惠博普(002554) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report's structure, and defines key terms for clarity Important Notice The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, noting forward-looking statements involve uncertainties and investment risks, while facing multiple risks including oil industry dependence, policy changes, overseas operations, EPC projects, customer concentration, and exchange rate fluctuations, with no plans for cash dividends, bonus shares, or capital reserve conversions this period - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[3] - The company faces risks including dependence on the oil industry and oil price fluctuations, changes in oil and gas industry policies, policy risks in overseas business locations, EPC project operational risks, reliance on major customers, and exchange rate fluctuations[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section outlines the report's overall structure, comprising nine main chapters covering company profile, financial indicators, management discussion and analysis, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data - The report comprises nine main chapters, from important notices to other submitted data, providing comprehensive company information[7] Definitions This section provides definitions for common terms used in the report, including company names, major subsidiaries, and relevant laws and regulations, to ensure clear understanding of the content - “Company,” “the Company,” and “HBP” all refer to Huayou HBP Technology Co., Ltd[13] - Lists names and abbreviations of multiple subsidiaries, such as Changsha Water, HBP Energy, and HBP Machinery[13] - Defines laws and regulations and institutions such as the Company Law, Securities Law, Articles of Association, China Securities Regulatory Commission, and stock exchanges[13] Company Profile and Key Financial Indicators This section introduces the company's basic information and presents its key accounting data and financial performance indicators Company Profile The company's stock abbreviation is HBP, stock code 002554, listed on the Shenzhen Stock Exchange, with Lu Wei as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | HBP | | Stock Code | 002554 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Huayou HBP Technology Co., Ltd. | | Legal Representative | Lu Wei | Contact Persons and Information The company's Board Secretary is Zhang Zhongwei and Securities Affairs Representative is Wang Yuanyuan, both located at 16th Floor, Jin'ao International Office Building, No. 17 Madian East Road, Haidian District, Beijing, with phone 010-62071047 and email securities@china-hbp.com Contact Persons and Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhang Zhongwei | 16th Floor, Jin'ao International Office Building, No. 17 Madian East Road, Haidian District, Beijing | 010-62071047 | 010-82809807-1115 | securities@china-hbp.com | | Securities Affairs Representative | Wang Yuanyuan | 16th Floor, Jin'ao International Office Building, No. 17 Madian East Road, Haidian District, Beijing | 010-62071047 | 010-82809807-1115 | securities@china-hbp.com | Other Information During the reporting period, the company's registered address, office address, website, email, information disclosure, and archiving locations remained unchanged, with detailed information available in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[17] - Information disclosure and archiving locations remained unchanged during the reporting period[18] - Other relevant information showed no changes during the reporting period[19] Key Accounting Data and Financial Indicators This period, the company's operating revenue decreased by 30.92% year-over-year, while net profit attributable to listed company shareholders increased by 44.56%, and net profit excluding non-recurring gains and losses surged by 89.76%, with negative net cash flow from operating activities, a slight decrease in total assets, and an increase in net assets attributable to listed company shareholders Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (CNY) | Prior Year (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 879,032,231.79 | 1,272,524,195.79 | -30.92% | | Net Profit Attributable to Listed Company Shareholders | 44,391,322.91 | 30,707,876.05 | 44.56% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains and Losses) | 38,195,092.64 | 20,127,855.52 | 89.76% | | Net Cash Flow from Operating Activities | -223,221,549.17 | -191,726,240.73 | -16.43% | | Basic Earnings Per Share (CNY/share) | 0.03 | 0.02 | 50.00% | | Diluted Earnings Per Share (CNY/share) | 0.03 | 0.02 | 50.00% | | Weighted Average Return on Net Assets | 1.88% | 1.23% | 0.65% | | Indicator | End of Current Period (CNY) | End of Prior Year (CNY) | Change from Prior Year-End | | Total Assets | 5,513,633,678.16 | 5,651,045,545.61 | -2.43% | | Net Assets Attributable to Listed Company Shareholders | 2,404,780,887.49 | 2,317,592,293.33 | 3.76% | Differences in Accounting Data Under Domestic and International Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under international or overseas accounting standards and Chinese accounting standards - During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards[21] - During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese Accounting Standards[22] Non-Recurring Gains and Losses and Amounts This period's total non-recurring gains and losses amounted to CNY 6,196,230.27, primarily comprising government subsidies, fair value changes, debt restructuring gains, and