日辰股份(603755) - 2025 Q2 - 季度财报

Important Notice Report Overview The company's board and senior management guarantee the truthfulness, accuracy, and completeness of the unaudited semi-annual report, and plan a 2025 interim cash dividend of RMB 0.20 per share (including tax) - The company's board and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, which remains unaudited[5] - The company plans to implement a 2025 interim profit distribution plan, distributing a cash dividend of RMB 0.20 per share (including tax) to all shareholders, based on 97,193,681 shares, totaling RMB 19,438,736.20[6] - During the reporting period, there were no particularly significant risks that had a material impact on the company's production and operations[8] Section I Definitions Definitions of Common Terms This section defines common terms used in the report, including company name, related parties, regulatory bodies, currency units, reporting period, and key product categories such as compound seasonings, sauces, powder seasonings, baked goods, frozen dough, and food additives - The reporting period refers to January 1, 2025, to June 30, 2025[13] - Compound seasonings are defined as seasonings prepared from two or more seasonings through special processing[13] - The company's new business, frozen dough, is defined as semi-finished dough made primarily from grain flour, fats, and water, processed through mixing, shaping, fermentation, or baking, and then frozen[13] Section II Company Profile and Key Financial Indicators Company Basic Information This section outlines the company's basic registration details, contact information, registered address, information disclosure channels, and stock overview, with no significant changes - The company's Chinese name is Qingdao Richen Food Co., Ltd., with stock ticker Richen Shares and stock code 603755, listed on the Shanghai Stock Exchange[15][19] - The company's registered and office address is Qingdao Environmental Protection Industrial Park, Jimo District, Qingdao (No. 20 Jifa Longshan Road), with no historical changes during the reporting period[17] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 8.63%, net profit attributable to shareholders by 22.64%, and net profit after deducting non-recurring gains and losses by 27.73%, indicating strong profitability growth, with total assets and net assets also showing steady increases Major Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Major Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 203,637,046.56 | 187,450,901.31 | 8.63 | | Total Profit | 40,808,427.64 | 32,794,399.85 | 24.44 | | Net Profit Attributable to Listed Company Shareholders | 35,234,834.81 | 28,730,950.24 | 22.64 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-recurring Gains and Losses | 35,033,261.77 | 27,426,681.45 | 27.73 | | Net Cash Flow from Operating Activities | 31,066,668.44 | 26,966,670.12 | 15.20 | | Period-end vs. Prior Year-end | Current Period-end (RMB) | Prior Year-end (RMB) | Change from Prior Year-end (%) | | Net Assets Attributable to Listed Company Shareholders | 738,835,694.14 | 727,899,279.57 | 1.50 | | Total Assets | 1,046,444,629.07 | 1,002,928,924.49 | 4.34 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.3625 | 0.2928 | 23.80 | | Diluted Earnings Per Share (RMB/share) | 0.3625 | 0.2928 | 23.80 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (RMB/share) | 0.3604 | 0.2795 | 28.94 | | Weighted Average Return on Net Assets (%) | 4.83 | 4.06 | Increase of 0.77 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 4.80 | 3.88 | Increase of 0.92 percentage points | Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government grants recognized in profit or loss for the current period | 164,500.38 | | Fair value changes in financial assets and financial liabilities, and gains/losses from disposal of financial assets and financial liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 362,627.23 | | Other non-operating income and expenses apart from the above items | -275,885.80 | | Less: Income tax impact | 49,668.77 | | Total | 201,573.04 | Section III Management Discussion and Analysis Description of the Company's Industry and Main Business During the Reporting Period The company primarily engages in R&D, production, and sales of compound seasonings for chain restaurants, food processing, and brand retail, and has expanded into baked frozen dough. Industry growth is driven by restaurant chain development and demand for healthy, convenient foods, with market concentration expected to rise Main Business The company's core business involves R&D, production, and sales of compound seasonings (sauces, powders, food additives), primarily for B2B clients. During the reporting period, the acquisition of Jiaxing Aibeibang expanded operations into baked frozen dough - The company focuses on the research, development, production, and sales of compound seasonings, primarily serving chain restaurants, food processing, and brand retail enterprises by providing customized solutions[26] - Main products include three major categories: sauce-based seasonings, powder-based seasonings, and a small amount of food additives, totaling over a thousand varieties[26] - During the reporting period, the company completed the acquisition of Jiaxing Aibeibang Food Co., Ltd., expanding its business scope to include baked frozen dough[26] Business Model The company employs a "production-based-on-sales, procurement-based-on-production" model and a flexible "production-based-on-sales" approach, with sales primarily direct (B2B, ODM/OEM customization) and supplemented by distribution (supermarkets, general trade, small restaurants) - The procurement model is "production-based-on-sales, procurement-based-on-production," with the SAP cloud ERP system automatically generating requisitions based on sales orders and inventory levels[27] - The production model is primarily "production-based-on-sales," establishing a flexible production management system to provide customized solutions[28] - The sales model is predominantly direct, serving chain restaurants and food processing enterprises with integrated solutions; the distribution model targets