飞南资源(301500) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report structure, and defines key terms for clarity Important Notes The board and senior management guarantee the report's accuracy, with forward-looking statements not constituting commitments - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[3] - Company's responsible person Sun Yan-jun, head of accounting work Li Xiao-juan, and head of accounting department Ma Jing-hui declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the report's structured directory, including eight main chapters and their starting page numbers Report Chapter Directory | Chapter | Title | Starting Page | | :--- | :--- | :--- | | Part I | Important Notes, Table of Contents, and Definitions | 1 | | Part II | Company Profile and Key Financial Indicators | 5 | | Part III | Management Discussion and Analysis | 9 | | Part IV | Corporate Governance, Environment, and Society | 21 | | Part V | Significant Matters | 24 | | Part VI | Share Changes and Shareholder Information | 44 | | Part VII | Bond-Related Information | 48 | | Part VIII | Financial Report | 49 | Definitions This section defines common terms and company-related entities used in the report for clear understanding - "The Company", "Company", and "Guangdong Feinan" all refer to Guangdong Feinan Resource Utilization Co., Ltd[13] - "Hazardous Waste" refers to solid waste with corrosive, toxic, flammable, reactive, or infectious characteristics that may cause harmful effects on the environment or human health, requiring management as hazardous waste[13] - "Reporting Period" refers to January 1, 2025, to June 30, 2025[13] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and its key financial performance metrics Company Profile This section introduces the company's basic information, including stock name, code, listing exchange, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Feinan Resources | | Stock Code | 301500 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | Guangdong Feinan Resource Utilization Co., Ltd. | | Company's Legal Representative | Sun Yan-jun | Contact Persons and Information This section provides detailed contact information for the company's board secretary and securities affairs representative Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Xiao-juan | Feinan Research Institute, No. 3-6 Dachong Road Section, Guihe Road, Lishui Town, Nanhai District, Foshan City, Guangdong Province | 0757-85638008 | 0757-85638008 | ir_feinan@163.com | | Securities Affairs Representative | Zhang Li-shi | Feinan Research Institute, No. 3-6 Dachong Road Section, Guihe Road, Lishui Town, Nanhai District, Foshan City, Guangdong Province | 0757-85638008 | 0757-85638008 | ir_feinan@163.com | Other Information The company's contact, disclosure, and document storage remained unchanged, but registration date changed from October 20, 2023, to January 7, 2025 - The company's registered address, office address, website, and email remained unchanged during the reporting period[17] - The securities exchange website and media name/URL for the company's semi-annual report disclosure, and the location for report availability, remained unchanged during the reporting period[18] Registration Change Status | Indicator | Registered at Beginning of Reporting Period | Registered at End of Reporting Period | | :--- | :--- | :--- | | Registration Date | 2023年10月20日 | 2025年01月07日 | | Registration Location | Luoyuan Industrial Park, Luoyuan Town, Sihui City | Luoyuan Industrial Park, Luoyuan Town, Sihui City | | Unified Social Credit Code Number | 914412847665669483 | 914412847665669483 | Key Accounting Data and Financial Indicators The company's H1 2025 revenue grew 18.14%, net profit attributable to shareholders increased 90.39%, driven by new projects, but operating cash flow decreased 93.59% due to increased raw material purchases Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Reporting Period (RMB) | Prior Year Same Period (RMB) | Change from Prior Year Same Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,542,831,778.74 | 5,538,007,718.48 | 18.14% | | Net Profit Attributable to Shareholders of Listed Company | 159,256,210.08 | 83,645,637.09 | 90.39% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 191,764,512.47 | 193,738,693.94 | -1.02% | | Net Cash Flow from Operating Activities | 23,337,756.94 | 363,969,653.02 | -93.59% | | Basic Earnings Per Share (RMB/share) | 0.3975 | 0.2091 | 90.10% | | Diluted Earnings Per Share (RMB/share) | 0.3952 | 0.2091 | 89.00% | | Weighted Average Return on Net Assets | 3.46% | 1.89% | 1.57% | Key Financial Indicators at End of H1 2025 | Indicator | End of Current Reporting Period (RMB) | End of Prior Year (RMB) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 12,731,460,994.36 | 12,576,778,316.41 | 1.23% | | Net Assets Attributable to Shareholders of Listed Company | 4,639,566,257.21 | 4,517,398,772.42 | 2.70% | - Net cash flow from operating activities decreased by 93.59% year-on-year, primarily due to increased cash outflow for raw material purchases[21] Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards - The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[22] - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[24] Non-Recurring Gains and Losses and Amounts Total non-recurring losses were RMB -32,508,302.39, mainly due to non-current asset disposal losses, government grants, and fair value changes from futures Non-Recurring Gains and Losses and Amounts for H1 2025 | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -11,240,023.39 | Mainly due to disposal of obsolete equipment from Jiangxi Feinan and Guangdong