四方科技(603339) - 2025 Q2 - 季度财报

Important Notice This section outlines key declarations and disclaimers regarding the report's authenticity, board attendance, audit status, financial statements, profit distribution, forward-looking statements, related party transactions, and major risks Statement on Report Authenticity The board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, ensuring no false records, misleading statements, or major omissions, and assume individual and joint legal liabilities[3] Board Attendance All company directors attended the board of directors meeting - All company directors attended the board of directors meeting[4] Audit Status This semi-annual report has not been audited - This semi-annual report has not been audited[5] Financial Report Statement Company head Huang Jie, accounting supervisor Huang Xinying, and accounting manager Huang Xinying declare the financial report's truthfulness, accuracy, and completeness - Company head Huang Jie, accounting supervisor Huang Xinying, and accounting manager Huang Xinying declare the truthfulness, accuracy, and completeness of the financial report in the semi-annual report[5] Profit Distribution Plan No profit distribution or capital reserve capitalization plan is applicable for this reporting period - The profit distribution plan or capital reserve capitalization plan for this reporting period approved by the board of directors is not applicable[6] Forward-Looking Statements Risk Disclaimer Forward-looking statements in this report do not constitute a substantive commitment to investors, who should be aware of investment risks - The forward-looking descriptions in this report, such as future plans and development strategies, do not constitute a substantive commitment by the company to investors; investors are advised to be aware of investment risks[6] Non-Operating Fund Occupation by Controlling Shareholder and Related Parties The company has no non-operating fund occupation by controlling shareholders or other related parties - The company has no non-operating fund occupation by controlling shareholders or other related parties[7] External Guarantees in Violation of Procedures The company has not provided external guarantees in violation of prescribed decision-making procedures - The company has not provided external guarantees in violation of prescribed decision-making procedures[7] Directors' Guarantee on Report Authenticity No situation exists where more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company has no situation where more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the disclosed semi-annual report[7] Major Risk Warning The company faces significant risks including macroeconomics, market, international trade, raw material prices, product prices, exchange rates, and safety, urging investors to be aware of investment risks - The company has detailed the macroeconomic risks, market risks, international trade environment risks, raw material price fluctuation risks, product price risks, exchange rate risks, and safety risks in this report, reminding investors to be aware of investment risks[7] Definitions This section provides definitions for key terms and entities used throughout the report, ensuring clarity and consistent understanding of the content Definitions of Common Terms This section lists the definitions of common terms used in the report, including company names, subsidiary names, regulatory bodies, and the reporting period, to ensure clear understanding of the content - The reporting period is defined as January 1, 2025, to June 30, 2025[12] Definitions of Common Terms | Term | Definition | | | :--- | :--- | :--- | | Company, the Company, Sifang Technology | Refers to | Sifang Technology Group Co., Ltd | | Sifang Tank Storage | Refers to | Nantong Sifang Tank Container Manufacturing Co., Ltd | | Sifang Hong Kong | Refers to | NTTANK(HK)LIMITED | | Sifang Star (Shanghai) | Refers to | Sifang Star (Shanghai) Cold Chain Technology Co., Ltd | | Sifang Energy Saving | Refers to | Nantong Sifang Energy Saving Technology Co., Ltd | | Sifang Engineering | Refers to | Nantong Sifang Refrigeration Engineering Co., Ltd | | Jesco | Refers to | Jesco (Shanghai) Food Machinery Technology Co., Ltd | | CSRC, China Securities Regulatory Commission | Refers to | China Securities Regulatory Commission | | SSE | Refers to | Shanghai Stock Exchange | | Company Law | Refers to | Company Law of the People's Republic of China | | Securities Law | Refers to | Securities Law of the People's Republic of China | | Board of Directors | Refers to | Board of Directors of Sifang Technology Group Co., Ltd | | Supervisory Board | Refers to | Supervisory Board of Sifang Technology Group Co., Ltd | | Reporting Period, This Period | Refers to | January 1, 2025 - June 30, 2025 | Company Profile and Key Financial Indicators This section presents the company's fundamental information, contact details, recent changes, stock overview, and a summary of its key accounting data and financial performance indicators Company Information This section provides the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Sifang Technology Group Co., Ltd, and its legal representative is Huang Jie[14] Contact Person and Information This section lists the contact information for the company's Board Secretary, including name, address, phone, fax, and email - The Board Secretary is Huang Xinying, with the contact address at 1180 Jianghai Avenue, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province, and email zqb@ntsquare.com[15] Brief Introduction to Changes in Basic Information The company's registered address changed on April 19, 2024, from "3888 Jintong Road, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province" to "1180 Jianghai Avenue, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province" - The company's registered address changed to 1180 Jianghai Avenue, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province