山东药玻(600529) - 2025 Q2 - 季度财报

Important Notice Board of Directors, Supervisory Board, and Senior Management Statement The Board of Directors, Supervisory Board, and senior management affirm the report's truthfulness and completeness, with all directors present and the report unaudited - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[3] - All company directors attended the board meeting[4] - This semi-annual report is unaudited[5] Profit Distribution Plan The Board of Directors approved the H1 2025 profit distribution plan, proposing a cash dividend of CNY 2.80 (tax inclusive) per 10 shares, totaling CNY 186 million H1 2025 Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Distribution Base | 663,614,113 shares | | Cash Dividend per 10 Shares | CNY 2.80 (tax inclusive) | | Total Proposed Cash Dividend | CNY 185,811,951.64 | Forward-Looking Statements Risk Disclaimer Forward-looking statements regarding business plans and development strategies in this report do not constitute a substantive commitment to investors, who are advised to be aware of investment risks - Forward-looking descriptions in this report, such as business plans and development strategies, do not constitute a substantive commitment by the company to investors, who are advised to be aware of investment risks[7] Fund Occupation and External Guarantees During the reporting period, the company had no non-operating fund occupation by controlling shareholders or related parties, nor any external guarantees violating prescribed decision-making procedures - No non-operating fund occupation by controlling shareholders or other related parties existed[8] - No external guarantees were provided in violation of prescribed decision-making procedures[8] Significant Risk Warning During the reporting period, no significant risks substantially impacting the company's production and operations were identified - During the reporting period, no significant risks substantially impacting the company's production and operations existed[8] Section I Definitions Definitions of Common Terms This section defines key professional terms used in the report, including pharmaceutical glass products like molded bottle series and amber bottle series - Molded bottle series include soda-lime glass molded injection vials, infusion bottles, medicine bottles (clear), medium borosilicate glass molded injection vials, infusion bottles, food bottles, medicine bottles, glass cosmetic bottles, and glass food packaging bottles[13] - Amber bottle series refer to soda-lime glass molded medicine bottles (amber) and soda-lime glass molded injection vials (amber material) products[13] Section II Company Profile and Key Financial Indicators Company Basic Information This section provides basic company information, including Chinese name, abbreviation, foreign name, legal representative, registered address, contact details, and stock overview - The company's Chinese name is Shandong Pharmaceutical Glass Co, Ltd, abbreviated as Shandong Pharma Glass, with Hu Yonggang as the legal representative[15] - The company's registered and office addresses are both located in Yiyuan County, Zibo City, Shandong Province[17] - The company's shares are A-shares, listed on the Shanghai Stock Exchange, with stock code 600529[19] Key Accounting Data and Financial Indicators In H1 2025, the company's operating revenue and total profit decreased year-on-year, with a significant reduction in net cash flow from operating activities, while net assets attributable to shareholders slightly increased, and both basic earnings per share and weighted average return on net assets declined H1 2025 Key Accounting Data | Key Accounting Data | This Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,373,844,830.37 | 2,585,950,518.30 | -8.20 | | Total Profit | 441,547,642.49 | 582,122,742.49 | -24.15 | | Net Profit Attributable to Shareholders of Listed Company | 371,141,622.00 | 475,166,643.60 | -21.89 | | Net Cash Flow from Operating Activities | 299,440,746.65 | 588,964,181.94 | -49.16 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 8,164,541,663.48 | 8,007,769,690.55 | 1.96 | | Total Assets (Period-end) | 9,975,462,578.52 | 10,140,009,365.84 | -1.62 | H1 2025 Key Financial Indicators | Key Financial Indicators | This Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.5593 | 0.7160 | -21.89 | | Diluted Earnings Per Share (CNY/share) | 0.5593 | 0.7160 | -21.89 | | Weighted Average Return on Net Assets (%) | 4.55 | 6.15 | -1.60 | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 4.35 | 5.89 | -1.54 | Non-Recurring Gains and Losses Items and Amounts The company's H1 2025 non-recurring gains and losses totaled CNY 16.14 million, primarily from fair value changes and government subsidies H1 2025 Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Items | Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -2,887,973.55 | | Government Subsidies Included in Current Period Gains and Losses | 6,183,059.13 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 13,674,585.30 | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 961,193.98 | | Other Non-Operating Income and Expenses | 760,656.71 | | Other Gains and Losses Items Meeting the Definition of Non-Recurring Gains and Losses | 366,023.06 | | Less: Income Tax Impact | 2,913,218.27 | | Total | 16,144,326.36 | Section III Management Discussion and Analysis Industry and Main Business Overview The company primarily researches, produces, and sells pharmaceutical glass bottles for drugs, health products, and cosmetics, operating in a regulated, competitive industry transitioning to associated review and approval, with the company establishing a comprehensive packaging system and actively expanding internationally - The company's main products belong to the 'Pharmaceutical Excipients and Packaging Materials Manufacturing' and 'Glass Packaging Container Manufacturing' industries[25] - The regulatory system for the pharmaceutical glass industry has shifted from registration and approval to associated review, with pharmaceutical packaging materials and drugs undergoing joint approval[26][27] - The company is a leading enterprise in China's pharmaceutical glass industry, sharing market share with major domestic and international companies like Gerresheimer