Feinan for upgrades | | Government Grants Included in Current Period's Gains and Losses (excluding those closely related to normal operating activities) | 2,474,064.01 | Mainly financial support funds, copper industry supply chain stabilization funds, etc. | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and Gains/Losses from Disposal of Financial Assets and Liabilities (excluding effective hedge accounting related to normal operating activities) | -40,065,633.98 | Mainly losses from the company's futures contracts | | Other Non-Operating Income and Expenses Apart from the Above Items | 118,851.66 | Mainly contract compensation | | Less: Income Tax Impact | -11,287,257.92 | | | Impact on Minority Interests (After Tax) | -4,917,181.39 | | | Total | -32,508,302.39 | | - The company classifies immediate refund of taxes, asset-related government grants, and individual income tax handling fee refunds as recurring gains and losses, as they are closely related to the company's normal operations or are continuous in nature[28] Management Discussion and Analysis This section analyzes the company's operational performance, financial condition, and future outlook, highlighting key drivers and risks Principal Businesses Engaged in During the Reporting Period The company primarily engages in hazardous waste disposal and non-ferrous metal recycling, achieving significant revenue and profit growth through multi-metal resource utilization and new project benefits - The company primarily engages in hazardous waste disposal and non-ferrous metal recycling, utilizing co-processing technology for hazardous and solid waste to achieve harmlessness and resource recovery[30] - As of the end of the reporting period, the company's licensed hazardous waste operating capacity reached 910,600 tons/year, with Guangdong Feinan at 450,000 tons/year and Guangxi Feinan's 300,000 tons/year license renewal in progress[30] - In H1 2025, the company achieved operating revenue of RMB 6,542,831,778.74, a year-on-year increase of 18.14%; net profit attributable to shareholders was RMB 159,256,210.08, a year-on-year increase of 90.39%, primarily due to continuous output growth from Jiangxi Barton and Guangxi Feinan projects[33] Key Metal Production and Sales in H1 2025 | No. | Metal Name | Unit | Production Volume | Sales Volume | Production-Sales Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Copper | tons | 58,144.26 | 57,600.50 | 99.06% | | 2 | Gold | grams | 576,430.83 | 573,773.71 | 99.54% | | 3 | Silver | kilograms | 35,126.92 | 38,696.39 | 110.16% | | 6 | Nickel | tons | 6,121.34 | 5,973.19 | 97.58% | | 9 | Zinc | tons | 18,783.97 | 18,238.76 | 97.10% | Industry Development and Principal Businesses The company benefits from national policies and rising non-ferrous metal prices, with new projects like Jiangxi Barton and Guangxi Feinan contributing to increased output and new construction underway - The company benefits from national policies such as the "Implementation Plan for High-Quality Development of the Copper Industry (2025-2027)" and the "Notice on Intensifying and Expanding Large-Scale Equipment Renewal and Consumer Goods Trade-in Policies in 2025," promoting high-quality development in the waste resource comprehensive recycling industry[31] - In H1 2025, influenced by tariff policies, geopolitical factors, and other elements, prices of precious metals and some non-ferrous metals like copper surged, leading the company to strengthen metal price tracking and material turnover management[32] - Jiangxi Barton's output continued to increase, with zinc ingot production reaching a historical high; Guangxi Feinan's front and back-end production lines operated well in联动, with continuously optimized indicators[32] - Regarding new projects, Ganzhou Feinan Industrial Waste Salt Resource Utilization Project has obtained environmental, energy, and safety assessment approvals and commenced construction; Zhaoqing Base Waste Electrical and Electronic Products and Scrapped Vehicle Dismantling Project has obtained environmental assessment approval[32] Principal Services and Products The company provides hazardous waste disposal services with a 550,000 tons/year capacity at Zhaoqing Base, and produces various deep-resource products like electrolytic copper, nickel concentrate, and precious metals - The company primarily provides hazardous waste disposal services for waste-generating enterprises in metal electroplating, electrical and electronic manufacturing, and non-ferrous metal smelting, with Zhaoqing Base's hazardous waste disposal qualification reaching 550,000 tons/year[36] - Through co-processing of hazardous and solid waste, the company produces resource-based products such as electrolytic copper, anode mud, copper-tin mud, flue dust, and nickel sulfate, and further processes them through Jiangxi Barton to produce fully resource-recovered products like zinc ingots, gold ingots, silver ingots, and palladium powder[37] - The company's resource-based products are primarily sold to downstream metal processing and metal product manufacturing industries, characterized by strong market demand, transparent pricing, and high liquidity[37] Business Model The company's business model involves centralized raw material procurement, planned production with quality control, and sales of hazardous waste services and resource products based on metal value - The company's raw materials are centrally collected/procured by the procurement center, primarily including copper-nickel sludge, non-ferrous metal smelting waste, and various metal-containing materials and auxiliary materials[39] - The company's production