on April 19, 2024[16] Brief Introduction to Changes in Information Disclosure and Document Custody Locations The company designates Shanghai Securities News, China Securities Journal, and Securities Times for information disclosure, with the semi-annual report published on www.sse.com.cn and available at the company's Securities Affairs Department - The company's designated information disclosure newspapers are Shanghai Securities News, China Securities Journal, and Securities Times, the website for publishing the semi-annual report is www.sse.com.cn, and the company's semi-annual report is available at the Securities Affairs Department[18] Company Stock Profile The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation "Sifang Technology" and stock code 603339, previously "Sifang Cold Chain" Company Stock Profile | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Sifang Technology | 603339 | Sifang Cold Chain | Company's Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue decreased by 14.53% year-on-year, net profit attributable to shareholders decreased by 47.82%, but net cash flow from operating activities significantly increased by 337.55% Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 861,462,656.59 | 1,007,874,939.73 | -14.53 | | Total Profit (RMB) | 76,935,818.88 | 155,858,253.39 | -50.64 | | Net Profit Attributable to Shareholders of the Listed Company (RMB) | 69,319,227.58 | 132,849,984.40 | -47.82 | | Net Cash Flow from Operating Activities (RMB) | 218,757,751.84 | -92,088,308.10 | 337.55 | | Net Assets Attributable to Shareholders of the Listed Company (RMB) | 2,570,130,086.97 | 2,567,900,459.73 | 0.09 | | Total Assets (RMB) | 3,385,211,254.14 | 3,321,746,084.79 | 1.91 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.22 | 0.43 | -48.84 | | Diluted Earnings Per Share (RMB/share) | 0.22 | 0.43 | -48.84 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (RMB/share) | 0.21 | 0.39 | -46.15 | | Weighted Average Return on Net Assets (%) | 2.73 | 5.28 | Decrease of 2.55 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 2.55 | 4.83 | Decrease of 2.28 percentage points | Non-Recurring Gains and Losses Items and Amounts The company's non-recurring gains and losses totaled RMB 4.75 million in the first half of 2025, primarily from government subsidies and fair value changes of financial assets Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government subsidies included in current profit and loss | 1,585,295.74 | | Gains and losses from fair value changes of financial assets and financial liabilities, and disposal of financial assets and financial liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 3,905,991.71 | | Other non-operating income and expenses apart from the above | 93,510.00 | | Less: Income tax impact | 837,719.61 | | Total | 4,747,077.84 | Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, main business operations, core competitiveness, and significant financial performance during the reporting period, along with risk management strategies Description of the Company's Industry and Main Business in the Reporting Period The company primarily engages in R&D, production, and sales of cold chain equipment and tank containers. The cold chain equipment industry benefits from consumption upgrades and rural revitalization, with expanding market demand; the tank container industry faces short-term pressure from macroeconomics and the downstream chemical industry but sees growth opportunities from multimodal transport policies Company's Industry Situation The cold chain equipment industry, widely used in food, medicine, and chemicals, including quick-freezing equipment, cold storage projects, heat exchangers, and insulation materials, benefits from consumption upgrades and policy promotion, leading to continuous market expansion. The tank container industry faces short-term pressure due to global economic downturns and a sluggish chemical sector, but China's multimodal transport policies support its application in hazardous chemical transport, indicating continued market demand growth - With the deepening of resident consumption upgrades and rural revitalization strategies, demand in China's cold chain equipment market continues to expand, promising broader development space in the future[30] - The tank container industry is affected by international tensions, RMB exchange rate fluctuations, and weak consumption, slowing domestic manufacturing, but China's recent intensive multimodal transport support policies, such as the CPC Central Committee's "Opinions on Further Reducing Logistics Costs" encouraging tank container use in hazardous chemical transport, led to a 10.7% year-on-year increase in total transport volume to 606,000 TEU by Chinese tank container operators in 2024[32] Company's Main Business Situation The company's cold chain equipment business includes food quick-freezing equipment, heat exchangers, insulation materials, and cold storage projects, widely used in food processing and cold chain logistics. Its tank container business covers standard and special tank containers, serving chemical, energy, and food and beverage sectors - The company's cold chain equipment business products include freezing equipment primarily for food quick-freezing, heat exchanger equipment, insulation materials, and cold storage projects, widely used in the production, processing, storage, and entire cold chain logistics of aquatic products, meat, poultry, rice and flour products, baked goods, fruits and vegetables, pre-made dishes, various prepared foods, snack foods, and ice cream[34] - The company's tank container business products include standard tank containers and special tank containers, such as ISO tank containers, refrigeration unit/heating tank containers, hydrofluoric acid tank containers, high-purity liquid ammonia tank containers, lined tank containers, extra-long and extra-wide containers, T20/T22 tank containers, gas