other non-operating income/expenses, after deducting non-current asset disposal losses, income tax impact, and minority interest impact Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Disposal gains/losses on non-current assets | -74,838.37 | | Government subsidies recognized in current profit/loss | 3,585,008.69 | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains/losses from disposal of financial assets and liabilities | 1,962,147.71 | | Debt restructuring gains/losses | 6,238.00 | | Other non-operating income and expenses apart from the above | 170,219.40 | | Less: Income tax impact | -773,509.25 | | Minority interest impact (after tax) | 226,054.41 | | Total | 6,196,230.27 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring profit or loss items[25][26] Management Discussion and Analysis This section provides management's perspective on the company's principal operations, core competencies, financial performance, and risk factors Principal Businesses Engaged in by the Company During the Reporting Period HBP, an international integrated solution provider for oil and gas resource development and utilization, primarily engages in oil and gas engineering and services, environmental engineering and services, and oil and gas resource development and utilization; in H1 2025, operating revenue decreased by 30.92% YoY, but net profit attributable to parent company increased by 44.56%, mainly due to bad debt provision reversals from overseas project collections, with the company continuing to deepen overseas markets and advance high-potential projects - HBP is an international integrated solution provider for oil and gas resource development and utilization, with principal businesses including oil and gas engineering and services (EPCC), environmental engineering and services, and oil and gas resource development and utilization[28] - In H1 2025, the company achieved operating revenue of CNY 879.03 million, a 30.92% decrease year-over-year; net profit attributable to listed company shareholders was CNY 44.39 million, a 44.56% increase year-over-year, primarily due to significant overseas project collections leading to bad debt provision reversals[28] - The company will continue to advance the implementation of overseas follow-up projects, strengthen emerging market development, ensure ongoing projects are executed according to schedule, and strive to achieve its 2025 operating targets[28] Oil and Gas Engineering and Services Business Oil and gas engineering and services revenue was CNY 627.14 million, a 36.7% year-over-year decrease, accounting for 71.34% of operating revenue, primarily due to fewer new orders and slower-than-expected progress on major overseas projects in the first half Oil and Gas Engineering and Services Business Performance | Indicator | Amount (CNY 10,000) | YoY Change | | :--- | :--- | :--- | | Revenue | 62,714.15 | -36.7% | | Proportion of Operating Revenue | 71.34% | - | | Primary Reason | Fewer new orders, slower-than-expected progress on major overseas projects | - | Environmental Engineering and Services Business Environmental engineering and services revenue reached CNY 30.26 million, a 37.05% year-over-year increase, representing 3.44% of operating revenue, primarily driven by the smooth progress and phased achievements of various environmental protection projects Environmental Engineering and Services Business Performance | Indicator | Amount (CNY 10,000) | YoY Change | | :--- | :--- | :--- | | Revenue | 3,025.76 | 37.05% | | Proportion of Operating Revenue | 3.44% | - | | Primary Reason | Smooth progress and phased achievements of various environmental protection projects | - | Oil and Gas Resource Development and Utilization Oil and gas resource development and utilization revenue was CNY 221.63 million, a 14.68% year-over-year decrease, accounting for 25.21% of operating revenue, primarily due to declining gas consumption and some industrial users switching to liquefied natural gas in the first half Oil and Gas Resource Development and Utilization Business Performance | Indicator | Amount (CNY 10,000) | YoY Change | | :--- | :--- | :--- | | Revenue | 22,163.31 | -14.68% | | Proportion of Operating Revenue | 25.21% | - | | Primary Reason | Declining gas consumption in the first half, some industrial users switching to liquefied natural gas | - | Analysis of Core Competencies The company's core competencies include technological advantages based on innovative process system solutions, synergistic development with controlling shareholder Changsha Water Group, personalized high-end product advantages, high brand recognition and significant customer advantages, along with first-mover internationalization and EPC service capabilities - The company, centered on separation technology, has developed specialized advantages in oil and gas treatment, expanding into oil and gas extraction and oilfield environmental protection, with technological strengths in optimizing process system solutions, product design, and system integration capabilities[32] - Controlling shareholder Changsha Water Group provides strong support in funding and business, facilitating the company's financing, access to government subsidies and tax incentives, and leveraging state-owned enterprise resources to drive international operations[34] - The company provides integrated oil and gas field surface process system equipment products and technical services, including process R&D, solution design, equipment manufacturing, training, after-sales service, and