supermarkets, general trade, and small restaurants[29][30] Main Products The company's main products include sauce-based seasonings (customized and standardized), powder-based seasonings (customized and standardized), baked goods (frozen dough), and food additives, offering a rich product line to meet diverse B2B and B2C needs - Sauce-based seasonings include customized products for food processing/catering enterprises (e.g., marinades, hot pot bases) and standardized products for home cooking (e.g., hot pot seasonings, Chinese stir-fry sauces)[31][33][35] - Powder-based seasonings also offer customized products (e.g., breading, compound soup powders) and standardized series products (e.g., BBQ series, fried series, concentrated soup series)[36][38] - Newly acquired Aibeibang primarily provides frozen dough products, transported via cold chain, for customers to process into pizzas, breads, and other baked goods[40] Industry Overview The company operates in the food manufacturing sector, with the compound seasoning industry in a rapid growth phase, characterized by low but rapidly increasing market penetration and significant future potential. The baked goods market is expanding, and frozen dough, as a sub-segment, shows significant growth, driven by restaurant chain development and standardization demands - The company operates in the seasoning and fermented products manufacturing sector within food manufacturing, with its newly added baked goods business belonging to the convenient food manufacturing industry[41] - The compound seasoning industry is still in an early rapid growth stage, with market penetration increasing quickly but remaining low compared to developed countries, indicating broad future market space[41] - The baked goods market continues to expand, exceeding RMB 550 billion in 2023 domestically, projected to surpass RMB 850 billion by 2029, with frozen baked goods as a fast-growing sub-segment and the frozen dough business showing significant growth[47] Company's Industry Position The company is one of the earliest professional compound seasoning producers in China, possessing a first-mover advantage and core competencies in customized R&D, flexible manufacturing, quality management, and rapid response, serving numerous high-quality chain restaurants and food processing enterprises, and developing its own brand "Taste of Story" - The company is one of the earliest professional compound seasoning enterprises in China, possessing a first-mover advantage, and initially served Japanese export-oriented chicken processing enterprises[53] - Currently, the company primarily serves large and medium-sized clients such as chain restaurants, food processing, and brand retail enterprises, providing customized compound seasoning solutions[53] - The company owns the "Taste of Story" brand, expanding into retail markets via supermarkets and e-commerce to offer consumers dietary choices[53] Discussion and Analysis of Operations In H1 2025, the company achieved double-digit growth in revenue and net profit by deeply serving existing clients, expanding new products and customers, despite intense competition and slowing consumer demand in the catering market. The acquisition of Aibeibang diversified into baked goods, and progress was made in R&D, channel expansion, digitalization, talent development, and investor returns - In H1 2025, social catering revenue grew by 4.3%, lower than the overall 5.0% growth in total retail sales of consumer goods, indicating more rational and cautious consumer spending on dining[54] Key Financial Performance H1 2025 | Indicator | Amount (RMB 10,000) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 20,363.70 | 8.63 | | Net Profit Attributable to Listed Company Shareholders | 3,523.48 | 22.64 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-recurring Gains and Losses | 3,503.33 | 27.73 | - The acquisition of Jiaxing Aibeibang Food Co., Ltd. completed in March 2025 contributed to revenue from its frozen dough business, but its relatively lower gross margin impacted the company's overall gross margin[55] - During the reporting period, the company's overall gross margin increased by 0.11 percentage points year-on-year; excluding the frozen dough business, the original compound seasoning business gross margin was 39.82%, an increase of 1.66 percentage points year-on-year[56] - The company continuously strengthens product R&D, with the new "Yuanzhiwei Yellow Tomato Sea Buckthorn Hot Pot Base" winning the iSEE Global Food Innovation Award, and "Yuanzhiwei Sea Buckthorn Popping Boba Cold Brew Juice" winning the FBIF Annual Innovative Seasoning Award[56] - The company was awarded "China Catering Industry Red Bull Award - Annual Catering Industry Influential Enterprise" for the fifth consecutive year, and won the First Prize in the Qingdao Food Industry Science and Technology Innovation Award[57] - The company deepens cooperation with strategic clients and renowned domestic and international chain restaurants, developing nearly 400 customized new products for existing clients in 2025[58] - The company accelerates digital transformation, optimizing systems like Fanwei collaborative management, MES, SAP cloud ERP, and data analytics, strengthening lean supply chain management[59] - The company launched a new phase of equity incentive plan, granting 2.28 million stock options to 26 directors, senior management, and core personnel[60][61] - The company completed its share repurchase plan in May 2024, repurchasing a total of 1.42 million shares worth over RMB 30 million. The interim profit distribution plan for H1 2025 proposes a cash dividend of RMB 0.20 per share (including tax)[62] Analysis of Core Competencies During the Reporting Period The company's core competencies include advantages in food processing channels, leading product R&D capabilities, stringent safety and quality control, an experienced management team, and data-driven supply chain management, all supporting its market position and sustainable development - The company has significant advantages in food processing channels, with a stable core customer base covering major Japanese export-oriented