罗莱生活(002293) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The Board of Directors, Supervisory Board, and senior management ensure the semi-annual report's accuracy, with a proposed cash dividend of CNY 2 per 10 shares. - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[6] - The company's head, chief accountant, and head of the accounting department declare the financial report is true, accurate, and complete[6] 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Distribution Base (shares) | 834,092,481 | | Cash Dividend per 10 Shares (tax incl.) (CNY) | 2 | | Bonus Shares (tax incl.) (shares) | 0 | | Capital Reserve to Share Capital | No | Table of Contents This report's clear table of contents lists nine main chapters, providing comprehensive information navigation for investors. - The report's table of contents includes nine main chapters, clearly structured for easy reference[9] Definitions This section defines common terms used in the report, ensuring accurate understanding of its content. - The report provides clear definitions for key terms such as the company, subsidiaries, currency units, and reporting period[12] Part II Company Profile and Key Financial Indicators I. Company Profile Luolai Lifestyle Technology Co., Ltd., stock code 002293, is listed on the Shenzhen Stock Exchange with Xue Jiachen as its legal representative. Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Luolai Lifestyle | | Stock Code | 002293 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 罗莱生活科技股份有限公司 | | Legal Representative | Xue Jiachen | II. Contact Person and Contact Information Ding Wei serves as the Board Secretary and Zhang Peng as the Securities Affairs Representative, both located at Luolai Lifestyle Building, No. 3, Lane 339, Tongpu Road, Putuo District, Shanghai. Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Ding Wei | Luolai Lifestyle Building, No. 3, Lane 339, Tongpu Road, Putuo District, Shanghai | 021-23138999 | 021-23138770 | ir@luolai.com.cn | | Securities Affairs Representative | Zhang Peng | Luolai Lifestyle Building, No. 3, Lane 339, Tongpu Road, Putuo District, Shanghai | 021-23138999 | 021-23138770 | ir@luolai.com.cn | III. Other Information During the reporting period, there were no changes to the company's registered address, office address, website, email, information disclosure, or document storage locations. - The company's contact information, information disclosure, and document storage locations remained unchanged during the reporting period[16][17][18] IV. Key Accounting Data and Financial Indicators In the first half of 2025, operating revenue grew by 3.60% to CNY 2.181 billion, and net profit attributable to shareholders increased by 16.97% to CNY 185 million. 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (CNY) | Same Period Last Year (CNY) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,181,225,983.82 | 2,105,531,277.76 | 3.60% | | Net Profit Attributable to Shareholders of Listed Company | 185,490,847.45 | 158,574,317.24 | 16.97% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 154,291,481.91 | 140,559,735.39 | 9.77% | | Net Cash Flow from Operating Activities | 377,264,766.12 | 292,606,683.68 | 28.93% | | Basic Earnings Per Share (CNY/share) | 0.2232 | 0.1900 | 17.47% | | Diluted Earnings Per Share (CNY/share) | 0.2232 | 0.1900 | 17.47% | | Weighted Average Return on Net Assets | 4.39% | 3.68% | 0.71% | | End of Period Indicators | End of Current Reporting Period (CNY) | End of Last Fiscal Year (CNY) | Change from End of Last Fiscal Year to End of Current Reporting Period (%) | | Total Assets | 6,514,089,729.95 | 6,166,022,812.07 | 5.64% | | Net Assets Attributable to Shareholders of Listed Company | 4,043,702,385.15 | 4,185,331,172.85 | -3.38% | V. Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards. - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[20][21] VI. Non-recurring Gains and Losses and Amounts The company's 2025 semi-annual non-recurring gains and losses totaled CNY 31.199 million, primarily from government subsidies, fair value changes, and other non-operating income and expenses. 2025 Semi-Annual Non-recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 84,863.20 | | Government Subsidies Included in Current Profit and Loss (excluding those with continuous impact) | 27,957,875.89 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-financial Enterprises | 7,002,825.87 | | Other Non-operating Income and Expenses Apart from the Above | 5,472,092.73 | | Less: Income Tax Impact | 9,134,783.16 | | Impact on Minority Shareholders' Equity (after tax) | 183,508.99 | | Total | 31,199,365.54 | - The company has no other profit and loss items meeting the definition of non-recurring gains and losses, nor has it classified items listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-recurring Gains and Losses" as recurring gains and losses[24] Part III Management Discussion and Analysis I. Main Business Activities During the Reporting Period In the first half of 2025, the home textile industry faced macroeconomic pressure, with the company achieving CNY 2.181 billion in operating revenue and CNY 185 million in net profit attributable to shareholders. - In the first half of 2025, the home textile industry's operating revenue for enterprises above designated size decreased by 2.63% year-on-year, with total profits experiencing the first negative growth in five years, a decrease of 10.05%[26] - The bedding sub-industry maintained stable growth, with operating revenue increasing by 1.34% year-on-year and total profits increasing by 4.96%, driven by leading brands[30] 2025 First Half Company's Main Business Financial Performance | Indicator | Amount (CNY billion) | Year-on-year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 2.181 | 3.60% | | Net Profit Attributable to Shareholders | 0.185 | 16.97% | | Domestic Home Textile Business Operating Revenue | 1.789 | 6.49% | | Domestic Home Textile Business Net Profit Attributable to Shareholders | 0.212 | 18.35% | | US Furniture Business Revenue | 0.392 | -7.81% | | US Furniture Business Net Profit Attributable to Shareholders | -0.02875 | -31.72% | (I) Overall Performance of the Home Textile Industry During the Reporting Period In the first half of 2025, the