奥福科技(688021) - 2025 Q2 - 季度财报

Section I Definitions This section defines common terms used in the report, including company names, subsidiaries, industry-specific terms, and financial reporting periods, ensuring clear understanding of the content Definitions of Common Terms This chapter provides definitions for common terms used in the report, covering company names, subsidiary names, industry terms (e.g., honeycomb ceramics, NOx, PM), and key concepts like financial reporting periods, ensuring clear understanding of the report's content - Aofu Technology, Aofu Environmental, the Company, and this Company all refer to Shandong Aofu Environmental Technology Co., Ltd[9] - Honeycomb ceramic is a porous ceramic with many through honeycomb-shaped parallel channels separated by thin partitions[9] - The reporting period refers to January 1, 2025, to June 30, 2025[10] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, information disclosure, stock summary, and key financial performance for the first half of 2025, highlighting revenue growth and reduced net loss I. Company Basic Information This section introduces the basic information of Shandong Aofu Environmental Technology Co., Ltd., including its company name, legal representative, registered address, website, and email, also noting changes in registered address and stock abbreviation during the reporting period - The company's Chinese name is Shandong Aofu Environmental Technology Co., Ltd., and its Chinese abbreviation is Aofu Technology[12] - The company's legal representative is Pan Jiqing[12] - During the reporting period, the company's stock abbreviation changed from “Aofu Environmental” to “Aofu Technology,” and its registered address also changed[12] II. Contact Persons and Information This section provides contact information for the company's Board Secretary (domestic representative for information disclosure), Pan Jieyu, and Securities Affairs Representative, Zhang Fengzhen, including address, phone, fax, and email, facilitating investor inquiries and communication - The Board Secretary (domestic representative for information disclosure) is Pan Jieyu, and the Securities Affairs Representative is Zhang Fengzhen[13] - Contact phone number is 0534-4260688, and email is shandongaofu@aofuchina.com[13] III. Overview of Changes in Information Disclosure and Document Availability Locations This section specifies the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the location where semi-annual reports are available, ensuring investors can access public company information promptly - The company's selected newspapers for information disclosure are China Securities Journal, Shanghai Securities News, and Securities Times[14] - The website address for publishing semi-annual reports is http://www.sse.com.cn[14](index=14&type=chunk) IV. Company Stock/Depositary Receipt Summary This section introduces the company's stock listing exchange and board, stock abbreviation, and code, confirming the absence of depositary receipts - The company's stock is A-shares, listed on the STAR Market of the Shanghai Stock Exchange[15] - The stock abbreviation is Aofu Technology, stock code is 688021, and the previous stock abbreviation was Aofu Environmental[15] VI. Company's Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue increased by 24.90% to 176.64 million yuan, primarily due to the recovery of the commercial heavy truck market, with net loss attributable to shareholders significantly narrowing to -2.42 million yuan, and net cash flow from operating activities increasing by 88.94% 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 176,641,636.85 | 141,422,467.42 | 24.90 | | Total Profit | -2,407,033.87 | -15,012,222.86 | - | | Net Profit Attributable to Shareholders of the Listed Company | -2,415,263.96 | -13,615,963.06 | - | | Net Cash Flow from Operating Activities | 36,072,550.65 | 19,092,036.33 | 88.94 | | Net Assets Attributable to Shareholders of the Listed Company (Period-End) | 855,323,870.70 | 857,739,134.66 | -0.28 | | Total Assets (Period-End) | 1,173,629,321.82 | 1,190,194,186.69 | -1.39 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | -0.03 | -0.18 | - | | Diluted Earnings Per Share (yuan/share) | -0.03 | -0.18 | - | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | -0.07 | -0.25 | - | | Weighted Average Return on Net Assets (%) | -0.28 | -1.51 | - | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -0.66 | -2.14 | - | | R&D Investment as Percentage of Operating Revenue (%) | 7.57 | 8.89 | Decreased by 1.32 percentage points | - In the first half of 2025, the company's operating revenue increased by 24.90%, mainly benefiting from the recovery in the commercial heavy truck market[19] - The company's net loss attributable to shareholders significantly narrowed, decreasing from -13.62 million yuan in the same period last year to -2.42 million yuan[18][19] VIII. Non-Recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling 3.31 million yuan, primarily including government subsidies and non-current asset disposal gains, which positively contributed to the company's net profit improvement 2025 Semi-Annual Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | 105,872.16 | | Government grants recognized in current profit or loss | 3,627,488.70 | | Fair value changes and disposal gains and losses from financial assets and liabilities held by non-financial enterprises | 7,513.79 | | Fund occupation fees collected from non-financial enterprises recognized in current profit or loss | 66,711.12 | | Other non-operating income and expenses apart from the above | -549.36 | | Less: Income tax impact amount | 499,928.43 | | Minority interest impact amount (after tax) | 387.32 | | Total | 3,306,720.66 | IX. Net Profit After Deducting Impact of Share-Based Payments This section discloses the net profit after deducting the impact of share-based payments, which was -2.61 million yuan for the current reporting period, a significant improvement of 80.31% compared to -13.24 million yuan in the same period last year, reflecting an enhancement in the company's core business profitability Net Profit After Deducting Impact of Share-Based Payments | Indicator | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting impact of share-based payments | -2,607,432.27 | -13,239,487.86 | 80.31 | X. Explanation of Non-GAAP Performance Indicators This section explains why net profit attributable to shareholders, excluding the impact of share-based payments, is used as a non-GAAP financial indicator, as it more accurately reflects the company's operating profitability. During the reporting