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浪莎股份(600137) - 2025 Q2 - 季度财报
LangshaLangsha(SH:600137)2025-08-25 10:35

Important Notice This section provides crucial disclaimers and statements regarding the report's accuracy, audit status, profit distribution, forward-looking statements, and significant risks Statement by Board of Directors and Management The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions, with financial report integrity affirmed by key personnel - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report4 - The company's head, chief accountant, and head of accounting department declare the financial report is true, accurate, and complete6 Audit Status of the Report This semi-annual report has not been audited - This semi-annual report has not been audited6 Profit Distribution Plan For the current reporting period, the company has not formulated a profit distribution plan or a capital reserve capitalization plan - For the current reporting period, the company has not formulated a profit distribution plan or a capital reserve capitalization plan7 Forward-Looking Statements Risk Disclaimer Forward-looking statements regarding future plans in this report do not constitute a substantive commitment to investors, who are advised to be aware of investment risks - Forward-looking statements regarding future plans in this report do not constitute a substantive commitment to investors8 - Investors are advised to be aware of investment risks8 Fund Occupation and Guarantees The company has no non-operating fund occupation by controlling shareholders or other related parties, nor does it provide external guarantees in violation of prescribed decision-making procedures - There is no non-operating fund occupation by controlling shareholders or other related parties9 - There are no external guarantees provided in violation of prescribed decision-making procedures9 Significant Risk Warning The company has detailed existing risks in this report, and investors are advised to pay attention - The company has detailed existing risks in this report, and investors are advised to pay attention9 Section I Definitions This section provides definitions for key terms used throughout the report to ensure accurate interpretation Definitions of Common Terms This section defines common terms used in the report, clarifying the specific meanings of key terms such as "Company," "Controlling Shareholder," "Wholly-owned Subsidiary," and "Reporting Period" to ensure accurate interpretation - "Company" refers to Sichuan Langsha Holding Co., Ltd18 - "Controlling Shareholder" refers to Langsha Holding Group Co., Ltd18 - "Reporting Period" refers to January 1, 2025, to June 30, 202518 Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents its key financial performance metrics and indicators I. Company Information This section provides the company's basic registration information, including its Chinese name, abbreviation, foreign name, acronym, and legal representative - The company's Chinese name is Sichuan Langsha Holding Co., Ltd., abbreviated as Langsha Stock15 - The legal representative is Weng Rongdi15 II. Contact Person and Contact Information This section lists the contact information for the company's Board Secretary and Securities Affairs Representative, including name, address, telephone, fax, and email - Both the Board Secretary and Securities Affairs Representative are Ma Zhongming16 - The contact address is No. 63 Wainan Street, Yibin City, Sichuan Province16 III. Introduction to Changes in Basic Information This section introduces basic company information such as registered address, office address, postal code, company website, and email address - The company's registered address and office address are both No. 63 Wainan Street, Yibin City, Sichuan Province17 - The company's website is http://www.langshastock.com[17](index=17&type=chunk) IV. Introduction to Changes in Information Disclosure and Document Custody Locations This section specifies the designated newspaper and website for company information disclosure, as well as the custody location for the semi-annual report - The company's selected newspaper for information disclosure is "Shanghai Securities News"19 - The website address for publishing the semi-annual report is Shanghai Stock Exchange http://www.sse.com.cn[19](index=19&type=chunk) V. Company Stock Profile This section provides basic information about the company's stock, including stock type, listing exchange, stock abbreviation, and code - The company's stock is A-shares, listed on the Shanghai Stock Exchange20 - The stock abbreviation is Langsha Stock, and the stock code is 60013720 VII. Company's Key Accounting Data and Financial Indicators In H1 2025, the company's total