青山纸业(600103) - 2025 Q2 - 季度财报

Important Notice This section emphasizes the board of directors, supervisory board, and senior management's assurance of the semi-annual report's truthfulness, accuracy, and completeness, clarifying that the report is unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and bear individual and joint legal liabilities[3] - This semi-annual report is unaudited[5] - The company has not proposed a profit distribution plan or a capital reserve to share capital increase plan for this reporting period[6] - Forward-looking statements regarding future plans and development strategies in this report are subject to uncertainties and do not constitute a substantive commitment to investors; investors are advised to be aware of investment risks[6][7] Section I Definitions This section defines common terms used in the report, clarifying the meanings of specialized terms such as the reporting period, regulatory bodies, company name, and its main subsidiaries, to ensure accurate understanding of the report's content - The reporting period refers to the first half of 2025[16] - Company/This Company/Qingshan Paper refers to Fujian Qingshan Paper Co., Ltd[16] - Lists abbreviations for major related parties and subsidiaries such as Grant Thornton, Narcissus Pharmaceutical, Wuji Pharmaceutical, and Shenzhen Hengbaotong[16] Section II Company Profile and Key Financial Indicators This section provides basic information, contact details, stock overview, and auditor information for Fujian Qingshan Paper Co., Ltd. It also discloses key accounting data and financial indicators for the first half of 2025, showing a year-on-year decrease in operating revenue but a slight increase in net profit attributable to shareholders, and a significant decrease in net cash flow from operating activities - Company Chinese Name: Fujian Qingshan Paper Co., Ltd., Abbreviation: Qingshan Paper, Legal Representative: Lin Xiaohe[13] - Company stock code: 600103, listed on the Shanghai Stock Exchange[19] - The accounting firm engaged by the company is Grant Thornton (Special General Partnership)[20] Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,210,150,542.18 CNY | 1,428,202,105.64 CNY | -15.27 | | Total Profit | 73,160,101.55 CNY | 72,785,334.99 CNY | 0.51 | | Net Profit Attributable to Shareholders of Listed Company | 56,078,994.23 CNY | 55,122,373.18 CNY | 1.74 | | Net Cash Flow from Operating Activities | -66,164,902.79 CNY | 81,064,038.97 CNY | -181.62 | | Indicator | Current Period End | Prior Year End | Change from Prior Year End (%) | | Net Assets Attributable to Shareholders of Listed Company | 3,962,651,546.60 CNY | 3,929,834,064.91 CNY | 0.84 | | Total Assets | 6,026,759,396.69 CNY | 6,369,720,116.09 CNY | -5.38 | | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | Basic Earnings Per Share (CNY/share) | 0.0252 | 0.0246 | 2.44 | | Diluted Earnings Per Share (CNY/share) | 0.0253 | 0.0249 | 1.61 | | Basic EPS after Non-Recurring Gains/Losses (CNY/share) | 0.0168 | 0.0157 | 7.01 | | Weighted Average Return on Net Assets (%) | 1.42 | 1.41 | Increase of 0.01 percentage points | | Weighted Average Return on Net Assets after Non-Recurring Gains/Losses (%) | 0.95 | 0.91 | Increase of 0.04 percentage points | - Total non-recurring gains and losses amounted to CNY 18,592,821.98, primarily including wealth management income from idle funds of CNY 22,300,167.35 and government subsidies of CNY 3,973,631.90[24][25] Section III Management Discussion and Analysis This section discusses the company's operating performance in the first half of 2025, including industry analysis, main business development, core competitiveness, key financial changes, and investment status I. Description of the Company's Industry and Main Business Operations during the Reporting Period This section analyzes the current status and future outlook of the company's paper and pulp industries, detailing its main businesses, products, and operating model - From January to June 2025, the national paper and paper products industry saw operating revenue decrease by 2.3% year-on-year and total profit decrease by 21.4% year-on-year, indicating significant overall industry pressure[26] - Pressure in the paper industry primarily stems from weak demand recovery (due to a sluggish real estate market), structural oversupply (overcapacity, impact of imported paper), and persistent cost pressures[26] - The company has become a state-controlled listed company integrating pulp making, paper manufacturing, cogeneration, alkali recovery, carton and paper bag manufacturing, pharmaceuticals, optoelectronics, and forestry development[29] - The company's flagship product, sack paper, has been recognized as a manufacturing single-item champion product, holding the number one market share nationwide; bamboo dissolving pulp is the first and only dissolving pulp product in China made from moso bamboo[29] II. Discussion and Analysis of Operations This section summarizes the company's operating performance and key countermeasures in the first half of 2025, showing a decrease in operating revenue but a slight increase in net profit attributable to the parent company - In the first half of 2025, the company achieved consolidated operating revenue of CNY 1,210.15 million, a year-on-year decrease of 15.27%; net profit attributable to shareholders of the parent company was CNY 56.08 million, a year-on-year increase of 1.74%[34] - The company effectively reduced procurement costs and ensured production needs by optimizing procurement strategies, strengthening market analysis, and deepening supply chain collaboration[35] - The company flexibly adjusted its market strategy, stabilized the existing sack paper market, explored incremental opportunities in food packaging paper, and accelerated the development and application of bamboo-wood blended products[36] - Subsidiary Shenzhen Hengbaotong turned profitable, with 400G products entering small-batch trial production and 800G optical modules completing design and entering sample trial production[39] III. Analysis of Core Competencies during the Reporting Period This section outlines the company's core competencies in talent and management, integrated forest-pulp-paper operations, industrial chain synergy, green