tank containers, 30-39KL tank containers, offshore tank containers, and intermediate bulk containers (IBCs), used in logistics for chemicals, energy, and food and beverages[38] Discussion and Analysis of Operations In the first half of 2025, the company's cold chain equipment business saw gradual domestic market recovery and continued export growth, while strengthening EPC and cold storage engineering services. The tank container business, despite macroeconomic pressures, actively responded by promoting special tank containers and expanding into Southeast Asian and Middle Eastern markets. In technology R&D, 32 new intellectual property authorizations were obtained, and the company participated in developing several national and industry standards. Construction of special tank container expansion and LNG new material projects progressed steadily - In cold chain equipment business, the domestic market, driven by consumption upgrades, industrial structure optimization, and favorable policies, is gradually recovering and showing an improving trend, while exports continue to grow, with multiple new products successfully entering overseas markets, further enhancing the "Sifang" brand's international recognition[38] - In tank container business, the company accelerated market promotion of new special tank container products and intensified market development in domestic, Southeast Asian, and Middle Eastern regions, providing small-batch, multi-variety special tank container solutions for high-end application industries like lithium batteries and semiconductors, continuously exploring new customers[39][40] - During the reporting period, the company obtained 32 new intellectual property authorizations, including 5 invention patents and 27 utility model patents; it filed 24 new intellectual property applications, including 3 invention patents, 20 utility model patents, and 1 design patent. As of the end of the reporting period, the company held 408 valid intellectual properties, including 91 invention patents[40] - During the reporting period, two key group standards, T/CITS238-2025 "Test Method for Daily Evaporation Rate of Cryogenic Liquid Hydrogen Storage Containers" and T/CITS277-2025 "Technical Specification for Cryogenic Liquid Hydrogen Storage Systems," in which the company participated, were officially released, providing technical support for the liquid hydrogen storage and transportation industry. Concurrently, the national standard GB/T45580-2025 "Safety Technical Requirements for Road Transport Metal Movable Tank Containers for Liquid Dangerous Goods," with the company's deep involvement, was officially released on April 25 and implemented from August 1[40] - In project construction, the company's special tank container expansion project progressed steadily. The automated powder coating line completed single-unit equipment debugging and is about to undergo whole-line joint debugging. The LNG new material project completed the installation and debugging of the LNG enhanced polyurethane foam production line and the civil engineering for the automated warehouse and IP insulation board processing workshop[41] Analysis of Core Competitiveness in the Reporting Period The company's core competitiveness lies in its robust R&D platform, strong customer relationships, quality assurance mechanism based on craftsmanship, benchmark management system under the excellence performance model, flexible and efficient employment mechanism, and comprehensive processing capabilities with advanced production facilities - The company has a Technology Research Institute, Jiangsu Quick-Freezing Equipment Engineering Technology Research Center, Jiangsu Tank Container Storage and Transportation Equipment Engineering Technology Research Center, and Nantong Green Energy-Saving Board Engineering Technology Research Center, and collaborates with multiple renowned universities, possessing strong R&D and manufacturing capabilities[42] - The company utilizes a comprehensive 4S customer service mechanism and CRM customer relationship management information system to track customer equipment usage data in real-time, providing proactive overall service solutions and remote diagnostic systems, earning high market reputation in the industry[42] - The company focuses on employee skill training and quality awareness enhancement, improving production efficiency and product quality through layout adjustments, equipment upgrades, and process innovation, and has obtained numerous domestic and international product certifications, including EU Pressure Equipment PED certification, EU Safety Certification CE, ASME U, U2, and R stamp qualifications, and China C2 mobile pressure vessel design and manufacturing qualifications[43][44] - The company continuously implements the excellence performance management system, deepens organizational self-assessment, promotes efficient integration of various internal management systems and methods, enhances enterprise management advantages and opportunity identification capabilities, optimizes internal management processes, and improves management efficiency[44] - The company establishes skill master studios, organizes "Sifang Cup" skill competitions, implements skill talent grading, and establishes internal technical title evaluation mechanisms, integrating employee skill improvement with organizational performance, personal development, compensation systems, mentorship, and quality exemption, fostering a robust talent development mechanism[45] - The company continuously invests in technological upgrades, phasing out high-energy-consumption, low-efficiency equipment, and introducing numerous automated devices such as automatic feeding CNC lathes, laser tube cutting machines, large-workbench laser flat cutting machines, high-precision CNC bending machines, high-speed automatic sawing machines, and high-speed automatic punching machines, forming multiple automated production lines to