period, this indicator grew year-on-year, primarily due to expanded sales and cost reduction efforts Net Profit Attributable to Shareholders Excluding Impact of Share-Based Payments | Accounting Indicator | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net profit attributable to shareholders of the listed company | -2,415,263.96 | -13,615,963.06 | | Adjustment item: Share-based payment expense | - | 842,231.34 | | Adjustment item: Income tax impact of share-based payment expense | - | -126,878.87 | | Non-GAAP financial indicator: Net profit attributable to shareholders excluding impact of share-based payments | -2,415,263.96 | -12,900,610.59 | - Net profit attributable to the parent company after deducting the impact of share-based payments can more accurately reflect the company's operating profitability, focusing on core business performance[25] - During the reporting period, due to expanded sales scale and effective cost reduction measures, the company's net profit attributable to the parent company after deducting the impact of share-based payments achieved year-on-year growth[25] Section III Management Discussion and Analysis This section discusses the company's industry, main business operations, and financial performance for the first half of 2025, highlighting revenue growth, reduced losses, and strategic initiatives in technology, market expansion, and corporate governance I. Description of the Company's Industry and Main Business Operations During the Reporting Period The company specializes in honeycomb ceramic technology, providing products for atmospheric pollution control, including carriers for vehicle after-treatment, non-road and marine engine after-treatment, and energy-saving regenerators for industrial engineering. It operates on "production-based procurement" and "sales-based production" models, with direct sales covering domestic and VMI/non-VMI export modes - The company belongs to “Manufacturing – Special Equipment Manufacturing – Environmental Protection, Social Public Services and Other Special Equipment Manufacturing – Environmental Protection Special Equipment Manufacturing” (Code: C3591)[28] - The company's main products include flow-through carriers (DOC, SCR, ASC, and TWC) and wall-flow carriers (DPF, ACT-DPF, SiC-DPF, and GPF) for motor vehicle after-treatment, carriers for non-road and marine engine after-treatment, and energy-saving regenerators for industrial engineering[29] - The company's procurement model is primarily “production-based procurement,” its production model is mainly “sales-based production” with safety stock, and its sales model is direct sales, divided into domestic sales and VMI/non-VMI export sales[30][31] II. Discussion and Analysis of Operations In the first half of 2025, the company's operating revenue grew by 24.90% to 176.64 million yuan, with net loss significantly narrowing to -2.42 million yuan, driven by heavy truck market recovery, sales growth, and cost-efficiency measures. The company made progress in enhancing operational quality, accelerating new productive forces, and improving corporate governance, including consolidating heavy truck market advantages, expanding gasoline engine small carrier business, deepening global presence, optimizing capacity management, increasing R&D investment in hydrogen energy and thermoacoustics, and completing supervisory board reform and articles of association revisions - In the first half of 2025, the company's operating revenue was 176.64 million yuan, a year-on-year increase of 24.90%; net profit attributable to shareholders was -2.42 million yuan, with a significant narrowing of losses year-on-year[32][33] - The company continues to consolidate its market advantage in the heavy truck segment both domestically and internationally, actively promoting the development of gasoline engine small carrier business, with a new project for a certain independent brand automaker achieving mass production, and GPF products passing bench tests for a key customer[34] - The company responded to US tariff challenges by optimizing supply chain layout and adjusting product pricing strategies, driving export revenue to a new high in the first half of the year and accelerating its global expansion[35] - Total R&D investment during the reporting period was 13.37 million yuan, an increase of 6.39% compared to the same period last year, with 7 new invention patents[36] - The company successfully developed ultra-high cell density honeycomb ceramics (cell density greater than 10,000 cpsi) and applied them in emerging business areas such as hydrogen energy and thermoacoustics[37][38] - Subsidiary Aofu Hydrogen Energy has completed the development of methanol, propane, and natural gas reforming hydrogen production technologies, and 300W SOFC systems have achieved sales and small-batch supporting applications[39] - The company completed the reform of its supervisory board, abolishing it and transferring relevant powers to the Board's Audit Committee, and revised the "Articles of Association" and 33 supporting systems[42][43] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its technological and R&D advantages, strategic geographical location, and a professional, stable core team with sound incentive mechanisms. It holds leading advantages in cordierite material synthesis, SiC-DPF preparation, integrated formula-mold-sintering processes, R&D experience curve, and product technology reserves. During the reporting period, the company added 7 invention patents and actively participated in national key R&D programs, continuously expanding into new materials and applications - The company possesses a professional R&D team and a comprehensive R&D management system, holding multiple core technologies in mobile and industrial source atmospheric pollution control[45] - The company has systematically mastered cordierite material crystal synthesis and oriented growth technology, as well as the preparation methods for silicon carbide DPFs (symmetric and asymmetric pore structures)[45][46] - The company possesses advanced technology in key aspects of honeycomb ceramics, including formulation, mold design and manufacturing, and firing processes, forming a relatively complete technical system[47][48][49] - The company has accumulated years of R&D experience in honeycomb ceramic technology, establishing a scientific experimental database with tens of thousands of formulas and samples, demonstrating an R&D experience curve advantage[50] - In terms of product layout, the company closely follows the upgrading pace of national atmospheric pollution control