26 | | Less: Income Tax Impact | 403,771.05 | | Minority Interest Impact (After Tax) | 302,792.45 | | Total | 16,773,944.06 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average ROE (%) | Basic EPS (yuan) | Diluted EPS (yuan) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 2.00 | 0.12 | 0.12 | | Net Profit Attributable to Common Shareholders After Non-Recurring Items | 1.21 | 0.07 | 0.07 |