新中港(605162) - 2025 Q2 - 季度财报

Important Notice This report is unaudited, and the company's board of directors, supervisory board, and senior management declare the truthfulness, accuracy, and completeness of its content, while cautioning investors about the investment risks of forward-looking statements - This semi-annual report is unaudited[5] - Forward-looking statements regarding future plans in this report are subject to uncertainties and do not constitute substantial commitments; investors should be aware of investment risks[6] Section I Definitions This section defines key terms used in the report, including company names, major related parties, and reporting period, ensuring accurate interpretation - "Company," "the Company," "Xinzonggang" refer to Zhejiang Xinzonggang Thermal Power Co., Ltd[12] - "Reporting Period" refers to January 1, 2025, to June 30, 2025; "End of Reporting Period" refers to June 30, 2025[12] Section II Company Profile and Key Financial Indicators Zhejiang Xinzonggang Thermal Power Co., Ltd. discloses its basic information, contact details, stock overview, and key accounting data and financial indicators for H1 2025, showing a year-on-year decrease in operating revenue and net profit, but a significant increase in net cash flow from operating activities Company Information The company's Chinese name is Zhejiang Xinzonggang Thermal Power Co., Ltd., abbreviated as Xinzonggang, with Xie Baijun as its legal representative - Company Chinese name: Zhejiang Xinzonggang Thermal Power Co., Ltd., abbreviation: Xinzonggang[14] - Legal representative of the company: Xie Baijun[14] Contact Person and Information The company's Board Secretary is Mi Zhichun, and the Securities Affairs Representative is Cai Qingqing, both located at No. 28 Luodong Road, Yanhu Street, Shengzhou City, Zhejiang Province - Board Secretary: Mi Zhichun, Securities Affairs Representative: Cai Qingqing[15] - Contact address: No. 28 Luodong Road, Yanhu Street, Shengzhou City, Zhejiang Province[15] Brief Introduction to Changes in Basic Information The company's registered and office addresses are both No. 28 Luodong Road, Yanhu Street, Shengzhou City, Zhejiang Province, with no historical changes to the registered address - The company's registered address and office address are both No. 28 Luodong Road, Yanhu Street, Shengzhou City, Zhejiang Province[16] - There have been no historical changes to the company's registered address[16] Brief Introduction to Changes in Information Disclosure and Document Storage Locations The company's designated newspapers for information disclosure are Shanghai Securities News, China Securities Journal, Securities Times, and Securities Daily, with the semi-annual report published on www.sse.com.cn - The company's designated newspapers for information disclosure are Shanghai Securities News, China Securities Journal, Securities Times, and Securities Daily[17] - The website address for publishing the semi-annual report is www.sse.com.cn[17](index=17&type=chunk) Company Stock Overview The company's A-shares are listed on the Shanghai Stock Exchange, with the stock abbreviation "Xinzonggang" and stock code 605162 - The company's stock type is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation "Xinzonggang" and stock code 605162[19] Key Accounting Data and Financial Indicators In H1 2025, the company's operating revenue decreased by 17.74% year-on-year, and net profit attributable to shareholders decreased by 4.62%, while net cash flow from operating activities increased by 134.50%, mainly due to reduced cash payments for goods and services 2025 H1 Key Accounting Data and Year-on-Year Changes | Indicator | Current Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 364,384,135.73 | 442,953,554.64 | -17.74 | | Total Profit | 80,969,915.86 | 82,657,641.07 | -2.04 | | Net Profit Attributable to Shareholders of Listed Company | 61,810,409.91 | 64,801,322.39 | -4.62 | | Net Cash Flow from Operating Activities | 205,039,915.24 | 87,438,168.94 | 134.50 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,308,132,962.07 | 1,318,257,198.93 | -0.77 | | Total Assets (Period-end) | 1,828,620,969.69 | 1,885,230,514.78 | -3.00 | 2025 H1 Key Financial Indicators and Year-on-Year Changes | Indicator | Current Period (Jan-Jun) | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.15 | 0.16 | -6.25 | | Diluted Earnings Per Share (yuan/share) | 0.15 | 0.16 | -6.25 | | Basic Earnings Per Share After Non-Recurring Gains and Losses (yuan/share) | 0.14 | 0.16 | -12.50 | | Weighted Average Return on Net Assets (%) | 4.58 | 5.12 | Decrease of 0.54 percentage points | | Weighted Average Return on Net Assets After Non-Recurring Gains and Losses (%) | 