home textile industry faced macroeconomic complexities and weak consumer demand, leading to a decline in revenue and profit for large-scale enterprises. - In the first half of 2025, operating revenue for home textile enterprises above designated size decreased by 2.63% year-on-year, with total profits experiencing the first negative growth in five years, a decrease of 10.05%[26] - The bedding industry maintained stable overall performance, with operating revenue for enterprises above designated size increasing by 1.34% and total profits increasing by 4.96% in the first half of the year[30] - The domestic consumer market faced structural adjustment pressure, with CPI decreasing by 0.1% year-on-year and PPI falling by 2.8%, leading to a "volume increase, price decrease" dilemma for enterprises and a 4.69% decline in domestic sales[31] (II) Company's Main Business Activities Luolai Lifestyle, a leading home textile enterprise, focuses on bedding products, operating through multiple brands and omni-channel sales, while actively promoting retail innovation and digital transformation. - The company focuses on bedding-centric home textile business, operating through multiple brands (covering ultra-high-end, high-end, and mass markets) and various online and offline sales channels[32] - During the reporting period, the company achieved operating revenue of CNY 2.181 billion, a year-on-year increase of 3.60%, and net profit attributable to shareholders of CNY 185 million, a year-on-year increase of 16.97%[33] - US furniture business revenue was CNY 392 million, a year-on-year decrease of 7.81%, with net profit attributable to shareholders of -CNY 28.7534 million, a year-on-year decrease of 31.72%, primarily due to high US loan interest rates and insufficient demand[35] - The company vigorously promotes retail innovation, comprehensively advancing refined and data-driven management through a terminal retail data system, and optimizes channel layout by increasing direct store openings and expanding into shopping malls and outlets[35][36][37] - The Luolai brand maintains its ultra-soft positioning, building the Texsoft ultra-soft technology system, and collaborating with the Cotton Research Institute of the Chinese Academy of Agricultural Sciences to achieve independent innovation breakthroughs across the entire industry chain, from cotton seed cultivation to end products[38] - The company invested in building the Luolai Smart Industrial Park, introducing German fully automated equipment, significantly shortening production cycles, and achieving daily order processing capacity of up to 15,000 orders (peak 70,000 orders), greatly enhancing supply chain efficiency[41] - The company continues to increase investment and application of AI technology, achieving significant results in pattern design, knowledge base construction, intelligent customer service, consumer insights, R&D design, and digital human live streaming[42] (III) Company's Business Model The company's business model encompasses design, R&D, procurement, production, sales, and brand building, focusing on consumer insights, efficient supply chain, intelligent manufacturing, and omni-channel sales. - The design and R&D model is based on online and offline consumer data insights, conducting two-season new product development annually, focusing on user sleep pain points, and collaborating with international institutions to build an international R&D network[43] - The procurement model revolves around the strategic deployment of "process innovation, quality improvement and efficiency enhancement, rapid response," strengthening comprehensive supply chain capabilities, and utilizing a digital supply chain platform to improve response speed and production efficiency[44] - The production model combines independent production with outsourced processing, implementing lean production and TOC constraint theory, and enhancing efficiency and reducing costs through intelligent equipment and automated processes[45] - The sales model adopts a combination of online and offline channels, with offline primarily consisting of "franchise chains + direct-operated chains + centralized procurement," and online closely collaborating with platforms such as Tmall, JD.com, and Douyin, while also developing influencer live streaming and proprietary platforms[46] - Brand building is centered on "ultra-soft bedding," with Luolai bedding holding the top market share for 20 consecutive years and Luolai Kids for 5 consecutive years, strengthening brand influence through precise marketing and IP collaborations[47][48] II. Core Competitiveness Analysis The company's core competitiveness stems from its integrated "culture, mechanism, and talent," strong multi-brand reputation, extensive sales network, leading R&D capabilities, and advanced digital supply chain management. - The company's core competitiveness is composed of "culture, mechanism, and talent," fostering an AI innovation and campaign culture, building a self-driven mechanism, and developing a professional, vibrant talent team[49] - The company employs a multi-brand strategy, covering ultra-high-end to mass consumer markets, with Luolai bedding holding the top market share for 20 consecutive years and Luolai Kids bedding for 5 consecutive years[50] - The company possesses a strong sales network, with 2,523 terminal stores in the domestic market as of June 30, 2025, and continuously optimizes online channels to enhance refined operational capabilities[51] - The company has first-class design and R&D capabilities, developing new products based on consumer data insights, building the Texsoft core ultra-soft technology barrier, and applying for 50 new patents in the first half of 2025, accumulating 604 authorized patents[52][53] - Phase I of the Luolai Smart Industrial Park was completed in April 2025, introducing approximately 150 sets of AI intelligent fabric inspection and fully automated production equipment, achieving full-process automation in fabric AI inspection, flexible intelligent manufacturing, smart logistics, and warehousing, significantly improving supply chain efficiency[54] - The company's digital transformation strategy has achieved significant results, widely applying AI technology in intelligent