双象股份(002395) - 2025 Q2 - 季度财报

Important Notice, Table of Contents and Definitions This chapter provides essential disclaimers, lists reference documents, and defines key terms used throughout the report Important Notice The company's board, supervisors, and senior management guarantee the report's accuracy, while also cautioning investors about market risks - The company's board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness[4] - The company's responsible person, head of accounting, and head of accounting department declare the financial report is true, accurate, and complete[4] - The company faces risks from exchange rate fluctuations, major raw material price volatility, and management, cautioning investors[4] - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for this reporting period[4] Catalogue of Reference Documents This section lists the half-yearly report's reference documents, including signed financial statements and original announcements - Reference documents include signed and sealed financial statements, original publicly disclosed documents on designated websites, and the legal representative's signed original report[8] Definitions This section defines key terms used in the report, covering company names, regulatory bodies, products, and reporting periods - In this report, 'the Company' refers to Wuxi Shuangxiang Ultra-Microfiber Material Co., Ltd[9] - Key products include PVC artificial leather, PU synthetic leather, ultra-microfiber synthetic leather (ultra-microfiber), polymethyl methacrylate resin (PMMA), and styrene-methyl methacrylate copolymer (MS)[9] - The reporting period is from January 1, 2025, to June 30, 2025[9] Company Profile and Key Financial Indicators This chapter provides an overview of the company's basic information, contact details, and a summary of its key financial performance Company Information The company's stock is listed on the Shenzhen Stock Exchange under stock code 002395, with Liu Lianwei as its legal representative - Stock Abbreviation: Shuangxiang Shares, Stock Code: 002395, Listing Exchange: Shenzhen Stock Exchange[11] - The legal representative is Liu Lianwei[11] Contact Persons and Information This section provides contact details for the company's Board Secretary Shen Ming and Securities Affairs Representative Sang Ping - Board Secretary: Shen Ming, Securities Affairs Representative: Sang Ping[12] - Contact Phone: 0510-88587333 (Shen Ming), 0510-88996380 (Sang Ping)[12] Other Information The company's registered and office addresses are in Wuxi, Jiangsu, with no changes in information disclosure locations during the reporting period - Company Registered Address: No. 135 Houzhai Middle Road, Hongshan Street, Xinwu District, Wuxi City, Jiangsu Province[13] - Company Website: http://www.sxcxgf.com[13](index=13&type=chunk) - No changes in information disclosure and placement locations during the reporting period[14] Key Accounting Data and Financial Indicators The company's 2025 half-year financial performance shows strong growth, with operating revenue up 23.71% and net profit attributable to shareholders up 166.61% 2025 Half-Year Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,215,072,398.93 | 982,221,572.27 | 23.71 | | Net Profit Attributable to Shareholders of Listed Company | 134,413,191.41 | 50,415,614.69 | 166.61 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 121,272,945.04 | 43,612,451.68 | 178.07 | | Net Cash Flow from Operating Activities | 93,923,023.39 | -71,557,309.78 | 231.26 | | Basic Earnings Per Share (CNY/share) | 0.5012 | 0.1880 | 166.60 | | Diluted Earnings Per Share (CNY/share) | 0.5012 | 0.1880 | 166.60 | | Weighted Average Return on Net Assets | 9.41 | 5.36 | 4.05 | | Indicator | End of Current Period (CNY) | End of Prior Year (CNY) | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,397,852,581.23 | 2,275,454,192.74 | 5.38 | | Net Assets Attributable to Shareholders of Listed Company | 1,495,300,173.53 | 1,360,080,111.47 | 9.94 | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reports no differences in net profit and net assets between international/overseas and Chinese accounting standards for the period - The company reports no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[16][17] Non-Recurring Gains and Losses and Amounts The company's non-recurring gains and losses totaled CNY 13.14 million, primarily from government subsidies and fair value changes 2025 Half-Year Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Government subsidies recognized in current profit or loss (excluding those with continuous impact) | 9,699,126.01 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities (excluding hedging activities) | 755,210.91 | | Debt restructuring gains and losses | 197,179.70 | | Other non-operating income and expenses not listed above | 14,909.00 | | Other profit and loss items meeting the definition of non-recurring gains and losses | 2,750,000.00 | | Less: Income tax impact | 276,179.25 | | Total | 13,140,246.37 | - Other non-recurring gains and losses of CNY 2.75 million represent the reversal of bad debt provisions for demolition compensation received this period, which was recorded in other receivables last year[19] Management Discussion and Analysis This chapter analyzes the company's main business, core competitiveness, financial performance, investment activities, and risk factors Principal Business Activities During the Reporting Period The company's main businesses include artificial leather, synthetic leather, and optical-grade PMMA/MS materials, with significant market potential and a stable operating model - The company's main businesses include artificial leather and synthetic leather (PVC, PU, ultra-microfiber) and