O&M, capable of offering innovative technical solutions and customized products based on client needs[35] - The company has become a qualified supplier to China's three major oil companies and their subsidiaries domestically, with products expanded to over 30 countries and regions in the Middle East, Central Asia, Africa, and the Americas internationally, gaining access qualifications from international oil companies[36] - Since its inception, the company has pursued international development as a strategy, accumulating overseas EPC engineering service experience, successfully transforming from an equipment vendor to an EPC general contractor, and establishing a comprehensive international standard system[37] Analysis of Principal Business This period, the company's operating revenue decreased by 30.92% year-over-year, primarily due to fewer new orders; financial expenses significantly increased due to higher exchange losses, but credit impairment losses notably reversed due to major project accounts receivable collections; oil and gas engineering and services remain the main revenue source, with overseas markets contributing over 60% of revenue, though both saw year-over-year declines Year-over-Year Changes in Key Financial Data | Item | Current Period (CNY) | Prior Year (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 879,032,231.79 | 1,272,524,195.79 | -30.92% | Primarily due to fewer new orders during the reporting period | | Selling Expenses | 32,507,005.56 | 51,086,673.04 | -36.37% | Primarily due to fewer new orders during the reporting period | | Financial Expenses | 41,398,371.36 | 14,681,089.40 | 181.98% | Primarily due to increased exchange losses during the reporting period | | Income Tax Expense | -12,178,664.53 | -92,438.05 | -13,074.95% | Primarily due to losses incurred by some domestic companies during the reporting period | | Net Cash Flow from Investing Activities | 4,508,140.41 | -22,903,055.86 | 119.68% | Primarily due to decreased acquisition of fixed assets during the reporting period | | Net Cash Flow from Financing Activities | -238,253,091.99 | -70,860,340.77 | -236.23% | Primarily due to decreased borrowings during the reporting period | | Credit Impairment Losses | 108,693,357.17 | -8,401,639.33 | 1,393.72% | Primarily due to collections from major project accounts receivable during the reporting period | | Asset Impairment Losses | -11,247,468.08 | 4,317,976.68 | -360.48% | Primarily due to increased contract assets during the reporting period | Operating Revenue Composition (by Product and Region) | Category | Item | Amount (CNY) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | By Product | Oil and Gas Engineering and Services | 627,141,501.31 | 71.34% | -36.70% | | | Environmental Engineering and Services | 30,257,647.41 | 3.44% | 37.05% | | | Oil and Gas Resource Development and Utilization | 221,633,083.07 | 25.21% | -14.68% | | By Region | Overseas | 539,106,067.67 | 61.33% | -31.75% | | | North China | 231,910,824.00 | 26.38% | -30.97% | | | Southwest | 5,960,839.94 | 0.68% | 3,161.40% | Performance of Major Sales Contracts Signed as of the Reporting Period The company's major sales contracts include the Ethiopia Gas Gathering and Treatment EPCC Project, Kazakhstan Design and Supply Project, Mexico Gas Power Generation Project, and Maginu DS2 Wet Oil Upgrade EPC Project; during this period, the Kazakhstan and Mexico projects recognized sales revenue and received payments, while the Maginu project recognized CNY 341.62 million in sales revenue and collected CNY 785.45 million Major Sales Contract Performance | Contract Subject | Counterparty | Total Contract Amount (USD 10,000 / CNY 10,000) | Total Performed Amount (CNY 10,000) | Amount Performed in Current Period (CNY 10,000) | Amount Pending Performance (CNY 10,000) | Is Contract Performing Normally | Sales Revenue Recognized in Current Period | Cumulative Sales Revenue Recognized | Accounts Receivable Collection Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ethiopia Gas Gathering and Treatment EPCC Project | POLY-GCL Petroleum Investments Limited Ethiopian Branch | 223,727.09 | 0.00 | 0.00 | Not yet started | Not yet started | - | - | - | | Kazakhstan Design and Supply Project | TOO《GPC Investment》 | 33,109.59 | 205,019.74 | 3,082.61 | 21,112.68 | In progress | CNY 30.83 million | CNY 2.05 billion | CNY 1.67 billion | | Mexico Gas Power Generation Project | Comisión Federal de Electricidad(CFE) | 31,900.00 | 213,757.35 | 2,250.44 | 11,625.12 | In progress | CNY 22.50 million | CNY 2.14 billion | CNY 2.13 billion | | Maginu DS2 Wet Oil Upgrade EPC | Anton Oilfield Services DMCC | 18,527.29 | 94,031.01 | 34,161.60 | 37,755.44 | In progress | CNY 341.62 million | CNY 940.31 million | CNY 785.45 million | Analysis of Non-Principal Business This period, non-principal businesses significantly contributed to total profit, with investment income accounting for 64.39%, primarily from equity method investments in associates, but this is not sustainable; asset impairment reversals accounted for 341.44%, mainly due to accounts receivable impairment reversals from overseas project collections, also lacking sustainability Non-Principal Business Analysis | Item | Amount (CNY) | Proportion of Total Profit | Explanation of Formation Reason | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 18,377,340.76 | 64.39% | Primarily from investment income of associates recognized under the equity method | No | | Fair Value Change Gains/Losses | 1,962,147.71 | 6.88% | Primarily due to changes