隆基绿能(601012) - 2025 Q2 - 季度财报

Glossary Defines key terms like the reporting period, HPBC battery technology, and crystalline silicon-perovskite tandem technology - The reporting period refers to January-June 2025[14] - The company's independently developed high-efficiency BC battery technology is HPBC, featuring a grid-free front side, high conversion efficiency, and perfect appearance[14] - Crystalline silicon-perovskite tandem technology achieves higher photoelectric conversion efficiency by stacking two types of cells[15] Company Profile and Key Financial Indicators Provides basic company information, contact details, stock overview, and key financial performance for H1 2025 Basic Company Information LONGi Green Energy Technology Co., Ltd., abbreviated as LONGi Green Energy, with Zhong Baoshen as legal representative - Company's Chinese name: LONGi Green Energy Technology Co., Ltd., abbreviated as LONGi Green Energy[17] - Legal Representative of the Company: Zhong Baoshen[17] Contact Information Liu Xiaodong is the Board Secretary, Wang Hao is the Securities Affairs Representative, both located at No. 8369 Shangyuan Road, Economic and Technological Development Zone, Xi'an - Board Secretary: Liu Xiaodong; Securities Affairs Representative: Wang Hao[18] - Contact Address: No. 8369 Shangyuan Road, Economic and Technological Development Zone, Xi'an[18] Changes in Basic Information The company's registered address is No. 388 Aerospace Middle Road, Chang'an District, Xi'an, and its office address is No. 8369 Shangyuan Road, Economic and Technological Development Zone, Xi'an, with no changes during the reporting period - Company's registered address: No. 388 Aerospace Middle Road, Chang'an District, Xi'an[19] - Company's office address: No. 8369 Shangyuan Road, Economic and Technological Development Zone, Xi'an[19] - There were no historical changes to the company's registered address and office address during the reporting period[19] Information Disclosure The company's designated information disclosure newspapers are China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily, with the semi-annual report published on www.sse.com.cn, no changes during the reporting period - Information disclosure newspapers: China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily[20] - Website address for semi-annual report publication: www.sse.com.cn[20](index=20&type=chunk) - There were no changes in information disclosure and document storage locations during the reporting period[20] Company Stock Information The company's A-shares are listed on the Shanghai Stock Exchange under the stock abbreviation "LONGi Green Energy" and stock code "601012" - A-share listing exchange: Shanghai Stock Exchange[22] - A-share stock abbreviation: LONGi Green Energy; Stock code: 601012[22] Key Accounting Data and Financial Indicators In H1 2025, operating revenue decreased by 14.83% year-on-year to 32.813 billion yuan, with a net loss attributable to shareholders of 2.569 billion yuan, a reduction in loss of 2.661 billion yuan compared to the prior year, mainly due to improved operational efficiency and reduced asset impairment losses 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period (Adjusted) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 32,813,146,398.68 yuan | 38,528,702,860.54 yuan | -14.83 | | Total Profit | -3,019,521,987.00 yuan | -6,402,323,885.48 yuan | Not Applicable | | Net Profit Attributable to Shareholders of the Listed Company | -2,569,358,351.05 yuan | -5,230,631,522.98 yuan | Not Applicable | | Net Cash Flow from Operating Activities | -484,332,299.83 yuan | -6,413,098,864.02 yuan | Not Applicable | | Net Assets Attributable to Shareholders of the Listed Company (Period-end) | 58,274,955,479.58 yuan | 60,892,076,685.39 yuan | -4.30 | | Total Assets (Period-end) | 149,604,304,410.28 yuan | 152,841,364,930.92 yuan | -2.12 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period (Adjusted) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | -0.34 | -0.69 | Not Applicable | | Diluted Earnings Per Share (yuan/share) | -0.34 | -0.69 | Not Applicable | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (yuan/share) | -0.44 | -0.69 | Not Applicable | | Weighted Average Return on Net Assets (%) | -4.31 | -7.70 | Increased by 3.39 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | -5.55 | -7.75 | Increased by 2.20 percentage points | - The net loss attributable to shareholders of the listed company decreased by 2.661 billion yuan compared to the prior year, mainly benefiting from improved operational efficiency leading to a significant decrease in sales and administrative expenses, as well as a substantial reduction in asset impairment losses[42] Non-recurring Gains and Losses The company's total non-recurring gains and losses for H1 2025 amounted to 734.78 million yuan, primarily from government subsidies, fair value changes, and disposal of non-current assets 2025 Semi-Annual Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the write-off portion of asset impairment provisions | 8,408,215.58 | | Government grants recognized in current profit or loss | 465,313,654.99 | | Gains or losses from changes in fair value of financial assets and liabilities, and investment gains or losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 547,390,546.37 | | Other non-operating income and expenses apart from the above | -158,362,296.05 | | Less: Income tax impact | 126,707,019.38 | | Impact on minority interests (after tax) | 1,260,103.57 | | Total | 734,782,997.94 | Management Discussion and Analysis Discusses the company's industry overview, business operations, core competitiveness, and significant disclosures, including risks and "Quality Improvement, Efficiency Enhancement, and Return" action plan Industry and Main Business Overview In H1 2025, the global PV market faced supply-demand imbalance and intense competition, while the company maintained a leading position through technological innovation in monocrystalline silicon wafers, cells, modules, and green hydrogen PV Industry Situation H1 domestic PV installations grew by 107% to 212.21 GW, but manufacturing output slowed, leading to industry-wide losses due to low prices, while BC technology gained traction and trade barriers reshaped global supply chains - In H1 2025, domestic PV new installed capacity reached 212.21 GW, a year-on-year increase of 107%, with distributed PV accounting for 53% of the total[31] - In H1, the growth rate of domestic PV cell and module output decreased to below 15%, while polysilicon and silicon wafer