恒顺醋业(600305) - 2025 Q2 - 季度财报

Section 1: Definitions Definitions This chapter provides definitions of common terms used in the report, including company, regulatory bodies, related parties, and major subsidiaries, ensuring clear understanding of the report content - China Securities Regulatory Commission, Shanghai Stock Exchange, Zhenjiang State-owned Assets Supervision and Administration Commission, Zhenjiang Industrial Investment, and Guokong Group are defined as regulatory and related parties[15] - "Company", "the Company", and "Hengshun Vinegar Industry" refer to Jiangsu Hengshun Vinegar Industry Co., Ltd., controlled by Jiangsu Hengshun Group Co., Ltd[15] - The reporting period spans January 1, 2025, to June 30, 2025[15] Section 2: Company Profile and Key Financial Indicators Company Profile and Key Financial Indicators This chapter presents the company's basic information, contact details, address changes, stock overview, and detailed key accounting data and financial indicators for the first half of 2025, including revenue, net profit, and non-recurring items Company Information This section introduces the company's Chinese name, abbreviation, foreign name, and legal representative - The company's full Chinese name is Jiangsu Hengshun Vinegar Industry Co., Ltd., abbreviated as Hengshun Vinegar Industry[17] - The legal representative is Gao Yinong[17] Contact Person and Contact Information Provides contact details for the company's Board Secretary and Securities Affairs Representative - The Board Secretary is Wei Chenyun, and the Securities Affairs Representative is Li Xuefang[18] - The company's contact address is Hengshun Avenue No. 66, Zhenjiang City, Jiangsu Province[18] Brief Introduction to Changes in Basic Information Explains the company's registered address change in 2022, noting no change in actual location - The company's registered address changed on January 25, 2022, but the actual address remained unchanged[19] - The company's website is www.zjhengshun.com, and its email address is zhengquan@hengshun.cn[19] Brief Introduction to Changes in Information Disclosure and Document Custody Locations Discloses the company's chosen information disclosure channels and report custody locations, with no changes during the reporting period - The company's selected information disclosure newspaper is "Shanghai Securities News", and the report is published on the Shanghai Stock Exchange website www.sse.com.cn**[20](index=20&type=chunk) - The company's semi-annual report is available at the company's Securities Affairs Department and the Shanghai Stock Exchange[20] Company Stock Overview Introduces the listing exchange, stock abbreviation, and stock code of the company's A-shares - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation "Hengshun Vinegar Industry" and stock code "600305"[21] Company's Key Accounting Data and Financial Indicators Details the key accounting data and financial indicators for the first half of 2025, including operating revenue, total profit, net profit attributable to parent company, net cash flow from operating activities, basic earnings per share, and explains non-recurring gains and losses 2025 H1 Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,125,355,659.57 | 1,004,488,986.73 | 12.03 | | Total Profit | 126,291,058.47 | 104,980,295.01 | 20.30 | | Net Profit Attributable to Shareholders of Listed Company | 110,609,474.90 | 93,684,727.55 | 18.07 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 100,078,380.66 | 81,474,295.12 | 22.83 | | Net Cash Flow from Operating Activities | -42,284,801.62 | 194,328,770.52 | -121.76 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 3,326,551,442.99 | 3,318,005,991.12 | 0.26 | | Total Assets (Period-end) | 4,136,469,753.77 | 4,364,251,278.58 | -5.22 | 2025 H1 Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.10 | 0.08 | 25.00 | | Diluted Earnings Per Share (RMB/share) | 0.10 | 0.08 | 25.00 | | Basic Earnings Per Share (Excluding Non-Recurring Items) (RMB/share) | 0.09 | 0.07 | 28.57 | | Weighted Average Return on Net Assets (%) | 3.33 | 2.81 | Increased by 0.52 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 3.01 | 2.44 | Increased by 0.57 percentage points | Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 68,384.11 | | Government grants included in current profit/loss | 2,075,987.63 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 9,139,217.72 | | Other non-operating income and expenses | 944,624.20 | | Non-recurring gains/losses accounted for by associates | 41,804.62 | | Other gains/losses meeting the definition of non-recurring items | 64,547.65 | | Less: Income tax impact | 1,816,213.43 | | Minority interest impact (after tax) | -12,741.74 | | Total | 10,531,094.24 | Net Profit After Deducting Share-Based Payment Impact | Key Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 111,567,292.22 | 91,267,181.19 | 22.24 | Section 3: Management Discussion and Analysis Management Discussion and Analysis This chapter analyzes the condiment industry, the company's market position, products, operating model, and brand strategy, discussing 2025 H1 performance and outlining H2 priorities for core competitiveness, reform, and risk control Overview of the Company's Industry and Main Business During the Reporting Period Elaborates on China's condiment industry trends, Hengshun Vinegar Industry's leading position, main products (vinegar, cooking wine, sauces) and their brewing processes, as well as sales, production, procurement, and brand strategies Industry Overview During the Reporting Period The condiment industry, with stable demand and strong anti-cyclical characteristics, is maturing with increasing concentration, benefiting leading enterprises amidst fierce competition and opportunities in new channels - China's condiment industry has a long history, a huge market size, stable demand, and low sensitivity to economic changes, exhibiting strong anti-cyclical characteristics[32] - The industry shows a significant trend of concentration, with leading enterprises possessing strong brand advantages and channel integration capabilities expected to benefit, as competition shifts towards comprehensive strength including brand power, product quality, marketing capabilities, and standardized management[32] - The condiment industry is experiencing a moderate recovery, with companies accelerating inventory digestion through promotions amidst fierce competition; the development of chain catering and pre-made dishes industries offers opportunities for condiment companies to expand sales channels and integrate online and offline operations[33] Company's