and Schott[34][35] - The company's main business and products remain unchanged, having formed a complete packaging product system including glass bottles, butyl rubber stoppers, aluminum-plastic composite caps, and plastic bottles, with over a thousand product specifications[36][38] Industry Regulators and Regulatory System The pharmaceutical glass industry is regulated by the National Medical Products Administration, implementing an associated review and approval system for packaging materials and drugs to ensure quality is assessed concurrently with drug registration applications - The pharmaceutical glass industry belongs to the medical packaging materials sector, with the National Medical Products Administration as the government regulatory body[26] - China's pharmaceutical packaging materials industry regulatory system has transitioned from registration and approval to an associated review system, requiring packaging materials to be reviewed and approved concurrently with drug registration applications[26][27] Key Industry Laws, Regulations, and Industrial Policies The state has introduced policies to support and regulate the pharmaceutical packaging materials industry, including strengthening supervision of glass-packaged injectables, standardizing compatibility research, promoting packaging system upgrades (e.g., low to neutral borosilicate conversion), improving associated review and supervision, and encouraging the development and production of new pharmaceutical packaging materials - The National Medical Products Administration issued a notice in 2012 to strengthen supervision and management of pharmaceutical glass-packaged injectable drugs[28] - The 2016 'Guidance for Pharmaceutical Industry Development Plan' proposed accelerating the transition of injectable packaging from low borosilicate glass vials to neutral borosilicate glass vials[28] - The 2019 'Catalogue for Guiding Industrial Structure Adjustment' encourages the development and production of new pharmaceutical packaging materials and technologies, specifically medium borosilicate pharmaceutical glass[28] - The 2025 edition of the 'Pharmacopoeia of the People's Republic of China' released multiple general requirements and testing methods for pharmaceutical packaging materials, further standardizing industry norms[30] Industry Market Development Overview China's pharmaceutical packaging materials industry has diversified products and improved regulatory standards, with a competitive landscape of numerous enterprises, but increasing regulation drives a trend towards standardization, scale, and concentration, with the company being a leading player alongside Gerresheimer and Schott - Pharmaceutical glass is a crucial packaging material, offering excellent transparency, barrier properties, and chemical stability, used in lyophilized vials, powder injection vials, liquid injection vials, oral liquid bottles, and infusion bottles[31] - China's medical packaging materials industry has made significant progress, but the competitive landscape remains fragmented, with future trends pointing towards standardization, scale, and concentration[33] - The company is a leading enterprise in China's pharmaceutical glass industry, with main competitors including Gerresheimer, Schott AG, Zhengchuan Pharmaceutical Packaging, Linuo Pharma Packaging, and Cangzhou Sixing[34][35][36] Company Business Overview The company primarily engages in R&D, production, and sales of pharmaceutical glass bottles, including molded, amber, ampoule, and tubular glass products, along with rubber and plastic products like butyl rubber stoppers, aluminum-plastic caps, and plastic bottles, forming a complete packaging system, serving pharmaceutical companies as intermediate products through a combination of direct sales and distribution in domestic and international markets - The company primarily engages in the research, development, production, and sales of various pharmaceutical glass bottle products, widely used in packaging for various drugs, health products, and cosmetics[36] - The company's product system covers glass products (molded bottles, tubular bottles, ampoules, amber bottles) and rubber-plastic products (butyl rubber stoppers, plastic bottles, aluminum-plastic composite caps)[38] - The company's products serve as intermediate goods, primarily for pharmaceutical enterprises, utilizing a combination of direct sales and distribution to develop the domestic market, and actively expanding into international markets through agents and foreign trade departments[41] Business Model The company primarily adopts a make-to-order production model, controlling raw material costs through diversified procurement strategies and a robust procurement management system, with sales mainly direct, supplemented by distribution and agency models, and no significant cyclicality or seasonality in procurement, production, or sales - The company primarily adopts a make-to-order production and operation model, where the sales department issues production plans to the production department based on sales forecasts or customer orders[43][44] - The company employs different procurement models for various types of materials, such as strategic procurement for bulk materials, long-term contracts for consistently demanded materials, and online/offline price comparison for complex materials[43] - The company's products are primarily sold through direct sales in the domestic market, with a distribution model in some regions, and an agent model in export markets[45] - The company exhibits no significant cyclicality or seasonality in its procurement, production, and sales activities[45] Discussion and Analysis of Operations In H1 2025, facing a complex market, the company steadfastly implemented its strategy of 'capturing market share, expanding sales, enhancing quality, securing markets, reducing costs, and promoting growth,' effectively addressing market challenges through adjusted sales strategies, deepened procurement management, lean production, and intelligent upgrades, while also making positive strides in project construction, R&D innovation, quality management, environmental and safety production, and employee welfare - The company's H1 2025 operational strategy focused on 'capturing