in fair value of other non-current financial assets | No | | Asset Impairment | 97,445,889.09 | 341.44% | Primarily due to significant collections from overseas project accounts receivable during the reporting period, leading to reversal of accounts receivable impairment provisions | No | | Non-Operating Income | 1,181,225.57 | 4.14% | Primarily from liquidated damages income | No | | Non-Operating Expenses | 257,572.96 | 0.90% | Primarily from payment of late fees and fines | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets slightly decreased, but the asset structure significantly changed; cash and accounts receivable decreased due to loan repayments and collections, while contract assets, inventories, and prepayments increased, reflecting project revenue recognition and procurement growth; short-term borrowings decreased, contract liabilities increased, and provisions rose due to increased loss-making contracts Significant Changes in Asset Composition | Item | Amount at End of Current Period (CNY) | Proportion of Total Assets | Amount at Prior Year-End (CNY) | Proportion of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 856,715,740.42 | 15.54% | 1,287,929,115.25 | 22.79% | -7.25% | Primarily due to decreased borrowings during the reporting period | | Accounts Receivable | 432,454,624.42 | 7.84% | 656,561,682.59 | 11.62% | -3.78% | Primarily due to increased collections from major project accounts receivable during the reporting period | | Contract Assets | 825,628,273.75 | 14.97% | 614,965,829.86 | 10.88% | 4.09% | Primarily due to revenue recognition from major projects during the reporting period | | Inventories | 489,666,879.17 | 8.88% | 411,951,465.22 | 7.29% | 1.59% | Primarily due to increased project procurement during the reporting period | | Short-term Borrowings | 440,601,612.27 | 7.99% | 628,130,775.54 | 11.12% | -3.13% | Primarily due to increased repayment of borrowings during the reporting period | | Contract Liabilities | 275,221,461.87 | 4.99% | 117,403,053.19 | 2.08% | 2.91% | Primarily due to increased project collections during the reporting period | | Prepayments | 570,489,648.10 | 10.35% | 403,748,036.25 | 7.14% | 3.21% | Primarily due to increased new procurement contracts during the reporting period | | Provisions | 19,264,899.71 | 0.35% | 12,617,996.74 | 0.22% | 0.13% | Primarily due to increased loss-making contracts during the reporting period | - No disclosure regarding the company's major overseas assets during the reporting period[51] Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gains/Losses in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 19,799,381.63 | 1,962,147.71 | 21,761,529.34 | | Investments in Other Equity Instruments | 3,520,000.00 | - | 3,520,000.00 | | Subtotal Financial Assets | 23,319,381.63 | 1,962,147.71 | 25,281,529.34 | | Financial Liabilities | 0.00 | 0.00 | 0.00 | - As of the end of the reporting period, restricted cash and cash equivalents amounted to CNY 149,482,173.69, primarily comprising letters of credit, guarantee deposits, and bank acceptance bill deposits[53] Analysis of Investment Status This period, the company's investment amounted to CNY 3,972,894.54, a significant 86.90% year-over-year decrease, with no major equity investments, non-equity investments, securities investments, derivative investments, or use of raised funds during the reporting period Investment Amount During Reporting Period | Indicator | Investment Amount in Current Period (CNY) | Investment Amount in Prior Year (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 3,972,894.54 | 30,331,805.15 | -86.90% | - During the reporting period, the company had no securities investments, derivative investments, or use of raised funds[56][57][58] Major Asset and Equity Sales During the reporting period, the company did not engage in any major asset sales or significant equity sales - The company did not sell any major assets during the reporting period[59] - The company did not sell any major equity during the reporting period[60] Analysis of Major Holding and Associate Companies The company's major subsidiaries, HBP Energy, Hong Kong Huihua, Kate Digital, and HBP Machinery, generally experienced decreased operating revenue due to fewer orders during the reporting period, but Hong Kong Huihua achieved significant net profit growth due to increased collections from major project accounts receivable Operating Performance of Major Subsidiaries | Company Name | Operating Revenue (CNY 10,000) | Net Profit (CNY 10,000) | YoY Change (Operating Revenue) | YoY Change (Net Profit) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | HBP Energy Technology Co., Ltd. | 6,667.45 | -1,320.81 | -47.56% | -88.29% | Fewer outstanding orders | | HONG KONG HUIHUA GLOBAL TECHNOLOGY LIMITED | 13,664.84 | 9,086.41 | -74.78% | 222.50% | Operating revenue decreased due to fewer outstanding orders, net profit increased due to increased collections from major project accounts receivable | | Kate Digital Technology Co., Ltd. | 7,667.45 | 1,361.39 | -27.37% | -26.46% | Fewer outstanding orders | | Daqing HBP Petroleum Machinery Equipment Manufacturing Co., Ltd. | 4,985.43 | -475.56 | -64.32% | -156.59% | Fewer outstanding orders | Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[66] Risks Faced by the Company and Countermeasures The company faces multiple operational risks, including oil industry and price fluctuations, oil and gas policy changes, overseas business policies, EPC project operations, reliance on major customers, and exchange