物产金轮(002722) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides important notices, a table of contents, and definitions of key terms for the report Important Notice This section contains important notices, guarantees from the board and senior management regarding report accuracy, and highlights key risks - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility[3] - The company faces risks such as fluctuations in major raw material prices, human resources, and impairment of assets like goodwill[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Catalogue of Reference Documents This section lists the company's semi-annual report reference documents, including the original report, financial statements, and publicly disclosed files - Reference documents include the original full text of the 2025 semi-annual report signed by the legal representative, financial statements signed by the chief accountant, and original announcements of all company documents publicly disclosed during the reporting period[9][10] - The reference documents are kept at the company's Board of Directors Office[10] Definitions This section provides definitions for key terms and related entities used in the report to aid reader comprehension - "Wuchan Jinlun", "the Company" refers to Wuchan Zhongda Jinlun Blue Sea Co., Ltd., formerly known as Jinlun Blue Sea Co., Ltd. and Jinlun Sci-Tech Co., Ltd[11] - Zhejiang Provincial People's Government State-owned Assets Supervision and Administration Commission is the actual controller of the Company[11] - The reporting period refers to January 1, 2025, to June 30, 2025[11] Section II Company Profile and Key Financial Indicators This section presents the company's basic information and key financial data for the reporting period I. Company Profile This section provides the company's basic registration information, including stock ticker, code, listing exchange, and legal representative - The company's stock ticker is "Wuchan Jinlun", stock code 002722, listed on the Shenzhen Stock Exchange[13] - The company's Chinese name is Wuchan Zhongda Jinlun Blue Sea Co., Ltd., and its legal representative is Zhu Qingbo[13] II. Contact Person and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative - The company's Board Secretary is Qiu Jiuhui, and the Securities Affairs Representative is Pan Liming[14] - The contact address is No. 6 Binshui Road, Nantong Economic and Technological Development Zone, Jiangsu Province, telephone 0513-80776888, and email stock@geron-china.com[14] III. Other Information This section states that the company's contact information, information disclosure, and reference locations remained unchanged during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[15] - Information disclosure and reference locations remained unchanged during the reporting period[16] IV. Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators for the 2025 semi-annual period, showing a year-on-year decrease in operating revenue and net profit, and negative net cash flow from operating activities 2025 Semi-Annual Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Change from Prior Year | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,152,463,420.29 | 1,371,014,904.95 | -15.94% | | Net Profit Attributable to Shareholders of Listed Company | 60,453,868.31 | 82,608,252.07 | -26.82% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 55,234,072.68 | 80,215,647.72 | -31.14% | | Net Cash Flow from Operating Activities | -29,205,630.69 | 89,956,346.04 | -132.47% | | Basic Earnings Per Share (RMB/share) | 0.29 | 0.40 | -27.50% | | Diluted Earnings Per Share (RMB/share) | 0.29 | 0.40 | -27.50% | | Weighted Average Return on Net Assets | 2.31% | 3.24% | -0.93% | | End of Period Indicators: | | | | | Total Assets | 3,448,174,964.94 | 3,399,522,384.15 | 1.43% | | Net Assets Attributable to Shareholders of Listed Company | 2,633,032,909.88 | 2,629,703,399.92 | 0.13% |[18] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section states that there are no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards[19] - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards[20] VI. Non-recurring Gains and Losses and Amounts This section lists the company's non-recurring gains and losses for the reporting period, totaling RMB 5,219,795.63, primarily from fair value changes of financial assets and government subsidies 2025 Semi-Annual Non-recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 84,214.79 | | Government subsidies recognized in current profit or loss | 1,236,979.20 | | Gains and losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 5,811,917.91 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 620.00 | | Other non-operating income and expenses apart from the above | -211,407.65 | | Less: Income tax impact | 1,702,528.62 | | Total | 5,219,795.63 |[22][23] - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[23] Section III Management Discussion and Analysis This section analyzes the company's operations, financial performance, and risk factors during the reporting period I. Main Businesses Engaged by the Company During the Reporting Period This section elaborates on the company's four major business segments: textile card clothing, stainless steel decorative panels, special steel wire, and equipment manufacturing, including industry trends, products, and operating models - The company's main businesses include the production and sale of textile card clothing and stainless steel decorative panels, while continuously promoting the development of special steel wire and equipment manufacturing businesses[25] - The textile card clothing business was affected by the overall textile industry, with a 9.4% year-on-year decrease in total profits