operating revenue decreased by 4.41% to 141.44 million yuan, while net profit increased by 22.70% to 10.54 million yuan, with net profit after non-recurring gains and losses growing by 35.17%, mainly driven by substantial interest income and new trademark usage fees Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 141,442,749.71 yuan | 147,972,645.03 yuan | -4.41 | | Total Profit | 12,380,978.85 yuan | 9,191,711.18 yuan | 34.70 | | Net Profit Attributable to Shareholders of Listed Company | 10,537,357.41 yuan | 8,587,792.90 yuan | 22.70 | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | 10,847,660.81 yuan | 8,025,231.31 yuan | 35.17 | | Net Cash Flow from Operating Activities | -10,204,465.71 yuan | -23,633,195.19 yuan | 56.82 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 533,624,581.55 yuan | 541,169,695.51 yuan | -1.39 | | Total Assets (Period-end) | 684,067,848.71 yuan | 686,022,339.16 yuan | -0.28 | Key Financial Indicators for H1 2025 | Main Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.108 | 0.088 | 22.73 | | Diluted Earnings Per Share (yuan/share) | 0.108 | 0.088 | 22.73 | | Basic EPS After Non-Recurring Gains and Losses (yuan/share) | 0.112 | 0.083 | 34.94 | | Weighted Average Return on Net Assets (%) | 1.93 | 1.60 | 0.33 | | Weighted Average Return on Net Assets After Non-Recurring Gains and Losses (%) | 1.99 | 1.50 | 0.49 | - Net profit growth was primarily due to interest income from matured three-year large-amount bank time deposits and new trademark usage fee income22 IX. Non-Recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for H1 2025, totaling -310,303.40 yuan, primarily comprising gains/losses on disposal of non-current assets, government grants, financial asset investment income, reversal of impairment provisions for receivables, debt restructuring losses, and other non-operating income/expenses Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (yuan) | Notes (if applicable) | | :--- | :--- | :--- | | Gains/losses on disposal of non-current assets | 12,089.51 | Gains from disposal of scrapped fixed asset vehicles | | Government grants recognized in profit or loss | 155,327.70 | Received Yiwu Economic and Information Bureau - Industrial Enterprise Per-Mu Output Efficiency Comprehensive Evaluation Class A Enterprise Policy Fulfillment Award of 6,546.90 yuan; received Yiwu Science and Technology Bureau - R&D Expense Super Deduction Incentive of 148,780.80 yuan | | Gains/losses from changes in fair value of financial assets/liabilities held by non-financial enterprises and from disposal of financial assets/liabilities | 13,639.96 | The company's investment in Industrial and Commercial Bank of China structured deposit products matured and principal was recovered with investment income in the current period | | Reversal of impairment provisions for individually assessed receivables | 61,273.21 | Recovered part of individually assessed litigated claims within other receivables in the current period, with corresponding reversal of bad debt provisions for other receivables | | Gains/losses from debt restructuring | -12,273.21 | According to the resolution of Langsha Underwear Co., Ltd.'s board of directors and the settlement agreement reached, the company waived the remaining outstanding amount of 12,273.21 yuan from customer Pang Suping, which was recognized as debt restructuring loss in the current period | | Other non-operating income and expenses not listed above | -503,183.54 | | | Less: Income tax impact | 37,177.03 | | | Total | -310,303.40 | | Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's industry, business operations, financial performance, core competencies, and future strategies I. Description of the Company's Industry and Main Business During the Reporting Period The company's main business is the production and sale of knitted underwear in the textile and apparel industry, including thermal underwear, fashion underwear, shorts, and bras, utilizing an OEM model combined with in-house production and direct sales, while actively expanding integrated online and offline channels; the industry faces consumer differentiation, accelerated technological innovation, and omnichannel sales transformation, yet underwear demand remains weak amid fierce competition - The company's main business is apparel manufacturing and wholesale, belonging to the textile and apparel industry, specifically the knitted underwear sector27 - Key products include thermal underwear, fashion underwear, shorts, and bras27 - The operating model primarily involves OEM with independent design and outsourced production supply chain management, combined with in-house production and direct sales29 - Online sales account for 76.17%, while offline sales account for 23.83%32 - R&D investment