resource utilization, technology and innovation, brand reputation, standardized management, and environmental governance - The company has been deeply involved in pulp and paper manufacturing for nearly 70 years, accumulating over 500 professional technical personnel, and is advancing the intelligent upgrade of its ERP system and the second phase of MES construction[40] - The company is a leading enterprise in China that pioneered integrated forest-pulp-paper development, possessing multiple modern pulp and paper production lines and supporting systems, with existing raw material forest bases covering nearly 400,000 mu[40] - The company successfully developed and produced bamboo dissolving pulp products, becoming the only large-scale bamboo dissolving pulp producer nationwide[44] - The company has passed certifications for ISO9001, ISO14001, ISO22000, ISO50001, ISO45001, ISO37301, and other standard systems, and was awarded the 'National Safety Production Standardization Level II Enterprise' certificate[45] IV. Key Operating Performance during the Reporting Period This section analyzes the reasons for changes in financial statement items, the impact of non-core businesses on profit, and the asset-liability and investment status during the reporting period 1. Analysis Table of Changes in Financial Statement Items - Changes in operating revenue and operating costs were primarily due to a year-on-year decrease in the sales volume and a decline in selling prices of the company's pulp and paper products during the reporting period[48] - Net cash flow from operating activities decreased by 181.62% year-on-year, mainly due to a year-on-year decrease in deposits and guarantees received and an increase in cash paid for goods purchased[48] - Net cash flow from investing activities significantly increased year-on-year, primarily due to a year-on-year decrease in cash paid for the acquisition of fixed assets and intangible assets[48] 2. Detailed Explanation of Significant Changes in the Company's Business Type, Profit Structure, or Sources of Profit during the Current Period - No significant changes occurred in the company's business type, profit structure, or sources of profit during the current period[49] 3. Analysis of Assets and Liabilities Items Causing Significant Profit Changes from Non-Core Business | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 9,297,445.18 | 3,762,758.78 | 147.09 | Primarily due to a year-on-year increase in cash management income from matured products during the reporting period | | Gains from Changes in Fair Value | 13,498,006.44 | 19,785,285.35 | -31.78 | Primarily due to a year-on-year decrease in large negotiable certificate of deposit income recognized on an accrual basis during the reporting period | | Asset Impairment Losses | -5,813,344.21 | 294,898.97 | -2,071.30 | Primarily due to a decrease in the net realizable value of inventory and an increase in provision for inventory depreciation during the reporting period | - Receivables at the end of the period increased by 158.20% compared to the end of the previous year, primarily because the sales payment cycle within the customer credit period had not yet matured during the reporting period[51] - Notes payable at the end of the period decreased by 57.27% compared to the end of the previous year, primarily due to the company's repayment of matured bank acceptance bills during the reporting period[52] - Employee compensation payable at the end of the period increased by 64.16% compared to the end of the previous year, primarily due to an increase in salaries and welfare expenses payable by the company at the end of the reporting period[52] 4. Analysis of Investment Status - The company established Fujian Qingshan Forestry Development Co., Ltd. with an investment of CNY 90 million, holding a 50% stake, which has completed industrial and commercial registration and is operating normally[56] - The company suspended the original fund-raising project '500,000 tons/year Food Packaging Base Paper Technical Transformation Project' and changed it to 'Alkali Recovery Technical Transformation Project' and an capital increase in Narcissus Pharmaceutical for the 'Fengyoujing Workshop Expansion and New Oral Solid Dosage and Special Medical Food Workshop Project'[57] - The Alkali Recovery Technical Transformation Project was completed and reached its intended usable state in 2024, closed on December 31, 2024, with a cumulative use of raised funds of CNY 590.2617 million[61] - The Narcissus Pharmaceutical Fengyoujing Workshop Expansion and New Oral Solid Dosage and Special Medical Food Workshop Project progressed slowly, mainly due to the delayed approval of the relocation compensation plan and setbacks in outsourced R&D for oral solid preparations, leading the company to decide to suspend its implementation[63] - The company will use the remaining raised funds of CNY 642.5160 million after the change in fund-raising projects to permanently supplement working capital[65] - Non-raised fund investment projects include environmental improvement projects, pressing system renovation projects, and the 200,000 tons/year bamboo pulp technical transformation project (construction has started, expected to be completed in the first half of 2026)[66] 5. Significant Asset and Equity Sales - The company had no significant asset or equity sales during the reporting period[67] 6. Analysis of Major Holding and Participating Companies Overview of Major Holding and Participating Companies | Company Name | Main Business | Operating Revenue (CNY '0,000) | Operating Profit (CNY '0,000) | Net Profit (CNY '0,000) | | :--- | :--- | :--- | :--- | :--- | | Zhangzhou Narcissus Pharmaceutical Co., Ltd. | Fengyoujing, Wuji Paste, and flavors | 18,534.42 | 3,330.68 | 2,836.84 | | Shenzhen Hengbaotong Optoelectronics Co., Ltd. | Optoelectronic devices | 9,121.18 | 120.44 | 209.90 | | Shenzhen Longgang MinHuan Industrial Co., Ltd. | Industrial paper, papermaking raw materials | 13,858.28 | -545.34 | -545.33 | | Fujian Qingshan Forestry Development Co., Ltd. | Forest cultivation, bamboo harvesting and transportation | 589.33 | 48.01 | 47.83 | - Zhangzhou Narcissus Pharmaceutical Co., Ltd.'s operating profit decreased by 10.30% year-on-year, mainly