manufacturing, smart office, and retail businesses, with plans to deepen intelligent manufacturing, innovate smart office, build a retail intelligent decision-making system, and deeply leverage data asset value in 2026[56] III. Main Business Analysis In the first half of 2025, the company's main business operating revenue increased by 3.60% to CNY 2.181 billion, but net cash flow from investing activities significantly decreased by 124.63% to -CNY 1.289 billion. Key Financial Data Year-on-year Changes | Indicator | Current Reporting Period (CNY) | Same Period Last Year (CNY) | Year-on-year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,181,225,983.82 | 2,105,531,277.76 | 3.60% | - | | Operating Cost | 1,138,090,733.24 | 1,121,410,724.08 | 1.49% | - | | Selling Expenses | 572,516,432.38 | 548,547,621.00 | 4.37% | - | | Administrative Expenses | 171,746,009.89 | 134,457,875.44 | 27.73% | - | | Financial Expenses | -8,199,372.15 | -19,781,291.22 | 58.55% | Decrease in interest income this period | | R&D Investment | 60,692,488.57 | 74,006,250.46 | -17.99% | - | | Net Cash Flow from Operating Activities | 377,264,766.12 | 292,606,683.68 | 28.93% | - | | Net Cash Flow from Investing Activities | -1,288,614,270.17 | -573,661,829.30 | -124.63% | More investment expenditures on wealth management products | | Net Cash Flow from Financing Activities | 110,809,482.97 | -612,288,081.13 | 118.10% | Increase in financing inflows | | Net Increase in Cash and Cash Equivalents | -802,674,218.62 | -892,300,248.92 | 10.04% | - | Operating Revenue Composition (by Product and Region) | Category | Item | Current Reporting Period Amount (CNY) | Proportion of Operating Revenue (%) | Same Period Last Year Amount (CNY) | Proportion of Operating Revenue (%) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Product | Standard Bedding Sets | 654,974,712.95 | 30.03% | 638,396,979.27 | 30.32% | 2.60% | | | Quilts | 701,522,423.20 | 32.16% | 654,332,830.92 | 31.08% | 7.21% | | | Pillows | 150,778,371.89 | 6.91% | 96,466,124.23 | 4.58% | 56.30% | | | Summer Products | 143,626,883.57 | 6.59% | 134,714,297.08 | 6.40% | 6.62% | | | Other | 138,043,233.50 | 6.33% | 156,087,985.43 | 7.41% | -11.56% | | | Furniture | 392,280,358.71 | 17.98% | 425,533,060.83 | 20.21% | -7.81% | | By Region | East China | 891,312,637.17 | 40.87% | 855,428,231.02 | 40.62% | 4.19% | | | Central China | 189,528,665.64 | 8.69% | 183,624,073.78 | 8.72% | 3.22% | | | Northeast China | 89,095,660.97 | 4.08% | 88,601,720.59 | 4.21% | 0.56% | | | North China | 207,068,506.11 | 9.49% | 194,699,543.38 | 9.25% | 6.35% | | | Southwest China | 194,948,898.71 | 8.94% | 178,736,510.24 | 8.49% | 9.07% | | | South China | 146,973,162.01 | 6.74% | 120,840,152.02 | 5.74% | 21.63% | | | Northwest China | 61,381,739.38 | 2.81% | 49,375,268.50 | 2.35% | 24.32% | | | United States | 392,280,358.71 | 17.98% | 425,533,060.83 | 20.21% | -7.81% | | | Overseas & Hong Kong, Macau, Taiwan (excluding US) | 8,636,355.12 | 0.40% | 8,692,717.40 | 0.41% | -0.65% | - As of June 30, 2025, the company had 381 domestic direct-operated stores with a total area of 46,999 sqm, and the average monthly sales revenue per store was CNY 83,200, with direct-operated stores open for more than 12 months showing a 14.93% increase in average monthly operating revenue compared to last year[64] IV. Other Information Required by Textile and Apparel Industry Disclosure Guidelines In the first half of 2025, the company's total production capacity was 6.247 million units/sets with a utilization rate of 95.00%, and online sales accounted for 33.82% of total revenue. 2025 First Half Production Capacity | Indicator | Current Reporting Period | Same Period Last Year | | :--- | :--- | :--- | | Total Production Capacity | 6.247 million units/sets | 5.204 million units/sets | | Capacity Utilization Rate | 95.00% | 90.27% | | Overseas Production Capacity | 0.0093 million units | - | | Overseas Capacity Utilization Rate | 55.00% | - | - The company's sales model includes offline (franchise, direct-operated, group buying) and online (primarily e-commerce direct sales), with online sales channels generating operating revenue of CNY 738 million, accounting for 33.82% of the company's total operating revenue[68][69][70][71][77] 2025 First Half Selling Expenses Composition | Item | Current Period Amount (CNY) | Year-on-year Change (%) | | :--- | :--- | :--- | | Advertising and Business Promotion Fees | 153,829,778.95 | 24.14% | | Promotion Fees | 113,813,564.69 | 10.45% | | Transportation Fees | 5,623,803.15 | 39.67% | | Total | 572,516,432.38 | 4.37% | 2025 First Half Inventory Situation | Main Product | Inventory Turnover Days | Inventory Quantity | Inventory Age (days) | Year-on-year Change in Inventory Balance (%) | | :--- | :--- | :--- | :--- | :--- | | Standard Bedding Sets | 138 | 1,350,909 | 283 | -0.53% | | Quilts | 139 | 1,227,439 | 235 | -7.99% | | Pillows | 96 | 565,613 | 184 | -1.06% | | Summer Products | 98 | 221,439 | 261 | -16.58% | | Other Accessories | 221 | 2,670,835 | 747 | 0.20% | | Furniture | 268 | 94,095 | 379 | -1.02% | | Total | 169 | 6,130,330 | 340 | -3.18% | - As of June 30, 2025, the inventory impairment provision balance was CNY 101.803 million, with CNY 55.092 million accrued and CNY 56.546 million reversed or written off during the year[81] - The company owns proprietary brands such as "Luolai," "Luolai Kids," "LAVIE HOME," "Uchino," "LOVO," and "Lexington," and also acts as an authorized agent for several international brands including "SHERIDAN," "ZUCCHI," "BASSETTI," "SCHLOSSBERG," "GRACCIOZA," "Millefiori," "DURANCE," and "IITTALA"[83][84] V. Non-Main Business Analysis During the reporting period, the company had no non-main business analysis content. - The company had no non-main business analysis during the reporting period[93] VI. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets were CNY 6.514 billion, an increase of 5.64% from the end of the previous year, with significant changes in monetary funds, other debt investments, and short-term liabilities. Significant Changes in Asset Composition | Item | End of Current Reporting Period Amount (CNY) | Proportion of Total Assets (%) | End of Last Fiscal Year Amount (CNY) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 380,112,705.11 | 5.84% | 1,142,577,755.96 | 18.53% | -12.69% | Increased purchase of wealth management products | | Accounts Receivable | 246,722,585.99 | 3.79% | 334,032,381.60 | 5.42% | -1.63% | - | | Inventory | 1,051,935,665.85 | 16.15% | 1,086,618,634.27 | 17.62% | -1.47% | - | | Other Debt Investments | 1,104,449,052.68 | 16.96% | 170,832,291.66 | 2.77% | 14.19% | - | | Non-current Assets Due Within One Year | 277,712,115.55 | 4.26% | 70,903,420.00 | 1.15% | 3.11% | - | | Short-term Borrowings | 333,708,451.56 | 5.12% | 250,216,645.53 | 4.06% | 1.06% | - | | Notes Payable | 703,943,779.59 | 10.81% | 279,836,989.13 | 4.54% | 6.27% | - | Key Overseas Asset Information | Specific Asset Content | Reason for Formation | Asset Scale (CNY billion) | Location | Operating Model | Profit/Loss Status | Proportion of Company's Net Assets (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lexington Holding | Acquisition | 0.965 | United States | Independent Operation | -CNY 28.7534 million | 23.75% | - As of the end of the reporting period, CNY 49.554 million of the company's monetary funds were judicially frozen, and CNY 251,101.65 of other monetary funds were bank acceptance bill deposits, both with usage restrictions[99][465] VII. Investment Analysis During the reporting period, the company's total investment was CNY 48.44 million, a significant year-on-year decrease of 63.27%, with no major equity investments but ongoing significant non-equity investment in the Luolai Smart Industrial Park. Investment Amount During the Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount During the Reporting Period | 48,440,167.95 | | Investment Amount in Same Period Last Year | 131,885,137.07 | | Change Rate | -63.27% | - The company had no significant equity investments, securities investments, or derivative investments during the reporting period[101][103][104] - The Luolai Smart Industrial Park construction project is a significant non-equity investment, with CNY 48.4402 million invested in the current reporting period, and a cumulative investment of CNY 598 million as of the end of the reporting period, with project progress at 69.07%[102] VIII. Major Asset and Equity Sales During the reporting period, the company did not engage in any major asset or equity sales. - The company did not sell any major assets or equity during the reporting period[107][108] IX. Analysis of Major Holding and Participating Companies The company's major subsidiaries, including Shanghai Luolai Home Textiles Co., Ltd. and Hong Kong Home Life Investment Management Co., Ltd., play crucial roles in textile production, sales, and investment management. Major Holding Subsidiary Financial Performance (2025 Semi-Annual) | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Luolai Home Textiles Co., Ltd. | Subsidiary | Production, sales of textiles, apparel, footwear, hats, arts and crafts, import and export of goods and technology | 291,895,000.00 | 2,211,927,591.32 | 6,199,222.35 | | Hong Kong Home Life Investment Management Co., Ltd. | Subsidiary | Investment | 500,000,000.00 | 1,073,486,408.78 | 28,753,356.81 | | Shanghai Luolai Lifestyle Technology Co., Ltd. | Subsidiary | Production, sales of textiles, apparel, footwear, hats, arts and crafts, import and export of goods and technology | 298,000,000.00 | 1,103,526,314.05 | 41,841,491.61 | - During the reporting period, the company established two new subsidiaries, Shaoxing Laicui and Luolai Zhishu, which are small in scale and have minor impact on overall production, operations, and performance[110] X. Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities. - The company did not control any structured entities during the reporting period[110] XI. Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations, rising raw material prices, intensified market competition, and inventory management, which it addresses through strategic initiatives and digital transformation. - The company faces macroeconomic fluctuation risks, with slowing domestic economic growth and the US furniture business affected by a sluggish overseas real estate market[110] - Fluctuations in raw material prices (cotton, down, etc.) and rising production factor costs (labor, energy, logistics) may impact the company's operations[111] - Market competition in the home textile industry is intensifying, with accelerating technological updates; a lack of innovation capability could lead to market share decline and squeezed profit margins[112] - Inventory accounts for a relatively high proportion of current assets, and abnormal changes in the sales market could lead to inventory impairment or difficulty in realization[113] - The company's countermeasures include continuously enhancing brand product power, channel power, and operational power, investing heavily in digitalization, accelerating supply chain response speed, and optimizing inventory structure through strengthened merchandise planning, product R&D, and inventory management[114][115] XII. Implementation of Market Value Management System and Valuation Enhancement Plan During the reporting period, the company did not formulate a market value management system or disclose a valuation enhancement plan. - The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period[116] XIII. Implementation of "Quality and Return Dual Improvement" Action Plan During the reporting period, the company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan. - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period[116] Part IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management During the reporting period, Xue Xia resigned as Board Secretary due to personal reasons, and Ding Wei was appointed as the new Board Secretary. Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Xue Xia | Board Secretary | Dismissal | July 23, 2025 | Personal reasons | | Ding Wei | Board Secretary | Appointment | July 25, 2025 | Work requirements | II. Profit Distribution and Capital Reserve to Share Capital During the Reporting Period The Board of Directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of CNY 2 (tax inclusive) per 10 shares, totaling CNY 166.818 million. 