4.23 | 4.94 | Decrease of 0.71 percentage points | - Net cash flow from operating activities increased by 134.50% year-on-year, primarily due to a decrease in cash paid for goods and services in the current period[21] Non-Recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for H1 2025 amounted to 4,718,927.41 yuan, primarily comprising government grants, fair value changes in financial assets, and other non-operating income 2025 H1 Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -7,389.97 | | Government grants recognized in current profit or loss | 1,910,149.98 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and investment gains or losses from disposal of financial assets and liabilities | 778,295.72 | | Other non-operating income and expenses apart from the above | 3,600,107.42 | | Other gains and losses that meet the definition of non-recurring gains and losses | 55,429.35 | | Less: Income tax impact | 1,603,579.06 | | Impact on minority interests (after tax) | 14,086.03 | | Total | 4,718,927.41 | Section III Management Discussion and Analysis Management elaborates on the policy environment and development trends of the cogeneration and energy storage industries, reviews H1 2025 operating results, including reasons for declining revenue and net profit, and outlines progress in operational efficiency, customer expansion, team building, and key project construction, while analyzing core competitive advantages and macroeconomic, market, and operational risks Explanation of the Company's Industry and Main Business During the Reporting Period The company operates in the cogeneration and energy storage industries, both encouraged by national policies; cogeneration aligns with carbon peak and neutrality goals, while new energy storage, a key technology for new power systems, has broad market prospects; the company's main business includes steam, electricity, compressed air products, and grid-side energy storage, with revenue primarily from sales of these products Company's Industry The company's cogeneration industry is a nationally encouraged sector, aligning with green and low-carbon development trends; the energy storage industry, a key technology for new power systems, is policy-supported and experiencing rapid growth in installed capacity - The company operates in "cogeneration" within the "electricity, heat, gas, and water production and supply industry," which is a nationally encouraged sector aligned with green and low-carbon development trends[27] - New energy storage, as a key technology supporting the construction of new power systems, is crucial for ensuring the safe and stable operation of the power system, with national policies supporting its development[30] - In H1 2025, the national installed capacity of new energy storage reached 94.91 million kW / 222 million kWh, an increase of approximately 29% compared to the end of 2024[30] Company's Main Business Operations The company's main business includes the production and sale of steam, electricity, and compressed air, as well as grid-side energy storage; steam and compressed air primarily serve industrial users, electricity is sold to the State Grid, and energy storage projects generate revenue through charge-discharge price differences and ancillary services - The company's steam products primarily serve industrial users in the park, for production in industries such as papermaking, printing and dyeing, pharmaceuticals, chemicals, and food[31] - The company's electricity products are sold directly to the State Grid Corporation, with all electricity generated by cogeneration units given priority for grid connection based on the "heat-determined electricity" principle[31] - The Shengzhou Economic Development Zone Energy Storage Demonstration Project is a grid-side 100MW/220MWh new energy storage project, generating revenue through charge-discharge price differences and expected to benefit from future electricity ancillary services and spot market policies[32][33] Main Performance Drivers The company's performance is primarily driven by steam, electricity, and compressed air sales, with steam and power generation volumes dependent on downstream user heat loads; energy storage power stations generate revenue through electricity energy transactions - The company's steam product production and supply volume primarily depend on downstream user heat loads; electricity generation volume also depends on user heat loads, following a "heat-determined electricity" production model[33] - Energy storage power stations engage in electricity energy transactions by connecting to designated grid points according to contracts with State Grid power supply companies, generating revenue through