due to a year-on-year decrease in sales of Fengyoujing products[69] - Shenzhen Hengbaotong Optoelectronics Co., Ltd.'s operating profit increased by 61.85% year-on-year, mainly due to a year-on-year increase in sales of optical module products from its OEM/ODM business[69] 7. Information on Structured Entities Controlled by the Company - The company had no controlled structured entities during the reporting period[70] V. Other Disclosures This section discloses potential risks faced by the company, including macroeconomic policies, industry competition, environmental protection, and raw material/energy price fluctuations - The company faces risks from changes in macroeconomic policies, intensified industry competition, stricter environmental protection requirements, and fluctuations in raw material and energy prices[70][72][73][74] - The company actively implemented the 'Quality Improvement, Efficiency Enhancement, and Return Focus' action plan, focusing on core business operations, advancing the 200,000 tons/year bamboo pulp technical transformation, and accelerating the development and application of bamboo-wood blended products[76] - The company implemented a 2024 annual cash dividend, distributing a cash dividend of CNY 0.012 per share (tax inclusive), with the total dividend accounting for 31.90% of the net profit attributable to shareholders of the listed company for the year[77] - The company cancelled 52,562,760 shares remaining in the share repurchase special securities account after deducting those used for equity incentives, and correspondingly reduced its registered capital[77] - The company enhanced its governance level by standardizing the operations of the 'three meetings', strengthening independent directors' performance, continuously improving its compliance system, and deepening state-owned enterprise reform[78] Section IV Corporate Governance, Environment, and Society This section reports on the company's corporate governance, environmental, and social responsibilities, including board changes, profit distribution, equity incentives, environmental tax, and rural revitalization efforts - There were no changes in the company's directors, supervisors, or senior management during the reporting period[80] - The proposed semi-annual profit distribution plan is 'No', with no plans for bonus shares, dividends, or capital increase from reserves[80] - Due to the company's 2024 performance not meeting assessment requirements and the passing of one incentive recipient, the company repurchased and cancelled 12,428,300 restricted shares from the 2024 plan[81] - The company has been included in the list of enterprises required to disclose environmental information by law, and paid CNY 0.551 million in environmental taxes in the first half of 2025[83] - The company continued to promote the effective integration of consolidating poverty alleviation achievements with rural revitalization, upgraded the 'Village-Enterprise Joint Construction, Agriculture-Bamboo Joint Win' model, and donated CNY 0.048 million to local rural beautification projects[84] Section V Significant Matters This section details the company's fulfillment of commitments, progress of significant litigation and arbitration matters, and other important events such as the joint venture for bamboo industry development, participation in a fusion fund, 2024 annual profit distribution, and gratuitous transfer of controlling shareholder equity I. Fulfillment of Commitments This section discloses the fulfillment of commitments by the company's actual controller, shareholders, related parties, and the company itself during or continuing into the reporting period, all of which were promptly and strictly fulfilled - Fujian Industrial Holding Group Co., Ltd., the company's indirect controlling shareholder, committed to ensuring the listed company's independence in assets, personnel, finance, business, and organization[86] - Fujian Industrial Holding Group Co., Ltd. committed to avoiding businesses and operating activities that constitute or may constitute horizontal competition with the listed company[86] - The company committed that wealth management products invested with temporarily idle raised funds shall not be pledged, and dedicated settlement accounts for products shall not hold non-raised funds or be used for other purposes[88] II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties during the Reporting Period This section states that there were no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - There were no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[90] III. Irregular Guarantees This section states that there were no instances of the company providing external guarantees in violation of prescribed decision-making procedures during the reporting period - There were no instances of the company providing external guarantees in violation of prescribed decision-making procedures during the reporting period[90] IV. Semi-Annual Report Audit Status This section states that this semi-annual report is unaudited - This semi-annual report is unaudited[5] V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Previous Year's Annual Report This section states that the company's previous year's annual report did not involve matters related to non-standard audit opinions - There were no changes or handling of matters related to non-standard audit opinions in the company's previous year's annual report[91] VI. Matters Related to Bankruptcy Reorganization This section states that there were no matters related to bankruptcy reorganization during the reporting period - There were no matters related to bankruptcy reorganization during the reporting period[91] VII. Significant Litigation and Arbitration Matters This section discloses the progress of significant litigation and arbitration matters during the reporting period, including subsidiary operating contract disputes, R&D contract disputes, and patent invalidation requests - In the operating contract dispute between holding subsidiary Fujian Taining Qingshan Forest Farm and Nanping Jianyang Shifeng Wood Co., Ltd., the court's final judgment ruled in favor of the subsidiary, and the case has entered enforcement proceedings and is currently under retrial[91] - In