金城医药(300233) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The Board, Supervisory Board, and senior management guarantee report accuracy and completeness, proposing a CNY 1.00 cash dividend per 10 shares - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report's content and assume legal responsibility[5] - Company head Zhao Yeqing, chief accountant Liu Jing, and head of accounting department Xu Chong declare the financial report is true, accurate, and complete[5] - Forward-looking statements regarding future plans, development strategies, and business plans in this report do not constitute a substantial commitment to investors, who are advised to be aware of investment risks[5] 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Distribution Base (Shares) | 379,331,587 | | Cash Dividend per 10 Shares (Pre-tax, CNY) | 1.00 | | Bonus Shares | 0 | | Capitalization from Capital Reserve | No | Catalog of Reference Documents Reference documents for the 2025 semi-annual report, including signed financial statements and disclosed files, are available at Jincheng Pharmaceutical's Securities Department - Reference documents include financial statements and the report text signed by the legal representative and chief accountant[10] - Originals of all company documents and announcements publicly disclosed during the reporting period are also included as reference documents[10] - The reference documents are available at Jincheng Pharmaceutical Securities Department, No. 1 Shuangshan Road, Zichuan Economic Development Zone, Zibo City, Shandong Province[10] Definitions This section defines common terms used in the report, such as company names, regulations, subsidiaries, and the reporting period, for clarity - Clarifies that "Company," "the Company," "Pharmaceutical Group," and "Jincheng Pharmaceutical" all refer to Shandong Jincheng Pharmaceutical Group Co., Ltd[11] - Lists major wholly-owned and controlled subsidiaries, such as Huihai Pharmaceutical, Jincheng Kerui, Jincheng Bio, and Jincheng Taier[11] - Defines industry-related acronyms such as FDA (U.S. Food and Drug Administration), GMP (Good Manufacturing Practice), and EHS (Environment, Health, Safety)[11] - The reporting period refers to January 1, 2025, to June 30, 2025[11] Section II Company Profile and Key Financial Indicators Company Profile The company, Jincheng Pharmaceutical (stock code 300233), is listed on the Shenzhen Stock Exchange, with Zhao Yeqing as its legal representative - Company stock abbreviation: Jincheng Pharmaceutical, stock code: 300233[13] - Stock exchange listed: Shenzhen Stock Exchange[13] - Company legal representative: Zhao Yeqing[13] Contact Persons and Information The company's Board Secretary is Zhu Xiaogang, investor relations representatives are Ni Yanli and Qi Feng, with disclosed contact details - Board Secretary: Zhu Xiaogang[14] - Securities Affairs Representatives: Ni Yanli, Qi Feng[14] - Contact address: No. 1 Shuangshan Road, Zichuan Economic Development Zone, Zibo City, Shandong Province[14] Other Information No changes occurred in the company's contact information, disclosure locations, or registration details 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] - The company's registration status remained unchanged during the reporting period[17] Key Accounting Data and Financial Indicators In H1 2025, revenue decreased by 22.65% to CNY 1.36 billion, net profit attributable to shareholders fell by 66.78% to CNY 43.38 million, and basic EPS declined to CNY 0.11/share 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period | Prior Year Same Period | YoY Change in Current Reporting Period | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,360,240,655.35 | 1,758,578,253.52 | -22.65% | | Net Profit Attributable to Shareholders (CNY) | 43,383,223.56 | 130,591,570.91 | -66.78% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains/Losses (CNY) | 38,730,480.06 | 121,495,520.34 | -68.12% | | Net Cash Flow from Operating Activities (CNY) | 104,367,911.57 | 174,951,312.54 | -40.34% | | Basic Earnings Per Share (CNY/share) | 0.11 | 0.34 | -67.65% | | Diluted Earnings Per Share (CNY/share) | 0.11 | 0.34 | -67.65% | | Weighted Average Return on Net Assets | 1.16% | 3.50% | -2.34% | | Total Assets (CNY) | 5,283,328,116.74 | 5,604,990,741.71 | -5.74% | | Net Assets Attributable to Shareholders (CNY) | 3,697,517,562.34 | 3,766,981,964.99 | -1.84% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards No differences in net profit and net assets were found between financial reports prepared under international/overseas and Chinese accounting standards during the reporting period - The company's financial reports for the reporting period show no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[19] - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[20] Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to CNY 4.65 million, primarily from government subsidies, fair value changes, and non-current asset disposals 2025 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -308,459.13 | | Government Subsidies Included in Current Period's Gains/Losses | 7,366,340.97 | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and from Disposal of Financial Assets and Liabilities, Excluding Effective Hedge Accounting Related to Normal Business Operations | 753,934.86 | | Other Non-Operating Income and Expenses Apart from the Above | -2,412,714.24 | | Less: Income Tax Impact | 753,695.70 | | Impact on Minority Interests (After Tax) | -7,336.74 | | Total | 4,652,743.50 | - The company has no other gain or loss items that meet the definition of non-recurring gains and losses[23] - The company has not classified any non-recurring gain or loss items listed in "Interpretive Announcement No. 1 for Information Disclosure by Companies Issuing Securities to the Public—Non-Recurring Gains and Losses" as recurring gain or loss items[23] Section III Management Discussion and Analysis Main Business Activities During the Reporting Period The company operates in pharmaceutical chemicals, synthetic biology, women's health, and anti-infectives, expanding into new tobacco, experiencing revenue and profit declines, but actively enhancing management and R&D 1. Industry Overview During the Reporting Period The pharmaceutical manufacturing industry, driven by aging populations and health awareness, saw revenue decline by 1.2% and profit by 2.8% in H1 2025, prompting innovation and business expansion due to evolving healthcare policies and anti-corruption efforts - From January to June 2025, the pharmaceutical manufacturing industry achieved operating revenue of CNY 1.22752 trillion, a year-on-year decrease of 1.2%[25] - The pharmaceutical manufacturing industry's total profit was CNY 176.69 billion, a year-on-year decrease of 2.8%[25] - The state optimized drug centralized procurement policies, strengthened quality assessment and supervision, and continued to combat corruption in pharmaceutical procurement and sales[25] - Normalized centralized procurement drives pharmaceutical companies to transform and develop through innovation and business expansion[25] 2. Main Business and Products The company strategically focuses on pharmaceutical chemicals, synthetic biology, women's health, high-end anti-infectives, and new tobacco, offering products like cephalosporin side-chain active esters, biopharmaceuticals, specialty APIs, and finished formulations - The company specializes in pharmaceutical chemicals, synthetic biology, women's health technology, and high-end anti-infective fields, expanding into new tobacco[26] - Key products include cephalosporin side-chain active ester series (e.g., AE active ester, Ceftazidime active ester), biopharmaceuticals, and specialty APIs (e.g., Glutathione, Ademetionine Butanedisulfonate)[26][27] - Finished dosage form products cover multiple areas such as anti-infectives and gynecology/pediatrics, including Nifuratel Nystatin Vaginal Soft Capsules and Cefazolin Sodium for Injection[27] 3. Operating Model The company operates a "strategic headquarters + professional business unit + lean factory" model, with production driven by sales, a diversified sales approach including direct sales and e-commerce, and an R&D system combining in-house development with external collaborations - The company implements a three-tier integrated operating system: "strategic operations headquarters + specialized business units + lean factories"[28] - The production model generally follows make-to-order, with subsidiaries preparing monthly production plans based on sales forecasts, product inventory, and capacity[28] - The sales model combines self-operation, dealer recruitment, and OTC for different business segments and product characteristics, primarily focusing on direct sales and self-operated exports in domestic and international markets[28] - The R&D model relies on national-level enterprise technology