大元泵业(603757) - 2025 Q2 - 季度财报

Important Notice This section provides critical information regarding the half-year report, including statements from management, profit distribution plans, risk warnings, and related party matters Board of Directors and Management Statement The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the half-year report, which remains unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the half-year report[5] - This half-year report is unaudited[7] Profit Distribution Plan The board of directors approved the 2025 half-year profit distribution plan, proposing a cash dividend of 5 yuan (tax inclusive) per 10 shares, representing 81.68% of the net profit attributable to shareholders 2025 Half-Year Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Cash dividend per 10 shares (tax inclusive) | 5 yuan | | Total proposed cash dividend (tax inclusive) | 82,373,764.50 yuan | | Percentage of net profit attributable to listed company shareholders | 81.68% | - This profit distribution plan is subject to approval by the company's general meeting of shareholders[8] Risk Statement Forward-looking statements in this report, such as future plans and development strategies, do not constitute a substantive commitment to investors, who should be aware of investment risks - Forward-looking statements in this report, including future plans and development strategies, do not constitute a substantive commitment to investors[9] Related Party Fund Occupation and Guarantees During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties, nor any external guarantees in violation of decision-making procedures - There was no non-operating fund occupation by controlling shareholders or other related parties[10] - There were no external guarantees provided in violation of prescribed decision-making procedures[11] Significant Risk Warning The company has elaborated on potential risks in "Section III Management Discussion and Analysis," urging investors to pay attention - Potential risks faced by the company are specifically elaborated in "Section III Management Discussion and Analysis," "V. Other Disclosures," "(I) Potential Risks"[12] Section I Definitions This section defines common terms used in the report, including company names, regulatory bodies, subsidiaries, key personnel, reporting periods, and currency units, to ensure clear understanding - Unless otherwise specified, the following terms in this report have the meanings as follows: China Securities Regulatory Commission, Shanghai Stock Exchange, Company, This Company, Dayuan Pump Industry, Hefei Xinhu, Anhui Xinhu, Henan Xinhu, Xinhu New Energy, Zhejiang Leike, Convertible Bonds, Dayuan Convertible Bonds, Controlling Shareholder, Actual Controller, Reporting Period, Same Period Last Year, Yuan, Ten Thousand Yuan, Hundred Million Yuan, Company Law, Securities Law[17] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, stock profile, and key financial performance metrics for the reporting period I. Company Information The company's Chinese name is Zhejiang Dayuan Pumps Industry Co., Ltd., abbreviated as Dayuan Pumps Industry, with Han Yuanping as its legal representative - The company's Chinese name is Zhejiang Dayuan Pumps Industry Co., Ltd., and its Chinese abbreviation is Dayuan Pumps Industry[19] - The company's legal representative is Han Yuanping[19] II. Contact Person and Information The company's Board Secretary is Huang Linxiang, and the Securities Affairs Representative is Zhang Junwei, with disclosed contact address, phone, fax, and email - The Board Secretary is Huang Linxiang, and the Securities Affairs Representative is Zhang Junwei[20] - The contact address is No. 689 Xicheng Road, Zeguo Town, Wenling City, Taizhou City, Zhejiang Province, telephone 0576-86441299, fax 0576-86425218, email zhengquan@dayuan.com[20] III. Brief Introduction to Changes in Basic Information The company's registered address changed to No. 689 Xicheng Road, Zeguo Town, Wenling City, Taizhou City, Zhejiang Province on September 18, 2024, with no other changes during the reporting period - The company's registered address changed from "Danya Industrial Zone, Zeguo Town, Wenling City, Zhejiang Province" to "No. 689 Xicheng Road, Zeguo Town, Wenling City, Taizhou City, Zhejiang Province," with the business license change completed on September 18, 2024[21] - There were no other changes during the reporting period[21] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations The company's designated information disclosure newspapers are "Shanghai Securities News," "China Securities Journal," and "Securities Times," with the half-year report published on www.sse.com.cn, and documents kept at the company's securities department, all unchanged during the reporting period - The company's designated information disclosure newspapers are "Shanghai Securities News," "China Securities Journal," and "Securities Times," and the website address for publishing the half-year report is www.sse.com.cn[22](index=22&type=chunk) - The company's half-year report is kept at the company's securities department, with no changes during the reporting period[22] V. Company Stock Overview The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation Dayuan Pumps Industry and stock code 603757, unchanged during the reporting period - The company's stock type is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation Dayuan Pumps Industry and stock code 603757[23] - No changes during the reporting period[23] VII. Company's Key Accounting Data and Financial Indicators In H1 2025, the company's operating revenue increased by 14.55% year-on-year, but total profit and net profit attributable to parent company decreased by 28.33% and 27.99% respectively, mainly due to asset disposal gains in the prior year and increased depreciation and interest expenses this period. Net cash flow from operating activities increased by 90.19% 2025 Half-Year Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 964,603,955.75 yuan | 842,059,632.10 yuan | 14.55 | | Total Profit | 111,248,633.85 yuan | 155,217,952.60 yuan | -28.33 | | Net Profit Attributable to Listed Company Shareholders | 100,849,567.20 yuan | 140,043,134.65 yuan | -27.99 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | 93,009,292.43 yuan | 104,115,969.75 yuan | -10.67 | | Net Cash Flow from Operating Activities | 84,207,113.05 yuan | 44,275,912.34 yuan | 90.19 | 2025 Half-Year Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan／share) | 0.61 | 0.84 | -27.38 | | Diluted Earnings Per Share (yuan／share) | 0.60 | 0.79 | -24.05 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (yuan／share) | 0.56 | 0.63 | -11.11 | | Weighted Average Return on Net Assets (%) | 5.94 | 8.17 | Decrease of 2.23 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 5.48 | 6.08 | Decrease of 0.60 percentage points | - The decrease in total profit and net profit attributable to parent company was mainly due to significant asset disposal gains from factory property in the prior year, which were absent this period[25] - The decrease in net profit excluding non-recurring gains and losses was primarily due to a significant increase in fixed asset depreciation expenses after the new Wenling factory was capitalized and increased convertible bond interest expenses[26] - The increase in net cash flow from operating activities was mainly due to a significant increase in cash received from sales of goods this period[26] IX. Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 7,840,274.77 yuan, primarily comprising government grants, fair value changes in financial assets, and non-current asset disposal gains/losses 2025 Half-Year Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Non-current asset disposal gains and losses | 19,197.38 | | Government grants included in current profit and loss | 5,063,730.71 | | Gains and losses from changes in fair value of financial assets and liabilities and disposal gains and losses | 3,706,683.45 | | Other non-operating income and expenses | 210,583.58 | | Other non-recurring gains and losses as defined | 224,930.51 | | Less: Income tax impact | 1,360,591.69 | | Impact on minority interests (after tax) | 24,259.17 | | Total | 7,840,274.77 | Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's industry, main business, operating performance, core competitiveness, and potential risks during the reporting period I. Industry and Main Business Overview During the Reporting Period The company primarily engages in R&D, production, sales, and service of various pumps, serving as a globally renowned provider of civil water pumps and a leading domestic shielded pump enterprise, with no changes in its main business. Products are categorized into civil, commercial, and industrial, operating on make-to-stock and make-to-order models, with sales primarily through distribution and direct sales. The industry faces macroeconomic uncertainties, but sectors like data centers and energy maintain growth, which the company addresses through product innovation and market expansion - The company primarily engages in the research and development, production, sales, and provision of related services for various types of pumps, being a globally renowned brand provider of civil water pumps and a high-tech and leading enterprise in the domestic shielded pump industry[29] - During the reporting period, the company's main business remained unchanged[29] - The company's products are mainly divided into three business types: civil (agricultural pumps, household shielded pumps), commercial (vertical and horizontal multi-stage centrifugal pumps, liquid cooling pumps), and industrial (industrial pumps)[29] - Business Model: Procurement based on sales forecasts and inventory; production primarily make-to-stock for civil water pumps and make-to-order for shielded pumps; sales primarily through distribution for civil water pumps and direct sales for household shielded pumps, industrial shielded pumps, and liquid cooling pumps[39] - Key performance drivers include the vast global pump market, the trend of domestic market consolidation, improved policy environment, the company's first-mover brand advantage, and continuous strategic deployment in new products such as Leike Pumps and liquid cooling pumps[40] - In H1 2025, global macroeconomic uncertainties increased, with demand in investment-driven and interest-rate-sensitive industries under pressure, but domestic data centers, energy, and water conservancy sectors, benefiting from national policy investments, continued to grow[42][43] - The domestic market for household shielded pumps benefited from the peak period of "coal-to-gas" policy equipment replacement, home appliance trade-in subsidies, and retail market development; the export market stabilized and recovered after channel inventory destocking[44] - Liquid cooling pump products are applied in new energy vehicles, energy storage, computing power services, and wind power, with the rapid development of the liquid cooling industry being a significant trend, where core competitiveness lies in customization capabilities[46] - The industrial pump sector has high technical barriers, with the high-end market dominated by foreign brands, but long-term trends like "green transformation," "domestic substitution," and "industrial upgrading" are strengthening, indicating good development potential for domestic industrial pump enterprises[47][48] (I) Main Business The company's main business involves R&D, production, sales, and service of various pumps, including civil pumps for agriculture and home water circulation, commercial pumps for new energy vehicles and data centers, and industrial pumps for chemical, nuclear power, and aerospace, with no change in business type during the reporting period - The company primarily engages in the research and development, production, sales, and provision of related services for various types of pumps, being a globally renowned brand provider of civil water pumps and a high-tech and leading enterprise in the domestic shielded pump industry[29] - Products are mainly divided into three business types: civil (agricultural pumps, household shielded pumps), commercial (vertical and horizontal multi-stage centrifugal pumps, liquid cooling pumps), and industrial (industrial pumps)[29] (II) Main Products and Application Scenarios The company offers a wide range of products, including civil pumps for agricultural irrigation and household water, commercial pumps for industrial production and data centers, and industrial pumps for high-tech sectors like petrochemicals and nuclear power - Civil products include agricultural pumps (for agricultural irrigation, garden watering, livestock water, household water, deep well pumping) and household shielded pumps (for gas wall-hung boilers, heat pump main units, pipeline pumps)[33][34][35] - Commercial products include Leike commercial pumps (for industrial production, wind power liquid cooling, water management, construction projects, building water supply) and liquid cooling pumps (for hydrogen fuel cells, lithium battery new energy vehicle energy storage, computing power services, wind power, etc. cooling)[36] - Industrial products are applied in large-scale petroleum refining, nuclear power, chemical processes, fine chemicals, petrochemicals, absorption central air conditioning systems, liquid ammonia, Freon, CO2 refrigeration units, and other fields[37][38] (III) Business Model The company's business model remained largely unchanged, with procurement based on order