齐峰新材(002521) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The company's management affirms the report's authenticity and outlines the profit distribution plan and key risks - The Board of Directors, Supervisory Committee, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[5] - The company has described its risks in this report; investors should refer to "Section X, Company Risks and Countermeasures" in the Management Discussion and Analysis[5] - The proposed profit distribution plan is a cash dividend of CNY 1 (tax included) per 10 shares based on the current total share capital of 560,061,050 shares, with no bonus shares or conversion of capital reserve[5] Table of Contents This section lists the report's overall structure, including nine main chapters and their corresponding page numbers List of Documents for Inspection This section lists all important publicly disclosed documents during the reporting period, available at the company's securities department - Documents for inspection include financial statements signed by the company's legal representative, head of accounting, and head of the accounting department[10] - Documents also include the semi-annual report file signed by Chairman Mr. Li Andong[11] - Originals of all company documents and public announcements are available for inspection at the company's securities department[12][13] Definitions This section defines key terms used throughout the report, ensuring clarity on regulatory bodies, the company, and its subsidiaries - "The Company," "this Company," and "Qifeng New Material" all refer to Qifeng New Material Co, Ltd[14] - "Reporting Period" refers to the period from January 1, 2025, to June 30, 2025[14] - Major subsidiaries include Zibo Oumute Specialty Paper Co, Ltd, Shandong Boxing County Ouhua Specialty Paper Co, Ltd, and Shandong Huasha New Material Co, Ltd[14] Company Profile and Key Financial Indicators Company Profile Qifeng New Material (002521) is listed on the Shenzhen Stock Exchange, with recent changes in its legal representative and senior management Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Ticker | Qifeng New Material | | Stock Code | 002521 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 齐峰新材料股份有限公司 | | Legal Representative | Li Andong | - The company's legal representative was changed to Mr. Li Andong, Mr. Li Runsheng was appointed as General Manager, and Mr. Li Runsheng was also elected as a director of the sixth Board of Directors[20][21] Key Accounting Data and Financial Indicators The company's revenue and net profit declined year-over-year, while net cash flow from operating activities increased Key Accounting Data and Financial Indicators (Current Period vs Prior Year Period) | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,679,893,424.59 | 1,764,558,570.60 | -4.80% | | Net Profit Attributable to Shareholders | 63,076,980.15 | 109,038,517.33 | -42.15% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 51,029,119.86 | 98,835,548.77 | -48.37% | | Net Cash Flow from Operating Activities | 191,272,306.78 | 183,013,354.27 | 4.51% | | Basic Earnings Per Share | 0.11 | 0.22 | -50.00% | | Diluted Earnings Per Share | 0.11 | 0.22 | -50.00% | | Weighted Average Return on Equity | 1.57% | 2.88% | -1.31% | Balance Sheet Indicators (End of Current Period vs End of Prior Year) | Indicator | End of Current Period (CNY) | End of Prior Year (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,298,185,796.75 | 5,524,188,051.39 | -4.09% | | Net Assets Attributable to Shareholders | 3,911,440,167.18 | 4,016,381,502.03 | -2.61% | Differences in Accounting Data under Domestic and Foreign Accounting Standards There are no discrepancies in net profit or net assets between financial reports prepared under Chinese and international or foreign accounting standards - The company has no discrepancies in net profit and net assets between financial reports disclosed under IFRS and Chinese Accounting Standards (CAS)[23] - The company has no discrepancies in net profit and net assets between financial reports disclosed under foreign accounting standards and CAS[24] Non-recurring Profit and Loss Items and Amounts Total non-recurring profit and loss for the period was CNY 12,047,860.29, mainly from government grants and fair value changes Non-recurring Profit and Loss Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -9,682.13 | | Government Grants Recognized in Current Profit or Loss | 1,985,556.45 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets/Liabilities | 2,868,262.40 | | Reversal of Impairment Provision for Individually Tested Receivables | 2,475,977.08 | | Other Non-operating Income and Expenses | 7,120,480.64 | | Other Items Qualifying as Non-recurring Profit or Loss | 87,049.33 | | Less: Income Tax Impact | 2,383,260.94 | | Less: Minority Interest Impact (After Tax) | 96,522.54 | | Total | 12,047,860.29 | - During the reporting period, the company received a tax withholding handling fee of CNY 87,049.33, which was included in other items qualifying as non-recurring profit or loss[27] Management Discussion and Analysis Principal Business Activities during the Reporting Period The company is a leading producer of high-grade decorative base paper, with a product portfolio including latex paper and sanitary materials - The company operates in the specialty paper segment of the paper and paper products industry, characterized by high-tech, high-value-added products and specialized customers[30] - As a leader in the decorative base paper industry, the company holds over 200 national patents and has drafted nearly 10 national and industry standards[30] - The main product lines are decorative base paper (highest revenue share), latex paper, and personal sanitary materials; the company is the sole domestic producer of high and medium-grade latex paper[32][33] Core Competitiveness Analysis The company's core strengths lie in its technological leadership, optimized product structure, scale advantages, and digitalized manufacturing - The company leads in technology with 30 invention patents and continues to develop new products like digital printing decorative paper and pre-impregnated paper[34][35] - A dual-base layout in Shandong and Guangxi creates a strategic framework for global coverage, enhancing scale advantages in production, procurement, and operations[38][39] - The company's market advantages are multi-faceted, including a high-quality customer base and a comprehensive marketing network, with products exported to over 40 countries[40][41][42] - Full implementation of a digital factory through MES and ERP systems has significantly improved production efficiency and management transparency[44] - The company adheres to low-carbon and sustainable development, utilizing recycled water and developing "paper-for-plastic" green products[45] Analysis of Main Business Operations Main business revenue decreased by 4.80% YoY, driven by a decline in decorative base paper sales, while latex paper and overseas sales grew Year-over-Year Changes in Key Financial Data | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,679,893,424.59 | 1,764,558,570.60 | -4.80% | | | Operating Costs | 1,488,592,042.42 | 1,526,769,869.35 | -2.50% | | | Selling Expenses | 9,627,485.98 | 8,253,965.96 | 16.64% | | | Administrative Expenses | 43,984,802.00 | 37,447,806.46 | 17.46% | | | Finance Costs | 831,298.93 | 3,675,626.20 | -77.38% | Received loan interest subsidies during the period | | Net Cash Flow from Operating Activities | 191,272,306.78 | 183,013,354.27 | 4.51% | | | Net Cash Flow from Investing Activities | -99,621,684.37 | 42,431,952.98 | -334.78% | Impacted by purchases and redemptions of wealth management products and capex | | Net Cash Flow from Financing Activities | -182,393,650.25 | -68,776,538.57 | -165.20% | Increased cash payments for dividend distribution | Operating Revenue Breakdown (by Product and Region) | Category | Item | Current Period Amount (CNY) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | By Product | Decorative Base Paper Series | 1,325,938,286.12 | 78.93% | -8.17% | | | Latex Paper Series | 178,578,857.58 | 10.63% | 15.06% | | | Sanitary Materials Series | 61,721,338.41 | 3.67% | -3.14% | | | Other Series | 113,654,942.48 | 6.77% | 11.70% | | By Region | Domestic Sales | 1,491,702,959.24 | 88.80% | -7.82% | | | Overseas Sales | 188,190,465.35 | 11.20% | 28.63% | Changes in Main Business Gross Margin | Category | Item | Gross Margin | Change in Gross Margin vs Prior Year | | :--- | :--- | :--- | :--- | | By Industry | Paper Manufacturing | 11.34% | -2.03% | | By Product | Decorative Base Paper Series | 8.44% | -3.70% | | | Latex Paper Series | 29.76% | 2.82% | | By Region | Domestic | 10.36% | -2.32% | | | Overseas | 19.55% | -2.78% | Analysis of Non-main Business Operations The company had no non-main business operations during the reporting period Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders decreased, while accounts receivable and inventories increased Significant Changes in Asset Composition (End of Current Period vs End of Prior Year) | Item | End of Current Period Amount (CNY) | % of Total Assets | End of Prior Year Amount (CNY) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 606,874,032.61 | 11.45% | 798,997,158.06 | 14.46% | -3.01% | | Accounts Receivable | 731,375,890.53 | 13.80% | 669,525,121.31 | 12.12% | 1.68% | | Inventories | 648,779,797.62 | 12.25% | 567,106,696.45 | 10.27% | 1.98% | | Total Assets | 5,298,185,796.75 | 100.00% | 5,524,188,051.39 | 100.00% | -4.09% | Assets and Liabilities Measured at Fair Value | Item | Opening Balance (CNY) | Purchases this Period (CNY) | Sales this Period (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 163,503,114.41 | 590,000,000.00 | 533,144,550.09 | 222,729,763.60 | | Other Non-current Financial Assets | 150,168,326.74 | | 214,854.38 | 149,953,472.36 | | Receivables Financing | 640,754,867.78 | | | 524,807,045.81 | Restricted Assets | Item | Closing Book Value (CNY) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 106,743,924.95 | Fully Restricted | Term deposit interest and bill margin | | Notes Receivable | 83,535,266.12 | Fully Restricted | Pledged | Investment Analysis Investment amount decreased significantly by 84.36% YoY, with a major ongoing project failing to meet expected returns due to market competition Investment Amount during the Reporting Period | Indicator | Investment Amount (CNY) | Investment Amount in Prior Year Period (CNY) | Change | | :--- | :--- | :--- | :--- | | Investment Amount | 44,213,888.69 | 282,706,147.76 | -84.36% | Major Non-equity Investments | Project Name | Investment Method | Progress | Expected Return (CNY) | Cumulative Realized Return as of Period End (CNY) | | :--- | :--- | :--- | :--- | :--- | | 200,000-ton Specialty Paper Project (Phase I) | Self-construction | 98.00% | 119,694,100.00 | -20,459,533.83 | - The 200,000-ton specialty paper project (Phase I) did not achieve its expected return due to intense market competition, which necessitated product price adjustments[57] Major Asset and Equity Sales No major asset or equity sales occurred during the reporting period - The company did not sell any major assets during the reporting period[62] - The company did not sell any major equity during the reporting period[63] Analysis of Major Holding and Associated Companies Key subsidiaries include Zibo Oumute and Shandong Huasha, with Zibo Oumute being the largest contributor to the company's net profit Financial Data of Major Subsidiaries | Company Name | Type | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zibo Oumute Specialty Paper Co, Ltd | Subsidiary | 280,000,000 | 4,100,025,560.84 | 2,996,089,315.91 | 1,461,009,550.80 | 116,820,220.74 | | Shandong Huasha New Material Co, Ltd | Subsidiary | 10,000,000 | 108,089,782.43 | 55,879,663.18 | 180,177,837.12 | 28,469,556.93 | | Guangxi Qifeng New Material Co, Ltd | Subsidiary | 100,000,000 | 859,864,382.76 | 529,215,216.64 | 207,828,625.66 | -20,459,533.83 | - The company did not acquire or dispose of any subsidiaries during the reporting period[65] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[66] Company Risks and Countermeasures The company faces risks from raw material price volatility, market competition, and currency fluctuations, which it mitigates through hedging and innovation - Fluctuations in the prices of key raw materials like titanium dioxide and wood pulp, as well as exchange rates, will impact the company's costs and performance[66] - The specialty paper industry is highly competitive, with pressure from domestic companies possessing advanced technology and equipment[67] - New assets from investment projects, such as the 200,000-ton specialty paper project, will increase depreciation and amortization, potentially leading to a performance decline if expected benefits are not realized[68][69] - The company imports large quantities of wood pulp settled in USD, making it vulnerable to CNY/USD exchange rate fluctuations; it will use foreign exchange hedging to mitigate this risk[70] - Changes in environmental policies, tax rates, and import/export regulations may affect production and profitability; the company will adjust its strategy accordingly[71] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period[72] - The company did not disclose a valuation enhancement plan during the reporting period72 Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period - The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period[72] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management The reporting period saw several key personnel changes, including the appointment of a new Chairman and General Manager Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Li Wenhai | Director, Deputy GM | Resigned | 2025-06-06 | Personal reasons | | Zhu Hongsheng | Deputy GM | Resigned | 2025-06-06 | Retirement | | Li Xuefeng | Vice Chairman | Elected | 2025-06-11 | Work transfer | | Li Andong | Chairman | Elected | 2025-06-11 | Work transfer | | Li Runsheng | General Manager | Appointed | 2025-06-11 | Work transfer | | Li Runsheng | Director | Elected | 2025-06-27 | Work transfer | Profit Distribution and Capitalization of Capital Reserve for the Reporting Period The proposed semi-annual profit distribution is a cash dividend of CNY 1 per 10 shares, totaling CNY 56,006,105.00 Profit Distribution for the Reporting Period | Indicator | Amount | | :--- | :--- | | Bonus Shares per 10 Shares (shares) | 0 | | Cash Dividend per 10 Shares (CNY) (tax included) | 1 | | Share Capital Base for Distribution Plan (shares) | 560,061,050 | | Total Cash Dividend (CNY) (tax included) | 56,006,105.00 | | Ratio of Cash Dividend to Total Profit Distribution | 100% | - The distributable profit available to all shareholders for H1 2025 is CNY 551,041,749.44; the proposed distribution plan complies with the company's articles of association and protects the interests of minority investors[77] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentives No equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[78] Environmental Information Disclosure The company and four of its main subsidiaries are listed for mandatory environmental information disclosure and have published relevant reports - The company and four of its main subsidiaries are included in the list of enterprises required to disclose environmental information by law[79] - The listed subsidiaries include Zibo Oumute Specialty Paper Co, Ltd, Zibo Linzi Zhutai Thermal Power Co, Ltd, Zibo Zhutai Runkun Biotechnology Co, Ltd, and Shandong Boxing County Ouhua Specialty Paper Co, Ltd[79] Social Responsibility The company actively fulfills its social responsibilities by protecting stakeholder interests and promoting sustainable, green development - The company protects shareholder rights through sound corporate governance, a robust internal control system, active investor communication, and fair information disclosure[80] - The company protects employee rights by signing labor contracts, providing social security, offering competitive compensation, ensuring a safe work environment, and investing in training and career development[81] - The company protects the rights of suppliers and customers by establishing sound internal audit and supply chain management systems and adhering to principles of integrity and mutual benefit[82][83] - The company integrates green, low-carbon, and efficient practices into its sustainable development strategy, establishing a "carbon management" system and developing eco-friendly products[84] Important Matters Fulfillment of Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company during the Reporting Period and Overdue Commitments as of the Period End All relevant parties strictly fulfilled their commitments regarding share lock-ups and non-competition, with no overdue commitments - Mr. Li Xuefeng strictly adhered to the share lock-up commitment, with subscribed shares non-transferable for thirty-six months from the end of the issuance[86] - All directors and senior management committed to not transferring benefits to other parties unfairly and to constrain their business-related consumption to ensure the fulfillment of return-enhancing measures[86] - The actual controller, Mr. Li Xuefeng, and his concerted parties have committed to avoiding non-competition and will not engage in any business activities that directly or indirectly compete with the company[87] - All commitments were fulfilled on time during the reporting period, with no overdue items[87][88] Non-operational Fund Occupation by Controlling Shareholders and Other Related Parties There was no non-operational fund occupation by controlling shareholders or other related parties during the reporting period - The company reports no non-operational fund occupation by its controlling shareholder or other related parties during the reporting period[89] Irregular External Guarantees No irregular external guarantees were provided during the reporting period - The company had no irregular external guarantees during the reporting period[90] Appointment and Dismissal of Accounting Firm The semi-annual financial report was unaudited, so no appointment or dismissal of an accounting firm occurred - The company's semi-annual report was unaudited[91] Explanation from the Board of Directors and Supervisory Committee on the "Non-standard Audit Report" for the Reporting Period This is not applicable as the semi-annual report was unaudited - The company did not have a non-standard audit report for the reporting period[92] Explanation from the Board of Directors on the "Non-standard Audit Report" of the Previous Year This is not applicable for the current reporting period - The company has no explanation regarding a non-standard audit report from the previous year to report[92] Bankruptcy and Reorganization Matters No bankruptcy or reorganization matters occurred during the reporting period - The company did not undergo any bankruptcy or reorganization during the reporting period[92] Litigation Matters The company had no major litigation but was involved in several other lawsuits with amounts ranging from CNY 217,800 to CNY 4,565,100 - The company had no major litigation or arbitration matters during the reporting period[93] Other Litigation Matters | Basic Case Information | Amount Involved (CNY 10k) | Litigation Progress | | :--- | :--- | :--- | | Linyi Fuxiangju Decorative Materials Co, Ltd | 99.58 | Settled, awaiting execution | | Xinmi Yesen Decorative Materials Co, Ltd | 281.04 | Awaiting court hearing | | Foshan Sanshui Lujia Decorative Materials Co, Ltd | 456.51 | Awaiting court hearing | | Hangzhou Lin'an Tianmei New Materials Co, Ltd | 21.78 | Execution completed | Penalties and Rectifications No penalties or rectifications occurred during the reporting period - The company was not subject to any penalties or rectifications during the reporting period[95] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no issues concerning the integrity of the company, its controlling shareholder, or its actual controller - There were no issues regarding the integrity status of the company, its controlling shareholder, or its actual controller during the reporting period[96] Major Related-Party Transactions No major related-party transactions related to daily operations, asset acquisitions, or debt occurred during the reporting period - The company had no related-party transactions associated with its daily operations during the reporting period[96] - The company had no related-party transactions involving the acquisition or sale of assets or equity during the reporting period[97] - The company had no related-party credit or debt transactions during the reporting period[99] - There were no deposits, loans, credit lines, or other financial business between the company and any related financial companies[100] Major Contracts and Their Performance The company had no托管 or contracting arrangements but provided guarantees for subsidiaries and invested in wealth management products - The company had no托管 arrangements or contracting arrangements during the reporting period[104][105] - Subsidiary Shandong Boxing County Ouhua Specialty Paper Co, Ltd renewed a lease for its production line and facilities from July 2024 to June 2029, with an annual rent of CNY 3 million[106] Guarantees Provided to Subsidiaries (Partial) | Guaranteed Party | Guarantee Limit (CNY 10k) | Actual Guarantee Amount (CNY 10k) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Zibo Oumute Specialty Paper Co, Ltd | 7,000 | 7,000 | General Guarantee | One Year | Yes | | Zibo Oumute Specialty Paper Co, Ltd | 5,000 | 5,000 | General Guarantee | One Year | Yes | | Guangxi Qifeng New Material Co, Ltd | 3,000 | 3,000 | General Guarantee | One Year | No | Entrusted Wealth Management | Source of Funds | Product Type | Closing Balance (CNY 10k) | Impairment Provision (CNY 10k) | | :--- | :--- | :--- | :--- | | Own Funds | Bank Wealth Management Products | 35,714 | 0 | Explanation of Other Major Matters There were no other major matters requiring explanation during the reporting period - The company has no other major matters to disclose for the reporting period[116] Major Matters of Subsidiaries There were no major matters concerning subsidiaries during the reporting period - The company has no major subsidiary matters to report for the period[117] Changes in Share Capital and Shareholders Changes in Share Capital The total number of shares remained unchanged, while restricted shares decreased due to the release of executive lock-up shares Changes in Share Capital | Share Type | Pre-change Quantity (shares) | Change (+/-) (shares) | Post-change Quantity (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 157,231,268 | -15,578,053 | 141,653,215 | | Unrestricted Shares | 402,829,782 | 15,578,053 | 418,407,835 | | Total Shares | 560,061,050 | 0 | 560,061,050 | Changes in Restricted Shares | Shareholder Name | Opening Restricted Shares (shares) | Released this Period (shares) | Closing Restricted Shares (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Li Xuefeng | 125,897,205 | 16,343,808 | 109,553,397 | Executive lock-up and commitment | | Zhu Hongsheng | 1,240,770 | 0 | 1,654,360 | No disposal within 6 months of resignation | | Li Wenhai | 1,056,495 | 0 | 1,408,660 | No disposal within 6 months of resignation | Securities Issuance and Listing No securities were issued or listed during the reporting period - The company did not issue or list any securities during the reporting period[123] Number of Shareholders and Shareholdings As of the period end, there were 17,744 common shareholders, with Li Xuefeng being the largest shareholder at 26.08% - The total number of common shareholders at the end of the reporting period was 17,744[124] Shareholdings of Shareholders with over 5% or Top 10 Shareholders | Shareholder Name | Nature | Shareholding Ratio | Closing Shares Held (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Xuefeng | Domestic Individual | 26.08% | 146,071,196 | 109,553,397 | 36,517,799 | Pledged | 34,670,000.00 | | Li Runsheng | Domestic Individual | 5.03% | 28,145,855 | 21,109,391 | 7,036,464 | N/A | 0 | - Li Xuefeng, Li Andong, Li Runsheng, and Li Runze are parties acting in concert[124] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of directors, supervisors, or senior management during the reporting period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[127] Changes in Controlling Shareholder or Actual Controller There were no changes to the controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[128] - The company's actual controller did not change during the reporting period[128] Bond-related Matters Bond-related Matters The company had no bond-related matters to report for the period - The company had no bond-related matters during the reporting period[131] Financial Report Audit Report The semi-annual financial report was unaudited - The company's semi-annual financial report has not been audited[133] Financial Statements This section presents the consolidated and parent company financial statements for the semi-annual period ending June 30, 2025 1. Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were CNY 5,298,185,796.75, with total liabilities of CNY 1,384,510,443.04 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were CNY 3,531,698,675.03, with total liabilities of CNY 50,426,176.06 3. Consolidated Income Statement For H1 2025, consolidated total operating revenue was CNY 1,679,893,424.59, and net profit attributable to parent company shareholders was CNY 63,076,980.15 4. Parent Company Income Statement For H1 2025, the parent company's operating revenue was CNY 134,893,274.66, with a net profit of CNY 207,594,043.35 5. Consolidated Cash Flow Statement For H1 2025, net cash flow from operating activities was CNY 191,272,306.78, resulting in a net decrease in cash of CNY 91,673,276.81 6. Parent Company Cash Flow Statement For H1 2025, the parent company's net cash flow from operating activities was -CNY 20,498,989.76, with a net decrease in cash of CNY 3,753,767.06 7. Consolidated Statement of Changes in Equity As of June 30, 2025, consolidated total equity was CNY 3,913,675,353.71, a decrease of CNY 106,202,552.57 from the beginning of the period 8. Parent Company Statement of Changes in Equity As of June 30, 2025, the parent company's total equity was CNY 3,481,272,498.97, an increase of CNY 39,575,728.35 from the beginning of the period Company Basic Information Qifeng New Material Co, Ltd (002521) is engaged in the R&D, production, and sale of high-grade decorative base paper - The company's registered office and headquarters are located in Zibo City, Shandong Province, with the stock ticker "Qifeng New Material" and stock code "002521"[167] - The company's main business is the R&D, production, and sale of high-grade decorative base paper, with products covering decorative base paper, latex paper, and sanitary materials[168] - As of June 30, 2025, the company's total share capital was 560,061,050.00 shares, and the ultimate controlling party is Li Xuefeng[167][169] Basis of Preparation for Financial Statements The financial statements are prepared on a going concern basis, using the accrual basis of accounting and historical cost measurement - The company prepares its financial statements on a going concern basis, using the accrual basis for accounting and generally measuring accounting elements at historical cost[171] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no major events affecting this ability[172] Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates applied in preparing the financial statements, including revenue recognition and financial instruments - The financial statements and notes are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance, reflecting a true and fair view of the company's financial position and performance[174] - Financial assets are classified based on the business model for managing them and their contractual cash flow characteristics into categories measured at amortized cost or fair value[204][205][208] - Revenue is recognized when the customer obtains control of the related goods, with specific recognition timing and measurement methods determined by the business type[310][313] - Management has made significant accounting judgments and estimates for items such as financial instrument impairment, inventory write-downs, depreciation, and deferred income taxes[342][343][345][346][347][348][349][350][352] Taxes This section lists the main taxes and tax rates applicable to the company, including a preferential 15% income tax rate for certain subsidiaries Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 6% | | Urban Maintenance and Construction Tax | 7%, 5% | | Corporate Income Tax | 25%, 15% | | Education Surcharge | 3% | - Subsidiaries Zibo Oumute Specialty Paper Co, Ltd and Shandong Huasha New Material Co, Ltd are qualified as high-tech enterprises and are subject to a 15% income tax rate in 2025[355] - The subsidiary Qifeng New Material (Hong Kong) Co, Limited is subject to Hong Kong's offshore tax exemption regulations[356] Notes to Items in the Consolidated Financial Statements This section provides detailed disclosures on items in the consolidated financial statements, including balances, movements, and specific notes on significant accounts - The closing balance of cash and cash equivalents was CNY 606,874,032.61, a decrease from the beginning of the period, with restricted funds amounting to CNY 106,743,924.95[358][455] - The closing book balance of accounts receivable was CNY 812,296,085.77, with a bad debt provision of CNY 80,920,195.24, resulting in a net book value of CNY 731,375,890.53[372][374] - During the reporting period, operating revenue and cost of sales were CNY 1,679,893,424.59 and CNY 1,488,592,042.42, respectively, with main business revenue accounting for 99.81%[496] - Net cash flow from operating activities was CNY 191,272,306.78, while net cash flow from investing and financing activities were -CNY 99,621,684.37 and -CNY 182,393,650.25, respectively[539] Research and Development Expenditures Total R&D expenditure for the period was CNY 61,044,632.44, all of which was expensed, primarily consisting of material costs and employee compensation R&D Expenditure Breakdown | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Material Costs | 41,481,046.20 | 44,297,116.51 | | Employee Compensation | 6,989,486.98 | 5,155,012.12 | | Fuel and Power | 10,071,157.93 | 10,351,891.24 | | Depreciation | 1,925,129.27 | 2,287,672.35 | | Others | 577,812.06 | 121,508.24 | | Total | 61,044,632.44 | 62,213,200.46 | - All R&D expenditures for the current period were expensed and not capitalized[548] Equity in Other Entities The company holds equity in several subsidiaries engaged in paper production and sales, with Shandong Huasha being a significant non-wholly-owned subsidiary Corporate Group Structure (Partial Subsidiaries) | Subsidiary Name | Registered Capital (CNY) | Business Nature | Ownership (Direct) | | :--- | :--- | :--- | :--- | | Zibo Oumute Specialty Paper Co, Ltd | 280,000,000.00 | Production and sale of paper, power, heat, non-woven materials | 100.00% | | Shandong Boxing County Ouhua Specialty Paper Co, Ltd | 2,000,000.00 | Production and sale of decorative base paper | 100.00% | | Guangxi Qifeng New Material Co, Ltd | 100,000,000.00 | Production and sale of decorative base paper | 100.00% | | Shandong Huasha New Material Co, Ltd | 10,000,000.00 | Production and sale of sandpaper base paper | 96.00% | Financial Information of Significant Non-wholly-owned Subsidiaries | Subsidiary Name | Minority Interest Ratio | Profit/Loss Attributable to Minority Interests (CNY) | Dividends Declared to Minority Shareholders (CNY) | Closing Balance of Minority Interests (CNY) | | :--- | :--- | :--- | :--- | :--- | | Shandong Huasha New Material Co, Ltd | 4.00% | 1,138,782.28 | 2,400,000.00 | 2,235,186.53 | Government Grants The company recognized government grants totaling CNY 4,565,556.45 in profit or loss, including asset-related grants and loan interest subsidies Liability Items Related to Government Grants | Account | Opening Balance (CNY) | Recognized in Other Income (CNY) | Closing Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 3,432,980.11 | 1,358,494.78 | 2,074,485.33 | Asset-related | Government Grants Recognized in Current Profit or Loss | Account | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Other Income - Asset-related Government Grants | 1,358,494.78 | 1,358,495.00 | | Other Income - Income-related Government Grants | 627,061.67 | 717,032.37 | | Finance Costs - Interest Expense (Reduction) | 2,580,000.00 | 0 | | Total | 4,565,556.45 | 2,075,527.37 | - During the reporting period, the company received loan interest subsidies of CNY 2,580,000.00, which reduced current interest expenses[558] Risks Related to Financial Instruments The company is exposed to market, credit, and liquidity risks, which are managed through monitoring, diversification, and maintaining sufficient cash reserves - The company's market risk from financial instruments includes exchange rate risk (mainly USD and EUR), interest rate risk (from bank borrowings), and other price risks[560][561][562][564] - Credit risk arises mainly from financial assets and guarantees, which is mitigated by placing funds with highly-rated banks and dealing with reputable customers[565] - Liquidity risk is managed by maintaining sufficient cash and cash equivalents and monitoring the use of bank borrowings[568] Fair Value Disclosure As of the period end, assets measured at fair value totaled CNY 897,490,281.77, primarily comprising financial assets valued using Level 3 inputs Closing Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | | Trading Financial Assets | 222,729,763.60 | 222,729,763.60 | | Financial Assets Designated at FVTPL | 149,953,472.36 | 149,953,472.36 | | Receivables Financing | 524,807,045.81 | 524,807,045.81 | | Total Assets Continuously Measured at Fair Value | 897,490,281.77 | 897,490,281.77 | - Financial wealth management products are valued using expected rates of return; private equity funds are valued based on net asset value; receivables financing is valued using unobservable inputs[571] Related Parties and Transactions The company's ultimate controlling party is Li Xuefeng, holding 26.08% of shares, with key management personnel compensation disclosed - The ultimate controlling party of the enterprise is Li Xuefeng, who holds 146,071,196 shares, accounting for 26.08% of the total share capital[572][573] - Other related parties