regulations, reserving technologies and processes adaptable to future regulatory standards[51] - The company has achieved localized support through its factory layouts in Shandong, Chongqing, Anhui, and other regions, possessing significant geographical advantages[52] - During the reporting period, the company added 7 invention patents and actively participated in the “14th Five-Year Plan” National Key R&D Program “Comprehensive Treatment of Atmospheric, Soil, and Groundwater Pollution” special project[61][63] 2025 Semi-Annual R&D Investment | Indicator | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 13,368,643.67 | 12,565,598.51 | 6.39 | | Total R&D Investment | 13,368,643.67 | 12,565,598.51 | 6.39 | | Total R&D Investment as Percentage of Operating Revenue (%) | 7.57 | 8.89 | Decreased by 1.32 percentage points | - The company has 92 R&D personnel, accounting for 16.58% of the total workforce, with total R&D personnel compensation of 5.38 million yuan, and an average compensation of 58,400 yuan[70] IV. Risk Factors The company faces multiple risks, including complex macroeconomic environment, heavy truck market challenges, and pressure on product gross margins, leading to potential performance decline or increased losses. Core competitiveness risks involve new product R&D failure, lagging technological upgrades, and loss of technical talent. Operational risks include high customer concentration, downstream industry fluctuations, impact from new energy vehicle substitution, and issues with raw material procurement and product quality. Financial risks encompass debt pressure, inventory impairment, gross margin decline, exchange rate fluctuations, and accounts receivable collection risks. Additionally, changes in industry regulations and macroeconomic uncertainties pose significant challenges - The company faces risks of significant performance decline or losses, primarily due to multiple factors including the macroeconomic environment, heavy truck market challenges, gross margin pressure, insufficient capacity utilization, and declining product prices[72] - Core competitiveness risks include new product R&D failure, technological upgrades and product iteration not meeting expectations, and the loss of core technical talent[73][74][75] - Operational risks include high customer concentration (top five customers account for 57.83% of sales), fluctuations in the downstream commercial vehicle industry, and changes in the industrial landscape due to large-scale substitution of traditional internal combustion engine vehicles by new energy vehicles[76][78][79] - Financial risks include debt pressure, inventory impairment or obsolescence risk (inventory accounts for 44.83% of current assets), gross margin decline risk (2025 semi-annual gross margin of 18.49%), exchange rate fluctuation risk, and accounts receivable collection risk[83][84][85][87][88] - Industry risks primarily stem from failing to seize opportunities from emission regulation upgrades and the pressure of new energy vehicles replacing traditional fuel vehicles[89] V. Key Operating Performance During the Reporting Period During the reporting period, the company's operating revenue increased by 24.90% to 176.64 million yuan, with net loss narrowing to -2.42 million yuan, primarily due to market recovery, sales growth, effective cost control, reduced financial burden, and lower administrative expenses. The asset-liability structure remained stable, with significant increases in notes receivable and accounts receivable financing, and a decrease in inventory balance. Investment activities mainly involved short-term interbank lending and cash management, while financing activities focused on reducing bank loan scale. Key subsidiary Chongqing Aofu achieved a net profit of 13.98 million yuan - During the reporting period, the company achieved operating revenue of 176.64 million yuan, a year-on-year increase of 24.90%; net profit attributable to shareholders was -2.42 million yuan, with losses narrowing compared to the same period last year[91] - Performance improvement was mainly due to market recovery driving sales growth, effective cost control, reduced financial burden, and decreased administrative expenses[91] 2025 Semi-Annual Financial Statement Related Account Changes Analysis | Account | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 176,641,636.85 | 141,422,467.42 | 24.90 | | Operating Cost | 143,981,449.06 | 113,168,671.99 | 27.23 | | Selling Expenses | 4,666,218.69 | 5,098,964.19 | -8.49 | | Administrative Expenses | 15,460,809.23 | 18,815,954.57 | -17.83 | | Financial Expenses | 1,957,657.06 | 4,485,256.63 | -56.35 | | R&D Expenses | 13,368,643.67 | 12,565,598.51 | 6.39 | | Net Cash Flow from Operating Activities | 36,072,550.65 | 19,092,036.33 | 88.94 | | Net Cash Flow from Investing Activities | -18,817,297.70 | 13,279,761.46 | -241.70 | | Net Cash Flow from Financing Activities | -28,186,093.05 | -12,672,889.38 | -122.41 | - The year-end balances of notes receivable and accounts receivable financing increased by 45.70% and 285.07% respectively compared to the end of the previous year, mainly due to increased sales revenue and holding more low-risk notes[96] - The year-end inventory balance decreased by 13.66% compared to the end of the previous year, effectively activating idle funds and reducing inventory impairment risk[96] - Net cash flow from investment activities changed from net inflow to net outflow, mainly due to short-term interbank lending to specific parties and no matured redemptions of cash management funds during the current period[94] - Net cash flow from financing activities significantly decreased, mainly due to the reduction in bank loan scale during the current period[94] Financial Information of Major Holding and Participating Subsidiaries | Company Name | Company Type | Registered Capital (10,000 yuan) | Total Assets (10,000 yuan) | Net Assets (10,000 yuan) | Operating Revenue (10,000 yuan) | Operating Profit (10,000 yuan) | Net Profit (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dezhou Aoshen | Subsidiary | 5,000.00 | 12,828.66 | 4,282.89 | 160.52 | -259.87 | -259.87 | | Chongqing Aofu | Subsidiary | 7,600.00 | 25,769.27 | 10,031.24 | 8,794.29 | 1,589.34 | 1,397.83 | | Bengbu Aomei | Subsidiary | 2,000.00 | 5,104.96 | 3,678.03 | 764.52 | 232.08 | 197.23 | | Jiangxi Aofu | Subsidiary | 5,699.16 | 3,507.67 | 1,358.84 | 94.47 | -46.96 | -46.96 | | Anhui Aofu | Subsidiary | 6,600.00 | 26,751.22 | 2,763.44 | 1,943.09 | -832.48 | -832.48 | Section IV Corporate Governance, Environment, and Society This section covers changes in the