forecasts and inventory, production primarily make-to-stock for civil pumps and make-to-order for shielded pumps, and sales mainly through distribution for civil pumps and direct sales for other products - Procurement model: Sales department forecasts orders, production department prepares plans, material control department develops and executes procurement plans, and maintains reasonable stock for general materials[39] - Production model: Civil water pumps are primarily make-to-stock, supplemented by make-to-order; shielded pumps are primarily make-to-order, supplemented by make-to-stock[39] - Sales model: Civil water pumps are primarily sold through distribution, supplemented by direct sales; household shielded pumps, industrial shielded pumps, and liquid cooling pumps primarily rely on direct sales[39] (IV) Key Performance Drivers The company's performance is driven by the vast global pump market, domestic market consolidation, its brand advantage, and continuous investment in new products like Leike Pumps and liquid cooling pumps, with future focus on organizational capability, technology, brand, and supply chain optimization - The global pump industry has a huge market size, and the trend of domestic market fragmentation consolidating is expected to strengthen the long-term sustainable development of excellent enterprises in the industry[40] - The company possesses a strong first-mover brand advantage and continuously increases its investment in new products, such as establishing Leike Pumps through a joint venture to address shortcomings in commercial mechanical pumps and entering the liquid cooling pump sector to seize the main theme of era growth[40] - The company will enhance its operational quality through increased organizational capability building, technology and brand investment, and supply chain optimization to drive sustainable future performance[41] (V) Industry Conditions and Trends In H1 2025, global macroeconomic uncertainties increased, impacting investment-driven sectors, but data centers and energy showed growth. Civil pump markets faced challenges, while household shielded pumps benefited from policy. Commercial mechanical pump markets contracted, but liquid cooling pumps saw rapid development, with customization as a core competency. Industrial pumps faced pressure in traditional areas but showed resilience in emerging sectors, with clear trends towards domestic substitution and high-end products - In H1 2025, global macroeconomic uncertainties increased, with demand in investment-driven and interest-rate-sensitive industries under pressure, but domestic data centers, energy, and water conservancy sectors, benefiting from national policy investments, continued to grow[42][43] - Civil series products (agricultural pumps, household shielded pumps) face challenges, but leading enterprises are increasing product upgrades, technological R&D, lean production, and automation transformation, with overseas market expansion becoming an important strategy[43] - The domestic market for household shielded pumps benefited from the peak period of "coal-to-gas" policy equipment replacement, home appliance trade-in subsidies, and retail market development; the export market stabilized and recovered after channel inventory destocking[44] - The overall market size for commercial mechanical pumps declined, but downstream customers' attitudes towards suppliers with differentiated supply capabilities changed, providing business opportunities for the company[45] - Liquid cooling pump products are applied in new energy vehicles, energy storage, computing power services, and wind power, with the rapid development of the liquid cooling industry, where core competitiveness lies in customization capabilities, and product barriers will continuously increase with accumulated experience[46] - In the industrial pump sector, traditional petrochemical industries are under pressure, but coal chemical, fine chemical, and other fields show significant resilience, with new energy, new materials, special chemicals, and other emerging industries developing rapidly, indicating good development potential for domestic industrial pump enterprises[47][48] II. Discussion and Analysis of Operations During the reporting period, the company expanded its revenue, with traditional businesses recovering and new businesses growing rapidly. The decline in non-recurring net profit was mainly due to increased depreciation from new factories and convertible bond interest. The company continues to focus on its main business, improving operational quality through supply chain integration, R&D investment, and channel optimization. Heat pump and liquid cooling temperature control businesses achieved high growth, with a focus on revenue growth, organizational synergy, factory upgrades, new product development, and market expansion in the second half - During the reporting period, the company achieved operating revenue of 965 million yuan, a year-on-year increase of 14.55%; net profit after deducting non-recurring gains and losses was 93 million yuan, a year-on-year decrease of 10.67%[48] - The decline in net profit after deducting non-recurring gains and losses was mainly due to increased fixed asset depreciation expenses after the Wenling new factory was completed in June 2024 and increased convertible bond interest expenses in H1 2025[48] - The company achieved cost reduction and efficiency improvement goals through measures such as integrating supply chain resources, promoting R&D and production standardization, increasing investment in new products and technologies, optimizing channel sales and service systems, and strengthening talent梯队建设[48] (I) Operating Performance During the Reporting Period The company's revenue increased by 14.55% year-on-year, while non-recurring net profit decreased by 10.67%. Dayuan agricultural pump business revenue saw a restorative growth of 17.6%, household shielded pump business revenue increased by 5.8%, with energy-saving pump products growing over 20%. Hefei Xinhu industrial pump business revenue grew over 20%. Leike commercial pump business revenue increased over 80%. Xinhu New Energy sector sales revenue grew over 110% Business Segment Revenue Growth (H1 2025) | Business Segment | H1 2025 Revenue (approx.) | YoY Growth (approx.) | | :--- | :--- | :--- | | Dayuan Agricultural Pumps | 340 million yuan | 17.6% | | Household Shielded Pumps | 360 million yuan | 5.8% | | Energy-saving Pump Products (sub-category of Household Shielded Pumps) | 150 million yuan | >20% | | Hefei Xinhu Industrial Pumps | 180 million yuan | >20% | | Leike Commercial Pumps | - | >80% | | Xinhu New Energy | - | >110% | - Domestic sales revenue for household shielded pumps slightly declined, while export sales