department formulates annual, quarterly, and monthly production plans, with the quality control department responsible for daily production quality control[40] - The company collects hazardous waste by paying, free of charge, or charging, depending on its recyclable value; resource-based product pricing is directly linked to the value of contained metals, typically settled with cash on delivery[41] Key Performance Drivers Performance is driven by macroeconomic growth, stringent environmental regulations, expanded hazardous waste disposal capacity, and enhanced multi-metal deep resource utilization capabilities - Macroeconomic growth and increasingly stringent environmental regulations lead to increased hazardous waste generation and stronger willingness for legal disposal, driving growth in the hazardous waste disposal market[42][43] - As of the end of the reporting period, the company's licensed hazardous waste operating capacity reached 910,600 tons/year, with Guangdong Feinan's hazardous waste capacity of 550,000 tons/year ranking among the top in Guangdong Province for single-entity disposal capacity[44] - The commissioning of Jiangxi Barton and Guangxi Feinan projects enables the company to achieve deep resource recovery of multiple metals such as copper, nickel, zinc, tin, gold, silver, and palladium, building an industrial closed-loop for multi-metal resource comprehensive recycling and further enhancing core competitiveness[45] Core Competitiveness Analysis The company's core strengths include its large-scale hazardous waste recycling capacity, stable collection network, advanced multi-metal deep resource utilization technology, and experienced management team - The company possesses a hazardous waste operating license for 910,600 tons/year, with Guangdong Feinan accounting for 550,000 tons/year, ranking among the top in Guangdong Province, and has established a stable waste collection network[46] - The company has developed several core technologies, including low-energy consumption electrolytic copper production from copper-containing sludge and oxygen-enriched side-blown reduction smelting, achieving deep resource recovery of multiple metals such as copper, nickel, zinc, tin, gold, silver, and palladium[47] - The company's founder has been deeply involved in the industry for over 30 years, cultivating a large number of outstanding talents, and enhancing organizational vitality and refined management through performance appraisals, cost reduction and efficiency improvement, and mentorship programs[48] Analysis of Principal Business The company's principal business remained stable, with operating revenue up 18.14%, but net cash flow from operating activities significantly decreased by 93.59% due to increased raw material purchases Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Same Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 6,542,831,778.74 | 5,538,007,718.48 | 18.14% | | | Operating Cost | 6,049,250,199.73 | 5,062,342,609.29 | 19.50% | | | Net Cash Flow from Operating Activities | 23,337,756.94 | 363,969,653.02 | -93.59% | Mainly due to increased cash outflow for raw material purchases | | Investment Income | -22,066,220.87 | -64,031,145.98 | N/A | Mainly due to reduced investment losses from futures business | | Fair Value Changes | -16,750,515.00 | -117,082,640.00 | N/A | Mainly due to reduced fair value change losses from futures business | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue | Operating Cost | Gross Profit Margin | Operating Revenue Change from Prior Year Same Period | Operating Cost Change from Prior Year Same Period | Gross Profit Margin Change from Prior Year Same Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Resource Product Sales Business | 6,510,836,907.94 | 6,018,992,174.18 | 7.55% | 18.15% | 19.59% | -1.11% | | Hazardous Waste Disposal Business | 18,365,643.08 | 16,746,480.22 | 8.82% | -23.71% | -32.60% | 12.02% | - There were no significant changes in the company's profit composition or sources during the reporting period[51] Analysis of Non-Principal Businesses Non-principal businesses negatively impacted total profit, primarily from futures-related investment and fair value losses, and inventory impairment, with most non-principal items lacking sustainability Impact of Non-Principal Businesses on Total Profit | Item | Amount (RMB) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -22,066,220.87 | -12.24% | Mainly investment losses from futures business and equity method accounting for associates | Long-term equity investment income from associates accounted for by the equity method is sustainable | | Gains/Losses from Fair Value Changes | -16,750,515.00 | -9.29% | Mainly fair value change losses from futures business | No | | Asset Impairment | -14,856,738.83 | -8.24% | Mainly due to inventory impairment provisions | No | | Non-Operating Expenses | 11,353,517.80 | 6.30% | Mainly losses from disposal of non-current assets, external donations, etc. | No | | Other Income | 12,196,646.94 | 6.77% | Mainly government grants related to income received by the company, amortization of asset-related government grants in the current period, and VAT immediate refund | VAT immediate refund is sustainable | Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders increased, with inventory and short-term borrowings rising due to expanded operations, while restricted assets were significant due to various pledges and guarantees Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 919,379,168.39 | 7.22% | 1,105,985,298.35 | 8.79% | -1.57% | | | Accounts Receivable | 68,840,755.52 | 0.54% | 162,665,928.37 | 