rate volatility; countermeasures include strengthening budget management, monitoring policy changes, enhancing international business capabilities, reinforcing EPC project management, expanding clients, and engaging in foreign exchange hedging - The company faces risks from dependence on the oil industry and oil price fluctuations, which it will mitigate by strengthening budget management, cost control, and optimizing investments[66] - Changes in oil and gas industry policies may affect the company's business demand, and the company will continuously monitor policy changes and prudently engage in operational and investment activities[67] - Overseas operations face policy risks such as political instability and increased market entry barriers; the company will strictly implement internal control systems, enhance international business capabilities, and strengthen human resource diversification and localization[68] - EPC projects carry high operational risks, and the company will strengthen control over all aspects of project management to ensure on-time delivery and explore new service models[69] - The company has a high customer concentration, posing a risk of reliance on major clients, which will be mitigated by strengthening the marketing system, accelerating market expansion, and deeply exploring potential overseas customers[70] - The increasing proportion of overseas projects leads to exchange rate fluctuation risks; the company will, when necessary, engage in foreign exchange hedging and establish a comprehensive exchange rate risk prevention and management system[71] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company approved the "Market Value Management System" on July 12, 2024, making market value management a core board responsibility aimed at enhancing intrinsic value through capital operations, equity management, and daily management to gain capital market recognition, though no valuation enhancement plan announcement was disclosed - The company's Fifth Board of Directors held its fifth meeting in 2024 on July 12, 2024, and approved the "Market Value Management System"[72] - The "Market Value Management System" states that market value management is one of the core responsibilities of the board, based on the company's compliant operations, effective management, and intrinsic value creation, aiming to maximize company value and create shareholder value[72] - The company has not disclosed any announcement regarding a valuation enhancement plan[72] Implementation of "Quality and Return Dual Enhancement" Action Plan The company has not disclosed any announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed any announcement regarding the "Quality and Return Dual Enhancement" action plan[74] Corporate Governance, Environment, and Society This section details changes in governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, the company experienced multiple changes in directors, supervisors, and senior management, including director by-elections, appointments and removals of the general manager and financial officer, and resignations of the supervisory board chairman and supervisors, primarily due to job reassignments and supervisory board reforms Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Liu Jian | Director | Elected | February 10, 2025 | By-election of Director | | Lu Wei | Changed from Deputy General Manager to General Manager | Appointment/Removal | January 15, 2025 | Job Reassignment | | He Yulong | Deputy General Manager, CFO | Dismissal | January 15, 2025 | Job Reassignment | | Zhang Zhongwei | Director, Board Secretary, Executive Deputy General Manager, concurrently serving as Financial Officer | Appointment/Removal | January 15, 2025 | Job Reassignment | | Zhou Chunhua | Chairman of Supervisory Board | Resignation | May 19, 2025 | Supervisory Board Reform | | Yang Hui | Supervisor | Resignation | May 19, 2025 | Supervisory Board Reform | | Wang Pin | Supervisor | Resignation | May 19, 2025 | Supervisory Board Reform | Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[77] Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor their implementation - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor their implementation, during the reporting period[78] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[79] Social Responsibility Adhering to the belief of "enterprise development, giving back to society," the company integrates social responsibility management into its strategy and daily operations, committed to protecting shareholder and employee rights, fostering common development with partners, and achieving sustainable growth across economic, environmental, social, and corporate dimensions - The company adheres to the belief of "enterprise development, giving back to society," firmly believing that "people-oriented, healthy development, expanding employment, and lawful taxation" are its most important social responsibilities[79] - The company strictly regulates the convening, holding, and voting procedures of shareholder meetings, ensuring shareholders' right to know and participate in major matters, diligently fulfilling information disclosure obligations, and strengthening investor relations management[80] - The company adheres to people-oriented management, establishing an internal promotion system, talent incentive policies, performance appraisal system, and diverse training management system, caring for employees' physical and mental health, and actively promoting the improvement of compensation and welfare