Industry Position Hengshun Vinegar Industry, founded in 1840, is a leading Chinese vinegar producer and the first listed vinegar company, representing Zhenjiang balsamic vinegar with top market share and brand recognition - Hengshun Vinegar Industry, founded in 1840, is a representative of Zhenjiang balsamic vinegar, one of China's four famous vinegars, and has been recognized as a "China Well-known Trademark" and "Leading Brand in China's Vinegar Industry"[33] - The company is China's largest vinegar producer and a national key agricultural industrialization leading enterprise, with an annual vinegar output exceeding 300,000 tons, widely sold in 84 countries and regions, and the Hengshun brand consistently ranks first in China's vinegar brand rankings[33] Company's Main Products and Businesses The company's product portfolio includes five major vinegar categories, pure grain brewed cooking wine, and a range of sauces, with 12 patent applications filed and 10 granted during the reporting period - The company's vinegar product system covers five major categories: "balsamic, aged, white, rice, and fruit" vinegars, utilizing "solid-state layered fermentation technique" (a national intangible cultural heritage), and launching high-end products such as vintage vinegar and organic vinegar[35] - Cooking wine products originate from Hengshun's traditional Baihua wine process; in 2024, the 100,000-ton annual yellow wine and cooking wine (Phase II) expansion project was put into operation, and cumulative sales of Hengshun Scallion Ginger Cooking Wine exceeded 100 million bottles[35] - The sauce product matrix covers soy sauce, pickles, sauces, and compound seasonings, actively expanding into the compound seasoning field with the launch of the "one dish, one pack" series[35] - During the reporting period, the company filed 12 patent applications (6 invention patents) and obtained 10 granted patents (2 Chinese invention patents, 1 Japanese invention patent)[36] Company's Main Operating Model The company employs an "offline + online" omni-channel sales strategy, "production based on sales" model with intelligent upgrades, "Sunshine Procurement Platform" for purchasing, and a brand strategy focused on premiumization, nationalization, health, and youthfulness - The sales model deepens "offline + online" omni-channel synergistic development, with offline coverage of over 1,700 dealers nationwide and terminal outlets exceeding 350,000, while online accelerates the layout of social e-commerce and community group buying[36] - The production model is "production based on sales, with production-sales synergy", promoting intelligent and digital transformation through process equipment upgrades, fully utilizing the SAP system, and establishing a 4,500-mu glutinous rice planting base specifically for balsamic and aged vinegars, strengthening full-chain quality control[37] - The procurement model adheres to the principles of "open bidding, legal compliance, transparency, fairness, and justice", relying on the "Sunshine Procurement Platform" to provide public procurement channels[38] - Vinegar (balsamic vinegar, aged vinegar) uses traditional solid-state layered fermentation technology, undergoing over 40 processes and stored for more than 180 days; cooking wine is based on traditional yellow wine, using a double-fermentation process, selecting high-quality rice, and obtaining compound seasoning liquid through advanced extraction equipment[38][39] - The brand strategy is guided by four main strategic lines: "premiumization as foundation, nationalization for breakthrough, health empowerment, and youthfulness for disruption", utilizing CCTV and popular media for dissemination, deeply exploring the health attributes of vinegar, and creating the "721 Vinegar Health Day" IP[39][41] Discussion and Analysis of Operating Performance In H1 2025, the company achieved RMB 1.125 billion in revenue, up 12.03%, and RMB 111 million in net profit, up 18.07%, focusing on core business, reform, and risk control, with plans for a diversified industrial structure in H2 2025 H1 Operating Performance | Indicator | Amount (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 1,125.36 | 12.03 | | Total Profit | 126.29 | 20.3 | | Net Profit Attributable to Shareholders of Listed Company | 110.61 | 18.07 | - The company focused on its core business, enhancing core competitiveness through strengthened brand promotion ("premiumization as foundation, nationalization for breakthrough, health empowerment, and youthfulness for disruption"), improved product system (A+X product matrix), and intensified efforts to release production capacity[42] - The company deepened reforms, advancing marketing model reform (dealer to service provider, distributor pilot), accelerating salary and performance reform (linked to company benefits), and enhancing digital technology empowerment (AI-based "thousand stores, thousand faces" application)[43][44] - The company strengthened regulatory assurance, ensuring food safety control ("full staff participation, full process control, full chain traceability"**), improving internal regulatory system (leveraging internal audit), and strengthening Party conduct and anti-corruption efforts[45] - In the second half of the year, the company will closely monitor key indicators such as revenue and profit, strive to achieve annual operating targets, and promote the creation of an industrial structure with "food manufacturing as the pillar, agricultural and sideline product processing as a feature, and emerging sectors as growth drivers"[45] Analysis of Core Competitiveness During the Reporting Period Hengshun Vinegar Industry, a "China Time-honored Brand" and Zhenjiang balsamic vinegar representative, leverages immense brand value, unique brewing techniques, and a leading R&D and quality management system for significant competitive advantages - The company possesses immense brand value; as a "China Time-honored Brand" and representative of Zhenjiang balsamic vinegar, its vinegar products (especially Hengshun balsamic vinegar) as healthy food have huge future consumption potential, with per capita consumption having at least 3 times or more room for improvement[46][47] - The brewing technique is unique; Zhenjiang Hengshun balsamic vinegar brewing technique is listed as one of the first national intangible cultural heritage items, employing traditional solid-state layered fermentation, with high-end product gross margins exceeding 50%[47] - Leading technology research and development, with 6 provincial-level or above scientific research platforms including a CNAS-certified laboratory and