for textile enterprises above designated size in the first half of 2025[30][31] - The stainless steel decorative panel business primarily serves the elevator and home appliance sectors, with a 22.5% year-on-year increase in passenger elevator exports and a 30.7% year-on-year increase in home appliance retail sales in the first half of 2025[35][36] - The special steel wire business belongs to the new materials industry, with continuous market expansion in strategic emerging industries such as automotive, energy, and high-end equipment manufacturing[39] - The equipment manufacturing business primarily serves the new energy vehicle industry, with new energy vehicle production and sales reaching 6.968 million units and 6.937 million units, respectively, in the first half of 2025, representing year-on-year increases of 41.4% and 40.3%[40] - The company's main businesses, such as textile card clothing and stainless steel decorative materials, primarily adopt a direct sales model domestically, while export products use direct sales or distribution models as needed[53] (I) Industry Development of the Company's Business Segments This section analyzes the market environment and development trends of the company's main business sectors, including textile card clothing, stainless steel decorative panels, special steel wire, and equipment manufacturing - In the first half of 2025, industrial added value of textile enterprises above designated size increased by 3.1% year-on-year, operating revenue decreased by 3.0% year-on-year, and total profits decreased by 9.4% year-on-year[31] - In the first half of 2025, China's total textile and apparel exports increased by 0.8% year-on-year, while exports to the United States decreased by 5.3% year-on-year[31] - In the first half of 2025, China's crude stainless steel output increased by 5.17% year-on-year, and apparent consumption increased by 3.10% year-on-year[34] - From January to June 2025, national new housing starts decreased by 20.0% year-on-year, and residential new starts decreased by 19.6% year-on-year[35] - In the first half of 2025, China's passenger elevator exports increased by 22.5% year-on-year[35] - In the first half of 2025, retail sales of home appliances and audio-visual equipment by units above designated size increased by 30.7% year-on-year[36] - High-end special steel wire belongs to the new materials industry, with broad market space[39] - In the first half of 2025, new energy vehicle production and sales reached 6.968 million units and 6.937 million units, respectively, representing year-on-year increases of 41.4% and 40.3%[40] (II) Company's Main Businesses This section details the company's main businesses, products, and their applications in textile card clothing, stainless steel decorative materials, special steel wire, and equipment manufacturing - The company's textile card clothing business is undertaken by subsidiaries Jinlun Card Clothing and Baiyin Card Clothing, with main products including metallic card clothing and flexible flat top card clothing[42][43] - The stainless steel decorative materials business is primarily undertaken by subsidiaries Senda Decoration, Nantong Senneng, and Chengdu Sentong, with products covering mirror panels, brushed panels, and etched panels[42][48] - The special steel wire business is undertaken by Jinlun Steel Wire, focusing on mid-to-high-end special precision steel wire R&D and production, with products including steel wire for textile machinery and fishhook steel wire[42][50] - The equipment manufacturing business is undertaken by Jinlun Precision, specializing in metal wire forming, winding, and intelligent non-standard equipment manufacturing, having launched high-speed, high-precision intelligent rolling and drawing production lines for the new energy industry[42][51] 2、Main Operating Model The company's main businesses primarily adopt a direct sales model domestically, with export products using direct sales or distribution as needed - The company's main businesses, such as textile card clothing and stainless steel decorative materials, primarily adopt a direct sales model domestically[53] - Export products adopt direct sales or distribution models as needed[53] 3、Main Business Operating Performance During the reporting period, the company's overall operations remained stable, but operating revenue and net profit declined due to external economic conditions and US tariff policy uncertainties - The company's overall operations remained stable, but operating performance declined due to external economic conditions and uncertainties in US tariff policies[54] - Operating revenue reached RMB 1,152,463,420.29, a 15.94% decrease from the prior year period[54] - Net profit attributable to shareholders of the listed company was RMB 60,453,868.31, a 26.82% decrease from the prior year period[54] II. Core Competitiveness Analysis This section analyzes the company's core competitive advantages in textile card clothing, stainless steel decorative materials, special steel wire, and equipment manufacturing, including technological innovation, customer resources, and brand - As a state-owned capital controlled enterprise, the company possesses advantages in strategic stability, resource integration, and risk resistance[55] - The textile card clothing business has a full-产业链 research system, recognized as a "Card Clothing Product R&D Center" and "Jiangsu Province Specialized, Refined, Unique, and New Enterprise," serving over 5,000 domestic and international customers[55][57] - The stainless steel decorative materials business has strong product R&D capabilities, stable partnerships with renowned enterprises like Otis and Haier, and owns the "SDZS" China Well-known