芯能科技(603105) - 2025 Q2 - 季度财报

Definitions Common Terms and Definitions This section provides definitions for common terms used in the report, ensuring clarity and understanding of the content Common Terms and Definitions | Common Term | Meaning | | :--- | :--- | | Reporting Period, Current Period | January 1, 2025 to June 30, 2025 | | The Company, Sunoren Technology | Zhejiang Sunoren Solar Technology Co,Ltd | | CSRC, China Securities Regulatory Commission | China Securities Regulatory Commission | | EPC | Engineering, Procurement, and Construction, where the company undertakes the entire or partial process of a project's design, procurement, construction, and trial operation on behalf of the owner | | MW | Megawatt, a unit of power, 1 megawatt equals 1,000 kilowatts | | GW | Gigawatt, a unit of power, 1 gigawatt equals 1,000 megawatts | Company Profile and Key Financial Indicators Company Information This section presents the company's basic registration information, including its names, abbreviations, and legal representative Company Basic Information | Item | Content | | :--- | :--- | | Company's Chinese Name | 浙江芯能光伏科技股份有限公司 | | Company's Chinese Abbreviation | 芯能科技 | | Company's English Name | Zhejiang Sunoren Solar Technology Co,Ltd | | Company's English Abbreviation | SUNOREN | | Company's Legal Representative | Zhang Lizhong | Contacts and Contact Methods This section provides contact information for the company's Board Secretary and Securities Affairs Representative Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhang Jian | No 9 Pidu Road, Haining, Zhejiang | 0573-87393016 | 0573-87393031 | xnkj@sunorensolar.com | | Securities Affairs Representative | Dong Xiongcai | No 9 Pidu Road, Haining, Zhejiang | 0573-87393016 | 0573-87393031 | xnkj@sunorensolar.com | Summary of Changes in Basic Information This section discloses the company's basic information and confirms no historical changes during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17] Summary of Changes in Information Disclosure and Report Availability This section specifies the company's designated information disclosure channels and confirms no changes during the reporting period - The company's designated information disclosure newspapers are "Shanghai Securities News" and "Securities Times", the website is www.sse.com.cn, www.cnstock.com, and www.stcn.com, and the semi-annual report is available at the Board Secretary's office, with no changes during the reporting period[18] Company Stock Profile This section provides details of the company's A-share stock, including its type, listing exchange, ticker, and code Company Stock Profile | Stock Type | Stock Exchange | Stock Ticker | Stock Code | Previous Stock Ticker | | :--- | :--- | :--- | :--- | :--- | | A-Share | Shanghai Stock Exchange | Sunoren Technology | 603105 | - | Key Accounting Data and Financial Indicators This section discloses key financial data for H1 2025, showing growth in revenue and net profit but a decline in operating cash flow Key Accounting Data for H1 2025 | Key Accounting Data | Current Reporting Period (Jan-Jun) (CNY) | Same Period Last Year (Adjusted) (CNY) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 363,060,120.79 | 338,637,150.59 | 7.21 | | Total Profit | 125,575,618.33 | 120,215,321.46 | 4.46 | | Net Profit Attributable to Shareholders | 105,345,298.27 | 104,156,114.79 | 1.14 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 103,389,302.75 | 97,030,626.85 | 6.55 | | Net Cash Flow from Operating Activities | 109,814,999.34 | 155,471,001.66 | -29.37 | | Net Assets Attributable to Shareholders (End of Period) | 2,195,241,618.92 | 2,189,908,044.36 | 0.24 | | Total Assets (End of Period) | 4,593,812,197.72 | 4,297,315,567.63 | 6.90 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Same Period Last Year (Adjusted) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/Share) | 0.21 | 0.21 | 0.00 | | Diluted Earnings Per Share (CNY/Share) | 0.21 | 0.21 | 0.00 | | Basic EPS (Excluding Non-recurring Items) (CNY/Share) | 0.21 | 0.19 | 10.53 | | Weighted Average Return on Equity (%) | 4.73 | 4.96 | Decreased by 0.23 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 4.64 | 4.62 | Increased by 0.02 percentage points | - The company has retrospectively adjusted relevant financial data in accordance with the "Accounting Treatment for Warranty-type Quality Assurance Not Constituting a Separate Performance Obligation" as stipulated in "CAS Interpretation No 18" issued by the Ministry of Finance[22] Non-recurring Profit and Loss Items and Amounts This section lists the company's non-recurring profit and loss items for H1 2025, totaling a net amount of CNY 1,955,995.52 Non-recurring Profit and Loss Items for H1 2025 | Non-recurring Profit and Loss Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets, including write-offs of asset impairment provisions | 837,947.91 | | Government Grants included in current profit/loss, excluding those closely related to normal business operations, compliant with national policies, and having a continuous impact on profit/loss | 820,334.59 | | Reversal of impairment provisions for individually tested receivables | 464,613.55 | | Other non-operating income and expenses not listed above | 62,070.49 | | Less: Income tax impact | 228,971.02 | | Total | 1,955,995.52 | Management Discussion and Analysis Description of the Company's Industry and Core Business during the Reporting Period This section details the photovoltaic industry's trends and the company's focus on distributed PV, particularly commercial and industrial rooftop projects - The company operates in the photovoltaic industry, specializing in the distributed PV sector with a focus on investing in and operating commercial and industrial rooftop power stations under the "self-consumption with surplus power fed to the grid" model[27] - Against the backdrop of "peak carbon and carbon neutrality" goals, the photovoltaic industry is facing a historic opportunity for energy transition, with PV generation set to play a crucial role in filling the energy gap and continuing large-scale capacity expansion[27] - The construction of a new power system dominated by new energy sources relies heavily on photovoltaics and energy storage, with new energy storage capacity showing explosive growth, with year-on-year increases of 260% and 135% in the last two years[28] - The marketization of new energy feed-in tariffs is accelerating the PV industry's transition from "policy-driven" to "market-driven", with all power from PV and wind projects connected after June 1, 2025,原則上 to enter the electricity market[29][30] - Distribution transformer capacity expansion will support the high-quality growth of distributed