a national-recognized enterprise technology center, having achieved over 70 scientific and technological achievements and more than 20 provincial/ministerial level scientific and technological awards, maintaining an advantage in quality management systems[48] Main Operating Performance During the Reporting Period This section analyzes changes in financial statement items, asset and liability status, and investment situation, including significant non-equity investments and financial assets measured at fair value, and discloses the operating performance of major holding and participating companies Main Business Analysis Detailed analysis of changes and reasons for financial statement items such as operating revenue, operating cost, selling expenses, administrative expenses, financial expenses, and R&D expenses Financial Statement Item Change Analysis | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,125,355,659.57 | 1,004,488,986.73 | 12.03 | Sales revenue growth | | Operating Cost | 693,103,943.38 | 637,368,130.23 | 8.74 | Sales growth and product structure adjustment | | Selling Expenses | 204,194,689.06 | 167,147,091.02 | 22.16 | Increased promotional expenses | | Administrative Expenses | 47,799,880.66 | 52,801,769.21 | -9.47 | Decreased personnel expenses, office expenses, etc. | | Financial Expenses | -324,844.62 | -1,669,364.69 | 80.54 | Decreased interest income | | R&D Expenses | 55,284,925.15 | 42,621,923.02 | 29.71 | Increased investment in product R&D | | Other Income | 13,591,908.39 | 9,885,686.91 | 37.49 | Increased government grants and additional deduction for advanced manufacturing VAT | | Investment Income | -1,951,411.09 | -8,343,167.17 | 76.61 | Increased interest income from time deposits, reduced losses from associates | | Fair Value Change Income | 3,204,356.62 | 9,554,011.16 | -66.46 | Decreased income from wealth management products | | Credit Impairment Loss | -1,908,027.51 | 244,633.78 | -879.95 | Increased provision for doubtful accounts on accounts receivable | | Asset Disposal Income | 83,700.11 | 3,749.41 | 2,132.35 | Increased asset disposal income | | Non-Operating Expenses | 120,997.59 | 10,353.27 | 1,068.69 | Increased fixed asset write-offs | | Net Cash Flow from Operating Activities | -42,284,801.62 | 194,328,770.52 | -121.76 | Increased cash paid for goods purchased and services received, etc. | | Net Cash Flow from Investing Activities | -37,642,007.98 | -146,385,414.75 | 74.29 | Decreased net expenditure on wealth management products | | Net Cash Flow from Financing Activities | -79,828,744.94 | -78,524,776.03 | -1.66 | Partial share repurchase for equity incentive and employee stock ownership plans, payment of some dividends | | Tax Refunds Received | 1,987,835.95 | 3,280,046.87 | -39.40 | Decreased export tax refunds | | Other Cash Received Related to Operating Activities | 21,956,777.24 | 34,835,327.24 | -36.97 | Decreased intercompany receivables | | Cash Paid for Goods Purchased and Services Received | 693,685,436.22 | 500,161,491.05 | 38.69 | Increased payment for goods | | Other Cash Paid Related to Operating Activities | 222,262,156.43 | 169,218,869.86 | 31.35 | Increased payment of various expenses | | Cash Received from Investment Redemption | 1,218,041,412.53 | 690,000,000.00 | 76.53 | Increased redemption of wealth management products | | Cash Received from Investment Income | 5,727,847.23 | 8,418,040.07 | -31.96 | Decreased income from wealth management products | | Net Cash Received from Disposal of Fixed Assets, Intangible Assets, and Other Long-term Assets | 14,253.00 | 66,051.21 | -78.42 | Decreased income from asset disposal | | Cash Paid for Investments | 1,150,000,000.00 | 700,000,000.00 | 64.29 | Increased purchase of wealth management products | | Other Cash Paid Related to Financing Activities | 14,126,187.05 | 1,319,409.47 | 970.64 | Partial share repurchase for equity incentive and employee stock ownership plans | Analysis of Assets and Liabilities Analyzes the composition and changes of the company's period-end assets and liabilities compared to the previous year, focusing on key items like prepayments, other receivables, other equity instruments investment, accounts payable, contract liabilities, and treasury stock Asset and Liability Status Changes | Item Name | Period-end Amount (RMB) | Period-end Proportion of Total Assets (%) | Prior Year-end Amount (RMB) | Prior Year-end Proportion of Total Assets (%) | Change from Prior Year-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 443,644,516.74 | 10.73 | 604,042,706.68 | 13.84 | -26.55 | | Prepayments | 8,667,121.96 | 0.21 | 24,298,477.35 | 0.56 | -64.33 | | Other Receivables | 5,523,385.47 | 0.13 | 1,906,594.33 | 0.04 | 189.70 | | Other Equity Instruments Investment | 23,871,480.43 | 0.58 | 15,268,243.78 | 0.35 | 56.35 | | Fixed Assets | 1,250,301,399.44 | 30.23 | 1,154,107,888.68 | 26.44 | 8.33 | | Construction in Progress | 344,959,345.81 | 8.34 | 411,023,220.44 | 9.42 | -16.07 | | Accounts Payable | 160,723,766.36 | 3.89 | 239,756,658.78 | 5.49 | -32.96 | | Advances from Customers | 452,539.69 | 0.01 | 3,119,985.41 | 0.07 | -85.50 | | Contract Liabilities | 114,288,865.94 | 2.76 | 250,070,824.25 | 5.73 | -54.30 | | Employee Compensation Payable | 27,229,342.77 | 0.66 | 44,856,563.26 | 1.03 | -39.30 | | Lease Liabilities | 1,570,059.10 | 0.04 | 1,059,046.01 | 0.02 | 48.25 | | Treasury Stock | 13,731,238.80 | 0.33 | 23,326,634.00 | 0.53 | -41.13 | - Prepayments decreased by 64.33% year-on-year, mainly due to a decrease in prepaid goods at period-end[51] - Other receivables increased by 189.70% year-on-year, mainly due to an increase in operating intercompany receivables at period-end[52] - Other equity instruments investment increased by 56.35% year-on-year, mainly due to an increase in the fair value of Guoquan equity investment[52] - Accounts payable decreased by 32.96% year-on-year, mainly due to increased payment for goods[52] - Contract liabilities decreased by 54.30% year-on-year, mainly due to a decrease in advances from customers at period-end[54] - Treasury stock decreased by 41.13% year-on-year, mainly due to the repurchase and cancellation of some shares from the equity incentive and employee stock ownership plans during the current period[54] Analysis of Investment Status Discloses the company's financial assets measured at fair value, including balances and changes for trading financial assets, other non-current financial assets, and other equity instruments investment, and explains its role as a cornerstone investor in Guoquan Food's Hong Kong IPO Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Cumulative