聚胶股份(301283) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, while also alerting investors to various market and operational risks - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false statements, misleading representations, or material omissions, and assume individual and joint legal responsibility[3] - Company head Chen Shuguang, chief accountant Shi Encheng, and head of accounting department (accounting supervisor) Shi Encheng declare that the financial report in this semi-annual report is true, accurate, and complete[3] - Investors should be aware of risks such as intensified market competition, slowing growth, raw material price fluctuations, international trade, overseas operations, exchange rate changes, projects failing to generate expected returns, increased accounts receivable, and loss of technical personnel and technical secrets[3] Profit Distribution Plan The board of directors approved a semi-annual profit distribution plan to pay a cash dividend of 2.00 Yuan (tax inclusive) per 10 shares to all shareholders 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Cash dividend per 10 shares (tax inclusive) | 2.00 Yuan | | Bonus shares | 0 shares | | Capital reserve converted to share capital | 0 shares | | Share capital base | 79,566,522 shares | Table of Contents This section outlines the report's structure, covering company profile, management discussion, corporate governance, significant matters, share changes, bond information, and financial statements - The report's table of contents includes eight main sections, covering various aspects of the company's operations, financials, governance, and significant matters[7] Definitions This section defines key terms used in the report, including company names, subsidiaries, major clients, and relevant regulations, to ensure clear understanding - The report defines "Company" and "Focus Hotmelt" as Focus Hotmelt New Materials Co., Ltd[11] - Key subsidiaries include Focus Hotmelt Europe, Focus Hotmelt Turkey, Focus Hotmelt Mexico, Focus Hotmelt Singapore, Focus Hotmelt Malaysia, and Focus Hotmelt USA[11] - Major clients include Kimberly-Clark, Procter & Gamble, Hengan, Drylock, Essity, Vinda, and Daio Paper Corporation[11] Section II Company Profile and Key Financial Indicators I. Company Profile Focus Hotmelt New Materials Co., Ltd., stock code 301283, is listed on the Shenzhen Stock Exchange with Chen Shuguang as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Focus Hotmelt | | Stock Code | 301283 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 聚胶新材料股份有限公司 | | Legal Representative | Chen Shuguang | II. Contact Persons and Information The company's board secretary is Liao Yantao and securities affairs representative is Shan Yongshi, both reachable at 020-82469190 at Guangzhou address Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | Liao Yantao | 020-82469190 | secretaryoftheboard@focushotmelt.com | | Securities Affairs Representative | Shan Yongshi | 020-82469190 | secretaryoftheboard@focushotmelt.com | III. Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure, or registration status - The company's registered address, office address, website, and email remained unchanged during the reporting period[17] - Information disclosure and storage locations remained unchanged during the reporting period[18] - The company's registration status remained unchanged during the reporting period[19] IV. Key Accounting Data and Financial Indicators The company's 2025 semi-annual operating revenue increased by 5.47%, net profit attributable to shareholders grew by 41.38%, and net cash flow from operating activities surged by 911.97% Key Accounting Data and Financial Indicators (Year-over-Year) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 993,235,295.46 | 941,706,256.62 | 5.47% | | Net Profit Attributable to Shareholders of the Listed Company | 81,124,153.54 | 57,382,046.78 | 41.38% | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-Recurring Gains and Losses | 73,285,549.45 | 53,411,368.39 | 37.21% | | Net Cash Flow from Operating Activities | 518,288,617.64 | -63,830,926.69 | 911.97% | | Basic Earnings Per Share (Yuan/share) | 1.0241 | 0.7223 | 41.78% | | Diluted Earnings Per Share (Yuan/share) | 1.0198 | 0.7206 | 41.52% | | Weighted Average Return on Net Assets | 5.21% | 3.68% | 1.53% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | Current Period-End (Yuan) | Prior Year-End (Yuan) | Period-End Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 2,276,614,886.78 | 1,928,268,495.97 | 18.07% | | Net Assets Attributable to Shareholders of the Listed Company | 1,592,527,024.14 | 1,498,818,924.72 | 6.25% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[21] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[22] VI. Non-Recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the period amounted to 7,838,604.09 Yuan, primarily from non-current asset disposal, government grants, and foreign exchange gains Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains/losses from disposal of non-current assets | -622,667.51 | | | Government grants included in current profit/loss | 104,136.00 | | | Gains/losses from changes in fair value | 507,121.36 | | | Gains/losses from entrusted investments or asset management | 1,593,647.70 | | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 716,771.42 | | | Other non-operating income and expenses | -36,170.70 | | | Other gains/losses meeting the definition of non-recurring gains/losses | 6,354,695.09 | Primarily foreign exchange gains from subsidiary repayments | | Less: Income tax impact | 778,929.26 | | | Minority interest impact (after tax) | 0.01 | | | Total | 7,838,604.09 | | Section III Management Discussion and Analysis I. Main Business Activities During the Reporting Period The company specializes in R&D, production, and sales of hot melt adhesives for absorbent hygiene products, achieving significant revenue and net profit growth through market expansion and efficiency improvements - The company primarily engages in the research, development, production, and sales of hot melt adhesives specifically for absorbent hygiene products, belonging