output experienced negative growth, leading to persistently low prices across the industry chain and widespread losses[31] - The US anti-dumping/countervailing duty final rulings on PV cells and modules imported from four Southeast Asian countries took effect, and new AD/CVD investigations were initiated against India, Indonesia, and Laos, with the OBBB Act taking effect in July, intensifying global trade uncertainty[33][34] - BC technology gained market favor due to its high efficiency, aesthetic appeal, and reliable value, highlighting its differentiated advantages[35] Company's Main Business The company aims to be a leading solar technology company, focusing on innovation across monocrystalline silicon wafers, cells, modules, PV solutions, and green hydrogen, maintaining global leadership in wafer and module shipments - The company's business segments include monocrystalline silicon wafers, cells and modules, distributed PV solutions, global green PV building solutions, ground-mounted PV solutions, and green hydrogen equipment[37] - The company's cumulative monocrystalline silicon wafer shipments have ranked first globally over the past decade, and module shipments have consistently ranked among the top two over the past six years[40] - The company's module products have won the US RETC "Overall Highest Achiever" award 7 consecutive times and the Kiwa PVEL reliability test "Top Performer" award 8 times cumulatively[40] Analysis of Operating Performance In H1 2025, despite a 14.83% year-on-year revenue decline, the company demonstrated strong operational resilience, reducing net loss attributable to shareholders by 2.661 billion yuan through its BC strategy, product diversification, global market expansion, continuous innovation, and lean manufacturing Product Strategy and BC Technology Leadership The company built a high-value product system centered on HPBC2.0 technology, achieving 24.8% mass production module efficiency and 4 GW shipments in H1, while also innovating HIBC modules with 700W+ power and 25.9% efficiency - The company's HPBC2.0 technology products achieved a mass production module conversion efficiency of up to 24.8%, with approximately 4 GW shipped to over 70 countries and regions in H1[42] - By the end of 2025, the company expects its HPBC2.0 cell high-efficiency capacity to exceed 60%[42] - The company innovated and successfully mass-produced HIBC modules, achieving module power of 700W+ and efficiency of 25.9% with a 2382mm×1134mm size, becoming the world's most efficient industrialized PV product[45] Global Market Expansion The company achieved strong domestic module sales growth of over 70% and significant overseas silicon wafer sales growth of over 70%, expanding in Europe, Asia-Pacific, Latin America, and MEA markets by focusing on high-value customers and niche segments - Domestic module sales achieved a strong year-on-year growth of over 70%[46] - Overseas sales of N-type silicon wafers (Tai Rui) reached a penetration rate of 90%; overseas silicon wafer sales increased by over 70% year-on-year in H1[46] - The company was awarded TOP1 PV module brand in Australia's SolarQuotes semi-annual rating[46] Technological Innovation and R&D Investment The company maintained high R&D investment, achieving 97% mass production yield for HPBC2.0 cells and setting new efficiency records for BC cells (27.81%) and modules (over 26%), while also maintaining a 34.85% world record for crystalline silicon-perovskite tandem cells and building a robust BC technology patent portfolio - HPBC2.0 cell mass production yield reached 97%[47] - BC cell R&D efficiency reached 27.81% (certified by ISFH, Germany), and BC module R&D efficiency exceeded 26% (certified by NREL, USA)[47] - Crystalline silicon-perovskite tandem cell efficiency maintained a world record of 34.85% (NREL certified) and achieved 33% conversion efficiency on an ultra-large size of 260.9 cm² for the first time[48] - The company has obtained over 3,500 authorized patents of various types, including 480 patents for BC cells and modules[47] Lean Manufacturing and Operational Efficiency The company enhanced lean manufacturing through digital transformation, achieving a 97% mass production yield for HPBC2.0 cells, significantly reducing sales and administrative expenses by 37% and 23% respectively, and maintaining a healthy financial position with a 60.72% asset-liability ratio and 21.45% interest-bearing debt ratio - The company's Jiaxing base was awarded Level 3 certification for National Intelligent Manufacturing Capability Maturity (Integrated Level)[49] - Sales expenses and administrative expenses decreased significantly year-on-year by 37% and 23% respectively[49] - At the end of the reporting period, the asset-liability ratio was 60.72%, and the interest-bearing debt ratio was 21.45%, indicating industry-leading financial health[49] - The company was ranked PV Tech's highest bankability rating for module manufacturers for the 22nd consecutive time[49] Core Competitiveness The company's core competitiveness lies in its R&D, advanced manufacturing, global operations, sound financial health, and strong ESG performance, consistently leading industry technological breakthroughs and industrial transformation - The company adheres to the development philosophy of "stability, reliability, and technology leadership," maintaining significant advantages in technology R&D layout, advanced lean manufacturing, global efficient operations, sound financial health, and excellent ESG performance[52] Key Operating Performance During the reporting period, operating revenue decreased by 14.83%, operating costs decreased by 7.02%, sales and administrative expenses significantly declined, and financial expenses decreased due to increased exchange gains, while the asset-liability structure remained healthy with increased trading financial assets and construction in progress Financial Analysis of Main Business Operating revenue decreased by 14.83% to 32.813 billion yuan due to lower product prices, while operating costs decreased by 7.02% due to reduced unit manufacturing costs, and sales and administrative expenses significantly declined by 36.92% and 22.75% respectively, with financial expenses decreasing due to exchange gains Major Financial Statement Item Changes | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 32,813,146,398.68 | 38,528,702,860.54 | -14.83 | | Operating Costs | 33,080,973,460.60 | 35,579,171,022.74 | -7.02 | | Sales Expenses | 838,609,967.22 | 1,329,358,022.10 | -36.92 | | Administrative Expenses | 1,342,967,402.60 | 