Fair Value Changes Included in Equity (RMB) | Current Period Purchase Amount (RMB) | Current Period Sale/Redemption Amount (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 534,967,904.09 | -4,644,794.50 | - | 450,000,000.00 | 530,000,000.00 | 450,323,109.59 | | Other Non-Current Financial Assets | 13,689,000.00 | - | - | - | - | 13,689,000.00 | | Other Equity Instruments Investment | 15,268,243.78 | - | 8,603,236.65 | - | - | 23,871,480.43 | | Total | 563,925,147.87 | -4,644,794.50 | 8,603,236.65 | 450,000,000.00 | 530,000,000.00 | 487,883,590.02 | - The company, through a QDII manager-managed product and its controlling shareholder's wholly-owned subsidiary Xinxin (Hong Kong) as a cornerstone investor, participated in the subscription of Guoquan Food (Shanghai) Co., Ltd.'s initial public offering in Hong Kong, with a total subscription amount not exceeding USD 10 million, of which the company subscribed for no more than USD 6.5 million[57] Securities Investment Status | Security Code | Security Name | Initial Investment Cost | Source of Funds | Beginning Book Value (RMB) | Cumulative Fair Value Changes Included in Equity (RMB) | Ending Book Value (RMB) | Accounting Subject | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 02517 | Guoquan | - | Own funds | 15,268,243.78 | 8,603,236.65 | 23,871,480.43 | Other Equity Instruments Investment | Analysis of Major Holding and Participating Companies Lists major subsidiaries and associates impacting company net profit by 10% or more, noting the company's increased stake in Jiangsu Hengshun Shuyang Condiment Co., Ltd. to 100% and the liquidation of Jiangsu Hengshun Compound Condiment Co., Ltd Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhenjiang Hengshun Winery Co., Ltd. | Subsidiary | Food production, sales | 16,000 | 33,978.48 | 28,742.80 | 11,609.74 | 1,696.37 | 1,364.35 | | Hengshun Chongqing Condiment Co., Ltd. | Subsidiary | Vinegar, sauce, condiment production, sales | 17,665 | 24,818.13 | 20,024.80 | 2,276.57 | -64.16 | -55.80 | | Xuzhou Hengshun Wantong Food Brewing Co., Ltd. | Subsidiary | Soy sauce, vinegar, sauce product production, sales | 20,060.127682 | 35,275.82 | 22,751.19 | 3,282.60 | -47.53 | -50.57 | | Shanxi Hengshun Aged Vinegar Co., Ltd. | Subsidiary | Food production; condiment production | 14,000 | 15,821.35 | 14,762.45 | 2,424.63 | 48.78 | 37.70 | | Zhenjiang Hengshun New Condiment Co., Ltd. | Subsidiary | Food production, sales | 2,000 | 7,148.19 | 5,919.16 | 2,954.62 | 53.09 | -17.76 | | Jiangsu Hengshun Shuyang Condiment Co., Ltd. | Subsidiary | Food production; condiment production | 2,500 | 4,577.00 | 4,003.79 | 2,302.67 | 97.71 | 92.55 | - During the reporting period, the company increased its stake in Jiangsu Hengshun Shuyang Condiment Co., Ltd. by 6%, changing its shareholding ratio from 94.00% to 100.00%[63] - Jiangsu Hengshun Compound Condiment Co., Ltd. was liquidated on April 11, 2025, due to business strategy adjustments, and deregistration was completed on May 9, 2025, thus no longer included in the consolidated financial statements[63] Company-Controlled Structured Entities The company, through Guojin Asset Management Xinjin Ganghui No. 6 (QDII) Single Asset Management Plan and related party Xinxin (Hong Kong) Co., Ltd., subscribed for Guoquan Food (Shanghai) Co., Ltd. shares as cornerstone investors, consolidating it as a structured entity - The company, through Guojin Asset Management Xinjin Ganghui No. 6 (QDII) Single Asset Management Plan, acted as a cornerstone investor to subscribe for shares in Guoquan Food (Shanghai) Co., Ltd.'s initial public offering in Hong Kong[65] - Guojin Asset Management Xinjin Ganghui No. 6 (QDII) Single Asset Management Plan is an equity-type single asset management plan, with the company as the sole investor controlling the plan, thus included as a structured entity within the consolidated scope[65] Other Disclosures This section discloses potential risks, including raw material price fluctuations, brand infringement, and food safety control, and outlines the controlling shareholder Hengshun Group's share increase plan Potential Risks The company faces risks from raw material price fluctuations, brand infringement, and food safety control, for which management has developed and implemented contingency plans - The company faces risks from fluctuations in raw material prices (e.g., glutinous rice), which may affect gross profit margin and profitability[66] - The company's brand (Hengshun) faces the risk of infringement, which may lead to reduced consumer trust and impact market sales and performance[66] - The company faces food safety control risks; product quality issues could affect reputation and sales[67] Other Disclosure Matters Controlling shareholder Hengshun Group plans to increase its A-share holdings by RMB 50 million to RMB 100 million through centralized bidding within 12 months from May 24, 2025 - Controlling shareholder Hengshun Group plans to increase its holdings of the company's A-shares through centralized bidding within 12 months from May 24, 2025, with a planned increase amount of no less than RMB 50 million and no more than RMB 100 million[68] Section 4: Corporate Governance, Environment, and Society Corporate Governance, Environment, and Society This chapter discloses changes in directors and senior management, the profit distribution plan, progress of equity incentive and employee stock ownership plans, and environmental information of subsidiaries required to disclose by law Changes in Company Directors and Senior Management During the reporting period, Hang Zhuhong resigned as Chairman, and Gao Yinong was elected as his successor - On January 25, 2025, Hang Zhuhong resigned as Chairman of the company[70] - On February 11, 2025, Gao Yinong was elected Chairman of the company[70] Profit Distribution or Capital Reserve Conversion Plan The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none", indicating no distribution or conversion - The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none", with 0 bonus shares, cash dividends, and capital reserve conversions per 10 shares[71] Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact Details the 2024 Restricted Stock Incentive Plan and Employee Stock Ownership Plan progress, including grants, share transfers, and repurchases due to resignations or unmet performance targets Equity Incentive Matters Already Disclosed in Interim Announcements with No Subsequent Progress or Changes Lists various interim announcements for the 2024 Restricted Stock Incentive Plan, covering approvals, grants, share transfers, and partial repurchases and