poultry processing enterprises and deep engagement in customized services for domestic chain restaurants[64] - The company is a national high-tech enterprise with an experienced and innovative R&D team, capable of rapidly responding to market and customer demands, providing customized product solutions[65][66] - The company established a comprehensive quality control system covering the entire process, certified by ISO22000, ISO9001, CNAS, BRC, ensuring product quality and food safety[67] - The core management team possesses over 10 years of experience in the seasoning industry, strengthening team building through long-term incentive and restraint mechanisms and management elite training[68] - The company is committed to digital leadership, enhancing supply chain management capabilities in procurement, production, quality control, and digital marketing through upgrades to digital workshops and SAP cloud ERP systems[69] Major Operating Conditions During the Reporting Period This period saw increases in the company's operating revenue and costs, decreases in selling and financial expenses, and an increase in R&D expenses. The acquisition of Jiaxing Aibeibang significantly changed business types, adding frozen dough. The asset-liability structure also changed considerably due to the acquisition, with goodwill, right-of-use assets, and lease liabilities increasing significantly Main Business Analysis During the reporting period, the company's operating revenue and cost of sales both increased, while selling and financial expenses decreased year-on-year, and R&D expenses increased. The company's business scope expanded with the addition of frozen dough business due to the acquisition of Jiaxing Aibeibang Financial Statement Items Fluctuation Analysis (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 203,637,046.56 | 187,450,901.31 | 8.63 | | Operating Costs | 125,701,400.50 | 115,914,733.26 | 8.44 | | Selling Expenses | 10,175,534.15 | 14,097,970.11 | -27.82 | | Administrative Expenses | 16,856,613.22 | 16,604,702.69 | 1.52 | | Financial Expenses | 1,143,383.85 | 1,420,057.61 | -19.48 | | R&D Expenses | 7,513,879.01 | 6,580,018.81 | 14.19 | | Net Cash Flow from Operating Activities | 31,066,668.44 | 26,966,670.12 | 15.20 | | Net Cash Flow from Investing Activities | -71,554,052.92 | 129,176,180.56 | -155.39 | | Net Cash Flow from Financing Activities | 361,692.96 | -15,049,297.21 | Not applicable | - Net cash flow from investing activities decreased primarily due to the recovery of large wealth management funds in the prior year and increased investment in fundraising projects this period[71] - Net cash flow from financing activities increased primarily due to share repurchase payments in the prior year[72] - During the reporting period, the company acquired Jiaxing Aibeibang Food Co., Ltd., adding frozen dough business, which belongs to baked goods[73] Analysis of Assets and Liabilities The company's asset-liability structure changed significantly due to the acquisition of Aibeibang, with right-of-use assets, long-term deferred expenses, deferred income tax assets/liabilities, lease liabilities, and goodwill all increasing substantially. Short-term borrowings grew, while accounts payable decreased Asset and Liability Status Changes (Period-end vs. Prior Year-end) | Item Name | Current Period-end Amount (RMB) | % of Total Assets at Current Period-end | Prior Year-end Amount (RMB) | % of Total Assets at Prior Year-end | Change from Prior Year-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Right-of-use Assets | 12,748,146.65 | 1.22 | 2,328,005.25 | 0.23 | 447.60 | | Long-term Deferred Expenses | 7,378,430.70 | 0.71 | 1,048,511.66 | 0.10 | 603.71 | | Deferred Income Tax Assets | 3,783,114.26 | 0.36 | 1,228,625.90 | 0.12 | 207.91 | | Lease Liabilities | 13,854,954.47 | 1.32 | 1,990,073.25 | 0.20 | 596.20 | | Deferred Income Tax Liabilities | 3,825,227.55 | 0.37 | 1,092,963.96 | 0.11 | 249.99 | | Goodwill | 16,391,709.85 | 1.57 | - | - | Not applicable | | Short-term Borrowings | 116,658,793.91 | 11.15 | 80,997,350.48 | 8.08 | 44.03 | | Accounts Payable | 57,553,761.13 | 5.50 | 84,719,365.91 | 8.45 | -32.07 | - Significant changes in right-of-use assets, lease liabilities, long-term deferred expenses, and deferred income tax assets/liabilities are mainly due to the acquisition of Aibeibang and the consolidation of its related assets and liabilities this period[74] - Goodwill increased by RMB 16,391,709.85, primarily because the merger cost of acquiring Aibeibang exceeded the fair value of its identifiable net assets[75] - Short-term borrowings increased by 44.03%, mainly due to increased bank loans this period; accounts payable decreased by 32.07%, primarily due to reduced payables for materials and engineering projects[75] Major Restricted Assets (Period-end) | Item | Period-end Carrying Amount (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 22,306,413.60 | Time deposits and guarantees | | Fixed Assets | 101,992,261.14 | Bank loan collateral | | Intangible Assets | 35,289,163.40 | Bank loan collateral | | Construction in Progress | 297,200,823.38 | Bank loan collateral | | Total | 456,788,661.52 | / | Analysis of Investment Status The company had no significant equity investments this period, but significant non-equity investments primarily involved projects funded by initial public offering proceeds. Among financial assets measured at fair value, wealth management products had both purchases and sales of RMB 135 million this period, and accounts receivable financing had a period-end balance of RMB 5.387 million - The company's significant non-equity investments during the reporting period were primarily projects funded by initial public offering proceeds[78] Financial Assets Measured at Fair Value (Period-end) | Asset Category | Beginning Balance (RMB) | Amount Purchased This Period (RMB) | Amount Sold/Redeemed This Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Wealth Management Products | - | 135,000,000.00 | 135,000,000.00 | - | | Accounts Receivable Financing | 6,555,641.16 | - | - | 5,386,979.40 | | Other Non-current Financial Assets | 20,000,000.00 | - | - | 20,000,000.00 | | Total | 26,555,641.16 | 135,000,000.00 | 135,000,000.00 | 25,386,979.40 | - The investment amount for acquiring Aibeibang was RMB 23.50 million, with a 100% stake, completed, impacting profit/loss by RMB 0.2985 million this period[81] Analysis of Major Holding and Participating Companies The company's main holding subsidiary, Richen Jiaxing, had total assets of RMB 507 million and net assets of RMB 343 million, with negative operating and net profits this period. The participating company, Richen Tianjin, had total assets of RMB 211 million and net assets of RMB 199 million, also with negative operating and net profits this period. The acquisition of Jiaxing Aibeibang Food Co., Ltd. through a non-same-control business combination during the reporting period had no significant impact on overall operations and performance Financial Data of Major Holding and Participating Companies | Company Name | Company Type | Main Business | Registered Capital (RMB 100 million) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Richen Jiaxing | Subsidiary | Food manufacturing | 3 | 507,106,612.82 | 342,634,425.37 | - | -2,352.64 | -2,566.07 | | Richen Tianjin | Participating company | Food manufacturing | 2 | 211,066,565.04 | 199,905,486.27 | - | -218,964.98 | -218,964.98 | - The acquisition of Jiaxing Aibeibang Food Co., Ltd. through a non-same-control business combination during the reporting period had no significant impact on overall operations and performance[83] Other Disclosures The company faces risks from raw material price fluctuations, food quality and safety, market competition, formula improvement and new product development, and relatively insufficient marketing development in supermarket and e-commerce channels. The company has established sound procurement management systems, food safety teams, and R&D teams to address these risks - The company faces risks from raw material price fluctuations, especially for bulk commodities like starch, edible oil, and white sugar, which experience frequent price changes[84] - Food quality and safety risks span the entire operation process; the company must promptly respond to changes in food safety standards, or it will adversely affect production and operations[85] - The compound seasoning industry is highly competitive and fragmented; the company needs to intensify efforts in marketing, new product R&D, and cost control to address market competition risks[86] - The company faces challenges in market acceptance and marketing promotion for formula improvements and new product development[87][88] - Marketing development in supermarket and e-commerce channels is relatively insufficient, potentially impacting the company's brand influence in the end consumer market[89] Section IV Corporate Governance, Environment, and Society Changes in Company Directors and Senior Management During the reporting period, the company completed the re-election of the fourth board of directors, supervisory board, and senior management, abolished the supervisory board with its functions transferred to the board's audit committee, and appointed an employee director - On January 10, 2025, the company elected members of the fourth board of directors, non-employee supervisors of the fourth supervisory board, and appointed the company's fourth senior management team[92] - On May 19, 2025, the company approved the "Proposal on Amending the Articles of Association," abolishing the supervisory board, transferring its functions to the board's audit committee, and adding an employee director[93] Profit Distribution or Capital Reserve Conversion Plan The company's proposed semi-annual profit distribution plan is a cash dividend of RMB 2.00 per 10 shares (including tax), with no bonus shares or capital reserve conversions Semi-Annual Profit Distribution Plan | Indicator | Amount | | :--- | :--- | | Whether to distribute or convert | Yes | | Number of bonus shares per 10 shares (shares) | 0 | | Dividend Per 10 Shares (RMB) (incl. tax) | 2.00 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures On June 20, 2025, the company approved the 2025 stock option incentive plan, and on July 7, granted 2.28 million stock options to 26 incentive recipients at an exercise price of RMB 26.63 per share, with registration completed - On June 20, 2025, the company approved the "2025 Stock Option Incentive Plan (Draft)" and its summary[96] - On July 7, 2025, the company granted 2.28 million stock options to 26 eligible incentive recipients at an exercise price of RMB 26.63 per share[96] - On July 11, 2025, the company completed the registration of the 2025 stock option incentive plan[96] Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization The company actively fulfills its social responsibilities, having organized a public tree-planting event in the Jimo Eastern Mountainous Area during the reporting period, donated RMB 300,000 to the Qingdao Jimo District Education Promotion Association to support education, and continuously organized the "Love Transmission, Books Fragrance" charity sale for three years - During the reporting period, the company organized a public tree-planting event in the Jimo Eastern Mountainous Area, contributing to green ecological construction through practical actions[98] - The company donated RMB 300,000 to the Qingdao Jimo District Education Promotion Association, specifically for supporting education development across the district[98] - The company has continuously organized the "Love Transmission, Books Fragrance" charity sale for three years, with proceeds donated to the Qingdao Red Cross Society for children in impoverished areas[98] Section V Significant Matters Fulfillment of Commitments The company's controlling shareholder, actual controller, and directors, supervisors, and senior management strictly fulfilled their commitments regarding share reductions, prospectus truthfulness, return enhancement measures, and standardized related-party transactions during the reporting period - Controlling shareholder Qingdao Boya Investment Holding Co., Ltd. committed that during Zhang Huajun's tenure as director/senior executive and within 6 months after his term