enhance processing capabilities and product quality[45] Major Operating Performance in the Reporting Period In the first half of 2025, the company's operating revenue decreased by 14.53% year-on-year, operating costs decreased by 9.05%, and total profit decreased by 50.64%. Financial expenses significantly reduced by 692.38% due to exchange rate fluctuations. Net cash flow from operating activities surged by 337.55% due to reduced cash payments for goods. Net cash flow from investing activities sharply declined by 292.16% due to increased purchases of structured deposits. On the asset side, trading financial assets and construction in progress significantly increased, while accounts receivable and notes receivable also grew. On the liability side, short-term and long-term borrowings increased, and derivative financial liabilities decreased Main Business Analysis Current period operating revenue decreased by 14.53% year-on-year, operating costs decreased by 9.05%, and total profit decreased by 50.64%. Financial expenses significantly reduced by 692.38% year-on-year due to changes in exchange gains and losses from exchange rate fluctuations. Net cash flow from operating activities surged by 337.55% due to reduced cash payments for goods. Net cash flow from investing activities sharply declined by 292.16% due to increased purchases of structured deposits. Net cash flow from financing activities increased by 74.30% due to increased borrowings and reduced other cash payments related to financing activities Financial Statement Related Items Fluctuation Analysis Table (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 861,462,656.59 | 1,007,874,939.73 | -14.53 | | Operating Cost | 687,839,051.78 | 756,272,282.51 | -9.05 | | Selling Expenses | 19,075,676.58 | 18,173,560.13 | 4.96 | | Administrative Expenses | 35,985,359.94 | 35,797,129.99 | 0.53 | | Financial Expenses | -3,669,163.07 | 619,395.67 | -692.38 | | R&D Expenses | 41,192,797.64 | 46,269,766.45 | -10.97 | | Net Cash Flow from Operating Activities | 218,757,751.84 | -92,088,308.10 | 337.55 | | Net Cash Flow from Investing Activities | -320,735,040.79 | 166,907,054.40 | -292.16 | | Net Cash Flow from Financing Activities | -30,750,348.01 | -119,656,025.32 | 74.30 | - Explanation for financial expenses change: Due to exchange rate fluctuations, resulting in changes in exchange gains and losses[46] - Explanation for net cash flow from operating activities change: Due to reduced cash payments for goods in the current period[47] - Explanation for net cash flow from investing activities change: Due to increased purchases of structured deposits in the current period[47] - Explanation for net cash flow from financing activities change: Due to increased cash received from borrowings and reduced other cash payments related to financing activities in the current period[47] Analysis of Assets and Liabilities At period-end, trading financial assets increased by 60.17% to RMB 480.5 million, mainly due to increased structured deposits. Accounts receivable and notes receivable grew by 65.46% and 65.26% respectively, primarily due to moderately relaxed customer credit policies and increased notes receivable. Construction in progress increased by 57.57% to RMB 310.26 million. Short-term borrowings increased by 200% to RMB 0.3 million, and long-term borrowings increased by RMB 40.62 million. Derivative financial liabilities decreased by 100% to RMB 0, and taxes payable decreased by 48.64% Asset and Liability Status Fluctuation (2025 Period-End vs. Prior Year-End) | Item Name | Current Period-End Amount (RMB) | Current Period-End % of Total Assets | Prior Year-End Amount (RMB) | Prior Year-End % of Total Assets | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 480,500,000.00 | 14.19 | 300,000,000.00 | 9.03 | 60.17 | Mainly due to increased structured deposits in the current period | | Accounts Receivable | 99,473,391.03 | 2.94 | 60,119,448.20 | 1.81 | 65.46 | Mainly due to moderately relaxed customer credit policies in the current period | | Notes Receivable Financing | 5,691,166.94 | 0.17 | 3,443,804.50 | 0.10 | 65.26 | Mainly due to increased notes receivable in the current period | | Other Current Assets | 6,614,506.63 | 0.20 | 17,992,741.62 | 0.54 | -63.24 | Mainly due to decreased input VAT to be deducted in the current period | | Construction in Progress | 310,257,973.43 | 9.17 | 196,902,217.49 | 5.93 | 57.57 | Mainly due to increased construction in progress in the current period | | Short-term Borrowings | 300,000.00 | 0.01 | 100,000.00 | 0.00 | 200.00 | Mainly due to increased short-term borrowings in the current period | | Derivative Financial Liabilities | 0 | 0 | 3,771,969.80 | 0.11 | -100.00 | Mainly due to fair value changes of cash flow hedging instruments in the current period | | Taxes Payable | 10,798,087.93 | 0.32 | 21,023,967.12 | 0.63 | -48.64 | Mainly due to decreased income tax payable in the current period | | Long-term Borrowings | 40,615,790.00 | 1.20 | 0 | 0 | N/A | Mainly due to increased bank loans in the current period | - Other monetary funds of RMB 43 million at period-end are restricted as letter of credit margin[49] Other Disclosure Matters The company faces multiple risks including macroeconomics, market competition, international trade environment, raw material price fluctuations, product prices, exchange rates, and safety. The company actively responds by optimizing product structure, developing new products, strengthening supplier cooperation, cost control, hedging, and enhancing safety production management - The company faces macroeconomic risks, market risks, international trade environment risks, raw material price fluctuation risks, product price risks, exchange rate risks, and safety risks[54][55][56] - The company addresses various risks by optimizing product structure, developing new products, strengthening strategic cooperation with suppliers, improving material utilization and design process