cancellations - The company's 2024 Restricted Stock Incentive Plan has been approved by the Zhenjiang State-owned Assets Supervision and Administration Commission and reviewed and approved by the general meeting of shareholders[74][75] - On July 17, 2024, the company granted 5.9172 million restricted shares to 367 incentive recipients, and completed registration and transfer on July 26, 2024[75][77] - On April 18, 2025, the company approved the resolution to repurchase and cancel some restricted shares from the 2024 Restricted Stock Incentive Plan, and implemented the repurchase and cancellation of 2.4339 million shares on June 16, 2025[77] Employee Stock Ownership Plan Status Discloses the establishment, share subscription, and transfer of the 2024 Employee Stock Ownership Plan, as well as the repurchase and cancellation of some shares due to resignation or failure to meet performance targets - The company's 2024 Employee Stock Ownership Plan was reviewed and approved by the board of directors, supervisory board, and general meeting of shareholders; 91 employees subscribed for 92,600 shares, with a total subscription amount of RMB 545,414[78][79] - On July 26, 2024, 92,600 shares of the company's stock were transferred to the "Jiangsu Hengshun Vinegar Industry Co., Ltd. - 2024 Employee Stock Ownership Plan" securities account[79] - On April 18, 2025, the company approved the resolution to repurchase and cancel some shares from the 2024 Employee Stock Ownership Plan, and implemented the repurchase and cancellation of 38,180 shares on June 16, 2025[80][81] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law Lists the company and three subsidiaries (Zhenjiang Hengshun New Condiment Co., Ltd., Xuzhou Hengshun Wantong Food Brewing Co., Ltd.) included in the list of enterprises required to disclose environmental information by law, and provides an inquiry index Number of Enterprises Included in the List of Enterprises Required to Disclose Environmental Information by Law | Indicator | Quantity (units) | | :--- | :--- | | Number of enterprises included in the list of enterprises required to disclose environmental information by law | 3 | - Jiangsu Hengshun Vinegar Industry Co., Ltd., Zhenjiang Hengshun New Condiment Co., Ltd., and Xuzhou Hengshun Wantong Food Brewing Co., Ltd. are all included in the list of enterprises required to disclose environmental information by law[82] Section 5: Important Matters Important Matters This chapter details the fulfillment of commitments made by the company during or continuing into the reporting period, including avoiding horizontal competition, maintaining independence, and regulating related-party transactions, also disclosing the progress of ordinary and asset acquisition related-party transactions Fulfillment of Commitments Discloses commitments made by the company's actual controller, shareholders, related parties, and the company itself, covering horizontal competition, independence, related-party transactions, diluted immediate returns, and real estate business, explaining their fulfillment status - Zhenjiang Industrial Investment Holding Group Co., Ltd. committed to avoid horizontal competition with Hengshun Vinegar Industry, maintain the company's independence, and regulate related-party transactions, with the commitment period ending when it ceases to be an indirect controlling shareholder of Hengshun Vinegar Industry[87][89][90] - Jiangsu Hengshun Group Co., Ltd. committed to avoid horizontal competition and bear compensation liability for economic losses caused by breach of commitment[91] - The company's directors, senior management, and controlling shareholder Hengshun Group committed to implement measures to compensate for diluted immediate returns, not to harm the company's interests, and to restrict job-related consumption behavior[93][94] - The company committed not to engage in real estate development or sales, and that raised funds would not be used for real estate development or sales, and has completed the decision-making process for the sale of relevant real estate assets of its subsidiary Zhenjiang Hengshun Mall Co., Ltd[95][96] Significant Related-Party Transactions Discloses related-party transactions in ordinary operations, such as purchasing/selling goods and providing/receiving services, and the progress of asset acquisition related-party transactions by a wholly-owned subsidiary Related-Party Transactions Related to Ordinary Operations Discloses the estimated amount of the company's 2025 annual ordinary related-party transactions and lists specific details of transactions not disclosed in interim announcements, such as purchasing goods, receiving services, selling goods, and providing services - The company's estimated amount for 2025 annual related-party transactions for purchasing raw materials and receiving services from related parties is approximately RMB 138 million, which has been approved by the general meeting of shareholders[98][100] Ordinary Related-Party Transactions Not Disclosed in Interim Announcements (Purchasing Goods/Receiving Services) | Related Party | Related Relationship | Related Transaction Type | Related Transaction Content | Related Transaction Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Hengshun Group Zhenjiang Henghai Winery Co., Ltd. | Controlling shareholder's controlled subsidiary | Purchasing goods | Purchasing goods | 25.85 | | Zhenjiang Public Transport Co., Ltd. | Other related party | Receiving services | Receiving services | 107.96 | | Zhenjiang City Intercity Asset Management Co., Ltd. | Other related party | Receiving services | Receiving services | 20.78 | | Zhenjiang Hengshun Bioengineering Co., Ltd. | Other related party | Receiving services | Receiving services | 7.30 | | Zhenjiang Xinsheng Material Co., Ltd. | Other related party | Receiving services | Receiving services | 1.67 | | Zhenjiang Hengshun Real Estate Development Co., Ltd. | Controlling shareholder's wholly-owned subsidiary | Receiving services | Receiving services | 0.88 | | Zhenjiang Zhenbin Jiamei Property Management Co., Ltd. | Other related party | Receiving services | Receiving services | 0.33 | Ordinary Related-Party Transactions Not Disclosed in Interim Announcements (Selling Goods/Providing Services) | Related Party | Related Relationship | Related Transaction Type | Related Transaction Content | Related Transaction Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Zhenjiang Henghua Color Printing and Packaging Co., Ltd. | Associate where senior management serves as director | Providing services | Providing services | 4.03 | | Zhenjiang State-owned Investment