ends, the annual share reduction amount will not exceed 25% of its total shares held at the end of the previous year, and the reduction price will not be lower than the IPO price, which has been strictly fulfilled[100] - Actual controller Zhang Huajun committed to indirectly transferring company shares through Qingdao Boya and Chenxing Zhiyuan not exceeding 25% of his directly or indirectly held shares, and the reduction price will not be lower than the IPO price, which has been strictly fulfilled[100] - The company's directors, supervisors, and senior management committed that during their tenure and within 6 months after their term ends, the annual indirect transfer of company shares through Chenxing Zhiyuan will not exceed 25% of their total shares held, which has been strictly fulfilled[101] Significant Contracts and Their Fulfillment During the reporting period, the total amount of guarantees provided by the company to its subsidiaries was RMB 13.2448 million, with a period-end guarantee balance of RMB 97.7370 million, accounting for 13.23% of the company's net assets Company's Total Guarantee Situation | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total guarantees provided to subsidiaries during the reporting period | 1,324.48 | | Total guarantee balance for subsidiaries at period-end (B) | 9,773.70 | | Total guarantees (A+B) | 9,773.70 | | Percentage of total guarantees to company's net assets (%) | 13.23 | Explanation of Progress in Use of Raised Funds The company's initial public offering raised a total of RMB 387.1620 million, with a net amount of RMB 342.6606 million. As of the end of the reporting period, a cumulative total of RMB 319.3617 million has been invested, representing an investment progress of 93.20%. The amount invested this year was RMB 34.3457 million Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (RMB 10,000) | Net Raised Funds (RMB 10,000) | Total Investment Pledged in Prospectus (RMB 10,000) | Cumulative Raised Funds Invested as of Period-end (RMB 10,000) | Cumulative Investment Progress as of Period-end (%) | Amount Invested This Year (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 38,716.20 | 34,266.06 | 34,266.06 | 31,936.17 | 93.20 | 3,434.57 | Detailed Use of Raised Fund Investment Projects | Project Name | Total Investment Pledged in Prospectus (RMB 10,000) | Amount Invested This Year (RMB 10,000) | Cumulative Raised Funds Invested as of Period-end (RMB 10,000) | Cumulative Investment Progress as of Period-end (%) | | :--- | :--- | :--- | :--- | :--- | | Annual Production of 15,000 Tons of Compound Seasoning Production Base Construction Project | 16,697.85 | 2,130.68 | 16,713.08 | 100.09 | | Annual Production of 5,000 Tons of Soup Extract Production Line Construction Project | 10,948.00 | 1,303.89 | 10,125.32 | 92.49 | | Marketing Network Construction Project | 3,748.71 | - | 2,992.74 | 79.83 | | Technology Center Upgrade Construction Project | 2,871.50 | - | 2,105.03 | 73.31 | Section VI Share Changes and Shareholder Information Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[116] Shareholder Information As of the end of the reporting period, the company had 6,357 common shareholders. Among the top ten shareholders, Qingdao Boya Investment Holding Co., Ltd. held 49.50% as the controlling shareholder, with some of its shares pledged. The company's special repurchase securities account held 1.44% of shares - As of the end of the reporting period, total common shareholders were 6,357[117] Top Ten Shareholders' Shareholding (Period-end) | Shareholder Name | Period-end Shareholding (shares) | Percentage (%) | Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | | Qingdao Boya Investment Holding Co., Ltd. | 48,810,000 | 49.50 | 24,040,000 | | Zhang Huajun | 8,980,000 | 9.11 | 0 | | Zhejiang Junhong Asset Management Co., Ltd. - Junhong Qianjiang Twenty-Seventh Private Securities Investment Fund | 4,946,157 | 5.02 | 0 | | MAPLE MARBLE CORP. | 3,623,730 | 3.67 | 0 | | Beijing Huano Investment Management Co., Ltd. - Huano Investment Taiding No. 1 Private Securities Investment Fund | 1,838,500 | 1.86 | 0 | | Yuan Jian | 1,150,000 | 1.17 | 0 | | Industrial and Commercial Bank of China Co., Ltd. - CITIC-Prudential Multi-Strategy Flexible Allocation Mixed Securities Investment Fund (LOF) | 950,600 | 0.96 | 0 | | Deng Xiaowan | 803,900 | 0.82 | 0 | | Jia Jianwei | 757,200 | 0.77 | 0 | | China Galaxy Securities Co., Ltd. | 482,400 | 0.49 | 0 | - As of June 30, 2025, the company's special repurchase securities account held a total of 1,420,000 shares, accounting for 1.44% of the company's total share capital[120] - Zhang Huajun is the actual controller of the company and also holds 95% of Qingdao Boya Investment Holding Co., Ltd., indicating a concerted action relationship between the two[120] Directors and Senior Management Information During the reporting period, the company's directors and senior management were granted stock options, with Cui Baojun, Chen Ying, Zhang Wei, Sui Xidang, Huang Guiqin, Cui Zhengbo, and Feng Xiaohong collectively granted 880,000 stock options Stock Options Granted to Directors and Senior Management | Name | Position | Number of Stock Options Granted (shares) | | :--- | :--- | :--- | | Cui Baojun | Director, Senior Management | 200,000 | | Chen Ying | Director, Senior Management | 120,000 | | Zhang Wei | Director, Senior Management | 120,000 | | Sui Xidang | Director | 80,000 | | Huang Guiqin | Senior Management | 120,000 | | Cui Zhengbo | Senior Management | 120,000 | | Feng Xiaohong | Senior Management | 120,000 | | Total | / | 880,000 | Section VII Bond-Related Information Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds Section VIII Financial Report Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5] Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flows for the first half of 2025 Company Basic Information Qingdao Richen Food Co., Ltd. was restructured in May 2016, listed on the Shanghai Stock Exchange in August 2019 (stock code 603755). The company operates in food manufacturing, primarily producing sauce-based, powder-based seasonings, and food additives. These financial statements were approved