the R&D contract dispute between Narcissus Pharmaceutical, Wuji Pharmaceutical, and Beijing Xinkaiyuan Pharmaceutical Technology Co., Ltd., the subsidiary won the case and it is currently in compulsory enforcement[92] - One of the company's invention patents concerning an integrated ultrasonic pulping-bleaching process was declared invalid by the National Intellectual Property Administration; the case was heard on August 7, 2025, and the judgment has not yet been received[93][94] VIII. Alleged Violations, Penalties, and Rectification of the Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers This section states that during the reporting period, the company, its directors, supervisors, senior management, controlling shareholders, and actual controllers were not involved in alleged violations, penalties, or rectification situations - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholders, and actual controllers were not involved in alleged violations, penalties, or rectification situations[95] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers during the Reporting Period This section states that during the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or significant overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or significant overdue debts[95] X. Significant Related-Party Transactions This section discloses the company's daily operating related-party transactions during the reporting period, including procurement of goods/acceptance of services and sales of goods/provision of services, as well as other significant related-party transactions - The company has reviewed and announced the related-party transaction data, related parties, pricing basis and policies, and the necessity of related-party transactions for the 2025 annual ordinary related-party transactions[96] Partial Daily Related-Party Transactions Not Disclosed in Interim Announcements | Related Party | Type of Related-Party Transaction | Content of Related-Party Transaction | Related-Party Transaction Amount (CNY) | | :--- | :--- | :--- | :--- | | Fujian Jinhuang Environmental Protection Technology Co., Ltd. | Acceptance of Services | Environmental governance projects | 723,250.00 | | Fujian Qing'an Engineering Construction Co., Ltd. | Acceptance of Services | Engineering construction projects | 3,361,830.00 | | Fujian Salt Industry Import and Export Co., Ltd. | Purchase of Goods | Edible oil for employee welfare | 551,950.00 | | Fujian Jinghua Biotechnology Co., Ltd. | Purchase of Goods | Handmade soap, etc. | 611,505.00 | | Zhongtan (Fujian) Ecological Technology Co., Ltd. | Acceptance of Services | ESG consulting services, etc. | 229,000.00 | - The company signed a 'Full-Process Engineering Consulting Contract for the 200,000 tons/year Bamboo Pulp Technical Transformation Project' with related party Fujian Provincial Architectural Light Industry Design Institute Co., Ltd., with a contract amount of CNY 4.5 million[100] XI. Significant Contracts and Their Fulfillment This section discloses the fulfillment of significant contracts by the company during the reporting period, primarily involving the EPC general contracting agreement for the 200,000 tons/year bamboo pulp technical transformation project - The company signed the 'Fujian Qingshan Paper Co., Ltd. 200,000 tons/year Bamboo Pulp Technical Transformation Project Design, Procurement, and Construction (EPC) General Contracting Agreement' with China Light Industry Changsha Engineering Co., Ltd., with a total contract amount of CNY 352 million[102] XII. Explanation of Progress in the Use of Raised Funds This section details the overall use of the company's raised funds, including project specifics and changes, and the use of idle raised funds for cash management Overall Use of Raised Funds | Source and Date of Raised Funds | Total Raised Funds (CNY '0,000) | Net Raised Funds (1) (CNY '0,000) | Cumulative Investment as of Reporting Period End (4) (CNY '0,000) | Cumulative Investment Progress (%) (4)/(1) | | :--- | :--- | :--- | :--- | :--- | | Issuance of Shares to Specific Objects Sep 22, 2016 | 210,000.00 | 205,176.19 | 178,980.42 | 87.23 | | Total | 210,000.00 | 205,176.19 | 178,980.42 | / | - The company has suspended the implementation of the original fund-raising project '500,000 tons/year Food Packaging Base Paper Technical Transformation Project' and changed it to 'Alkali Recovery Technical Transformation Project' and 'Fengyoujing Workshop Expansion and New Oral Solid Dosage and Special Medical Food Workshop Project', with the remaining raised funds used to permanently supplement working capital[105] - The Alkali Recovery Technical Transformation Project was completed and reached its intended usable state in 2024, closed on December 31, 2024, with a cumulative use of raised funds of CNY 590.2617 million[61] - The Narcissus Pharmaceutical Fengyoujing Workshop Expansion and New Oral Solid Dosage and Special Medical Food Workshop Project progressed slowly, with an investment progress of only 0.82%, leading the company to decide to suspend its implementation[109] - As of June 30, 2025, the company had transferred CNY 505 million from its special fund-raising account to purchase cash management products, with a cash management balance of CNY 505 million at the end of the period[59][112] XIII. Explanation of Other Significant Matters This section discloses other important matters that occurred during the reporting period, including equity integration, capital contribution to a fusion fund, annual profit distribution, equity transfer, and subsidiary name change - The company has completed the equity integration of its holding subsidiary Zhongzhu (Fujian) Forestry Development Co., Ltd.; the company no longer directly holds Zhongzhu's equity, which is now held by its holding subsidiary Fujian Qingshan Forestry Development Co., Ltd. with a 90% stake[113] - The company invested CNY 50 million to participate in the establishment of Fujian State-owned Assets Integration Equity Investment Partnership (Limited Partnership), with CNY 5 million contributed as of the end of the reporting period[114] - The 2024 annual profit distribution was completed on May 26, 2025, distributing a cash dividend of CNY 0.012 per share (tax inclusive) to all