2025 Semi-Annual Profit Distribution | Indicator | Amount/Quantity | | :--- | :--- | | Bonus Shares per 10 Shares (shares) | 0 | | Cash Dividend per 10 Shares (CNY) (tax incl.) | 2 | | Share Capital Base for Distribution Plan (shares) | 834,092,481 | | Total Cash Dividend (CNY) (tax incl.) | 166,818,496.20 | | Proportion of Total Cash Dividend to Total Profit Distribution | 100% | | Parent Company Distributable Profit (CNY) | 1,641,940,008.18 | - The company's 2025 semi-annual consolidated net profit attributable to shareholders was CNY 185.491 million, while the parent company's net profit was CNY 123.595 million[120] - The profit distribution plan complies with the "Articles of Association" and relevant laws and regulations, fully considering the company's operating conditions, future development needs, and shareholder returns, and will not cause a shortage of the company's working capital[121] III. Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company completed the registration of its 2024 restricted stock and stock option incentive plan on January 16, 2025, granting restricted stock and stock options to eligible individuals. - The company completed the registration of its 2024 restricted stock and stock option incentive plan on January 16, 2025[122] - There were no employee stock ownership plans or other employee incentive measures during the reporting period[122] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law, and no environmental incidents occurred during the reporting period. - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law, and no environmental incidents occurred during the reporting period[123] V. Social Responsibility Luolai Lifestyle actively fulfills its social responsibilities, having donated CNY 5.755 million in the first half of 2025 for disaster relief and social welfare projects. - The company is a member of the "Humanitarian Aid Enterprise Strategy" cooperation circle of the China Foundation for Rural Development and has been awarded the title of "Caring Enterprise" for over ten consecutive years[123] - In the first half of 2025, the company cumulatively donated CNY 5.755 million for earthquake relief in Shigatse, Tibet, nursing homes, and medical assistance projects[123] Part V Important Matters I. Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period During the reporting period, the company had no overdue unfulfilled commitments by its actual controller, shareholders, related parties, acquirers, or the company itself. - The company had no overdue unfulfilled commitments during the reporting period[125] II. Non-operating Funds Occupied by Controlling Shareholder and Other Related Parties During the reporting period, there were no non-operating funds occupied by the controlling shareholder or other related parties of the listed company. - The company had no non-operating funds occupied by the controlling shareholder or other related parties during the reporting period[126] III. Irregular External Guarantees During the reporting period, the company had no irregular external guarantees. - The company had no irregular external guarantees during the reporting period[127] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited. - The company's semi-annual financial report was not audited[128][169] V. Board of Directors' and Supervisory Board's Explanation of "Non-standard Audit Report" for the Current Reporting Period During the reporting period, the company did not have a non-standard audit report. - The company had no non-standard audit report during the reporting period[129] VI. Board of Directors' Explanation of "Non-standard Audit Report" for the Previous Year During the reporting period, the company did not have a non-standard audit report. - The company had no non-standard audit report during the reporting period[129] VII. Matters Related to Bankruptcy and Reorganization During the reporting period, the company did not experience any matters related to bankruptcy and reorganization. - The company did not experience any matters related to bankruptcy and reorganization during the reporting period[129] VIII. Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters. - The company had no significant litigation or arbitration matters during the reporting period[130] IX. Penalties and Rectification During the reporting period, the company had no penalties or rectification situations. - The company had no penalties or rectification situations during the reporting period[131] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, the company, its controlling shareholder, and actual controller maintained a good integrity status. - The company, its controlling shareholder, and actual controller maintained a good integrity status[132] XI. Material Related Party Transactions During the reporting period, the company engaged in routine operational related party transactions totaling CNY 45.7203 million, primarily for procurement and leasing services, all within approved limits. Related Party Transactions Related to Routine Operations (Procurement of Goods/Acceptance of Services) | Related Party | Related Transaction Content | Current Period Amount (CNY ten thousand) | Approved Transaction Limit (CNY ten thousand) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Nantong Lailuo Packaging Decoration Co., Ltd. | Procurement of printed packaging materials | 1,407.05 | 2,200 | No | | Nantong Haiya Packaging Co., Ltd. | Procurement of printed packaging materials | 2,291.98 | 3,700 | No | | Luolai Gift (Shanghai) Co., Ltd. | Procurement of gifts and promotional items | 711.64 | 2,500 | No | | Shanghai Luolai Smart Home Ecological Technology (Group) Co., Ltd. | Procurement of small home items like fragrances | 156.85 | 600 | No | | Shanghai Luolai Smart Home Ecological Technology (Group) Co., Ltd. | House leasing to related party | 137.12 | 300 | No | | Mingde Inheritance Business Consulting Co., Ltd. | House leasing to related party | 8.97 | 20 | No | | Shanghai Luolai Smart Home Ecological Technology (Group) Co., Ltd. | Related party use of registered trademark | 145.38 | 300 | No | | Xue Weicheng, Xue Weibin | Shareholder lease of property | 4.50 | 18 | No | | Total | - | 4,863.49 | 9,638 | No | - The company had no other material related party transactions during the reporting period, such as asset or equity acquisitions/disposals, joint