Trademark[59][60] - The special steel wire business is certified with IATF 16949 automotive quality management system, independently developed high-carbon, high-strength small-gauge spring steel wire for automotive oil seals, and holds 22 utility model patents[61] - The equipment manufacturing business possesses multiple core technologies, including ultra-precision parts processing, has obtained 4 invention patents and 12 utility model patents, and its flat wire intelligent rolling and drawing production line performance meets or approaches imported levels[62] Textile Card Clothing Business The core competitiveness of the textile card clothing business lies in technological innovation, customer resources, supply chain advantages, diverse product scale, and strong brand and service capabilities - The company has established a full-产业链 research system from product design and development to specialized equipment design and development, recognized as a "Card Clothing Product R&D Center" and "Jiangsu Province Specialized, Refined, Unique, and New Enterprise"[55] - The company has established stable cooperative relationships with over 5,000 domestic and international enterprises, demonstrating significant customer resource advantages[57] - The company is one of the few domestic textile card clothing enterprises capable of self-producing both card clothing steel wire and foundation cloth, with key production equipment largely self-manufactured[57] - The company has formed a product system of over one thousand specifications and models for textile card clothing, enabling quick response to customized customer needs and large-volume supply[58] - The "Jinlun" brand enjoys high market recognition, having been awarded the 18th National Quality Award[58] - The company has established a comprehensive sales and service system, providing full-process services and deploying nine technical service centers globally[58] Stainless Steel Decorative Materials Business The stainless steel decorative materials business maintains a leading position in the industry due to its strong product R&D capabilities, self-developed specialized equipment, strict quality assurance system, high-quality customer resources, and diverse product scale - The company was one of the earliest entrants into the stainless steel decorative materials industry, establishing stable cooperative relationships with numerous high-quality enterprises such as Otis Elevator and Haier Home Appliances[59] - The company independently developed and produced specialized equipment based on absorbing imported equipment technology, enhancing product quality stability[59] - The company has built a comprehensive customer demand platform and quality assurance system, ensuring product quality meets or exceeds customer standards[59][60] - The "SDZS" trademark was recognized as a "China Well-known Trademark," and the company collaborates deeply with the top ten global elevator brands and home appliance brands[60] - The company is one of the most comprehensive producers of stainless steel decorative panels, capable of meeting diverse and personalized customer needs[60] Special Steel Wire Business The special steel wire business holds an advantageous position in the mid-to-high-end special precision steel wire market due to its extensive product line, high technological content, and continuous R&D investment - The company has over twenty years of experience in steel wire product manufacturing, with its product line expanding to include steel wire for textile machinery, fishhook steel wire, and cold-drawn carbon spring steel wire[61] - The company promotes the IATF 16949 automotive quality management system and independently developed and produced high-carbon, high-strength small-gauge spring steel wire for automotive oil seals, changing the domestic reliance on imports[61] - The company focuses on special steel wire technology R&D, collaborating with renowned steel enterprises like China Baowu Steel Group, and has obtained 22 utility model patents[61] Equipment Manufacturing Business The equipment manufacturing business possesses an experienced professional team and multiple core technologies, with its flat wire intelligent rolling and drawing production line demonstrating excellent performance and strong market competitiveness - The company's core team members are professionals with many years of experience in precision wire equipment research, possessing multiple core technologies such as ultra-precision parts processing[62] - The company has obtained 4 invention patents and 12 utility model patents[62] - The company's flat wire intelligent rolling and drawing production line achieves processing accuracy of ±0.005mm and processing speed of over 500m/min, with equipment performance indicators meeting or approaching imported levels[62] - The company's products have been successfully applied in several industry-renowned enterprises, including Jinbei Electric, Tongli Electric, Datong Electromechanical, and Jingda Co., Ltd[62] III. Main Business Analysis This section analyzes the financial performance of the company's main businesses, showing a year-on-year decrease in operating revenue and net profit, primarily due to a significant decline in stainless steel panel business revenue, while textile card clothing business maintained growth Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,152,463,420.29 | 1,371,014,904.95 | -15.94% | | | Operating Cost | 937,453,218.12 | 1,134,214,157.55 | -17.35% | | | Selling Expenses | 50,759,456.74 | 52,499,044.82 | -3.31% | | | Administrative Expenses | 45,152,137.67 | 42,018,829.42 | 7.46% | | | Financial Expenses | 7,227,475.69 | -364,936.24 | 2,080.48% | Due to decreased bank deposit interest and increased