shareholders[115] - The 100% equity of Fujian Light Industry (Holdings) Co., Ltd., the company's controlling shareholder, was gratuitously transferred to Fujian Industrial Holding Group Co., Ltd., changing the company's indirect controlling shareholder to Fujian Industrial Holding Group Co., Ltd., but the controlling shareholder and actual controller remained unchanged[116] - The company's wholly-owned subsidiary Guangzhou Qingshan Paper Packaging Materials Co., Ltd. was renamed Guangdong Qingshan Paper Packaging Materials Co., Ltd. and its address was changed[117] Section VI Share Changes and Shareholder Information This section discloses the company's share capital changes, restricted share changes, and shareholder information during the reporting period, showing a dominant position of state-owned legal entities among top shareholders I. Share Capital Changes This section states that the company's total number of shares and share capital structure remained unchanged during the reporting period, but the total share capital decreased after the reporting period due to the repurchase and cancellation of restricted shares from equity incentives - During the reporting period, there were no changes in the company's total number of shares or share capital structure[119] - After the reporting period, due to the repurchase and cancellation of 12,428,300 restricted shares from the 2024 plan, the company's total share capital decreased from 2,253,255,047 shares to 2,240,826,747 shares[121] - This cancellation will not impact financial indicators such as earnings per share and net assets per share[122] II. Shareholder Information This section discloses the total number of shareholders, top ten shareholders, and top ten unrestricted shareholders as of the end of the reporting period, showing a dominant position of state-owned legal entities - As of the end of the reporting period, the total number of common shareholders was 97,187[124] Partial Holdings of Top Ten Shareholders | Shareholder Name | Number of Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Fujian Energy Group Co., Ltd. | 220,338,982 | 9.78 | State-owned Legal Entity | | Fujian Light Industry (Holdings) Co., Ltd. | 193,673,889 | 8.60 | State-owned Legal Entity | | Fujian Salt Industry Group Co., Ltd. | 180,064,233 | 7.99 | State-owned Legal Entity | | Fujian Jinhuang Trading Co., Ltd. | 53,204,102 | 2.36 | State-owned Legal Entity | - Among the top ten shareholders, Fujian Salt Industry Group Co., Ltd. and Fujian Jinhuang Trading Co., Ltd. are controlling subsidiaries of Fujian Light Industry (Holdings) Co., Ltd. Fujian Energy Group Co., Ltd. and Fujian Light Industry (Holdings) Co., Ltd. signed a 'Concerted Action Agreement'[127] - Total restricted shares at period end amounted to 40,926,000 shares, primarily shares granted under the 2024 Restricted Stock Incentive Plan, with lock-up periods of 24, 36, and 48 months[123][128][129] III. Information on Directors, Supervisors, and Senior Management This section discloses the changes in shareholdings of current and resigned directors, supervisors, and senior management during the reporting period, with some senior executives' shareholdings decreasing due to restricted share repurchases Shareholdings of Directors, Supervisors, and Senior Management at Period End | Name | Position | Shares Held at Beginning of Period | Shares Held at End of Period | | :--- | :--- | :--- | :--- | | Lin Xiaohe | Chairman | 846,000 | 846,000 | | Yu Zongyuan | Director, General Manager | 846,000 | 846,000 | | Pan Qixing | Board Secretary | 692,000 | 692,000 | | Yu Jianming | Financial Controller | 692,000 | 692,000 | - Due to the company's 2024 performance not meeting the performance assessment requirements of the restricted stock incentive plan, the company repurchased and cancelled corresponding restricted shares that had been granted but not yet unlocked, resulting in a corresponding decrease in the shareholdings of directors and senior management[132][133] IV. Changes in Controlling Shareholder or Actual Controller This section states that there were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder or actual controller during the reporting period[134] V. Information on Preferred Shares This section states that there was no information related to preferred shares during the reporting period - There was no information related to preferred shares during the reporting period[134] Section VII Bond-Related Information This section states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[135] - The company has no convertible corporate bonds[135] Section VIII Financial Report This section includes the company's consolidated and parent company financial statements for the first half of 2025, comprising balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes to the financial statements I. Audit Report This section states that this semi-annual report is unaudited - This semi-annual report is unaudited[5] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were CNY 6,026,759,396.69, total liabilities were CNY 1,680,295,914.75, and total owners' equity was CNY 4,346,463,481.94[140] - The consolidated income statement shows that from January to June 2025, the company's total operating revenue was CNY 1,210,150,542.18, net profit was CNY 65,339,482.65, and net profit attributable to shareholders of the parent company was CNY 56,078,994.23[147][148] - The consolidated cash flow statement shows that from January to June 2025, net cash flow from operating activities was CNY -66,164,902.79, net cash flow from investing activities was CNY 96,569,894.77, and net cash flow from financing activities was CNY -132,788,266.79[152] III. Company Basic Information This section outlines Fujian Qingshan Paper Co., Ltd.'s historical evolution, main business, product characteristics, subsidiary information, technological advantages, and honors, emphasizing its leading position as a state-controlled listed company in the pulp and paper industry and its diversified development - Fujian Qingshan Paper Co., Ltd., established in 1958 and listed in 1997, has become a state-controlled listed company integrating pulp making, paper manufacturing, cogeneration, alkali recovery, carton and paper bag manufacturing, pharmaceuticals, optical