external investments, non-operating related party creditor-debtor relationships, or dealings with affiliated financial companies[135][136][137][138][139][140] XII. Material Contracts and Their Performance During the reporting period, the company had no material contracts related to trusteeship, contracting, or significant guarantees, but engaged in wealth management with an outstanding balance of CNY 198 million. - The company had no trusteeship or contracting situations during the reporting period, nor any leasing projects that generated profits exceeding 10% of total profit[141][142][143] - The company had no material guarantee situations during the reporting period[144] Wealth Management Situation | Specific Type | Source of Wealth Management Funds | Wealth Management Amount (CNY ten thousand) | Outstanding Balance (CNY ten thousand) | Overdue Unrecovered Amount (CNY ten thousand) | | :--- | :--- | :--- | :--- | :--- | | Other | Own Funds | 42,200 | 19,800 | 0 | - The company had no other material contracts during the reporting period[147] XIII. Explanation of Other Material Matters During the reporting period, the company had no other material matters requiring explanation. - The company had no other material matters requiring explanation during the reporting period[148] XIV. Material Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no material matters. - The company's subsidiaries had no material matters during the reporting period[149] Part VI Share Changes and Shareholder Information I. Share Changes During the reporting period, the company's total share capital increased by 3.11 million shares to 834.092 million shares due to the implementation of the 2024 restricted stock and stock option incentive plan. Share Changes | Share Type | Quantity Before Change (shares) | Increase/Decrease in This Change (+, -) (shares) | Quantity After Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 4,374,412 | 3,110,000 | 7,484,412 | | 3. Other Domestic Shares | 4,374,412 | 3,110,000 | 7,484,412 | | Shares Held by Domestic Natural Persons | 4,374,412 | 3,110,000 | 7,484,412 | | II. Unrestricted Shares | 826,608,069 | 0 | 826,608,069 | | 1. RMB Ordinary Shares | 826,608,069 | 0 | 826,608,069 | | III. Total Shares | 830,982,481 | 3,110,000 | 834,092,481 | - The reason for the share change was the company's implementation of the 2024 restricted stock and stock option incentive plan[152] - The registration of restricted stock and stock options was completed on January 16, 2025[156] Restricted Share Changes | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Equity Incentive Recipients | 0 | 3,110,000 | 3,110,000 | Grant of restricted stock | II. Securities Issuance and Listing On January 20, 2025, the company issued 3.11 million restricted shares at CNY 3.66 per share, which were listed for trading on January 21, 2025. Securities Issuance and Listing | Stock Name | Issuance Date | Issuance Price (CNY) | Issuance Quantity (shares) | Listing Date | Quantity Approved for Listing (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Restricted Stock | January 20, 2025 | 3.66 | 3,110,000 | January 21, 2025 | 3,110,000 | III. Company Shareholder Numbers and Shareholding As of the end of the reporting period, the company had 23,178 ordinary shareholders, with Weijia International Enterprise Co., Ltd. and Nantong Luolai Lifestyle Technology Development Group Co., Ltd. being major shareholders. - The total number of ordinary shareholders at the end of the reporting period was 23,178[161] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Shares Held at End of Reporting Period (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status (quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Weijia International Enterprise Co., Ltd. | Overseas Legal Person | 16.48% | 137,500,000 | 0 | 137,500,000 | 0 | | Nantong Luolai Lifestyle Technology Development Group Co., Ltd. | Domestic Non-state-owned Legal Person | 15.37% | 128,202,869 | 0 | 128,202,869 | 16,000,000 (Pledged) | | Xue Junteng | Domestic Natural Person | 5.99% | 49,954,639 | 0 | 49,954,639 | 0 | | Wang Chen | Domestic Natural Person | 4.62% | 38,522,652 | 0 | 38,522,652 | 0 | | Xue Jinchen | Domestic Natural Person | 4.62% | 38,522,652 | 0 | 38,522,652 | 0 | - The actual controller of the company is Mr. Xue Weicheng, who controls the company through Nantong Luolai Lifestyle Technology Development Group Co., Ltd. (holding 55%) and its wholly-owned subsidiary Weijia International Enterprise Co., Ltd[161][162] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, Vice Presidents Wang Liang and Leng Zhimin, CFO Chen Xiaodong, and former Board Secretary Xue Xia increased their shareholdings due to the equity incentive plan. Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Held at End of Period (shares) | Restricted Shares Granted at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Liang | Vice President | Current | 1,445,000 | 600,000 | 2,045,000 | 600,000 | | Leng Zhimin | Vice President | Current | 1,094,125 | 600,000 | 1,694,125 | 600,000 | | Chen Xiaodong | CFO | Current | 2,000 | 150,000 | 152,000 | 150,000 | | Xue Xia | Board Secretary | Resigned | 100,000 | 150,000 | 250,000 | 150,000 | | Total | - | - | 2,641,125 | 1,500,000 | 4,141,125 | 1,500,000 | - The increase in shares held in the current period is due to the grant of restricted stock[163] V. Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller. - The company's controlling shareholder or actual controller did not change during the reporting period[164] VI. Preferred Shares Information During the reporting period, the company had no preferred shares. - The company had no preferred shares during the reporting period[165] Part VII Bond-Related Information During the reporting period, the company had no bond-related information. - The company had no bond-related information during the reporting period[167] Part VIII Financial Report This unaudited financial report presents the company's 2025 semi-annual consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity. - The company's semi-annual financial report was not audited[169] - The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant disclosure regulations of the China Securities Regulatory Commission[215][216] - The company's main tax categories include VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge, with corporate income tax rates varying based on the taxpayer and high-tech enterprise certification (e.g., 15% or 25%)[461][462] - The company faces credit risk, liquidity risk, and market risk (foreign exchange risk, interest rate risk), which are managed through policy setting, regular monitoring, and assessment[685][686][694][696][698] I. Audit Report The company's 2025 semi-annual financial report was not audited. - The company's semi-annual financial report was not audited[169] II. Financial Statements This section presents the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity. - This section includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[170][173][176][178][180][182][184][191] 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 6.514 billion, with total current liabilities of CNY 2.190 billion and total owners' equity attributable to the parent company of CNY 4.044 billion. Consolidated Balance Sheet Key Data | Item | End of Period Balance (CNY) | Beginning of Period Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 6,514,089,729.95 | 6,166,022,812.07 | | Total Current Assets | 2,826,090,358.10 | 3,393,484,128.40 | | Total Non-current Assets | 3,687,999,371.85 | 2,772,538,683.67 | | Total Liabilities | 2,450,104,862.11 | 1,960,902,983.88 | | Total Current Liabilities | 2,190,318,624.19 | 1,670,140,431.01 | | Total Non-current Liabilities | 259,786,237.92 | 290,762,552.87 | | Total Owners' Equity Attributable to Parent Company | 4,043,702,385.15 | 4,185,331,172.85 | 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were CNY 5.299 billion, with total current liabilities of CNY 1.409 billion and total owners' equity of CNY 3.791 billion. Parent Company Balance Sheet Key Data | Item | End of Period Balance (CNY) | Beginning of Period Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 5,299,064,485.47 | 5,366,991,005.29 | | Total Current Assets | 2,202,392,953.47 | 2,517,942,450.73 | | Total Non-current Assets | 3,096,671,532.00 | 2,849,048,554.56 | | Total Liabilities | 1,508,130,854.71 | 1,375,961,160.25 | | Total Current Liabilities | 1,409,194,703.69 | 1,268,238,604.69 | | Total Non-current Liabilities | 98,936,151.02 | 107,722,555.56 | | Total Owners' Equity | 3,790,933,630.76 | 3,991,029,845.04 | 3. Consolidated Income Statement In the first half of 2025, the company's consolidated total operating revenue was CNY 2.181 billion, a 3.60% increase, with net profit of CNY 186 million, up 16.90%. Consolidated Income Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 2,181,225,983.82 | 2,105,531,277.76 | | Total Operating Costs | 1,955,084,074.63 | 1,868,869,148.62 | | Operating Profit | 208,894,224.25 | 188,796,026.26 | | Total Profit | 214,718,421.64 | 186,052,892.93 | | Net Profit | 185,984,674.80 | 158,919,068.90 | | Net Profit Attributable to Parent Company Shareholders | 185,490,847.45 | 158,574,317.24 | | Basic Earnings Per Share | 0.2232 | 0.1900 | | Diluted Earnings Per Share | 0.2232 | 0.1900 | 4. Parent Company Income Statement In the first half of 2025, the parent company's operating revenue was CNY 1.073 billion, a 5.47% increase, with net profit of CNY 124 million, up 117.02%. Parent Company Income Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Operating Revenue | 1,072,535,464.14 | 1,016,855,021.05 | | Operating Costs | 759,938,356.12 | 783,998,583.43 | | Operating Profit | 135,115,357.06 | 63,550,388.07 | | Total Profit | 137,567,567.61 | 64,683,821.11 | | Net Profit | 123,595,140.64 | 56,952,291.71 | 5. Consolidated Cash Flow Statement In the first half of 2025, net cash flow from operating activities was CNY 377 million, up 28.93%, while net cash flow from investing activities was -CNY 1.289 billion due to increased wealth management product purchases. Consolidated Cash Flow Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 377,264,766.12 | 292,606,683.68 | | Net Cash Flow from Investing Activities | -1,288,614,270.17 | -573,661,829.30 | | Net Cash Flow from Financing Activities | 110,809,482.97 | -612,288,081.13 | | Net Increase in Cash and Cash Equivalents | -802,674,218.62 | -892,300,248.92 | - Net cash flow from investing activities decreased by 124.63%, primarily due to increased investment expenditures on wealth management products in the current period[58] - Net cash flow from financing activities increased by 118.10%, primarily due to increased financing inflows in the current period[58] 6. Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was CNY 230 million, up 48.66%, with net cash flow from investing activities at -CNY 786 million. Parent Company Cash Flow Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 229,986,631.73 | 154,702,246.27 | | Net Cash Flow from Investing Activities | -785,559,448.38 | -1,110,741,654.91 | | Net Cash Flow from Financing Activities | -352,406,367.43 | -339,258,194.08 | | Net Increase in Cash and Cash Equivalents | -907,979,184.08 | -1,295,297,602.72 | 7. Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's consolidated owners' equity totaled CNY 4.064 billion, a 3.36% decrease from the beginning of the period, mainly due to profit distribution. Consolidated Statement of Changes in Owners' Equity (2025 Semi-Annual) | Item | Beginning of Period Balance (CNY) | Change Amount in Current Period (CNY) | End of Period Balance (CNY) | | :--- | :--- | :--- | :--- | | Share Capital | 830,982,481.00 | 3,110,000.00 | 834,092,481.00 | | Capital Reserve | 740,605,023.33 | 18,218,237.48 | 758,823,260.81 | | Less: Treasury Stock | 0.00 | 11,382,600.00 | 11,382,600.00 | | Other Comprehensive Income | 89,933,934.95 | -5,129,479.80 | 84,804,455.15 | | Retained Earnings | 2,048,221,134.74 | -146,444,945.38 | 1,901,776,189.36 | | Total Owners' Equity Attributable to Parent Company | 4,185,331,172.85 | -141,628,787.70 | 4,043,702,385.15 | | Minority Interests | 19,788,655.34 | 493,827.35 | 20,282,482.69 | | Total Owners' Equity | 4,205,119,828.19 | -141,134,960.35 | 4,063,984,867.84 | 8. Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's owners' equity totaled CNY 3.791 billion, a 5.01% decrease from the beginning of the period, mainly due to profit distribution. Parent Company Statement of Changes in Owners' Equity (2025 Semi-Annual) | Item | Beginning of Period Balance (CNY) | Change Amount in Current Period (CNY) | End of Period Balance (CNY) | | :--- | :--- | :--- | :--- | | Share Capital | 830,982,481.00 | 3,110,000.00 | 834,092,481.00 | | Capital Reserve | 832,476,905.27 | 18,218,237.48 | 850,695,142.75 | | Less: Treasury Stock | 0.00 | 11,382,600.00 | 11,382,600.00 | | Retained Earnings | 1,851,981,859.94 | -210,041,851.76 | 1,641,940,008.18 | | Total Owners' Equity | 3,991,029,845.04 | -200,096,214.28 | 3,790,933,630.76 | III. Company Basic Information Luolai Lifestyle Technology Co., Ltd., established in 1992 and listed on the Shenzhen Stock Exchange in 2009, primarily engages in home textile business with its headquarters in Nantong, Jiangsu. - Luolai Lifestyle Technology Co., Ltd., founded in 1992 as Nantong Luolai Home Furnishings Co., Ltd., was listed on the Shenzhen Stock Exchange in September 2009[198][202] - The company's share capital has undergone multiple changes due to capital reserve transfers, restricted stock issuances, and repurchases and cancellations, with a total share capital of 834,092,481 shares as of June 30, 2025[203][204][205][206][207][208][209][210][212] - The company's main business activities focus on bedding-centric home textile products, integrating R&D, design, production, and sales through various online and offline channels[213] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and relevant disclosure regulations. - The company prepares its financial statements on a going concern basis, adhering to enterprise accounting standards and relevant disclosure regulations of the China Securities Regulatory Commission[215] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting its going concern ability[216] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including business combinations, financial instruments, inventory, revenue recognition, and employee compensation. - The company adheres to enterprise accounting standards to truthfully and completely reflect its financial position, operating results, and cash flows[218] - In business combinations, the company measures at book value for common control and at fair value for non-common control[223][225] - The company classifies financial assets as measured at amortized cost, fair value through profit or loss, or fair value through other comprehensive income, based on the business model for managing financial assets and contractual cash flow characteristics[272] - The company's revenue recognition principle is to recognize revenue when the customer obtains control of the related goods, distinguishing between revenue recognized over time or at a point in time based on the type of performance obligation[397] - Significant accounting judgments and estimates include the measurement of expected credit losses on accounts receivable, goodwill impairment, recognition of deferred income tax assets, and determination of fair value for unlisted equity investments[457][458][459] VI. Taxes The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge, with corporate income tax rates varying by entity. Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Sales Revenue | 0%, 6%, 13% | | Urban Maintenance and Construction Tax | Payable Turnover Tax | 7% | | Corporate Income Tax | Taxable Income | 15.00%, 16.5%, 22.027%, 25% | | Education Surcharge | Payable Turnover Tax | 3% | | Local Education Surcharge | Payable Turnover Tax | 2% | - The company was re-certified as a high-tech enterprise in October 2022 and enjoys a 15% corporate income tax preferential rate for 2025[462] VII. Notes to Consolidated Financial Statement Items This section details the consolidated financial statement items, showing significant changes in monetary funds, notes payable, short-term borrowings, and inventory impairment provisions. Monetary Funds Changes | Item | End of Period Balance (CNY) | Beginning of Period Balance (CNY) | | :--- | :--- | :--- | | Monetary Funds | 380,112,705.11 | 1,142,577,755.96 | | Reason for Change | Increased purchase of other debt investments | - | Notes Payable and Short-term Borrowings Changes | Item | End of Period Balance (CNY) | Beginning of Period Balance (CNY) | | :--- | :--- | :--- | | Notes Payable | 703,943,779.59 | 279,836,989.13 | | Short-term Borrowings | 333,708,451.56 | 250,216,645.53 | Inventory Impairment Provision Changes | Item | Beginning of Period Balance (CNY) | Accrued in Current Period (CNY) | Reversed or Written Off in Current Period (CNY) | End of Period Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Inventory Impairment Provision | 103,560,059.78 | 55,091,786.05 | 56,545,585.70 | 101,803,212.54 | Operating Revenue and Operating Costs | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 2,163,549,734.55 | 1,134,612,669.65 | 2,066,623,905.55 | 1,097,188,615.45 | | Other Business | 17,676,249.27 | 3,478,063.59 | 38,907,372.21 | 24,222,108.63 | | Total | 2,181,225,983.82 | 1,138,090,733.24 | 2,105,531,277.76 | 1,121,410,724.08 | Financial Expenses Changes | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Interest Expense | 9,488,329.73 | 12,088,131.81 | | Less: Interest Income | 20,101,791.69 | 34,680,653.98 | | Total | -8,199,372.15 | -19,781,291.22 | Asset Impairment Losses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Inventory Impairment Losses and Contract Performance Cost Impairment Losses | -55,091,786.05 | -81,621,868.05 | | Total | -55,091,786.05 | -81,621,868.05 | VIII. R&D Expenses In the first half of 2025, the company's R&D expenses totaled CNY 60.6925 million, a 17.99% year-on-year decrease, all of which were expensed. R&D Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | R&D Expenses | 60,692,488.57 | 74,006,250.46 | | Expensed R&D Expenses | 60,692,488.57 | 74,006,250.46 | IX. Changes in Consolidation Scope During the reporting period, the company added two new subsidiaries, Shaoxing Laicui and Luolai Zhishu, through establishment, with minor impact on overall operations. Changes in Consolidation Scope | Company Name | Method of Acquisition and Disposal of Subsidiaries in Current Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shaoxing Laicui | Newly established | Small scale, minor impact | | Luolai Zhishu | Newly established |