1,738,404,716.56 | -22.75 | | Financial Expenses | -408,815,336.57 | -305,384,216.41 | Not Applicable | | R&D Expenses | 751,097,037.01 | 885,184,926.73 | -15.15 | | Net Cash Flow from Operating Activities | -484,332,299.83 | -6,413,098,864.02 | Not Applicable | | Net Cash Flow from Investing Activities | -4,346,462,801.34 | -3,781,643,379.64 | Not Applicable | | Net Cash Flow from Financing Activities | 1,036,163,832.37 | 7,817,485,804.04 | -86.75 | - Reason for change in operating revenue: Decrease in prices of modules, silicon wafers, and other products[54] - Reason for change in financial expenses: Increase in exchange gains due to exchange rate fluctuations[54] Asset and Liability Analysis At the end of the reporting period, total assets were 149.604 billion yuan, a 2.12% decrease from the prior year-end, and net assets attributable to shareholders were 58.275 billion yuan, a 4.30% decrease, with significant increases in trading financial assets and construction in progress, and changes in notes and accounts payable Changes in Assets and Liabilities | Item Name | Current Period-end Amount (yuan) | Percentage of Total Assets (%) | Change Ratio from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 302,827,023.20 | 0.20 | 1,392.95 | Investment in Zhongjing Technology reclassified from long-term equity investment to trading financial assets due to decreased shareholding ratio | | Derivative Financial Assets | 13,254,435.00 | 0.01 | Not Applicable | Fair value changes from new commodity futures investments in current period | | Notes Receivable | 1,883,106,978.28 | 1.26 | 35.58 | Increase in balance of endorsed but not derecognized notes | | Accounts Receivable Financing | 222,472,872.27 | 0.15 | -64.19 | Increase in proportion of endorsed and derecognized notes | | Prepayments | 1,647,962,227.02 | 1.10 | -41.19 | Decrease in prepaid material costs | | Other Receivables | 520,136,831.18 | 0.35 | 81.45 | Increase in receivables from asset disposals | | Investment Properties | 168,485,698.82 | 0.11 | Not Applicable | New self-use properties converted to rental properties in current period | | Construction in Progress | 7,436,645,998.78 | 4.97 | 68.77 | Increase in BC capacity investment and renovation | | Notes Payable | 6,268,167,918.84 | 4.19 | -63.61 | Decrease in notes payable settlement methods | | Accounts Payable | 28,305,056,816.12 | 18.92 | 42.62 | Increase in letter of credit settlement methods | | Other Current Liabilities | 756,623,410.78 | 0.51 | 69.59 | Increase in deferred output VAT | | Deferred Income | 1,440,442,399.76 | 0.96 | 40.60 | Increase in government grants related to assets | - Overseas assets amounted to 17.822 billion yuan, accounting for 11.91% of total assets[60] Investment Activities Analysis The company focused on the BC technology platform, accelerating HPBC2.0 product and capacity upgrades, with long-term equity investments increasing by 0.45% to 8.767 billion yuan, and new BC cell projects in Tongchuan and Xixian New Area gradually commencing production, while also engaging in commodity futures hedging - The company's HPBC2.0 proprietary cell capacity reached 24 GW, with HPBC2.0 cell capacities in Shaanxi Xixian New Area and Tongchuan gradually commencing production in Q2 2025[64] - As of the end of the reporting period, the company's long-term equity investment balance was 8.767 billion yuan, an increase of 0.45% from the beginning of the year[64] Significant Non-Equity Investment Projects | No. | Project | Implementing Entity | Total Investment Approved by Board (100 million yuan) | Project Progress | Funding Source | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Heshan 10GW Monocrystalline Module Project | Heshan PV Technology | 19.99 | Investment scale adjusted to 3GW, currently in production. | Self-raised funds | | 2 | Tongchuan LONGi 12GW High-Efficiency BC Cell Project | Tongchuan PV Technology | 28.77 | Project under construction, first phase capacity gradually commenced production in Q2 2025. | Self-raised funds + Raised funds | | 3 | LONGi Green Energy PV (Xixian New Area) Phase I 12.5GW High-Efficiency BC Cell Project | Xixian New Area PV Technology | 32.06 | Project under construction, first phase capacity gradually commenced production in Q2 2025. | Self-raised funds + Raised funds | - The company conducts commodity futures hedging to mitigate the risk of raw material price fluctuations, realizing a futures closing loss of 28.3807 million yuan in the current period, effectively offsetting the risk of expected transaction price fluctuations for raw material procurement[70] Major Subsidiaries and Associates The company disclosed financial data for key subsidiaries like LONGi Leye, Taizhou Leye PV, Chuzhou Leye PV, Xianyang Leye PV, Jiaxing Leye PV, Jiaxing PV Technology, Ordos LONGi, Ordos PV Technology, Jiaxing Optoelectronic Technology, and associate Yunnan Tongwei, while also adding 33 new subsidiaries and disposing of 4 power station project companies Major Subsidiaries and Associates Financial Data (Unit: 10,000 yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | LONGi Leye | Subsidiary | PV product manufacturing and sales | 360,000.00 | 4,696,140.16 | 1,420,954.67 | 1,916,540.21 | 46,834.10 | 49,323.64 | | Taizhou Leye PV | Subsidiary | PV product manufacturing and sales | 60,000.00 | 320,255.77 | 190,033.42 | 364,693.84 | 10,466.55 | 9,002.94 | | Chuzhou Leye PV | Subsidiary | PV product manufacturing and sales | 50,000.00 | 631,937.92 | 150,211.69 | 462,917.35 | -7,425.28 | -6,088.12 | | Xianyang Leye PV | Subsidiary | PV product manufacturing and sales | 40,000.00 | 398,726.30 | 55,242.78 | 637,363.63 | 8,794.22 | 7,589.03 | | Jiaxing Leye PV | Subsidiary | PV product manufacturing and sales | 40,000.00 | 579,167.56 | 61,033.34 | 571,657.94 | -9,207.76 | -7,906.10 | | Jiaxing PV Technology | Subsidiary | PV product manufacturing and sales | 30,000.00 | 291,957.23 | -80,675.53 | 278,712.50 | -28,824.54 | -23,684.82 | | Ordos LONGi | Subsidiary | PV product manufacturing and sales | 210,000.00 | 865,424.96 | 152,130.00 | 431,212.43 | 13,027.51 | 10,495.35 | | Ordos PV Technology | Subsidiary | PV product manufacturing and sales | 180,000.00 | 828,602.87 | 55,554.46 | 538,780.68 | -8,952.50 | -7,747.24 | | Jiaxing Optoelectronic Technology | Subsidiary | PV product manufacturing and sales | 40,000.00 | 434,009.75 | 7,024.77 | 347,872.04 | -2,850.56 | -2,120.85 | | Yunnan Tongwei | Associate | Polysilicon production and sales | 560,000.00 | 1,811,359.99 | 587,362.49 | 71,983.28 | -118,947.93 | -101,850.03 | - During the reporting