charge-discharge price differences[33] Discussion and Analysis of Operating Performance In H1 2025, the company's operating revenue and net profit decreased year-on-year, mainly due to lower steam sales and prices; the company actively responded by improving unit operation management, expanding heating users, strengthening team building, and focusing on quality service, while advancing key projects such as the Unit 2 upgrade, co-firing solid waste/biomass boiler modifications, and new heating pipeline construction Production and Operation Status In H1, the company achieved operating revenue of 364.38 million yuan, a year-on-year decrease of 17.74%, and net profit of 61.81 million yuan, a year-on-year decrease of 4.62%; declining steam sales volume and price were the main reasons, with the company responding by improving thermal efficiency, expanding new users, strengthening team building, and enhancing service quality - During the reporting period, the company achieved operating revenue of 364.38 million yuan, a year-on-year decrease of 17.74%; net profit attributable to shareholders of the listed company was 61.81 million yuan, a year-on-year decrease of 4.62%[34] - Steam sales volume was 1.3282 million tons, a year-on-year decrease of 7.50%; steam sales revenue was 264.38 million yuan, a year-on-year decrease of 17.57%, primarily due to the relocation and shutdown of printing and dyeing heat users and a 11.53% year-on-year decrease in steam prices[34] - The company's overall thermal efficiency reached 87.95%, actively expanding new heating users such as Zhejiang Qingtong Technology and Zhejiang Juwei Polymer Materials, and successfully connecting with pharmaceutical and chemical enterprises like Zhejiang Helicheng Pharmaceutical[34][35] Key Project Construction Status The company is actively advancing the Unit 2 equipment upgrade project, which is supported by the third batch of ultra-long-term special national bonds in 2024; the co-firing solid waste and biomass boiler modification project has completed the renovation of boilers 2, 3, and 7; the new heating pipeline project to Pukou area of Shengzhou Economic Development Zone, a raised fund investment project, is under construction and will significantly expand heating capacity upon completion - The Unit 2 equipment upgrade project has been included in the third batch of ultra-long-term special national bond support projects for 2024, and its completion will improve thermal efficiency and heating capacity[36] - The co-firing solid waste and biomass boiler modification project has completed the renovation of boilers 2, 3, and 7, with boiler 5 expected to be completed in September 2025; during the reporting period, a cumulative total of 7,473.00 tons of biomass and solid waste were co-fired[37] - The "New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone" is a convertible corporate bond raised fund investment project, which upon completion will provide heating to Shaoxing Fordy Battery Co., Ltd., Mosang Phase III, and "Laomi" area printing and dyeing users, expanding the heating scale[37] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its low-carbon, low-energy consumption, high thermal efficiency, and high exergy efficiency production model, ultra-low emission environmental advantages, stable customer base, and continuous technological innovation and experienced management team in cogeneration, compressed air, and energy storage - The company's indicators such as overall thermal efficiency, standard coal consumption per unit of heat supply, and standard coal consumption per unit of power supply surpass advanced values in Zhejiang Province's local standards, ranking among the top in the province[38] - The company is the first cogeneration plant in Zhejiang Province to pass ultra-low emission acceptance for its entire facility, with environmental emission levels meeting national standards and no secondary pollution such as desulfurization wastewater or white plume smoke[39] - The company possesses stable customer resources, including 6 listed companies or their subsidiaries, and the "New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone" will further expand its heating scale[39] - The company holds technological innovation and management advantages in areas such as dual-temperature separation circulating fluidized bed boilers, high-temperature and high-pressure circulating fluidized bed boilers, subcritical parameter back-pressure heating units, air compressor projects, and new energy storage power stations[40][41] Main Operating Performance During the Reporting Period During this period, the company's operating revenue and costs both decreased, primarily influenced by coal-heat