1.29% | -0.75% | Mainly due to collection of Jinchuan product sales from prior year-end in current period | | Inventories | 4,503,729,104.66 | 35.37% | 4,123,452,128.18 | 32.79% | 2.58% | Mainly due to expanded production and sales scale, increasing inventory reserves | | Fixed Assets | 5,548,933,973.61 | 43.58% | 5,309,868,572.57 | 42.22% | 1.36% | | | Construction in Progress | 552,791,770.08 | 4.34% | 893,097,787.78 | 7.10% | -2.76% | Mainly due to transfer of construction projects to fixed assets | | Short-term Borrowings | 3,434,039,088.06 | 26.97% | 3,077,673,574.06 | 24.47% | 2.50% | Mainly due to expanded production and sales scale, increasing financing needs | | Contract Liabilities | 111,470,189.34 | 0.88% | 40,565,365.29 | 0.32% | 0.56% | Mainly due to expanded sales scale, increasing advance receipts from customers | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 0.00 | -33,993,129.05 | 4,601,320.00 | | Financial Liabilities | 8,709,830.00 | -6,083,380.00 | 2,626,450.00 | Asset Restrictions at End of Reporting Period | Item | Book Balance (RMB) | Book Value (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 550,851,204.54 | 550,851,204.54 | Deposits, Frozen | Bills, digital credit instrument deposits, frozen | | Fixed Assets | 3,175,343,440.78 | 2,811,501,769.86 | Mortgage | Loan mortgage, financing | | Intangible Assets | 128,337,146.40 | 110,715,903.71 | Mortgage | Loan mortgage | | Other Receivables | 84,921,494.10 | 84,921,494.10 | Deposit | Futures margin | | Construction in Progress | 180,510,855.45 | 180,510,855.45 | Mortgage | Loan mortgage | | Total | 4,119,964,141.27 | 3,738,501,227.66 | | | Analysis of Investment Status Total investment decreased by 46.79% year-on-year, with non-equity investments in Jiangxi Barton and Guangxi Feinan. The company uses futures for hedging but still incurred fair value losses Overall Investment Amount During Reporting Period | Indicator | Investment Amount in Reporting Period (RMB) | Investment Amount in Prior Year Same Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 248,655,019.41 | 467,325,927.89 | -46.79% | Significant Non-Equity Investments in Progress | Project Name | Amount Invested in Current Reporting Period (RMB) | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Cumulative Realized Income as of End of Reporting Period (RMB) | | :--- | :--- | :--- | :--- | | Jiangxi Barton Multi-Metal Secondary Resource Comprehensive Recycling Project | 55,365,203.62 | 3,295,620,203.62 | 198,604,509.40 | | Guangxi Feinan Xiangzhou County Copper Resource Environmental Recycling Project | 16,290,719.93 | 970,308,719.93 | -116,067,640.06 | - The company conducts futures hedging business, with trading varieties being standard metal futures contracts related to the company's actual production, such as copper, nickel, tin, gold, and silver, not for speculative purposes[73] - During the reporting period, the fair value change gains/losses from the company's price risk management tools amounted to RMB -40.0765 million, of which RMB -23.326 million was recognized as investment income[73] Entrusted Wealth Management, Derivative Investments, and Entrusted Loans The company engaged in RMB 40 million of entrusted wealth management, with no outstanding balance, and derivative investments for hedging purposes, resulting in fair value losses, but no speculative derivative investments or entrusted loans Overview of Entrusted Wealth Management During Reporting Period | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Transactions (RMB ten thousand) | Unmatured Balance (RMB ten thousand) | Overdue Unrecovered Amount (RMB ten thousand) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 4,000 | 0 | 0 | Derivative Investments for Hedging Purposes During Reporting Period | Derivative Investment Type | Initial Investment Amount (RMB ten thousand) | Ending Balance (RMB ten thousand) | Proportion of Ending Investment Amount to Company's Net Assets at End of Reporting Period | | :--- | :--- | :--- | :--- | | Futures Contracts | 1,015 | 79,565.28 | 17.15% | - The company conducts futures hedging business not for speculative purposes, but primarily to balance the risk of spot price fluctuations, although there may be inconsistencies between the recognition periods of futures contract gains/losses and spot physical gains/losses[73] - The company had no derivative investments for speculative purposes or entrusted loans during the reporting period[75][76] Analysis of Major Holding and Associate Companies Major subsidiaries Jiangxi Xingnan, Guangxi Feinan, and Jiangxi Barton engage in waste resource utilization; Jiangxi Barton is highly profitable, while Jiangxi Xingnan is still at a loss. New subsidiaries were acquired/established but are not yet operational Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (RMB ten thousand) | Total Assets (RMB ten thousand) | Net Assets (RMB ten thousand) | Operating Revenue (RMB ten thousand) | Operating Profit (RMB ten thousand) | Net Profit (RMB ten thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangxi Xingnan Environmental Technology Co., Ltd. | Subsidiary | Waste Resource Comprehensive Utilization Industry | 10,000 | 468,490.41 | -29,214.74 | 202,933.51 | -7,143.14 | -7,141.35 | | Guangxi Feinan Resource Utilization Co., Ltd. | Subsidiary | Waste Resource Comprehensive Utilization Industry | 27,900 | 204,180.71 | 16,584.04 | 83,298.70 | 2,174.63 | 2,174.38 | | Jiangxi Barton Environmental Technology Co., Ltd. | Subsidiary | Waste Resource Comprehensive Utilization Industry | 1,818.18 | 524,352.17 | 114,232.24 | 254,135.34 | 9,480.43 | 9,378.66 | Acquisition and Disposal of Subsidiaries