optical-grade PMMA/MS materials[22] - The ultra-microfiber leather market still has significant growth potential, while the market share and production capacity for high-end optical-grade PMMA/MS products are primarily controlled by international giants, necessitating substantial imports for China[22][23] - The company is China's first domestic enterprise to achieve large-scale production of high-end optical-grade PMMA materials, with existing PMMA capacity of 155,000 tons/year and MS capacity of 75,000 tons/year, breaking foreign monopolies[24][25] Industry Analysis The artificial leather industry has upgraded to ultra-microfiber, while optical-grade PMMA/MS materials face high demand but limited domestic high-end supply - The artificial and synthetic leather industry has upgraded to ultra-microfiber leather, which offers superior performance at a lower price, serving as an excellent substitute for natural leather with significant market growth potential[22] - Optical-grade PMMA/MS materials are in high demand across LCD displays, LED lighting, and automotive sectors, yet China faces a scarcity of high-end production capacity, relying heavily on imports[23] Company's Main Products and Uses The company's main products include PU and ultra-microfiber leather, along with optical-grade PMMA/MS materials, used in various industries Company's Main Products and Uses | Business Segment | Main Product Name | Function and Application Overview | | :--- | :--- | :--- | | Artificial and Synthetic Leather Business Segment | PU, Ultra-microfiber Leather | Widely used in footwear, apparel, luggage, automotive interiors, sofa furniture, balls, decoration, and other fields | | Optical-grade PMMA/MS Material Business Segment | PMMA, PMMA Sheets, MS, MS Sheets | Widely used in LCD displays, LED lighting, automotive taillights, instrument panels, optical glass, medical polymer materials, consumer electronics casings, construction, and other fields | Company's Main Product Production Process Ultra-microfiber leather production involves multiple complex steps, while optical-grade PMMA/MS materials use a high-tech continuous bulk polymerization process - Ultra-microfiber leather production involves a complex process including spinning, weaving, impregnation, weight reduction, and finishing[25] - Optical-grade PMMA/MS materials are produced using continuous bulk polymerization, a high-tech process mastered by only a few companies globally[28] Upstream and Downstream Industry Chains of Main Products Artificial leather's upstream is chemicals and textiles, downstream is consumer goods; optical PMMA/MS's upstream is MMA, downstream is electronics and automotive - The upstream for artificial and synthetic leather includes chemical raw materials and textiles, while downstream applications are in consumer goods such as footwear, apparel, luggage, and automotive interiors[28][29] - The upstream for optical-grade PMMA/MS materials is primarily MMA, with downstream applications in consumer goods like home appliances, electronic devices, and automobiles[29][31] - The controlling shareholder, Shuangxiang Group, has launched an MMA project to address the tight supply of MMA raw materials and establish a competitive industrial chain advantage[30] Main Product Production and Operation Model The company maintains a stable production and operation model, with centralized procurement, make-to-order for artificial leather, and semi-stock/semi-order for optical materials - Procurement Model: Unified bulk purchasing with long-term supply agreements signed with major suppliers[32] - Production Model: Artificial and synthetic leather is produced based on sales orders; optical-grade PMMA/MS materials are continuously produced using a semi-stock, semi-order approach[32][33] - Sales Model: A combination of distribution and direct sales, with prices determined by factors such as materials, specifications, and transaction counterparties[34] Analysis of Core Competitiveness The company possesses strong core competencies in both artificial leather and optical-grade PMMA/MS materials, driven by advanced technology, quality systems, and product diversification Artificial and Synthetic Leather The artificial and synthetic leather business boasts leading R&D capabilities, numerous patents, industry standard participation, and a comprehensive product chain - The company undertook and completed a 'National 863 Program Project,' obtained dozens of national invention patents, and participated in drafting/revising 30 national/industry standards[35][36] - Certified with ISO9001 and IATF16949:2016 quality management systems, ensuring stable product quality[36] - The product chain is comprehensive, offering thousands of products and providing customers with 'one-stop' supply services[36] Optical-grade PMMA/MS Materials The optical-grade PMMA/MS materials business leverages advanced continuous bulk polymerization, offering energy efficiency, environmental benefits, and import substitution advantages - Utilizing advanced continuous bulk polymerization, the company has resolved technical challenges in mass transfer, heat transfer, and polymerization conversion rate control, enhancing production efficiency and product quality[37] - Bulk polymerization offers energy efficiency and low pollution, providing environmental advantages[37] - Product quality matches international counterparts, with relatively lower prices, offering a clear advantage for import substitution[37] Analysis of Principal Business The company's 2025 half-year operating revenue increased by 23.71%, driven by optical material capacity release and cost efficiency, with PMMA/MS contributing 71.74% of revenue 2025 Half-Year Key