to the polymer materials sub-industry within chemical raw materials and chemical products manufacturing[27] - Industry development trends include product functionalization, personalization, and specialized applications; green, low-carbon, safe, and environmentally friendly sustainable development; growth in demand for mid-to-high-end markets; continuous expansion of the global market; and diversified development in medical and pet hygiene products[29][30][31][32][33][34] - The company has become one of the few domestic manufacturers to enter the procurement systems of leading international and domestic hygiene product enterprises, ranking among the top four major hot melt adhesive providers in the industry, achieving significant positions in both domestic and international markets[35] - During the reporting period, the company achieved operating revenue of 993.24 million Yuan, a year-over-year increase of 5.47%, and net profit attributable to shareholders of 81.12 million Yuan, a year-over-year increase of 41.38%, primarily due to decreased raw material and international shipping costs, and increased sales from domestic and international market expansion[41] (I) Industry Development Overview The hygiene hot melt adhesive industry is evolving towards functionalization, green solutions, high-end products, global market expansion, and diversified applications to meet consumer and sustainability demands - Development trends for hygiene hot melt adhesive products include the emergence of specialized adhesives such as soft-feel adhesives, wetness indicator adhesives, biodegradable hot melt adhesives, low-VOC hot melt adhesives, core adhesives, hydrophilic hot melt adhesives, odor-neutralizing adhesives, colored adhesives, antibacterial adhesives, and mosquito repellent adhesives, to meet diverse needs[29] - The industry faces sustainable development challenges, with biodegradable and bio-based hot melt adhesives being important research directions, as safety and environmental regulations in the EU and other countries become increasingly stringent[30] - The expansion of the mid-to-high-end hygiene product market drives the development of hot melt adhesives towards mid-to-high-end products, while the low-end hot melt adhesive market gradually shrinks[32] - Factors such as global population growth, increased hygiene awareness, an aging population, and low penetration rates in emerging markets continue to drive the expansion of the global hygiene hot melt adhesive market[33] - The application scope of hygiene hot melt adhesives is diversifying from infant, feminine, and adult incontinence products to medical and pet hygiene products, expanding market capacity[34] (II) Company's Industry Position Leveraging technology, service, and cost advantages, the company has become a leading domestic hot melt adhesive producer and a key global supplier, successfully penetrating major hygiene product manufacturers' supply chains - The company has entered the procurement systems of mainstream disposable hygiene product brands such as Kimberly-Clark, Drylock, Hengan, Daio Paper Corporation, Essity, Vinda, and Procter & Gamble[35] - The company is one of the four major hot melt adhesive providers in the industry, achieving import substitution in the domestic market and breaking the monopoly of foreign giants in the international market[35] (III) Main Business, Products, and Applications The company's core business involves R&D, production, and sales of eco-friendly hot melt adhesives for hygiene products, recognized as a 'Specialized, Refined, Unique, and New' enterprise with products sold globally - The company specializes in the research, development, production, and sales of hot melt adhesives for hygiene products, which are used for bonding absorbent hygiene products such as sanitary napkins and diapers, characterized by being non-toxic, odorless, and solvent-free[36] - The company was recognized as a "Specialized, Refined, Unique, and New Small and Medium-sized Enterprise" by the Guangdong Provincial Department of Industry and Information Technology in 2023 and by the Ministry of Industry and Information Technology in 2024[36] - The company's products are widely used in infant diapers, feminine sanitary napkins, adult incontinence products, pet pads, and medical hygiene products, and are exported to many countries including Russia, Germany, Japan, the United States, and Mexico[37] (IV) Key Performance Drivers In H1 2025, the company achieved significant revenue and net profit growth by intensifying domestic and international market promotion, strengthening R&D, expanding global production capacity, and implementing cost-reduction initiatives - The company continuously increased its domestic and international market promotion and brand building efforts, with overseas sales revenue growing by 6.56% year-over-year, accounting for 59.73% of total revenue[41] - The company adheres to independent innovation, strengthens technological R&D, promotes formula and product iteration and upgrades, and accelerates the launch and industrialization of new products[41] - The company is fully advancing the construction of its Malaysia production base, steadily progressing with subsequent customer certification and production line switching at the Guangzhou headquarters factory, and continuously improving its global production capacity and supply chain layout[41] - The company systematically implemented cost reduction and efficiency improvement measures, continuously enhancing production and operational efficiency, improving profitability quality, achieving operating revenue of 993.24 million Yuan, a year-over-year increase of 5.47%, and net profit attributable to shareholders of 81.12 million Yuan, a year-over-year increase of 41.38%[41] II. Core Competitiveness Analysis The company's core competitiveness stems from its premium client base, global strategic presence, integrated advantages in technology, service, and cost, and continuous innovation capabilities, including breakthroughs in biodegradable and bio-based products - The company has successfully entered the qualified supplier systems of the world's top ten hygiene product manufacturers, with major clients including Kimberly-Clark, Hengan, Daio Paper Corporation, Drylock, Essity, Vinda, and Procter & Gamble[44] - The company's leadership team possesses over ten years of industry experience and familiarity with overseas market rules, with products sold to many countries including Russia, Germany, Japan, the United States, and Mexico, and a production base established in Poland, with another under construction in Malaysia, forming a global strategic layout[45][46] - Leveraging its proximity to downstream markets and emerging raw material suppliers, the company achieves technological leadership and cost advantages through R&D innovation, formula optimization, and domestic raw material substitution, while providing comprehensive customized technical services[47][48] - The company boasts a high-caliber technical team, holding 23 patent technologies, including 3 invention patents, and has made breakthrough progress in biodegradability (92.67%) and bio-based content (89%), launching the world's first odor-absorbing adhesive capable of adsorbing urine odor[49][50] III. Main Business Analysis The company's main business, hot melt pressure-sensitive adhesives, saw a 5.47% increase in operating revenue and a 41.38% rise in net profit attributable to shareholders, with significant improvements in operating cash flow Key Financial Data Year-over-Year Changes | Item | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-over-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 993,235,295.46 | 941,706,256.62 | 5.47% | / | | Operating Cost | 814,072,305.27 | 808,124,407.20 | 0.74% | / | | Selling Expenses | 27,933,061.60 | 25,885,662.44 | 7.91% | / | | Administrative Expenses | 28,456,227.45 | 29,355,585.38 | -3.06% | / | | Financial Expenses | -5,314,569.80 | -10,202,983.92 | 47.91% | Primarily due to significant exchange gains from USD exchange rate fluctuations in the prior period | | Income Tax Expenses | 22,244,216.39 | 6,722,258.02 | 230.90% | Primarily due to increased total profit of the parent company, leading to higher income tax accruals | | R&D Investment | 26,363,716.71 | 22,145,436.36 | 19.05% | / | | Net Cash Flow from Operating Activities | 518,288,617.64 | -63,830,926.69 | 911.97% | Primarily due to the company's supply chain financing and bill payment activities, and strengthened inventory management in the current period | | Net Cash Flow from Investing Activities | -340,630,649.37 | 121,875,910.76 | -379.49% | Primarily due to the company using idle funds for wealth management and increasing fixed deposit investments in the current period | | Net Cash Flow from Financing Activities | -167,044,806.59 | -75,996,597.58 | -119.81% | Primarily due to payment of deposits for supply chain financing and cash dividends in the current period | | Net Increase in Cash and Cash Equivalents | 12,344,645.72 | -12,078,833.00 | 202.20% | Primarily due to the company strengthening fund, payment, and inventory management in the current period | Products or Services Accounting for Over 10% of Revenue | Category | Operating Revenue (10,000 Yuan) | Operating Cost (10,000 Yuan) | Gross Margin | Operating Revenue Year-over-Year Change | Operating Cost Year-over-Year Change | Gross Margin Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Product or Service | | | | | | | | Hot Melt Pressure-Sensitive Adhesive | 98,636.72 | 80,777.79 | 18.11% | 4.82% | -0.04% | 3.99% | | By Industry | | | | | | | | Hygiene Products | 98,636.72 | 80,777.79 | 18.11% | 4.82% | -0.04% | 3.99% | | By Region | | | | | | | | Domestic | 40,002.53 | 31,785.10 | 20.54% | 3.89% | -4.94% | 7.38% | | International | 59,321.00 | 49,622.13 | 16.35% | 6.56% | 4.74% | 1.46% | IV. Non-Core Business Analysis Non-core business income primarily includes investment gains and foreign exchange gains from subsidiary repayments, though asset impairments (Mexico land and inventory) negatively impacted total profit Non-Core Business Analysis | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 7,255,382.20 | 7.06% | Primarily wealth management income and foreign exchange gains from subsidiary repayments | No | | Gains/losses from changes in fair value | 507,121.36 | 0.49% | Primarily fair value changes from wealth management at the balance sheet date | No | | Asset Impairment | -8,726,876.79 | -8.50% | Primarily due to accrual of impairment provisions for Mexico land and inventory write-downs | No | | Non-Operating Income | 18,497.79 | 0.02% | Primarily income from asset scrap | No | | Non-Operating Expenses | 423,919.50 | 0.41% | Primarily losses from asset scrap in the current period | No | | Credit Impairment Losses | 5,110,726.33 | 4.98% | Primarily due to a decrease in the original value of accounts receivable at period-end, leading to a corresponding reduction in bad debt provisions | No | V. Analysis of Assets and Liabilities At period-end, total assets increased by 18.07%, driven by higher monetary funds, construction in progress, short-term borrowings, and notes payable, while receivables and inventory decreased Significant Changes in Asset Composition | Item | Current Period-End Amount (Yuan) | Proportion of Total Assets | Prior Year-End Amount (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 557,288,779.45 | 24.48% | 228,108,319.22 | 11.83% | 12.65% | Primarily due to the company strengthening fund, payment, and inventory management in the current period | | Accounts Receivable | 521,239,391.90 | 22.90% | 572,387,158.07 | 29.68% | -6.78% | Primarily due to collection of accounts receivable upon meeting credit terms, resulting in a decrease in the period-end balance | | Inventories | 252,031,073.22 | 11.07% | 277,942,201.32 | 14.41% | -3.34% | Primarily due to reasonable adjustment of inventory based on production plans | | Fixed Assets | 369,704,759.86 | 16.24% | 383,050,339.74 | 19.86% | -3.62% | Primarily due to Focus Hotmelt Mexico land being reclassified to assets held for sale | | Construction in Progress | 36,055,680.92 | 1.58% | 3,769,251.64 | 0.20% | 1.38% | Primarily due to investment in the Focus Hotmelt Malaysia production base