During Reporting Period | Company Name | Method of Acquisition/Disposal of Subsidiaries During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shangrao Shengnan Renewable Resources Utilization Co., Ltd. | Acquisition | Not yet operational, no impact | | Feinan Resources (Hong Kong) Co., Ltd. | Newly Established | Not yet operational, no impact | Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations, metal price volatility, increased competition, and stricter environmental regulations, addressed by diversifying procurement, hedging, building industrial closed-loops, and enhancing safety and environmental management - A macroeconomic downturn may lead to a decrease in upstream waste generation, posing a risk of insufficient raw material supply for the company. The countermeasure is to actively expand raw material procurement channels[80][81] - Metal price fluctuations may lead to narrowed purchase-sale margins and inventory devaluation risks. Countermeasures include shortening production and operation turnover periods, strictly controlling inventory, and judiciously using hedging tools[81][82] - Competition in the hazardous waste disposal and metal resource comprehensive utilization industries is intensifying. Countermeasures include leveraging inherent advantages, building a multi-metal resource comprehensive recycling industrial closed-loop, and enhancing core competitiveness through investment and M&A[82] - Stricter safety and environmental regulations pose risks. Countermeasures include strictly enforcing laws and regulations, strengthening employee safety and environmental awareness, and promoting the construction and improvement of management systems[83] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period The company actively engaged with investors and institutions through online platforms and on-site visits, discussing 2024/Q1 2025 operations, raw material procurement, and inventory - On April 21 and April 30, 2025, the company held online performance briefings via Panorama Network's "Investor Relations Interactive Platform" to communicate its 2024 annual and Q1 2025 operating performance with the public and investors[84] - On May 13, 2025, the company hosted on-site research from institutions including Guojin Securities, Guosheng Securities, Penghua Fund, Kaiyuan Securities, and Caitong Asset Management, discussing raw material procurement, inventory, and other matters[84] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has adopted a "Market Value Management System" but has not yet disclosed a valuation enhancement plan - The company has formulated the "Market Value Management System," which was reviewed and approved at the 28th meeting of the Second Board of Directors held on April 10, 2025[85] - The company has not yet disclosed a valuation enhancement plan[85] Implementation of "Quality and Return Dual Enhancement" Action Plan The company has not yet disclosed its "Quality and Return Dual Enhancement" action plan announcement - The company has not yet disclosed the "Quality and Return Dual Enhancement" action plan announcement[86] Corporate Governance, Environment, and Society This section details changes in governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management The reporting period saw multiple changes in directors, supervisors, and senior management, including new appointments and resignations due to term expiration or personal reasons Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Yu Ting | Employee Representative Director | Elected | 2025年05月19日 | Re-election, elected as employee representative director by the employee representative assembly | | Chen Zheng-xu | Independent Director | Elected | 2025年05月19日 | Re-election as independent director | | Li Xiao-juan | CFO | Appointed | 2025年05月19日 | Appointed as the company's CFO | | Wu Wei-gang | Director | Term expired, resigned | 2025年05月19日 | Resigned due to term expiration during re-election, no longer holds any position in the company after resignation | | Wang Hua | Deputy General Manager, CFO | Dismissed | 2025年05月17日 | Resigned from Deputy General Manager and CFO positions due to personal reasons, no longer holds any position in the company after resignation | Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[89] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company implemented a 2024 restricted stock incentive plan, granting shares to 243 and 244 employees, and approved the repurchase and cancellation of some restricted shares, which is still pending - The company implemented the 2024 Restricted Stock Incentive Plan, granting 2.090778 million Class I restricted shares to 243 incentive recipients and 2.205413 million Class II restricted shares to 244 incentive recipients[90] - As of the end of the reporting period, the number of granted but unvested Class I restricted shares was 2,090,778, and the number of granted but unvested Class II restricted shares was 1,512,531[90] - The company approved the repurchase and cancellation of 648,210 Class I restricted shares and the invalidation of 692,882 Class II restricted shares, but the cancellation procedures have not yet been completed[90] Environmental Information Disclosure The company and its five major subsidiaries are listed as legally required environmental information disclosure enterprises, publishing data through provincial ecological environment department systems - The listed company and its five major subsidiaries are all included in the list of enterprises legally required to disclose environmental information[92] - Each subsidiary publicly discloses environmental information through the