Financial Data YoY Change | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,215,072,398.93 | 982,221,572.27 | 23.71 | | | Operating Cost | 990,905,343.61 | 870,592,021.90 | 13.82 | | | Selling Expenses | 4,525,963.88 | 3,227,692.77 | 40.22 | Increase in sales staff salaries and exhibition expenses | | Income Tax Expense | 18,615,819.70 | 5,668,342.15 | 228.42 | Profit growth of Chongqing Optical and Chongqing Ultra-microfiber | | R&D Investment | 45,103,797.15 | 32,510,370.44 | 38.74 | Chongqing Optical increased R&D | | Net Cash Flow from Operating Activities | 93,923,023.39 | -71,557,309.78 | 231.26 | Increase in sales collection, decrease in cash payments for procurement | | Net Cash Flow from Investing Activities | 4,499,265.11 | -10,402,383.83 | 143.25 | Received government relocation compensation, purchased foreign exchange swaps | | Net Cash Flow from Financing Activities | -36,322,448.89 | 8,761,657.78 | -514.56 | Repaid some loans, reduced discounts | | Total Profit | 153,029,011.11 | 56,083,956.84 | 172.86 | Chongqing Optical capacity release, Chongqing Ultra-microfiber cost reduction and efficiency improvement | | Net Profit | 134,413,191.41 | 50,415,614.69 | 166.61 | Chongqing Optical capacity release, Chongqing Ultra-microfiber cost reduction and efficiency improvement | 2025 Half-Year Operating Revenue Composition | Category | Current Period Amount (CNY) | Proportion of Operating Revenue (%) | Prior Period Amount (CNY) | Proportion of Operating Revenue (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,215,072,398.93 | 100 | 982,221,572.27 | 100 | 23.71 | | By Industry | | | | | | | Artificial and Synthetic Leather Industry | 325,607,603.11 | 26.80 | 327,800,941.33 | 33.37 | -0.67 | | PMMA/MS Industry | 871,681,703.06 | 71.74 | 644,698,964.03 | 65.64 | 35.21 | | Hazardous Waste Business | 17,783,092.76 | 1.46 | 9,721,666.91 | 0.99 | 82.92 | | By Product | | | | | | | PU | 12,428,917.76 | 1.02 | 13,224,074.28 | 1.35 | -6.01 | | Ultra-microfiber | 289,859,009.55 | 23.86 | 297,555,995.17 | 30.29 | -2.59 | | PMMA | 729,020,858.94 | 60.00 | 550,177,315.32 | 56.01 | 32.51 | | MS | 51,086,810.31 | 4.21 | 0.00 | 0.00 | --- | | PMMA Sheets | 67,672,812.44 | 5.57 | 81,792,094.16 | 8.33 | -17.26 | | MS Sheets | 21,427,548.41 | 1.76 | 12,729,554.55 | 1.30 | 68.33 | | Hazardous Waste Business | 17,783,092.76 | 1.46 | 9,721,666.91 | 0.99 | 82.92 | | Other | 25,793,348.76 | 2.12 | 17,020,871.88 | 1.73 | 51.54 | | By Region | | | | | | | Export Sales | 152,049,924.11 | 12.51 | 87,328,920.62 | 8.89 | 74.11 | | East China Region | 636,620,545.16 | 52.39 | 526,431,036.48 | 53.60 | 20.93 | | South China Region | 360,268,954.14 | 29.65 | 309,988,433.17 | 31.56 | 16.22 | | Central China Region | 1,641,646.01 | 0.14 | 198,429.21 | 0.02 | 727.32 | | North China Region | 13,768,644.71 | 1.13 | 4,449,431.44 | 0.45 | 209.45 | | Northeast China Region | 17,976,988.06 | 1.48 | 6,212,389.39 | 0.63 | 189.37 | | Southwest China Region | 32,745,696.74 | 2.70 | 47,612,931.96 | 4.85 | -31.23 | Industry, Product, or Region Accounting for Over 10% of Operating Revenue or Operating Profit | Category | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Artificial and Synthetic Leather Industry | 325,607,603.11 | 268,476,168.39 | 17.55 | -0.67 | -7.28 | 5.88 | | PMMA/MS Industry | 871,681,703.06 | 708,734,547.50 | 18.69 | 35.21 | 24.39 | 7.07 | | By Product | | | | | | | | Ultra-microfiber | 289,859,009.55 | 252,152,460.82 | 13.01 | -2.59 | -7.16 | 4.29 | | PMMA | 729,020,858.94 | 581,006,946.34 | 20.30 | 32.51 | 20.80 | 7.72 | | By Region | | | | | | | | Export Sales | 152,049,924.11 | 136,465,547.22 | 10.25 | 74.11 | 74.26 | -0.08 | | East China Region | 636,620,545.16 | 511,607,337.66 | 19.64 | 20.93 | 11.60 | 6.72 | | South China Region | 360,268,954.14 | 289,380,356.77 | 19.68 | 16.22 | 3.37 | 9.99 | Analysis of Non-Principal Business Non-principal business activities had a minor impact on total profit, with positive contributions from investment and fair value changes, offset by asset impairment losses 2025 Half-Year Impact of Non-Principal Business on Total Profit | Item | Amount (CNY) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 150,299.17 | 0.10 | Wuxi Optoelectronics obtained investment income from transactional financial assets | No | | Gains and Losses from Fair Value Changes | 497,041.62 | 0.32 | Wuxi Optoelectronics purchased foreign exchange swaps | No | | Asset Impairment | -2,391,712.73 | -1.56 | Chongqing Ultra-microfiber recognized inventory impairment | No | | Non-Operating Income | 20,840.00 | 0.01 | | No | | Non-Operating Expenses | 5,931.00 | 0.00 | | No | | Credit Impairment Losses | 945,260.73 | 0.62 | | No | | Other Income | 11,058,728.46 | 7.23 | Chongqing Ultra-microfiber, Chongqing Optical amortized government subsidies | No | Analysis of Assets and Liabilities Total assets increased by 5.38% and net assets by 9.94%, with notable changes in cash, inventory, and restricted assets due to operational and financial activities Significant Changes in Asset Composition Significant increases in cash, inventory, and financial assets were observed, while receivables, prepayments, and certain liabilities decreased due to sales growth and debt repayment 2025 Half-Year Significant Changes in Asset Composition | Item | Amount at End of Current Period (CNY) | Proportion of Total Assets (%) | Amount at End of Prior Year (CNY) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 350,668,453.97 | 14.62 | 261,853,834.04 | 11.51 | 3.11 | Chongqing Ultra-microfiber sales growth | | Accounts Receivable | 72,495,853.25 | 3.02 | 54,885,726.95 | 2.41 | 0.61 | Increase in futures payments not yet received from customers | | Inventories | 411,058,993.47 | 17.14 | 301,995,138.77 | 13.27 | 3.87 | Increase in finished goods for Chongqing Optical and Chongqing Ultra-microfiber | | Construction in Progress | 628,944.28 | 0.03 | 2,189,520.32 | 0.10 | -0.07 | Some projects reached intended use state | | Short-term Borrowings | 80,319,199.53 | 3.35 | 99,726,372.30 | 4.38 | -1.03 | | | Contract Liabilities | 43,766,677.27 | 1.83 | 34,339,336.65 | 1.51 | 0.32 | | | Transactional Financial Assets | 35,982,761.40 | 1.50 | 0.00 | 0.00 | 1.50 | Wuxi Optoelectronics purchased foreign exchange swaps | | Receivables Financing | 22,786,594.44 | 0.95 | 62,759,462.55 | 2.76 | -1.81 | Decrease in notes compared to beginning of period | | Other Receivables | 27,102,715.49 | 1.13 | 79,335,963.82 | 3.49 | -2.36 | Received partial government relocation compensation | | Prepayments | 15,056,439.25 | 0.63 | 33,597,663.45 | 1.48 | -0.85 | Suzhou Optical's prepaid material expenses decreased | | Notes Payable | 100,880,000.45 | 4.21 | 29,000,000.00 | 1.27 | 2.94 | Increase in payments for goods using notes | | Taxes Payable | 7,815,840.98 | 0.33 | 25,415,079.04 | 1.12 | -0.79 | Decrease in VAT and income tax payable | | Accounts Payable | 192,708,158.53 | 8.04 | 257,479,239.97 | 11.32 | -3.28 | | | Special Reserves | 1,122,483.91 | 0.05 | 315,613.26 | 0.01 | 0.04 | Provision for safety production expenses in hazardous waste disposal business | Assets and Liabilities Measured at Fair Value The company's fair value-measured financial assets primarily consist of derivative financial assets totaling CNY 35.98 million, mainly from foreign exchange swaps 2025 Half-Year Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gains/Losses for Current Period (CNY) | Accumulated Fair Value Changes Recognized in Equity (CNY) | Impairment Provision for Current Period (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold in Current Period (CNY) | Other Changes (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Derivative Financial Assets | 0.00 | 497,041.62 | 0.00 | 0.00 | 71,606,624.00 | 36,120,904.22 | 0.00 | 35,982,761.40 | | Subtotal of Financial Assets | 0.00 | 497,041.62 | 0.00 | 0.00 | 71,606,624.00 | 36,120,904.22 | 0.00 | 35,982,761.40 | - The fair value change gains/losses for this period were primarily due to Wuxi Optoelectronics, a wholly-owned subsidiary, purchasing foreign exchange swaps[45][48] Asset Restrictions as of the End of the Reporting Period Total restricted assets increased significantly to CNY 41.51 million, mainly due to increased margins for bank acceptance bills, letters of credit, and foreign exchange swaps 2025 Half-Year Asset Restrictions | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Bank Acceptance Bill Deposits | 32,452,000.18 | 7,800,000.00 | | Letter of Credit Deposits | 1,043,555.09 | 0.00 | | Foreign Exchange Swap Deposits | 7,158,600.00 | 0.00 | | Litigation Frozen Deposits | 850,000.00 | 6,831,239.14 | | ETC Deposits | 4,000.00 | 4,000.00 | | Total | 41,508,155.27 | 14,635,239.14 | Analysis of Investment Status The company had no securities, major equity, or non-equity investments during the reporting period, but engaged in derivative investments for hedging purposes - The company had no securities investments, major equity investments, or major non-equity investments during the reporting period[50][54][55] Derivative Investment Status The company's derivative investments, primarily foreign exchange swaps, totaled CNY 35.98 million, effectively mitigating exchange rate risks and enhancing financial stability 2025 Half-Year Derivative Investment Status | Derivative Investment Type | Beginning Balance (CNY 10,000) | Fair Value Change Gains/Losses for Current Period (CNY 10,000) | Accumulated Fair Value Changes Recognized in Equity (CNY 10,000) | Amount Purchased in Reporting Period (CNY 10,000) | Amount Sold in Reporting Period (CNY 10,000) | Ending Investment Amount (CNY 10,000) | Proportion of Amount to Company's Net Assets at Period-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Foreign Exchange Swaps | 0.00 | 49.70 | 0.00 | 7,160.66 | 3,612.09 | 3,598.28 | 2.41 | | Total | 0.00 | 49.70 | 0.00 | 7,160.66 | 3,612.09 | 3,598.28 | 2.41 | - The company conducts foreign exchange swap business to effectively hedge against and prevent exchange rate risks, enhancing its financial stability and foreign exchange risk management capabilities[52] - The company has established the 'Shuangxiang Shares Risk Investment Management System' and related operating procedures to regulate financial derivative transactions and control trading risks[52] Major Asset and Equity Sales The company did not engage in any major asset or equity sales during the reporting period - The company did not sell any major assets during the reporting period[56] - The company did not sell any major equity during the reporting period[57] Analysis of Major Holding and Participating Companies Key subsidiaries like Chongqing Optical and Suzhou Optical significantly contribute to PMMA/MS material sales, while Chongqing Ultra-microfiber focuses on ultra-microfiber and hazardous waste 2025 Half-Year Major Holding Subsidiary Financial Data | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chongqing Shuangxiang Optical Material Co., Ltd. | Subsidiary | Manufacturing, processing, and sales of PMMA and MS | 300,000,000 | 692,034,919.52 | 346,926,413.80 | 510,790,296.77 | 84,084,912.91 | 73,628,483.17 | | Suzhou Shuangxiang Optical Material Co., Ltd. | Subsidiary | Manufacturing, processing, and sales of PMMA | 210,000,000 | 488,598,626.46 | 316,294,934.36 | 338,473,754.78 | 37,413,760.64 | 33,466,207.76 | | Wuxi Shuangxiang Optoelectronic Material Co., Ltd. | Subsidiary | Manufacturing, processing, and sales of