devices, optical modules, and forestry development[163] - The company's main products include 'Qingshan Brand' series extensible sack paper, refined kraft packaging paper, dissolving pulp, bamboo-wood pulp, Fengyoujing, optical modules, etc., with sack paper series products holding the number one market share nationwide[164] - The company possesses a provincial-level enterprise technology center, over 500 professional technical personnel, approximately 270 independent intellectual property patents, and has passed multiple international management system certifications[165] IV. Basis of Financial Statement Preparation This section states that the company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, its application guidelines, interpretations, and other relevant regulations, on a going concern basis, using historical cost measurement, and providing for impairment when assets are impaired - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, its application guidelines, interpretations, and other relevant regulations[166] - These financial statements are presented on a going concern basis, with accounting based on the accrual method, and, except for certain financial instruments, are measured at historical cost[167] V. Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for financial instruments, inventories, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax assets/liabilities, and leases - Upon initial recognition, the company classifies financial assets into three categories based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss for the current period[184] - The company's inventories are classified into raw materials, work-in-progress, finished goods, etc., valued using the weighted average method upon issuance, measured at the lower of cost and net realizable value, and provisions for inventory depreciation are made[206][207] - The company depreciates fixed assets using the straight-line method, with depreciation periods of 25-38 years for buildings and structures, and 10-14 years for machinery and equipment[216][217] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the relevant goods or services, with specific methods for domestic sales, export sales, pharmaceutical product sales, optoelectronic product sales, timber sales, and electromechanical repair and installation services[244][245][246][247][248] - The company performs impairment accounting and recognizes loss provisions for items such as notes receivable, accounts receivable, and other receivables based on expected credit losses[191][193][194][195][196] VI. Taxes This section discloses the company's main tax categories and rates, and details the income tax preferential policies enjoyed by subsidiaries as high-tech enterprises, small low-profit enterprises, and for agricultural, forestry, animal husbandry, and fishery projects Main Tax Categories and Rates | Tax Category | Taxable Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable value-added amount | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Amount of VAT payable | 7%, 5% | | Education Surcharge | Amount of VAT payable | 5% | | Corporate Income Tax | Taxable income | 25%, 24%, 20%, 15% | - Subsidiaries Shenzhen Hengbaotong Optoelectronics Co., Ltd., Dongguan Hengbaotong Optoelectronics Co., Ltd., Zhangzhou Narcissus Pharmaceutical Co., Ltd., Zhangzhou Wuji Pharmaceutical Co., Ltd., and Narcissus Pharmaceutical (Jian'ou) Co., Ltd. all enjoy a 15% high-tech enterprise income tax rate[269][270] - Some subsidiaries meeting the criteria for small low-profit enterprises calculate taxable income at 25% and pay corporate income tax at a 20% rate, while also enjoying a 50% reduction in urban maintenance and construction tax, stamp duty, education surcharge, and local education surcharge[271][272] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various assets, liabilities, owners' equity, income, and expense items in the consolidated financial statements, including period-end balances, beginning-of-period balances, current period changes, and explanations for changes - Cash and cash equivalents balance at period end was CNY 554,644,315.46, with restricted funds primarily for opening bills and letters of credit guarantees[273][274] - Trading financial assets primarily include large negotiable certificates of deposit and structured deposits, with a period-end balance of CNY 1,662,203,545.15[276] - Accounts receivable balance at period end was CNY 268,595,469.98, of which CNY 66,917,900.11 was individually provided for bad debts[286][287] - Fixed assets book value at period end was CNY 1,699,345,783.63, and intangible assets book value at period end was CNY 162,092,322.34[338][354] - At the end of the reporting period, the company's major restricted assets included cash and cash equivalents, receivables financing, fixed assets, and intangible assets, primarily used for bank acceptance bills, letters of credit guarantees, and loan collateral[380][381][382][383] VIII. Research and Development Expenses This section discloses the company's R&D expenditures during the reporting period, including expensed and capitalized R&D, with some R&D projects meeting capitalization criteria R&D Expenditures by Nature of Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 12,720,067.39 | 10,719,535.44 | | R&D Institution Service Fees | 3,190,641.50 | 9,283,018.86 | | Material Consumption | 9,874,001.88 | 9,509,833.94 | | Depreciation | 1,849,855.17 | 2,100,026.27 | | Other | 1,676,388.11 | 1,027,735.10 | | Total | 29,310,954.05 | 32,640,149.61 | | Of which: Expensed R&D | 25,786,144.03 | 23,264,175.61 | | Capitalized R&D | 3,524,810.02 | 9,375,974.00 | - Significant capitalized R&D projects include the technical development of 400G optical modules and fusidic acid cream, with the latter having obtained a drug registration approval from the National Medical Products Administration on July 22, 2025[136][137] IX. Changes in Consolidation Scope This section states that there were no non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control during the reporting period - There were no non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control during the reporting period[137][138] X. Interests in Other Entities This section details the