PV, with the distribution network expected to accommodate around 500 GW of distributed new energy by 2025[31] - Commercial and industrial distributed PV is returning to its essence of local consumption, with the "self-consumption, surplus to the grid" model in eastern and central regions benefiting from new regulations, allowing enterprises to reduce carbon emissions and energy costs[32][33] - Widening peak-valley price spreads and falling battery prices are accelerating the commercialization of C&I energy storage, with current battery cell prices having dropped by about 70% from their peak, significantly enhancing economic viability[34] - The shift from dual control of energy consumption to dual control of carbon emissions enhances the value of carbon assets, benefiting distributed PV as a primary source of green electricity and green certificates, which holds significant potential for future returns[35] - The company's core business includes investment and operation of self-owned distributed PV power stations, EPC services, manufacturing and sales of PV products, energy storage (C&I and product sales), and charging pile investment and operation, with a primary focus on the investment and operation of distributed PV power stations[36] - The majority of self-owned distributed PV stations are C&I projects under the "self-consumption, surplus to the grid" model, characterized by strong profitability, high revenue and profit elasticity, and high customer stickiness, but also require high-quality resources and face greater development challenges[37][38][39][40] - The PV power station EPC business includes EPC services, project development, and O&M, with O&M revenue expected to grow as "county-wide promotion" projects are implemented[41][43] - The PV products business mainly involves the production and sale of PV modules, primarily to meet the needs of the company's own power station projects[44] - The energy storage business is divided into C&I energy storage and energy storage products, with residential energy storage products having completed core power segment iteration and key market certifications, ready for large-scale sales[45] - The charging pile business focuses on investment and operation, leveraging existing distributed PV rooftop resources from enterprise owners for steady development[46] Discussion and Analysis of Operations The company strategically expanded its high-margin self-owned distributed power station business while exploring new applications and aiming for breakthroughs in energy storage - The company's strategy focuses on self-owned distributed power stations, keeping pace with technological advancements, and leveraging its core business to explore new growth areas, ensuring sustainable operations and risk resilience through reliable cash flow from power generation[46] - By the end of the reporting period, the company's cumulative grid-connected capacity of self-owned distributed PV stations reached approximately 962 MW, an increase of 51 MW from the end of the previous year, steadily advancing towards the GW level[47] Key Operating Results for H1 2025 | Indicator | Current Reporting Period (CNY 10,000) | Y-o-Y Change (%) | | :--- | :--- | :--- | | Operating Revenue | 36,306.01 | 7.21 | | Net Profit Attributable to Shareholders | 10,534.53 | 1.14 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 10,338.93 | 6.55 | (I) Overall Operations in H1 2025 This section analyzes the main drivers of changes in the income statement, including growth in PV power generation, interest expenses, and tax changes - The increase in PV power generation revenue and gross profit was mainly due to the continuous expansion of self-owned power stations and an increase in solar irradiation, resulting in 33 more equivalent utilization hours and an additional 31 million kWh of power generation compared to the same period last year[48] - As of the end of the reporting period, the total installed capacity of the company's grid-connected self-owned power stations reached 962 MW, expected to generate annual revenue of approximately CNY 614 million (excluding tax) and a gross profit of about CNY 393 million, with a stable gross margin of 64%, a model sustainable for 9-25 years[49] - Revenue from PV product sales increased but remained small with low gross margins; PV station EPC business saw reduced orders and lower revenue; charging pile operations revenue decreased with low gross margins, but the impact on overall performance was minimal[50][51] - Finance costs for the period were CNY 45.38 million, a slight increase of CNY 0.47 million, mainly due to interest accrual on the CNY 880 million convertible bonds at an effective rate of 6.62%, which was higher than bank loan rates, resulting in about CNY 13 million more in interest expenses[52] - The company's other income decreased by approximately CNY 10 million this period, primarily due to the expiration of local subsidy policies for some existing self-owned PV power stations, though the impact on overall performance is limited[53] - Corporate income tax expense for the period was CNY 20.23 million, an increase of CNY 4.17 million year-on-year, mainly because the "three exemptions and three halves" tax incentive for self-owned distributed PV projects is gradually expiring[54] PV Power Generation Business Performance in H1 2025 | Indicator | Current Reporting Period (CNY 10,000) | Same Period Last Year (CNY 10,000) | Change (CNY 10,000) | % of Core Business Revenue | | :--- | :--- | :--- | :--- | :--- | | PV Power Generation Revenue | 31,734.50 | 29,824.94 | 1,909.56 | 87.90 | | PV Power Generation Gross Profit | 20,539.18 | 19,336.40 | 1,202.78 | - | (II) Priorities for the Second Half of the Year The company will focus on consolidating its distributed PV leadership, developing a dual-track energy storage business, and exploring high-tech industries - In the second half of the year, the company will consolidate its position in the distributed PV industry by accelerating the grid connection of stations under construction, focusing on regions with high industrial electricity demand and prices, and actively developing and reserving high-quality C&I rooftop resources to ensure synchronized growth in power generation scale and operational efficiency[55] - The company will focus on building a business system of "C&I energy storage operation services + residential energy storage product R&D and sales", leveraging existing distributed customer resources to promote large-scale application of C&I storage, while accelerating the market promotion and sales of residential energy storage products to cultivate diversified profit growth points[55] - Leveraging the capital and resource advantages from its main