revenue同比实现复苏[50] - Hefei Xinhu industrial pump business, relying on customized design capabilities and product technical reliability, achieved rapid growth in foreign trade and service markets[50] - Xinhu New Energy sector benefited from high growth in Leapmotor-related business and the expansion of new energy storage business[51] (II) Development of Key New Product Categories Heat pump supporting business sales revenue increased by approximately 55%, with export energy-saving products growing over 80%, benefiting from European market recovery. Liquid cooling temperature control business revenue increased by approximately 105%, driven by high growth in traditional liquid cooling for new energy vehicles, energy storage, and wind power, and a breakthrough in Bitmain mining machine computing power liquid cooling project. The company is accelerating R&D of high-power electronic shielded pumps and exploring new application scenarios Key New Product Category Business Growth (H1 2025) | Business Category | H1 2025 Sales Revenue (approx.) | YoY Growth (approx.) | | :--- | :--- | :--- | | Heat Pump Supporting Business | 43 million yuan | 55% | | Export Energy-saving Products (sub-category of Heat Pump Supporting) | 37 million yuan | >80% | | Liquid Cooling Temperature Control Business | 70 million yuan | 105% | | New Energy Vehicle Supporting Products (sub-category of Liquid Cooling Temperature Control) | 33 million yuan | 58.6% | - The liquid cooling temperature control business achieved a breakthrough from zero to one in the Bitmain mining machine computing power liquid cooling project and is jointly promoting the iteration of shielded liquid cooling solutions with downstream customers such as Invic and Vertiv Technology[54] - The company has completed batch supply of 7.5kw electronic shielded pump products and is accelerating the R&D of 11kw and higher power electronic shielded pump products, while also focusing on new application scenarios such as immersion liquid cooling, phase change liquid cooling, power supply equipment, high-power lidar systems, and consumer electronics[54][55] - The liquid cooling industry is still in its early stages of development, posing higher demands on the company's talent, technology, and management, thus the company will increase investment, focus on product core, deeply bind with leading temperature control enterprises, and accelerate its global expansion[56] (III) H2 Plans and Focus Areas In the second half, the company will maintain a revenue-oriented approach, improve organizational functions and synergy, advance lean transformation of the Wenling new factory and construction of the Hefei new factory, enhance standardization in R&D, production, and procurement, accelerate new agricultural pump product development and liquid cooling pump upgrades, implement differentiated business expansion strategies, and explore industry consolidation and M&A opportunities - Adhere to the full-year growth target guided by revenue, breaking it down to each operating entity, and optimizing the evaluation and assessment system[57] - Improve the functional system of the headquarters and the Pioneer Research Institute, establishing a normalized synergy mechanism across business segments[57] - Promote lean and automated transformation of the Wenling new factory, advance the construction and decoration progress of the Hefei new factory as planned, and explore the establishment of overseas outlets[57] - Increase the intensity of standardization transformation in R&D, production, and procurement, integrating the supply chain system at the procurement end to support cost reduction and efficiency improvement[57] - Accelerate the development and market promotion of new agricultural pump products, drive the iteration and upgrade of liquid cooling pump products, and improve comprehensive product system coverage[57] - Implement differentiated business expansion strategies, optimize domestic and international channels and service networks, enhance the reputation of proprietary brands, and create new competitive advantage products[57] - Continue to monitor opportunities for industry consolidation and external expansion, broadening the industrial layout[58] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in five key areas: R&D innovation, comprehensive competition, product quality, brand, and channels. It holds 599 patents, is recognized as a national "Little Giant" enterprise, and participates in setting industry standards. With a complete product line, extensive market presence, strict quality management, high brand recognition, and sound domestic and international sales channels - The company's core competitiveness includes R&D and innovation advantage, comprehensive competitive advantage, product quality advantage, brand advantage, and channel advantage[59][62][63][65][66] 1. R&D and Innovation Advantage As of June 30, 2025, the company holds 599 patents (84 invention patents), is recognized as a national "Little Giant" enterprise, and participates in multiple industry standard formulations. Its subsidiary, Hefei Xinhu, leads in shielded pump technology, meeting API685 standards and receiving a "2024 Mechanical Industry Science and Technology Award" Second Prize for Technological Progress - As of June 30, 2025, the company holds a total of 599 patents, including 84 domestic invention patents[59] - The company was selected as a national "Little Giant" enterprise in 2021 and has deeply participated in the formulation of multiple industry standards[60] - Subsidiary Hefei Xinhu is a leading enterprise in China's shielded pump industry, innovatively adopting a secondary pressure-bearing structure design that meets the American API685 standard[60] - The project "Development and Application of Integrated Environmental Control System for Large Megawatt Offshore Wind Turbines," in which Hefei Xinhu played a key role, won the Second Prize for Technological Progress in the "2024 Mechanical Industry Science and Technology Award"[61] 2. Comprehensive Competitive Advantage The company is a pump enterprise with a comprehensive product range and extensive market presence in the domestic industry, demonstrating strong horizontal expansion capabilities across civil, household, and industrial/commercial markets, laying a foundation for long-term specialized development - The company is currently one of the domestic industry companies with a relatively complete product range and extensive market layout in the pump industry[62] - The company's product line possesses strong horizontal business expansion capabilities, while also being strategically positioned in the civil water pump market, household pump market, and industrial and commercial markets, with balanced development across major product lines[62] - The