systems[82] - The company is committed to creating value for customers with advanced technology and products, strictly controlling product quality, improving after-sales service, and promoting social responsibility within the industry chain, growing together with strategic alliance partners[83] Significant Events This section covers significant events, including commitments, related party transactions, guarantees, and other material disclosures Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, the company reported no commitments fulfilled or overdue unfulfilled by the controlling shareholder, shareholders, related parties, acquirers, or the company itself - During the reporting period, the company reported no commitments fulfilled or overdue unfulfilled by the controlling shareholder, shareholders, related parties, acquirers, or the company itself as of the end of the reporting period[85] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, the company reported no non-operating fund occupation by the controlling shareholder or other related parties - During the reporting period, the company reported no non-operating fund occupation by the controlling shareholder or other related parties[86] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[87] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[88] Board of Directors' and Supervisory Board's Explanation of "Non-Standard Audit Report" for Current Period The company had no non-standard audit report for the current reporting period - The company had no non-standard audit report for the current reporting period[89] Board of Directors' Explanation of "Non-Standard Audit Report" for Prior Year The company had no non-standard audit report for the prior year - The company had no non-standard audit report for the prior year[89] Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization matters - The company had no bankruptcy and reorganization matters during the reporting period[89] Litigation Matters The company had no major litigation, arbitration, or other litigation matters during the current reporting period - The company had no major litigation or arbitration matters during the current reporting period[90] - The company had no other litigation matters during the current reporting period[90] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[91] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintain good integrity, with no significant information requiring disclosure - There is no significant information requiring disclosure regarding the integrity status of the company, its controlling shareholder, and actual controller[92] Major Related Party Transactions During the reporting period, the company engaged in ordinary course related party transactions with its controlling shareholder and subsidiaries, totaling CNY 21.89 million, which did not exceed the estimated total; no other major related party transactions occurred, such as asset/equity acquisitions/disposals, joint external investments, related party debt/credit, or dealings with affiliated finance companies Related Party Transactions Related to Ordinary Course of Business | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (CNY 10,000) | Proportion of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | | Changsha Water Group Co., Ltd. | Sales of Products and Provision of Services | Smart water and other informatization construction products and services | 111.74 | 2.76% | | PLC | Sales of Products and Provision of Services | Sales of hardware products such as water quality detectors | 17.21 | 0.40% | | Data collection, testing services | Sales of Products and Provision of Services | Data collection, testing services | 56.00 | 1.74% | | Zhongnan Water Technology Co., Ltd. | Purchase of Goods/Acceptance of Services | Water treatment and other equipment | 1,484.71 | 28.39% | | Zhongnan Water Engineering Co., Ltd. | Purchase of Goods/Acceptance of Services | Civil engineering and decoration services | 2,558.00 | 0.00% | | Total | - | - | 2,188.66 | - | - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[94] - The company had no related party transactions involving joint external investments during the reporting period[95] - The company had no related party debt or credit transactions during the reporting period[96] - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated finance companies or related parties[97] - The company had no other major related party transactions during the reporting period[99] Major Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters; however, it had significant guarantees, providing CNY 8.24 million in guarantees for controlling shareholder Changsha Water Group and CNY 221.39 million for subsidiaries, with total guarantees representing 9.55% of net assets; the company had no entrusted wealth management or other major contracts - The company had no entrustment, contracting, or leasing situations during the reporting period[100][101][102] External Guarantees by the Company and its Subsidiaries | Guaranteed Party Name | Guaranteed Limit (CNY 10,000) | Actual Guaranteed Amount (CNY 10,000) | Is Guarantee Fulfilled | Is it a Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | | Changsha Water Group Co., Ltd. | 40,000 | 824.46 | No | Yes | | Energy Technology Co., Ltd. | 1,000 | 828.13 | No | No | | Kate Digital Technology Co., Ltd. | 1,000 | 1,000 | No | No | | HBP Energy Technology Co., Ltd. | 2,000 | 200 | No | No | | HBP Environmental Engineering Technology Co., Ltd. | 20,370 | 2 | No | No | | Weixian HBP Environmental