in H1 2025 was 5.16 million yuan, representing 3.65% of operating revenue33 - The industry faces trends such as intensified consumer differentiation, accelerated innovation driving industry transformation, and omnichannel sales leading channel reform, yet underwear consumer demand remains weak with fierce existing competition2834 II. Discussion and Analysis of Operations In H1 2025, the company's total operating revenue decreased by 4.41%, but net profit increased by 22.70%, primarily due to interest income and trademark usage fees; in the second half, the company will focus on market-oriented and digital innovation, optimizing its marketing network, expanding live-streaming e-commerce, and strengthening product R&D to enhance brand influence and performance - In H1 2025, total operating revenue was 141 million yuan, a 4.41% year-on-year decrease; net profit was 10.54 million yuan, a 22.70% year-on-year increase34 - Key priorities for the second half include continuous market-oriented innovation, integrating into the new national trend industry cycle, and strengthening omnichannel marketing network construction and online sales3637 - Continuously drive digital innovation, cultivate new industrial momentum for the company, and strengthen application innovation around intelligent operations, products, and services38 - Continue to excel in new product R&D, establish Langsha as an expert in healthy and comfortable underwear, and strengthen industry-university cooperation39 III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its brand, channel, and market advantages, with the Langsha underwear brand holding recognition and competitive edge, expanding sales channels through e-commerce and live streaming, and providing high-quality products and services with a consumer-centric approach - The company possesses a "Langsha Underwear" brand advantage, with product design philosophy, channel development, quality management, and product innovation investment ensuring market competitive advantage40 - The company has established a channel advantage through tools such as e-commerce, membership models, private domain traffic operations, and social/community/live streaming40 - The company adheres to a customer-centric approach, enhancing service marketing capabilities and meeting consumer needs through collaboration among R&D, technology, supply chain, and brand departments40 IV. Major Operating Conditions During the Reporting Period This section provides a detailed analysis of the company's H1 2025 financial statement item changes, main business composition, industry, product, and regional operating conditions, as well as asset-liability status and investment situation; operating revenue decreased but gross margin improved, and net profit increased, primarily due to reduced financial expenses and trademark usage fee income - Operating revenue decreased by 4.41% year-on-year, operating costs decreased by 14.43% year-on-year, selling expenses significantly increased by 121.07% year-on-year, and financial expenses significantly decreased by 305.18% year-on-year41 - The increase in selling expenses was mainly due to the launch of self-operated live-streaming business in October 2024, adding live-streaming fees such as commissions and traffic acquisition costs41 - The decrease in financial expenses was primarily due to interest income from matured three-year large-amount bank time deposits42 - Main business revenue decreased by 9.83%, but gross margin increased by 4.69 percentage points, mainly due to higher pricing strategies for self-operated live-streaming sales44 - Other business income increased by 3279.68%, primarily due to new trademark usage fee income44 - Shorts product revenue accounted for 61.38% of main business revenue, making it the primary source of income47 - The East China region is the main sales market, accounting for 88.81% of main business revenue49 - The gross margin for the self-operated live-streaming model was as high as 67.57%, significantly higher than the 18.98% for the distribution model50 V. Other Disclosures The company faces risks such as textile industry transformation, market consumer differentiation, irregular industry competition, overcapacity, seasonal fluctuations in product sales, and insufficient technological innovation capabilities, which it plans to address through "Quality Improvement, Efficiency Enhancement, and Returns" and "Consumer Confidence Boosting" action plans - The company faces risks of the textile industry transforming from a quantity-driven to a quality- and efficiency-driven model, as well as challenges such as weaker-than-expected consumer recovery, labor shortages, and declining gross margins69 - Market risks include intensified consumer differentiation, requiring