levels, preparing order cost budgets in advance, maintaining sales prices linked to major raw material prices, actively conducting foreign exchange hedging and other hedging operations for risk exposure management, and increasing investment in safety production and safety information construction[54][55][56] Corporate Governance, Environment and Society This section details the company's profit distribution plans, environmental information disclosure, and efforts in consolidating poverty alleviation achievements and rural revitalization, reflecting its governance and social responsibility Profit Distribution or Capital Reserve Capitalization Plan The company will not carry out profit distribution or capital reserve capitalization for the first half of 2025 - This semi-annual report does not include a profit distribution plan or capital reserve capitalization plan[6] Semi-Annual Proposed Profit Distribution Plan, Capital Reserve Capitalization Plan | Item | Value | | :--- | :--- | | Is there a distribution or capitalization | No | | Number of bonus shares per 10 shares (shares) | 0 | | Dividend per 10 shares (RMB) (tax inclusive) | 0 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law One of the company's subsidiaries, Nantong Sifang Tank Container Manufacturing Co., Ltd., is on the list of enterprises required to disclose environmental information by law, and its environmental information disclosure report can be found on the Jiangsu Provincial online platform - One of the company's subsidiaries, Nantong Sifang Tank Container Manufacturing Co., Ltd., is included in the list of enterprises required to disclose environmental information by law, and its environmental information disclosure report can be found on the Jiangsu Provincial online platform[59][60] Specifics of Consolidating Poverty Alleviation Achievements, Rural Revitalization, and Other Work The company actively fulfills its social responsibilities, investing a total of RMB 94,537 in the first half of 2025 for rural revitalization, education assistance, and elderly care, including visiting nursing homes, donating scholarships, and assisting impoverished students - The company actively fulfills its social responsibilities, continuously carrying out public welfare activities such as rural revitalization, education assistance, and elderly care, with a total investment of RMB 94,537 in the first half of the year[60] - This includes: conducting special visiting activities for nursing homes, donating living supplies totaling RMB 16,000; supporting rural education development, donating scholarships of RMB 60,000 to Xingren and Xingdong primary and secondary schools; precisely assisting impoverished students, distributing relief funds of RMB 3,000; and investing RMB 15,537 in targeted assistance, subsidies for needy individuals, and other public welfare projects[60] Important Matters This section covers the company's fulfillment of commitments, integrity status of key parties, and major related party transactions, highlighting significant events and compliance aspects Fulfillment of Commitments The company and its actual controller Huang Jie strictly fulfilled commitments related to the initial public offering of shares during the reporting period, including prospectus authenticity and avoiding horizontal competition, all performed on schedule and strictly - The company commits that the "Nantong Sifang Cold Chain Equipment Co., Ltd. Initial Public Offering Prospectus" contains no false records, misleading statements, or major omissions, and the company assumes legal responsibility for its truthfulness, accuracy, and completeness. If the prospectus and its summary contain false records, misleading statements, or major omissions, leading to the company not meeting the legal issuance conditions, the company will repurchase all newly issued shares from its initial public offering at the issue price within 30 days from the date the China Securities Regulatory Commission identifies the relevant illegal facts. If ex-right or ex-dividend events occur after the company's listing, the aforementioned issue price and repurchase share quantity will be adjusted accordingly. If the prospectus contains false records, misleading statements, or major omissions, causing investors to suffer losses in securities transactions, the company will compensate investors for their losses in accordance with the law. This commitment is long-term effective and has been strictly fulfilled[62] - Actual controller Huang Jie commits that he and other enterprises in which he holds interests, excluding the company, will not produce or develop any products that compete or may compete with the company's products, nor directly or indirectly operate any businesses that compete or may compete with the company's businesses; if the company further expands its product and business scope, he and other enterprises in which he holds interests, excluding the company, will not compete with the company's expanded products or businesses; if competition arises with the company's expanded products or businesses, he and other enterprises in which he holds interests, excluding the company, will avoid horizontal competition by ceasing to produce or operate the competing businesses or products, or by incorporating the competing businesses into the company's operations, or by transferring the competing businesses to an unrelated third party. This commitment is long-term effective and has been strictly fulfilled[62][63] - Actual controller Huang Jie commits that if the "Nantong Sifang Cold Chain Equipment Co., Ltd. Initial Public Offering Prospectus" contains false records, misleading statements, or major omissions, he will use his controlling position in the joint-stock company to ensure that the joint-stock company initiates the repurchase of all newly issued shares from its initial public offering within 30 days after the China Securities Regulatory Commission identifies the