for issuance by the Board of Directors on August 22, 2025 - The company was restructured from Qingdao Richen Food Co., Ltd. in May 2016, listed on August 15, 2019, with stock code 603755[155] - The company belongs to food manufacturing, with main products being sauce-based seasonings, powder-based seasonings, and food additives[155] - These financial statements were approved for issuance by the company's Board of Directors on August 22, 2025[156] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with Enterprise Accounting Standards and relevant regulations of the China Securities Regulatory Commission, using the accrual basis of accounting, and measured at historical cost except for financial instruments - The company's financial statements are prepared on a going concern basis, according to the Enterprise Accounting Standards issued by the Ministry of Finance and the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports (Revised 2023)"[157] - The company's accounting is based on the accrual method, and except for certain financial instruments, these financial statements are measured at historical cost[157] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[158] Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates in food manufacturing operations, covering Enterprise Accounting Standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, accounts receivable financing, other receivables, inventories, assets held for sale, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company uses a 12-month operating cycle as the basis for classifying assets and liabilities as current or non-current[163] - Assets and liabilities acquired in a business combination are measured at their carrying amounts in the ultimate controlling party's consolidated financial statements at the date of combination[167] - For non-same-control business combinations, the excess of the merger cost over the fair value of the identifiable net assets acquired at the acquisition date is recognized as goodwill[168] - The company classifies financial assets into three categories based on the business model for managing financial assets and their contractual cash flow characteristics: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[181] - The company recognizes impairment provisions and credit impairment losses for notes receivable, accounts receivable, contract assets, other receivables, etc., based on expected credit losses[189] - Inventories primarily include raw materials, low-value consumables and packaging materials, semi-finished goods, finished goods, and goods in transit, valued using the weighted average method upon issuance[195] - Fixed assets are depreciated using the straight-line method; buildings and structures over 20-45 years, production equipment over 10-15 years, transportation equipment over 4-10 years, and electronic and other equipment over 3-5 years[213] - The company recognizes revenue when the customer obtains control of the related goods, and revenue is recognized based on the progress of performance or the point in time when control is transferred[244][245][246] Taxation The company's main taxes include VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax. Richen Food enjoys a 15% corporate income tax preferential rate as a high-tech enterprise, while its subsidiary Jiaxing Aibeibang Food Co., Ltd. qualifies as a small and micro enterprise, paying corporate income tax at a 20% rate Major Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13% | | Urban Maintenance and Construction Tax | 7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15%, 20%, 25% | - Qingdao Richen Food Co., Ltd. enjoys a 15% corporate income tax preferential rate as a high-tech enterprise[261] - Subsidiary Jiaxing Aibeibang Food Co., Ltd. qualifies for small and micro enterprise tax declaration conditions, paying corporate income tax at a 20% rate[261] Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning balances, and current period changes for each item in the consolidated financial statements, including monetary funds, accounts receivable, inventories, fixed assets, construction in progress, goodwill, short-term borrowings, long-term borrowings, operating revenue and costs, selling expenses, administrative expenses, R&D expenses, financial expenses, investment income, credit impairment losses, income tax expenses, and cash flows Composition of Monetary Funds (Period-end) | Item | Period-end Balance (RMB) | | :--- | :--- | | Cash on hand | 65,628.96 | | Bank deposits | 97,009,850.55 | | Other monetary funds | 22,402,336.87 | | Total | 119,477,816.38 | - Period-end restricted monetary funds amounted to RMB 22,306,413.60, primarily for e-commerce platform deposits, temporary land use deposits, and time deposits[265][337] - Accounts receivable period-end carrying amount was RMB 68,806,421.21, with an impairment provision rate of 5.47%[270] - Inventories period-end carrying amount was RMB 29,007,485.25, mainly comprising raw materials, finished goods, and low-value consumables and packaging materials[297] - Fixed assets period-end carrying amount was RMB 190,186,333.10, with an increase of RMB 30,619,922.99 this period due to business combination[311] - Construction in progress period-end balance was RMB 381,743,655.86, primarily for the compound seasoning production base and soup extraction production line projects[314] - Goodwill period-end balance was RMB 16,391,709.85, formed this period from the acquisition of Aibeibang[323] - Short-term borrowings period-end balance was RMB 116,658,793.91, a 44.03% increase from the beginning of the period[339] Operating Revenue and Operating Costs (Current Period) | Item | Revenue (RMB) | Cost (RMB) | | :--- | :--- | :--- | | Main Business | 203,203,217.74 | 125,230,774.75 | | Other Business | 433,828.82 | 470,625.75 | | Total | 203,637,046.56 | 125,701,400.50 | Operating Revenue Breakdown by Product Type and Sales Channel (Current Period) | Category | Operating Revenue (RMB) | | :--- | :--- | | Product Type | | | Sauce-based Seasonings | 146,042,766.14 | | Powder-based Seasonings | 45,386,613.69 | | Baked Goods | 10,489,582.77 | | Food Additives | 1,284,255.14 | | Sales Channel | | | Catering | 96,357,507.59 | | Food Processing | 68,751,993.60 | | Brand Customization | 31,270,714.98 | | Direct Supermarket Sales | 4,291,977.98 | | Direct E-commerce Sales | 884,904.62 | | Distributors (Retail) | 1,646,118.97 | - Selling expenses incurred this period amounted to RMB 10,175,534.15, a 27.82% decrease from the prior period[394] - R&D expenses incurred this period amounted to RMB 7,513,879.01, a 14.19% increase from the prior period[395] - Investment income this period amounted to RMB 253,144.74, primarily from short-term wealth management income and equity method accounting for joint ventures[397] - Net cash flow from operating activities was RMB 31,066,668.44, from investing activities was -RMB 71,554,052.92, and from financing activities was RMB 361,692.96[421] R&D Expenses The company's total R&D expenses for this period were RMB 7,513,879.01, all expensed, primarily consisting of employee compensation and R&D materials, showing an increase from the prior period R&D Expenses by Nature of Expense (Current Period) | Item | Amount Incurred This Period (RMB) | | :--- | :--- | | R&D Materials | 1,295,204.45 | | Employee Compensation | 4,896,346.49 | | Other Expenses | 1,322,328.07 | | Total | 7,513,879.01 | | Of which: Expensed R&D expenses | 7,513,879.01 | - All R&D expenses this period were expensed, with no capitalized R&D expenses[435] Changes in Consolidation Scope On March 31, 2025, the company acquired 100% equity of Jiaxing Aibeibang Food Co., Ltd. for RMB 23.5 million in cash through a non-same-control business combination, consolidating it into its scope and recognizing goodwill of RMB 16,391,709.85 - On March 31, 2025, the company acquired 100% equity of Jiaxing Aibeibang Food Co., Ltd. for RMB 23,500,000.00 in cash, consolidating it into its scope[437][440] - After acquiring Aibeibang, the excess of the merger cost over the fair value of identifiable net assets acquired, amounting to RMB 16,391,709.85, was recognized as goodwill[440] - Aibeibang's revenue from the acquisition date to period-end was RMB 10,489,582.77, and net profit was RMB 298,482.00[437] Interests in Other Entities The company owns Richen Shanghai, Richen Jiaxing, and Aibeibang as wholly-owned subsidiaries, and holds a 50% equity stake in the joint venture Richen Food (Tianjin) Co., Ltd. Richen Tianjin had total assets of RMB 211 million and net assets of RMB 199 million at period-end, with a net loss of RMB 0.219 million this period Subsidiary Information | Subsidiary Name | Business Nature | Shareholding Percentage (%) | | :--- | :--- | :--- | | Richen Food Sales (Shanghai) Co., Ltd. | Sales | 100% | | Richen Food (Jiaxing) Co., Ltd. | Production, Sales | 100% | | Jiaxing Aibeibang Food Co., Ltd. | Production, Sales | 100% | - The company holds a 50% equity stake in the joint venture Richen Food (Tianjin) Co., Ltd., accounted for using the equity method[449] Key Financial Information of Significant Joint Venture Richen Tianjin (Period-end/Current Period) | Item | Richen Tianjin Company (RMB) | | :--- | :--- | | Total Assets | 211,066,565.04 | | Total Liabilities | 11,161,078.77 | | Equity Attributable to Parent Company Shareholders | 199,905,486.27 | | Net Assets Share Calculated by Shareholding Percentage | 99,952,743.14 | | Net Profit | -218,964.98 | | Total Comprehensive Income | -218,964.98 | Government Grants Total government grants recognized in profit or loss this period amounted to RMB 164,500.38, comprising RMB 162,921.06 related to assets and RMB 1,579.32 related to income Government Grants Recognized in Profit or Loss (Current Period) | Type | Amount Incurred This Period (RMB) | | :--- | :--- | | Asset-related | 162,921.06 | | Income-related | 1,579.32 | | Total | 164,500.38 | Risks Related to Financial Instruments The company primarily faces credit risk, market risk (foreign exchange risk and interest rate risk), and liquidity risk. The company manages these risks by assessing customer credit, monitoring foreign currency financial assets/liabilities, and cash balances - The company primarily faces credit risk, market risk (foreign exchange risk and interest rate risk), and liquidity risk[454] - Credit risk mainly arises from credit sales, managed by assessing new customer credit risk[455] - Foreign exchange risk is primarily related to export sales in USD; interest rate risk stems from interest-bearing financial instruments[455] - Liquidity risk is centrally controlled by the finance department to ensure sufficient cash to repay maturing debts[455] Disclosure of Fair Value At period-end, financial assets measured at fair value include accounts receivable financing and other non-current financial assets. Accounts receivable financing is measured using Level 2 fair value, while other non-current financial assets are measured using Level 3 fair value Fair Value of Assets Measured at Fair Value (Period-end) | Item | Level 2 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 5,386,979.40 | - | 5,386,979.40 | | Other Non-current Financial Assets | - | 20,000,000.00 | 20,000,000.00 | | Total | 5,386,979.40 | 20,000,000.00 | 25,386,979.40 | - Accounts receivable financing (bank acceptance bills) fair value is determined by its face amount due to short remaining maturity[459] - Other non-current financial assets (investments in equity investment funds) fair value is determined by investment cost[460] Related Parties and Related Party Transactions The company's ultimate controlling party is Zhang Huajun, who directly and indirectly controls 58.61% of the company's shares. During the reporting period, key management personnel compensation amounted to RMB 2.6645 million - The company's ultimate controlling party is Zhang Huajun, who directly holds 9.11% of shares and indirectly controls 49.50% through Qingdao Boya Investment Holding Co., Ltd., totaling 58.61% control[463] Key Management Personnel Compensation | Item | Amount Incurred This Period (RMB 10,000) | Amount Incurred Prior Period (RMB 10,000) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 266.45 | 278.69 | Share-based Payment During the reporting period, the company had no equity-settled or cash-settled