project | | Short-Term Borrowings | 289,539,080.21 | 12.72% | 59,325,035.67 | 3.08% | 9.64% | Primarily due to the company engaging in supply chain financing payments in the current period | | Notes Payable | 43,930,250.10 | 1.93% | / | / | 1.93% | Primarily due to the company engaging in notes payable transactions in the current period | | Assets Held for Sale | 19,655,246.62 | 0.86% | / | / | 0.86% | Primarily due to the company's plan to sell Focus Hotmelt Mexico land, reclassified from fixed assets to assets held for sale | Major Overseas Assets | Specific Asset Content | Asset Scale (10,000 Yuan) | Location | Operating Model | Profit/Loss (10,000 Yuan) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Poland Factory | 42,761.83 | Poland | Self-operated | -1,076.97 | 26.86% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Current Period Fair Value Change Gain/Loss (Yuan) | Current Period Purchase Amount (Yuan) | Current Period Sale Amount (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 281,035,668.12 | 507,121.36 | 765,000,000.00 | 708,988,952.45 | 337,211,691.82 | | Notes Receivable Financing | 47,674,589.90 | 188,100.29 | 153,529,603.76 | 150,708,840.85 | 49,993,707.11 | | Total | 328,710,258.02 | 695,221.65 | 918,529,603.76 | 859,697,793.30 | 387,205,398.93 | Restricted Asset Rights | Item | Period-End Book Value (Yuan) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | | Bank Deposits | 269,330,972.06 | Fixed Deposit | Fixed deposits cannot be freely withdrawn before maturity | | Other Monetary Funds | 105,115,237.86 | Guarantee Deposit | Bill margin, cannot be freely withdrawn | | Notes Receivable | 2,129,297.40 | Notes Receivable with Recourse | Recourse rights retained for notes receivable before maturity | | Total | 376,575,507.32 | | | VI. Investment Analysis Total investments increased by 100.43% year-over-year, with the Malaysia production base under construction, and the company engaging in wealth management and derivative investments for cash management and hedging - The reporting period's investment amount was 1,593,240,506.29 Yuan, a 100.43% increase compared to the prior year[67] Major Non-Equity Investment Information | Project Name | Investment Method | Industry Involved in Investment Project | Amount Invested in Current Reporting Period (Yuan) | Cumulative Actual Investment Amount as of Reporting Period End (Yuan) | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | | Hygiene Hot Melt Adhesive Product Malaysia Production Base Construction Project | Self-built | Hygiene Hot Melt Adhesive | 32,217,573.88 | 33,533,994.05 | 27.76% | - The Malaysia production base is expected to be completed and put into operation in the fourth quarter of 2025[70] - The company engaged in one forward foreign exchange contract derivative investment during the reporting period, which has matured and been recovered, realizing a cumulative gain of 14,000 Yuan in RMB, primarily for hedging and mitigating exchange rate risks[85][87] - As of June 30, 2025, the company's total unused raised funds amounted to 150.80 million Yuan, of which 34.80 million Yuan is held in a special raised funds account, and 116.00 million Yuan is managed as cash[76] - The Poland production base project did not achieve expected benefits, primarily due to the impact of the international situation and geopolitical instability, which led to some demand shifting back to the Guangzhou factory for supply, reducing economies of scale[80] 1. Overall Situation During the reporting period, the company's total investment amounted to 1,593,240,506.29 Yuan, representing a 100.43% increase compared to the previous year Reporting Period Investment Amount | Indicator | Amount (Yuan) | | :--- | :--- | | Reporting Period Investment Amount | 1,593,240,506.29 | | Prior Year Period Investment Amount | 794,913,578.91 | | Change Percentage | 100.43% | 2. Significant Equity Investments Acquired During the Reporting Period The company did not acquire any significant equity investments during the reporting period - The company did not acquire any significant equity investments during the reporting period[68] 3. Significant Non-Equity Investments in Progress During the Reporting Period The company is advancing its Malaysia production base project for hygiene hot melt adhesives, with 32.22 million Yuan invested this period, reaching 27.76% completion, and expected to commence operations in Q4 2025 Hygiene Hot Melt Adhesive Product Malaysia Production Base Construction Project | Project Name | Investment Method | Industry Involved in Investment Project | Amount Invested in Current Reporting Period (Yuan) | Cumulative Actual Investment Amount as of Reporting Period End (Yuan) | Project Progress | Expected Return | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hygiene Hot Melt Adhesive Product Malaysia Production Base Construction Project | Self-built | Hygiene Hot Melt Adhesive | 32,217,573.88 | 33,533,994.05 | 27.76% | 0.00 | - The Malaysia production base is still under construction and is expected to be completed and put into operation in the fourth quarter of 2025[70] 4. Financial Assets Measured at Fair Value The company's financial assets measured at fair value, totaling 387,205,398.93 Yuan, primarily comprise trading financial assets and notes receivable financing, with a fair value change gain of 695,221.65 Yuan this period Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (Yuan) | Current Period Fair Value Change Gain/Loss (Yuan) | Amount Purchased During Reporting Period (Yuan) | Amount Sold During Reporting Period (Yuan) | Period-End Amount (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 281,035,668.12 | 507,121.36 | 765,000,000.00 | 708,988,952.45 | 337,211,691.82 | | Notes Receivable Financing | 47,674,589.90 | 188,100.29 | 153,529,603.76 | 150,708,840.85 | 49,993,707.11 | | Total | 328,710,258.02 | 695,221.65 | 918,529,603.76 | 859,697,793.30 | 387,205,398.93 | 5. Use of Raised Funds The company's net proceeds from its initial public offering were 962.20 million Yuan, with 835.47 million Yuan (86.83%) utilized by June 30, 2025, for projects including the completed Guangzhou headquarters and the under-construction Malaysia base Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Net Raised Funds (10,000 Yuan) | Total Raised Funds Used in Current Period (10,000 Yuan) | Cumulative Total Raised Funds Used (10,000 Yuan) | Proportion of Raised Funds Used at Period-End | | :--- | :--- | :--- | :--- | :--- | :--- | | 2022 | Initial Public Offering | 96,220.43 | 16,802.28 | 83,546.79 | 86.83% | - As of June 30, 2025, the company's total unused raised funds amounted to 150.80 million Yuan, of which 34.80 million Yuan is held in a special raised funds account, and 116.00 million Yuan is managed as cash[76] - The annual production of 120,000 tons of hygiene polymer new materials manufacturing and R&D headquarters project reached its intended usable state in June 2024, but has not yet completed all production line switches[79] - The hygiene hot melt adhesive product Poland production base project did not achieve expected benefits, primarily because the international situation led to some demand shifting back to the Guangzhou factory for supply, reducing economies of scale[80] - The Malaysia production base project's total estimated investment has been adjusted to 120.80 million Yuan, with 110.07 million Yuan planned from raised funds, and the project progress is 35.63%[78] 6. Wealth Management, Derivative Investments, and Entrusted Loans The company engaged in 519.72 million Yuan in wealth management and derivative investments for hedging, realizing 14,000 Yuan in gains from forward foreign exchange contracts, with no speculative derivative investments or entrusted loans Wealth Management Overview | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (10,000 Yuan) | Unmatured Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Brokerage Wealth Management Products | Raised Funds | 30,000.00 | 11,600.00 | | Bank Wealth Management Products | Own Funds | 21,971.55 | 21,971.55 | | Total | | 51,971.55 | 33,571.55 | Derivative Investments for Hedging Purposes | Derivative Investment Type | Amount Purchased During Reporting Period (10,000 Yuan) | Amount Sold During Reporting Period (10,000 Yuan) | Proportion of Period-End Investment Amount to Company's Period-End Net Assets | | :--- | :--- | :--- | :--- | | Forward Foreign Exchange Contracts | 2,874.97 | 2,876.37 | 0.00% | - During the reporting period, the company recognized actual gains from derivative investments of 14,000 Yuan, primarily to improve the efficiency of idle self-owned USD funds and preserve/increase cash value[87][88] - The company's derivative investments adhere to the principle of locking in exchange rate risks, avoiding speculation, and have established clear risk control measures, including system development, product selection, counterparty management, and risk contingency plans[87] - The company had no speculative derivative investments or entrusted loans during the reporting period[89][90] VII. Significant Asset and Equity Disposals The company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of any significant assets during the reporting period[91] - The company did not dispose of any significant equity during the reporting period[92] VIII. Analysis of Major Holding and Participating Companies The company's main subsidiary, Focus Hotmelt Europe (Poland), reported operating revenue of 193.45 million Yuan and a net loss of 10.77 million Yuan during the reporting period Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Operating Revenue (10,000 Yuan) | Operating Profit (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Focus Hotmelt Europe | Subsidiary | Production and sales of hygiene hot melt adhesives | 12.848 million Zloty | 42,761.83 | 1,754.03 | 19,344.90 | -888.81 | -1,076.97 | IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[94] X. Risks Faced by the Company and Countermeasures The company addresses risks such as market competition, raw material price volatility, international trade, overseas operations, exchange rate fluctuations, project underperformance, increased receivables, and talent loss through strategic market expansion, optimized procurement, global supply chain enhancement, and talent development - The company faces risks of intensified market competition and slowing growth, which it addresses by expanding overseas professional teams, increasing market promotion, investing in global supply chains, enhancing R&D innovation, and diversifying product structures[94][95] - To mitigate raw material price fluctuation risks, the company optimizes procurement processes, establishes long-term partnerships with suppliers, customizes raw material development, and enhances negotiation power[96][97] - For international trade risks, the company closely monitors changes in the trade environment, strengthens communication with clients, deepens cooperation, and enhances its core competitiveness in international markets[98][99] - To address overseas operational risks, the company will improve operational management, refine internal systems, increase training for overseas composite talents, and enhance core competitiveness[100] - The company will closely monitor exchange rate trends, improve risk warning mechanisms, optimize foreign currency asset and liability structures, and settle foreign exchange at appropriate times to manage exchange rate fluctuation risks[101] - To mitigate risks of projects failing to generate expected benefits, the company will strengthen internal management, comprehensively plan and coordinate, intensify client development and market expansion efforts, and absorb new production capacity[102] - The company will strengthen classified management of accounts receivable, enhance credit assessment, intensify collection efforts, purchase credit insurance, and adjust client structure to address the risk of increasing accounts receivable balances[103] - To counter risks of technical personnel loss and technical secrets leakage, the company has established effective technical innovation incentive mechanisms, attracting, retaining, and cultivating talent, and strengthening team building[104] XI. Registration Form for Research, Communication, and Interview Activities During the Reporting Period During the reporting period, the company hosted three on-site institutional investor surveys and one online earnings briefing, engaging in discussions on its operations and future outlook - On May 16, 2025, the company hosted on-site research by institutions such as Shanxi Securities and China Asset Management Co., Ltd. in its conference room[105] - On May 21, 2025, the company hosted on-site research by institutions such as Minsheng Securities and Cathay Fund Management Co., Ltd. in its conference room[105] - On May 30, 2025, the company held its 2024 annual online earnings briefing via the Value Online network platform[105] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[106] - The company has not disclosed a valuation enhancement plan[106] XIII. Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[106] Section IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[108] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The board approved a 2025 semi-annual profit distribution plan to pay a cash dividend of 2.00 Yuan (tax inclusive) per 10 shares based on 79,566,522 shares, without bonus shares or capital reserve conversion 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Number of bonus shares per 10 shares (shares) | 0 | | Dividend per 10 shares (Yuan) (tax inclusive) | 2.00 | | Share capital base for distribution plan (shares) | 79,566,522 | | Cash dividend amount (Yuan) (tax inclusive) | 15,913,304.40 | | Proportion of total cash dividend to total profit distribution | 100.00% | | Distributable profit (Yuan) | 247,518,126.09 | - This profit distribution plan complies with relevant regulatory guidelines and the company's articles of association, considering both the company's future operational development and investor interests[109] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The first vesting period of the 2023 restricted stock incentive plan was completed, with 36 grantees vesting 417,822 shares at 16.31 Yuan/share, while some shares were forfeited due to performance or departures - The first vesting period of the company's 2023 restricted stock incentive plan has been achieved, with 36 incentive recipients vesting 417,822 shares at a vesting price of 16.31 Yuan/share, which were listed for trading on May 19, 2025[112] - Due to the departure of 1 incentive recipient, 100,000 restricted shares were forfeited; additionally, due to the company's performance assessment not meeting targets, 85,578 restricted shares could not be vested, totaling 185,578 forfeited shares[112] - The company had no employee stock ownership plans or other employee incentive measures during the reporting period[113] IV. Environmental Information Disclosure The company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law[114] V. Social Responsibility The company actively fulfills its social responsibilities by protecting shareholder, employee, and customer rights, promoting environmental sustainability, ensuring legal compliance, and engaging in public welfare activities - The company established a sustainable development working group to coordinate management of environmental, social, and corporate governance modules, and formulate clear sustainable development goals[114] - The company protects shareholder rights by improving its corporate governance structure, fulfilling information disclosure obligations, and establishing investor communication channels[114] - The company complies with labor laws and regulations, provides a good working environment and benefits, and prioritizes employee skill enhancement, occupational health, and safety[115] - The company builds long-term cooperative relationships with suppliers to protect their legitimate rights and focuses on customers to provide optimal value solutions and enhance customer satisfaction[115] - The company emphasizes green operations, strives to improve product biodegradability, its factories have received LEED Silver and Gold certifications, passed the "Guangzhou Green Factory" assessment and ISO50001 energy management system certification, and uses photovoltaic power generation and purchases green electricity certificates to reduce carbon emissions[117] - The company operates legally, pays taxes in accordance with the law, and actively gives back to society by donating cotton shoes and clothing to herders in Qinghai Province, making donations to primary schools in Shaoguan City, and Focus Hotmelt Poland donating adult diapers to local charities and sponsoring events[118] Section V Significant Matters I. Commitments Fulfilled and Overdue Unfulfilled by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company that were either fulfilled or overdue and unfulfilled - During the reporting period, there were no commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[121] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the reporting period, there was no non-operating occupation of listed company funds by controlling shareholders or other related parties - During the reporting period, there was no non-operating occupation of listed company funds by controlling shareholders or other related parties[122] III. Irregular External Guarantees There were no irregular external guarantees by the company during the reporting period - The company had no irregular external guarantees during the reporting period[123] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[124] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Period During the reporting period, there were no explanations from the board of directors, supervisory board, or audit committee regarding a "non-standard audit report" from the accounting firm - During the reporting period, there were no explanations from the board of directors, supervisory board, or audit committee regarding a "non-standard audit report" from the accounting firm[125] VI. Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year During the reporting period, there was no explanation from the board of directors regarding a "non-standard audit report" for the previous year - During the reporting period, there was no explanation from the board of directors regarding a "non-standard audit report" for the previous year[125] VII. Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[125] VIII. Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[126] IX. Penalties and Rectification There were no penalties or rectification situations for the company during the reporting period - There were no penalties or rectification situations for the company during the reporting period[127] X. Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the reporting period, there were no integrity issues concerning the company, its controlling shareholders, or actual controllers - During the reporting period, there were no integrity issues concerning the company, its controlling shareholders, or actual controllers[128] XI. Significant Related Party Transactions The company engaged in routine raw material procurement with Zibo Luhua Hongjin New Materials Group Co., Ltd., totaling 94.81 million Yuan, within approved limits, with no other significant related party transactions Related Party Transactions Related to Daily Operations | Related Party | Related Party Relationship | Related Party Transaction Type | Related Party Transaction Content | Related Party Transaction Amount (10,000 Yuan) | Proportion of Similar Transactions | Approved Transaction Limit (10,000 Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zibo Luhua Hongjin | Same actual controller as Zibo Fufeng Hongjin Investment Partnership (Limited Partnership), a shareholder holding over 5% | Procurement | Raw Materials | 9,480.84 | 13.44% | 32,000 | No | - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[130] - The company had no related party transactions involving joint external investments during the reporting period[131] - The company had no related party creditor-debtor relationships during the reporting period[132] XII. Significant Contracts and Their Performance The company has various ongoing lease agreements for factory buildings, warehouses, offices, and laboratories with terms extending up to 2031, but no significant entrustment, contracting, guarantees, or other major operating contracts - The company had no entrustment situations during the reporting period[136] - The company had no contracting situations during the reporting period[137] Lease Information | No. | Lessee | Lessor | Address | Purpose | Lease Term | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Focus Hotmelt | Zengcheng Oriental Dragon Textile and Garment Co., Ltd. | A1 Factory Building, Oriental Dragon Industrial Park, Xiancun Town, Zengcheng City, Guangdong Province | Factory and Office | 2015.1.1-2025.3.31, 2025.4.1-2031.3.31 | | 9 | Focus Hotmelt Turkey | Recep Akardas and Omer Serif kurtulus | Umraniye Istanbul Turkey | Office, Laboratory | 2024.10.1-2025.9.30 | | 10 | Focus Hotmelt Malaysia | TS DIF WORLDWIDE SDN. BHD. | Jalan Sungai Chandong 28, KS11, Taman Perindustrian Pulau Indah, 42920 Klang | Factory and Office | 2024.10.16-2030.10.15 | - The company had no significant guarantee situations during the reporting period[139] - The company had no significant operating contracts or other significant contracts during the reporting period[140] XIII. Explanation of Other Significant Matters The company completed its share repurchase plan, vested the first period of its restricted stock incentive plan, and implemented a 2024 annual profit distribution of 5.00 Yuan (tax inclusive) per 10 shares - The company has completed its share repurchase plan, cumulatively repurchasing 851,300 shares, accounting for 1.06% of the total share capital, with a total transaction amount of 23.27 million Yuan[141] - The first vesting period of the restricted stock incentive plan has been completed, with 36 incentive recipients vesting 417,822 shares at a vesting price of 16.31 Yuan/share[142] - The company launched its 2024 annual profit distribution plan, distributing a cash dividend of 5.00 Yuan (tax inclusive) per 10 shares based on 79,566,522 shares, totaling 39.78 million Yuan, which has been completed[143] XIV. Significant Matters of Company Subsidiaries The company is establishing a Malaysia production base, expected to be operational by Q4 2025, while the Mexico production base project has been suspended due to complex international political and economic conditions - The company is preparing for its Malaysia production base, with factory site selection, leasing, renovation approval, architectural design, and most architectural renovation work completed, expected to be completed and put into operation in the fourth quarter of 2025[144][145] - Given the complex and volatile international political and economic situation and intensified geopolitical instability, the company decided to suspend the Mexico production base project, which remains suspended as of the end of the reporting period[146] Section VI Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, the company's total share capital increased by 417,822 shares to 80,417,822 shares due to the vesting of restricted stock, with corresponding changes in restricted and unrestricted shares, and the completion of a share repurchase plan Share Capital Changes | Share Category | Number Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 34,543,821 | 43.18% | 26,798 | 34,570,619 | 42.99% | | II. Unrestricted Shares | 45,456,179 | 56.82% | 391,024 | 45,847,203 | 57.01% | | III. Total Shares | 80,000,000 | 100.00% | 417,822 | 80,417,822 | 100.00% | - The company's total share capital increased from 80,000,000 shares to 80,417,822 shares, primarily due to the vesting of 417,822 restricted shares from the first vesting period of the 2023 restricted stock incentive plan[151] - The company has completed its share repurchase plan, cumulatively repurchasing 851,300 shares, accounting for 1.06% of the total share capital at that time, with a total transaction amount of 23.27 million Yuan[153] Changes in Restricted Shares | Shareholder Name | Beginning Restricted Shares (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Ending Restricted Shares (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Focus Hotmelt Enterprise Management | 12,956,907 | 