Protection Technology Co., Ltd. | 300 | 300 | No | No | | HBP Energy Technology Co., Ltd. | 1,000 | 1,000 | No | No | | Total Company Guarantees | 68,670 | 22,963.51 | - | - | | Proportion of Actual Total Guarantees to Company's Net Assets | - | 9.55% | - | - | | Balance of Guarantees Provided for Shareholders, Actual Controllers, and their Related Parties | - | 824.46 | - | - | | Balance of Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% | - | 3,024.46 | - | - | | Total of the Above Three Guarantee Amounts | - | 3,848.92 | - | - | - The company had no entrusted wealth management during the reporting period[108] - The company had no other major contracts during the reporting period[109] Explanation of Other Significant Matters During the reporting period, the company had no other significant matters requiring explanation - The company had no other significant matters requiring explanation during the reporting period[110] Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters - The company's subsidiaries had no significant matters during the reporting period[111] Share Changes and Shareholder Information This section outlines changes in the company's share capital, shareholder structure, and information regarding its major shareholders Share Change Information During the reporting period, the company's total share capital remained unchanged, but restricted shares increased by 375 shares to 249,547 shares, with a corresponding decrease in unrestricted shares, primarily due to former supervisor Mr. Wang Pin's shares entering a post-resignation lock-up period Share Change Information | Item | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (Net) (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 249,172 | 0.02% | 375 | 249,547 | 0.02% | | Of which: Shares held by domestic natural persons | 249,172 | 0.02% | 375 | 249,547 | 0.02% | | II. Unrestricted Shares | 1,333,470,900 | 99.98% | -375 | 1,333,470,525 | 99.98% | | III. Total Shares | 1,333,720,072 | 100.00% | 0 | 1,333,720,072 | 100.00% | - The reason for the share change is that former supervisor Mr. Wang Pin's shares entered a post-resignation lock-up period starting from May 19, with the lock-up ratio increasing from 75% during his tenure to 100%, thus increasing restricted shares by 375 shares[115] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Wang Pin | 1,125 | 375 | 1,500 | Senior Management Locked Shares | | Zhou Xueshen | 17,925 | 0 | 17,925 | Senior Management Locked Shares | | Zhang Zhongwei | 230,122 | 0 | 230,122 | Senior Management Locked Shares | | Total | 249,172 | 375 | 249,547 | - | Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing activities - The company had no securities issuance or listing during the reporting period[119] Number of Shareholders and Shareholding Information As of the end of the reporting period, the company had 53,651 common shareholders; Changsha Water Group Co., Ltd. was the largest shareholder with a 30.52% stake, and among the top ten shareholders, Changsha Water Group had no related party or concerted action relationship with other shareholders Total Number of Common Shareholders at End of Reporting Period | Indicator | Quantity | | :--- | :--- | | Total Number of Common Shareholders at End of Reporting Period | 53,651 | Shareholding Information of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Changsha Water Group Co., Ltd. | State-owned Legal Person | 30.52% | 407,059,723.00 | 407,059,723.00 | | Huang Song | Domestic Natural Person | 5.85% | 78,057,898 | 78,057,898 | | Bai Mingyin | Domestic Natural Person | 2.22% | 29,551,550 | 29,551,550 | | Xiao Rong | Domestic Natural Person | 1.75% | 23,361,956 | 23,361,956 | | Ding Jiansen | Domestic Natural Person | 0.75% | 9,999,000 | 9,999,000 | | Wang Quan | Domestic Natural Person | 0.62% | 8,325,487 | 8,325,487 | | Ren Xiaowei | Domestic Natural Person | 0.50% | 6,613,900 | 6,613,900 | | Wang Chaobin | Domestic Natural Person | 0.46% | 6,093,900 | 6,093,900 | | Shi Ruixiang | Domestic Natural Person | 0.43% | 5,801,400 | 5,801,400 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Overseas Legal Person | 0.34% | 4,521,818 | 4,521,818 | - Among the company's top 10 shareholders, the largest shareholder, Changsha Water Group Co., Ltd., has no related party or concerted action relationship with the other nine shareholders[121] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, with details available in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[123] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[124] - The company's actual controller did not change during the reporting period[124] Preferred Share Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[125] Bond Information This section provides information on the company's bond-related activities and outstanding debt instruments Bond Information During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[127] Financial Report This section presents the company's audited financial statements, including balance sheets, income statements, and cash flow statements, along with detailed notes Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[129] Financial Statements This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively illustrating the company's financial position, operating results, and cash flow - This section includes the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Owners' Equity, and Parent Company Statement of Changes in Owners' Equity[130][134][138][140][142][144][146][153] Company Basic Information Huayou