enterprise environmental information disclosure systems of the Guangdong Provincial, Jiangxi Provincial, and Guangxi Zhuang Autonomous Region Ecological Environment Departments[92] Social Responsibility The company is committed to multi-metal resource recycling, ensuring shareholder and employee rights, fostering client/supplier cooperation, strengthening safety, promoting resource utilization, and actively engaging in philanthropy with over RMB 25 million in donations - The company is committed to comprehensive multi-metal resource recycling, conducting its principal business around the goal of "harmlessness and complete resource recovery," producing recycled metal products, and promoting environmental protection[93][99] - The company strengthens communication with investors through various channels, safeguarding the legitimate rights and interests of shareholders, especially small and medium-sized shareholders, including their rights to information, participation, and voting[94] - The company strictly adheres to labor laws and regulations, values employees' legitimate rights and welfare, provides multiple career advancement paths, and cultivates talent through "mentorship" and "pass-on-and-lead" models[95] - The company adheres to the philosophy of safety, green, and sustainable development, has established ISO9001, ISO14001, and ISO45001 management systems, and experienced no major safety or environmental accidents during the reporting period[97] - The company actively participates in public affairs and charitable causes, with cumulative external donations exceeding RMB 25 million since 2020, actively fulfills its taxpayer obligations, and significantly increases local employment opportunities[100] Significant Matters This section covers commitments, related party transactions, guarantees, and other significant events affecting the company Commitments All commitment-related parties, including controlling shareholders, directors, supervisors, and senior management, fulfilled their commitments during the reporting period, covering share lock-ups, profit distribution, and avoiding competition - The company's actual controllers, Sun Yan-jun and He Xue-juan, and their related parties, committed not to transfer shares within 36 months from the date of the company's A-share listing, and to extend the lock-up period under specific conditions[102] - The company committed that within three years of listing, if the stock price consistently falls below net asset value per share, it will initiate stock price stabilization measures by repurchasing company shares or through increased holdings by controlling shareholders, directors, supervisors, and senior management[109] - The company and relevant responsible parties committed that the prospectus and other information disclosure materials are true, accurate, and complete, free from false records, misleading statements, or major omissions, and will bear compensation liability according to law[111][112][114] - As of the end of the reporting period, except for shares indirectly held by He Jin-tang, Sun Yan-qun, and Sun Xiao-qun, which remain restricted due to longer lock-up commitments, shares held by other partners have been released from restrictions[104] Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - The company had no instances of non-operating funds occupied by controlling shareholders or other related parties during the reporting period[116] Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[117] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[159] Board of Directors, Supervisory Board, and Audit Committee's Explanation on "Non-Standard Audit Report" for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[119] Board of Directors' Explanation on "Non-Standard Audit Report" for the Prior Year The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[120] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[120] Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the current reporting period[121] Penalties and Rectification The company had no significant penalties or rectification matters during the reporting period - The company had no significant penalties or rectification matters during the reporting period[121] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers The company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period - The company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period[122] Significant Related Party Transactions The company engaged in routine related party purchases with Guangdong Zhongyao Environmental Technology Co., Ltd. for RMB 14.0744 million, and the controlling shareholder provided guarantees for company and subsidiary credit lines Related Party Transactions Related to Daily Operations | Related Party | Content of Related Party Transaction | Amount of Related Party Transaction (RMB ten thousand) | Proportion of Similar Transactions | Approved Transaction Limit (RMB ten thousand) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Zhongyao Environmental Technology Co., Ltd. | Procurement of Raw Materials | 1,407.44 | 0.25% | 5,000 | No | - Mr. Sun Yan-jun, one of the company's controlling shareholders and actual controllers, provided an unconditional joint and several liability guarantee for the company and its subsidiaries' applications for credit lines from banks and other financial institutions in 2025[129] - The company received legal and agency services from Guangzhou Jinpeng Law Firm, where former independent director Mr. Chen Jun is located, with related party transaction amounts totaling RMB 270,000, which did not meet the disclosure threshold[129] Significant