bank loan interest | | Income Tax Expense | 14,690,948.26 | 22,473,261.32 | -34.63% | Due to decreased total profit and increased R&D expenses in the current period | | R&D Investment | 22,757,621.78 | 20,154,705.96 | 12.91% | | | Net Cash Flow from Operating Activities | -29,205,630.69 | 89,956,346.04 | -132.47% | Due to a larger increase in operating receivables at the end of the current period compared to the beginning of the year than in the prior year period, and a decrease in operating payables at the end of the current period compared to the beginning of the year, whereas operating payables increased in the prior year period | | Net Cash Flow from Investing Activities | -17,332,241.60 | -6,966,817.00 | -148.78% | Due to increased investment in fixed assets in the current period compared to the prior year period | | Net Cash Flow from Financing Activities | -14,977,841.39 | -271,654,252.26 | 94.49% | Due to a significant decrease in short-term borrowings at the end of the prior year period compared to the beginning of the year | | Net Increase in Cash and Cash Equivalents | -61,089,559.23 | -187,725,506.10 | 67.46% | Primarily influenced by the combined effects of operating, investing, and financing cash flows |[64] Operating Revenue Composition (by Product) | Product Category | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue | Prior Year Period Amount (RMB) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Stainless Steel Panels | 649,703,917.99 | 56.38% | 988,506,353.77 | 72.10% | -34.27% | | Metallic Card Clothing | 154,333,336.52 | 13.39% | 149,032,363.38 | 10.87% | 3.56% | | Flexible Flat Top Card Clothing | 67,022,405.37 | 5.82% | 65,481,570.88 | 4.78% | 2.35% | | Strip Card Clothing | 27,873,723.43 | 2.42% | 32,574,533.02 | 2.38% | -14.43% | | Fixed Flat Top Card Clothing | 24,625,444.35 | 2.14% | 24,216,046.69 | 1.77% | 1.69% | | Other | 228,904,592.63 | 19.85% | 111,204,037.21 | 8.10% | 105.84% |[66] - Export revenue decreased by 32.03% year-on-year, while gross profit margin increased by 9.49% year-on-year[67] IV. Non-Main Business Analysis The company had no non-main businesses during the reporting period - The company had no non-main businesses during the reporting period[68] V. Analysis of Assets and Liabilities This section analyzes the composition and significant changes in the company's assets and liabilities at the end of the reporting period, including major asset items and asset restrictions - Total assets at the end of the period were RMB 3,448,174,964.94, an increase of 1.43% from the end of the prior year[18] Significant Changes in Asset Composition | Item | Amount at End of Current Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 805,005,170.54 | 23.35% | 866,199,919.77 | 25.48% | -2.13% | | Accounts Receivable | 534,123,991.04 | 15.49% | 439,921,545.10 | 12.94% | 2.55% | | Inventories | 435,038,508.67 | 12.62% | 420,223,363.31 | 12.36% | 0.26% | | Construction in Progress | 53,337,349.35 | 1.55% | 33,034,234.11 | 0.97% | 0.58% | | Short-term Borrowings | 329,600,098.63 | 9.56% | 331,185,167.26 | 9.74% | -0.18% | | Contract Liabilities | 39,897,915.24 | 1.16% | 33,898,894.52 | 1.00% | 0.16% |[69] Assets and Liabilities Measured at Fair Value | Item | Amount at End of Period (RMB) | Amount at Beginning of Period (RMB) | | :--- | :--- | :--- | | Trading Financial Assets | 254,978,709.04 | 250,144,444.44 | | Derivative Financial Assets | 186,125.00 | 19,000.00 | | Other Equity Instrument Investments | 10,687,428.00 | 10,687,428.00 | | Investment Properties | 76,498,900.00 | 76,498,900.00 | | Subtotal Financial Assets | 265,852,262.04 | 260,850,872.44 | | Total | 342,351,162.04 | 337,349,772.44 |[71] Asset Rights Restricted as of the End of the Reporting Period | Item | Book Balance at End of Period (RMB) | Type of Restriction | Reason for Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,188,810.00 | Frozen | Futures margin | | Accounts Receivable Financing | 3,745,556.37 | Pledged | Bill pool pledge | | Total | 4,934,366.37 | | |[72] VI. Investment Status Analysis This section summarizes the company's investment activities during the reporting period, including a significant increase in total investment, implementation of derivative investments for hedging, and the overall use of raised funds - Total investment during the reporting period was RMB 8,292,803.95, a 344.35% increase from the prior year period[73] - The company had no securities investments or derivative investments for speculative purposes during the reporting period[74][78] - The company conducted stainless steel futures hedging operations, generating a profit of RMB 1.3758 million, indicating good hedging effectiveness[76] Overall Use of Raised Funds | Fundraising Year | Total Raised Funds (RMB 10,000) | Accumulated Used Raised Funds (RMB 10,000) | Proportion of Raised Funds Used at End of Reporting Period | Accumulated Changed Purpose of Raised Funds (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | 2019 | 21,400 | 17,347.43 | 84.37% | 6,267 | | 2022 | 31,785.46 | 7,800.11 | 25.09% | 0 | | Total | 53,185.46 | 25,147.54 | 48.69% | 6,267 |[80] - The net proceeds from the public issuance of convertible corporate bonds in 2019 were RMB 205.6086 million, and the net proceeds from the non-public issuance of shares in 2022 were RMB 310.8867 million[81][83] - The 2019 high-end stainless steel decorative panel production project has undergone significant changes, with no substantial new capacity additions planned in the short term, and the company is currently accelerating the expansion of its home appliance market business[88] - The 2019 high-end special steel wire project's implementation progress has been delayed due to a prudent strategy and