period, the company newly invested in 33 subsidiaries, including PT Future Solar Tech Energy, disposed of 4 power station project companies, and deregistered Alashan Jingmeng New Energy Co., Ltd[75] Other Significant Disclosures The company faces significant risks from industry policies, global operations, technological iteration, and supply-demand imbalance, actively implementing a "Quality Improvement, Efficiency Enhancement, and Return" action plan through product leadership, governance optimization, executive performance enhancement, and investor communication Key Risk Warnings The company faces risks from fluctuating PV market policies, rising global trade protectionism, rapid technological iteration, and industry overcapacity leading to supply-demand imbalance, which it addresses through market insights, localized strategies, increased R&D, and operational efficiency - Industry policy risk: Changes in national energy policies may lead to fluctuations in PV industry policies, affecting installation demand[76] - Globalization operation risk: Trade protectionism, tariff barriers, and geopolitical changes increase risks for overseas investment and market expansion[78] - Technology iteration risk: The PV industry experiences rapid technological iteration and high investment, posing a risk of market obsolescence[79] - Industry supply-demand imbalance risk: Large-scale disorderly expansion of production capacity leads to price declines across the industry chain, resulting in systemic losses for the entire industry[80] Progress of Quality Improvement, Efficiency Enhancement, and Return Action Plan The company actively implemented its "Quality Improvement, Efficiency Enhancement, and Return" action plan by building differentiated BC technology, optimizing governance (revising nearly 30 systems, abolishing the supervisory board, completing board re-election), enhancing executive performance (Chairman Zhong Baoshen increased shareholding by 86.94 million yuan), and strengthening investor communication (establishing a "Market Value Management System") - The company continuously refined its governance system, revising and formulating nearly 30 corporate governance policies, abolishing the supervisory board, and completing the re-election of the board of directors[83] - Chairman Zhong Baoshen and founder/Central Research Institute Dean/CTO Li Zhenguo did not receive remuneration from the company in H1[85] - Chairman Zhong Baoshen actively implemented his share increase plan, having cumulatively increased his shareholding by 5,403,000 shares with an amount of 86.9404 million yuan by the end of the reporting period, achieving approximately 87% of the planned completion[85][86] - The company specifically formulated the "Market Value Management System" and strengthened investor communication through performance briefings, broker strategy meetings, conference calls, and on-site surveys[87] Corporate Governance, Environment, and Society Covers changes in directors and senior management, profit distribution plans, environmental information disclosure, and contributions to rural revitalization and social responsibility Changes in Directors, Supervisors, and Senior Management Li Zhenguo resigned as director, general manager, and legal representative to focus on R&D, while Chairman Zhong Baoshen was appointed general manager, and the board re-election was completed with new directors Yin Jian'an, Li Shuxuan, and Zhou Zhe - Mr. Li Zhenguo resigned from his positions as director, general manager, and legal representative of the company to focus on the company's R&D and technology management work[89] - The company appointed Chairman Mr. Zhong Baoshen to concurrently serve as the company's general manager[89] - The company completed the re-election of the board of directors, with the Sixth Board of Directors consisting of 9 directors, including Yin Jian'an, Li Shuxuan, and Zhou Zhe as newly appointed directors[90] Profit Distribution Plan The board of directors' profit distribution plan or capital reserve to share capital increase plan for the reporting period is not applicable - Profit distribution plan or capital reserve to share capital increase plan for the current reporting period: Not applicable[6] - Whether to distribute or increase: No[91] Environmental Information Disclosure The company and 15 major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with query indexes provided for their respective environmental information disclosure reports - Number of enterprises included in the list of enterprises required to disclose environmental information by law: 15[92] - The environmental information disclosure reports of the company and its subsidiaries can be queried through the respective provincial enterprise environmental information disclosure systems[92][93] Rural Revitalization and Social Responsibility The company continued to support national rural revitalization strategies by promoting "PV+" projects in Shaanxi, donating to Jingtai County Red Cross in Gansu, and providing 420kW PV modules to Longhuai Village in Lingyun County, Guangxi, for infrastructure and village-level PV power stations - The company continues to promote the "PV+" project in thousands of villages and households in Shaanxi Province, empowering rural revitalization through green electricity[93] - Subsidiary LONGi Leye donated to the Jingtai County Red Cross in Gansu Province for infrastructure construction in Jingtai County[93] - Subsidiary LONGi Leye donated 420kW of PV modules to Longhuai Village in Lingyun County, Guangxi, to support the construction of village-level PV power stations[93] Significant Matters Details the fulfillment of commitments, integrity status, significant related party transactions, and the execution of major contracts and investment agreements Fulfillment of Commitments Commitments made by controlling shareholders and actual controllers Li Zhenguo, Li Xiyan, and their concerted party Li Chun'an before IPO, regarding resolving horizontal competition, related party transactions, and concerted actions, were strictly fulfilled during the reporting period - The commitments made by controlling shareholders and actual controllers Li Zhenguo, Li Xiyan, and their concerted party Li Chun'an regarding resolving horizontal competition are long-term effective and have been strictly fulfilled[95] - The commitments made by controlling shareholders and actual controllers Li Zhenguo, Li Xiyan, and their concerted party Li Chun'an regarding resolving related party transactions are long-term effective and have been strictly