downstream market size, relative to the company's annual revenue volume for relevant product lines, has tens to hundreds of times the expansion space, laying a foundation for the company's future long-term adherence to a specialized development strategy[62] 3. Product Quality Advantage The company is committed to improving production processes, product quality management, and cost control. Hefei Xinhu adheres to high-end manufacturing principles, assisted in drafting petrochemical Yipai Ke procurement standards, promoted the implementation of domestic shielded pump API685 standards, and established advanced R&D and testing facilities, effectively ensuring product quality stability and reliability - Since its establishment, the company has been committed to improving its production process level, product quality management level, and cost control capabilities[63] - Hefei Xinhu assisted in drafting the petrochemical Yipai Ke procurement standard, promoted the implementation of the domestic shielded pump API685 standard, and built advanced R&D and testing facilities such as a shielded motor testing center and high-temperature and high-pressure test rigs[63][64] 4. Brand Advantage With nearly 30 years of experience in pump products, the company's three major brands—"Dayuan," "Xinhu," and "Leike"—cover civil, commercial, and industrial applications, enjoying high brand recognition and reputation, and ranked 74th in China's brand value evaluation for mechanical equipment manufacturing - The company owns "Dayuan" and "Xinhu" two well-known water pump brands, and has newly established the "Leike" brand, with brands covering civil, commercial, and industrial application fields[65] - During the reporting period, the company was listed in China's Brand Value Evaluation Information Release, ranking 74th in the mechanical equipment manufacturing sector[65] 5. Channel Advantage The company has established a reputable and closely cooperative dealer network, with its domestic distribution system covering all provinces and extending into key counties. Overseas customers are spread across Europe, America, Asia, Africa, and Oceania, effectively diversifying single-market dependency risks - The company has developed and accumulated a group of reputable and closely cooperative dealers, with its domestic distribution system covering all provinces and, with the implementation of channel sinking strategies, extending into key counties[66] - The company's overseas customers cover Europe, America, Asia, Africa, and Oceania, and its comprehensive overseas sales channels effectively diversify the company's reliance on a single market[66] IV. Key Operating Performance During the Reporting Period During the reporting period, the company's operating revenue increased by 14.55%, primarily driven by significant growth in civil and commercial pump revenues. Operating costs, selling expenses, administrative expenses, and R&D expenses all increased, while financial expenses significantly rose due to increased convertible bond interest and reduced deposit interest. Net cash flow from operating activities and investing activities both increased significantly, as did net cash flow from financing activities 2025 Half-Year Financial Statement Item Change Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 964,603,955.75 | 842,059,632.10 | 14.55 | | Operating Cost | 704,340,449.56 | 585,166,375.70 | 20.37 | | Selling Expenses | 50,700,586.85 | 44,501,538.04 | 13.93 | | Administrative Expenses | 47,493,289.41 | 44,923,198.81 | 5.72 | | Financial Expenses | 4,177,945.34 | -6,884,402.72 | 160.69 | | R&D Expenses | 50,910,263.70 | 42,757,838.15 | 19.07 | | Net Cash Flow from Operating Activities | 84,207,113.05 | 44,275,912.34 | 90.19 | | Net Cash Flow from Investing Activities | 141,554,655.22 | -250,855,048.40 | 156.43 | | Net Cash Flow from Financing Activities | -26,982,792.34 | -199,861,892.90 | 86.50 | - Operating revenue increased year-on-year, mainly due to a significant year-on-year increase in civil and commercial pump revenues this period[67] - Financial expenses significantly increased year-on-year, mainly due to increased convertible bond interest expenses and reduced deposit interest income this period[68] - Net cash flow from investing activities significantly increased year-on-year, mainly due to an increase in the amount of matured wealth management products recovered this period[68] (I) Main Business Analysis The company's main business revenue increased by 14.55% year-on-year, driven by growth in civil and commercial pumps. Operating costs, selling, administrative, and R&D expenses all rose with business expansion, while financial expenses significantly increased due to higher convertible bond interest and lower deposit interest. Net cash flow from operating activities grew substantially, net cash flow from investing activities significantly improved due to matured wealth management products, and net cash flow from financing activities increased due to reduced dividend payments - Operating revenue increased by 14.55% year-on-year, primarily due to a significant year-on-year increase in civil and commercial pump revenues this period[67] - Operating cost increased by 20.37% year-on-year, mainly due to increased revenue, with costs increasing proportionally[67] - Financial expenses significantly increased by 160.69% year-on-year, mainly due to increased convertible bond interest expenses and reduced deposit interest income this period[68] - Net cash flow from operating activities significantly increased by 90.19% year-on-year, mainly due to a significant increase in cash received from sales of goods this period[68] - Net cash flow from investing activities significantly increased by 156.43% year-on-year, mainly due to an increase in the amount of matured wealth management products recovered this period[68] (III) Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 4.14% year-on-year, and net assets attributable to parent company increased by 4.11%. Monetary funds increased by 40.85% due to the recovery of matured structured deposits, while trading financial assets decreased by 57.92%. Notes payable increased by 37.87%, and employee compensation payable decreased by 30.53% due to year-end bonus payments. Short-term borrowings increased by 6 million yuan. Total restricted assets amounted to 45,040,956.30 yuan, mainly for bank acceptance and letter of guarantee deposits 2025 Half-Year Asset and Liability Changes | Item Name | Current Period End Amount (yuan) | Current Period End % of Total Assets | Prior Year End Amount (yuan) | Prior Year End % of Total Assets | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 706,212,882.32 | 23.93 | 501,400,978.30 | 17.70 | 40.85 | | Trading Financial Assets | 170,000,000.00 | 5.76 | 404,031,160.36 | 14.26 | -57.92 | | Inventories | 374,248,317.54 | 12.68 | 292,773,859.24 | 10.33 | 27.83 | | Construction in Progress | 273,727,745.19 | 9.28 | 211,721,161.14 | 7.47 | 29.29 | | Short-term Borrowings | 6,000,000.00 | 0.20 | 0.00 | 0.00 | 100.00 | | Notes Payable | 188,998,740.23 | 6.41 | 137,088,308.48 | 4.84 | 37.87 | | Employee Compensation Payable | 48,760,022.88 | 1.65 | 70,186,040.44 | 2.48 | -30.53 | | Taxes Payable | 14,324,731.95 | 0.49 | 25,673,098.21 | 0.91 | -44.20 | - The increase in monetary funds was mainly due to a larger amount of matured structured deposits recovered at the end of this period[70] - The decrease in trading financial assets was mainly due to a larger amount of matured structured deposits at the end of this period[70] - The decrease in employee compensation payable was mainly due to the payment of last year's employee year-end bonuses this period[71] End of Period Major Restricted Assets | Item | End of Period Book Value (Net) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 45,040,956.30 yuan | Bank acceptance deposit, letter of guarantee deposit | (IV) Investment Analysis Subsidiary Hefei Xinhu Shielded Pump Co., Ltd. invested 5 million yuan in Universal Machinery Key Core Basic Components Innovation Center (Anhui) Co., Ltd., holding 3.33% equity, aiming to strengthen R&D communication and technical breakthroughs. At the end of the reporting period, trading financial assets were 170 million yuan, and other non-current financial assets were 5 million yuan - In March 2023, subsidiary Hefei Xinhu Shielded Pump Co., Ltd. invested 5 million yuan in Universal Machinery Key Core Basic Components Innovation Center (Anhui) Co., Ltd., holding a 3.33% stake, aiming to strengthen R&D communication with the industry and achieve technical breakthroughs[74] Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (yuan) | Amount Purchased This Period (yuan) | Amount Sold/Redeemed This Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 404,031,160.36 | 1,077,000,000.00 | 1,311,031,160.36 | 170,000,000.00 | | Other Non-current Financial Assets | 5,000,000.00 | - | - | 5,000,000.00 | | Total | 409,031,160.36 | 1,077,000,000.00 | 1,311,031,160.36 | 175,000,000.00 | (VI) Analysis of Major Holding and Participating Companies During the reporting period, the company established two Singaporean subsidiaries, DAYUAN HOLDING(SG)PTE.LTD. and SHINHOO HOLDING(SG)PTE.LTD., and one Thai grandson company, Dayuan Pumps Industrial (Thailand) Co.,Ltd, none of which had a significant impact on overall production, operations, or performance. Among major subsidiaries, Anhui Xinhu had the highest net profit, while Xinhu New Energy and Zhejiang Leike incurred losses - During the reporting period, the company established three overseas subsidiaries/grandson companies: DAYUAN HOLDING(SG)PTE.LTD., SHINHOO HOLDING(SG)PTE.LTD., and Dayuan Pumps Industrial (Thailand) Co.,Ltd, none of which had a significant impact on overall production, operations, or performance[78] Major Subsidiary Financial Performance (H1 2025) | Company Name | Net Profit (10,000 yuan) | | :--- | :--- | | Hefei Xinhu | 2,179.59 | | Anhui Xinhu | 7,217.94 | | Henan Xinhu | 75.17 | | Xinhu New Energy | -73.33 | | Zhejiang Leike | -862.21 | V. Other Disclosures The company faces risks including intensified market competition, raw material price fluctuations, management risks from rapid expansion, political/policy/exchange rate risks in export destinations, accounts receivable bad debt risks, inventory impairment risks, profit decline risks from new depreciation/amortization, and new business development falling short of expectations. The company actively implements its "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, achieving revenue growth, increased R&D investment, optimized capacity, enhanced brand, standardized operations, strengthened investor relations, and prioritized investor returns - The company faces risks such as intensified market competition, raw material price fluctuations, management risks due to rapid expansion, political, policy, and exchange rate risks in product export destination countries, accounts receivable bad debt risk, inventory impairment risk, profit decline risk due to new depreciation and amortization, and new business development falling short of expectations[80][81][82][83][84][85][86][87] - The company actively implements its "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, achieving operating revenue of 965 million yuan in H1 2025, a year-on-year increase of 14.55%[88] - R&D expenses of 51 million yuan were invested, accounting for 5.28% of operating revenue, with 57 new patents added[88] - The company continues to advance the lean transformation of the Wenling factory and the construction of the Hefei new factory, strengthening the brand awareness and influence of "Dayuan," "Xinhu," and "Leike" through online and offline promotion[89] - The company strictly adheres to laws and regulations for standardized operations, with each governance body and management layer performing its duties, and plans to complete the revision of all internal systems in H2 2025[90][91] - The company maintains timely and effective communication with investors through various channels, including investor hotlines, SSE E-interaction, performance briefings, and online/offline surveys, ensuring truthful, accurate, and complete information disclosure[92] - Since its listing in 2017, the company has maintained the excellent tradition of "annual cash dividends," with cumulative cash dividends exceeding 840 million yuan, and has approved the "2025 Half-Year Profit Distribution Plan"[93] (I) Potential Risks The company faces multiple risks, including intensified market competition, raw material price volatility, management challenges from rapid expansion, export business vulnerability to political/policy/exchange rate impacts, accounts receivable bad debts, inventory impairment, profit decline due to new capacity depreciation, and new business development falling short of expectations - Risk of intensified market competition: The domestic pump manufacturing industry has numerous enterprises with severe product homogenization; if the company fails to continuously invest in market expansion and technological upgrades, it faces the risk of market share decline[80] - Risk of raw material price fluctuations: Major raw materials (castings, enameled wire, silicon steel sheets, etc.) account for a high proportion of total costs, and price fluctuations may affect the company's operating profit[81] - Management risk due to rapid expansion: The continuous expansion of asset scale, production scale, and business scope poses challenges to the company's operational management capabilities and internal