requirements for new quality productive forces development, with the expected date of reaching a usable state extended to December 2025[88] VII. Disposal of Significant Assets and Equity The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[91] - The company did not dispose of significant equity during the reporting period[92] VIII. Analysis of Major Holding and Invested Companies This section discloses the financial data of the company's major holding subsidiaries, Jinlun Card Clothing and Senda Decoration, explains the decline in Senda Decoration's net profit, and notes the establishment of a new subsidiary Major Subsidiary Financial Data (First Half of 2025) | Company Name | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Jinlun Card Clothing | 298,402,511.77 | 42,038,829.65 | 33,553,852.46 | | Senda Decoration | 641,320,513.85 | 13,281,717.34 | 9,812,119.48 |[93] - Senda Decoration's sales revenue in the first half of 2025 decreased by 21.32% year-on-year, and net profit decreased by 70.61% year-on-year, mainly due to the continued downturn in the real estate market and a significant contraction in export orders caused by a new round of tariff barriers[93] - A new subsidiary, Nantong Jinlun Textile Technology Co., Ltd., was established during the reporting period, which has no significant impact on overall production, operations, and performance[93] IX. Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[94] X. Risks Faced by the Company and Countermeasures This section identifies the company's main risks, including raw material price fluctuations, human resources, and goodwill impairment, and outlines corresponding mitigation strategies - The company faces risks from fluctuations in major raw material prices; the countermeasure is to closely monitor price trends and control procurement costs through a "high price, low inventory; low price, high inventory" procurement strategy and futures-spot hedging tools[95] - The company faces human resource risks; the countermeasure is to establish a market-competitive compensation and promotion mechanism, and improve performance appraisal and talent梯队 development mechanisms[96] - The company faces impairment risks for assets such as goodwill; the countermeasure is to closely monitor risks encountered by subsidiary Senda Decoration during its development, strive to strengthen operational management, and improve enterprise operating performance[97] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has formulated a "Market Value Management System" to enhance investment value but has not yet disclosed a valuation enhancement plan - The company's Sixth Board of Directors' Third Meeting in 2025, held on April 18, 2025, reviewed and approved the "Market Value Management System"[98] - The company has not yet disclosed a valuation enhancement plan[98] XII. Implementation of "Quality and Return Dual Improvement" Action Plan The company has not yet disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - The company has not yet disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[99] Section IV Corporate Governance, Environment, and Social Responsibility This section details the company's governance structure, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management of the Company There were no changes in the company's directors, supervisors, and senior management during the reporting period, but a board re-election and senior management appointments occurred post-period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[101] - On July 7, 2025, the company held its First Extraordinary General Meeting of Shareholders in 2025, electing members of the Seventh Board of Directors, with Zhu Qingbo appointed as Chairman[101] - On the afternoon of July 7, 2025, the company held the First Meeting of the Seventh Board of Directors in 2025, appointing Tang Huajun as General Manager, Qiu Jiuhui, Gao Yu, and Liu Shao as Deputy General Managers, with Qiu Jiuhui also serving as Board Secretary and Gao Yu as Chief Financial Officer[101] II. Profit Distribution and Capital Reserve to Share Capital Conversion Plan for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[102] III. Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[103] IV. Environmental Information Disclosure The company and two major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with provided inquiry indexes - The company and two major subsidiaries (Jiangsu Jinlun Special Steel Wire Co., Ltd. and Nantong Jinlun Metal Products Co., Ltd.) are included in the list of enterprises required to disclose environmental information by law[104][105] - Inquiry indexes for environmental information disclosure reports are provided[104][105] V. Social Responsibility The company actively fulfills its social responsibilities in protecting shareholder and creditor rights, employee rights, customer and supplier rights, safety production, environmental protection, and public welfare - The company strictly adheres to laws and regulations in formulating corporate governance rules, promptly, truthfully, accurately, and completely discloses information, and safeguards the legitimate rights and interests of all shareholders and creditors[106][107] - The company establish a multi-level welfare and security system, formulated comprehensive humanistic care measures, focuses on employee career development, implemented a "dual-channel" development model, and improved training management systems[109][110] - The company ensures product quality and safety by formulating systems like the "Non-conforming Product Handling Process" and improving product recall and compensation mechanisms, while also valuing relationships with suppliers and customers[111] - During the reporting period, the