relevant illegal facts, and will repurchase the shares publicly sold by him during this public offering at the issue price within the aforementioned period. If the prospectus contains false records, misleading statements, or major omissions, causing investors to suffer losses in securities transactions, he will compensate investors for their losses in accordance with the law. This commitment is long-term effective and has been strictly fulfilled[63] Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller in the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or large overdue debts[66] Major Related Party Transactions The company disclosed the execution of daily related party transactions for 2024 and the proposed daily related party transactions for 2025 in temporary announcements, which were approved by the board of directors, supervisory board, and general meeting of shareholders - On April 15, 2025, the company's Fifth Board of Directors' Second Meeting and Fifth Supervisory Board's Second Meeting reviewed and approved the "Proposal on the Execution of Daily Related Party Transactions in 2024 and the Estimated Daily Related Party Transactions in 2025"; on May 19, 2025, the company's 2024 Annual General Meeting of Shareholders reviewed and approved the "Proposal on the Execution of Daily Related Party Transactions in 2024 and the Estimated Daily Related Party Transactions in 2025"[67] Share Changes and Shareholder Information This section provides an overview of the company's share capital changes and detailed information on its shareholder structure, including the top ten shareholders and their relationships Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[72] Shareholder Information As of the end of the reporting period, the company had 20,693 common shareholders. Among the top ten shareholders, Huang Jie held 40.27% as the controlling shareholder, with family members Huang Xiaoying, Zhu Jianxin, Zhu Xiang, Huang Yingjie, Yang Yanping, and Huang Hua also listed. Yang Yanping and Huang Hua are Huang Jie's sisters, and Zhu Jianxin is Yang Yanping's spouse. The company's repurchase special account held 2.18% of the total share capital - As of the end of the reporting period, the total number of common shareholders was 20,693[72] Top Ten Shareholders' Shareholding (As of Report Period End) | Shareholder Name (Full Name) | Change During Reporting Period | Number of Shares Held at Period-End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Huang Jie | 0 | 124,596,915 | 40.27 | Domestic Natural Person | | Huang Xiaoying | 0 | 7,355,004 | 2.38 | Domestic Natural Person | | Zhu Jianxin | 0 | 7,006,792 | 2.26 | Domestic Natural Person | | Zhu Xiang | 0 | 5,680,098 | 1.84 | Domestic Natural Person | | Huang Yingjie | 544,000 | 3,744,000 | 1.21 | Domestic Natural Person | | Yang Yanping | 0 | 2,777,257 | 0.90 | Domestic Natural Person | | Huang Hua | 0 | 2,280,872 | 0.74 | Domestic Natural Person | | Ling Jiyun | 0 | 2,000,000 | 0.65 | Domestic Natural Person | | Qian Dan | 0 | 1,800,073 | 0.58 | Domestic Natural Person | | Chen Yun | 80,024 | 1,787,747 | 0.58 | Domestic Natural Person | - Among the above shareholders, Yang Yanping and Huang Hua are Huang Jie's sisters, and Zhu Jianxin is Yang Yanping's spouse. Apart from these, the company is unaware of any other related party relationships or concerted actions among shareholders[75] - As of the end of the reporting period, the company's repurchase special account held 6,756,756 shares, accounting for 2.18% of the company's total share capital[75] Bond-Related Information This section confirms the absence of corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company had no corporate bonds (including enterprise 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[78] Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[78] Financial Report This section presents the unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on accounting policies, taxes, and other financial details Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[79] Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow - Financial statements include 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][83][86][89][92][96][99][107] Company Basic Information Sifang Technology Group Co., Ltd. was registered on June 15, 2012, and listed on the Shanghai Stock Exchange on May 19, 2016, primarily engaged in manufacturing freezing equipment and tank container storage and transportation equipment. The company includes 6 subsidiaries in its consolidated financial statements for this period - Sifang Technology Group Co., Ltd. was wholly transformed from Nantong Freezing Equipment Co., Ltd., registered with the Nantong Administration for Industry and Commerce on June 15, 2012, and its shares were listed on the Shanghai Stock Exchange on May 19, 2016[111] - The company's business scope includes research, manufacturing, sales, installation, maintenance, and technical services for freezing equipment, non-standard equipment, heat exchange equipment, food machinery, tank container storage and transportation equipment, special containers, refrigerated containers, pressure vessels, new energy-saving building panels, cold storage, controlled atmosphere storage, and supporting doors and windows[111] - The company includes Nantong Sifang Tank Container Manufacturing Co., Ltd. and 5 other subsidiaries in the scope of consolidated financial statements for this period[112] 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 for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[113] - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[114] Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates for financial instrument impairment, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition, including adherence to accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, cash and cash equivalents, foreign currency transactions and translation, financial instruments, accounts