fulfilled[96][97] - The commitments made by controlling shareholders and actual controllers Li Zhenguo, Li Xiyan, and their concerted party Li Chun'an regarding concerted actions are effective during their shareholding period and have been strictly fulfilled[97] Integrity Status During the reporting period, the company, its controlling shareholders, and actual controllers had no unfulfilled effective court judgments or large overdue debts, maintaining a good integrity status - During the reporting period, the company, its controlling shareholders, and actual controllers had no unfulfilled effective court judgments or large overdue debts[99] Significant Related Party Transactions The company engaged in daily related party transactions with Liancheng CNC and its subsidiaries, LONGi Electromagnetic, Sentai Co., Ltd. and its subsidiaries, involving procurement of goods and services, product sales, and auxiliary materials, with total contract value of 1.005 billion yuan in H1 2025 2025 H1 Daily Related Party Transaction Contract Signing Status (Unit: 10,000 yuan) | Related Party Transaction Category | Related Party | 2025 Estimated Related Contract Amount (incl. tax) | 2025 H1 Signed Related Transaction Contract Amount (incl. tax) | | :--- | :--- | :--- | :--- | | Purchase of Goods and Services | Liancheng CNC and its subsidiaries | 191,934 | 74,288.81 | | Purchase of Goods and Services | LONGi Electromagnetic | 7 | 1.17 | | Purchase of Goods and Services | Sentai Co., Ltd. and its subsidiaries | 3,000 | 230.21 | | Sale of Products or Auxiliary Materials | Liancheng CNC and its subsidiaries | 500 | 171.40 | | Sale of Products or Auxiliary Materials | Sentai Co., Ltd. and its subsidiaries | 61,558 | 25,824.96 | | Sale of Products or Auxiliary Materials | Provision of Services | 0 | 3.91 | | Total | | 256,999 | 100,520.45 | - Sentai Co., Ltd. became a related party of the company from March 21, 2025, and the company has established a long-term strategic cooperation with it in the BIPV business sector[100] Fulfillment of Major Contracts The company executed multiple significant guarantees totaling 24.072 billion yuan for associates and subsidiaries, disclosed the execution status of silicon material and glass procurement framework contracts, and provided updates on major investment projects in Ordos, Xixian New Area, and Tongchuan Significant Guarantees The company's total external guarantees amounted to 24.072 billion yuan, representing 39.53% of its net assets, primarily for project loans, bank guarantees, and supply chain finance for associates Tongxin LONGi, LONGi Tianhua, and its subsidiaries Company Guarantee Total Amount (Unit: 10,000 yuan) | Indicator | Amount | | :--- | :--- | | Total guarantee amount incurred during the reporting period (excluding guarantees for subsidiaries) | 500 | | Total guarantee balance at the end of the reporting period (A) (excluding guarantees for subsidiaries) | 35,554 | | Total guarantee amount incurred for subsidiaries during the reporting period | 983,962.77 | | Total guarantee balance for subsidiaries at the end of the reporting period (B) | 2,371,672.79 | | Total Guarantee Amount (A+B) | 2,407,226.79 | | Percentage of total guarantee amount to company's net assets (%) | 39.53 | | Debt guarantee amount provided directly or indirectly for guaranteed parties with asset-liability ratio exceeding 70% (D) | 2,261,969.25 | - The company provided several joint liability guarantees for long-term loans to its associate Tongxin LONGi, totaling 271.46 million yuan[109][110][111][112][113][114][115][116][117][118][119][120][121][122][123][124][125][126][127][128][129][130][131][132][133][134][135][136][137][138][139][140][141][142][143][144][145][146][147][148][149][150][151][152][153][154][155][156][157][158][159][160][161][162][163][164][165][166][167][168][169][170][171][172][173][174][175][176][177][178][179][180][181][182][183][184][185][186][187][188][189][190][191][192][193][194][195][196][197][198][199][200][201][202][203][204][205][206][207][208][209][210][211][212][213][214][215][216][217][218][219][220][221][222][223][224][225][226][227][228][229][230][231][232][233][234][235][236][237][238][239][240][241][242][243][244][245][246][247][248][249][250][251][252][253][254][255][256][257][258][259][260][261][262][263][264][265][266] Other Major Contracts and Investment Agreements The company disclosed long-term framework procurement contracts with silicon material and glass suppliers, and progress on major investment agreements in Ordos, Heshan, Xixian New Area, Tongchuan, and Xi'an, with Ordos silicon rod capacity reaching 32 GW and Xixian New Area BC cell project commencing production Disclosed Major Daily Operating Contracts | No. | Contract Content | Contract Quantity | Signing Date | Execution Progress as of Reporting Period-end | | :--- | :--- | :--- | :--- | :--- | | 1 | Silicon Material Procurement Framework Contract | 266,500 tons | December 14, 2020 | In execution | | 2 | Silicon Material Procurement Framework Contract | 124,800 tons | August 18, 2020 | In execution | | 3 | Silicon Material Procurement Framework Contract | 251,280 tons | November 30, 2022 | Agreement in execution, no procurement in H1 2025 due to price disagreement | | 4 | Glass Procurement Framework Contract | / | July 31, 2020 | Expired and terminated at the end of July 2025 | | 5 | Glass Procurement Framework Contract | No less than 250 million square meters | April 20, 2021 | Counterparty failed to meet agreed supply conditions, parties will negotiate termination | | 6 | Glass Procurement Framework Contract | No less than 35% of LONGi Leye's estimated annual demand | August 9, 2021 | In execution | Major Investment Agreement Status | No. | Investment Target | Project Progress | Investment Agreement Signing Date | | :--- | :--- | :--- | :--- | | 1 | Ordos Annual 46GW Monocrystalline Silicon Rod and Wafer Project, 30GW High-Efficiency Monocrystalline Cell Project, and 5GW High-Efficiency PV Module Project | Silicon rod capacity of 32GW has commenced production, other capacities are progressing based on market conditions; silicon wafer, cell, and module projects are all in production. | March 12, 2022; August 14, 2022 | | 2 | Heshan Annual 10GW Monocrystalline Module Project | Investment scale adjusted to 3GW based on market conditions, currently in production. | November 21, 2022 | | 3 | Shaanxi Xixian New Area Annual 100GW Monocrystalline Wafer Project and Annual 50GW Monocrystalline Cell Project | Wafer project temporarily suspended; Phase I 12.5GW cell project under construction, first