vigorous promotion of product and brand innovation to adapt to the market70 - Industry competition is unregulated, with issues of low-level redundant construction and product plagiarism70 - The industry suffers from overcapacity and low enterprise concentration, necessitating increased capital investment and technological content71 - Sales of main products are seasonal, potentially leading to unsalable inventory and increased stock71 - Insufficient technological innovation capability and core competitiveness are being addressed by the company through increased R&D investment72 Section IV Corporate Governance, Environment and Society This section covers changes in the company's board and senior management, as well as its profit distribution plans I. Changes in Directors and Senior Management During the reporting period, the company's board of directors and senior management underwent changes, with Weng Rongdi and Jin Zhoubin elected as non-independent directors, Luo Zhongwei, Yu Xiaofeng, and Zhao Kewei as independent directors, Weng Rongdi appointed as Chairman and General Manager, Lu Mingliang as Chief Financial Officer, and Ma Zhongming as Board Secretary, while some former directors and the previous CFO resigned - Weng Rongdi and Jin Zhoubin were elected as non-independent directors of the Twelfth Board of Directors75 - Luo Zhongwei, Yu Xiaofeng, and Zhao Kewei were elected as independent directors of the Twelfth Board of Directors75 - Weng Rongdi was elected as Chairman, Chairman of the Strategy Committee, and General Manager75 - Lu Mingliang was appointed as Chief Financial Officer, and Ma Zhongming was appointed as Board Secretary75 - Former Vice Chairman and Deputy General Manager Weng Xiaofeng, Director Weng Xiaofei, Independent Director He Yuanfu, and Chief Financial Officer Zhou Zongqin resigned75 II. Profit Distribution or Capital Reserve Capitalization Plan For the current reporting period, the company has not formulated a profit distribution plan or a capital reserve capitalization plan - For the current reporting period, the company has not formulated a profit distribution plan or a capital reserve capitalization plan76 Section V Significant Matters This section details significant legal proceedings, related party transactions, and other material events affecting the company VII. Significant Litigation and Arbitration Matters The company had multiple significant lawsuits during the reporting period, primarily involving customer payment arrears, with a total disputed amount of 13.39 million yuan; most cases have resulted in favorable judgments or are in the enforcement stage, but due to debtors lacking executable assets or recovery difficulties, the company has fully provided for bad debt reserves - The company has multiple significant lawsuits, primarily sales contract disputes involving customer payment arrears81828384 - The total disputed amount is 13,388,993.33 yuan84 - Most cases have resulted in favorable judgments or are in the enforcement stage, but due to recovery difficulties from debtors, the company has fully provided for bad debt reserves81828384 X. Significant Related Party Transactions The company engages in daily operating related purchase and sale of goods and acceptance of services transactions with related party Langsha Knitting Co., Ltd., as well as related party creditor-debtor relationships, all adhering to market fair principles and not infringing upon any party's interests - The company has related party transactions with Langsha Knitting Co., Ltd. (a group sister company)858790 Related Party Transactions with Langsha Knitting Co., Ltd. for H1 2025 | Related Party Transaction Type | Related Party Transaction Content | Amount for Current Period (yuan) | Proportion of Similar Transactions (%) | | :--- | :--- | :--- | :--- | | Purchase of Goods | Socks products, cardboard products | 57,494.85 | 0.06 | | Acceptance of Services | Dyeing and processing services | 474,893.49 | 0.50 | | Sale of Goods | Underwear products | 8,218,344.16 | 6.17 | - Related party transactions adhere to market fair principles and do not infringe upon any party's interests87 - Accounts receivable from Langsha Knitting Co., Ltd. at period-end totaled 1,031,731.52 yuan, which was fully recovered before the report's issuance date90 Section VI Changes in Shares and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure94 II. Shareholder Information As of the end of the reporting period, the company had 14,734 common shareholders; controlling shareholder Langsha Holding Group Co., Ltd. held 43.89% of shares, and Tibet Julang Technology Co., Ltd. held 13.97%, with both having a portion of their shares pledged - As of the end of the reporting period, the total number of common shareholders was 