centers and provincial key laboratories, combining independent R&D with collaborative R&D to build a balanced "multi-platform" R&D system[29] 4. Key Initiatives During the Reporting Period In H1 2025, the company's revenue decreased by 22.65% to CNY 1.36 billion and net profit by 66.78% to CNY 43.38 million due to market competition, despite stable biopharmaceutical operations, while enhancing management, digital marketing, production, and R&D, securing new drug registrations and international certifications - During the reporting period, the company's biopharmaceutical business remained stable, but market competition for cephalosporin side-chain pharmaceutical intermediates and cephalosporin powder injections intensified, leading to decreased sales volume and prices[30][31] 2025 Semi-Annual Operating Performance | Indicator | Amount (CNY 100 Million) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 13.60 | -22.65% | | Net Profit Attributable to Shareholders | 0.4338 | -66.78% | - The company continued to improve its "strategic management headquarters + specialized business unit + lean factory" organizational structure and signed a product introduction agreement with UK women's health technology brand Theramex[31] - The marketing center continued to build a digital marketing platform, Jincheng Taier actively participated in centralized procurement, and sales of Glutathione and Ademetionine increased year-on-year[31][32] - The company strengthened quality management to benchmark international standards, established a DMF quality management system, and achieved zero safety production accidents and zero environmental management complaints[32] - R&D management capabilities improved, with 3 products including Bisoprolol Fumarate and Posaconazole Enteric-coated Tablets obtaining drug registration certificates, and Posaconazole API receiving an FA Letter from the US FDA[33][34] - The company deeply implemented "risk, internal control, and compliance integration" work, enhancing risk prevention and control capabilities and trade secret protection levels[34] 5. Local Centralized Procurement Bidding Results During the Reporting Period No new national centralized procurement bids were won, but Lornoxicam for Injection and Nifuratel Capsules were newly selected in local bids (not yet executed), while Nifuratel Nystatin Vaginal Soft Capsules and Nabumetone Dispersible Tablets had actual procurement volumes - The company's products had no new successful bids in national centralized procurement[36] - Lornoxicam for Injection and Nifuratel Capsules were newly selected in local centralized procurement, but have not yet been executed[36] H1 2025 Local Centralized Procurement Key Product Procurement Volume | Drug Name | Specification | Price (CNY/bottle/capsule/tablet) | Company Name | H1 2025 Total Actual Procurement Volume by Medical Institutions (Ten Thousand bottles/capsules/tablets) | | :--- | :--- | :--- | :--- | :--- | | Nifuratel Nystatin Vaginal Soft Capsules | Nifuratel 0.5g, Nystatin 200,000 units6 capsules/box | 3.45 | Jincheng Taier | 31.5 | | Nifuratel Nystatin Vaginal Soft Capsules | Nifuratel 0.5g, Nystatin 200,000 units12 capsules/box | 3.45 | Jincheng Taier | 101.52 | | Nifuratel Nystatin Vaginal Soft Capsules | Nifuratel 0.5g, Nystatin 200,000 units6 capsules/box | 2.99 | Jincheng Taier | 0.9 | | Nifuratel Nystatin Vaginal Soft Capsules | Nifuratel 0.5g, Nystatin 200,000 units12 capsules/box | 2.99 | Jincheng Taier | 194.184 | | Nabumetone Dispersible Tablets | 0.5g8 tablets/box | 4.14 | Jincheng Taier | 9.76 | | Levofloxacin Tablets | 0.5g18 tablets/box 0.25g*30 tablets/box | 0.79、0.46 | Jincheng Suzhi | 12.6 | 6. Drug Registration Application Status During the Reporting Period 8 products, including Cefotaxime Sodium for Injection and Posaconazole Enteric-coated Tablets, received drug registration certificates, Posaconazole API obtained US FDA approval, and Erythromycin Lactobionate API was approved in August 2025, with other products under review or supplementary research - 8 products, including Cefotaxime Sodium for Injection, Cefazolin Sodium for Injection, Bisoprolol Fumarate, and Posaconazole Enteric-coated Tablets, have obtained drug registration certificates[35][37] - Posaconazole API received an FA Letter from the US FDA, and Erythromycin Lactobionate API was approved in August 2025[37] - Minocycline Hydrochloride for Injection obtained clinical trial approval, and several