Contracts and Their Performance The company had no major entrusted management, contracting, or leasing projects. It provided significant guarantees for subsidiaries, totaling 36.33% of net assets, with Jiangxi Barton's syndicated loan secured by various assets and company guarantees - The company had no entrusted management or contracting situations during the reporting period, nor any leasing projects that generated profits or losses exceeding 10% of the company's total profit for the reporting period[130][131][132] Company's Total Guarantee Status | Indicator | Amount (RMB ten thousand) | | :--- | :--- | | Total Approved Guarantee Limit at End of Reporting Period | 500,000 | | Total Actual Guarantee Balance at End of Reporting Period | 168,570.07 | | Proportion of Total Actual Guarantees to Company's Net Assets | 36.33% | | Debt Guarantee Balance Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% | 168,570.07 | - The company's controlled subsidiary, Jiangxi Barton Environmental Technology Co., Ltd., applied for a fixed asset syndicated loan of no more than RMB 800 million from banks, providing mortgage guarantees with land use rights, construction in progress and real estate, and machinery and equipment, while the company provided guarantee and pledged its equity in Jiangxi Barton[137] Explanation of Other Significant Matters Some pre-IPO shares were released from lock-up and listed on March 21, 2025. The board was authorized to issue shares via simplified procedure, but no such issuance has occurred - Some of the company's shares issued before its initial public offering were released from lock-up and listed for trading on March 21, 2025, with 6,206,463 shares released from restrictions[139] - The company's shareholders' meeting authorized the board of directors to handle the issuance of shares to specific targets through a simplified procedure, with the authorization valid until the 2025 annual shareholders' meeting, but as of the report disclosure date, the company has not implemented this matter[140] Significant Matters of Company Subsidiaries Guangxi Feinan's hazardous waste operating license expired on May 26, 2025, and while renewal applications have been submitted and accepted, the process is still ongoing - The hazardous waste operating license of the company's wholly-owned subsidiary, Guangxi Feinan, expired on May 26, 2025[141] - Guangxi Feinan submitted relevant renewal application materials to the Ecological Environment Department of Guangxi Zhuang Autonomous Region in April 2025, which have been accepted, but as of the report disclosure date, the renewal procedures are still in progress[141][142] Share Changes and Shareholder Information This section details changes in share capital, shareholder structure, and the holdings of directors, supervisors, and senior management Share Change Status During the reporting period, restricted shares decreased by 3,576,663, unrestricted shares increased by the same amount, and total share capital remained unchanged due to lock-up releases and individual shareholder changes Share Change Status | Item | Quantity Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (+, -) (shares) | Quantity After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 305,413,907 | 75.95% | -3,576,663 | 301,837,244 | 75.07% | | II. Unrestricted Shares | 96,686,871 | 24.05% | 3,576,663 | 100,263,534 | 24.93% | | III. Total Shares | 402,100,778 | 100.00% | 0 | 402,100,778 | 100.00% | - On March 21, 2025, some of the company's shares issued before its initial public offering were released from lock-up and listed for trading, with 6,206,463 shares released from restrictions[146] - Certain shareholders, who previously served as company directors or senior executives, resigned before their terms expired; according to relevant regulations, 75% of their company shares will remain locked up for 6 months after their terms end[146] Changes in Restricted Shares Restricted shares decreased from 305,413,907 to 301,837,244 during the period, mainly due to the release of pre-IPO restricted shares and new restrictions for a former executive Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Yan-jun | 144,000,000 | 0 | 0 | 144,000,000 | Pre-IPO Restricted Shares | | He Xue-juan | 144,000,000 | 0 | 0 | 144,000,000 | Pre-IPO Restricted Shares | | Ningbo Qinan Investment Management Partnership (Limited Partnership) | 3,775,409 | 2,700,063 | 0 | 1,075,346 | Pre-IPO Restricted Shares | | Pan Guo-zhong | 3,506,400 | 3,506,400 | 2,629,800 | 2,629,800 | Pre-IPO restricted shares at beginning of period, executive lock-up shares at end of period | | 2024 Restricted Stock Incentive Plan Incentive Recipients | 2,090,778 | 0 | 0 | 2,090,778 | Equity Incentive Restricted Shares | | Total | 305,413,907 | 6,206,463 | 2,629,800 | 301,837,244 | | Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[149] Number of Shareholders and Shareholding Status As of the reporting period end, the company had 11,111 common shareholders. The top ten shareholders include controlling shareholders Sun Yan-jun and He Xue-juan, who collectively hold 71.62%, with some institutional holdings decreasing and one shareholder's unrestricted shares frozen - The total number of common shareholders at the end of the reporting period was 11,111[151] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Yan-jun | Domestic Natural Person | 35.81% | 144,000,000 | 144,000,000 | 0 | N/A | | He Xue-juan | Domestic Natural Person | 35.81% | 144,000,000 | 144,000,000 | 0 | N/A | | Wang An-bang | Domestic Natural Person | 2.33% | 9,350,640 | 0 | 9,350,640 | N/A | | Ningbo Qifei Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.00% | 