14,73495 Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-end (shares) | Proportion (%) | Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | | Langsha Holding Group Co., Ltd. | 42,664,755 | 43.89 | 27,000,000 | | Tibet Julang Technology Co., Ltd. | 13,581,500 | 13.97 | 13,580,000 | | Shenzhen Energy Group Co., Ltd. | 1,079,477 | 1.11 | 0 | | Ni Zhifeng | 702,000 | 0.72 | 0 | | Yang Zizhe | 423,000 | 0.44 | 0 | | Industrial and Commercial Bank of China Co., Ltd. - Huaxia Pantai Mixed Securities Investment Fund (LOF) | 396,700 | 0.41 | 0 | | Feng Cheng | 321,000 | 0.33 | 0 | | BARCLAYS BANK PLC | 309,020 | 0.32 | 0 | | Gu Liping | 300,000 | 0.31 | 0 | | Chen Mei | 297,200 | 0.31 | 0 | - Controlling shareholder Langsha Holding Group Co., Ltd. pledged 27 million shares, and Tibet Julang Technology Co., Ltd. pledged 13.58 million shares96 Section VII Bond-Related Information This section confirms the absence of company bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period I. Company Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no company bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no company bonds (including enterprise bonds) or non-financial enterprise debt financing instruments101 II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds101 Section VIII Financial Report This section presents the company's complete financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, taxes, and financial items II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation - The consolidated balance sheet shows that as of June 30, 2025, total assets were 684 million yuan, and net assets attributable to shareholders of the listed company were 534 million yuan103104 - The consolidated income statement shows that in H1 2025, total operating revenue was 141 million yuan, and net profit attributable to shareholders of the listed company was 10.54 million yuan108109 - The consolidated cash flow statement shows that net cash flow from operating activities was -10.20 million yuan, net cash flow from investing activities was -0.36 million yuan, and net cash flow from financing activities was 49.95 million yuan113114 III. Company Basic Information The company, formerly Sichuan Changjiang Paper Mill, listed in 1998, completed share reform in 2007 with Langsha Holding Group Co., Ltd. becoming the controlling shareholder, and primarily operates in the textile and apparel industry, focusing on the manufacturing and sales of knitted underwear and fabrics - The company's predecessor was Sichuan Changjiang Paper Mill, listed in 1998123 - The controlling shareholder is Langsha Holding Group Co., Ltd., holding 43.89% of shares123 - Main businesses include manufacturing of knitted underwear and knitted fabrics, wholesale and retail of goods, import and export, and investment management consulting123 - The scope of consolidated financial statements includes wholly-owned subsidiary Zhejiang Langsha Underwear Co., Ltd. and its eight sub-subsidiaries124 IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance, their accompanying guidelines and interpretations, and relevant disclosure regulations of the China Securities Regulatory Commission; management believes there is no significant doubt about the company's ability to continue as a going concern for the next 12 months - Financial statements are prepared on a going concern basis, in compliance with Enterprise Accounting Standards and CSRC disclosure regulations125 - The company believes there is no significant doubt about its ability to continue as a going concern for the next 12 months126 V. Significant Accounting Policies and Estimates This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering financial instruments, inventories, fixed assets, intangible assets, revenue recognition, government grants, and explaining major judgments and assumptions involved in accounting estimates - The company adheres to Enterprise Accounting Standards, with the accounting year from January 1 to December 31, an operating cycle of 12 months, and the functional currency being RMB128129130131 - Financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss139 - Accounts receivable and contract assets adopt a simplified measurement approach, with loss provisions measured at expected credit losses over their entire lifetime150158175 - Inventories are measured at the lower of cost and net realizable value, with impairment provisions made for individual inventory items or combinations171172 - Fixed assets are depreciated using the straight-line method, and intangible assets are amortized using the straight-line method over their useful lives185193 - Revenue recognition principles are based on the satisfaction of performance obligations over time or at a point in time, considering