products including Ademetionine Butanedisulfonate Enteric-coated Tablets, Glutathione, and Ademetionine Butanedisulfonate are under review or supplementary research, with active overseas registration efforts[37][38] 7. Patents Applied For During the Reporting Period During the reporting period, the company applied for 16 patents, including invention and utility model patents, covering pharmaceutical preparation methods, enzyme mutants, environmental equipment, detection methods, continuous production devices, and lyophilization processes, demonstrating continuous innovation in pharmaceutical chemicals and biotechnology - The company applied for a total of 16 patents, including invention patents and utility model patents[39] - Patent content covers Cefadroxil capsule preparation, imine reductase mutants, hazardous waste incinerators, HPLC detection methods, carbapenem intermediate production devices, and Erythromycin Lactobionate lyophilization processes[39] 8. Patents Granted During the Reporting Period During the reporting period, 4 invention patents were granted, including methods for producing astaxanthin using Yarrowia lipolytica, curcumin/dihydrocurcumin reductase mutants, ceftazidime side-chain acid ethyl ester synthesis, and continuous production of carbapenem intermediate 4-AA - The company had 4 invention patents approved[40] - Approved patents include "A method for engineered Yarrowia lipolytica to produce astaxanthin" and "Continuous production device and method for carbapenem intermediate 4-AA" etc[40] 9. Changes in National Medical Insurance Drug Catalog During the Reporting Period During the reporting period, there were no changes in the inclusion or exclusion of the company's products from the National Medical Insurance Drug Catalog - During the reporting period, there were no changes in the inclusion or exclusion of the company's products from the National Medical Insurance Drug Catalog[41] Analysis of Core Competencies The company's core competencies span R&D, industrial scale, production operations, safety and environmental protection, and brand culture, featuring national-level R&D platforms, leading market shares in key products, robust manufacturing, and a strong brand reputation 1. Technological R&D Advantages The company leverages national-level R&D platforms and a three-tier innovation system, excelling in chemical synthesis of cephalosporin intermediates and carbapenem nuclei, and possessing nearly a hundred advanced synthetic biology technologies, including continuous flow reactions and enzyme-catalyzed chiral synthesis - The company possesses national-level enterprise technology centers, postdoctoral research workstations, and other R&D platforms, establishing a three-tier R&D innovation system encompassing independent innovation, collaborative innovation, and investment innovation[41] - In chemical synthesis, it has built a pharmaceutical chemical industry system primarily focused on cephalosporin pharmaceutical intermediates, carbapenem nuclei, specialty APIs, and new tobacco products[42] - Possesses nearly a hundred advantageous technologies, including continuous flow reaction technology, "chiral synthesis, anhydrous and anaerobic conditions, deep cryogenic high pressure, directed evolution of enzymes, cell factory construction, and fermentation metabolic regulation" etc[42] 2. Industrial and Scale Advantages The company, deeply rooted in pharmaceutical manufacturing and health industries, has a diversified business centered on cephalosporin intermediates and biopharmaceutical APIs, holding leading domestic market shares in these areas, supported by nine modern production bases with integrated manufacturing capabilities ensuring stable quality, controlled costs, and increased market share - The company has formed a diversified business system centered on cephalosporin pharmaceutical intermediates, biopharmaceuticals, and specialty APIs[42] - Domestic market share for cephalosporin pharmaceutical intermediates and Glutathione API consistently ranks among the top in the industry[42] - Nine modern production bases have been established, possessing integrated production capabilities for intermediates, APIs, and finished formulations[42] 3. Production and Operation Advantages The company continuously advances GMP, lean management, and EHS compliance, strengthening sales-centric operations and new productivity, boasting robust manufacturing and supply chain