company's interests in subsidiaries, joint ventures, and associates, including the composition of the enterprise group, financial information of significant non-wholly-owned subsidiaries, and summarized financial information of insignificant joint ventures and associates Partial Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (CNY '0,000) | Business Nature | Shareholding Ratio (%) Direct | | :--- | :--- | :--- | :--- | :--- | | Zhangzhou Narcissus Pharmaceutical Co., Ltd. | Zhangzhou City, Fujian Province | 22,100.00 | Pharmaceuticals | 70.00 | | Shenzhen Hengbaotong Optoelectronics Co., Ltd. | Shenzhen City, Guangdong Province | 10,000.00 | Optoelectronics | 65.15 | | Shenzhen Longgang MinHuan Industrial Co., Ltd. | Huizhou City, Guangdong Province | 6,000.00 | Paper products processing | 100.00 | | Fujian Qingshan Forestry Development Co., Ltd. | Fuzhou City, Fujian Province | 18,000.00 | Forestry | 50.00 | - Significant non-wholly-owned subsidiary Zhangzhou Narcissus Pharmaceutical Co., Ltd. has a 30.00% minority interest, with profit attributable to minority shareholders of CNY 8,354,177.02 for the current period[139][140] - The company originally held a 51% equity stake in subsidiary Zhongzhu (Fujian) Forestry Development Co., Ltd., which has been transferred to another holding subsidiary, Fujian Qingshan Forestry Development Co., Ltd., with the latter ultimately holding a 90% stake in Zhongzhu[141] - The total book value of investments in insignificant associates was CNY 78,279,445.97, with the total net profit calculated based on shareholding ratio for the current period being CNY 878,001.85[142] XI. Government Grants This section discloses the company's government grant-related liability items and the amount of government grants recognized in profit or loss for the current period Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (CNY) | New Grants for Current Period (CNY) | Transferred to Other Income for Current Period (CNY) | Ending Balance (CNY) | Reason for Formation | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 4,438,018.15 | 3,611,528.00 | 859,500.81 | 7,190,045.34 | Asset-related | Government Grants Recognized in Profit or Loss for the Current Period | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Asset-Related | 859,500.81 | 932,097.14 | | Income-Related | 3,114,131.09 | 3,639,246.10 | | Total | 3,973,631.90 | 4,571,343.24 | XII. Risks Related to Financial Instruments This section describes the main financial instrument risks faced by the company, including credit risk, liquidity risk, and market risk (interest rate risk and exchange rate risk), and explains the policies and measures taken by the company to manage these risks - The company's main financial instruments include cash and cash equivalents, notes receivable, accounts receivable, trading financial assets, short-term borrowings, etc., primarily facing credit risk, liquidity risk, and market risk (interest rate risk and exchange rate risk)[497][500][501] - The company controls credit risk by assessing customer creditworthiness and regularly monitoring credit records, with accounts receivable from the top five customers accounting for 31.13% of the total[499] - The company manages liquidity risk by maintaining sufficient cash and cash equivalents, monitoring bank borrowing utilization, and rolling forecasts of cash flows[500] - The company closely monitors changes in interest rates and exchange rates, matching foreign currency income with foreign currency expenditures as much as possible to reduce exchange rate risk[501] - The company monitors its capital structure based on the asset-liability ratio (27.88% at period end), aiming to ensure continuous operation and provide returns to shareholders[502][503] XIII. Disclosure of Fair Value This section discloses the period-end fair value of assets and liabilities measured at fair value, explaining the valuation techniques and significant parameters used for continuous and non-continuous Level 2 and Level 3 fair value measurement items Partial Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,662,203,545.15 | | 1,662,203,545.15 | | Other Equity Instrument Investments | | 15,000,000.00 | 15,000,000.00 | | Receivables Financing | 411,464,173.36 | | 411,464,173.36 | | Other Non-Current Financial Assets | | 5,000,000.00 | 5,000,000.00 | | Total Assets Continuously Measured at Fair Value | 2,073,667,718.51 | 20,000,000.00 | 2,093,667,718.51 | - For purchased large negotiable certificates of deposit and structured deposits, fair value is determined using valuation techniques based on market quotes or dealer quotes[508] - For equity investments where there is no control, joint control, or significant influence, and no active market exists, fair value is determined using the asset-based approach[509] - The book value of the company's financial assets and liabilities not measured at fair value differs very little from their fair value[510] XIV. Related Parties and Related-Party Transactions This section details the company's parent company, subsidiaries, joint ventures, associates, and other related parties, listing the specifics of related-party transactions for purchasing/accepting services, selling/providing services, related-party leases, and other related-party transactions during the reporting period - The company's controlling shareholder is Fujian Light Industry (Holdings) Co., Ltd., and the ultimate controlling party is the Fujian Provincial State-owned Assets Supervision and Administration Commission[512][514] - On July 25, 2025, the company's indirect controlling shareholder changed to Fujian Industrial Holding Group Co., Ltd., but the controlling shareholder and actual controller remained unchanged[514] Partial Related-Party Transactions for Purchase of Goods/Acceptance of Services | Related Party | Content of Related-Party Transaction | Current Period Amount (CNY) | | :--- | :--- | :--- | | Fujian Jinhuang Environmental Protection Technology Co., Ltd. | Bleaching and wood chip warehouse waste gas treatment project | 723,250.00 | | Fujian Qing'an Engineering Construction Co., Ltd. | Engineering projects | 3,361,830.00 | | Fujian Fowei Co., Ltd. | Lime powder raw material | 9,405,204.11 | Partial Related-Party Transactions for Sale of