Holding Group Co., Ltd. | Other related party | Selling goods | Selling goods | 1.09 | | Zhenjiang Hengxin Biotechnology Co., Ltd. | Other related party | Selling goods | Selling goods | 169.90 | | Zhenjiang Hengxin Biotechnology Co., Ltd. | Other related party | Providing services | Providing services | 1.51 | | Zhenjiang Gangfa Green Resources Co., Ltd. | Other related party | Selling goods | Selling goods | 0.28 | | Jiangsu Hengda Times Technology Co., Ltd. | Other related party | Selling goods | Selling goods | 18.43 | Related-Party Transactions Involving Asset Acquisition or Equity Acquisition/Disposal The company's wholly-owned subsidiary Hengshun International Trade purchased property from Hengshun Real Estate, a wholly-owned subsidiary of the controlling shareholder, for RMB 5.9395 million, completing the transaction by period-end - The company's wholly-owned subsidiary Hengshun International Trade purchased the property at Room 601, 5th Floor, Building 31, Hengmei Jiayuan from Hengshun Real Estate, a wholly-owned subsidiary of the controlling shareholder Hengshun Group, for RMB 5.9395 million[104] - This asset acquisition related-party transaction was completed by the end of the reporting period[104] Other Discloses related-party leasing situations where the company acts as lessor and lessee, including types of leased assets and rental income recognized/rent paid during the current period Related-Party Leasing Situations as Lessor | Lessee Name | Type of Leased Asset | Rental Income Recognized in Current Period (RMB 10,000) | | :--- | :--- | :--- | | Zhenjiang Hengxin Biotechnology Co., Ltd. | Property rental | 14.29 | Related-Party Leasing Situations as Lessee (Rent Paid) | Lessor Name | Type of Leased Asset | Rent Paid in Current Period (RMB 10,000) | | :--- | :--- | :--- | | Jiangsu Hengshun Group Zhenjiang International Trade Co., Ltd. | Vehicles | 26.28 | | Zhenjiang Hengshun Bioengineering Co., Ltd. | Buildings and structures | 0.24 | | Zhenjiang Hengshun Real Estate Development Co., Ltd. | Buildings and structures | 9.52 | Section 6: Share Changes and Shareholder Information Share Changes and Shareholder Information This chapter details the company's share capital changes, including increases and decreases in restricted and unrestricted tradable shares, as well as the shareholding status of the top ten shareholders and top ten restricted shareholders Share Capital Changes During the reporting period, the company's total shares decreased due to the repurchase and cancellation of restricted shares from the 2024 Restricted Stock Incentive Plan and shares from the 2024 Employee Stock Ownership Plan, affecting both restricted and unrestricted tradable shares Share Capital Change Table | Share Class | Quantity Before Change (shares) | Proportion Before Change (%) | Net Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 5,917,200 | 0.53 | -2,433,900 | 3,483,300 | 0.31 | | II. Unrestricted Tradable Shares | 1,103,026,408 | 99.47 | -38,180 | 1,102,988,228 | 99.69 | | III. Total Shares | 1,108,943,608 | 100 | -2,472,080 | 1,106,471,528 | 100 | - The company repurchased and cancelled 2,433,900 restricted shares from the 2024 Restricted Stock Incentive Plan and 38,180 shares from the 2024 Employee Stock Ownership Plan, totaling 2,472,080 shares repurchased and cancelled[125][126] Shareholder Information Discloses the total number of common shareholders at period-end, and the shareholding status of the top ten shareholders and top ten unrestricted tradable shareholders, including quantity, proportion, restricted shares, and pledge status - As of the end of the reporting period, the total number of common shareholders was 89,478[129] Top Ten Shareholders' Shareholding Status as of the End of the Reporting Period | Shareholder Name | Period-end Shareholding Quantity (shares) | Proportion (%) | Number of Restricted Shares Held (shares) | Share Status | Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Hengshun Group Co., Ltd. | 447,613,893 | 40.45 | 0 | Pledged | 85,760,000 | State-owned Legal Person | | Zhenjiang Baiwei Investment Partnership (Limited Partnership) | 29,355,149 | 2.65 | 0 | Unknown | 0 | Unknown | | Hong Kong Securities Clearing Company Limited | 16,302,815 | 1.47 | 0 | Unknown | 0 | Unknown | | Zhejiang Zheyuan Holding Co., Ltd. | 9,614,639 | 0.87 | 0 | Unknown | 0 | State-owned Legal Person | | Guolian Trust Co., Ltd. - Guolian Trust · Huiyue 24008 Collective Fund Trust Plan | 9,432,146 | 0.85 | 0 | Unknown | 0 | Unknown | | Jinan Hanxiang Investment Management Partnership (Limited Partnership) | 7,699,711 | 0.70 | 0 | Unknown | 0 | Unknown | | Guangxi Nongken Equity Investment Fund Management Co., Ltd. - Guangxi Nongken Industrial Investment Development Center (Limited Partnership) | 7,699,711 | 0.70 | 0 | Unknown | 0 | Other | | China Merchants Bank Co., Ltd. - Southern CSI 1000 Exchange Traded Fund | 6,151,541 | 0.56 | 0 | Unknown | 0 | Other | | Shandong Guohui Fund Management Co., Ltd. - Jinan Guohui Luyin Industrial Investment Fund Partnership (Limited Partnership) | 4,812,319 | 0.43 | 0 | Unknown | 0 | Other | | Shen Huifeng | 4,423,000 | 0.40 | 0 | Unknown | 0 | Domestic Natural Person | Top Ten Restricted Shareholders' Shareholding Quantity and Restrictions | No. | Restricted Shareholder Name | Number of Restricted Shares Held (shares) | Restriction Conditions | | :--- | :--- | :--- | :--- | | 1 | Wang Zhaoxiang | 108,000 | See the company's 2024 Restricted Stock Incentive Plan disclosed on the Shanghai Stock Exchange website on July 9, 2024. | | 2 | Yang Yongzhong | 54,000 | Same as above | | 3 | Ji Rongpeng | 54,000 | Same as above | | 4 | Wei Chenyun | 54,000 | Same as above | | 5 | Li Gang | 48,360 | Same as above | | 6 | Fu Jie | 37,620 | Same as above | | 7 | Wei Zhengbing | 36,780 | Same as above | | 8 | Wang Bin | 30,000 | Same as above | | 9 | Zhao Peng | 29,400 | Same as above | | 10 | Wei Wei | 28,920 | Same as above | Directors and Senior Management Information Discloses changes in shareholdings of directors and senior management during the reporting period, primarily due to the repurchase and cancellation of restricted shares from the incentive plan Changes in Shareholdings of Current and Resigned Directors and Senior Management During the Reporting Period | Name | Position | Beginning Shareholding (shares) | Ending Shareholding (shares) | Change in Shareholding During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Zhaoxiang | Director, Deputy General Manager | 180,000 | 108,000 | -72,000 | Repurchase and cancellation of some restricted shares from the 2024 Restricted Stock Incentive Plan | | Yang