0 | 0 | 12,956,907 | Pre-IPO restricted shares | | Chen Shuguang | 6,726,878 | 0 | 0 | 6,726,878 | Pre-IPO restricted shares | | Liu Qingsheng | 6,350,357 | 0 | 0 | 6,350,357 | Pre-IPO restricted shares | | Fan Peijun | 5,298,588 | 0 | 0 | 5,298,588 | Pre-IPO restricted shares | | Pang Wanyou | 2,051,066 | 0 | 7,047 | 2,058,113 | Senior management restricted shares | | Zhou Mingliang | 1,153,725 | 0 | 9,163 | 1,162,888 | Senior management restricted shares | | Shi Encheng | 0 | 0 | 6,872 | 6,872 | Senior management restricted shares | | Liao Yantao | 0 | 0 | 5,291 | 5,291 | Senior management restricted shares | | Yu Gangshu | 6,300 | 1,575 | 0 | 4,725 | Senior management restricted shares | II. Securities Issuance and Listing The first vesting period of the company's 2023 restricted stock incentive plan was completed, with 417,822 ordinary RMB shares listed for trading on May 19, 2025 Securities Issuance and Listing | Stock Name | Issuance Date | Issuance Price (Yuan/share) | Issuance Quantity (shares) | Listing Date | Approved Listing Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares | May 19, 2025 | 16.31 | 417,822 | May 19, 2025 | 417,822 | - The first vesting period of the company's 2023 restricted stock incentive plan has been completed and the shares are listed for trading[157] III. Shareholder Numbers and Shareholding Structure As of the reporting period end, the company had 7,952 ordinary shareholders. Top ten shareholders include Guangzhou Focus Hotmelt Enterprise Management Co., Ltd. with 16.11% and Zibo Fufeng Hongjin Investment Partnership with 9.87%, while actual controllers Chen Shuguang, Liu Qingsheng, and Fan Peijun collectively hold 35.81% - The total number of ordinary shareholders at the end of the reporting period was 7,952[159] Shareholding of Shareholders Holding Over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou Focus Hotmelt Enterprise Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 16.11% | 12,956,907 | 12,956,907 | 0 | | Zibo Fufeng Hongjin Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 9.87% | 7,941,145 | 0 | 7,941,145 | | Chen Shuguang | Domestic Natural Person | 8.44% | 6,786,472 | 6,726,878 | 59,594 | | Liu Qingsheng | Domestic Natural Person | 7.94% | 6,387,939 | 6,350,357 | 37,582 | | Fan Peijun | Domestic Natural Person | 6.64% | 5,336,170 | 5,298,588 | 37,582 | - Chen Shuguang, Liu Qingsheng, and Fan Peijun are the company's controlling shareholders and actual controllers, and they are also parties acting in concert, collectively holding 35.81% of the shares[160] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, company directors and senior management, including Chen Shuguang, Liu Qingsheng, Fan Peijun, Wojinye, Zhou Mingliang, Pang Wanyou, Shi Encheng, and Liao Yantao, all increased their shareholdings Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Beginning Shareholding (shares) | Shares Increased in Current Period (shares) | Ending Shareholding (shares) | | :--- | :--- | :--- | :--- | :--- | | Chen Shuguang | Chairman, General Manager | 6,726,878 | 59,594 | 6,786,472 | | Liu Qingsheng | Vice Chairman, Deputy General Manager | 6,350,357 | 37,582 | 6,387,939 | | Fan Peijun | Director, Deputy General Manager | 5,298,588 | 37,582 | 5,336,170 | | Wo Jinye | Director | 0 | 28,436 | 28,436 | | Zhou Mingliang | Director | 1,538,300 | 12,218 | 1,550,518 | | Pang Wanyou | Director | 2,734,755 | 9,396 | 2,744,151 | | Shi Encheng | Chief Financial Officer | 0 | 9,163 | 9,163 | | Liao Yantao | Board Secretary | 0 | 7,055 | 7,055 | - The shares increased by directors and senior management in the current period are all from the vesting of shares as incentive recipients in the first vesting period of the company's 2023 restricted stock incentive plan[163] V. Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[164] - The company's actual controller did not change during the reporting period[164] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[165] Section VII Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[167] Section VIII Financial Report I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[169] II. Financial Statements This section presents the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, providing a comprehensive overview of financial performance - This section includes the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Owners' Equity, and Parent Company Statement of Changes in Owners' Equity[170][174][177][180][182][186][187][199] III. Company Overview Focus Hotmelt New Materials Co., Ltd., listed on the Shenzhen Stock Exchange since September 2, 2022, increased its total share capital to 80,417,822 shares due to equity incentive vesting, focusing on R&D, production, and sales of eco-friendly hot melt adhesives - Focus Hotmelt New Materials Co., Ltd. shares were listed and traded on the Shenzhen Stock Exchange on September 2, 2022[211] - In the current period, due to the vesting of the first tranche of the 2023 restricted stock incentive plan, the company's total shares increased to 80,417,822 shares[211] - The company's main business activities involve the research, development, production, and sales of environmentally friendly hot melt adhesives used in disposable hygiene products[211] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months from the reporting period end - The company's financial statements are prepared on a going concern basis[213] - The company has no matters or circumstances that would cause significant doubt about its ability to continue as a going concern for the 12 months from the end of the reporting period[214] V. Significant Accounting Policies and Estimates The company established specific accounting policies and estimates for financial instrument impairment, inventory, fixed asset depreciation, intangible assets, and revenue recognition, adhering to accounting standards to accurately reflect its financial position, with no changes during the period - The company has formulated specific accounting policies and estimates for transactions or events such as financial instrument impairment, inventory, depreciation of fixed assets, intangible assets, a