PMMA, MS, PS sheets, and plates | 30,000,000 | 93,131,003.99 | 34,584,106.60 | 89,466,377.17 | 4,716,244.87 | 4,303,133.31 | | Chongqing Shuangxiang Ultra-Microfiber Material Co., Ltd. | Subsidiary | Production, R&D, and sales of ultra-microfiber materials, polyurethane synthetic leather, polyurethane resin; hazardous waste disposal | 200,000,000 | 960,385,774.53 | 284,447,563.92 | 349,482,083.91 | 36,533,793.44 | 32,402,010.74 | Risks Faced by the Company and Countermeasures The company addresses exchange rate fluctuations, raw material price volatility, and management risks through product development, cost control, and internal governance improvements - The company faces exchange rate fluctuation risks, as export sales are settled in USD, and increased business volume may exacerbate these risks[60] - Fluctuations in major raw material prices impact production costs, which the company plans to address by developing new products, increasing selling prices, improving processes, adopting alternative materials, and reducing costs[60] - The company's expanding business scale introduces management risks, which will be mitigated by improving internal control systems and recruiting/training talent to enhance management capabilities[60] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed any valuation enhancement plan - The company has not formulated a market value management system[61] - The company has not disclosed a valuation enhancement plan[61] Implementation of “Dual Improvement in Quality and Returns” Action Plan The company has not disclosed any announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[61] Corporate Governance, Environment and Society This chapter covers changes in company governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[63] Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the current half-year - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the current half-year[64] Implementation of Company’s Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[65] Environmental Information Disclosure The company's key subsidiary, Chongqing Shuangxiang Ultra-Microfiber Material Co., Ltd., is listed for environmental information disclosure - Chongqing Shuangxiang Ultra-Microfiber Material Co., Ltd., a major subsidiary, is included in the list of enterprises required to disclose environmental information by law[66] - Environmental information disclosure reports can be accessed through the Enterprise Environmental Information Disclosure System (Chongqing)[66] Social Responsibility Status The company actively fulfills its social responsibilities by protecting investor interests, fostering employee growth, operating ethically, and implementing environmental protection measures - The company prioritizes shareholder interests, maintaining good communication with investors through various channels to protect their interests[67] - The company focuses on employee growth, providing favorable working conditions and compensation, fostering a fair competitive environment, and offering training and education[67] - The company operates with integrity, pays taxes according to law, creates employment opportunities, and actively responds to national safety, environmental protection, and green low-carbon policies by implementing energy conservation and emission reduction measures[67] - During the reporting period, the company has not yet undertaken poverty alleviation or rural revitalization initiatives[68] Significant Matters This chapter details the company's commitments, related party transactions, litigation, and other significant events during the reporting period Commitments Fulfilled and Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company as of the End of the Reporting Period The company reports no overdue unfulfilled commitments from its actual controller, shareholders, related parties, acquirers, or the company itself - The company had no overdue unfulfilled commitments during the reporting period[70] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company The company reports no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period - The company reports no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[71] Illegal External Guarantees The company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[72] Appointment and Dismissal of Accounting Firms The company's half-year financial report was not audited - The company's half-year financial report was not audited[73] Board of Directors' and Supervisory Board's Explanation on the Accounting Firm's 'Non-Standard Audit Report' for the Current Reporting Period The company reports no "non-standard audit report" issued by the accounting firm for the current reporting period - The company reports no 'non-standard audit report' issued by the accounting firm during the reporting period[74] Board of Directors' Explanation on Matters Related to the 'Non-Standard Audit Report' for the Prior Year The company reports no matters related to a "non-standard audit report" from the prior year - The company reports no matters related to a 'non-standard audit report' from the prior year during the reporting period[74] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization-related matters during the reporting period - The company had no bankruptcy or reorganization-related matters during the reporting period[74] Litigation Matters The company had no major litigation or arbitration during the reporting period, with minor ongoing or concluded cases having no significant impact - The company had no major litigation or arbitration matters during the reporting period[75] 2025 Half-Year Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (CNY 