control capabilities[82] - Political, policy, and exchange rate risks in product export destination countries: A significant portion of revenue comes from exports, and trade conflicts, political and economic instability, and changes in foreign exchange management policies may adversely affect the company's operating performance[83] - Risk of accounts receivable bad debts: Accounts receivable book value at the end of the reporting period was approximately 479 million yuan; if customers fail to pay on time, the company faces the risk of bad debt losses[84] - Inventory impairment risk: Inventories account for a relatively high proportion of total assets; if market demand changes or products become unsalable, there may be impairment risk[85] - Risk of profit decline due to new depreciation and amortization: After the new production base is completed, it will incur higher depreciation and amortization expenses; if business development scale fails to keep pace, it may adversely affect profit levels[86] - Risk of new business development falling short of expectations: The liquid cooling industry is still in its early stages, requiring high demands on talent, technology, and management; if industry development falls short of expectations or management cannot adapt, new businesses may face risks of underperformance[87] (II) Other Disclosures The company actively implements its "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, achieving 14.55% revenue growth and 51 million yuan in R&D investment in H1. It also advances factory upgrades and brand building, ensures standardized corporate governance, strengthens investor communication, and consistently rewards investors through cash dividends, totaling over 840 million yuan, with a proposed 5 yuan per 10 shares for H1 2025 - In H1 2025, the company achieved operating revenue of 965 million yuan, a year-on-year increase of 14.55%, with traditional businesses like agricultural pumps and household shielded pumps recovering, and emerging businesses like Leike commercial pumps and liquid cooling pumps growing rapidly[88] - R&D expenses of 51 million yuan were invested during the reporting period, accounting for 5.28% of operating revenue, with 57 new patents added, solidifying technological barriers[88] - The company is orderly advancing the lean transformation of the Wenling factory and the construction of the Hefei new factory, enhancing the brand awareness and influence of "Dayuan," "Xinhu," and "Leike" through online and offline promotion[89] - The company strictly adheres to laws and regulations for standardized operations, with each governance body and management layer performing its duties, and plans to complete the revision of all internal systems in H2 2025[90][91] - The company maintains timely and effective communication with investors through various channels, including investor hotlines, SSE E-interaction, performance briefings, and online/offline surveys, ensuring truthful, accurate, and complete information disclosure[92] - Since its listing in 2017, the company has maintained the excellent tradition of "annual cash dividends," with cumulative cash dividends exceeding 840 million yuan, and has approved the "2025 Half-Year Profit Distribution Plan," proposing a cash dividend of 5 yuan per 10 shares[93] Section IV Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, employee incentive measures, environmental information disclosure, and rural revitalization efforts I. Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management - There were no changes in the company's directors, supervisors, or senior management during the reporting period[96] II. Profit Distribution or Capital Reserve Conversion Plan The company proposes to distribute a cash dividend of 5 yuan (tax inclusive) per 10 shares to all shareholders based on the total share capital as of June 30, 2025, totaling 82,373,764.50 yuan, representing 81.68% of the H1 2025 net profit attributable to parent company 2025 Half-Year Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Is distribution or conversion | Yes | | Dividend per 10 shares (tax inclusive) | 5 yuan | | Total proposed cash dividend (tax inclusive) | 82,373,764.50 yuan | | Percentage of H1 2025 net profit attributable to listed company shareholders | 81.68% | - This profit distribution plan is subject to approval by the company's general meeting of shareholders[96] III. Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact During the reporting period, the company had no previously disclosed equity incentive matters with no subsequent progress or changes, nor any undisclosed incentive situations with subsequent developments - There were no equity incentive matters previously disclosed in interim announcements with no subsequent progress or changes during the reporting period[97] - There were no incentive situations not disclosed in interim announcements or with subsequent developments during the reporting period[97] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information Both the company and its subsidiary, Hefei Xinhu Shielded Pump Co., Ltd., are included in the list of enterprises required to disclose environmental information and have done so through the National Pollutant Discharge Permit Management Information Platform and provincial ecological environment department systems - Zhejiang Dayuan Pumps Industry Co., Ltd. and Hefei Xinhu Shielded Pump Co., Ltd. are both included in the list of enterprises required to disclose environmental information[98] - Environmental information disclosure reports can be queried through the National Pollutant Discharge Permit Management Information Platform and the Zhejiang/Anhui Provincial Ecological Environment Department - Enterprise Environmental Information Disclosure System[98] V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization During the reporting period, the company did not disclose specific progress in consolidating poverty alleviation achievements or rural revitalization efforts - No disclosure of specific progress in consolidating poverty alleviation achievements or rural revitalization efforts during the reporting period[99] Section V Significant Matters This section covers the fulfillment of commitments, related party fund occupation, irregular guarantees, audit status, significant litigation, related party transactions, significant contracts, and the use of raised funds I. Fulfillment of Commitments The company's actual controllers, shareholders, related parties, and the company itself have timely and strictly fulfilled all commitments made during or continuing into the reporting period, including share lock-ups, prospectus truthfulness, avoidance of horizontal competition, non-infringement of company interests, measures to offset diluted immediate