Yongzhong | Deputy General Manager | 90,000 | 54,000 | -36,000 | Same as above | | Ji Rongpeng | Deputy General Manager | 90,000 | 54,000 | -36,000 | Same as above | | Wei Chenyun | Board Secretary | 90,000 | 54,000 | -36,000 | Same as above | | Lin Tianzhong | Employee Director | 26,500 | 15,900 | -10,600 | Same as above | Section 7: Bond-Related Information Bond-Related Information This chapter states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[141] - During the reporting period, the company had no convertible corporate bonds[141] Section 8: Financial Report Financial Report This chapter includes the company's 2025 H1 consolidated and parent company financial statements, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, along with detailed notes covering company basics, accounting policies, taxation, and various financial items Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[8] Financial Statements 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 - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[143][147][150][153][163][173] Company Basic Information Introduces the company's establishment, history of share capital changes, registered address, main operating activities, and approval date of financial statements - Jiangsu Hengshun Vinegar Industry Co., Ltd. was established on February 5, 1993, with its headquarters at Hengshun Avenue No. 66, Zhenjiang City, Jiangsu Province[176][181] - The company's share capital has undergone multiple changes; as of July 8, 2025, its registered and paid-in capital is RMB 1,106,471,528.00[181] - The company's main business activities include research and development, production, and sales of a series of condiments such as vinegar, soy sauce, pickles, compound seasonings, and flavoring agents, as well as packaging materials[182] - These financial statements and notes were approved for issuance by the company's 11th meeting of the 9th Board of Directors on August 24, 2025[182] Basis of Financial Statement Preparation Financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and CSRC disclosure regulations, with no significant doubts about the going concern assumption - Financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports (Revised 2023)"[183] - The company has no matters or circumstances that would cause significant doubt about the going concern assumption for the 12 months from the end of the reporting period[184] Significant Accounting Policies and Estimates Elaborates on the company's compliance with accounting standards, accounting period, operating cycle, functional currency, materiality criteria, and significant accounting policies and estimates for various financial and operational items - The company complies with enterprise accounting standards, accurately and completely reflecting its financial position[186] - The accounting year runs from January 1 to December 31 of the Gregorian calendar, with the actual preparation period for these financial statements being January 1, 2025, to June 30, 2025[187] - The company uses 12 months as an operating cycle and as the standard for classifying assets and liabilities as current or non-current[188] - The company and its domestic subsidiaries use RMB as their functional currency[189] - Detailed explanations are provided for the classification, recognition criteria, and measurement methods of financial instruments, including financial assets and liabilities measured at amortized cost, fair value through other comprehensive income, and fair value through profit or loss[207][208][209][210][211][212][213] - Revenue recognition is based on the transfer of control, with sales revenue recognized when the customer obtains control of the goods[294][296][297] - Government grants are classified as asset-related or income-related; asset-related grants are recognized as deferred income and amortized into profit or loss over the asset's useful life; income-related grants intended to compensate for future costs are recognized as deferred income, while those compensating for incurred costs are directly recognized in profit or loss[302][304] - Deferred income tax assets and liabilities are recognized based on temporary differences between the carrying amounts of assets and liabilities and their tax bases[305][306] - Leases are classified as finance leases or operating leases; as a lessee, the company recognizes right-of-use assets and lease liabilities for leases other than short-term and low-value asset leases[309][314] Taxation Discloses the company's main tax types and rates, including VAT, property tax, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge, and explains the tax preferential policies for the company and its subsidiaries Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Value added during sales of goods or provision of taxable services | 13%, 9%, 5%, small-scale taxpayer rate | | Property Tax | For value-based assessment, 1.2% of the original value of the property after a one-time deduction of 30%; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Corporate Income Tax | Taxable income | Parent company applies 15%; subsidiaries apply 15%, 25%, or small and micro enterprise tax rate | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - The company has been re-certified as a high-tech enterprise, enjoying a reduced corporate income tax rate of 15% for three years starting from the 2024 fiscal year[110] - Subsidiary Hengshun Chongqing Condiment Co., Ltd., as an enterprise in an encouraged industry in the western region, enjoys a reduced corporate income tax rate of 15% from January 1, 2021, to December 31, 2030[110] - Several subsidiaries qualify for preferential tax policies for small and micro enterprises, enjoying corporate income tax and "six taxes and two fees" reductions[110] Notes to Consolidated Financial Statement Items Provides detailed notes for each item in the consolidated financial statements, including monetary funds, trading financial assets, accounts receivable, prepayments, other receivables, inventories, other current assets, long-term equity investments, other equity instruments investment, other non-current financial assets, investment properties, fixed assets, construction in progress, right-of-use assets, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, accounts payable, advances from customers, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, lease liabilities, long-term payables, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and operating cost, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change income, credit impairment losses, asset disposal income, non-operating