10,000) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Judgment Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of matters where the company is plaintiff, not meeting major litigation standards | 1.56 | No | Concluded | No significant impact on the company | Adjudicated | | Summary of matters where the company is plaintiff, not meeting major litigation standards | 7.22 | No | Ongoing | No significant impact on the company | Not yet adjudicated | | Summary of matters where the company is defendant, not meeting major litigation standards | 223.44 | No | Concluded | No significant impact on the company | Adjudicated | | Summary of matters where the company is defendant, not meeting major litigation standards | 170.25 | No | Ongoing | No significant impact on the company | Not yet adjudicated | Penalties and Rectification Status The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[77] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reports no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period - The company reports no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[78] Major Related Party Transactions The company engaged in routine related party transactions, primarily purchasing raw materials from Chongqing Yixiang Chemical, all within approved limits, with no other major related party transactions 2025 Half-Year Routine Related Party Transactions | Related Party | Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (CNY 10,000) | Proportion of Similar Transactions (%) | Approved Transaction Limit (CNY 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chongqing Yixiang Chemical Co., Ltd. | Wholly-owned subsidiary of controlling shareholder | Purchases from related parties | Procurement of raw materials | 63,008.69 | 66.39 | 220,000 | No | | Chongqing Shuangxiang Electronic Material Co., Ltd. | Wholly-owned subsidiary of controlling shareholder | Purchases from related parties | Procurement of steam | 2,841.28 | 39.12 | 9,000 | No | | Total | -- | -- | -- | 65,849.97 | -- | 229,000 | -- | - The company had no related party transactions involving asset or equity acquisitions, sales, or joint external investments during the reporting period[81][82] - The company had no related party creditor-debtor relationships during the reporting period[83] Major Contracts and Their Performance The company had no major contracts related to trusteeship, contracting, leasing, guarantees, wealth management, or other significant agreements during the reporting period - The company had no trusteeship, contracting, or leasing situations during the reporting period[87][88][89] - The company had no major guarantee situations during the reporting period[90] - The company had no entrusted wealth management during the reporting period[91] - The company had no other major contracts during the reporting period[92] Explanation of Other Significant Matters The company signed a land expropriation agreement in 2020 for CNY 603.75 million, of which CNY 557.47 million has been received by June 30, 2025 - The company signed a non-residential property expropriation compensation agreement on state-owned land with Wuxi Xinwu District Hongshan Street Expropriation and Resettlement Section, with total compensation of CNY 603,752,398.00[93] - As of June 30, 2025, the company had received CNY 557,470,096.00 in demolition compensation[93] Significant Matters of Company Subsidiaries The company reports no significant matters concerning its subsidiaries during the reporting period - The company reports no significant matters concerning its subsidiaries during the reporting period[94] Share Changes and Shareholder Information This chapter details changes in the company's share capital, securities issuance, shareholder structure, and changes in director/supervisor/senior management shareholdings Share Change Status The company's total share capital remained unchanged, but restricted shares increased due to changes in shareholdings of departing and incumbent directors and supervisors 2025 Half-Year Share Change Status | Item | Quantity Before This Change (shares) | Proportion Before This Change (%) | Subtotal of Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 13,125 | 0.00 | 9,394 | 22,519 | 0.01 | | Of which: Shares held by domestic natural persons | 13,125 | 0.00 | 9,394 | 22,519 | 0.01 | | II. Unrestricted Shares | 268,195,875 | 100.00 | -9,394 | 268,186,481 | 99.99 | | Of which: RMB ordinary shares | 268,195,875 | 100.00 | -9,394 | 268,186,481 | 99.99 | | III. Total Shares | 268,209,000 | 100.00 | 0 | 268,209,000 | 100.00 | - The change in shares was due to changes in executive restricted shares resulting from stock trading by some departing directors, supervisors, and incumbent directors[98] 2025 Half-Year Restricted Share Change Status | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Ni Haijian | 13,125 | 3,281 | 9,600 | 19,444 | Restricted shares of former senior executives | | Liu Anqin | 0 | 0 | 2,250 | 2,250 | Restricted shares of former senior executives | | Cai Guiru | 0 | 0 | 825 | 825 | Restricted shares of senior executives | | Total | 13,125 | 3,281 | 12,675 | 22,519 | -- | Securities Issuance and Listing Status The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[99] Number of Shareholders and Shareholding Status As of the reporting period end, the company had 17,034 ordinary shareholders, with the controlling shareholder, Jiangsu Shuangxiang Group, holding 64.52% of shares, of which 91 million shares are pledged - Total number of ordinary shareholders at the end of the reporting period was 17,034[100] 2025 Half-Year Shareholding Status of Shareholders Holding 5% or More Ordinary Shares or Top 10 Ordinary Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Ordinary