share-based payment arrangements, nor did it incur any share-based payment expenses Commitments and Contingencies As of the end of the reporting period, the company had no significant commitments or contingencies requiring disclosure Events After the Balance Sheet Date The company plans to distribute profits or dividends of RMB 0.20, with the approved and declared amount of profits or dividends being RMB 19,438,736.20 Profit Distribution | Item | Amount (RMB) | | :--- | :--- | | Proposed profit or dividend distribution | 0.20 | | Approved and declared profit or dividend distribution | 19,438,736.20 | Section XIX Notes to Major Items in Parent Company Financial Statements Accounts Receivable The parent company's accounts receivable carrying amount at period-end was RMB 67,147,228.65, with full impairment provision for accounts receivable from subsidiary Richen Food Sales (Shanghai) Co., Ltd. Accounts receivable for which impairment provisions were made based on aging group had a period-end balance of RMB 70,744,236.71 - The parent company's accounts receivable period-end book balance was RMB 88,225,343.25, impairment provision was RMB 21,078,114.60, and carrying amount was RMB 67,147,228.65[476] - A full impairment provision of RMB 17,481,106.54 was made for accounts receivable from subsidiary Richen Food Sales (Shanghai) Co., Ltd., due to the subsidiary's negative net assets[478] Parent Company's Accounts Receivable with Impairment Provision by Aging Group (Period-end) | Aging | Book Balance (RMB) | Impairment Provision (RMB) | Provision Rate (%) | | :--- | :--- | :--- | :--- | | Within 1 year | 70,563,498.23 | 3,528,175.08 | 5.00 | | 1 to 2 years | 78,231.03 | 7,823.10 | 10.00 | | 2 to 3 years | 59,282.24 | 17,784.67 | 30.00 | | Over 3 years | 43,225.21 | 43,225.21 | 100.00 | | Total | 70,744,236.71 | 3,597,008.06 | / | Other Receivables The parent company's other receivables carrying amount at period-end was RMB 89,713,587.84, primarily comprising intercompany balances and deposits/guarantees. The period-end impairment provision was RMB 17,621,645.93 - The parent company's other receivables period-end book balance was RMB 107,335,233.77, impairment provision was RMB 17,621,645.93, and carrying amount was RMB 89,713,587.84[485][491][494] - Other receivables primarily consist of intercompany balances (RMB 106,260,374.21) and deposits/guarantees (RMB 1,074,859.56)[490] Parent Company's Top Five Other Receivables by Debtor (Period-end) | Debtor Name | Period-end Balance (RMB) | % of Total Other Receivables at Period-end | Nature of Payment | | :--- | :--- | :--- | :--- | | Unit A | 59,893,397.89 | 55.80 | Intercompany balance | | Unit B | 25,000,000.00 | 23.29 | Intercompany balance | | Unit C | 21,302,300.00 | 19.85 | Intercompany balance | | Unit D | 692,000.00 | 0.64 | Guarantee deposit | | Unit E | 152,189.70 | 0.14 | Deposit | Long-term Equity Investments The parent company's long-term equity investments carrying amount at period-end was RMB 459,733,860.22, including investments in subsidiaries of RMB 359,781,117.09 (with a new investment of RMB 23.5 million in Jiaxing Aibeibang this period) and an investment in the joint venture Richen Food (Tianjin) Co., Ltd. of RMB 99,952,743.13 - The parent company's long-term equity investments period-end carrying amount was RMB 459,733,860.22[498] Parent Company's Investments in Subsidiaries (Period-end) | Investee | Period-end Balance (Carrying Amount) (RMB) | Period-end Impairment Provision (RMB) | | :--- | :--- | :--- | | Richen Food Sales (Shanghai) Co., Ltd. | - | 1,959,548.51 | | Richen Food (Jiaxing) Co., Ltd. | 336,281,117.09 | - | | Jiaxing Aibeibang Food Co., Ltd. | 23,500,000.00 | - | | Total | 359,781,117.09 | 1,959,548.51 | - The parent company's investment in joint venture Richen Food (Tianjin) Co., Ltd. had a period-end carrying amount of RMB 99,952,743.13, with investment loss recognized under the equity method of -RMB 109,482.49 this period[499] Operating Revenue and Operating Costs The parent company's operating revenue this period was RMB 197,953,936.77, and operating cost was RMB 121,692,119.95, with both main business revenue and cost showing growth Parent Company's Operating Revenue and Operating Costs (Current Period) | Item | Revenue (RMB) | Cost (RMB) | | :--- | :--- | :--- | | Main Business | 197,520,107.95 | 121,221,494.20 | | Other Business | 433,828.82 | 470,625.75 | | Total | 197,953,936.77 | 121,692,119.95 | Investment Income The parent company's investment income this period was -RMB 109,482.49, primarily from equity method accounting for joint ventures Parent Company's Investment Income (Current Period) | Item (Losses indicated by "-") | Amount Incurred This Period (RMB) | | :--- | :--- | | Short-term wealth management income | 113,370.40 | | Equity method accounting for joint ventures | -109,482.49 | | Total | -109,482.49 | Section XX Supplementary Information Schedule of Non-recurring Gains and Losses for the Current Period Total non-recurring gains and losses for this period amounted to RMB 201,573.04, mainly including government grants, fair value changes in financial assets, and other non-operating income and expenses Details of Non-recurring Gains and Losses for the Current Period | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government grants recognized in profit or loss for the current period | 164,500.38 | | Fair value changes in financial assets and financial liabilities, and gains/losses from disposal of financial assets and financial liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 362,627.23 | | Other non-operating income and expenses apart from the above items | -275,885.80 | | Less: Income tax impact | 49,668.77 | | Total | 201,573.04 | Return on Net Assets and Earnings Per Share The weighted average return on net assets attributable to common shareholders for this period was 4.83%, with basic and diluted earnings per share both at RMB 0.3625 Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB/share) | Diluted Earnings Per Share (RMB/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 4.83 | 0.3625 | 0.3625 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 4.80 | 0.3604 | 0.3604 |