income, non-operating expenses, income tax expenses, other comprehensive income, cash flow statement items, supplementary cash flow statement information, assets with restricted ownership or use rights, foreign currency monetary items, and leases Period-end Balance of Monetary Funds | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on hand | 408.04 | 37,798.87 | | Bank deposits | 441,892,108.70 | 601,107,268.12 | | Other monetary funds | 1,752,000.00 | 2,897,639.69 | | Total | 443,644,516.74 | 604,042,706.68 | Period-end Balance of Trading Financial Assets | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Wealth management products | 450,323,109.59 | 534,967,904.09 | | Total | 450,323,109.59 | 534,967,904.09 | Period-end Balance of Accounts Receivable | Category | Book Balance (RMB) | Provision for Bad Debts (RMB) | Book Value (RMB) | | :--- | :--- | :--- | :--- | | Provision for bad debts on individual basis | 13,157,953.55 | 13,157,953.55 | - | | Provision for bad debts on portfolio basis | 42,931,002.52 | 6,760,025.42 | 36,170,977.10 | | Total | 56,088,956.07 | 19,917,978.97 | 36,170,977.10 | Period-end Balance of Inventory Classification | Item | Book Balance (RMB) | Provision for Inventory Impairment/Contract Cost Impairment (RMB) | Book Value (RMB) | | :--- | :--- | :--- | :--- | | Raw materials | 46,925,391.88 | 303,226.71 | 46,622,165.17 | | Revolving materials | 34,248,167.18 | 859,979.43 | 33,388,187.75 | | Work in progress | 115,779,757.20 | - | 115,779,757.20 | | Finished goods | 52,616,182.03 | 36,197.43 | 52,579,984.60 | | Goods in transit | 10,028,720.68 | - | 10,028,720.68 | | Total | 259,598,218.97 | 1,199,403.57 | 258,398,815.40 | Period-end Balance of Long-term Equity Investments | Investee Name | Period-end Balance (Book Value) (RMB) | Period-end Balance of Impairment Provision (RMB) | | :--- | :--- | :--- | | Jiangsu Wenrun Optoelectronics Co., Ltd. | 33,193,592.65 | - | | Zhenjiang Henghua Color Printing and Packaging Co., Ltd. | 12,242,416.48 | - | | Jiangsu Hengshun Group Zhenjiang International Trade Co., Ltd. | 6,089,832.48 | - | | Subtotal | 51,525,841.61 | - | Period-end Book Value of Fixed Assets | Item | Buildings and Structures (RMB) | Machinery and Equipment (RMB) | Transportation Equipment (RMB) | Electronic and Other Equipment (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Book Value | 798,314,453.96 | 410,009,249.98 | 4,217,951.16 | 27,342,893.64 | 1,239,884,548.74 | Period-end Book Value of Construction in Progress | Item | Book Value (RMB) | | :--- | :--- | | Xuzhou Hengshun Wantong Food Brewing Co., Ltd. 45,000-ton annual original brewed soy sauce and vinegar intelligent production line project | 109,813,120.47 | | Hengshun Balsamic Vinegar Expansion and Continuation Project (Phase II) | 108,030,143.03 | | 30,000-ton annual brewed vinegar expansion project | 80,404,292.64 | | 100,000-ton annual compound seasoning construction project | 17,835,436.83 | | Other minor projects | 28,876,352.84 | | Total | 344,959,345.81 | Share Capital Change Status | Total Shares | Beginning Balance (RMB) | Net Increase/Decrease in Current Change (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Total Shares | 1,108,943,608.00 | -2,472,080.00 | 1,106,471,528.00 | Capital Reserve Change Status | Item | Beginning Balance (RMB) | Current Period Increase (RMB) | Current Period Decrease (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Capital premium (share premium) | 867,899,119.08 | - | 7,602,268.68 | 860,296,850.40 | | Other capital reserves | 36,593,524.12 | 1,749,332.10 | - | 38,342,856.22 | | Total | 904,492,643.20 | 1,749,332.10 | 7,602,268.68 | 898,639,706.62 | Treasury Stock Change Status | Item | Beginning Balance (RMB) | Current Period Decrease (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Restricted shares | 23,326,634.00 | 9,595,395.20 | 13,731,238.80 | | Total | 23,326,634.00 | 9,595,395.20 | 13,731,238.80 | Undistributed Profits Change Status | Item | Current Period (RMB) | Prior Year (RMB) | | :--- | :--- | :--- | | Undistributed profits at end of prior period (adjusted) | 1,121,570,754.54 | 1,082,205,666.75 | | Add: Net profit attributable to owners of parent company for current period | 110,609,474.90 | 127,342,058.81 | | Less: Dividends payable on ordinary shares | 110,647,152.80 | 77,205,366.56 | | Undistributed profits at period-end | 1,121,533,076.64 | 1,121,570,754.54 | Operating Revenue and Operating Cost Status | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main business | 1,116,489,221.50 | 691,520,279.84 | 979,033,817.76 | 632,726,398.47 | | Other business | 8,866,438.07 | 1,583,663.54 | 25,455,168.97 | 4,641,731.76 | | Total | 1,125,355,659.57 | 693,103,943.38 | 1,004,488,986.73 | 637,368,130.23 | Selling Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Promotional expenses | 122,882,415.75 | 75,813,523.48 | | Personnel expenses | 60,386,226.27 | 68,553,985.44 | | Advertising expenses | 8,605,786.15 | 13,068,160.20 | | Travel expenses | 8,130,357.78 | 6,728,154.25 | | Office expenses | 1,660,570.96 | 1,796,937.23 | | Depreciation expenses | 814,734.03 | 538,808.10 | | Entertainment expenses | 159,975.94 | 27,404.17 | | Other expenses | 1,554,622.18 | 620,118.15 | | Total | 204,194,689.06 | 167,147,091.02 | R&D Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Material and fuel input | 31,247,053.77 | 19,263,134.47 | | Personnel expenses | 15,471,944.76 | 15,809,487.72 | | Depreciation and amortization | 3,373,828.71 | 3,316,196.35 | | Other inputs | 5,192,097.91 | 4,233,104.48 | | Total | 55,284,925.15 | 42,621,923.02 | Investment Income | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Interest income from time deposits | 5,936,611.10 | 1,522,888.89 | | Investment income from long-term equity investments accounted for by equity method | -7,888,022.19 | -9,866,056.06 | | Total | -1,951,411.09 | -8,343,167.17 | Credit Impairment Losses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Bad debt loss on accounts receivable | -1,757,423.15 | 500,390.56 | | Bad debt loss on other receivables | -150,604.36 | -255,756.78 | | Total | -1,908,027.51 | 244,633.78 | Net Cash Flow from Operating Activities | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net cash flow from operating activities | -42,284,801.62 | 194,328,770.52 | R&D Expenses Discloses the composition of R&D expenses by nature of expense for the current period, including material and fuel input, employee compensation, depreciation and amortization, and other inputs, all of which are expensed R&D expenditures R&D Expenses by Nature of Expense | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Material an