market share, expanding sales, enhancing quality, securing markets, reducing costs, and promoting growth'[47] - Export business maintained growth, primarily due to increased international market share for molded bottles (injectables) and daily chemical/food bottles, alongside the development of overseas cosmetic and nutritional supplement packaging products[48] - The company continuously deepened procurement management innovation, establishing 'Fourteen Major Procurement Methodologies' to achieve significant optimization of procurement costs[50] - The company launched the third phase of its lean production initiative and completed the second phase, achieving breakthroughs in key metrics such as customer complaint rates, production changeover efficiency, and equipment downtime rates[51][52] - The company advanced automation and intelligent upgrades, implementing automatic boxing, packing, and palletizing projects for daily chemical bottles, and investing in the construction of an automated storage and retrieval system for high-end lightweight glass bottles[53][54] - The production capacity for Class I hydrolytic resistance pharmaceutical glass bottles largely met targets, and imported equipment for the pre-filled syringe expansion and renovation project was progressively debugged and accepted[54][55] - In R&D, the company promoted precious metal spare parts technology to enhance product lightweighting, achieved small-batch independent supply of key components for pre-filled syringes, and developed high-value-added products requiring no washing or sterilization[55] - The company obtained 4 authorized patents from the National Intellectual Property Administration (including 3 invention patents) and successfully secured approval for a provincial key laboratory in collaboration with Qilu University of Technology[56] - In quality management, the company led high-quality product development through standardization, participated in drafting relevant general rules for the 2025 edition of the Chinese Pharmacopoeia, and refined its quality management system to comply with the new 'Good Manufacturing Practice for Pharmaceutical Products'[57][58] - In environmental management, all kilns achieved ultra-low emission standards, electric melting furnaces and natural gas kilns were promoted for source reduction, and environmental investments were increased to advance batching facility upgrade projects[59][62] - In safety management, the company fully implemented the all-staff safety production responsibility system, promoted team standardization, and strengthened risk identification, control, and hazard investigation and remediation[63] - In employee care, the company organized holiday childcare classes for employees' children, continuously distributed benefits, and conducted cultural and sports activities to enhance employee happiness and sense of belonging[64] Core Competitiveness Analysis The company's core competitiveness lies in its brand and customer advantages, scale, quality, R&D, and management strengths, supported by long-term partnerships with major pharmaceutical companies, a complete product line and industrial chain, stringent quality control, a robust R&D system, and an experienced management team, all contributing to its leading position in the pharmaceutical glass industry - The company's products enjoy high recognition in the pharmaceutical glass packaging industry and among pharmaceutical enterprises, maintaining long-term collaborations with major domestic and international pharmaceutical companies such as Qilu Pharmaceutical, North China Pharmaceutical Group, and Pfizer[66] - The company is one of the largest pharmaceutical packaging manufacturers in China, offering a wide range of product categories and specifications, including glass bottles, butyl rubber stoppers, and aluminum-plastic composite caps, forming a complete product line and industrial chain[66] - The company has established strict standard operating procedures across all stages from raw material procurement to sales, introduced quality risk management concepts, and was the first to introduce world-class bottle manufacturing lines, with product indicators at an industry-leading level[67] - The company possesses a comprehensive R&D system, including a national-level enterprise technology center, provincial engineering technology research center, and industrial design center, and has established a postdoctoral research workstation, achieving outstanding results in new product development, quality improvement, and automation upgrades[68][69] - The company boasts an experienced, collaborative, and professionally dedicated management team with a deep understanding of the industry, capable of actively planning for future development[69] Key Operating Performance In this reporting period, the company experienced year-on-year decreases in financial expenses, net cash flow from operating activities, fair value change gains, and non-operating income, while management expenses, R&D expenses, investment income, asset impairment losses, and asset disposal gains increased; in terms of asset-liability structure, receivables financing, prepayments, other current assets, other non-current assets, taxes payable, and other current liabilities decreased, while employee compensation payable increased H1 2025 Financial Statement Item Changes | Item | Current Period Amount (CNY) | Prior Year Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,373,844,830.37 | 2,585,950,518.30 | -8.20 | | Total Profit | 441,547,642.49 | 582,122,742.49 | -24.15 | | Financial Expenses | -15,167,241.04 | -23,804,732.95 | 36.28 | | Net Cash Flow from Operating Activities | 299,440,746.65 | 588,964,181.94 | -49.16 | | Investment Income | 7,227,203.39 | 5,281,521.52 | 36.84 | | Gains from Fair Value Changes | 6,447,381.91 | 14,217,607.70 | -54.65 | | Asset Impairment Losses | -48,839,146.75 | -30,162,527.45 | -61.92 | | Non-Operating Income | 1,103,350.42 | 2,171,066.29 | -49.18 | H1 2025 Asset and Liability Changes | Item Name | Current Period-end Amount (CNY) | Prior Year-end Amount (CNY) | Change from Prior Year-end (%) | | :--- | :--- | :--- | :--- | | Receivables Financing | 30,282,411.90 | 47,485,298.80 | -36.23 | | Prepayments | 108,461,917.35 | 159,356,027.51 | -31.94 | | Other Current Assets | 3,116,395.91 | 18,635,867.83 | -83.28 | | Other Non-Current Assets | 28,669,540.77 | 51,734,330.06 | -44.58 | | Employee Compensation Payable | 97,881,719.90 | 70,457,876.82 | 38.92 | | Taxes Payable | 28,733,257.71 | 50,895,600.50 | -43.54 | | Other Current Liabilities | 41,030,139.54 | 74,434,497.32 | -44.88 | Main Business Analysis This period's increase in financial expenses was mainly due to reduced interest income and exchange gains; the decrease in net cash flow from operating activities was primarily due to increased cash payments for goods and services; the rise in investment income stemmed from higher matured structured bank deposit returns; the decline in fair value change gains was attributed to reduced fair value gains on financial assets held for trading; the increase in asset impairment losses was mainly due to higher inventory depreciation provisions; the increase in asset disposal gains resulted from higher fixed asset disposal gains; and the decrease in non-operating income was primarily due to reduced supplier product quality breach payments - Financial expenses increased by 36.28% in this reporting period compared to the prior year period, primarily due to reduced interest income and exchange gains[71] - Net cash flow from operating activities decreased by 49.16% in this reporting period compared to the prior year period, primarily due to increased cash payments for goods purchased and services received[71] - Investment income increased by 36.84% in this reporting period compared to the prior year period, primarily due to increased matured structured bank deposit returns recognized under investment income[71] - Asset impairment losses increased by 61.92% in this reporting period compared to the prior year period, primarily due to increased provisions for inventory depreciation[71] Asset and Liability Analysis Period-end receivables financing, prepayments, other current assets, other non-current assets, taxes payable, and other current liabilities all decreased, mainly due to reduced bank acceptance bill settlements, lower prepaid electricity and goods, decreased deductible input VAT, reduced prepaid engineering equipment, lower corporate income tax payable, and fewer endorsed but unrecognized notes receivable; the increase in employee compensation payable was primarily due to unpaid incentive funds - Receivables financing at the end of this period decreased by 36.23% compared to the prior year-end, primarily due to a reduction in receivables settled by bank acceptance bills at the end of this reporting period[73] - Prepayments at the end of this period decreased by 31.94% compared to the prior year-end, primarily due to reduced prepaid electricity and goods[73] - Employee compensation payable at the end of this period increased by 38.92% compared to the prior year-end, primarily due to unpaid incentive funds accrued in this reporting period[73] - Other current liabilities at the end of this period decreased by 44.88% compared to the prior year-end, primarily due to a reduction in endorsed but unrecognized notes receivable at the end of this reporting period[73] Investment Status Analysis The company's period-end financial assets measured at fair value totaled CNY 1.723 billion, primarily structured deposit products, with fair value change gains of CNY 6.4474 million this period Financial Assets Measured at Fair Value | Asset Category | Period-beginning Amount (CNY) | Fair Value Change Gains/Losses This Period (CNY) | Purchases This Period (CNY) | Sales/Redemptions This Period (CNY) | Period-end Amount (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Structured Deposit Products) | 1,724,690,168.22 | 6,447,381.91 | 4,340,000,000.00 | 4,370,000,000.00 | 1,692,342,071.23 | | Other (Receivables Financing) | 47,485,298.80 | | | | 30,282,411.90 | | Other (Other Equity Instrument Investments) | 50,000.00 | | | | 50,000.00 | | Total | 1,772,225,467.02 | 6,447,381.91 | 4,340,000,000.00 | 4,370,000,000.00 | 1,722,674,483.13 | Potential Risks The company faces policy risks (medical reform, centralized procurement leading to lower drug prices), domestic market risks (intensified homogeneous competition in daily chemical and amber bottles, competition in medium borosilicate molded bottles), and international market risks (US tariff policy uncertainty affecting export and import costs), which it addresses by enhancing capacity, controlling costs, improving quality, expanding markets, and seeking alternative solutions - Policy risks: Deepening medical reform policies, intensified market competition, medical insurance payment standards, and centralized procurement price negotiations lead to lower pharmaceutical product prices, impacting the company's revenue and profit[80] - Domestic market risks: Intensified homogeneous competition for daily chemical and amber bottle products; entry of peers into the medium borosilicate molded bottle sector creating competition[80] - International market risks: Uncertainty in US tariff policy impacts export business to the US; increased import costs for borax pentahydrate affect profit[80][81] - Mitigation measures include: tapping into production capacity potential, controlling expenses, improving quality, expanding domestic and international markets, and seeking alternative solutions[80][81] Quality Improvement, Efficiency Enhancement, and Shareholder Returns Special Action The company actively responded to the 'Quality Improvement, Efficiency Enhancement, and Shareholder Returns' initiative, focusing on core business to improve operational quality, consistently returning cash dividends to investors, upholding technological innovation to enhance service capabilities, strengthening investor communication, and optimizing corporate governance for standardized operations; total cash dividends for 2024 reached CNY 411 million, representing 43.63% of net profit, with plans for continued interim dividends in 2025 - The company focuses on its core business, adhering to the strategy of 'capturing market share, expanding sales, enhancing quality, securing markets, reducing costs, and promoting growth' to improve operational quality and profitability[82] - The company adheres to a scientific, continuous, and stable dividend policy, with total