phase capacity gradually commenced production in Q2 2025. | January 17, 2023 | | 4 | Tongchuan Annual 12GW Monocrystalline Cell Project | Project under construction, first phase capacity gradually commenced production in Q2 2025. | April 8, 2023 | | 5 | Xi'an Annual 20GW Monocrystalline Silicon Rod, 24GW Monocrystalline Cell, and Supporting Projects | Silicon rod project temporarily suspended; Phase I Weibei New City 12GW cell project under construction, first phase capacity expected to gradually commence production in Q3 2025. | June 6, 2023 | Use of Raised Funds The company raised funds through rights issue and convertible bonds, with cumulative investment of 12.343 billion yuan by the end of the reporting period, and a change in use of 1.08 billion yuan from the Wuhu (Phase II) module project to the Tongchuan LONGi 12GW high-efficiency BC cell project to accelerate advanced BC cell capacity Overall Use of Raised Funds The company's total net raised funds from rights issue and convertible bonds amounted to 15.749 billion yuan, with cumulative investment of 12.343 billion yuan by the end of the reporting period, and no over-raised funds Overall Use of Raised Funds (Unit: 10,000 yuan) | Source of Raised Funds | Date Funds Received | Total Raised Funds | Net Raised Funds (1) | Total Investment Committed in Prospectus or Offering Document (2) | Cumulative Raised Funds Invested as of Reporting Period-end (4) | Cumulative Raised Funds Investment Progress (%) (6)=(4)/(1) | Amount Invested in Current Year (8) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other | April 17, 2019 | 387,540.05 | 382,801.72 | 390,000.00 | 323,136.35 | 84.41 | 7,884.87 | | Issuance of Convertible Bonds | August 6, 2020 | 500,000.00 | 495,548.25 | 500,000.00 | 453,241.59 | 91.46 | 11,771.40 | | Issuance of Convertible Bonds | January 11, 2022 | 700,000.00 | 696,531.22 | 700,000.00 | 457,909.29 | 65.74 | 31,058.51 | | Total | / | 1,587,540.05 | 1,574,881.19 | 1,590,000.00 | 1,234,287.23 | / | 50,714.78 | - The company's raised funds do not include any over-raised funds[118] Changes or Termination of Raised Fund Investment Projects The company reallocated 1.08 billion yuan from the Wuhu (Phase II) 15GW monocrystalline module project to the Tongchuan LONGi 12GW high-efficiency BC cell project to accelerate advanced BC cell capacity construction and expand its leading edge Changes in Raised Fund Investment Projects (Unit: 10,000 yuan) | Original Project Name | Change Date (First Announcement Disclosure Date) | Change Type | Total Raised Funds Investment Amount Before Change/Termination | Raised Funds Invested Before Change/Termination | New Project Name | Reason for Change/Termination | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wuhu (Phase II) Annual 15GW Monocrystalline Module Project | May 27, 2025 | Project Cancellation | 108,000.00 | 0 | Tongchuan LONGi Annual 12GW High-Efficiency Monocrystalline Cell Project | Considering the maturity of BC cell technology commercialization and mass production processes, there is a need to accelerate the construction of advanced BC cell capacity to expand the company's leading edge in advanced capacity. | Share Changes and Shareholder Information Details changes in share capital, shareholder structure, and shareholding changes of directors, supervisors, and senior management Share Capital Changes During the reporting period, the company's total share capital increased by 2,242 shares due to "LONGi 22 Convertible Bonds" conversion, reaching 7,578,050,192 shares, with minimal impact on per-share financial indicators Share Change Table (Unit: shares) | | Quantity Before This Change | Percentage Before This Change (%) | Increase/Decrease in This Change (Net) | Quantity After This Change | Percentage After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 7,546 | 0.0001 | 0 | 7,546 | 0.0001 | | II. Unrestricted Tradable Shares | 7,578,040,404 | 99.9999 | 2,242 | 7,578,042,646 | 99.9999 | | III. Total Shares | 7,578,047,950 | 100 | 2,242 | 7,578,050,192 | 100 | - The company's publicly issued convertible corporate bonds, "LONGi 22 Convertible Bonds," entered the conversion period on July 11, 2022, with a cumulative conversion of 2,242 shares during the reporting period[129] - Given the small number of share changes, the impact on the company's earnings per share and net assets per share is minimal[130] Shareholder Information As of the end of the reporting period, the company had 742,062 common shareholders, with Li Zhenguo as the largest shareholder (14.08%), followed by Hong Kong Securities Clearing Company Limited (5.62%) and HHLR Management Limited - China Value Fund (5.43%), and Li Zhenguo, Li Xiyan, and Li Chun'an acting in concert - Total number of common shareholders at the end of the reporting period: 742,062 households[131] Top Ten Shareholders' Shareholding Status (as of Reporting Period-end) | Shareholder Name | Number of Shares Held at Period-end (shares) | Percentage (%) | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | | Li Zhenguo | 1,067,218,173 | 14.08 | Pledged | 235,000,000 | | Hong Kong Securities Clearing Company Limited | 425,679,689 | 5.62 | Unrestricted | | | HHLR Management Limited - China Value Fund (Exchange) | 411,460,085 | 5.43 | Unrestricted | | | Li Xiyan | 380,568,860 | 5.02 | Unrestricted | | | Li Chun'an | 160,143,858 | 2.11 | Unrestricted | | | Industrial and Commercial Bank of China - SSE 50 ETF | 118,939,081 | 1.57 | Unrestricted | | | Zhong Baoshen | 110,051,106 | 1.45 | Unrestricted | | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | 108,014,240 | 1.43 | Unrestricted | | | Central Huijin Asset Management Co., Ltd. | 90,246,278 | 1.19 | Unrestricted | | | China Construction Bank Co., Ltd. - E Fund CSI 300 ETF Initiated Fund | 77,004,656 | 1.02 | Unrestricted | | - Mr. Li Zhenguo, Ms. Li Xiyan, and Mr. Li Chun'an are concerted parties[135] Changes in Shareholding of Directors, Supervisors, and Senior Management Chairman and General Manager Zhong Baoshen increased his shareholding by 5,403,000 shares during the reporting period, reaching 110,051,106 shares, as part of his share increase plan Changes in Shareholding of Directors and Senior Management (Unit: shares) | Name | Position | Shares Held at Beginning of Period | Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhong Baoshen | Chairman and General Manager | 104,648,106 | 110,051,106 | 5,403,000 | Implementation of company share increase plan | Bond-Related Information Provides an overview of the company's convertible corporate bonds, including issuance, holders, changes, conversion