company's directors, senior management, and core technical personnel, profit distribution plans, equity incentive programs, and environmental information disclosure, highlighting the company's commitment to talent management, governance, and environmental compliance I. Changes in the Company's Directors, Senior Management, and Core Technical Personnel This section explains the criteria for identifying the company's core technical personnel, including qualifications, years of service, R&D contributions, and project leadership experience, aiming to ensure the professionalism and stability of the company's talent pool - The criteria for identifying the company's core technical personnel include possessing profound qualifications and rich R&D experience, over 5 years of service, undertaking important R&D work and successfully applying for patents, and having led or undertaken major scientific and technological research projects[109] II. Profit Distribution or Capital Reserve Conversion Plan This section discloses that the company's semi-annual profit distribution or capital reserve conversion plan is "none," indicating no profit distribution or capital reserve conversion into share capital for the current reporting period - The company's proposed semi-annual profit distribution plan or capital reserve conversion to share capital plan is “none”[110] III. Status and Impact of the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures This section reviews the implementation of the company's 2022 restricted stock incentive plan, including the initial grant, the first vesting period conditions being met but not exercised, and the second and third vesting periods not meeting vesting conditions and being cancelled, thus concluding the entire incentive plan - The company's 2022 restricted stock incentive plan initially granted 3,850,000 shares of Class II restricted stock on May 13, 2022[111] - The vesting conditions for the first vesting period of the 2022 restricted stock incentive plan were met, but due to the company's stock price on the secondary market consistently being below the adjusted grant price, none of the incentive recipients exercised their rights[140] - The second and third vesting periods did not meet the vesting conditions, and all granted but unvested restricted shares have been cancelled, thus concluding the entire 2022 restricted stock incentive plan[140] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law This section discloses that Shandong Aofu Environmental Technology Co., Ltd. has been included in the list of enterprises required to disclose environmental information by law, providing a query index, demonstrating the company's compliance with environmental information disclosure - Shandong Aofu Environmental Technology Co., Ltd. has been included in the list of enterprises required to disclose environmental information by law[112] - The query index for the environmental information disclosure report is http://221.214.62.226:8090/EnvironmentDisclosure/enterpriseRoster/openEnterpriseDetails?comDetailFrom=0&id=91371400692032176X[112](index=112&type=chunk) Section V Significant Matters This section details the fulfillment of commitments by the company and its stakeholders, significant related-party transactions, major contracts including guarantees, and the progress of raised funds utilization, ensuring transparency in key operational and financial events I. Fulfillment of Commitments This section details various commitments made by the company's actual controller, shareholders, directors, senior management, and core technical personnel regarding initial public offering, equity incentives, and other matters, confirming that all commitments were strictly fulfilled during the reporting period without any delays - Former actual controller Pan Jiqing committed not to transfer shares issued before the initial public offering within 36 months from the company's stock listing date, and to transfer no more than 25% of his total shares annually while serving as a director, supervisor, or senior executive of the company[114] - The company and its former actual controller committed that the initial public offering prospectus contains no false records, misleading statements, or material omissions, and will initiate a share repurchase program and compensate investors for losses if violated[117][118] - During the reporting period, all parties involved in commitments, including the company's actual controller, shareholders, related parties, acquirers, and the company itself, strictly fulfilled their respective commitments[114][115][116][117][118][119] X. Significant Related-Party Transactions This section discloses the company's related-party transactions in ordinary operations, including procurement of goods/acceptance of services and related-party leases, and states that the estimated amount for 2025 annual ordinary related-party transactions, totaling 3.8 million yuan, has been disclosed in a temporary announcement - The company expects the amount of ordinary related-party transactions for 2025 to be 3.8 million yuan, which has been disclosed in a temporary announcement[121] 2025 Semi-Annual Related-Party Transactions for Procurement of Goods/Acceptance of Services | Related Party | Related Transaction Content | Current Period Amount (yuan) | Approved Transaction Limit (yuan) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Shanghai Yunbai Supply Chain Co., Ltd. | Warehousing and logistics services | 1,343,078.89 | 3,500,000.00 | No | | Tianjin Chuangdao Thermal Material Co., Ltd. | Materials | 3,982.30 | 200,000.00 | No | 2025 Semi-Annual Related-Party Leases (as Lessor) | Lessee Name | Type of Leased Asset | Lease Income Recognized in Current Period (yuan) | | :--- | :--- | :--- | | Shanghai Yunbai | Buildings and structures | 39,880.77 | 2025 Semi-Annual Related-Party Leases (as Lessee) | Lessor Name | Type of Leased Asset | Rent Paid in Current Period (yuan) | Lease Liability Interest Expense Incurred in Current Period (yuan) | | :--- | :--- | :--- | :--- | | Shanghai Yunbai | Warehouse | 478,103.54 | 29,217.84 | XI. Significant Contracts and Their Fulfillment This section discloses the company's significant guarantees, both ongoing and unfulfilled, during the reporting period, primarily involving the company's guarantees for subsidiaries' bank loans, totaling 144.74 million yuan, representing 16.82% of the company's net assets 2025 Semi-Annual Guarantees by the Company and Its Subsidiaries for Subsidiaries | Guarantor | Guaranteed Party | Guarantee Amount (yuan) | Guarantee Start Date | Guarantee End Date | Guarantee