Goods/Provision of Services | Related Party | Content of Related-Party Transaction | Current Period Amount (CNY) | | :--- | :--- | :--- | | Zhejiang Zhaoshan Packaging Co., Ltd. | Paper products | 14,092,140.15 | | Fujian Jinghua Biotechnology Co., Ltd. | Fengyoujing, Wuji Paste, and other products | 59,031.00 | - Both the company's indirect controlling shareholder and controlling shareholder committed to ensuring the listed company's independence, avoiding horizontal competition, and reducing related-party transactions[531] XV. Share-Based Payment This section discloses the company's equity-settled share-based payment information, including grantees, fair value determination method for equity instruments on the grant date, basis for determining the number of exercisable equity instruments, and cumulative amount recognized in capital reserve - The company's equity-settled share-based payment recipients are management personnel, with the fair value of equity instruments on the grant date determined by the difference between the closing price on the grant date and the grant price[535] - The cumulative amount of equity-settled share-based payments recognized in capital reserve for the current period was CNY 4,315,366.02[535] - Total share-based payment expenses for the current period amounted to CNY 4,315,366.02[537] XVI. Commitments and Contingencies This section discloses the company's significant external commitments existing at the balance sheet date, primarily involving commitments from the company's actual controller, shareholders, related parties, and the company itself regarding independence, avoidance of horizontal competition, and related-party transactions - Fujian Industrial Holding Group Co., Ltd., the company's indirect controlling shareholder, committed to ensuring the listed company's independence in assets, personnel, finance, business, and organization, avoiding horizontal competition, and reducing related-party transactions[538][531] - Fujian Light Industry (Holdings) Co., Ltd., the company's controlling shareholder, committed to avoiding horizontal competition and reducing related-party transactions[538][531] XVII. Post-Balance Sheet Events This section states that there were no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events after the reporting period - There were no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events after the reporting period[540] XVIII. Other Significant Matters This section states that the company had no prior period accounting error corrections, significant debt restructurings, asset exchanges, annuity plans, or discontinued operations. It also discloses the determination basis and accounting policies for the company's nine reportable segments, which are based on industry segments - The company had no prior period accounting error corrections, significant debt restructurings, asset exchanges, annuity plans, or discontinued operations[540] - Based on its internal organizational structure, management requirements, and internal reporting system, the company's business operations are divided into 9 reportable segments, with reportable segments determined based on industry segments[540][541] Partial Financial Information of Reportable Segments | Item | Pulp Industry | Paper Products Processing Industry | Pharmaceutical Industry | Optoelectronics Industry | Forestry Industry | Trading Industry | Electromechanical Repair and Installation Industry | Research and Technical Services Industry | Environmental Protection Industry | Less: Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets (CNY '0,000) | 505,944.42 | 19,668.76 | 80,133.25 | 35,386.00 | 18,177.61 | 8,086.16 | 2,389.31 | 310.90 | 2,245.44 | 69,665.91 | 602,675.94 | | Operating Revenue (CNY '0,000) | 81,646.26 | 13,858.28 | 18,534.42 | 9,121.18 | 818.46 | 3,613.51 | 2,862.78 | 0.00 | 3,200.07 | 12,639.91 | 121,015.05 | | Net Profit (CNY '0,000) | 3,924.48 | -545.33 | 2,836.84 | 209.90 | 22.81 | 82.34 | 59.82 | -37.85 | -13.41 | 5.65 | 6,533.95 | XIX. Notes to Parent Company Financial Statement Items This section provides detailed notes on key items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments - Parent company's accounts receivable book balance at period end was CNY 138,014,431.12, of which CNY 41,909,712.35 was individually provided for bad debts[547][548] - Parent company's other receivables book balance at period end was CNY 42,835,566.84, with intercompany balances accounting for a larger proportion[558][559] - Parent company's investments in subsidiaries had a book value of CNY 566,872,512.08 at period end, and investments in associates and joint ventures had a book value of CNY 78,279,445.97 at period end[567][569] - Parent company's operating revenue for the first half of 2025 was CNY 793,435,011.77, and operating cost was CNY 650,282,608.97[571] - Parent company's investment income for the first half of 2025 was CNY 7,853,422.68, primarily including income from long-term equity investments accounted for using the equity method and investment income from the disposal of trading financial assets[573] XX. Supplementary Information This section provides supplementary information for the company's first half of 2025, including a detailed statement of non-recurring gains and losses, net asset return, and earnings per share, to further enhance financial information disclosure Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -192,643.55 | | Government Grants Recognized in Profit or Loss for the Current Period | 3,973,631.90 | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises and from Disposal of Financial Assets and Liabilities | 22,300,167.35 | | Other Non-Operating Income and Expenses Apart from the Above | 52,779.53 | | Other Income and Expense Items Meeting the Definition of Non-Recurring Gains and Losses | 276.10 | | Less: Income Tax Impact | 5,521,743.37 | | Minority Interest Impact (After Tax) | 2,019,645.98 | | Total | 18,592,821.98 | Return on Net Assets and Earnings Per Share | Return Rate (%) | Basic Earnings Per Share | Diluted Earnings Per Share | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 0.0252 | 0.0253 | | Net Profit Attributable to Common Shareholders of the Company After Non-Recurring Gains and Losses | 0.0168 | 0.0169 |