capabilities, supported by an experienced team with extensive expertise across product development, production, quality control, and sales - The company continuously promotes GMP, lean management, and EHS compliance, drives the development of new quality productive forces, and possesses strong manufacturing and supply chain assurance capabilities[43] - Possesses a highly professional and experienced management team, along with a skilled, cohesive, efficient, and stable workforce[43] - Has accumulated rich practical experience in product R&D, customization, production, testing, quality control, and sales[43] 4. Safety and Environmental Protection Advantages The company prioritizes safety, production, and environmental protection, enhancing automation and intelligence for standardized safety management and smart risk warnings, upgrading equipment to reduce personnel, and achieving green development through source reduction, process control, end-of-pipe treatment, and comprehensive utilization, with multiple subsidiaries recognized as national green factories - The company strengthens automation and intelligent transformation, achieving standardization and informatization of safety production management, as well as intelligent personnel positioning and smart risk early warning[43] - Achieves a green development mechanism of resource conservation, cost reduction, and efficiency improvement through source reduction, process control, end-of-pipe treatment, and comprehensive utilization[43] - Upgrades and transforms wastewater biochemical treatment systems, RTO exhaust gas treatment devices, etc., enhancing "three wastes" treatment capabilities, with multiple subsidiaries awarded national green factory titles[43] 5. Brand and Culture Advantages The company highly values brand and culture, promoting integrity, building a systematic corporate culture, establishing a "quick response, precise service" customer system, fostering long-term strategic partnerships with leading pharmaceutical companies, and developing comprehensive training and career paths to enhance employee cohesion and create tripartite value - The company highly values corporate and product brand building, advocates integrity in business operations, and has established a systematic corporate culture framework[44] - Has established a "quick response, precise service" customer service system and built long-term, stable strategic cooperative relationships with numerous excellent pharmaceutical companies[44] - Has established a comprehensive training system and career development channels, providing employees with broad development platforms and enhancing employee cohesion[44] Analysis of Main Business During the reporting period, main business revenue decreased by 22.65% due to reduced marketing expenses and lower exchange gains, with declining revenue and gross margins for most product lines, except for biopharmaceuticals and specialty APIs, which grew by 10.12% 1. Year-on-Year Changes in Key Financial Data During the reporting period, operating revenue decreased by 22.65%, sales expenses fell by 42.33%, financial expenses increased by 152.58% due to lower exchange gains, net operating cash flow decreased by 40.34%, and net financing cash flow declined by 193.42% due to bank loan repayments 2025 Semi-Annual Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (CNY) | Prior Year Same Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,360,240,655.35 | 1,758,578,253.52 | -22.65% | | | Operating Cost | 868,771,753.18 | 1,044,273,476.63 | -16.81% | | | Selling Expenses | 160,343,056.86 | 278,049,225.02 | -42.33% | Primarily due to reduced market promotion and maintenance fees during the reporting period | | Financial Expenses | 1,049,619.83 | -1,996,378.83 | 152.58% | Primarily due to reduced exchange gains during the reporting period | | Net Cash Flow from Operating Activities | 104,367,911.57 | 174,951,312.54 | -40.34% | Primarily due to decreased acceptance collection and reduced cash receipts from lower revenue during the reporting period | | Net Cash Flow from Financing Activities | -263,541,230.81 | -89,816,089.74 | -193.42% | Primarily due to bank loan repayments during the reporting period | | Net Increase in Cash and Cash Equivalents | -184,326,987.06 | 65,284,463.89 | -382.34% | Primarily due to the combined impact of financing, operating, and investing activities | - The company's profit structure or sources of profit did not undergo