company invested RMB 1.47 million in safety production, organized over 120 safety production training sessions, and experienced no safety production accidents[112] - During the reporting period, the company's total environmental protection investment was RMB 2.0426 million, and all major member companies have passed GB/T 24001-2016, ISO 14001:2015 (Environmental Management System) certifications, with no environmental accidents occurring[113] - The company actively participates in various social charity and public welfare activities, having cumulatively donated over RMB 17 million to various sectors of society over the years, and established "Jinlun Scholarships and Bursaries" in multiple universities, helping nearly 800 university students complete their studies[115] Section V Significant Matters This section covers major commitments, related party transactions, litigation, and other significant events during the reporting period I. Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, and Commitments Overdue and Unfulfilled as of the End of the Reporting Period During the reporting period, the company had no commitments fulfilled or overdue and unfulfilled by its actual controller, shareholders, related parties, acquirers, or the company itself - The company had no commitments fulfilled or overdue and unfulfilled by its actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period[117] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties[118] III. Irregular External Guarantees There were no irregular external guarantees by the company during the reporting period - There were no irregular external guarantees by the company during the reporting period[119] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[120] V. Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Reporting Period There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[121] VI. Board of Directors' Explanation on "Non-Standard Audit Report" for the Prior Year There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[121] VII. Matters Related to Bankruptcy and Reorganization The company had no matters related to bankruptcy and reorganization during the reporting period - The company had no matters related to bankruptcy and reorganization during the reporting period[121] VIII. Litigation Matters The company is involved in multiple litigation matters, including a sales contract dispute with Guangdong Yufeng Chuangzhan Metal Technology Co., Ltd. for RMB 55.38 million, which has entered the enforcement stage - A sales contract dispute with Guangdong Yufeng Chuangzhan Metal Technology Co., Ltd. involves RMB 55.38 million, for which a provision has been made, and it has entered the enforcement stage, with the counterparty undergoing bankruptcy liquidation proceedings[122] - Jinlun Card Clothing (Jiangsu) Co., Ltd. is involved in multiple sales contract disputes, with amounts ranging from RMB 61,300 to RMB 3.0424 million, most of which are in the enforcement or trial stage[122][123][124][125][126] - Nantong Haimen Senda Decorative Materials Co., Ltd. is involved in multiple sales contract disputes, with amounts ranging from RMB 100,000 to RMB 1 million, some of which have been judged or are undergoing trial[125] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[127] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[128] XI. Significant Related Party Transactions This section discloses the company's routine operating related party transactions during the reporting period, including procurement, labor services, and leasing, as well as deposit and credit business with an affiliated financial company - The company engaged in routine related party transactions with Wuchan Zhongda and its directly or indirectly controlled enterprises, including procurement of raw materials like stainless steel coils, wires and cables, and rubber, acceptance of IT equipment maintenance, project construction management, and training services, as well as leasing of premises[129][130] Routine Related Party Transaction Amounts (Current Reporting Period) | Type of Related Party Transaction | Amount (RMB 10,000) | Proportion of Similar Transaction Amount | | :--- | :--- | :--- | | Purchase of products, goods, raw materials from related parties | 1,103.85 | 0.04% - 1.51% | | Provision of labor services to related parties | 39.68 | 0.04% | | Acceptance of labor services from related parties | 136.37 | 0.00% - 16.75% | | Lease of premises from related parties | 100.64 | 66.88% |[129][130] - The company's deposit balance with Wuchan Zhongda Group Finance Co., Ltd. at the end of the period was RMB 652.3121 million, with a total credit line of RMB 300 million[134] - The company had no related party transactions involving asset or equity acquisition/disposal, joint external investments, or related party creditor-debtor relationships during the reporting period[131][132][133][136] XII. Significant Contracts and Their Performance This section discloses that the company had no entrustment, contracting, or leasing matters during the reporting period, but had significant guarantees for subsidiaries and an overview of wealth management activities - The company had no entrustment, contracting, or leasing situations during the reporting period[137][138][139] - The company's total guarantees for subsidiaries amounted to RMB 349.5 million, accounting for 13.33% of the company's net assets[143][144] Wealth Management Status (End of Period Balance) | Specific Type | Source of Funds for Wealth Management | Amount of Wealth Management Transactions (RMB 10,000) | Unmatured Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 60,000 | 0 | | Bank Wealth Management Products | Raised Funds | 25,480 | 25,480 | | Total | | 85,480 | 25,480 |[145] - The company had no other significant contracts during the reporting period[146] XIII. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[147] XIV. Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[148] Section VI Share Changes and Shareholder Information This section outlines changes in share capital, shareholder structure, and holdings of directors, supervisors, and senior management I. Share Changes During the reporting period, the company's total share capital slightly increased due to convertible bond conversions, and the share repurchase plan was completed Share Changes | | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 31,085,831.00 | 15.05% | 0 | 31,085,831 | 15.05% | | II. Unrestricted Shares | 175,502,456 | 84.95% | 16,076 | 175,518,532 | 84.95% | | III. Total Shares | 206,588,287 | 100.00% | 16,076 | 206,604,363 | 100.00% |[151] - The reason for the share change is that the company is in the convertible bond conversion period, with a total of 16,076 shares converted during the reporting period[152] - As of July 15, 2025, the company had cumulatively repurchased 719,500 shares through its dedicated share repurchase account, accounting for 0.35% of the company's current total share capital, with a total transaction amount of RMB 10,005,342.00, and the repurchase plan has been completed[153] II. Securities Issuance and Listing The company had no securities issuance and listing during the reporting period - The company had no securities issuance and listing during the reporting period[154] III. Company Shareholder Numbers and Shareholding Status At the end of the reporting period, the company had 25,358 common shareholders. The controlling shareholder, Wuchan Zhongda Yuantong Industrial Group Co., Ltd., and its concerted parties collectively held 33.73% of the shares - At the end of the reporting period, the total number of common shareholders was 25,358[155] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wuchan Zhongda Yuantong Industrial Group Co., Ltd. | State-owned Legal Person | 23.61% | 48,774,140 | 21,749,581 | 27,024,559 | | Nantong Jinlun Holding Co., Ltd. | Domestic Non-state-owned Legal Person | 10.40% | 21,493,715 | 0 | 21,493,715 | | Wuchan Zhongda (Zhejiang) Industrial Investment Co., Ltd. | State-owned Legal Person | 10.12% | 20,903,203 | 9,321,249 | 11,581,954 |[155][156] - Wuchan Zhongda Yuantong Industrial Group Co., Ltd. and Wuchan Zhongda (Zhejiang) Industrial Investment Co., Ltd. are concerted parties[157] - As of the end of the reporting period, the company's dedicated share repurchase account held 719,500 unrestricted shares, with a shareholding proportion of 0.35%[157] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[158] V. Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder during the reporting period[159] - There were no changes in the company's actual controller during the reporting period[159] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[160] Section VII Bond-Related Information This section details the company's convertible bonds, including issuance, changes, and credit ratings I. Corporate Bonds The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[162] II. Company Bonds The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[163] III. Non-Financial Enterprise Debt Financing Instruments The company had no non-financial enterprise debt financing instruments during the reporting period - The company had no non-financial enterprise debt financing instruments during the reporting period[164] IV. Convertible Corporate Bonds The company issued RMB 214 million in convertible bonds ("Jinlun Convertible Bonds") in 2019, with minor conversions during the reporting period, and the conversion price has been adjusted multiple times to the latest RMB 13.34/share - The company publicly issued RMB 214 million in convertible corporate bonds, "Jinlun Convertible Bonds," on October 14, 2019, with a term of 6 years[165] - At the end of the reporting period, the number of convertible bondholders was 5,234, with no guarantors[166] Changes in Convertible Bonds During the Reporting Period | Convertible Corporate Bond Name | Amount Before This Change (RMB) | Increase/Decrease Due to Conversion in This Change (RMB) | Amount After This Change (RMB) | | :--- | :--- | :--- | :--- | | 2019 Jinlun Blue Sea Co., Ltd. Convertible Corporate Bonds | 213,278,500.00 | 218,300.00 | 213,060,200.00 |[169] - As of June 30, 2025, the cumulative conversion amount was RMB 938,800.00, with a cumulative conversion quantity of 66,990 shares, and the unconverted amount accounted for 99.56% of the total issuance amount[171] - The conversion price of Jinlun Convertible Bonds has undergone multiple adjustments, with the latest conversion price being RMB 13.34/share (effective from July 9, 2025)[173] - The company's long-term credit rating is AA-, with a stable outlook, and the credit rating for "Jinlun Convertible Bonds" is AA-[174] V. Consolidated Statement Scope Loss Exceeding 10% of Net Assets at End of Prior Year The company's consolidated statement scope loss did not exceed 10% of net assets at the end of the prior year during the reporting period - The company's consolidated statement scope loss did not exceed 10% of net assets at the end of the prior year during the reporting period[175] VI. Key Accounting Data and Financial Indicators for the Past Two Years as of the End of the Reporting Period This section presents the company's key accounting data and financial indicators for the past two years, showing a slight decrease in current ratio and quick ratio, a slight increase in asset-liability ratio, and a year-on-year decrease in net profit after non-recurring items and interest coverage ratio Key Accounting Data and Financial Indicators for the Past Two Years as of the End of the Reporting Period | Item | End of Current Reporting Period | End of Prior Year | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Current Ratio | 2.81 | 2.93 | -4.10% | | Asset-Liability Ratio | 23.64% | 22.64% | 1.00% | | Quick Ratio | 2.09 | 2.24 | -6.70% | | Current Reporting Period | Prior Year Period | Change from Prior Year Period | | | Net Profit After Non-recurring Gains and Losses | RMB 5,523.41 10,000 | RMB 8,020.62 10,000 | -31.13% | | EBITDA to Total Debt Ratio | 13.25% | 30.40% | -17.15% | | Interest Coverage Ratio | 8.77 | 13.32 | -34.16% | | Cash Interest Coverage Ratio | -5.68 | 803.02 | -100.71% | | EBITDA Interest Coverage Ratio | 11.17 | 16.23 | -31.18% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% |[175] Section VIII Financial Report This section presents the unaudited semi-annual financial statements, including balance sheets, income statements, and cash flow statements I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[177] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet (End of Period Balance) | Item | Amount (RMB) | | :--- | :--- | | Total Current Assets | 2,265,104,085.08 | | Total Non-current Assets | 1,183,070,879.86 | | Total Assets | 3,448,174,964.94 | | Total Current Liabilities | 805,245,062.97 | | Total Non-current Liabilities | 9,896,992.09 | | Total Liabilities | 815,142,055.06 | | Total Equity Attributable to Parent Company Shareholders | 2,633,032,909.88 | | Total Liabilities and Equity | 3,448,174,964.94 |[179][181] Consolidated Income Statement (Current Period Amount) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 1,152,463,420.29 | | Total Operating Cost | 1,070,651,973.93 | | Operating Profit | 75,388,501.32 | | Total Profit | 75,144,816.57 | | Net Profit | 60,453,868.31 | | Net Profit Attributable to Parent Company Shareholders | 60,453,868.31 | | Basic Earnings Per Share | 0.29 | | Diluted Earnings Per Share | 0.29 |[188][189] Consolidated Cash Flow Statement (Current Period Amount) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | -29,205,630.69 | | Net Cash Flow from Investing Activities | -17,332,241.60 | | Net Cash Flow from Financing Activities | -14,977,841.39 | | Net Increase in Cash and Cash Equivalents | -61,089,559.23 |[193][194] III. Company Profile The company, formerly Jinlun Blue Sea Co., Ltd., was restructured into a joint-stock company in 2007, headquartered in Nantong, Jiangsu, primarily engaged in R&D, production, and sales of stainless steel decorative materials and textile card clothing - The company's full name is Wuchan Zhongda Jinlun Blue Sea Co., Ltd., stock code 002722, listed on the Shenzhen Stock Exchange on January 28, 2014[211] - As of June 30, 2025, the registered capital was RMB 206,604,363.00, with a total of 206,604,363 shares[211] - The company's main business activities are the R&D, production, and sales of stainless steel decorative materials and textile card clothing, belonging to the metal products and special equipment manufacturing industry[211] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern within 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[212] - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern within 12 months from the end of the reporting period[213] V. Significant Accounting Policies and Accounting Estimates This section details the company's specific accounting policies and estimates for financial instrument impairment, inventory, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition, affirming compliance with accounting standards - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truthfully and completely reflecting the company's financial position, operating results, and cash flows[215] - The company's operating cycle is short, using 12 months as the liquidity classification standard for assets and liabilities[217] - The company adheres to enterprise accounting standards for the classification, recognition, measurement, and derecognition of financial assets and liabilities, and makes impairment provisions based on expected credit losses[229][230][231][232][233][237][238][239][240] - The company's revenue recognition principle is to recognize revenue when the customer obtains control of the related goods or services, with goods sales being performance obligations fulfilled at a point in time[299][301] VI. Taxes This section lists the company's main tax categories and rates, and notes that some subsidiaries enjoy preferential corporate income tax policies for small and micro-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 5%, 7% | | Corporate Income Tax | 20%, 25% etc. | | Education Surcharge | 3% | | Local Education Surcharge | 2% |[317] - Wuchan Zhongda Jinlun Blue Sea Co., Ltd., Jinlun Card Clothing (Jiangsu) Co., Ltd., and other main tax entities have a corporate income tax rate of 25%[317] - Some of the company's subsidiaries qualify for small and micro-profit enterprise policies, enjoying a 20% corporate income tax rate preference[318] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including monetary funds, accounts receivable, inventory, fixed assets, intangible assets, goodwill, short-term borrowings, bonds payable, share capital, and retained earnings - Monetary funds at the end of the period were RMB 805,005,170.54, of which RMB 652,312,106.10 was deposited with Wuchan Zhongda Group Finance Co., Ltd., and RMB 1,188,810.00 in futures margin was restricted[320][321] - Accounts receivable at the end of the period were RMB 534,123,991.04, with bad debt provisions of RMB 94,055,336.21, including RMB 56,029,436.12 for accounts receivable for which bad debt provisions were individually made[327] - Inventory book value at the end of the per