business, the company will actively expand into high-tech industries, focusing on exploring high-tech sectors such as robotics, artificial intelligence, new materials R&D, smart microgrid system integration, and breakthroughs in energy storage technology[55][59] - The company has established a nationwide presence, with self-owned power stations outside its home province reaching a cumulative installed capacity of 206 MW, accounting for 21.47% of the total, focusing on Jiangsu and Guangdong while expanding into potential markets like Jiangxi, Anhui, Tianjin, Hubei, and Shanghai[56] - The company will steadily advance its C&I energy storage operations by leveraging its existing high-quality distributed customer base for targeted conversion, using EMC and EPC models to tap into the commercial value of peak-valley arbitrage and demand management, thereby continuously improving the IRR of C&I energy storage assets[57][58] - The company will moderately promote its residential energy storage products overseas, having completed the iteration and key market certification for core power segments of its three product lines: off-grid inverters, portable power stations, and hybrid inverters, making them ready for large-scale sales[58] Analysis of Core Competencies during the Reporting Period The company's core strengths lie in its resource development, brand reputation, O&M services, integrated industry chain, and advantages in new business expansion - The company's key core competency is its strong ability to develop high-quality industrial rooftop resources, having secured over 15 million m² of rooftop resources from 1,171 industrial enterprises by June 30, 2025, through a professional team, proactive layout, and quality service[60][61][62][64][65] - As one of the earliest domestic enterprises in distributed PV development, the company has accumulated extensive experience and technical strength, establishing a high level of "Sunoren" brand recognition and a strong reputation with local power grids and rooftop owners[66][67] - The company has a dedicated O&M department with a professional team and has developed a three-in-one intelligent monitoring platform for PV stations, energy storage, and charging piles, demonstrating outstanding design and efficient grid-connection capabilities[70][71][72] - The company possesses a relatively complete distributed PV industry chain, enabling it to efficiently and independently handle multiple stages from resource acquisition and station design to construction supervision, module supply, and grid connection, supported by its own PV module production line[73] - The company has a customer base of nearly a thousand large industrial electricity consumers with a total annual electricity consumption of nearly 10 billion kWh and over 14 million m² of C&I plant area, providing a vast application space for diversified businesses like C&I energy storage, charging piles, and energy storage products[74] - The company boasts a professional management team with inverter R&D capabilities and has established strong technical advantages in distributed power station development, O&M, PV product manufacturing, and new application scenarios, holding 148 patents as of June 2025[75][76] Key Operations during the Reporting Period This section analyzes the reasons for major changes in the company's financial statements, including revenue, costs, expenses, and cash flows - The increase in operating revenue was mainly due to the steady growth of PV power generation income from the expanding scale of self-owned power stations, which offset the decrease in PV EPC business revenue[78][79] - R&D expenses decreased by 31.41% year-on-year, primarily because an increase in revenue from PV product prototypes led to the related R&D expenditures being transferred to the cost of goods sold[79] - Net cash flow from operating activities decreased by 29.37% year-on-year, mainly due to a reduction in tax refunds and government subsidies received, coupled with an increase in tax payments and raw material procurement costs for PV products[80] - Net cash flow from financing activities increased by 175.95% year-on-year, primarily due to new project loans for the construction of PV power stations, which increased cash inflows from financing activities[80] Analysis of Changes in Key Financial Statement Items for H1 2025 | Item | Current Period (CNY) | Same Period Last Year (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 363,060,120.79 | 338,637,150.59 | 7.21 | | Operating Costs | 156,784,360.92 | 141,040,443.53 | 11.16 | | Selling Expenses | 1,429,821.97 | 1,230,877.82 | 16.16 | | Administrative Expenses | 22,090,821.90 | 23,074,900.89 | -4.26 | | Finance Costs | 45,383,745.36 | 44,912,206.08 | 1.05 | | R&D Expenses | 8,679,295.14 | 12,653,269.68 | -31.41 | | Net Cash Flow from Operating Activities | 109,814,999.34 | 155,471,001.66 | -29.37 | | Net Cash Flow from Investing Activities | -147,144,655.24 | -207,589,628.12 | 29.12 | | Net Cash Flow from Financing Activities | 80,315,748.44 | -105,744,327.55 | 175.95 | (I) Core Business Analysis This section details the reasons for changes in revenue, costs, and expenses, primarily influenced by PV business growth and R&D expenditure transfers - Operating revenue increased by 7.21%, mainly due to the steady growth of PV power generation income as the scale of self-owned power stations expanded[78][79] - R&D expenses decreased by 31.41%, primarily because an increase in revenue from PV product prototypes led to the related R&D expenditures being transferred to the cost of goods sold[79] Analysis of Changes in Key Accounting Data for H1 2025 | Item | Current Period (CNY) | Same Period Last Year (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 363,060,120.79 | 338,637,150.59 | 7.21 | | Operating Costs | 156,784,360.92 | 141,040,443.53 | 11.16 | | Selling Expenses | 1,429,821.97 | 1,230,877.82 | 16.16 | | Administrative Expenses | 22,090,821.90 | 23,074,900.89 | -4.26 | | Finance Costs | 45,383,745.36 | 44,912,206.08 | 1.05 | | R&D Expenses | 8,679,295.14 | 12,653,269.68 | -31.41 | | Net Cash Flow from Operating Activities | 109,814,999.34 | 155,471,001.66 | -29.37 | | Net Cash Flow from Investing Activities | -147,144,655.24 | -207,589,628.12 | 29.12 | | Net Cash Flow from Financing Activities | 80,315,748.44 | -105,744,327.55 | 175.95 | (III) Analysis of Assets and Liabilities This section analyzes major changes in the company's assets and liabilities, noting increases in receivables, inventory, and short-term borrowings Changes in Assets and Liabilities in H1 2025 | Item Name | End of Current Period (CNY) | End of Previous Year (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 381,615,369.40 | 