Type | | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Aofu Environmental Technology Co., Ltd. | Dezhou Aoshen | 5,000,000.00 | 2025.02.12 | 2026.02.12 | Joint and several liability guarantee | | Shandong Aofu Environmental Technology Co., Ltd. | Chongqing Aofu | 51,300,000.00 | 2023.07.28 | 2026.07.28 | Joint and several liability guarantee | | Shandong Aofu Environmental Technology Co., Ltd. | Anhui Aofu | 154,000,000.00 | 2022.02.11 | 2029.01.25 | Joint and several liability guarantee | - The total guarantee balance for subsidiaries at the end of the reporting period was 144.74 million yuan[128] - The total guarantee amount accounts for 16.82% of the company's net assets[128] XII. Explanation of Progress in Use of Raised Funds This section states that all fundraising projects related to the company's initial public offering were completed in 2024, and the associated special fundraising accounts have been closed, indicating that the raised funds have been utilized as planned - All fundraising projects related to the company's initial public offering were completed in 2024[131] - The associated special fundraising accounts have been closed[131] Section VI Share Changes and Shareholder Information This section details the company's share capital changes and shareholder structure, including the total number of shareholders and the top ten shareholders' holdings, as well as changes in shares held by directors, senior management, and core technical personnel I. Share Capital Changes During the reporting period, the company's total ordinary share capital and share structure remained unchanged, maintaining stability - During the reporting period, the company's total ordinary share capital and share structure remained unchanged[133] II. Shareholder Information As of June 30, 2025, the company had 3,682 ordinary shareholders. The top ten shareholders' holdings show Pan Jiqing, Yu Faming, and Wang Jianzhong as the top three, with ownership percentages of 14.06%, 12.29%, and 11.92% respectively. Some shareholders hold shares through both ordinary securities accounts and margin trading and securities lending accounts - As of the end of the reporting period, the company had a total of 3,682 ordinary shareholders[134] Top Ten Shareholders' Holdings as of June 30, 2025 | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Pan Jiqing | 10,743,827 | 14.06 | Domestic Natural Person | | Yu Faming | 9,388,460 | 12.29 | Domestic Natural Person | | Wang Jianzhong | 9,105,967 | 11.92 | Domestic Natural Person | | Zhou Jie | 2,281,721 | 2.99 | Domestic Natural Person | | Wang Wenxin | 1,571,136 | 2.06 | Domestic Natural Person | | Yu Jinming | 1,545,619 | 2.02 | Domestic Natural Person | | Gao Qiang | 1,166,277 | 1.53 | Domestic Natural Person | | Liu Hongyue | 1,139,538 | 1.49 | Other | | Zhang Chunming | 1,115,394 | 1.46 | Domestic Natural Person | | Cai Jinxing | 1,039,000 | 1.36 | Domestic Natural Person | - Among the top ten shareholders, Yu Faming and Yu Jinming are brothers[136] III. Information on Directors, Senior Management, and Core Technical Personnel This section lists the shareholding changes of the company's current and departed directors, senior management, and core technical personnel during the reporting period. Core technical personnel Huang Feihui's shares decreased by 15,656 due to secondary market sales. The company's 2022 restricted stock incentive plan has been fully concluded Shareholding Changes of Directors, Senior Management, and Core Technical Personnel | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | Change in Shares During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Pan Jiqing | Chairman, Core Technical Personnel | 10,743,827 | 10,743,827 | - | / | | Wang Jianzhong | Director | 9,105,967 | 9,105,967 | - | / | | Huang Feihui | Head of Technology Department, Core Technical Personnel | 126,279 | 110,623 | -15,656 | Secondary market sale | - The vesting conditions for the first vesting period of the company's 2022 restricted stock incentive plan were met but not exercised, the second and third vesting periods did not meet the vesting conditions, and all granted but unvested restricted shares have been cancelled, thus concluding the entire plan[140] Section VII Bond-Related Information This section confirms that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds, during the reporting period I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This section states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[143] II. Convertible Corporate Bonds This section states that the company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[143] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements for 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, tax items, and financial risks, providing a comprehensive view of the company's financial health and performance I. Audit Report This section states that the company's semi-annual report is unaudited - This semi-annual report is unaudited[4] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow. During the reporting period, total assets and net assets attributable to the parent company slightly decreased, but operating revenue grew, net loss narrowed, and operating cash flow significantly improved Consolidated Balance Sheet Key Data (as of June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 46,769,708.05 | 49,727,316.49 | | Financial Assets Held for Trading | 5,507,513.79 | - | | Notes Receivable | 22,985,055.37 | 15,775,693.08 | | Accounts Receivable | 121,380,700.96 | 118,921,732.17 | | Inventories | 205,459,757.14 | 237,975,749.98 | | Total Current Assets | 458,319,833.51 | 456,034,111.36 | | Fixed Assets | 522,181,142.96 | 544,402,087.99 | | Total Assets | 1,173,629,321.82 | 1,190,194,186.69 | | Short-term Borrowings | 83,515,954.48 | 84,127,811.87 | | Notes Payable | 7,249,674.51 | 929,223.00 | | Total Liabilities | 312,878,367.23 | 326,835,799.83 | | Total Owners' Equity Attributable to Parent Company | 855,323,870.70 | 857,739,134.66 | Consolidated Income Statement Key Data (January-June 2025) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 176,641,636.85 | 141,422,467.42 | | Total Operating Cost | 181,901,630.31 | 156,500,462.33 | | Operating Profit | -2,406,484.51 | -15,092,828.55 | | Total Profit | -2,407,033.87 | -15,012,222.86 | | Net Profit | -2,607,432.27 | -13,954,840.33 | | Net Profit Attributable to Parent Company Shareholders | -2,415,263.96 | -13,615,963.06 | | Basic Earnings Per Share (yuan/share) | -0.03 | -0.18 | Consolidated Cash Flow Statement Key Data (January-June 2025) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 