HBP Technology Co., Ltd. has a registered capital of CNY 1,333.72 million, registered in Changsha, Hunan Province, with its headquarters in Beijing; the company primarily engages in R&D of oil and gas field surface system process technology, equipment provision, engineering technical services, and oil and gas resource development and utilization, consolidating 37 subsidiaries, with Changsha SASAC as the ultimate actual controller - The company has a total issued share capital of 1,333,720,072 shares, registered capital of CNY 1,333.72 million, registered address at Room 542, Block C, Hengsheng Commercial Building, No. 22, Section 1, Jinxing North Road, Yuelu District, Changsha City, Hunan Province, and headquarters at 11th Floor, No. 17 Madian East Road, Haidian District, Beijing[159] - The company operates in the oil and natural gas extraction services industry, with its main products and services including process technology R&D, system design, equipment provision, engineering technical services for oil and gas field surface systems, and oil and gas resource development and utilization[160] - The company consolidated 37 subsidiaries during the current period[161] - The parent company is Changsha Water Group Co., Ltd., and the ultimate actual controller is Changsha SASAC[159] Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with the Enterprise Accounting Standards and relevant regulations issued by the Ministry of Finance, based on the going concern assumption, and using the accrual basis and historical cost as the accounting and measurement principles - The company prepares its financial statements based on actual transactions and events, in accordance with the "Basic Standard for Enterprise Accounting Standards" and specific Enterprise Accounting Standards, application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[163] - These financial statements are prepared on a going concern basis[164] - The company's accounting is based on the accrual method; except for certain financial instruments measured at fair value, these financial statements use historical cost as the measurement basis[165] Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including compliance with Enterprise Accounting Standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions and translation, financial instruments, various receivables, inventories, assets held for sale, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, right-of-use assets, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, lease liabilities, share-based payments, preferred shares/perpetual bonds, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, discontinued operations, and share repurchases - The financial statements prepared by the company comply with Enterprise Accounting Standards, accurately and completely reflecting the company's financial position, operating results, cash flows, and other relevant information for the reporting period[167] - The company classifies financial assets into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[200][201][202] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the promised goods or services, at the transaction price allocated to that performance obligation[341] - The company performs impairment accounting and recognizes loss provisions for financial assets measured at amortized cost, financial assets classified as measured at fair value with changes recognized in other comprehensive income, lease receivables, and contract assets, based on expected credit losses[227] Taxation The company and its subsidiaries apply various VAT and corporate income tax rates depending on business type and registration location; the company and some subsidiaries benefit from a 15% high-tech enterprise income tax preference, while others also enjoy VAT immediate refund for software products, VAT incentives for comprehensive resource utilization, and small and micro-enterprise income tax preferential policies Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | See tax rate description | 13%/9%/6%/5% | | Urban Maintenance and Construction Tax | - | 5%、7% | | Corporate Income Tax | See tax rate description | 15%/20%/25%/29%/30% etc. | | Local Education Surcharge | - | 2% | | Education Surcharge | - | 3% | | Property Tax | - | 1.2%、12% | - The company has been certified as a high-tech enterprise and is subject to a 15% corporate income tax rate for the 2025 fiscal year[389] - Some subsidiaries enjoy a VAT immediate refund policy for software products, where the actual tax burden exceeds 3%[393] - Sanmenxia Dixing Energy Company, a fourth-tier subsidiary of the company, qualifies as a small and micro-profit enterprise and enjoys preferential income tax policies[396] Notes to Consolidated Financial Statement Items This section details the ending balances, beginning balances, and changes of major consolidated financial statement items; cash and cash equivalents, accounts receivable, and short-term borrowings decreased due to loan repayments and collections, while contract assets, inventories, prepayments, contract liabilities, and long-term equity investments increased, reflecting growth in project revenue recognition, procurement, and investments; financial expenses significantly rose due to increased exchange losses, and credit impairment losses notably reversed due to major project accounts receivable collections Ending Balances of Major Consolidated Financial Statement Items | Item | Ending Balance (CNY) | Beginning Balance (CNY) | Explanation of Change | | :--- | :--- | :--- | :