276,759,015.87 | 37.89 | Mainly due to an increase in national subsidies receivable for PV power generation | | Receivables Financing | 8,874,052.11 | 2,818,621.13 | 214.84 | Mainly due to an increase in notes receivable | | Inventory | 14,802,593.26 | 11,219,460.23 | 31.94 | Mainly due to an increase in raw material purchases | | Short-term Borrowings | 270,225,361.11 | 190,004,779.17 | 42.22 | Mainly due to an increase in short-term loans for operational expenses | | Notes Payable | 103,154,498.54 | 60,783,288.32 | 69.71 | Mainly due to an increase in payments settled with notes | | Accounts Payable | 88,436,026.00 | 52,131,445.80 | 69.64 | Mainly due to an increase in payables for engineering equipment | | Employee Benefits Payable | 4,736,972.61 | 21,044,881.06 | -77.49 | Mainly due to the payment of prior-year bonuses | Major Restricted Assets as of the Reporting Period End | Item | Closing Book Value (CNY 10,000) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | | Monetary Funds | 5,878.99 | Pledge | Bank acceptance bill margin, residential PV loan margin for farmers | | Fixed Assets | 155,349.99 | Mortgage | Pledged as collateral for bank loans for the company and its subsidiaries | | Total | 161,228.98 | - | - | (IV) Investment Analysis The company expanded its market presence by establishing new subsidiaries and increasing capital in existing ones, while also liquidating one subsidiary - The company transferred its 90% stake in Sunoren Microgrid, held by its wholly-owned subsidiary Nengfa Electronics, to itself at a price determined by the proportional net asset value of Sunoren Microgrid at the end of 2024[88] - The liquidation of the wholly-owned subsidiary Ji'an Sunoren during the reporting period had no material impact on the company's overall production, operations, or performance[87][90] Establishment of Wholly-owned Subsidiaries during the Reporting Period | No | Company Name | Establishment Date | Registered Capital | Main Business | | :--- | :--- | :--- | :--- | :--- | | 1 | Sunhork (Hong Kong) | Jan 2025 | HKD 10,000 | International sales of PV and energy storage products | | 2 | Guizhou Sunoren | Jun 2025 | CNY 8 million | Investment and operation of distributed PV power stations | Capital Increase in Wholly-owned Subsidiaries during the Reporting Period | No | Company Name | Capital Increase Date | Capital Increase Amount (CNY 10,000) | Registered Capital After Increase (CNY 10,000) | Main Business | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Wuhan Sunoren | May 2025 | 500.00 | 1,000.00 | Investment and operation of distributed PV power stations | | 2 | Shanghai Sunlutta | Jun 2025 | 100.00 | 300.00 | Investment and operation of distributed PV power stations | (VI) Analysis of Major Holding and Investee Companies This section discloses the acquisition and disposal of subsidiaries and details the financial status of key subsidiaries Acquisition and Disposal of Subsidiaries during the Reporting Period | Company Name | Method of Acquisition/Disposal | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Sunhork (Hong Kong) | Investment Establishment | Beneficial for the company's international trade business | | Guizhou Sunoren | Investment Establishment | Beneficial for accelerating the company's market layout in the distributed PV sector | | Ji'an Sunoren | Liquidation | No material impact | Financials of Major Subsidiaries at the End of the Reporting Period (Unaudited) | Company Name | Registered Capital (CNY 10,000) | Total Assets (CNY) | Net Profit (CNY) | Operating Revenue (CNY) | Net Assets (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Haining Maolong | 15,000 | 413,062,202.07 | 9,222,014.85 | 26,459,834.04 | 244,270,098.93 | | Tongxiang Kelian | 26,000 | 309,823,417.31 | 5,194,943.77 | 23,262,953.68 | 210,966,955.38 | | Sunoren Trading | 500 | 10,470,294.82 | 1,234,693.03 | 24,065,136.70 | 1,231,269.14 | Other Disclosures This section details potential risks the company faces, including market expansion, operational stability, receivables collection, and project implementation, along with corresponding mitigation strategies - The company faces market development risks from intense competition, varied local policies, and restrictions on large distributed PV projects, but the "dual carbon" goals and rising electricity prices enhance investment returns, and the company's existing portfolio of small, decentralized stations with high self-consumption rates is less affected by new policies[91][92][93][94] - Operational stability risks exist, such as the business instability of rooftop owners, building demolition, and natural disasters, but the company mitigates these by partnering with stable enterprises, diversifying its rooftop station portfolio, and insuring its assets[95][96] - The risk of accounts receivable collection arises mainly from the extended settlement cycle for national PV subsidies, but the company mitigates this by working with high-quality customers and ensuring timely settlement from the grid, with pending national subsidies expected to be paid out as policies advance[97][98][99] - A potential decline in electricity prices could lower returns, but under the "peak carbon, carbon neutrality" goals, stricter energy consumption controls for C&I enterprises and policies promoting new energy storage make significant price reductions unlikely[100][101][102] - The implementation of projects funded by raised capital faces risks from long cycles, macroeconomic changes, and market dynamics; the company has extended the implementation period for the "Distributed PV Power Station Construction Project" to October 2025 and has changed some sub-projects[103][104][105][106] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[108] Profit Distribution or Capitalization of Capital Reserve Plan The Board of Directors resolved that there would be no profit distribution or capitalization of capital reserve plan during the reporting period - The company had no profit distribution or capitalization of capital reserve plan during the reporting period[108] Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[109] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the Mandatory Disclosure List The company was not included in the list of enterprises required to disclose environmental information during the reporting period - The company was not included in the list of enterprises required to disclose environmental information[109] Specifics on Consolidating Poverty Alleviation Achievements and Rural Revitalization The company was not involved in consolidating poverty alleviation achievements or rural revitalization efforts during the reporting period - The company was not involved in consolidating poverty alleviation achievements or rural revitalization efforts during the reporting period[110] Significant Matters Fulfillment of Commitments This section discloses that all commitments made by the company, its controlling shareholders, and management during its IPO and refinancing were strictly fulfilled - The controlling shareholders and actual controllers, Zhang Lizhong, Zhang Wenjuan, and Zhang Zhenhao, have committed to resolving non-competition and related-party transactions, ensuring the company's independent operation and decision-making without misappropriating funds or assets[112][113][114](index=114&type=chunk][115] - The company and its directors, supervisors, and senior management have committed that all application documents, including the prospectus, are true, accurate, complete, and timely, without any false records, misleading statements, or material omissions[115][116](index=116&type=chunk][117] - The company's directors, senior management, and controlling shareholders have committed not to transfer benefits to other parties unfairly, not to interfere with the company's management, not to encroach on the company's interests, and to implement measures to compensate for diluted returns[117][118] - Zhengda Jingbian and its parties acting in concert have committed not to reduce their shareholdings in the company during the implementation period of the share increase plan announced on March 5, 2025, and within the legally stipulated period[118] Non-operational Fund Occupation by Controlling Shareholders and Other Related Parties The company identified and rectified non-operational fund occupation by a related party, Xinmei Bio, with the balance cleared by the end of the period - The company discovered the non-operational fund occupation by a related party during a self-inspection in Q1 2025, immediately implemented corrective measures, and completed the rectification in April 2025, with no further occurrences up to the end of the reporting period[119][120] Non-operational Fund Occupation by Related Parties | Related Party Name | Relationship | Occupation Period | Reason for Occupation | Opening Balance (CNY 10,000) | New Occupation Amount (CNY 10,000) | Total Repayment Amount (CNY 10,000) | Closing Balance (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinmei Bio | Other related party | Jan-Apr 2025 | The company paid state grid electricity fees on behalf of the related party for a leased property and was subsequently reimbursed | 9.37 | 66.19 | 75.56 | 0 | Irregular Guarantees The company had no irregular guarantees during the reporting period - The company had no irregular guarantees during the reporting period[121] Semi-annual Report Audit Status This semi-annual report has not been audited - This semi-annual report has not been audited[122] Changes and Handling of Matters Related to Non-standard Audit Opinions in the Previous Annual Report There were no matters related to non-standard audit opinions in the company's previous annual report - There were no matters related to non-standard audit opinions in the company's previous annual report[122] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[122] Material Litigation and Arbitration The company had no material litigation or arbitration matters during the reporting period - The company had no material litigation or arbitration matters during the reporting period[122] Alleged Violations, Penalties, and Rectifications Involving the Company, Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers There were no alleged violations, penalties, or rectifications involving the company or its key personnel during the reporting period - There were no alleged violations, penalties, or rectifications involving the company, its directors, supervisors, senior management, controlling shareholders, or actual controllers during the reporting period[122] Statement on the Integrity of the Company, its Controlling Shareholders, and Actual Controllers The company and its controlling shareholders maintained a good integrity record with no defaults or unfulfilled court judgments during the reporting period - During the reporting period, the company, its controlling shareholders, and actual controllers had no instances of dishonesty, such as failure to comply with effective court judgments or defaulting on significant debts[122] Material Related-party Transactions The company engaged in related-party transactions involving asset or equity acquisitions and sales during the reporting period - Related-party transactions involving asset or equity acquisitions and sales occurred during the reporting period; for details, refer to "Section 5, Related-party Transactions" in "Part XIV, Related Parties and Transactions" of the "Section 8 Financial Report"[123] Material Contracts and Their Performance The company had no托管, contracting, or leasing matters but provided significant guarantees for its subsidiaries, totaling 39.45% of its net assets - All guarantees were provided by the company for its wholly-owned subsidiaries' financing or between subsidiaries; as of the reporting period end, the guaranteed subsidiaries are operating normally, and the likelihood of the company needing to assume joint liability is low[127] - The company's external guarantee plans for 2024 and 2025 were approved by the shareholders' meeting, with a total limit not exceeding CNY 2.3 billion, which can be flexibly allocated among wholly-owned subsidiaries[127][128] Guarantees Provided by the Company to its Subsidiaries | Indicator | Amount (CNY) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries during the Reporting Period | 213,500,000.00 | | Outstanding Guarantee Balance for Subsidiaries at Period End (B) | 865,999,290.00 | | Total Guarantee Amount (A+B) | 865,999,290.00 | | Total Guarantee Amount as a Percentage of Company's Net Assets (%) | 39.45 | | Guarantees for Entities with Asset-Liability Ratio Over 70% (D) | 27,560,000.00 | Progress on the Use of Raised Funds This section details the use of convertible bond proceeds, including the extension and modification of the "Distributed PV Power Station Construction Project" - The company has extended the implementation period for the "Distributed PV Power Station Construction Project" to October 2025, without changing the planned investment amount; on August 6, 2025, the company approved the replacement of five original sub-projects with 15 new ones[130][131][132] - As of June 30, 2025, the fully grid-connected projects within the distributed PV power station initiative had a registered capacity of 90.68 MW and an actual installed capacity of 84.60 MW; partially grid-connected projects had a registered capacity of 24 MW, with 25.74 MW already installed[136] Overall Use of Raised Funds | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Raised Funds | 88,000.00 | | Net Raised Funds | 86,956.04 | | Cumulative Investment of Raised Funds as of Period End | 65,063.86 | | Investment Progress as of Period End (%) | 74.82 | | Raised Funds Invested This Year | 904.48 | Use of Funds for Investment Projects | Project Name | Planned Total Investment (CNY 10,000) | Actual Investment This Year (CNY 10,000) | Cumulative Investment as of Period End (CNY 10,000) | Investment Progress as of Period End (%) | Actual Benefits from Grid-connected Stations This Semi-annual Period (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Distributed PV Power Station Construction Project | 61,600.00 | 904.48 | 39,707.82 | 64.46 | 1,263.17 | | Repayment of Bank Loans | 25,356.04 | 0.00 | 25,356.04 | 100.00 | N/A | Explanation of Other Significant Matters The company had no other significant matters to report during the period - The company had no other significant matters during the reporting period[138] Changes in Share Capital and Shareholders Changes in Share Capital The company's total share capital increased slightly due to the conversion of 78 shares from convertible bonds during the reporting period - During the reporting period, CNY 1,000 of "Sunoren Convertible Bonds" were converted into 78 shares of the company's A-share stock[143] Share Capital Change Table | Item | Quantity Before Change (Shares) | Change (+, -) (Shares) | Quantity After Change (Shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | | Unrestricted Circulating Shares | 500,006,441 | 78 | 500,006,519 | 100.00 | | Total Shares | 500,006,441 | 78 | 500,006,519 | 100.00 | Shareholder Information This section discloses the total number of shareholders and the holdings of the top ten shareholders as of the reporting period end - Zhang Lizhong and Zhang Wenjuan are husband and wife, and their son is Zhang Zhenhao; the three signed an "Acting in Concert Agreement" on May 5, 2013, giving them substantial influence over shareholder and board resolutions, making them the company's controlling shareholders and actual controllers[147] Total Number of Common Shareholders at Period End | Indicator | Quantity (Households) | | :--- | :--- | | Total number of common shareholders at the end of the reporting period | 44,441 | Top Ten Shareholders' Holdings at Period End | Shareholder Name | Shares Held at Period End | Percentage (%) | Pledged, Marked, or Frozen Shares | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Haining Zhengda Jingbian Co, Ltd | 76,420,000 | 15.28 | 0 | Domestic Non-state-owned Legal Entity | | Zhang Lizhong | 49,280,000 | 9.86 | 20,000,000 | Domestic Natural Person | | Zhang Wenjuan | 30,200,000 | 6.04 | 0 | Domestic Natural Person | | Zhang Zhenhao | 28,560,000 | 5.71 | 0 | Domestic Natural Person | | Dai Jiankang | 21,006,400 | 4.20 | 13,000,000 | Domestic Natural Person | | Haining Qianchao Investment Co, Ltd | 12,600,000 | 2.52 | 0 | Domestic Non-state-owned Legal Entity | | Pan Guoqi | 8,100,000 | 1.62 | 0 | Domestic Natural Person | | Hangzhou Dinghui New Trend Equity Investment Partnership (LP) | 6,499,622 | 1.30 | 0 | Other | | Mo Hai | 4,661,455 | 0.93 | 0 | Domestic Natural Person | | Xue Yun | 4,512,306 | 0.90 | 4,512,306 | Domestic Natural Person | Information on Directors, Supervisors, and Senior Management There were no changes in the shareholdings of directors, supervisors, and senior management, and no equity incentives were granted during the period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management, and no equity incentives were implemented during the reporting period[149] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder or actual controller did not change during the reporting period - The company's controlling shareholder or actual controller did not change during the reporting period[149] Bond-related Matters Convertible Corporate Bonds This section details the issuance, conversion, and holder information of the "Sunoren Convertible Bond," as well as the company's credit status and repayment arrangements - On October 26, 2023, the company issued CNY 880 million of "Sunoren Convertible Bonds" to the public, with a six-year term, convertible into company shares starting May 6, 2024[152][153] - As of the end of the reporting period, the company's asset-liability ratio was 52.21%, an increase of 3.17 percentage points from 49.04% at the end of the previous year[161] - The company's corporate credit rating is "AA-" with a "stable" outlook, and the bond credit rating is "AA-", unchanged from the previous rating[161] - The company's operations are stable and its credit status is good; its prudent management and reasonable business strategy ensure stable operating cash flow, providing sufficient funds for future interest payments and bond redemption[162] Basic Information of Sunoren Convertible Bond | Convertible Corporate Bond Name | Sunoren Convertible Bond | | :--- | :--- | | Number of Bondholders at Period End | 9,411 | | Guarantor for the Company's Convertible Bonds | None | Convertible Bond Changes during the Reporting Period | Convertible Corporate Bond Name | Before Change (CNY) | Change (Conversion) (CNY) | After Change (CNY) | | :--- | :--- | :--- | :--- | | Sunoren Convertible Bond | 879,916,000 | 1,000 | 879,915,000 | Cumulative Conversion of Convertible Bonds during the Reporting Period | Convertible Corporate Bond Name | Sunoren Convertible Bond | | :--- | :--- | | Converted Amount during Reporting Period (CNY) | 1,000 | | Number of Shares Converted during Reporting Period | 78 | | Cumulative Number of Converted Shares | 6,519 | | Cumulative Converted Shares as % of Pre-conversion Total Shares | 0.0013 | | Unconverted Amount (CNY) | 879,915,000 | | Unconverted Bonds as % of Total Issuance | 99.9903 | Historical Adjustments to Conversion Price | Adjustment Date | Adjusted Conversion Price (CNY/Share) | Disclosure Date | Reason for Adjustment | | :--- | :--- | :--- | :--- | | May 17, 2024 | 12.95 | May 13, 2024 | Implementation of 2023 equity distribution | | May 30, 2025 | 12.75 | May 26, 2025 | Implementation of 2024 equity distribution | | Latest Conversion Price as of Period End | 12.75 | - | - | Financial Report Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[165] Financial Statements This section includes the consolidated and parent company financial statements for H1 2025, reflecting the company's financial position, performance, and cash flows Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 457,540,145.86 | 388,476,805.62 | | Accounts Receivable | 381,615,369.40 | 276,759,015.87 | | Inventory | 14,802,593.26 | 11,219,460.23 | | Total Current Assets | 897,505,032.53 | 720,225,180.84 | | Fixed Assets | 3,184,683,402.15 | 3,064,604,844.51 | | Total Assets | 4,593,812,197.72 | 4,297,315,567.63 | | Short-term Borrowings | 270,225,361.11 | 190,004,779.17 | | Bonds Payable | 807,475,954.02 | 781,456,899.12 | | Total Liabilities | 2,398,570,578.80 | 2,107,407,523.27 | | Total Equity Attributable to Parent Company | 2,195,241,618.92 | 2,189,908,044.36 | Key Data from Consolidated Income Statement (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 363,060,120.79 | 338,637,150.59 | | Total Operating Costs | 235,839,606.28 | 223,669,508.25 | | Total Profit | 125,575,618.33 | 120,215,321.46 | | Net Profit | 105,345,298.27 | 104,156,114.79 | | Net Profit Attributable to Parent Company Shareholders | 105,345,298.27 | 104,156,114.79 | | Basic Earnings Per Share (CNY/Share) | 0.21 | 0.21 | Key Data from Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 109,814,999.34 | 155,471,001.66 | | Net Cash Flow from Investing Activities | -147,144,655.24 | -207,589,628.12 | | Net Cash Flow from Financing Activities | 80,315,748.44 | -105,744,327.55 | | Net Increase in Cash and Cash Equivalents | 42,977,735.13 | -157,862,907.79 | Company Profile This section provides an overview of the company's establishment, capital, listing, industry, and main business activities - Zhejiang Sunoren Solar Technology Co, Ltd was established on July 9, 2008, with a registered capital of CNY 500 million, and its shares were listed on the Shanghai Stock Exchange on July 9, 2018[199] - The company is primarily engaged in distributed PV power generation, PV product sales, PV project-related services, and charging pile services[199] - During the reporting period, the company included 89 subsidiaries, such as Jiaxing Kejie, in its consolidated financial statements[199][200][201] Basis of Preparation for Financial Statements The company's financial statements are prepared on a going concern basis, with no material uncertainties affecting its continued operations - The company's financial statements are prepared on a going concern basis[202] - The company has no events or conditions that cast significant doubt on its ability to continue as a going concern for the next 12 months from the end of the reporting period[203] Significant Accounting Policies and Estimates This section details the company's adherence to accounting standards and outlines its key accounting policies and estimates across various financial areas - The financial statements prepared by the company comply with the requirements of the Corporate Accounting Standards, providing a true and complete view of the company's financial position, operating results, changes in equity, and cash flows[205] - The company's accounting year is from January 1 to December 31, and it uses a 12-month period to classify assets and liabilities as current or non-current due to its short operating cycle[206][207] - Effective December 6, 2024, the company adopted "CAS Interpretation No 18" regarding the accounting for non-separate performance obligation warranties, retrospectively adjusting comparative period information, which increased cost of sales by CNY 35,984.58 and decreased selling expenses by the same amount[295] Taxes This section discloses the company's main tax types and rates, as well as tax incentives enjoyed as a high-tech enterprise and small-scale profitable enterprise - The company, Haining Maolong, and Tongxiang Kelian are recognized as high-tech enterprises and are subject to a corporate income tax rate of 15% for the 2025 fiscal year[297][299] - Most other subsidiaries qualify as small-scale profitable enterprises, with their taxable income reduced to 25% and taxed at a rate of 20%[299][300] - The company and its subsidiaries enjoy a "three exemptions and three halves" corporate income tax incentive for their distributed PV power station projects, with income and costs accounted for on a per-project basis[300] Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | The output tax is calculated based on sales revenue from goods and taxable services as per tax law, with the difference after deducting creditable input tax being the VAT payable | 6%, 9%, 13% | | Property Tax | For value-based calculation, 1.2% of the residual value after a 30% deduction from the original property value; for rental-based calculation, 12% of the rental income | 1.2%, 12% | | Land Use Tax | Actual occupied land area | 6 CNY/square meter | | Urban Maintenance and Construction Tax | Actual paid turnover tax amount | 5%, 7% | | Education Surcharge | Actual paid turnover tax amount | 3% | | Local Education Surcharge | Actual paid turnover tax amount | 2% | | Corporate Income Tax | Taxable income | Note 1 | Notes to Consolidated Financial Statement Items This section provides detailed notes and analysis on various items in the consolidated financial statements, including balances, changes, and reasons - Other monetary funds at the end of the period include bank acceptance bill margins of CNY 56,477,249.27, residential PV loan margins of CNY 2,312,618.26, and third-party payment platform funds of CNY 90,849.99[302] Composition of Monetary Funds (June 30, 2025) | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Bank Deposits | 398,659,428.34 | 355,536,257.96 | | Other Monetary Funds | 58,880,717.52 | 32,940,547.66 | | Total | 457,540,145.86 | 388,476,805.62 | Aging Analysis of Accounts Receivable (June 30, 2025) | Aging | Closing Book Balance (CNY) | Opening Book Balance (CNY) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 245,216,196.66 | 191,165,866.18 | | 1 to 2 years | 129,599,237.64 | 98,029,080.41 | | 2 to 3 years | 26,857,091.89 | 2,355,552.47 | | 3 to 4 years | 1,381,222.92 | 1,809,226.14 | | 4 to 5 years | 211,168.38 | 294,559.97 | | Over 5 years | 113,789.34 | 152,703.17 | | Total Book Balance | 403,378,706.83 | 293,806,988.34 | Composition of Operating Revenue and Costs (Jan-Jun 2025) | Contract Category | Operating Revenue (CNY) | Operating Costs (CNY) | | :--- | :--- | :--- | | Distributed PV Power Generation | 317,344,984.37 | 111,953,177.88 | | PV Product Sales | 18,040,850.21 | 17,002,559.30 | | PV Power Station Project Services | 23,260,719.22 | 24,374,885.98 | | Charging Pile Services, Material Sales, and Other | 2,852,732.29 | 2,446,904.04 | | Total | 361,499,286.09 | 155,777,527.20 | R&D Expenses This section discloses the company's R&D expenditure for H1 2025, totaling CNY 15,212,158.08, primarily comprising employee compensation and R&D materials - The company's book R&D expenditure for the current period was CNY 15,212,158.08; after deducting CNY 4,993,609.27 transferred to cost of sales and CNY 1,539,253.67 to special payables, the net amount was CNY 8,679,295.14[485] R&D Expenses by Nature (Jan-Jun 2025) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 6,866,748.33 | 6,487,312.77 | | R&D Materials | 5,752,465.74 | 6,327,686.91 | | Depreciation and Amortization | 1,324,523.37 | 1,065,019.03 | | Outsourced Development and Professional Services | 881,669.23 | 816,013.09 | | Fuel and Power | 270,021.66 | 59,489.98 | | Other Expenses | 116,729.75 | 91,459.59 | | Total | 15,212,158.08 | 14,846,981.37 | Changes in Consolidation Scope The company's consolidation scope expanded with the establishment of two new subsidiaries and contracted due to the liquidation of one subsidiary Increase in Consolidation Scope | Company Name | Method of Equity Acquisition | Date of Equity Acquisition | Registered Capital | Ownership Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Sunhork Hong Kong | Investment Establishment | January 7, 2025 | HKD 10,000 | 100.00 | | Guizhou Sunoren | Investment Establishment | June 24, 2025 | CNY 8 million | 100.00 | Decrease in Consolidation Scope | Company Name | Method of Equity Disposal | Date of Equity Disposal | | :--- | :--- | :--- | | Ji'an Sunoren | Liquidation | May 16, 2025 | Interests in Other Entities This section discloses the composition of the company's corporate group, including subsidiaries within the consolidation scope and key financial information of a major associate - The company includes 89 subsidiaries, such as Jiaxing Kejie, within the scope of its consolidated financial statements[490] Basic Information of Major Subsidiaries | Subsidiary Name | Registered Capital (CNY 10,000) | Shareholding (%) (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | | Sunoren Trading | 500 | 100.00 | Establishment | | Tongxiang Kelian | 26,000 | 100.00 | Establishment | | Haining Maolong | 15,000 | 100.00 | Business combination under common control | Key Financial Information of Major Associate Haining Economic Development Zone Sunoren Energy Co, Ltd (Jan-Jun 2025) | Item | Closing Balance/Current Period Amount (CNY) | Opening Balance/Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Assets | 40,021,160.59 | 22,134,145.45 | | Total Liabilities | 22,819,032.20 | 10,995,300.62 | | Equity Attributable to Parent Company Shareholders | 17,202,128.39 | 11,138,844.83 | | Operating Revenue | 2,308,927.10 | 307,626.73 | | Net Profit | 1,065,318.39 | 128,243.36 | Government Grants This section discloses the company's government grant liabilities and grants recognized in current income, detailing both asset-related and income-related grants - Income-related government grants mainly include CNY 212,368.14 for distributed PV power generation tariff subsidies, CNY 500,000.00 in special financial subsidies and awards, and CNY 107,966.45 for employment stability and job creation subsidies[501][502] Government Grant Liability Items (June 30, 2025) | Financial Statement Item | Opening Balance (CNY) | New Grants This Period (CNY) | Transferred to Other Income (CNY) | Other Changes This Period (CNY) | Closing Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income - Asset-related | 16,503,548.70 | 0 | 931,862.84 | 0 | 15,571,685.86 | Asset-related | | Special Payables | 2,167,329.29 | 0 | 0 | 1,539,253.67 | 628,075.62 | Income-related | | Total | 18,670,877.99 | 0 | 931,862.84 | 1,539,253.67 | 16,199,761.48 | - | Government Grants Recognized in Current Income (Jan-Jun 2025) | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Asset-related | 931,862.84 | 549,588.18 | | Income-related | 820,334.59 | 11,218,890.10 | | Total | 1,752,197.43 | 11,768,478.28 | Risks Related to Financial Instruments This section outlines the company's exposure to credit, liquidity, and market risks, and describes the strategies used to manage them - The company's risk management objective is to balance risk and return, minimizing the negative impact of risks on its operating performance to maximize shareholder value[503] - Credit risk arises mainly from cash and receivables; the company manages this by depositing funds in highly-rated financial institutions and conducting regular credit assessments of customers[505] - Liquidity risk is controlled by using a mix of financing instruments like notes and bank loans, and by optimizing the financing structure with a combination of long-term and short-term financing[506] - Interest rate risk is mainly associated with the company's floating-rate bank loans; as of June 30, 2025, with CNY 687,867,090.00 in floating-rate loans, a hypothetical 50 basis point change in interest rates would not have a material impact on the company's profit or equity[509][510] - Foreign exchange risk is not significant as the company operates mainly in mainland China with transactions denominated in CNY[510] Financial Liabilities by Remaining Maturity (Closing Balance) | Item | Book Value (CNY) | Undiscounted Contractual Amount (CNY) | Within 1 Year (CNY) | 1-3 Years (CNY) | Over 3 Years (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Borrowings | 1,213,067,398.84 | 1,305,725,107.48 | 529,001,833.58 | 385,220,577.50 | 391,502,696.40 | | Notes Payable | 103,154,498.54 | 103,154,498.54 | 103,154,498.54 | 0 | 0 | | Bonds Payable | 807,475,954.02 | 1,055,972,330.72 | 10,340,005.72 | 27,863,975.00 | 1,017,768,350.00 | | Lease Liabilities (incl within 1 year) | 89,100,820.69 | 127,838,629.85 | 7,726,758.74 | 15,382,335.74 | 104,729,535.37 | Fair Value Disclosures This section discloses the fair value of assets and liabilities measured at fair value, primarily trading financial assets and receivables financing - For notes receivable, fair value is determined by their face value; for equity investments, the company uses the investment cost as a reasonable estimate of fair value, considering the investee's stable operating and financial conditions[516] Fair Value of Assets and Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | | Trading Financial Assets | 10,000,000.00 | 10,000,000.00 | | Of which: Equity Instrument Investments | 10,000,000.00 | 10,000,000.00 | | Receivables Financing | 8,874,052.11 | 8,874,052.11 | | Total Assets Continuously Measured at Fair Value | 18,874,052.11 | 18,874,052.11 | Related Parties and Transactions This section discloses information on the company's subsidiaries, associates, and other related parties, as well as related-party transactions during the period - Details of the company's subsidiaries can be found in the notes on interests in other entities in this financial report[518] - The company's significant joint venture or associate is Haining Economic Development Zone Sunoren Energy Co, Ltd[519] - Other related parties include Zhejiang Xinmei Biotechnology Co, Ltd (an affiliate of Zhang Zhenhao)[519][520] Related-party Transactions for Sale of Goods/Provision of Services (Jan-Jun 2025)