significant changes during the reporting period[46] 2. Products or Services Accounting for Over 10% of Revenue Revenue from cephalosporin side-chain active esters, finished formulations, and other pharmaceutical chemicals declined with reduced gross margins, while biopharmaceuticals and specialty APIs saw a 10.12% revenue increase despite a 5.41% gross margin decrease 2025 Semi-Annual Key Products or Services Overview | Product or Service | Operating Revenue | Operating Cost | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cephalosporin Side-Chain Active Ester Series Products | 297,598,253.09 | 208,729,497.07 | 29.86% | -32.20% | -27.73% | -4.35% | | Biopharmaceuticals and Specialty API Series Products | 230,198,218.45 | 124,336,244.48 | 45.99% | 10.12% | 22.38% | -5.41% | | Finished Formulation Products | 470,458,142.79 | 234,326,679.06 | 50.19% | -29.04% | -18.24% | -6.59% | | Other Pharmaceutical Chemical Products | 361,986,041.02 | 301,379,332.57 | 16.74% | -19.12% | -17.94% | -1.20% | Analysis of Non-Core Business During the reporting period, the company had no non-core business analysis - The company had no non-core business analysis during the reporting period[48] Analysis of Assets and Liabilities At the end of the reporting period, total assets decreased by 5.74%, and net assets attributable to shareholders by 1.84%, with declines in cash, accounts receivable, and long-term borrowings, but increases in short-term borrowings, construction in progress, and inventory; fair value financial assets totaled CNY 281 million, financial liabilities CNY 36,800, and some assets were restricted 1. Significant Changes in Asset Composition At the end of the reporting period, total assets were CNY 5.283 billion, a 5.74% decrease from the prior year-end, with declines in cash, accounts receivable, and long-term borrowings, but increases in short-term borrowings, construction in progress, and inventory 2025 Semi-Annual Changes in Asset Composition | Item | Amount at End of Current Reporting Period (CNY) | Percentage of Total Assets | Amount at Prior Year-End (CNY) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 753,869,136.82 | 14.27% | 917,670,953.09 | 16.37% | -2.10% | | Accounts Receivable | 439,242,781.79 | 8.31% | 570,531,842.57 | 10.18% | -1.87% | | Inventories | 605,789,334.94 | 11.47% | 598,863,558.41 | 10.68% | 0.79% | | Fixed Assets | 2,142,456,505.74 | 40.55% | 2,228,579,550.89 | 39.76% | 0.79% | | Construction in Progress | 116,208,742.07 | 2.20% | 73,332,415.73 | 1.31% | 0.89% | | Short-term Borrowings | 114,070,413.90 | 2.16% | 55,039,277.50 | 0.98% | 1.18% | | Long-term Borrowings | 246,393,048.92 | 4.66% | 351,994,368.71 | 6.28% | -1.62% | 2. Major Overseas Assets During the reporting period, the company had no major overseas assets - The company had no major overseas assets during the reporting period[50] 3. Assets and Liabilities Measured at Fair Value At the end of the reporting period, financial assets measured at fair value totaled CNY 280.92 million, primarily other equity instrument investments and accounts receivable financing, while financial liabilities totaled CNY 36,821.31, with "other changes" in accounts receivable financing due to bank acceptance bills received from sales 2025 Semi-Annual Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gains/Losses for Current Period (CNY) | Accumulated Fair Value Changes Recognized in Equity (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold in Current Period (CNY) | Other Changes (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets | | | | | | | | | Financial Assets Held for Trading | | | | 490,000,000.00 | 490,000,000.00 | | | | Derivative Financial Assets | 107,044.84 | 106,455.71 | | | 213,500.55 | | 0.00 | | Other Equity Instrument Investments | 164,611,500.47 | | 69,774,000.47 | | | | 162,511,500.47 | | Accounts Receivable Financing | 105,029,422.47 | | | | | 13,382,090.79 | 118,411,513.26 | | Total Above | 269,747,967.78 | 106,455.71 | 69,774,000.47 | 490,000,000.00 | 490,213,500.55 | 13,382,090.79 | 280,923,013.73 | | Financial Liabilities | 0.00 | 36,821.31 | | | | | 36,821.31 | - "Other changes" in accounts receivable financing are due to bank acceptance bills received from sales of goods and services during the reporting period[52] - The measurement attributes of the company's major assets did not undergo significant changes during the reporting period[53] 4. Asset Restrictions as of the End of the