36,072,550.65 | 19,092,036.33 | | Net Cash Flow from Investing Activities | -18,817,297.70 | 13,279,761.46 | | Net Cash Flow from Financing Activities | -28,186,093.05 | -12,672,889.38 | | Net Increase in Cash and Cash Equivalents | -10,249,067.57 | 21,054,503.26 | | Cash and Cash Equivalents at Period-End | 39,282,989.54 | 99,340,707.78 | III. Company Basic Information This section outlines the company's establishment, listing, share capital changes, and business scope. The company was established through a comprehensive change from Beijing Aofu (Linyi) Fine Ceramics Co., Ltd. and listed on the STAR Market in 2019. During the reporting period, the company's total share capital decreased due to the cancellation of repurchased shares, and its business scope covers the manufacturing and import/export of honeycomb ceramics, precision ceramics, and other related products - Shandong Aofu Environmental Technology Co., Ltd. was listed on the STAR Market of the Shanghai Stock Exchange on November 6, 2019[176] - As of December 31, 2024, the company's total share capital decreased from 77,283,584 shares to 76,413,717 shares, with a corresponding reduction in registered capital[177] - The company's business scope includes manufacturing honeycomb ceramics, honeycomb ceramic carriers, precision ceramics, fillers, and import/export business for related products[177] IV. Basis of Financial Statement Preparation This section states that the company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards, their application guidelines and interpretations, and the China Securities Regulatory Commission's "Information Disclosure Compilation Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" (Revised 2023). The company assessed its going concern ability as good for at least 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis, with recognition and measurement in accordance with enterprise accounting standards, their application guidelines, and interpretations[178] - The company assessed its going concern ability for at least 12 months from the end of the reporting period and found no matters affecting its going concern ability[179] V. Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as business combinations, consolidated financial statements, financial instrument recognition and measurement, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, employee compensation, revenue recognition, government grants, and deferred income tax, ensuring the accuracy and compliance of financial reporting - The company adheres to enterprise accounting standards to truly and completely reflect its financial position, operating results, changes in shareholders' equity, and cash flows[181] - At initial recognition, the company classifies financial assets as measured at amortized cost, at fair value through profit or loss, or at fair value through other comprehensive income, based on the business model for managing financial assets and the contractual cash flow characteristics[204] - For financial assets measured at amortized cost, debt investments measured at fair value through other comprehensive income, contract assets, etc., the company recognizes loss provisions based on expected credit losses[209] - The company values inventory issued using the weighted average method, and at the balance sheet date, measures it at the lower of cost or net realizable value, accruing inventory impairment provisions[227][228] - The company recognizes revenue when it has satisfied its performance obligations in the contract, i.e., when the customer obtains control of the relevant goods, and categorizes revenue by business type into domestic sales and export sales (including VMI and non-VMI modes)[274][283][284] - The company classifies government grants into asset-related and income-related categories, recognizing them as deferred income or directly into current profit or loss, respectively[288] VI. Taxation This section lists the company's main tax types and rates, including VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge. The company and some subsidiaries enjoy a 15% corporate income tax preferential rate as high-tech enterprises, some subsidiaries apply small and micro-enterprise income tax preferential policies, and also benefit from a VAT super deduction policy for advanced manufacturing enterprises Main Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | 7%, 5% | | Corporate Income Tax | 25%, 20%, 15% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | - The company and its subsidiaries, including Dezhou Aoshen, Chongqing Aofu, and Bengbu Aomei, enjoy a 15% corporate income tax preferential rate as high-tech enterprises[301][302] - Subsidiaries such as Beijing Aoshen, Jiangxi Aofu, Aofu Shengleng, and Aofu Hydrogen Energy apply small and micro-enterprise corporate income tax preferential policies, paying corporate income tax at a 20% rate[303] - From January 1, 2023, to December 31, 2027, the company enjoys a policy allowing advanced manufacturing enterprises to deduct an additional 5% of VAT from their payable VAT amount[304] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on major items in the consolidated financial statements, including monetary funds, financial assets held for trading, notes receivable, accounts receivable, inventories, contract liabilities, short-term borrowings, long-term borrowings, and deferred income. During the reporting period, financial assets held for trading increased, notes receivable and accounts receivable financing grew significantly, inventories decreased, financial expenses substantially declined due to reduced loan scale, and restricted assets primarily involved bank acceptance bill deposits and pledged properties for borrowings Composition of Monetary Funds (as of June 30, 2025) | Item | Period-End Balance (yuan) | | :--- | :--- | | Cash on hand | 142,651.94 | | Bank deposits | 39,140,337.60 | | Other monetary funds | 7,486,718.51 | | Total | 46,769,708.05 | - During the reporting period, the company purchased wealth management products, with financial assets held for trading at the end of the period totaling 5.51 million yuan[306] - The year-end balance of notes receivable was 22.99 million yuan, of which bank acceptance bills accounted for 99.57%[309][312] - The year-end book value of accounts receivable was 121.38 million yuan, with the highest proportion being within 1 year[318] - The year-end book value of inventory was 205.46 million yuan, a decrease from the beginning of the period, with raw materials and merchandise inventory accounting for a larger proportion[351] - Financial expenses for the current period were 1.96 million yuan, a significant decrease of 56.35% compared to the same period last year, mainly due to reduced interest expenses from a smaller loan scale[92][436] - Total restricted assets at year-end were 138.47 million yuan, primarily consisting of bank acceptance bill deposits, pledged buildings and land use rights for borrowings, and endorsed but unmatured notes receivable and accounts receivable[101][395] VIII. R&D Expenses This section lists the company's R&D expenses for the reporting period, with expensed R&D investment totaling 13.37 million yuan, an increase of 6.39% compared to the same period last year. R&D expenses primarily include R&D materials, molds and energy, employee compensation, depreciation and amortization, and other expenses R&D Expenses by Nature of Expense | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | R&D materials, molds, and energy | 5,201,575.36 | 5,280,161.56 | | Employee compensation | 5,376,619.11 | 3,911,722.80 | | Depreciation and amortization | 1,888,198.73 | 1,844,797.60 | | Other expenses | 902,250.47 | 1,528,916.55 | | Total | 13,368,643.67 | 12,565,598.51 | | Of which: Expensed R&D investment | 13,368,643.67 | 12,565,598.51 | - Expensed R&D investment for the current period increased by 6.39% compared to the same period last year[65] IX. Changes in Consolidation Scope This section states that during the reporting period, the company had no business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control, thus maintaining a stable consolidation scope - During the reporting period, the company had no business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control[469][470] X. Interests in Other Entities This section lists the composition of the company's enterprise group, including subsidiaries such as Dezhou Aoshen, Chongqing Aofu, Bengbu Aomei, Jiangxi Aofu, Anhui Aofu, Aofu Hydrogen Energy, and Aofu Shengleng, and discloses key financial information for the important non-wholly owned subsidiary Jiangxi Aofu. The company holds direct or indirect control over these subsidiaries Composition of the Enterprise Group | Subsidiary Name | Registered Place | Registered Capital (10,000 yuan) | Business Nature | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Dezhou Aoshen | Dezhou City | 5,000.00 | Design, manufacturing, sales, and installation of environmental protection equipment | 100.00 | | Chongqing Aofu | Chongqing City | 7,600.00 | Manufacturing and sales of honeycomb ceramics, honeycomb ceramic carriers, precision ceramics, fillers | 100.00 | | Bengbu Aomei | Bengbu City | 2,000.00 | Precision manufacturing technology R&D, mold manufacturing and processing, import and export of goods and technology | 100.00 | | Jiangxi Aofu | Jingdezhen | 5,699.16 | R&D, manufacturing, and sales of special ceramic products | 60.00 | | Anhui Aofu | Bengbu City | 6,600.00 | Manufacturing and sales of honeycomb ceramics, precision ceramics | 100.00 | | Aofu Hydrogen Energy | Bengbu City | 300.00 | R&D of emerging energy technologies; R&D of new material technologies; production of battery components; sales of battery components | 60.00 | | Aofu Shengleng | Bengbu City | 300.00 | Engineering and technical research and experimental development; R&D of emerging energy technologies; R&D of new material technologies | 60.00 | Key Financial Information of Important Non-Wholly Owned Subsidiary Jiangxi Aofu | Indicator | Period-End Balance (10,000 yuan) | Period-Beginning Balance (10,000 yuan) | | :--- | :--- | :--- | | Current Assets | 1,906.79 | 1,831.41 | | Non-Current Assets | 1,600.88 | 1,628.84 | | Total Assets | 3,507.67 | 3,460.25 | | Current Liabilities | 2,148.83 | 2,054.46 | | Total Liabilities | 2,148.83 | 2,054.46 | | Operating Revenue | 94.47 | 782.66 | | Net Profit | -46.96 | -84.72 | | Total Comprehensive Income | -46.96 | -84.72 | | Net Cash Flow from Operating Activities | -6.71 | -42.65 | XI. Government Grants This section discloses the company's government grant-related liability items and government grants recognized in profit or loss for the reporting period. At period-end, asset-related government grants in deferred income totaled 31.54 million yuan, and income-related grants totaled 5.89 million yuan. Government grants recognized in current profit or loss for the period totaled 2.89 million yuan, comprising 0.60 million yuan asset-related and 2.29 million yuan income-related Liability Items Involving Government Grants (as of June 30, 2025) | Financial Statement Item | Period-Beginning Balance (yuan) | New Grants in Current Period (yuan) | Amount Recognized in Non-Operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Period-End Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 32,148,918.13 | - | - | 604,025.22 | 31,544,892.91 | Asset-related | | Deferred Income | 5,024,000.00 | 865,000.00 | - | - | 5,889,000.00 | Income-related | | Total | 37,172,918.13 | 865,000.00 | 0.00 | 604,025.22 | 37,433,892.91 | / | Government Grants Recognized in Current Profit or Loss (January-June 2025) | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Asset-related | 604,025.22 | 499,559.48 | | Income-related | 2,286,900.00 | 4,514,662.09 | | Total | 2,890,925.22 | 5,014,221.57 | XII. Risks Related to Financial Instruments This section thoroughly analyzes the financial instrument-related risks faced by the company, including credit risk, liquidity risk, and market risk (foreign exchange risk and interest rate risk). The company controls credit risk through credit policies and regular monitoring of customer credit records; manages liquidity risk by coordinating cash management and monitoring liquidity needs; and addresses market risk by closely observing exchange rate fluctuations and interest rate levels. Sensitivity analysis indicates that changes in the RMB exchange rate against the USD or floating borrowing interest rates could significantly impact the company's profit - The financial instrument-related risks faced by the company primarily include credit risk, liquidity risk, and market risk[480] - Credit risk mainly arises from monetary funds, notes receivable, accounts receivable, accounts receivable financing, other receivables, contract assets, etc., which the company controls by assessing customer creditworthiness, setting credit terms, and regularly monitoring credit records[481] - Liquidity risk is managed by coordinating cash management and regularly monitoring short-term and long-term liquidity needs[486] - Foreign exchange risk primarily stems from foreign currency assets and liabilities not denominated in the functional currency; if the RMB appreciates or depreciates by 5.00% against the USD, total profit will decrease or increase by 2.16 million yuan[488][491] - Interest rate risk primarily arises from long-term bank borrowings; if floating rate borrowing interest rates increase or decrease by 100 basis points, net profit will decrease or increase by 1.06 million yuan[491] XIII. Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value at the end of the reporting period, including financial assets held for trading, other equity instrument investments, and accounts receivable financing. Financial assets held for trading and accounts receivable financing are primarily measured using Level 2 fair value, while other equity instrument investments are measured using Level 3 fair value Fair Value of Assets and Liabilities Measured at Fair Value at Period-End (as of June 30, 2025) | Item | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | | Financial assets held for trading | 5,507,513.79 | - | 5,507,513.79 | | Other equity instrument investments | - | 3,680,000.00 | 3,680,000.00 | | Accounts receivable financing | 16,829,001.44 | - | 16,829,001.44 | | Total assets continuously measured at fair value | 22,336,515.23 | 3,680,000.00 | 26,016,515.23 | - Financial assets held for trading (bank wealth management products) and accounts receivable financing use expected yield or face value as the basis for fair value calculation[496] - The fair value of unlisted equity investments (other equity instrument investments) is reasonably estimated based on recent transaction prices or the proportion of net assets[497] XIV. Related Parties and Related-Party Transactions This section details the company's subsidiaries, joint ventures, associates, and other related parties, and discloses related-party transactions during the reporting period, including purchases and sales of goods, provision and acceptance of services, related-party leases, and key management personnel compensation. All transactions with related parties adhere to fair and equitable principles, and the estimated annual ordinary related-party transaction amounts have been disclosed in temporary announcements - Information on the company's subsidiaries is detailed in the notes to these financial statements under “Interests in Other Entities”[499] - The company's associate is Shanghai Yunbai Supply Chain Co., Ltd., in which the company holds 16.83% equity, Pan Jiqing serves as a director, and Zhang Hao serves as a supervisor[500] - Other related parties include companies controlled by major shareholders, directors, supervisors, senior management, and entities controlled by them[501] 2025 Semi-Annual Related-Party Transactions for Purchases and Sales of Goods, Provision and Acceptance of Services | Related Party | Related Transaction Content | Current Period Amount (yuan) | | :--- | :--- | :--- | | Shanghai Yunbai Supply Chain Co., Ltd. | Warehousing and logistics services | 1,343,078.89 | | Tianjin Chuangdao Thermal Material Co., Ltd. | Materials | 3,982.30 | 2025 Semi-Annual Related-Party Lease Information | Related Party | Type of Leased Asset | Lease Income Recognized in Current Period (yuan) | Rent Paid in Current Period (yuan) | | :--- | :--- | :--- | :--- | | Shanghai Yunbai | Buildings and structures | 39,880.77 | - | | Shanghai Yunbai | Warehouse | - | 478,103.54 | Key Management Personnel Compensation | Item | Current Period Amount (10,000 yuan) | | :--- | :--- | | Key management personnel compensation | 225.31 | XV. Share-Based Payments This section states that the company's 2022 restricted stock incentive plan was concluded after the Board of Directors approved the cancellation of certain granted but unvested restricted shares on April 24, 2025, due to the company's performance targets not being met, resulting in all restricted shares scheduled for vesting in the corresponding assessment year being cancelled and invalidated - The company's 2022 restricted stock incentive plan's third vesting period restricted shares were all cancelled and invalidated due to the company-level performance targets not being met[514] - Thus, the equity incentive plan implemented by the company in 2022 has been fully concluded[514] XVI. Commitments and Contingencies This section discloses the company's significant commitments at the end of the reporting period, primarily totaling 3.6 million yuan in uninvested committed capital for subsidiaries Aofu Shengleng and Aofu Hydrogen Energy. Additionally, the company has contingent liabilities totaling 310.3 million yuan from providing debt guarantees for its subsidiaries Significant External Commitments (as of June 30, 2025) | No. | Investee Unit | Shareholding Ratio (%) | Subscribed Amount (10,000 yuan) | Paid-in Amount (10,000 yuan) | Uninvested Amount (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Aofu Shengleng | 60.00 | 180.00 | 0.00 | 180.00 | | 2 | Aofu Hydrogen Energy | 60.00 | 180.00 | 0.00 | 180.00 | | Total | - | 360.00 | 0.00 | 360.00 | Contingent Liabilities from Providing Debt Guarantees for Other Entities (as of June 30, 2025) | Name of Guaranteed Entity | Guarantee Matter | Amount (10,000 yuan) | | :--- | :--- | :--- | | Dezhou Aoshen | Bank loan | 500.00 | | Chongqing Aofu | Bank loan | 5,130.00 | | Anhui Aofu | Bank loan | 15,400.00 | | Total | - | 31,030.00 | XVII. Events After the Balance Sheet Date This section states that there were no important non-adjusting events, profit distribution, or sales returns requiring disclosure after the balance sheet date - There were no important non-adjusting events, profit distribution, or sales returns after the balance sheet date[518] XVIII. Other Significant Matters This section states that during the reporting period, the company had no other significant transactions or matters affecting investor decisions, such as prior period accounting error corrections, major debt restructurings, asset exchanges, annuity plans, discontinued operations, or segment information - During the reporting period, the company had no other significant matters such as prior period accounting error corrections, major debt restructurings, asset exchanges, annuity plans, discontinued operations, or segment information[519] XIX. Notes to Parent Company Financial Statement Major Items This section provides detailed notes on major items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and cost, and investment income. The parent company's accounts receivable and operating revenue both increased, long-term equity investments remained stable, and investment income primarily came from interest income on debt investments Parent Company Account