cash dividends for 2024 reaching CNY 411 million (including interim distribution), accounting for 43.63% of net profit attributable to shareholders of the listed company[83] - The company plans to continue distributing a cash dividend of CNY 186 million for H1 2025[83] - The company adheres to technological innovation, adding 3 national authorized invention patents, accumulating 291 national authorized patents, including 40 invention patents[84] - The company strengthens investor communication through various channels, including investor hotlines, email, the SSE e-interaction platform, and on-site surveys[85] - The company optimizes corporate governance, strengthens performance management for 'key minorities,' and submitted a proposal to abolish the Supervisory Board to further enhance governance capabilities[85][86] Section IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, the company completed the re-election of its Board of Directors and Supervisory Board, with Mr Hu Yonggang elected as Chairman, Mr Zhang Jun appointed as General Manager, and Mr Chen Maobin elected as Chairman of the Supervisory Board, while some former directors, supervisors, and senior management members retired upon term expiration - On May 15, 2025, Mr Chen Maobin was elected as the employee representative supervisor for the company's Eleventh Supervisory Board[88] - On May 16, 2025, the general meeting of shareholders elected Hu Yonggang, Zhang Jun, Chen Gang, Wang Xingjun, Zhang Taigang, and Feng Jiayou as non-independent directors; Sun Zongbin, Gu Weijun, and Chen Maoxin as independent directors; and Jiao Shouhua and Shen Yonggang as supervisors[89] - Mr Hu Yonggang was elected as the company's Chairman, Mr Zhang Jun was appointed as General Manager, Mr Chen Gang as Executive Deputy General Manager, Mr Zhao Haibao as Board Secretary, and Mr Song Yizhao as Chief Financial Officer[90] - Mr Zhu Yuhua, Mr Wei Qiwen (external director), and Mr Wang Fali (Chairman of the Supervisory Board) retired upon term expiration[88][89] Semi-Annual Profit Distribution Plan The Board of Directors approved the H1 2025 profit distribution plan, proposing a cash dividend of CNY 2.80 (tax inclusive) per 10 shares to all shareholders, based on a total share capital of 663,614,113 shares, amounting to CNY 185,811,951.64 H1 2025 Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Distribution or Capitalization | Yes | | Dividend per 10 Shares (tax inclusive) | CNY 2.80 | | Total Proposed Cash Dividend | CNY 185,811,951.64 | Environmental Information Disclosure Status The company and its four main subsidiaries are included in the list of enterprises required to disclose environmental information by law, with corresponding inquiry indexes provided - The company has 4 enterprises included in the list of enterprises required to disclose environmental information by law[93] - These include Shandong Pharmaceutical Glass Co, Ltd Tumeng Branch, Industrial Park Branch, Baotou Kangrui Pharmaceutical Glass Packaging Products Co, Ltd, and Sichuan Mianzhu Chengxin Pharmaceutical Glass Co, Ltd[93] Rural Revitalization Efforts The company actively fulfills its social responsibilities, supporting rural revitalization through the 'Double Hundred Assistance' initiative, with assisted villages generating over CNY 900,000 in income in H1 2025 - The company continuously promotes the 'Double Hundred Assistance' initiative, driving collective village income growth through industrial development in assisted villages[94] - In H1 2025, assisted villages generated over CNY 900,000 in income[94] Section V Significant Matters Fulfillment of Commitments During the reporting period, no unfulfilled or ongoing commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself were identified - During the reporting period, no unfulfilled or ongoing commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself were identified[96] Explanation of Progress in Use of Raised Funds The company's total raised funds were CNY 1.866 billion, with a net amount of CNY 1.842 billion, and cumulative investment reached CNY 1.084 billion by period-end, representing 58.84% progress; key projects, including the 'Shandong Pharmaceutical Glass Co, Ltd Class I Hydrolytic Resistance Pharmaceutical Glass Bottle Project' and 'Annual Production of 560 Million Pre-filled Syringes Expansion and Renovation Project,' are on schedule, and the company also managed idle raised funds, with a period-end balance of CNY 750 million Overall Use of Raised Funds | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Raised Funds | 186,649.47 | | Net Raised Funds | 184,232.03 | | Cumulative Raised Funds Invested by Period-end | 108,406.73 | | Cumulative Investment Progress of Raised Funds by Period-end (%) | 58.84 | | Amount Invested This Year | 9,632.35 | Detailed Use of Raised Investment Projects | Project Name | Planned Total Investment of Raised Funds (CNY 10,000) | Cumulative Raised Funds Invested by Period-end (CNY 10,000) | Cumulative Investment Progress by Period-end (%) | | :--- | :--- | :--- | :--- | | Shandong Pharmaceutical Glass Co, Ltd Class I Hydrolytic Resistance Pharmaceutical Glass Bottle Project | 118,002.96 | 43,158.34 | 36.57 | | Annual Production of 560 Million Pre-filled Syringes Expansion and Renovation Project | 66,229.07 | 65,248.39 | 98.52 | - The company used temporarily idle raised funds, up to a maximum of CNY 800 million, to purchase wealth management products, with a period-end cash management balance of CNY 750 million[105] Section VI Share Changes and Shareholder Information Share Capital Changes During the reporting period, there were no changes in the company's total share capital or shareholding structure - During the reporting period, there were no changes in the company's total share capital or shareholding structure[107] Shareholder Information As of the period-end, the company had 77,076 common shareholders; among the top ten, Shandong Luzhong Investment Co, Ltd was the largest shareholder with a 19.50% stake, with some shares pledged, and other major shareholders included Huabao CSI Medical ETF and National Social Security Fund 109 Portfolio - As of the period-end, the total number of common shareholders was 77,076[109] Top Ten Shareholders' Shareholding Status | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Pledged, Marked, or Frozen Status (number) | | :--- | :--- | :--- | :--- | | Shandong Luzhong Investment Co, Ltd | 129,380,980 | 19.50 | Pledged: 63,880,000 | | Bank of China Ltd - Huabao CSI Medical Exchange Traded Fund | 22,035,836 | 3.32 | Unknown | | National Social Security Fund 109 Portfolio | 14,991,496 | 2.26 | Unknown | | Agricultural Bank of China Ltd - CSI 500 Exchange Traded Fund | 9,855,214 | 1.49 | Unknown | | CITIC Securities Co, Ltd | 7,233,263 | 1.09 | Unknown | | Hong Kong Securities Clearing Company Ltd | 6,916,711 | 1.04 | Unknown | | China Life Insurance Co, Ltd - Traditional - Ordinary Insurance Product - 005L - CT001 Shanghai | 6,276,879 | 0.95 | Unknown | | Fullgoal Fund Management Co, Ltd - Social Security Fund 17022 Portfolio | 6,241,576 | 0.94 | Unknown | | New China Life Insurance Co, Ltd - Traditional - Ordinary Insurance Product - 018L - CT001 Shanghai | 5,110,167 | 0.77 | Unknown | | Qi Ying | 4,652,771 | 0.70 | Unknown | Section VII Bond-Related Information Corporate Bonds and Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds Section VIII Financial Report Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5] Financial Statements This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting its financial position, operating results, and cash flow Consolidated Balance Sheet As of June 30, 2025, the company's total assets were CNY 9.975 billion, a slight decrease from the beginning of the period; current assets were CNY 5.907 billion, non-current assets CNY 4.069 billion; total liabilities were CNY 1.811 billion, and total owners' equity was CNY 8.165 billion, an increase from the beginning of the period Consolidated Balance Sheet Summary (June 30, 2025) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Current Assets | 5,906,627,859.56 | 5,980,458,741.73 | | Total Non-Current Assets | 4,068,834,718.96 | 4,159,550,624.11 | | Total Assets | 9,975,462,578.52 | 10,140,009,365.84 | | Total Current Liabilities | 1,680,931,466.04 | 2,000,567,167.16 | | Total Non-Current Liabilities | 129,989,449.00 | 131,672,508.13 | | Total Liabilities | 1,810,920,915.04 | 2,132,239,675.29 | | Total Owners' Equity Attributable to Parent Company | 8,164,541,663.48 | 8,007,769,690.55 | | Total Owners' Equity | 8,164,541,663.48 | 8,007,769,690.55 | Consolidated Income Statement In H1 2025, the company achieved total operating revenue of CNY 2.374 billion, a year-on-year decrease of 8.20%; net profit was CNY 371 million, down 21.89% year-on-year; total operating costs were CNY 1.902 billion, with operating costs at CNY 1.623 billion; basic earnings per share were CNY 0.5593/share Consolidated Income Statement Summary (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 2,373,844,830.37 | 2,585,950,518.30 | | Total Operating Costs | 1,901,614,186.90 | 1,999,640,334.24 | | Total Profit | 441,547,642.49 | 582,122,742.49 | | Net Profit | 371,141,622.00 | 475,166,643.60 | | Net Profit Attributable to Parent Company Shareholders | 371,141,622.00 | 475,166,643.60 | | Basic Earnings Per Share (CNY/share) | 0.5593 | 0.7160 | Consolidated Cash Flow Statement In H1 2025, the company's net cash flow from operating activities was CNY 299 million, a significant year-on-year decrease of 49.16%; net cash flow from investing activities was -CNY 186 million, a reduced outflow compared to the prior year period; and net cash flow from financing activities was -CNY 181 million Consolidated Cash Flow Statement Summary (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 299,440,746.65 | 588,964,181.94 | | Net Cash Flow from Investing Activities | -186,152,474.42 | -732,499,837.09 | | Net Cash Flow from Financing Activities | -180,554,602.56 | | | Net Increase in Cash and Cash Equivalents | -59,432,716.29 | -132,483,341.51 | | Period-end Cash and Cash Equivalents Balance | 825,748,645.42 | 1,154,417,386.17 | Company Basic Information The company, formerly Shandong Pharmaceutical Glass General Factory, was restructured in 1997 and listed on the Shanghai Stock Exchange in 2002; with a current total share capital of 663,614,113 shares, it operates in the manufacturing-glass packaging container industry, primarily producing pharmaceutical glass bottles, rubber stoppers, and caps, with Shandong Luzhong Investment Co, Ltd as its parent company and Yiyuan County Finance Bureau as the ultimate controlling party - The company's predecessor was Shandong Pharmaceutical Glass General Factory, established in 1970, restructured in 1997, and listed on the Shanghai Stock Exchange on May 17, 2002[156] - The company's current registered capital and total share capital are both CNY 663,614,113.00[155][157] - The company belongs to the manufacturing-glass packaging container industry, primarily engaged in the production of pharmaceutical glass bottles, rubber stoppers, and caps[158] - The company's parent company is Shandong Luzhong Investment Co, Ltd, with the Yiyuan County Finance Bureau as the ultimate controlling party[158] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, possessing the ability to continue operations for at least 12 months, with no significant matters affecting this ability - The company's financial statements are prepared on a going concern basis[159] - The company possesses the ability to continue operations for at least 12 months from the end of this reporting period, with no significant matters affecting this ability[160] Significant Accounting Policies and Estimates This section details the company's statement of compliance with accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, various receivables, inventories, contract assets, assets held for sale, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, contract liabilities, employee benefits, provisions, revenue, government grants, deferred tax assets/liabilities, leases, and other significant accounting policies and estimates - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[163] - The company defines its operating cycle as 12 months, using it as the criterion for classifying assets and liabilities as current or non-current[165] - The company classifies financial assets based on its business model for managing them and their contractual cash flow characteristics into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[182] - The company recognizes revenue when control of goods is transferred to the customer, using this transfer of control as the criterion for revenue recognition[265][266] - For investment properties, fixed assets, and intangible assets measured using the cost model, the company depreciates and amortizes them using the straight-line method over their useful lives, after considering their residual value[288] Taxation The company's main taxes include VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax; the company and its subsidiaries enjoy a 15% corporate income tax preferential rate as high-tech enterprises, while some subsidiaries meeting small and micro-profit enterprise standards benefit from a 20% corporate income tax rate and partial tax reductions Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 1%、5%、6%、9%、13% | | Urban Maintenance and Construction Tax | 1%、5%、7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15%、20%、25% | - The company and its subsidiary, Baotou Kangrui Pharmaceutical Glass Packaging Products Co, Ltd, are recognized as high-tech enterprises, enjoying a 15% preferential corporate income tax rate[292] - Yiyuan Bilufeng Spring Water Co, Ltd, Shandong Kangzheng Inspection and Testing Co, Ltd, and Yiyuan Shengyuan Hotel Co, Ltd meet the criteria for small and micro-profit enterprises, calculating taxable income at 25% and paying corporate income tax at a 20% rate, with partial tax reductions[292][293] - As a high-tech enterprise, the company pays urban land use tax at 50% of the current tax rate standard[293] Notes to Consolidated Financial Statement Items This section provides detailed disclosures for each item in the consolidated financial statements, including monetary funds, various receivables, inventories, fixed assets, construction in progress, intangible assets, deferred income tax, various payables, owners' equity items, as well as operating revenue, costs, expenses, and various gains and losses, with explanations for significant changes Period-end Monetary Funds Balance | Item | Period-end Balance (CNY) | | :--- | :--- | | Cash on Hand | 2,717.39 | | Bank Deposits | 825,745,928.03 | | Other Monetary Funds | 129,147,924.64 | | Total | 954,896,570.06 | Period-end Balance of Financial Assets Held for Trading | Item | Period-end Balance (CNY) | | :--- | :--- | | Structured Deposit Products | 1,692,342,071.23 | Period-end Book Value of Accounts Receivable | Item | Period-end Book Value (CNY) | | :--- | :--- | | Accounts Receivable | 974,539,633.86 | Period-end Book Value of Inventories | Item | Period-end Book Value (CNY) | | :--- | :--- | | Raw Materials | 160,208,869.19 | | Work in Progress | 40,566,931.46 | | Inventories | 1,340,695,042.46 | | Total | 1,541,470,843.11 | Period-end Book Value of Fixed Assets | Item | Period-end Book Value (CNY) | | :--- | :--- | | Buildings and Structures | 1,546,663,728.87 | | General Equipment | 697,004,251.15 | | Specialized Equipment | 1,223,722,323.14 | | Transportation Vehicles | 8,282,085.15 | | Total | 3,475,672,388.31 | Operating Revenue and Operating Costs (Jan-Jun 2025) | Item | Revenue (CNY) | Cost (CNY) | | :--- | :--- | :--- | | Main Business | 2,338,321,232.91 | 1,610,149,898.89 | | Other Businesses | 35,523,597.46 | 12,754,384.44 | | Total | 2,373,844,830.37 | 1,622,904,283.33 | Research and Development Expenses (Jan-Jun 2025) | Item | Amount Incurred This Period (CNY) | | :--- | :--- | | Employee Compensation | 52,779,638.75 | | Materials and Electricity Costs | 30,386,016.41 | | Depreciation Expense | 12,456,471.63 | | Other | 52,500.00 | | Total | 95,674,626.79 | Research and Development Expenditures The company's total R&D expenses for H1 2025 amounted to CNY 95.6746 million, primarily comprising employee compensation, materials and electricity costs, and depreciation expenses R&D Expense Composition (Jan-Jun 2025) | Item | Amount Incurred This Period (CNY) | | :--- | :--- | | Employee Compensation | 52,779,638.75 | | Materials and Electricity Costs | 30,386,016.41 | | Depreciation Expense | 12,456,471.63 | | Other | 52,500.00 | | Total | 95,674,626.79 | Changes in Consolidation Scope In March 2025, Baotou Fenghui Packaging Products Co, Ltd, a subsidiary of the company, established Fenghui Packaging Products (Shandong) Co, Ltd, with a registered capital of CNY 50 million, primarily engaged in the production and sales of packaging materials and products, leading to an expansion of the consolidation scope - In March 2025, Baotou Fenghui Packaging Products Co, Ltd, a subsidiary of the company, registered and established Fenghui Packaging Products (Shandong) Co, Ltd[449] - The newly established subsidiary has a registered capital of CNY 50 million and primarily engages in the production and sales of packaging materials and products[449] Interests in Other Entities The company owns 10 subsidiaries, including Baotou Kangrui Pharmaceutical Glass Packaging Products Co, Ltd and Sichuan Mianzhu Chengxin Pharmaceutical Glass Co, Ltd, with business natures spanning manufacturing, commerce, transportation, and services, all with 100% shareholding Subsidiary Information | Subsidiary Name | Registered Capital (CNY 10,000) | Business Nature | Shareholding (%) | | :--- | :--- | :--- | :--- | | Baotou Kangrui Pharmaceutical Glass Packaging Products Co, Ltd | 14,000.00 | Manufacturing | 100.00 | | Yiyuan Xinkang Trading Co, Ltd | 5,000.00 | Commerce | 100.00 | | Sichuan Mianzhu Chengxin Pharmaceutical Glass Co, Ltd | 20,000.00 | Manufacturing | 100.00 | | Yiyuan Bilufeng Spring Water Co, Ltd | 60.00 | Manufacturing | 100.00 | | Baotou Fenghui Packaging Products Co, Ltd | 8,500.00 | Manufacturing | 100.00 | | Fenghui Packaging Products (Shandong) Co, Ltd | 5,000.00 | Manufacturing | Indirect 100.00 | | Yiyuan Xinao Plastic Products Co, Ltd | 2,500.00 | Manufacturing | 100.00 | | Yiyuan Xinyuan Logistics Co, Ltd | 360.00 | Transportation | 100.00 | | Yiyuan Shengyuan Hotel Co, Ltd | 500.00 | Services | Indirect 100.00 | | Shandong Kangzheng Inspection and Testing Co, Ltd | 800.00 | Services | 100.00 | Government Grants The company's period-end deferred income from government grants totaled CNY 130 million, with CNY 4.36 million in new grants this period, and CNY 6.0431 million transferred to other