Reporting Period As of the end of the reporting period, details of restricted assets are provided in Financial Report Note VII, Consolidated Financial Statement Items Annotation 20, Assets with Restricted Ownership or Use Rights - Details of asset restrictions are provided in Section VIII Financial Report, VII. Consolidated Financial Statement Items Annotation 20, Assets with Restricted Ownership or Use Rights[53] Analysis of Investment Status During the reporting period, investments surged by 1253.89% to CNY 101 million, with no major equity or non-equity investments; fair value financial assets totaled CNY 163 million; entrusted wealth management amounted to CNY 490 million, and hedging derivative investments, with USD 1.32 million in forward foreign exchange contracts, resulted in a CNY -143,900 fair value change, effectively mitigating exchange rate risk 1. Overall Situation During the reporting period, the company's investment amounted to CNY 101 million, representing a 1253.89% increase compared to the same period last year Investment Amount During the Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount in Current Reporting Period | 101,000,000.00 | | Investment Amount in Prior Year Same Period | 7,460,000.00 | | Change Percentage | 1,253.89% | 2. Significant Equity Investments Acquired During the Reporting Period During the reporting period, the company had no significant equity investments - The company had no significant equity investments during the reporting period[55] 3. Significant Non-Equity Investments in Progress During the Reporting Period During the reporting period, the company had no significant non-equity investments - The company had no significant non-equity investments during the reporting period[55] 4. Financial Assets Measured at Fair Value At the end of the reporting period, financial assets measured at fair value totaled CNY 162.51 million, primarily comprising funds and other financial derivatives, with a fair value change loss of CNY 1.99 million for the current period 2025 Semi-Annual Financial Assets Measured at Fair Value | Item | Cost (CNY) | Value Change Gains/Losses (CNY) | Accumulated Fair Value Changes Recognized in Equity (CNY) | Amount Purchased (CNY) | Amount Sold (CNY) | Gains (CNY) | Ending Balance (CNY) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funds | 20,000,000.00 | | 14,338,973.59 | | | | 34,338,973.59 | Own Funds | | Other | 72,737,500.00 | -2,100,000.00 | 55,435,026.88 | | | 4,425,362.89 | 128,172,526.88 | Own Funds | | Financial Derivatives | | 106,455.71 | | | 213,500.55 | 213,500.55 | 0.00 | Own Funds | | Other | | | | 490,000,000.00 | 490,000,000.00 | 552,880.31 | | Own Funds | | Total | 92,737,500.00 | -1,993,544.29 | 69,774,000.47 | 490,000,000.00 | 490,213,500.55 | 5,191,743.75 | 162,511,500.47 | -- | 5. Use of Raised Funds During the reporting period, the company had no use of raised funds - The company had no use of raised funds during the reporting period[58] 6. Entrusted Wealth Management, Derivative Investments, and Entrusted Loans During the reporting period, entrusted wealth management amounted to CNY 490 million with no outstanding balance; hedging derivative investments included USD 1.32 million in forward foreign exchange contracts, resulting in a CNY -143,900 fair value change, effectively mitigating exchange rate risk, and no entrusted loans were present 2025 Semi-Annual Entrusted Wealth Management Overview | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (CNY Ten Thousand) | Outstanding Balance (CNY Ten Thousand) | Overdue Unrecovered Amount (CNY Ten Thousand) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 49,000 | 0 | 0 | | Total | | 49,000 | 0 | 0 | - The company had no significant, low-safety, or illiquid high-risk entrusted wealth management products during the reporting period, nor any situations where principal was expected to be unrecoverable or impaired[60] 2025 Semi-Annual Derivative Investments for Hedging Purposes | Derivative Investment Type | Initial Investment Amount (CNY Ten Thousand) | Beginning Balance (CNY Ten Thousand) | Fair Value Change Gains/Losses for Current Period (CNY Ten Thousand) | Amount Purchased During Reporting Period (CNY Ten Thousand) | Amount Sold During Reporting Period (CNY Ten Thousand) | Ending Balance (CNY Ten Thousand) | Proportion of Ending Investment Amount to Company's Net Assets at Reporting Period End | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |