华康股份(605077) - 2025 Q2 - 季度财报

Important Notice This section provides crucial information regarding the company's profit distribution plan and risk disclosures Profit Distribution Plan The board approved a semi-annual profit distribution plan for 2025, proposing a cash dividend of 2 yuan (tax inclusive) per 10 shares, totaling 60.61 million yuan, with no capital reserve conversion 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount/Description | | :--- | :--- | | Cash dividend per 10 shares (tax inclusive) | 2 Yuan | | Total share capital (as of August 20, 2025) | 303,049,751 Shares | | Total proposed cash dividend (tax inclusive) | 60,609,950.20 Yuan | | Capital reserve conversion to share capital | No | - If total share capital changes between the disclosure date and the equity distribution record date, the company will maintain the per-share distribution ratio, adjusting the total distribution amount accordingly[5] Risk Statement and Disclaimer The company clarifies that forward-looking statements are not substantive commitments and advises investors to be aware of investment risks, noting no major risks in the reporting period - Forward-looking statements do not constitute substantive commitments; investors should be aware of investment risks[6] - No major risk matters existed during the reporting period; detailed risks are disclosed in "Section III Management Discussion and Analysis V. Other Disclosure Matters (I) Potential Risks" chapter[8] Section I Definitions This section defines common terms used in the report, including abbreviations for the company, its predecessors, subsidiaries, affiliates, and key partners, to ensure clear understanding Definitions of Common Terms This chapter provides definitions for frequently used terms, ensuring clarity and consistency throughout the report - "The Company", "Company", and "Huakang Shares" all refer to Zhejiang Huakang Pharmaceutical Co., Ltd[13] - Lists abbreviations for several subsidiaries and affiliates, including Huakang Limited, Kaihua Huakang Pharmaceutical Factory, Jiaozuo Huakang, Sichuan Yanhua, Yibin Yanhua, Jinggong Agriculture, Yuxin Sugar Alcohol, Huakang Trading, and Huakang Europe[13] - Mentions well-known partners or affiliates such as Coca-Cola, PepsiCo, Nongfu Spring, and Citibank[13] Section II Company Profile and Key Financial Indicators This section presents the company's basic information and key financial performance metrics for the reporting period Company Basic Information This section outlines the company's fundamental registration details, contact information, disclosure channels, stock overview, and details of its accounting firm and sponsor Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Zhejiang Huakang Pharmaceutical Co., Ltd. | | Stock Abbreviation | Huakang Shares | | Stock Code | 605077 | | Listing Exchange | Shanghai Stock Exchange | | Legal Representative | Chen Deshui | - Company's registered and office address is located at No. 18 Huagong Road, Huabu Town, Kaihua County, Zhejiang Province[17] - Information disclosure newspapers include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily; the designated website is http://www.sse.com.cn/[18](index=18&type=chunk) Key Accounting Data and Financial Indicators Revenue grew significantly by 37.32% due to new production lines, but net profit attributable to shareholders decreased by 3.38% due to lower gross margins and convertible bond interest expense, while operating cash flow surged by 247.72% Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,865,861,711.37 Yuan | 1,358,743,168.18 Yuan | 37.32 | | Total Profit | 150,412,515.85 Yuan | 146,185,849.78 Yuan | 2.89 | | Net Profit Attributable to Listed Company Shareholders | 133,705,194.39 Yuan | 138,380,202.93 Yuan | -3.38 | | Net Cash Flow from Operating Activities | 83,163,471.32 Yuan | -56,296,980.30 Yuan | 247.72 | | Total Assets (Current Period End vs. Prior Year End) | 7,564,597,016.89 Yuan | 6,992,028,952.79 Yuan | 8.19 | | Net Assets Attributable to Listed Company Shareholders (Current Period End vs. Prior Year End) | 3,230,073,124.83 Yuan | 3,243,431,005.24 Yuan | -0.41 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.45 | 0.46 | -2.17 | | Diluted Earnings Per Share (Yuan/Share) | 0.42 | 0.39 | 7.69 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/Share) | 0.41 | 0.44 | -6.82 | | Weighted Average Return on Net Assets (%) | 4.13 | 4.39 | -0.26 | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 3.75 | 4.13 | -0.38 | - Operating revenue increased by 37.32%, primarily due to the gradual commissioning of new production lines at Zhoushan Huakang, generating sales revenue[23] - Net profit attributable to listed company shareholders decreased by 3.38%, mainly due to a decline in gross profit margin from increased liquid product business at Zhoushan Huakang and the capitalization of convertible bond interest[23] - Net cash flow from operating activities increased by 247.72%, primarily due to increased cash received from sales during the period[23] Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses for the period amounted to 12.19 million yuan, mainly from government subsidies, fair value changes of financial assets/liabilities, and other non-operating income/expenses Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -206,527.85 | | Government grants recognized in current profit or loss | 3,283,698.32 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and disposal gains and losses | 10,476,810.81 | | Other non-operating income and expenses apart from the above | 1,189,284.58 | | Less: Income tax impact | 2,552,091.05 | | Impact on minority interests (after tax) | -0.77 | | Total | 12,191,175.58 | Net Profit After Deducting Share-Based Payment Impact Net profit after deducting share-based payment impact for the current reporting period was 138.21 million yuan, a decrease of 11.63% compared to the same period last year Net Profit After Deducting Share-Based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting share-based payment impact | 138,208,183.35 Yuan | 156,389,454.39 Yuan | -11.63 | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, main business operations, financial performance, core competitiveness, and potential risks during the reporting period Description of the Company's Industry and Main Business Operations During the Reporting Period The company specializes in R&D, production, and sales of functional sugar alcohols and starch sugars, operating within the food manufacturing sector, with a strong market position and expanding applications - The company's main business involves the R&D, production, and sales of functional sugar alcohols and starch sugar products, including xylitol, sorbitol, maltitol, erythritol, and high-fructose corn syrup[31][41] - The global functional sugar alcohol market is projected to reach $7.7 billion by 2030, with a compound annual growth rate of approximately 6.7%[32] - China's functional sugar alcohol output exceeded 1.89 million tons in 2024, a 14.49% increase from 2023, with the market size expected to reach 21 billion yuan by 2027[33] - The company has become one of the world's leading producers of xylitol, crystalline sorbitol, and crystalline maltitol, with products sold in major domestic and international markets[41][48] - The company employs a project-based R&D model, a make-to-order production model, and a sales strategy combining direct sales with trade customers[43][46][47] Industry Overview The functional sugar alcohol industry is experiencing stable growth globally and in China, driven by increasing demand for healthy food and personal care products, supported by national sugar reduction policies - Functional sugar alcohols, as low-calorie, non-cariogenic sweeteners, are widely used in food, beverages, and daily chemicals, driving continuous industry development[32] - China's functional sugar alcohol manufacturing is primarily concentrated in East and North China, establishing the country as a significant global producer of these products[34][36] - The application fields for functional sugar alcohols such as sorbitol, xylitol, maltitol, and erythritol are continuously expanding, including their use in health foods and new beverage products[37] - High-fructose corn syrup is extensively used by renowned food and beverage companies like Coca-Cola, PepsiCo, Mengniu, Yili, and Nongfu Spring, indicating stable market demand[40] Main Business Profile The company is a high-tech enterprise focused on the R&D, production, and sales of functional sugar alcohols and starch sugars, holding a leading position globally in xylitol, crystalline sorbitol, and crystalline maltitol production - The company's main products include xylitol, sorbitol, maltitol, erythritol, and high-fructose corn syrup[41] - The company's products are widely applied in downstream industries such as food, beverages, pharmaceuticals, and daily chemicals, having established long-term partnerships with well-known domestic and international enterprises[41] Company's Main Business Model The company's operating model encompasses project-based R&D, procurement based on annual plans and market conditions, make-to-order production with strict quality control, and a sales approach primarily through direct channels, supplemented by B2B and B2C - The R&D model adopts a project-based system, covering improvements to existing products and processes, new product development, and fundamental research on functional sugar alcohol applications[43] - Key raw materials, including corn, starch, xylose, and corn cobs, are procured based on annual plans and market conditions[45] - The production model is make-to-order, with production plans formulated and dynamically adjusted based on sales and inventory levels[46] - The sales model is primarily direct, with market expansion through domestic and international business departments, complemented by B2B and B2C approaches[47] Company's Industry Position The company holds a leading position in the sugar alcohol industry, recognized for its strong brand and reputation, designated as a "Manufacturing Single Champion Product" producer for xylitol, and actively involved in drafting national and industry standards - The company is a vice-chairman unit of the China Bio-Fermentation Industry Association and the China Starch Industry Association, participating in the drafting of over 40 national, industry, and group standards[49] - The company has obtained multiple system certifications, including GMP, ISO9001, ISO14001, ISO50001, ISO22000, OHSAS18001, FSSC22000, and Zhejiang Manufacturing[49] - The company's food-grade xylitol product was recognized as a "Manufacturing Single Champion Product" and successfully re-evaluated in 2022[49] Discussion and Analysis of Operations In H1 2025, the company advanced its Zhoushan Huakang project and an acquisition, leading to a 37.32% revenue increase but a 3.38% net profit decrease, with future growth expected from project completion and the pending acquisition - The company continues to advance the Zhoushan Huakang "2 Million Tons Corn Deep Processing Healthy Food Ingredients Project" and the "Asset Acquisition by Issuing Shares and Paying Cash Project" to enhance overall competitiveness[50] Key Operating Data for H1 2025 | Indicator | Amount | | :--- | :--- | | Operating Revenue | 1.866 Billion Yuan | | Net Profit Attributable to Listed Company Shareholders | 0.134 Billion Yuan | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 0.122 Billion Yuan | | Net Assets Attributable to Listed Company Shareholders | 3.230 Billion Yuan | | Total Assets | 7.565 Billion Yuan | - The first phase of Zhoushan Huakang's "1 Million Tons Corn Deep Processing Healthy Food Ingredients Project" is largely complete, with the second phase's product lines planned for construction when opportune[51] - The company plans to acquire 100% equity of Henan Yuxin Sugar Alcohol Co., Ltd. for 1,098 million yuan, comprising 732 million yuan in share payment and 366 million yuan in cash payment, pending review by the Shanghai Stock Exchange and the China Securities Regulatory Commission[52][53] - With the commissioning of the Zhoushan Huakang project and the completion of the Yuxin Sugar Alcohol acquisition, the company's operating revenue is expected to increase year-on-year in 2025[54] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its integrated industrial chain, prominent industry position, diverse product portfolio, leading R&D capabilities, extensive sales network, strong customer relationships, and a highly skilled management team - The company has built a complete industrial chain around functional sugar alcohols and starch sugars, from upstream xylose production to midstream technological innovation and downstream sales channels, ensuring profitability[55] - The company is one of the world's leading producers of xylitol, crystalline sorbitol, and crystalline maltitol, with xylitol recognized as a "Manufacturing Single Champion Product," highlighting its prominent industry position[56] - The company boasts a rich product line, including xylitol, sorbitol, maltitol, erythritol, and high-fructose corn syrup, and is strategically expanding into high-tech, high-value-added areas[58] - The company's research institute comprises six major modules: synthetic biology, fermentation, chemical engineering, biomass, application, and intellectual property, with fermentation as a core advantage[59] - The company has established a sales network rooted in China and oriented globally, fostering long-term strategic partnerships with renowned domestic and international food enterprises[60] - The company possesses an experienced and highly qualified management and sales team with deep industry knowledge and market insight, supported by an effective incentive mechanism[61] Key Operating Performance During the Reporting Period This section details the company's financial statement changes, asset-liability status, investment activities, and subsidiary performance, alongside potential risks such as price fluctuations, capacity digestion, and market competition Financial Statement Item Variation Analysis (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount | Prior Year Period Amount | Change Ratio (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,865,861,711.37 | 1,358,743,168.18 | 37.32 | Gradual commissioning of new production lines at Zhoushan Huakang | | Operating Cost | 1,533,705,644.06 | 1,064,705,608.64 | 44.05 | Increase in sales volume | | Selling Expenses | 25,576,129.84 | 24,806,142.33 | 3.1 | Increase in employee count | | Administrative Expenses | 60,534,195.81 | 62,221,589.29 | -2.71 | Decrease in share-based payment expenses | | Financial Expenses | 36,738,041.21 | 3,898,272.39 | 842.42 | Capitalization of convertible bond interest | | R&D Expenses | 68,811,567.02 | 64,025,339.16 | 7.48 | Increase in R&D investment | | Net Cash Flow from Operating Activities | 83,163,471.32 | -56,296,980.30 | 247.72 | Increase in cash received from sales | | Net Cash Flow from Investing Activities | -259,742,549.74 | -920,325,237.84 | 71.78 | Decrease in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets | | Net Cash Flow from Financing Activities | 285,286,417.49 | -422,677,867.96 | 167.49 | Increase in bill discounting borrowings and Zhoushan Huakang project loans | Asset and Liability Status Variation (Current Period End vs. Prior Year End) | Item Name | Current Period End Amount (Ten Thousand Yuan) | Change Ratio (%) | Explanation | | :--- | :--- | :--- | :--- | | Monetary Funds | 80,056.46 | 84.37 | Increase in other monetary fund deposits | | Trading Financial Assets | 3,000.00 | 107,042.86 | Purchase of wealth management products in current period | | Fixed Assets | 309,003.92 | 37.12 | Transfer of some Zhoushan Huakang projects to fixed assets | | Construction in Progress | 55,576.08 | -58.20 | Transfer of some Zhoushan Huakang projects to fixed assets | | Short-Term Borrowings | 53,798.16 | 257.94 | Increase in bill discounting borrowings | | Long-Term Borrowings | 102,193.82 | 46.71 | Increase in Zhoushan Huakang project loans | - The company's overseas assets amount to 15.35 million yuan, accounting for 0.20% of total assets[68] - The company plans to acquire 100% equity of Henan Yuxin Sugar Alcohol Co., Ltd. through a combination of share issuance and cash payment, with the transaction pending review by the Shanghai Stock Exchange and registration approval by the China Securities Regulatory Commission[71] Key Financial Information of Major Holding Subsidiaries | Company Name | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhoushan Huakang | 259,259.54 | 93,206.75 | 87,781.02 | -2,035.7 | -1,418.05 | | Jiaozuo Huakang | 47,634.81 | 41,879.36 | 13,725.04 | 3,922.57 | 3,498.2 | | Gaomi Tongli | 10,213.56 | 7,410.11 | 6,279.39 | 13.83 | -40.28 | | Huahe Thermal Power | 29,213.98 | 21,865.51 | 11,199.28 | 3,232.31 | 2,579.09 | - The company faces risks including product price fluctuations, raw material price volatility, market digestion of new capacity from the Zhoushan project, intensified market competition, environmental policy changes, and export policy adjustments[78][79][80][81][82][83][84] Main Business Analysis Operating revenue increased by 37.32% due to new production lines, while operating costs rose by 44.05% with sales volume. Financial expenses surged by 842.42% due to convertible bond interest capitalization, and operating cash flow improved significantly by 247.72% - Operating revenue increased by 37.32%, primarily due to the gradual commissioning of new production lines at Zhoushan Huakang, generating sales revenue[64] - Financial expenses increased by 842.42%, mainly due to the capitalization of convertible bond interest[64] - Net cash flow from operating activities increased by 247.72%, primarily due to increased cash received from sales during the period[64] Analysis of Assets and Liabilities Total assets increased by 8.19% driven by higher monetary funds, trading financial assets, and fixed assets, while construction in progress decreased due to asset transfers. Both short-term and long-term borrowings significantly rose, mainly from increased bill discounting and Zhoushan Huakang project loans - Monetary funds at period-end totaled 800.56 million yuan, an 84.37% increase from the prior year-end, mainly due to increased other monetary fund deposits[66] - Fixed assets at period-end totaled 3,090.04 million yuan, a 37.12% increase from the prior year-end, primarily due to the transfer of some Zhoushan Huakang projects to fixed assets[67] - Construction in progress at period-end totaled 555.76 million yuan, a 58.20% decrease from the prior year-end, mainly due to the transfer of some Zhoushan Huakang projects to fixed assets[67] - Short-term borrowings at period-end totaled 537.98 million yuan, a 257.94% increase from the prior year-end, primarily due to increased bill discounting borrowings[67] - Long-term borrowings at period-end totaled 1,021.94 million yuan, a 46.71% increase from the prior year-end, primarily due to increased loans for the Zhoushan Huakang project[67] Analysis of Investment Status The company continued its major equity investment to acquire Henan Yuxin Sugar Alcohol Co., Ltd., receiving an inquiry from the Shanghai Stock Exchange. It also engaged in financial asset investments, including wealth management products, and derivative investments for hedging purposes - The company plans to acquire 100% equity of Henan Yuxin Sugar Alcohol Co., Ltd. through share issuance and cash payment, having received and responded to an inquiry letter from the Shanghai Stock Exchange[71] Changes in Financial Assets Measured at Fair Value (Units: Yuan) | Asset Category | Beginning Balance | Fair Value Change Gain/Loss for Current Period | Amount Purchased in Current Period | Amount Sold/Redeemed in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading financial assets and other non-current financial assets | 28,000.00 | 4,100,429.81 | 50,000,000.00 | 20,000,000.00 | 30,000,000.00 | | Notes receivable financing | 71,440,944.16 | -1,386,224.31 | - | - | 97,838,945.34 | | Derivative financial liabilities | 3,719,920.00 | -1,963,146.40 | - | - | 18,500.00 | | Total | 75,188,864.16 | 751,059.10 | 50,000,000.00 | 20,000,000.00 | 127,857,445.34 | Derivative Investment Status (Units: Ten Thousand Yuan) | Derivative Investment Type | Beginning Book Value | Fair Value Change Gain/Loss for Current Period | Ending Book Value | Ending Book Value as % of Company's Net Assets at Period-End | | :--- | :--- | :--- | :--- | :--- | | Futures contracts | 751.22 | 367.34 | 118.26 | 0.04 | | Foreign exchange options | 1,439.00 | - | - | - | | Total | 751.22 | 367.34 | 118.26 | 0.04 | - During the period, futures investments realized a loss of 1.54 million yuan, while foreign exchange options yielded a gain of 0.0161 million yuan[75] - The company's hedging activities effectively reduced spot procurement costs, minimized exchange losses, and increased company revenue[75] Analysis of Major Holding and Participating Companies This section lists the financial information for the company's major holding subsidiaries, including Zhoushan Huakang, Jiaozuo Huakang, Gaomi Tongli, and Huahe Thermal Power, noting that Zhoushan Huakang and Gaomi Tongli reported net losses Key Financial Information of Major Holding Subsidiaries (Units: Ten Thousand Yuan) | Company Name | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhoushan Huakang | Manufacturing of bio-based materials, production and sales of food additives, etc. | 100,000.00 | 259,259.54 | 93,206.75 | 87,781.02 | -2,035.7 | -1,418.05 | | Jiaozuo Huakang | Production and sales of food additives, heat production and supply, etc. | 10,000.00 | 47,634.81 | 41,879.36 | 13,725.04 | 3,922.57 | 3,498.2 | | Gaomi Tongli | Production and sales of xylose, xylose mother liquor, etc. | 2,080.00 | 10,213.56 | 7,410.11 | 6,279.39 | 13.83 | -40.28 | | Huahe Thermal Power | Operation of steam, hot water, coal, cogeneration centralized heating, etc. | 13,200.00 | 29,213.98 | 21,865.51 | 11,199.28 | 3,232.31 | 2,579.09 | Potential Risks The company faces multiple operational risks, including product price volatility influenced by macroeconomics and market competition, cost pressures from raw material price fluctuations, market digestion risks for new capacity from the Zhoushan project, intensified industry competition, and potential impacts from environmental and export policy changes - Product prices are subject to fluctuation risks influenced by macroeconomic conditions, downstream demand, market competition, and raw material prices[78] - Price fluctuations of key raw materials such as corn, corn starch, and xylose, if not promptly passed on, will adversely affect performance[79] - The Zhoushan project, upon completion, will add significant new capacity, posing a market risk of insufficient digestion[81] - The functional sugar alcohol industry is experiencing increasing market concentration, exposing the company to intensified market competition[82] - Stricter national or local environmental standards may increase the company's environmental expenditures, negatively impacting production and operations[83] - Adjustments to export policies may affect the international sales of the company's functional sugar alcohol products[84] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance, profit distribution plans, employee incentive measures, environmental information disclosure, and contributions to poverty alleviation and rural revitalization Changes in Directors, Supervisors, and Senior Management During the reporting period, Mr. Chen Huasheng resigned as a supervisor for personal reasons, and the company subsequently elected Mr. Zheng Yuhao as a non-employee supervisor Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change Status | | :--- | :--- | :--- | | Chen Huasheng | Supervisor | Resigned | | Zheng Yuhao | Supervisor | Elected | - Mr. Chen Huasheng resigned from his position as a company supervisor for personal reasons and holds no other positions in the company after his resignation[87] - The company has elected Mr. Zheng Yuhao as a non-employee supervisor, with his term lasting until the expiration of the Sixth Supervisory Board's term[87] Profit Distribution or Capital Reserve Conversion Plan The company proposes a cash dividend of 2 yuan (tax inclusive) per 10 shares, totaling 60.61 million yuan, with no capital reserve conversion, maintaining the per-share distribution ratio if total share capital changes Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Whether to distribute or convert | Yes | | Number of bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (Yuan) (tax inclusive) | 2 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | - As of August 20, 2025, the company's total share capital is 303.05 million shares, with a proposed cash dividend of 60.61 million yuan (tax inclusive)[88] - If the total share capital changes, the company intends to maintain the per-share distribution ratio and adjust the total distribution amount accordingly[88] Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company completed the repurchase and cancellation of some restricted shares on May 13, 2025, due to the failure to meet the 2024 company-level performance targets - The company approved the "Proposal on Repurchasing and Cancelling Part of Restricted Shares" on February 26, 2025[89] - The number of restricted shares repurchased and cancelled totaled 2.821 million shares, comprising 2.3985 million shares from the initial grant of the 2023 Restricted Stock Incentive Plan and 0.4225 million shares from the reserved grant[171] - The repurchase and cancellation procedures were completed on May 9, 2025, and an announcement was disclosed on May 13, 2025[172] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information The company and its four major subsidiaries (Huakang Shares, Jiaozuo Huakang, Gaomi Tongli, and Huahe Thermal Power) are on the list of enterprises required to disclose environmental information, with corresponding report query indexes provided Enterprises Included in the List of Enterprises Required to Disclose Environmental Information | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Huakang Shares | https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search | | 2 | Jiaozuo Huakang | http://221.214.62.226:8090/EnvironmentDisclosure/ | | 3 | Gaomi Tongli | http://222.143.24.250:8247/home/home | | 4 | Huahe Thermal Power | https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search | Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work The company's total public welfare expenditures and sponsorships for the year amounted to 0.4512 million yuan, primarily supporting local education and road lighting projects - The company's total public welfare expenditures and sponsorships for the year amounted to 0.4512 million yuan[93] - This primarily includes a 100,000 yuan donation for Kaihua Middle School scholarships and an 84,700 yuan donation for road lighting projects[93] Section V Significant Matters This section details the fulfillment of commitments, significant related-party transactions, major contracts, and the progress of raised capital utilization Fulfillment of Commitments The company's actual controllers, controlling shareholders, directors, senior management, and transaction counterparts strictly fulfilled all commitments during the reporting period, covering share lock-ups, information disclosure, avoiding competition, regulating related-party transactions, and maintaining independence - The company's actual controllers and controlling shareholders committed not to transfer shares within 36 months from the listing date and to ensure that the reduction price is not lower than the offering price for two years after the lock-up period expires[97] - The company, its actual controllers, and controlling shareholders committed that the prospectus contains no false records, misleading statements, or major omissions, and will bear corresponding legal liabilities[99][100] - The controlling shareholders and actual controllers committed to avoid horizontal competition and to ensure that related enterprises promptly transfer or terminate businesses if such competition arises[105][106] - The controlling shareholders and actual controllers committed to minimize and avoid related-party transactions with the company and its controlled subsidiaries, ensuring fairness and impartiality[107] - The transaction counterpart committed not to transfer the listed company shares acquired in this transaction within 12 months from the completion date of the new share issuance[144] Significant Related-Party Transactions The company continued to advance the related-party transaction for acquiring 100% equity of Henan Yuxin Sugar Alcohol Co., Ltd. through share issuance and cash payment, which has been accepted by the Shanghai Stock Exchange and received an inquiry letter - The company approved proposals including the "Report on Asset Acquisition by Issuing Shares and Paying Cash and Related-Party Transaction (Draft)" and its summary on March 26, 2025, and April 14, 2025[148] - On April 29, 2025, the company received notification from the Shanghai Stock Exchange regarding the acceptance of its application for asset acquisition by issuing shares[149] - On May 14, 2025, the company received an "Inquiry Letter" from the Shanghai Stock Exchange and disclosed its response report on July 4, 2025[149] Major Contracts and Their Performance During the reporting period, the company's external guarantees primarily involved guarantees for subsidiaries, totaling 319.6 million yuan, representing 9.89% of the company's net assets, with no guarantees provided for shareholders or actual controllers Company's Total Guarantee Situation (Including Guarantees for Subsidiaries) | Indicator | Amount (Ten Thousand Yuan) | | :--- | :--- | | Total guarantees for subsidiaries incurred during the reporting period | 31,960 | | Total outstanding guarantees for subsidiaries at the end of the reporting period (B) | 31,960 | | Total guarantees (A+B) | 31,960 | | Total guarantees as % of company's net assets | 9.89 | | Amount of guarantees provided for shareholders, actual controllers, and their related parties (C) | 0 | Explanation of Progress in Use of Raised Funds The company has invested 2,588.09 million yuan from its initial public offering and 1,220.82 million yuan from convertible bonds, with investment progress at 99.45% and 94.39% respectively. Some projects saw reduced investment due to cost savings, and idle funds were used for temporary working capital and cash management Overall Use of Raised Funds (Units: Ten Thousand Yuan) | Source of Raised Funds | Total Raised Funds (1) | Cumulative Investment at Period-End (4) | Investment Progress (%) (6) | | :--- | :--- | :--- | :--- | | Initial Public Offering | 150,499.82 | 136,727.48 | 99.45 | | Issuance of Convertible Bonds | 130,302.30 | 122,081.85 | 94.39 | | Total | 280,802.12 | 258,809.33 | / | Detailed Use of Raised Investment Projects (Units: Ten Thousand Yuan) | Project Name | Committed Investment Amount from Raised Funds (1) | Cumulative Investment Amount from Raised Funds at Period-End (2) | Investment Progress (%) (3) | | :--- | :--- | :--- | :--- | | Annual Output of 30,000 Tons D-Xylose Green Intelligent Upgrade Project | 25,743.97 | 25,743.97 | 100.00 | | Annual Output of 30,000 Tons High-Purity Crystalline Erythritol Project | 35,041.25 | 36,268.27 | 103.50 | | Annual Output of 30,000 Tons Sorbitol Technical Transformation Project | 20,694.67 | 21,001.23 | 101.48 | | Functional Sugar Alcohol Technology R&D Center Construction Project | 15,810.41 | 9,862.07 | 62.38 | | Comprehensive Upgrade Project for Energy Saving, Water Saving, Emission Reduction, and Green Development for the Entire Plant | 17,262.05 | 16,838.46 | 97.55 | | Replenishment of Working Capital and Repayment of Loans | 22,924.80 | 27,013.48 | 117.84 | | 1 Million Tons Corn Deep Processing Healthy Food Ingredients Project | 129,338.53 | 122,081.85 | 94.39 | - The investment amount for the "Annual Output of 30,000 Tons D-Xylose Green Intelligent Upgrade Project" was reduced, primarily due to the company's cost-saving and rational principles in project construction, lowering material, civil engineering, and procurement costs, thereby improving the efficiency of raised fund utilization[163][164] - The company used idle raised funds not exceeding 50 million yuan for temporary replenishment of working capital, with a term not exceeding 12 months[165] - The company conducted cash management with idle raised funds, with an authorized limit of 800 million yuan[167] Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, restricted shares, and shareholder structure, including information on the top ten shareholders and changes in holdings of directors, supervisors, and senior management Share Capital Changes During the reporting period, the company's restricted shares decreased by 2.8327 million shares due to the repurchase and cancellation of some restricted shares, leading to a corresponding reduction in total share capital to 303.048234 million shares at period-end Share Capital Change Table (Units: Shares) | Category | Quantity Before This Change | Increase/Decrease in This Change (+, -) | Quantity After This Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 6,453,200 | -2,832,700 | 3,620,500 | | 3. Other Domestic Shares | 6,453,200 | -2,832,700 | 3,620,500 | | Domestic Natural Person Shares | 6,453,200 | -2,832,700 | 3,620,500 | | II. Unrestricted Tradable Shares | 299,427,734 | 0 | 299,427,734 | | 1. RMB Ordinary Shares | 299,427,734 | 0 | 299,427,734 | | III. Total Shares | 305,880,934 | -2,832,700 | 303,048,234 | - The company repurchased and cancelled a total of 2.8327 million restricted shares from the 2023 Restricted Stock Incentive Plan, with the cancellation procedures completed on May 9, 2025[171][172] Changes in Restricted Shares During the reporting period, the company's restricted shares decreased by 2.8327 million shares due to the repurchase and cancellation of equity incentives, resulting in 3.6205 million restricted shares at period-end Changes in Restricted Shares (Units: Shares) | Shareholder Name | Beginning Restricted Shares | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Ending Restricted Shares | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Incentive Restricted Shares | 6,453,200 | 2,832,700 | 0 | 3,620,500 | Equity Incentive Restriction | | Total | 6,453,200 | 2,832,700 | - | 3,620,500 | / | - Restricted conditions include a 12, 24, 36-month lock-up period for initially granted restricted shares, with release ratios of 30%, 30%, and 40% respectively; and a 12, 24-month lock-up period for reserved restricted shares, with release ratios of 50% and 50% respectively[174] Shareholder Information As of the end of the reporting period, the company had 17,091 common shareholders. Among the top ten shareholders, Chen Deshui held the largest stake at 15.58%. Several major shareholders had pledged shares. Chen Deshui, Yu Jianming, Cheng Xinping, Xu Xiaorong, and Kaihua Jinyue (controlled by them) are acting in concert - As of the end of the reporting period, the total number of common shareholders was 17,091[174] Top Ten Shareholders' Shareholding (Units: Shares) | Shareholder Name | Ending Shareholding Quantity | Proportion (%) | Pledged, Marked, or Frozen Status (Quantity) | | :--- | :--- | :--- | :--- | | Chen Deshui | 47,208,121 | 15.58 | None | | Cheng Xinping | 16,685,055 | 5.51 | Pledged 9,000,000 | | Xu Xiaorong | 15,691,337 | 5.18 | Pledged 9,500,000 | | Cao Jianhong | 15,691,335 | 5.18 | Pledged 6,000,000 | | Fujian YaKe | 14,510,674 | 4.79 | None | | Yu Jianming | 13,143,335 | 4.34 | Pledged 7,000,000 | - Chen Deshui, Yu Jianming, Cheng Xinping, Xu Xiaorong, and Kaihua Jinyue (controlled by them) are parties acting in concert[177] Information on Directors, Supervisors, and Senior Management During the reporting period, senior management members Wu Zhiping and Wang Jiafa saw a reduction in their shareholdings due to the repurchase and cancellation of equity incentives Changes in Shareholdings of Directors, Supervisors, and Senior Management (Units: Shares) | Name | Position | Beginning Shareholding | Ending Shareholding | Change in Quantity | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Wu Zhiping | Senior Management | 325,000 | 227,500 | -97,500 | Equity incentive repurchase and cancellation | | Wang Jiafa | Senior Management | 1,764,880 | 1,718,080 | -46,800 | Equity incentive repurchase and cancellation | Section VII Bond-Related Information This section provides details on the company's convertible corporate bonds, including issuance, conversion terms, conversion status, and credit ratings Convertible Corporate Bonds The company issued "Huakang Convertible Bonds" in December 2023, totaling 1,303.023 million yuan with a 6-year term, convertible from July 1, 2024, at an initial price of 22.66 yuan/share, adjusted to 16.46 yuan/share. As of June 30, 2025, 0.778 million yuan of bonds were converted, representing 0.0597% of the total issuance. The company's credit rating is AA- with a stable outlook - The company issued "Huakang Convertible Bonds" on December 25, 2023, with a total issuance amount of 1,303.023 million yuan and a 6-year term[184] - "Huakang Convertible Bonds" became convertible from July 1, 2024, with an initial conversion price of 22.66 yuan/share, and the latest conversion price is 16.46 yuan/share[185] Cumulative Conversion Status of "Huakang Convertible Bonds" | Indicator | Value | | :--- | :--- | | Conversion amount in current period (Yuan) | 0 | | Number of shares converted in current period (shares) | 0 | | Cumulative number of shares converted (shares) | 46,054 | | Cumulative number of shares converted as % of total shares issued before conversion | 0.0151% | | Unconverted amount (Yuan) | 1,302,245,000 | | Unconverted bonds as % of total bonds issued | 99.9403% | - The company's main credit rating is AA-, and the rating outlook remains "stable"[195] Section VIII Financial Report This section presents the company's comprehensive financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, taxes, and financial risks Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for the first half of 2025, offering a comprehensive view of its financial position, operating results, and cash flows - The consolidated balance sheet shows total assets of 7,564.60 million yuan as of June 30, 2025, with current assets of 3,086.73 million yuan and non-current assets of 4,477.86 million yuan[198][199] - The consolidated income statement shows total operating revenue of 1,865.86 million yuan for Jan-Jun 2025, net profit of 135.05 million yuan, and net profit attributable to parent company shareholders of 133.71 million yuan[205][206] - The consolidated cash flow statement shows net cash flow from operating activities of 83.16 million yuan, net cash flow from investing activities of -259.74 million yuan, and net cash flow from financing activities of 285.29 million yuan for Jan-Jun 2025[212][213][214] Company Basic Information Zhejiang Huakang Pharmaceutical Co., Ltd., formerly Zhejiang Huakang Pharmaceutical Co., Ltd., was restructured into a joint-stock company in 2007, listed on the Shanghai Stock Exchange in 2021, and primarily engages in the R&D, production, and sales of crystalline sugar alcohols and liquid sugars/alcohols - The company, formerly Zhejiang Huakang Pharmaceutical Co., Ltd., was restructured into a joint-stock company on December 13, 2007[234] - The company's shares were listed on the Shanghai Stock Exchange on February 9, 2021[234] - The company's main business involves the R&D, production, and sales of crystalline sugar alcohol products and liquid sugar, alcohol, and other products[235] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts regarding its ability to continue as a going concern for the next 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[236] - 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[237] Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates for financial instrument impairment, inventory, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition, all in compliance with enterprise accounting standards - The company's financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting its financial position, operating results, and cash flows[239] - The company's accounting year runs from January 1 to December 31, with 12 months used as the liquidity classification standard for assets and liabilities[240][241] - The company classifies, recognizes, measures, and derecognizes financial assets and liabilities, and applies the expected credit loss model to accrue impairment provisions[251][256] - The company depreciates fixed assets using the straight-line method, measures construction in progress at actual cost, and systematically amortizes intangible assets over their useful lives[275][276][280] - Revenue recognition principles are based on contract assessment, identification of distinct performance obligations, and recognition of revenue over time or at a point in time[300][301][302][303] Taxes This section outlines the company's main tax categories and rates, including VAT, property tax, urban maintenance and construction tax, education surcharges, and corporate income tax, highlighting various tax incentives for high-tech enterprises, small and micro-profit enterprises, and advanced manufacturing Main Tax Categories and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax | 6%, 9%, 13%, 21% (Export products are subject to export tax refund policy) | | Property Tax | 1.2%, 12% | | Urban Maintenance and Construction Tax | 5%, 7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15%, 19%, 20%, 25% | - The company and Jiaozuo Huakang are recognized as high-tech enterprises, subject to a 15% corporate income tax rate[317] - Huakang Trading and Xinyisheng meet the criteria for small and micro-profit enterprises, subject to a 20% corporate income tax rate[317] - Jiaozuo Huakang and Gaomi Tongli enjoy a tax incentive where 90% of xylose sales revenue is used to calculate taxable income[318] - The company benefits from the advanced manufacturing enterprise VAT super deduction policy, with an actual super-deducted VAT amount of 6.0157 million yuan for the current period[319] Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, covering assets, liabilities, equity, income, expenses, and cash flows, offering comprehensive insights into the company's financial accounts - Monetary funds at period-end totaled 800.56 million yuan, comprising 491.51 million yuan in bank deposits and 309.05 million yuan in other monetary funds[321] - Accounts receivable at period-end had a book value of 664.48 million yuan, with an impairment provision rate of 5.03%[335] - Inventories at period-end had a book value of 766.43 million yuan, including an inventory impairment provision of 2.23 million yuan for finished goods[365] - Fixed assets at period-end had a book value of 3,090.04 million yuan, and construction in progress had a book value of 554.36 million yuan[380][390] - Short-term borrowings at period-end totaled 537.98 million yuan, and long-term borrowings totaled 1,021.94 million yuan[419][438] - Operating revenue for the current period was 1,865.86 million yuan, and operating cost was 1,533.71 million yuan[460] Research and Development Expenses The company's total R&D expenses for the current period amounted to 68.81 million yuan, all expensed, primarily consisting of direct inputs, personnel costs, and depreciation R&D Expenses by Nature of Expense (Units: Yuan) | Item | Amount for Current Period | Amount for Prior Period | | :--- | :--- | :--- | | Direct input | 38,445,557.98 | 40,320,297.68 | | Personnel costs | 19,757,682.99 | 17,614,319.16 | | Depreciation and long-term amortized expenses | 6,095,991.77 | 1,771,144.84 | | External R&D expenses | - | 1,472,330.10 | | Amortization of intangible assets | 441,272.25 | 346,617.14 | | Other expenses | 4,071,062.03 | 2,500,630.24 | | Total | 68,811,567.02 | 64,025,339.16 | | Of which: Expensed R&D expenses | 68,811,567.02 | 64,025,339.16 | Interests in Other Entities This section discloses the company's equity interests in subsidiaries and associates, including wholly-owned subsidiaries like Jiaozuo Huakang and Zhoushan Huakang, and a 50% equity stake in Sichuan Yanhua Biological Co., Ltd. accounted for using the equity method Composition of the Enterprise Group | Subsidiary Name | Registered Place | Business Nature | Shareholding Ratio (%) (Direct) | | :--- | :--- | :--- | :--- | | Jiaozuo Huakang | Jiaozuo, Henan | Manufacturing | 100.00 | | Gaomi Tongli | Gaomi, Shandong | Manufacturing | 100.00 | | Huakang Trading | Hangzhou, Zhejiang | Commercial | 100.00 | | Huakang Europe | Netherlands | Commercial | 100.00 | | Zhoushan Huakang | Zhoushan, Zhejiang | Manufacturing | 100.00 | | Huahe Thermal Power | Zhoushan, Zhejiang | Manufacturing | 95.00 | | Xinyisheng | Zhoushan, Zhejiang | Commercial | 95.00 | | Jinggong Agriculture | Zhoushan, Zhejiang | Other Agriculture | 100.00 (Indirect) | - The company holds a 50% equity stake in Sichuan Yanhua Biological Co., Ltd., accounted for using the equity method[512] Key Financial Information of Significant Associate Sichuan Yanhua Company (Units: Yuan) | Item | Ending Balance/Amount for Current Period | | :--- | :--- | | Total Assets | 210,019,482.25 | | Total Liabilities | 99,743,189.22 | | Equity Attributable to Parent Company Shareholders | 110,276,293.03 | | Operating Revenue | 58,328,336.54 | | Net Profit | -1,525,596.49 | | Total Comprehensive Income | -1,525,596.49 | Government Grants At the end of the reporting period, government grant-related liabilities primarily consisted of deferred income totaling 136.65 million yuan. Total government grants recognized in profit or loss for the current period amounted to 7.83 million yuan, including both income-related and asset-related subsidies Liability Items Involving Government Grants (Units: Yuan) | Financial Statement Item | Beginning Balance | New Grants in Current Period | Transferred to Other Income in Current Period | Ending Balance | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred income | 109,973,398.14 | 28,947,000.00 | 4,965,687.72 | 133,954,710.42 | Related to assets | | Deferred income | - | 2,730,000.00 | 31,921.09 | 2,698,078.91 | Related to income | | Total | 109,973,398.14 | 31,677,000.00 | 4,997,608.81 | 136,652,789.33 | / | Government Grants Recognized in Profit or Loss for the Current Period (Units: Yuan) | Type | Amount for Current Period | Amount for Prior Period | | :--- | :--- | :--- | | Related to income | 3,539,376.24 | 1,683,314.91 | | Related to assets | 4,295,132.18 | 4,268,264.76 | | Total | 7,834,508.42 | 5,951,579.67 | Risks Related to Financial Instruments The company manages credit, liquidity, and market risks by assessing creditworthiness, diversifying financing, and monitoring interest rate and foreign exchange fluctuations to balance risk and return - The company faces credit risk, liquidity risk, and market risk, which are balanced through risk management policies[517] - Credit risk primarily arises from monetary funds and receivables, controlled through credit assessment and monitoring of receivable balances[519] - Liquidity risk is managed through various financing methods such as bill settlements, bank borrowings, and corporate bonds, combined with both long-term and short-term financing[520] - Market risk mainly includes interest rate risk and foreign exchange risk, managed by maintaining an appropriate portfolio of financial instruments and trading foreign currencies[523][524][525] Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value at period-end, including trading financial assets (wealth management products, accounts receivable financing) and trading financial liabilities (derivative financial liabilities), using Level 1 and Level 2 inputs Fair Value Measurement Items at Period-End (Units: Yuan) | Item | Level 2 Fair Value Measurement | Level 1 Fair Value Measurement | Total | | :--- | :--- | :--- | :--- | | Total trading financial assets | 127,838,945.34 | - | 127,838,945.34 | | Of which: Bank wealth management products | 30,000,000.00 | - | 30,000,000.00 | | Notes receivable financing | 97,838,945.34 | - | 97,838,945.34 | | Total trading financial liabilities | - | 18,500.00 | 18,500.00 | | Of which: Derivative financial liabilities | - | 18,500.00 | 18,500.00 | - For unexpired futures contracts at period-end, the fair value of trading financial assets or liabilities is determined based on unadjusted quotes from the futures market[530] - For bills receivable and bank wealth management products held, fair value is determined by their face amount; for accounts receivable sold to banks, fair value is determined by the amount after deducting impairment provisions[531] Related Parties and Related-Party Transactions The company's ultimate control rests with Chen Deshui, Cheng Xinping, Xu Xiaorong, and Yu Jianming, along with Kaihua Jinyue. This section details related-party transactions, including purchases and sales of goods, provision and acceptance of services, key management personnel compensation, and balances of receivables and payables with related parties - The company's ultimate controlling parties are Chen Deshui, Cheng Xinping, Xu Xiaorong, and Yu Jianming, who collectively control 32.01% of the company's shares[533] Related-Party Transactions for Purchase and Sale of Goods, Acceptance of Services (Units: Yuan) | Related Party | Related Transaction Content | Amount for Current Period | | :--- | :--- | :--- | | Sichuan Yanhua Company | Purchase of goods | 57,915,040.96 | | Ruitong Logistics Company | Acceptance of services | 13,684,903.10 | | Quzhou Xinhui Logistics Co., Ltd. and its related parties | Acceptance of services | 27,459,145.13 | | Kaihua County Guosheng Equipment Installation Co., Ltd. and its related parties | Acceptance of services | 2,889,221.78 | | Fujian YaKe Company | Purchase of goods | 103,468.14 | Related-Party Transactions for Sale of Goods/Provision of Services (Units: Yuan) | Related Party | Related Transaction Content | Amount for Current Period | | :--- | :--- | :--- | | Sichuan Yanhua Company | Sugar alcohol products | 1,460.18 | | Fujian YaKe Company | Sugar alcohol products | 414,154.87 | | YaKe China Company | Sugar alcohol products | 100,380.53 | | Xinhui Logistics Company | Sugar alcohol products | 67,493.36 | - Key management personnel compensation for the current period amounted to 4.7371 million yuan[542] Period-End Balances of Receivables from Related Parties (Units: Yuan) | Item Name | Related Party | Book Balance | | :--- | :--- | :--- | | Accounts receivable | Fujian YaKe Company | 364,360.00 | | Accounts receivable | YaKe China Company | 23,522.00 | Period-End Balances of Payables to Related Parties (Units: Yuan) | Item Name | Related Party | Book Balance | | :--- | :--- | :--- | | Accounts payable | Ruitong Logistics Company | 7,333,606.80 | | Accounts payable | Quzhou Xinhui Logistics Co., Ltd. and its related parties | 14,095,864.05 | | Advance payments | Sichuan Yanhua Company | 9,244,530.00 | Share-Based Payment The company repurchased and cancelled some restricted shares due to the failure to meet 2024 company-level performance targets. Equity-settled share-based payment expenses for the current period tota