Shares Held at End of Reporting Period (shares) | Increase/Decrease During Reporting Period (shares) | Number of Restricted Ordinary Shares Held (shares) | Number of Unrestricted Ordinary Shares Held (shares) | Pledge, Mark, or Freeze Status (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Shuangxiang Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 64.52 | 173,045,285 | 0 | 0 | 173,045,285 | Pledged 91,000,000 | | Li Shuanghui | Domestic Natural Person | 0.51 | 1,357,600 | 11,700 | 0 | 1,357,600 | N/A 0 | | Ma Ning | Domestic Natural Person | 0.37 | 999,100 | 0 | 0 | 999,100 | N/A 0 | | Yang Longquan | Domestic Natural Person | 0.32 | 862,400 | 240,300 | 0 | 862,400 | N/A 0 | | Zhou Yong | Domestic Natural Person | 0.30 | 793,300 | 0 | 0 | 793,300 | N/A 0 | | Jiang Xue | Domestic Natural Person | 0.28 | 750,000 | -250,000 | 0 | 750,000 | N/A 0 | | Chen Junyan | Domestic Natural Person | 0.26 | 709,100 | 289,100 | 0 | 709,100 | N/A 0 | | Lin Chuan | Domestic Natural Person | 0.26 | 693,200 | -5,300 | 0 | 693,200 | N/A 0 | | Xie Huabin | Domestic Natural Person | 0.26 | 691,800 | 651,100 | 0 | 691,800 | N/A 0 | | Xia Xiaoyan | Domestic Natural Person | 0.25 | 680,000 | -263,000 | 0 | 680,000 | N/A 0 | - The controlling shareholder, Jiangsu Shuangxiang Group Co., Ltd., has 91,000,000 shares pledged[101] - Some of the top 10 ordinary shareholders hold company shares through margin trading and securities lending accounts[102] Changes in Shareholdings of Directors, Supervisors, and Senior Management Independent director Cai Guiru increased her shareholding by 1,100 shares during the reporting period, while other directors, supervisors, and senior management had no changes 2025 Half-Year Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cai Guiru | Independent Director | Incumbent | 0 | 1,100 | 0 | 1,100 | | Total | -- | -- | 0 | 1,100 | 0 | 1,100 | Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[104] - The company's actual controller remained unchanged during the reporting period[104] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[105] Bond Information This chapter confirms that the company had no bond-related matters during the reporting period Bond Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[107] Financial Report This chapter presents the company's unaudited half-year financial statements, including balance sheets, income statements, cash flow statements, and notes to the financial statements Audit Report The company's half-year financial report was not audited - The company's half-year financial report was not audited[109] Financial Statements This section provides the company's 2025 half-year consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity - This section includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[110][114][118][121][124][128][129][133][137][141] Company Basic Information Wuxi Shuangxiang Ultra-Microfiber Material Co., Ltd., established in 2002, specializes in artificial leather, PMMA manufacturing, and hazardous waste disposal, with four wholly-owned subsidiaries - The company was established on December 2, 2002, with a registered capital of CNY 268.209 million[144][148] - Main businesses include plastic artificial leather, synthetic leather manufacturing, PMMA manufacturing, and hazardous waste disposal[149] - A total of 4 wholly-owned subsidiaries were included in the scope of consolidation for this period[152] Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with enterprise accounting standards and relevant CSRC regulations, based on a going concern assumption - The financial statements are prepared in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission[154] - The financial statements are prepared on a going concern basis[155] Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, covering financial instruments, revenue recognition, inventory valuation, and government subsidies - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position[156] - Financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[178] - Revenue is recognized when the customer obtains control of the related goods, distinguishing between performance obligations satisfied over time or at a point in time based on their nature[233][234] - Inventories are measured at the lower of cost and net realizable value, with provisions for inventory impairment recognized[202] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and property tax, with some subsidiaries enjoying preferential tax rates Company's Main Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 6% | | Urban Maintenance and Construction Tax | 7%, 5% | | Corporate Income Tax | 25%, 15% | | Property Tax | 1.2% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | Taxpayers with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate | | :--- | :--- | | The Company | 25% | | Chongqing Ultra-microfiber | 15% | | Suzhou Optical | 15% | | Chongqing Optical | 15% | | Wuxi Optoelectronics | 25% | - Wholly-owned subsidiaries Suzhou Optical, Chongqing Ultra-microfiber, and Chongqing Optical enjoy a 15% preferential corporate income tax rate, while Suzhou Optical and Chongqing Ultra-microfiber also benefit from VAT additional deduction incentives[252][253][254] Notes to Consolidated Financial Statement Items This section provides detailed explanations for various consolidated financial statement items, including cash, financial assets, receivables, inventory, fixed assets, and operating revenue/costs - Cash and bank balances at period-end totaled CNY 350,668,453.97, including CNY 41,508,155.27 in restricted cash[255] - Transactional financial assets at period-end totaled CNY 35,982,761.40, primarily derivative financial assets[257] - Accounts receivable