income; total government grants recognized in current period profit or loss amounted to CNY 7.3312 million, primarily comprising asset-related and income-related grants Government Grants as Liability Items (Deferred Income) | Financial Statement Item | Period-beginning Balance (CNY) | New Grants This Period (CNY) | Transferred to Other Income This Period (CNY) | Period-end Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 131,672,508.13 | 4,360,000.00 | 6,043,059.13 | 129,989,449.00 | Asset-related | Government Grants Recognized in Current Period Profit or Loss (Jan-Jun 2025) | Type | Amount Incurred This Period (CNY) | | :--- | :--- | | Asset-related | 6,043,059.13 | | Income-related | 1,288,180.00 | | Total | 7,331,239.13 | Risks Related to Financial Instruments The company faces credit risk, market risk (including exchange rate risk, interest rate risk, and other price risks), and liquidity risk, managed by assessing debtor creditworthiness, monitoring foreign currency transactions and asset-liability scale, and tracking cash balances and cash flow forecasts; as of period-end, the company had no bank borrowings, thus no interest rate risk, and monitors its capital structure using the asset-liability ratio - The company's main financial instrument risks include credit risk, market risk (foreign exchange risk, interest rate risk, and other price risks), and liquidity risk[458] - Exchange rate risk primarily arises from financial assets and liabilities denominated in USD and EUR; a 5% appreciation or depreciation of RMB against USD or EUR would impact net profit by approximately ±CNY 12.9285 million[459] - As of June 30, 2025, the company had no bank borrowings at period-end, thus no interest rate risk[461] - The company controls credit risk by assessing debtors' financial condition, credit history, and other factors, and regularly monitors credit records[462] - Liquidity risk is managed by monitoring cash balances, readily marketable securities, and rolling forecasts of cash flows for the next 12 months[465] - The company monitors its capital structure using the asset-liability ratio (total liabilities divided by total assets), which was 18.15% at period-end (21.03% as of December 31, 2024)[468] Fair Value Disclosure The company's assets measured at fair value primarily include financial assets held for trading, other equity instrument investments, and receivables financing; fair value of financial assets held for trading is determined by the principal and expected returns of structured bank deposit products, receivables financing is measured at face value due to short maturity, and other equity instrument investments are measured at period-beginning book value as operating conditions have not significantly changed Period-end Fair Value of Assets Measured at Fair Value | Item | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 1,692,342,071.23 | | 1,692,342,071.23 | | Other Equity Instrument Investments | | 50,000.00 | 50,000.00 | | Receivables Financing | | 30,282,411.90 | 30,282,411.90 | | Total Assets Continuously Measured at Fair Value | 1,692,342,071.23 | 30,332,411.90 | 1,722,674,483.13 | - The fair value of financial assets held for trading is determined based on the principal and expected returns of structured bank deposit products as of the balance sheet date[472] - Receivables financing, consisting of bank acceptance bills with short remaining maturities, has a fair value equal to its face amount[473] - Other equity instrument investments are valued at their period-beginning book value, as there have been no significant changes in the operating environment, operating conditions, or financial position of the investees[473] Related Parties and Related Party Transactions The company's parent company is Shandong Luzhong Investment Co, Ltd, with the Yiyuan County Finance Bureau as the ultimate controlling party; during the reporting period, key management personnel compensation was CNY 10.2765 million, an increase from the prior period, with no other significant related party transactions disclosed - The company's parent company is Shandong Luzhong Investment Co, Ltd, with the Yiyuan County Finance Bureau as the ultimate controlling party[476] Key Management Personnel Compensation | Item | Amount Incurred This Period (CNY 10,000) | Amount Incurred Prior Period (CNY 10,000) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 1,027.65 | 696.83 | Events After the Balance Sheet Date The Board of Directors has approved the H1 2025 profit distribution plan, proposing a cash dividend of CNY 185,811,951.64 - The company's Eleventh Board of Directors' Second Meeting approved the H1 2025 profit distribution plan, proposing a cash dividend of CNY 185,811,951.64[484] Other Significant Matters The company determines its reporting segments based on operating segments, primarily including packaging products, trade, bottled water, logistics, and services, with packaging products contributing the vast majority of revenue and assets - The company determines its operating segments based on internal organizational structure, management requirements, and internal reporting systems, and establishes reporting segments based on these operating segments[485][486] Reporting Segment Financial Information (Jan-Jun 2025) | Item | Packaging Products (CNY) | Trade (CNY) | Bottled Water (CNY) | Logistics (CNY) | Services (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Main Business Revenue | 2,097,582,811.14 | 326,798,399.38 | 457,754.22 | 45,631,159.46 | 5,422,353.30 | 2,338,321,232.91 | | Main Business Cost | 1,380,757,891.31 | 315,303,506.96 | 228,157.13 | 41,696,727.90 | 6,381,446.33 | 1,610,149,898.89 | | Total Assets | 9,794,344,802.70 | 147,099,192.19 | 3,042,190.71 | 71,863,556.98 | 12,496,943.49 | 9,975,462,578.52 | | Total Liabilities | 1,770,132,169.52 | 52,452,312.95 | 166,873.20 | 10,215,291.61 | 8,057,809.31 | 1,810,920,915.04 | Notes to Parent Company Financial Statement Items This section provides detailed notes to the parent company's main financial statement items, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income; the parent company's period-end accounts receivable book value was CNY 808 million, long-term equity investments CNY 491 million, H1 2025 operating revenue **CNY 1.97 billio