status, price adjustments, and debt and credit status Convertible Corporate Bonds The company issued 7 billion yuan of "LONGi 22 Convertible Bonds" on January 5, 2022, with a 6-year term; as of the reporting period end, 76,650 shares were converted, representing 0.001% of total shares, with a current conversion price of 17.50 yuan/share, and the company maintains an AAA credit rating with a stable outlook Overview of Convertible Bond Issuance - The company publicly issued 70 million convertible bonds on January 5, 2022, each with a face value of 100 yuan, totaling 7 billion yuan, with a term of 6 years[141] - The bond abbreviation is "LONGi 22 Convertible Bonds," bond code "113053," listed and traded on the Shanghai Stock Exchange from February 17, 2022[141] Convertible Bond Holders and Guarantors in Reporting Period - Number of convertible bond holders at period-end: 30,188 households[142] - The company's convertible bonds have no guarantors[142] Top Ten Convertible Bond Holders (as of Reporting Period-end) | Convertible Corporate Bond Holder Name | Amount Held at Period-end (yuan) | Holding Ratio (%) | | :--- | :--- | :--- | | Li Zhenguo | 984,458,000 | 14.07 | | Central Depository and Clearing System Bond Repurchase Pledge Special Account (Bank of China) | 612,277,000 | 8.75 | | Li Xiyan | 351,483,000 | 5.02 | | Central Depository and Clearing System Bond Repurchase Pledge Special Account (China Construction Bank) | 319,391,000 | 4.57 | | China Merchants Bank Co., Ltd. - Boshi CSI Convertible Bond and Exchangeable Bond ETF | 308,100,000 | 4.40 | | Central Depository and Clearing System Bond Repurchase Pledge Special Account (Industrial and Commercial Bank of China) | 235,029,000 | 3.36 | | Central Depository and Clearing System Bond Repurchase Pledge Special Account (China Merchants Bank Co., Ltd.) | 233,411,000 | 3.34 | | Bank of China Co., Ltd. - GF Juxin Bond Fund | 202,783,000 | 2.90 | | Bank of Beijing Co., Ltd. - Invesco Great Wall Jingyi Dual-Benefit Bond Fund | 166,965,000 | 2.39 | | ICBC Credit Suisse Tianyi Mixed Pension Product - Industrial and Commercial Bank of China Co., Ltd. | 145,270,000 | 2.08 | Changes in Convertible Bonds in Reporting Period Convertible Corporate Bond Changes (Unit: yuan) | Convertible Corporate Bond Name | Before This Change | Increase/Decrease in This Change (Conversion) | After This Change | | :--- | :--- | :--- | :--- | | LONGi 22 Convertible Bonds | 6,994,993,000 | 47,000 | 6,994,946,000 | Cumulative Conversion Status in Reporting Period - Amount converted in the reporting period: 47,000 yuan; Number of shares converted in the reporting period: 2,242 shares[145] - Cumulative number of shares converted: 76,650 shares, accounting for 0.001% of the company's total shares issued before conversion[145] - Amount not yet converted: 6,994,946,000 yuan, accounting for 99.93% of the total convertible bond issuance[145] Convertible Price Adjustments - The conversion price of "LONGi 22 Convertible Bonds" has undergone multiple adjustments, from an initial 82.65 yuan/share to the latest 17.50 yuan/share[147][148] - The most recent adjustment was due to the company's share price triggering the downward revision clause, with the conversion price revised downwards from 58.28 yuan/share to 17.50 yuan/share on March 11, 2025[148] Debt and Credit Status and Future Repayment Arrangements - As of the end of this reporting period, the company's consolidated asset-liability ratio was 60.72%, indicating a reasonable asset-liability structure[149] - China Lianhe Credit Rating Co., Ltd. maintained the company's long-term corporate credit rating at AAA and the credit rating of "LONGi 22 Convertible Bonds" at AAA, with a stable outlook[149] - The company's main business is stable, its financial condition is good, and it has strong debt repayment capabilities[149] Financial Report Presents the company's financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with company overview, accounting policies, taxation, and detailed notes Financial Statements This section includes LONGi Green Energy Technology Co., Ltd.'s consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity as of June 30, 2025, comprehensively presenting the company's financial position, operating results, and cash flows for the first half of the year Consolidated Balance Sheet Presents the consolidated financial position of the company and its subsidiaries as of June 30, 2025, detailing assets, liabilities, and owners' equity Consolidated Balance Sheet Key Data (Unit: yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 49,303,447,169.09 | 53,156,782,586.47 | | Trading Financial Assets | 302,827,023.20 | 20,283,837.22 | | Accounts Receivable | 11,908,490,906.33 | 13,940,747,611.88 | | Inventories | 14,459,934,052.84 | 13,382,209,109.10 | | Fixed Assets | 35,089,797,666.81 | 36,201,178,790.21 | | Construction in Progress | 7,436,645,998.78 | 4,406,371,341.74 | | Total Assets | 149,604,304,410.28 | 152,841,364,930.92 | | Notes Payable | 6,268,167,918.84 | 17,227,060,108.11 | | Accounts Payable | 28,305,056,816.12 | 19,845,892,906.85 | | Total Liabilities | 90,845,679,608.24 | 91,443,923,169.18 | | Total Owners' Equity Attributable to Parent Company | 58,274,955,479.58 | 60,892,076,685.39 | Parent Company Balance Sheet Presents the financial position of the parent company as of June 30, 2025, detailing its assets, liabilities, and owners' equity Parent Company Balance Sheet Key Data (Unit: yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 28,466,438,595.57 | 30,708,308,792.43 | | Long-term Equity Investments | 45,213,995,969.64 | 42,964,205,418.25 | | Total Assets | 88,525,269,628.77 | 82,563,514,716.98 | | Notes Payable | 239,385,284.91 | 3,339,775,569.00 | | Accounts Payable | 4,995,205,120.97 | 3,431,154,878.57 | | Total Liabilities | 29,973,407,892.85 | 27,834,852,204.27 | | Total Owners' Equity | 58,551,861,735.92 | 54,728,662,512.71 | Consolidated Income Statement Presents the consolidated operating results of the company and its subsidiaries for the first half of 2025, including revenue, costs, and net profit Consolidated Income Statement Key Data (Unit: yuan) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Operating Revenue | 32,813,146,398.68 | 38,528,702,860.54 | | Total Operating Costs | 35,741,458,789.50 | 39,388,917,713.69 | | Total Profit | -3,019,521,987.00 | -6,402,323,885.48 | | Net Profit | -2,598,193,935.31 | -5,244,681,903.05 | | Net Profit Attributable to Parent Company Shareholders | -2,569,358,351.05 | -5,230,631,522.98 | | Basic Earnings Per Share (yuan/share) | -0.34 | -0.69 | Parent Company Income Statement Presents the operating results of the parent company for the first half of 2025, including revenue, costs, and net profit Parent Company Income Statement Key Data (Unit: yuan) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Operating Revenue | 8,775,092,789.15 | 10,089,372,107.97 | | Operating Costs | 8,888,651,558.16 | 9,763,479,772.76 | | Total Profit | 3,741,260,575.75 | -838,779,693.57 | | Net Profit | 3,851,816,553.89 | -670,585,258.52 | Consolidated Cash Flow Statement Presents the consolidated cash inflows and outflows from operating, investing, and financing activities for the company and its subsidiaries during the first half of 2025 Consolidated Cash Flow Statement Key Data (Unit: yuan) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -484,332,299.83 | -6,413,098,864.02 | | Net Cash Flow from Investing Activities | -4,346,462,801.34 | -3,781,643,379.64 | | Net Cash Flow from Financing Activities | 1,036,163,832.37 | 7,817,485,804.04 | | Net Increase in Cash and Cash Equivalents | -3,296,422,594.20 | -2,279,284,280.79 | | Cash and Cash Equivalents at Period-end | 47,651,600,607.07 | 52,142,839,978.96 | Parent Company Cash Flow Statement Presents the cash inflows and outflows from operating, investing, and financing activities for the parent company during the first half of 2025 Parent Company Cash Flow Statement Key Data (Unit: yuan) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -2,426,715,060.44 | -14,306,763,628.36 | | Net Cash Flow from Investing Activities | 1,527,529,826.81 | -2,473,640,515.67 | | Net Cash Flow from Financing Activities | -1,606,770,284.20 | 5,989,054,808.39 | | Net Increase in Cash and Cash Equivalents | -2,516,627,070.84 | -10,790,694,042.91 | | Cash and Cash Equivalents at Period-end | 27,553,359,615.47 | 26,291,041,745.85 | Consolidated Statement of Changes in Owners' Equity Presents the changes in consolidated owners' equity for the company and its subsidiaries during the first half of 2025 Consolidated Statement of Changes in Owners' Equity Key Data (Unit: yuan) | Item | 2025 H1 Total Owners' Equity Attributable to Parent Company | 2024 H1 Total Owners' Equity Attributable to Parent Company | | :--- | :--- | :--- | | II. Balance at Beginning of Current Year | 60,892,076,685.39 | 70,463,647,725.45 | | III. Amount of Increase/Decrease in Current Period (Decrease indicated by "-") | -2,617,121,205.81 | -6,083,487,985.84 | | IV. Balance at End of Current Period | 58,274,955,479.58 | 64,380,159,739.61 | Parent Company Statement of Changes in Owners' Equity Presents the changes in parent company owners' equity during the first half of 2025 Parent Company Statement of Changes in Owners' Equity Key Data (Unit: yuan) | Item | 2025 H1 Total Owners' Equity | 2024 H1 Total Owners' Equity | | :--- | :--- | :--- | | II. Balance at Beginning of Current Year | 54,728,662,512.71 | 53,148,933,219.31 | | III. Amount of Increase/Decrease in Current Period (Decrease indicated by "-") | 3,823,199,223.21 | -1,867,991,065.95 | | IV. Balance at End of Current Period | 58,551,861,735.92 | 51,280,942,153.36 | Company Overview LONGi Green Energy Technology Co., Ltd. was established on February 14, 2000, listed on the Shanghai Stock Exchange on April 11, 2012, primarily engaged in R&D, production, and sales of monocrystalline silicon rods, wafers, cells, and modules, and PV power station development and operation - The company was established on February 14, 2000, and listed on the Shanghai Stock Exchange on April 11, 2012[187] - The company's main business operations include the R&D, production, and sales of monocrystalline silicon rods and wafers, cells and modules, as well as the development and operation of PV power stations[187] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the "Information Disclosure Compilation Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" by the China Securities Regulatory Commission, on a going concern basis - These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" and the "Information Disclosure Compilation Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" issued by the China Securities Regulatory Commission[188] - These financial statements are prepared on a going concern basis[189] Significant Accounting Policies and Estimates The Group determines specific accounting policies and estimates based on its production and operation characteristics, covering financial instruments, inventories, investment properties, depreciation of fixed assets, amortization of intangible assets, impairment of long-term assets, and revenue recognition, with a policy change during the reporting period due to CSRC regulations Changes in Accounting Policies The company changed its accounting policy by recognizing deferred income tax liabilities for taxable temporary differences related to convertible bonds and retrospectively adjusting comparative financial statements, following the CSRC's "Regulatory Rules Application Guidance - Accounting Category No. 5," which increased deferred income tax liabilities by 28.66 million yuan and retained earnings by 117.78 million yuan as of December 31, 2024 - The CSRC issued "Regulatory Rules Application Guidance - Accounting Category No. 5," clarifying that taxable temporary differences arising from the issuance of convertible bonds by enterprises do not meet the conditions for exemption from deferred income tax liability recognition, and deferred income tax liabilities should be recognized with their impact included in owners' equity[294] Impact of Accounting Policy Change on Financial Statement Items (Unit: yuan) | Affected Financial Statement Item Name | Impact Amount on December 31, 2024 | Impact Amount on January 1, 2024 | | :--- | :--- | :--- | | Deferred Income Tax Liabilities | 28,663,543.15 | 28,663,543.15 | | Deferred Income Tax Assets | -3,237,437.13 | | | Other Equity Instruments | -82,163,299.49 | -82,166,341.70 | | Capital Reserve | -38,849,606.34 | -38,846,564.13 | | Retained Earnings | 117,775,468.70 | 92,349,362.68 | | Income Tax Expense (Jan-Jun 2024) | -12,713,154.97 | | Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge, with the company and eligible subsidiaries enjoying multiple corporate income tax preferential policies, such as 15% rates for Western Development, high-tech enterprises, small and micro enterprises, and "three-exemptions-three-halves" for public infrastructure projects Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Value Added | 13%, 9%, and 6% etc. | | Urban Maintenance and Construction Tax | VAT Paid | 7%, 5%, a