at period-end totaled CNY 72,495,853.25, with bad debt provisions of CNY 21,439,933.42 already made[260] - Inventories had a carrying value of CNY 411,058,993.47 at period-end, including an impairment provision of CNY 8,231,892.38 for finished goods[284] - Fixed assets had a carrying value of CNY 942,441,240.15 at period-end[288] - Short-term borrowings at period-end totaled CNY 80,319,199.53, a decrease from the beginning of the period[304] - Operating revenue for the current period was CNY 1,215,072,398.93, and operating cost was CNY 990,905,343.61[330] - Financial expenses for the current period were -CNY 2,228,520.18, primarily influenced by interest income and exchange gains/losses[339] R&D Expenses The company's total R&D expenses for the current period were CNY 45.10 million, primarily comprising direct input costs and employee compensation, all expensed 2025 Half-Year R&D Expense Composition | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Employee Compensation | 6,410,122.26 | 4,095,527.93 | | Direct Materials | 33,779,983.98 | 24,768,006.57 | | Depreciation and Amortization | 4,121,139.91 | 1,830,529.10 | | Other | 792,551.00 | 1,816,306.84 | | Total | 45,103,797.15 | 32,510,370.44 | | Of which: Expensed R&D expenditures | 45,103,797.15 | 32,510,370.44 | Changes in Consolidation Scope The company's consolidation scope remained unchanged, with no non-same-control or same-control business combinations during the period - No business combinations involving entities under non-common control occurred in this period[368] - No business combinations involving entities under common control occurred in this period[369] Interests in Other Entities The company holds 100% equity in four wholly-owned subsidiaries: Chongqing Ultra-microfiber, Suzhou Optical, Chongqing Optical, and Wuxi Optoelectronics 2025 Half-Year Enterprise Group Composition | Subsidiary Name | Registered Capital | Business Nature | Shareholding Proportion (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Chongqing Ultra-microfiber | 20,000 CNY 10,000 | R&D, production, and sales of ultra-microfiber materials and polyurethane synthetic leather | 100.00 | Established by Investment | | Suzhou Optical | 21,000 CNY 10,000 | R&D, production, and sales of chemical raw materials and products | 100.00 | Established by Investment | | Chongqing Optical | 30,000 CNY 10,000 | R&D, production, and sales of chemical raw materials and products | 100.00 | Established by Investment | | Wuxi Optoelectronics | 3,000 CNY 10,000 | R&D, production, and sales of chemical raw materials and products | 100.00 | Established by Investment | Government Grants The company received CNY 7 million in new asset-related government grants, with CNY 9.63 million recognized as other income from deferred income amortization 2025 Half-Year Liability Items Involving Government Grants | Accounting Account | Beginning Balance (CNY) | New Grants in Current Period (CNY) | Amount Recognized in Other Income for Current Period (CNY) | Ending Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 159,453,999.96 | 7,000,000.00 | 9,625,500.01 | 156,828,499.95 | Asset-related | 2025 Half-Year Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Amortization of Deferred Income | 9,625,500.01 | 6,110,833.34 | | Other income-related government grants | 73,626.00 | 202,000.00 | | VAT additional deduction | 1,313,639.77 | 2,030,893.98 | | Total | 11,012,765.78 | 8,343,727.32 | Risks Related to Financial Instruments The company faces market (exchange rate, interest rate), credit, and liquidity risks, managed through foreign exchange swaps, cash reserves, and credit risk assessments - The company faces market risks (exchange rate risk, interest rate risk), credit risk, and liquidity risk[376] - Exchange rate risk is primarily associated with USD and EUR, which the company manages through foreign exchange swap transactions, but no other hedging measures are employed[377][385] - Interest rate risk primarily arises from bank borrowings, with floating-rate borrowings exposing the company to cash flow interest rate risk[379] - Credit risk primarily stems from financial assets, and the company measures impairment provisions by assessing credit risk and segmenting portfolios[382] - Liquidity risk is managed by maintaining sufficient cash and bank credit lines, with unused bank credit lines totaling CNY 886 million at period-end[384] Fair Value Disclosure The company's fair value-measured financial instruments include derivative financial assets (Level 2) and receivables financing (Level 3), with the latter valued at face amount due to short maturity 2025 Half-Year Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (CNY) | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | --- | 35,982,761.40 | --- | 35,982,761.40 | | Receivables financing | --- | --- | 22,786,594.44 | 22,786,594.44 | | Total Assets | --- | 35,982,761.40 | 22,786,594.44 | 58,769,355.84 | - Receivables financing (notes receivable) is recognized at face amount due to its short remaining holding period[389][390] Related Parties and Related Party Transactions The company's controlling shareholder is Jiangsu Shuangxiang Group, with Tang Bingquan as the ultimate controller, and engages in various routine related party transactions - The company's controlling shareholder is Jiangsu Shuangxiang Group Co., Ltd., and the ultimate controlling party is Tang Bingquan[391] 2025 Half-Year Related Party Transactions for Purchase of Goods and Acceptance of Services | Related Party | Content of Related Party Transaction | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | :--- | | Chongqing Yixiang Chemical Co., Ltd. | Material procurement | 630,086,902.19 | 498,370,723.69 | | C