8,041,320 | 8,041,320 | 0 | N/A | | Xinjiang Hongsheng Kaiyuan Equity Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 1.87% | 7,500,064 | 0 | 7,500,064 | N/A | | Wang Qiong | Domestic Natural Person | 1.16% | 4,675,320 | 0 | 4,675,320 | Frozen: 4,675,320 shares | - Mr. Sun Yan-jun and Ms. He Xue-juan are a married couple; their son, Mr. Sun Qi-hang, holds 55.23% of Qifei Investment's capital contribution and serves as its executive partner, effectively controlling the voting rights of 2.00% of the company's shares held by Qifei Investment[151] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period; details can be found in the 2024 Annual Report[153] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[154] - The company's actual controller remained unchanged during the reporting period[154] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[155] Bond-Related Information This section provides information regarding the company's bond-related activities Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[157] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[159] Financial Statements This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity - The consolidated balance sheet shows total assets of RMB 12,731,460,994.36, total current assets of RMB 6,096,526,051.24, and total current liabilities of RMB 5,991,694,516.63 at period-end[160][161][162] - The consolidated income statement shows total operating revenue of RMB 6,542,831,778.74 and net profit attributable to parent company shareholders of RMB 159,256,210.08 for the current period[165][166] - The consolidated cash flow statement shows net cash flow from operating activities of RMB 23,337,756.94, net cash flow from investing activities of RMB -288,491,880.35, and net cash flow from financing activities of RMB 267,150,948.61[171] Company Overview Guangdong Feinan Resource Utilization Co., Ltd., established on December 17, 2018, has undergone several capital changes, with its principal business of hazardous waste disposal and resource recycling remaining unchanged - Guangdong Feinan Resource Utilization Co., Ltd. was registered and established on December 17, 2018, formerly known as Zhaoqing Feinan Metal Co., Ltd[189] - The company's share capital has undergone changes including capital reserve conversion to share capital in 2019 (360 million shares), initial public offering of A-shares in 2023 (40.01 million shares), and issuance under the 2024 restricted stock incentive plan (2,090,778 shares), resulting in a total share capital of 402,100,778 shares[190][191][192] - The company's principal business is hazardous waste disposal and resource recycling, and its business nature and main operating activities have not changed since its establishment[193] Basis of Financial Statement Preparation The financial statements are prepared in accordance with Chinese accounting standards, presented on a going concern basis, and primarily measured at historical cost - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[194] - These financial statements are presented on a going concern basis, with accounting based on the accrual method, and, except for certain financial instruments, all items are measured at historical cost[194] - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for 12 months from the end of the reporting period[195] Significant Accounting Policies and Accounting Estimates This section details the company's accounting policies and estimates for financial statement preparation, covering financial instruments, inventory, fixed assets, revenue recognition, government grants, and deferred income tax - At initial recognition, the company classifies financial assets into three categories based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[217] - The company's inventories are classified into raw materials, work-in-progress, finished goods, and goods in transit; hazardous waste within raw materials is valued using the first-in, first-out method when issued, while other inventories are valued using the weighted average method[245][246] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the relevant goods or services, and recognizes revenue based on the progress or point in time of performance[288][289] - The company performs impairment accounting and recognizes loss provisions for items such as notes receivable, accounts receivable, and other receivables based on expected credit losses[228] Taxation The company's main taxes include VAT, corporate income tax, and surcharges, benefiting from various tax incentives such as VAT refunds for resource utilization, preferential corporate income tax for environmental projects, and VAT exemption for associated gold sales Major Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%、6%、3% | | Urban Maintenance and Construction Tax | 7%、5% | | Corporate Income Tax | 15%、25% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Property Tax | 1.2% | - The company enjoys the VAT immediate refund policy for comprehensive resource utilization[319] - The company and its subsidiaries, including Jiangxi Feinan, Jiangxi Barton, and Sihui Shengnan, enjoy corporate income tax incentives for environmental protection and energy/water-saving projects, where income from producing compliant products is included in annual total income at 90% of its amount[319] - The company and its subsidiaries are exempt from VAT on sales of associated gold products and are subject to corporate income tax at a reduced rate of 15% as third-party enterprises engaged in pollution control[319][320] [Notes to Consolidated Financial Statement Items](index=90&type=secti