include the company's directors (Li Andong, Li Runsheng, etc), supervisors (Liu Yonggang, etc), and senior management (Sun Wenrong, Yao Yanlei, etc)[575] Key Management Personnel Compensation | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 1,428,963.63 | 1,532,288.06 | Commitments and Contingencies As of the financial reporting date, the company had no significant commitments or material contingencies to disclose - As of the financial reporting date, the company has no significant commitments to disclose[578] - The company has no material contingencies to disclose[580] Events after the Balance Sheet Date The Board of Directors approved a semi-annual profit distribution plan on August 20, 2025, subject to shareholder approval - The Board of Directors approved the 2025 semi-annual profit distribution plan on August 20, 2025[581] - The plan proposes a cash dividend of CNY 1 (tax included) per 10 shares, totaling CNY 56,006,105.00, based on the total share capital of 560,061,050 shares[581] - The above plan is subject to approval at the shareholders' general meeting before implementation[582] Other Important Matters The company operates as a single segment in the production and sale of decorative base paper, thus no segment information is disclosed - The company's main business is the production and sale of decorative base paper products, which is managed as a single integrated business, thus no segment information is disclosed[583] Notes to Major Items in the Parent Company's Financial Statements This section details key items from the parent company's financial statements, including receivables, long-term equity investments, and investment income - The parent company's closing book balance of accounts receivable was CNY 5,989,268.33, with a bad debt provision of CNY 5,569,505.96, resulting in a net book value of CNY 419,762.37[585][587][592] - The parent company's closing book balance of other receivables was CNY 392,605.77, with a bad debt provision of CNY 20,875.26, resulting in a net book value of CNY 371,730.51[600][604][605] - The parent company's investments in subsidiaries had a closing book value of CNY 3,243,863,535.43[611][612] - The parent company's investment income for the period was CNY 205,000,000.00, primarily from long-term equity investments accounted for under the cost method[616] Supplementary Information This section provides a detailed breakdown of non-recurring profit and loss and key return metrics for the period Details of Non-recurring Profit and Loss for the Current Period | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -9,682.13 | | Government Grants Recognized in Current Profit or Loss | 1,985,556.45 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets/Liabilities | 2,868,262.40 | | Reversal of Impairment Provision for Individually Tested Receivables | 2,475,977.08 | | Other Non-operating Income and Expenses | 7,120,480.64 | | Other Items Qualifying as Non-recurring Profit or Loss | 87,049.33 | | Less: Income Tax Impact | 2,383,260.94 | | Less: Minority Interest Impact (After Tax) | 96,522.54 | | Total | 12,047,860.29 | Return on Equity and Earnings Per Share | Profit for the Reporting Period | Weighted Average ROE | Basic EPS (CNY/share) | Diluted EPS (CNY/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 1.57% | 0.11 | 0.11 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | 1.27% | 0.09 | 0.09 | Other Submitted Data Other Major Social Security Issues The company and its subsidiaries had no other major social security issues or administrative penalties during the reporting period - The listed company and its subsidiaries did not have any other major social security issues during the reporting period[620] - No administrative penalties were received during the reporting period[620] Registration Form for Investor Relations Activities such as Research Visits, Communications, and Interviews during the Reporting Period The company conducted two online investor communication events via the "Investor Relations Interactive Platform" on p5w.net Registration Form for Investor Relations Activities | Reception Time | Reception Location | Reception Method | Reception Type | Main Topics and Materials Provided | | :--- | :--- | :--- | :--- | :--- | | 2025-04-15 | p5w.net "Investor Relations Interactive Platform" | Online Platform | Investors at the 2024 online earnings briefing | Company's production, operation, and future development | | 2025-05-15 | p5w.net "Investor Relations Interactive Platform" | Online Platform | Online investor questions | Company's future development and specific initiatives | Fund Dealings between the Listed Company and its Controlling Shareholder and Other Related Parties There were no fund dealings between the company and its controlling shareholder or other related parties during the reporting period - The company had no fund dealings with its controlling shareholder or other related parties during the reporting period[621]