receivable, inventories, contract assets, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, safety production fees, and hedge accounting - The financial statements prepared by the company comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows[116] - The company's operating cycle is short, and 12 months is used as the liquidity classification standard for assets and liabilities[118] - The company has formulated specific accounting policies and accounting estimates for transactions or events such as financial instrument impairment, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition based on its actual production and operation characteristics[115] Taxes The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, property tax, education surcharge, and local education surcharge. The company and its subsidiaries Sifang Tank Storage and Sifang Energy Saving enjoy a 15% corporate income tax preferential rate as high-tech enterprises. Sifang Refrigeration and Jesco enjoy a 20% corporate income tax preferential rate as small and micro-profit enterprises. The company's export goods VAT implements a "exemption, offset, and refund" policy Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services calculated according to tax laws, less deductible input VAT for the current period, with the difference being VAT payable | 13%, 9% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - The company, Sifang Tank Storage, and Sifang Energy Saving have been recognized as high-tech enterprises, and their corporate income tax is levied at a reduced rate of 15%[197] - The company's subsidiaries, Sifang Refrigeration and Jesco, qualify as small and micro-profit enterprises and pay corporate income tax at a rate of 20%[198] - The company's export goods VAT implements an "exemption, offset, and refund" tax policy[199] Notes to Consolidated Financial Statement Items This section provides detailed notes on various asset, liability, and owners' equity items in the consolidated financial statements, including monetary funds, trading financial assets, derivative financial assets, accounts receivable, contract assets, notes receivable financing, prepayments, other receivables, inventories, other current assets, construction in progress, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, restricted assets, short-term borrowings, derivative financial liabilities, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, other current liabilities, long-term borrowings, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, special reserves, retained earnings, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, supplementary cash flow information, and foreign currency monetary items Monetary Funds (Period-End vs. Period-Beginning) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 223,916.07 | 214,258.11 | | Bank Deposits | 471,875,423.88 | 602,904,565.25 | | Other Monetary Funds | 43,000,043.29 | 43,202,794.31 | | Total | 515,099,383.24 | 646,321,617.67 | Trading Financial Assets (Period-End vs. Period-Beginning) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Structured Deposits | 480,500,000.00 | 300,000,000.00 | | Total | 480,500,000.00 | 300,000,000.00 | Accounts Receivable (Period-End vs. Period-Beginning) | Category | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Provision for bad debts based on portfolio | 99,473,391.03 | 60,119,448.20 | | Total | 99,473,391.03 | 60,119,448.20 | Inventories (Period-End vs. Period-Beginning) | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Raw Materials | 349,788,699.23 | 379,799,543.25 | | Work in Progress | 121,997,795.22 | 123,795,000.95 | | Finished Goods | 290,738,631.63 | 298,119,022.78 | | Goods in Transit | 129,327,883.05 | 152,340,027.85 | | Materials in Transit | 26,634,814.13 | 83,856,121.31 | | Total | 918,487,823.26 | 1,037,909,716.14 | Construction in Progress (Period-End vs. Period-Beginning) | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | LNG Insulation System Enhanced Polyurethane Cryogenic Composite Material Project | 255,231,308.78 | 157,105,062.43 | | Special Tank Container Manufacturing Project | 53,744,327.05 | 34,349,119.20 | | Other Cold Chain Technical Transformation Projects | 1,282,337.60 | 5,448,035.86 | | Total | 310,257,973.43 | 196,902,217.49 | Long-term Borrowings (Period-End vs. Period-Beginning) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Credit Loans | 40,615,790.00 | 0 | | Total | 40,615,790.00 | 0 | Operating Revenue and Operating Cost (Current Period vs. Prior Period) | Item | Current Period Amount (Revenue) (RMB) | Current Period Amount (Cost) (RMB) | Prior Period Amount (Revenue) (RMB) | Prior Period Amount (Cost) (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 831,458,164.92 | 669,022,988.48 | 982,699,222.21 | 742,131,073.92 | | Other Business | 30,004,491.67 | 18,816,063.30 | 25,175,717.52 | 14,141,208.59 | | Total | 861,462,656.59 | 687,839,051.78 | 1,007,874,939.73 | 756,272,282.51 | Investment Income (Current Period vs. Prior Period) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Investment income from matured wealth management products | 3,905,991.71 | 12,769,205.08 | | Discount interest on notes receivable | -22,283.24 | -33,197.84 | | Total | 3,883,708.47 | 12,736,007.24 | R&D Expenses In the first half of 2025, the company's total R&D expenses were RMB 41.19 million, a year-on-year decrease of 10.97%, all expensed. The main components include direct labor, direct materials, fuel and power, depreciation, and amortization of intangible assets R&D Expenses (Current Period vs. Prior Period) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Direct Labor | 22,569,370.94 | 22,475,019.23 | | Direct Materials, Fuel and Power | 16,811,344.91 | 21,551,175.89 | | Depreciation and Amortization of Intangible Assets | 698,946.64 | 820,411.21 | | External R&D Investment | 208,446.60 | 0 | | Other Expenses | 904,688.55 | 1,423,160.12 | | Total | 41,192,797.64 | 46,269,766.45 | - All R&D expenditures in the current period were expensed, with no capitalized R&D expenditures[348] Changes in Consolidation Scope During the reporting period, the company had no changes in its consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company had no changes in its consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries[349][350] Equity in Other Entities The company owns 6 subsidiaries: Sifang Tank Storage, Sifang Hong Kong, Sifang Star, Sifang Energy Saving, Sifang Refrigeration, and Jesco, all with 100% ownership. Their business nature covers manufacturing, trade, R&D, construction and installation, and scientific research and technical services Subsidiary Information | Subsidiary Name | Main Operating Location | Registered Capital (RMB 10,000) | Business Nature | Shareholding Ratio (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Sifang Tank Storage Co., Ltd. | Nantong, Jiangsu | 20,000.00 | Manufacturing | 100.00 | Establishment | | Sifang Hong Kong Co., Ltd. | Hong Kong | 59.32 | Trade | 100.00 | Business Combination under Common Control | | Sifang Star (Shanghai) Co., Ltd. | Shanghai | 15,000.00 | Research and Experimental Development | 100.00 | Establishment | | Sifang Energy Saving Technology Co., Ltd. | Nantong, Jiangsu | 60,000.00 | Manufacturing | 100.00 | Establishment | | Sifang Refrigeration Engineering Co., Ltd. | Nantong, Jiangsu | 1,000.00 | Construction and Installation | 100.00 | Establishment | | Jesco (Shanghai) Food Machinery Technology Co., Ltd. | Shanghai | 1,000.00 | Scientific Research and Technical Services | 100.00 | Establishment | Government Grants The company report period received total government grants of RMB 1.94 million, including RMB 1.59 million related to income and RMB 0.36 million related to assets. The period-end balance of government grants in deferred income was RMB 21.25 million Liability Items Involving Government Grants (Deferred Income) | Statement Item | Period-Beginning Balance (RMB) | Increase in Current Period (RMB) | Included in Other Income (RMB) | Period-End Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 20,607,295.00 | 1,000,000.00 | 355,500.00 | 21,251,795.00 | Asset Related | Government Grants Included in Current Profit and Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Income Related | 1,585,295.74 | 198,525.00 | | Asset Related | 355,500.00 | 3,085,500.00 | | Total | 1,940,795.74 | 3,284,025.00 | Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (including interest rate risk and foreign exchange risk). The company manages these risks by depositing funds with highly-rated financial institutions, regularly assessing customer credit, optimizing financing structure, utilizing bank credit lines, and buying/selling foreign currencies. The company conducts foreign exchange hedging to offset exchange rate fluctuation risks and applies hedge accounting - The company faces various financial instrument-related risks in its daily activities, primarily including credit risk, liquidity risk, and market risk[354][358][359] - The company deposits bank deposits and other monetary funds with highly-rated financial institutions, regularly/continuously assesses the credit of customers trading on credit, comprehensively utilizes various financing methods such as bill settlement and bank loans, and adopts a combination of long-term and short-term financing, having obtained bank credit lines from multiple commercial banks. For foreign currency assets and liabilities, the company will buy and sell foreign currencies at market exchange rates when necessary to ensure net risk exposure is maintained at an acceptable level[357][358][360] - The company conducts foreign exchange hedging to offset risks and reduce fluctuations in enterprise profit and loss. The unexpired portion for the current period is included in other comprehensive income as RMB 3,258,218.03, and the expired portion for the current period is included in financial expenses as RMB 1,480,643.66[361][363] Financial Liabilities Classified by Remaining Maturity (Period-End) | Item | Book Value (RMB) | Undiscounted Contractual Amount (RMB) | Within 1 Year (RMB) | 1-3 Years (RMB) | Over 3 Years (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 40,915,790.00 | 44,225,873.36 | 300,000.00 | 12,688,352.31 | 31,237,521.05 | | Accounts Payable | 102,831,652.87 | 102,831,652.87 | 102,831,652.87 | 0 | 0 | | Other Payables | 9,284,416.57 | 9,284,416.57 | 9,284,416.57 | 0 | 0 | | Subtotal | 153,031,859.44 | 156,341,942.80 | 112,416,069.44 | 12,688,352.31 | 31,237,521.05 | Transfer of Financial Assets (Current Period) | Transfer Method | Nature of Transferred Financial Assets | Amount of Transferred Financial Assets (RMB) | Derecognition Status | Gains or Losses Related to Derecognition (RMB) | | :--- | :--- | :--- | :--- | :--- | | Bill Discounting | Notes Receivable Financing | 5,626,893.38 | Derecognized | -22,283.24 | | Bill Endorsement | Notes Receivable Financing | 7,297,637.33 | Derecognized | 0 | | Total | / | 12,924,530.71 | / | -22,283.24 | Fair Value Disclosure At period-end, the company's total assets measured at fair value on a recurring basis amounted to RMB 486.25 million, primarily including trading financial assets (derivative financial assets and structured deposits) and notes receivable financing. Derivative financial assets are measured using Level 1 fair value, while structured deposits and notes receivable financing use Level 2 fair value, with minor differences between their fair value and book value Fair Value of Assets and Liabilities Measured at Period-End | Item | Level 1 Fair Value Measurement (RMB) | Level 2 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets (Derivative Financial Assets) | 61,227.88 | 0 | 0 | 61,227.88 | | Trading Financial Assets (Structured Deposits) | 0 | 480,500,000.00 | 0 | 480,500,000.00 | | Notes Receivable Financing | 0 | 5,691,166.94 | 0 | 5,691,166.94 | | **Total Assets Measured at Fair Value