the transfer of control to the customer203204 VI. Taxes The company's main taxes include VAT, urban maintenance and construction tax, education surcharge, local education surcharge, corporate income tax, property tax, and land use tax; the company and its subsidiaries benefit from multiple tax incentives, including high-tech enterprise income tax preferences, small and micro-enterprise income tax preferences, export tax rebates, R&D expense super deductions, and VAT exemptions for small-scale taxpayers Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales revenue, rental income | Sales revenue 13%, sales revenue * 3% collection rate, rental income 5% | | Urban Maintenance and Construction Tax | Payable turnover tax | 7% | | Education Surcharge | Payable turnover tax | 3% | | Local Education Surcharge | Payable turnover tax | 2% | | Corporate Income Tax | Taxable income | 25% | - Langsha Underwear Co., Ltd., as a high-tech enterprise, is subject to a corporate income tax rate of 15%232 - Some sub-subsidiaries, as small and micro-profit enterprises, enjoy a corporate income tax preference where the portion of annual taxable income not exceeding 1 million yuan is included in taxable income at 25% and taxed at a 20% rate232 - Langsha Underwear Co., Ltd. enjoys an export tax rebate rate of 13% for its export products233 - Enterprise R&D expenses enjoy a 100% pre-tax super deduction policy233 - Small-scale VAT taxpayers enjoy VAT exemption for monthly sales below 100,000 yuan, and a reduced 1% collection rate for those applicable to a 3% collection rate233234 VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various assets, liabilities, owners' equity, income, costs, and expenses in the consolidated financial statements, explaining period-end balances, period-start balances, and the changes and reasons for the current period, with significant changes noted in monetary funds, notes payable, other payables, and deferred income - Period-end monetary funds totaled 461 million yuan, of which 265 million yuan were restricted funds (deposits, live-streaming platform funds, ETC frozen funds), and 260 million yuan were time deposits exceeding three months236310 - Period-end accounts receivable totaled 38.56 million yuan, with bad debt provisions of 6.36 million yuan, resulting in a book value of 32.20 million yuan241 - Period-end other receivables totaled 26.24 million yuan, with bad debt provisions of 20.82 million yuan, resulting in a book value of 5.42 million yuan, mainly due to an increase in disputed claims and deposits260262263270 - Period-end inventory book value was 37.49 million yuan, with inventory impairment provisions of 63.38 million yuan, primarily due to inventory write-downs for finished goods271274 - Period-end notes payable totaled 52.72 million yuan, an increase of 57.99% from the period-start, mainly due to increased use of bank acceptance bills for goods settlement312 - Period-end accounts payable totaled 57.75 million yuan, a decrease of 34.28% from the period-start, mainly due to significant payments for prior period goods314315 - Period-end other payables totaled 22.50 million yuan, an increase of 675.78% from the period-start, mainly due to the newly added payable of 18.08 million yuan for 2024 pre-tax cash dividends325328 - Period-end deferred income totaled 0.26 million yuan, an increase of 275.45% from the period-start, mainly due to new long-term rental income from a first-floor shop on Chengxin Avenue340 VIII. R&D Expenses In H1 2025, the company's total R&D expenses were 5.16 million yuan, all expensed, primarily for material costs and employee wages and benefits Composition of R&D Expenses for H1 2025 | Item | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Material Costs | 2,475,700.11 | 2,232,402.42 | | Employee Wages and Benefits | 2,526,928.03 | 2,176,317.50 | | Depreciation Expense | 99,878.51 | 67,427.17 | | Other Expenses | 54,132.82 | 121,610.60 | | Total | 5,156,639.47 | 4,597,757.69 | | Of which: Expensed R&D Expenditure | 5,156,639.47 | 4,597,757.69 | - All R&D expenses for the current period were expensed, with no capitalized R&D expenditure393 IX. Changes in Consolidation Scope During the reporting period, the company had no changes in consolidation scope due to business combinations not involving entities under common control, business combinations involving entities under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company had no changes in consolidation scope due to business combinations not involving entities under common control394 - During the reporting period, the company had no changes in consolidation scope due to business combinations involving entities under common control394 - During the reporting period, the company had no changes in consolidation