returns, and regulation of related party transactions - The company's actual controllers, shareholders, related parties, acquirers, and the company itself have timely and strictly fulfilled all commitments made during or continuing into the reporting period[101] - Commitment types include share lock-ups, truthfulness of prospectus, resolution of horizontal competition, non-interference in company operations, non-infringement of company interests, measures to offset diluted immediate returns, and regulation and reduction of related party transactions with the company[101][102][103][104][105][106][107][108][109] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties - There was no non-operating fund occupation by controlling shareholders or other related parties during the reporting period[110] III. Irregular Guarantees During the reporting period, there were no irregular guarantees - There were no irregular guarantees during the reporting period[111] IV. Half-Year Report Audit Status This half-year report is unaudited - This half-year report is unaudited[7] VII. Significant Litigation and Arbitration Matters During the reporting period, the company had no matters reaching the standard for significant litigation or arbitration, but its subsidiary Hefei Xinhu Shielded Pump Co., Ltd. is involved in a patent infringement lawsuit in Germany, lost at first instance, paid advance compensation, and has appealed - During this reporting period, the company had no matters reaching the standard for significant litigation or arbitration[110] - Subsidiary Hefei Xinhu Shielded Pump Co., Ltd. was sued for patent infringement in the Düsseldorf District Court in Germany, lost at first instance, paid advance compensation of 64,000 euros, and appealed to the Luxembourg UPC Central Court on July 3, 2025[459] X. Significant Related Party Transactions During the reporting period, the company had no significant related party transactions, including those related to daily operations, asset/equity acquisitions or disposals, joint external investments, related party creditor/debtor relationships, or financial services with related financial companies - During the reporting period, there were no related party transactions related to daily operations that were previously disclosed in interim announcements and had no subsequent progress or changes[112] - During the reporting period, there were no related party transactions involving asset acquisitions or equity acquisitions/disposals[111] - During the reporting period, there were no significant related party transactions involving joint external investments[113] - During the reporting period, there were no related party creditor-debtor relationships[114] - During the reporting period, there were no financial services between the company and related financial companies, or between the company's controlling financial company and related parties[114] - During the reporting period, there were no other significant related party transactions[115] XI. Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters, nor any significant guarantees. As of June 30, 2025, the company and its subsidiaries had total bill and letter of guarantee deposits amounting to 45,040,956.30 yuan - During the reporting period, there were no entrustment, contracting, or leasing matters[115] - During the reporting period, there were no significant guarantees[115] Bill and Letter of Guarantee Deposits as of June 30, 2025 | Subsidiary Name | Deposit Type | Amount (yuan) | | :--- | :--- | :--- | | Hefei Xinhu Shielded Pump Co., Ltd. | Letter of Guarantee Deposit | 12,098,722.26 | | Anhui Xinhu Shielded Pump Co., Ltd. | Bank Acceptance Deposit | 4,120,000.00 | | Anhui Xinhu Shielded Pump Co., Ltd. | Bank Acceptance Deposit | 6,519,360.00 | | Anhui Xinhu Shielded Pump Co., Ltd. | Bank Acceptance Deposit | 14,268,148.80 | | Hefei Xinhu New Energy Co., Ltd. | Bank Acceptance Deposit | 3,782,725.24 | | Zhejiang Leike Pumps Industry Co., Ltd. | Bank Acceptance Deposit | 4,252,000.00 | XII. Explanation of Progress in Use of Raised Funds The company publicly issued convertible bonds, raising a total of 450 million yuan, with a net amount of 444 million yuan. As of the end of the reporting period, a cumulative 419 million yuan had been invested, representing 94.28% of the total. 21.42 million yuan was invested this year. The funds were primarily used for the "Annual Production of 5 Million High-Efficiency Energy-Saving Water Pumps Expansion Project" and to supplement working capital. The company managed idle raised funds through cash management Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (yuan) | Net Raised Funds (yuan) | Total Committed Investment (yuan) | Cumulative Raised Funds Invested as of Reporting Period End (yuan) | Cumulative Investment Progress (%) | Amount Invested This Year (yuan) | Percentage of This Year's Investment (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Convertible Bonds | 450,000,000.00 | 444,387,264.15 | 444,387,264.15 | 418,984,888.14 | 94.28 | 21,424,514.46 | 4.82 | Details of Raised Fund Investment Projects | Project Name | Committed Investment Amount from Raised Funds (yuan) | Amount Invested This Year (yuan) | Cumulative Raised Funds Invested as of Reporting Period End (yuan) | Cumulative Project Investment as % of Budget | | :--- | :--- | :--- | :--- | :--- | | Annual Production of 5 Million High-Efficiency Energy-Saving Water Pumps Expansion Project | 414,387,264.15 | 21,424,514.46 | 388,984,888.14 | 93.87 | | Supplement Working Capital | 30,000,000.00 | 0.00 | 30,000,000.00 | 100.00 | Cash Management of Idle Raised Funds | Board of Directors Review Date | Approved Cash Management Limit for Raised Funds (10,000 yuan) | Start Date | End Date | Cash Management Balance at Reporting Period End (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | | 2024-12-5 | 5,000.00 | 2024-12-5 | 2025-12-4 | 2,000.00 | Section VI Changes in Shares and Shareholder Information This section outlines changes in the company's share capital, details of its shareholders, and information regarding directors, supervisors, and senior management I. Changes in Share Capital During the reporting period, the company's total share capital increased by 1,345 shares due to the conversion of "Dayuan Convertible Bonds," resulting in an end-of-period total share capital of 164,747,529 shares, all of which are unrestricted tradable shares Share Capital Change Table | Category | Quantity Before Change (shares) | Percentage Before Change (%) | Net Increase/Decrease in This Change (shares) | Quantity After Change (shares) | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Unrestricted Tradable Shares | 164,746,184 | 100 | 1,345 | 164,747,529 | 100 | | Total Shares | 164,746,184 | 100 | 1,345 | 164,74