scope due to reverse acquisitions395 - During the reporting period, the company had no loss of control over subsidiaries due to disposal395 X. Interests in Other Entities The company's enterprise group consists of wholly-owned subsidiary Zhejiang Langsha Underwear Co., Ltd. and its eight sub-subsidiaries, all fully controlled and primarily engaged in apparel manufacturing and trade, with Yiwu Youdou Apparel Co., Ltd. currently undergoing liquidation procedures Composition of Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (yuan) | Business Nature | Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Langsha Underwear Co., Ltd. | Yiwu, Zhejiang | 150,000,000.00 | Apparel Manufacturing | 100.00 (Direct) | | Yiwu Lanye Apparel Co., Ltd. | Yiwu, Zhejiang | 2,000,000.00 | Apparel Manufacturing | 100.00 (Indirect) | | Yiwu Langsha Yunyun Trading Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | | Yiwu Langsha Jingyu Trading Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | | Yiwu Langsha Guanmeng Trading Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | | Yiwu Langsha Mengtian Trading Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | | Yiwu Langsha Senqing Trading Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | | Yiwu Langsha Tiancan Trading Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | | Yiwu Youdou Apparel Co., Ltd. | Yiwu, Zhejiang | 100,000.00 | Apparel Trading | 100.00 (Indirect) | - Yiwu Youdou Apparel Co., Ltd. has not yet opened accounts and is currently undergoing liquidation procedures396 XI. Government Grants In H1 2025, the company received government grants related to income totaling 155,327.70 yuan, primarily including R&D expense super deduction incentives and policy fulfillment awards for Class A industrial enterprises based on per-mu output efficiency comprehensive evaluation Government Grants Recognized in Profit or Loss for H1 2025 | Type | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Related to Income | 155,327.70 | 229,430.00 | | Related to Assets | 0 | 0 | | Total | 155,327.70 | 229,430.00 | - Government grants primarily include R&D expense super deduction incentives and policy fulfillment awards for Class A industrial enterprises based on per-mu output efficiency comprehensive evaluation362 XII. Risks Related to Financial Instruments The company faces credit risk, market risk (interest rate risk and foreign exchange risk), and liquidity risk, which it manages through measures such as credit limit control, credit approval, and monitoring cash and cash equivalents, believing these risks are controlled within acceptable limits - The company's main financial instruments include monetary funds, accounts receivable, notes receivable, borrowings, and notes payable400 - The company faces credit risk, market risk (interest rate risk and foreign exchange risk), and liquidity risk400 - Credit risk is managed through measures such as credit limit control, credit approval, and provision for expected credit losses401 - Monetary funds are deposited in banks with higher credit ratings, resulting in lower credit risk401 - The company has minimal import and export business, so exchange rate fluctuations do not significantly impact the company402 - Liquidity risk is managed by maintaining sufficient cash and cash equivalents403 XIII. Disclosure of Fair Value At period-end, the company's assets measured at fair value primarily consist of other equity instrument investments, totaling 1 million yuan, classified as Level 3 fair value measurements, with this investment measured at its cost as a reasonable estimate of fair value Fair Value Measurement Items at Period-end | Item | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | | Other Equity Instrument Investments | 1,000,000.00 | 1,000,000.00 | | Total Assets Continuously Measured at Fair Value | 1,000,000.00 | 1,000,000.00 | - Other equity instrument investments (Dongfang Huifu Hangzhou Angel Fund Phase I Private Equity Project) are measured at investment cost as a reasonable estimate of fair value407 XIV. Related Parties and Related Party Transactions The company's controlling shareholder is Langsha Holding Group Co., Ltd., with ultimate control held by Weng Rongjin, Weng Rongdi, and Weng Guanrong; the company engages in daily related party transactions such as purchase and sale of goods and acceptance of services with Langsha Knitting Co., Ltd., as well as related party creditor-debtor relationships, all adhering to market fair principles - The company's controlling shareholder is Langsha Holding Group Co., Ltd., with ultimate control held by Weng Rongjin, Weng Rongdi, and Weng Guanrong409410 - Langsha Knitting Co., Ltd. is a group sister company, controlled by the same ultimate controller as the company409411 Related Party Transactions with Langsha Knitting Co., Ltd. for H1 2025 | Related Party Transaction Type | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Purchase of Goods/Acceptance of Services | 532,388.34 | 723,877.65 | | Sale of Goods/Provision of Services | 8,218,344.16 | 19,382,276.83 | - Related party transaction prices are determined according to market fair principles and do not infringe upon any party's interests414 - Accounts receivable from Langsha Knitting Co., Ltd. at period-end totaled 1,031,731.52 yuan, which was fully recovered before the report's issuance date418 XVI. Commitments and Contingencies As of the end of the reporting period, the company had multiple significant contingent matters, primarily litigation cases involving accounts receivable with a total book balance of 20.22 million yuan; most cases have entered the litigation or judgment enforcement stage, but due to recovery difficulties, the company has made substantial bad debt provisions - The company has 70 litigation cases involving accounts receivable, with a total book balance of 20,223,432.91 yuan423 - Most of these cases are in the preparation for litigation, ongoing litigation, or judgment enforcement stages422423 - Due to recovery difficulties, the company has provided for bad debts totaling 20,131,843.25 yuan423 XVII. Events After the Balance Sheet Date After the balance sheet date, the company distributed 18.08 million yuan in pre-tax cash dividends for 2024 on July 16, 2025; additionally, wholly-owned subsidiary Langsha Underwear Co., Ltd. signed a factory lease contract to rent out 12,663 square meters of factory space for a term of 6 years, with annual rent ranging from approximately 2.66 million yuan to 2.74 million yuan - The shareholders' meeting on June 20, 2025, resolved to distribute 18,082,471.37 yuan in pre-tax cash dividends for 2024 to all shareholders, which was distributed on July 16, 2025425 - Wholly-owned subsidiary Langsha Underwear Co., Ltd. signed a factory lease contract to rent out 12,663 square meters of factory space for a term of 6 years (January 1, 2026, to December 31, 2031)426 - The annual rent for the first year is 2.66 million yuan, and for the second to sixth years, it is 2.74 million yuan annually426 XVIII. Other Significant Matters The company's strategic investment of 1 million yuan in the Dongfang Huifu Hangzhou Angel Fund Phase I Private Equity Project has submitted an exit application, but the actual exit timeline remains uncertain - The company has submitted an application to exit the Dongfang Huifu Hangzhou Angel Fund Phase I Private Equity Project, totaling 1 million yuan427 - The target fund of this private equity project is currently disposing of its equity investments, and the actual exit timeline remains uncertain427 XIX. Notes to Main Items of Parent Company Financial Statements This section provides notes to the main items of the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments; the parent company's period-start dividends receivable of 21 million yuan were recovered by period-end, and long-term equity investments, primarily in subsidiary Zhejiang Langsha Underwear Co., Ltd., maintained an unchanged book value at period-end - The parent company's period-start dividends receivable were 21 million yuan, with a period-end balance of 0, indicating full recovery430433 - The parent company's long-term equity investments primarily consist of investments in subsidiary Zhejiang Langsha Underwear Co., Ltd., with a period-end book value of 460,435,265.10 yuan, consistent with the period-start437439 XX. Supplementary Information This section provides supplementary information including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share; total non-recurring gains and losses amounted to -310,303.40 yuan, with the company's weighted average return on net assets at 1.93% and basic earnings per share at 0.108 yuan Total Non-Recurring Gains and Losses for H1 2025 | Item | Amount (yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets | 12,089.51 | | Government grants recognized in profit or loss | 155,327.70 | | Gains/losses from financial assets and liabilities | 13,639.96 | | Reversal of impairment provisions for receivables | 61,273.21 | | Gains/losses from debt restructuring | -12,273.21 | | Other non-operating income and expenses | -503,183.54 | | Less: Income tax impact | 37,177.03 | | Total | -310,303.40 | Return on Net Assets and Earnings Per Share for H1 2025 | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (yuan) | Diluted Earnings Per Share (yuan) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 1.93 | 0.108 | 0.108 | | Net Profit Attributable to Common Shareholders of the Company After Non-Recurring Gains and Losses | 1.99 | 0.112 | 0.112 |