linkage heating prices and coal consumption and prices; financial expenses increased due to reduced interest income, while R&D expenses decreased; the asset and liability structure changed, with decreases in monetary funds and inventories, and increases in financial assets held for trading, construction in progress, and intangible assets; the company actively advanced raised fund projects and increased investments in bank structured deposits Main Business Analysis The company's operating revenue decreased by 17.74% year-on-year, mainly due to lower coal-heat linkage heating prices, reduced heating volume, and decreased coal trade; operating costs decreased by 22.00% year-on-year, primarily due to reduced coal consumption and lower prices; financial expenses increased by 33.09% year-on-year, mainly due to reduced interest income; R&D expenses decreased by 36.11% year-on-year, mainly due to reduced direct material input and equipment depreciation for R&D projects Analysis of Changes in Key Financial Statement Items | Item | Current Period (yuan) | Prior Year Period (yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 364,384,135.73 | 442,953,554.64 | -17.74 | Decrease in coal-heat linkage heating prices, reduced heating volume, decrease in coal trade | | Operating Cost | 249,207,808.49 | 319,515,376.70 | -22.00 | Decrease in coal consumption and coal prices | | Selling Expenses | 825,463.55 | 754,732.33 | 9.37 | Increase in sales personnel salaries | | Administrative Expenses | 18,389,364.29 | 19,206,656.69 | -4.26 | - | | Financial Expenses | 7,784,695.84 | 5,849,379.96 | 33.09 | Decrease in interest income | | Research and Development Expenses | 11,731,501.68 | 18,361,996.07 | -36.11 | Decrease in direct material input for R&D projects and depreciation of R&D equipment | | Net Cash Flow from Operating Activities | 205,039,915.24 | 87,438,168.94 | 134.50 | Decrease in cash paid for goods and services | Analysis of Assets and Liabilities Period-end monetary funds and inventories significantly decreased, mainly due to increased purchases of bank structured deposits and reduced coal inventory; financial assets held for trading, construction in progress, and intangible assets substantially increased, reflecting the company's increased investment in structured deposits and project construction; on the liability side, accounts payable and non-current liabilities due within one year decreased, while deferred income significantly grew due to increased government grants Analysis of Changes in Assets and Liabilities (Unit: yuan) | Item Name | Current Period End (yuan) | Proportion of Total Assets at Current Period End (%) | Prior Year End (yuan) | Proportion of Total Assets at Prior Year End (%) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 186,081,943.91 | 10.18 | 371,364,565.57 | 19.70 | -49.89 | Mainly due to increased purchases of bank structured deposits in the current period | | Financial Assets Held for Trading | 250,279,849.32 | 13.69 | 100,268,005.14 | 5.32 | 149.61 | Mainly due to increased purchases of bank structured deposits in the current period | | Inventories | 49,024,682.75 | 2.68 | 100,714,301.18 | 5.34 | -51.32 | Mainly due to reduced coal inventory and in-transit quantities, and lower coal prices in the current period | | Construction in Progress | 44,918,780.79 | 2.46 | 1,075,429.53 | 0.06 | 4,076.82 | Mainly due to increased investment in the Unit 2 upgrade project in the current period | | Intangible Assets | 88,544,008.13 | 4.84 | 66,224,776.79 | 3.51 | 33.70 | Mainly due to increased land transfer fees paid for land lease renewal in the current period | | Accounts Payable | 36,251,782.34 | 1.98 | 86,605,419.82 | 4.59 | -58.14 | Mainly due to payment of equipment payables in the current period | | Non-current Liabilities Due Within One Year | 5,889,155.56 | 0.32 | 20,972,396.56 | 1.11 | -71.92 | Mainly due to repayment of bank loans in the current period | | Deferred Income | 54,300,487.52 | 2.97 | 26,950,207.50 | 1.43 | 101.48 | Mainly due to increased government grants related to assets received in the current period | Analysis of Investment Status The company had no significant equity investments in this period, but non-equity investments included outlays for the Unit 2 equipment upgrade project, the efficiency, cleanliness, and intelligence improvement project, and the new heating pipeline project to Pukou area of Shengzhou Economic Development Zone; the period-end balance of financial assets measured at fair value (structured deposits) significantly increased, reflecting the company's increased investment in wealth management products Major Non-Equity Investment Projects (Unit: 10,000 yuan) | Project Name | Estimated Investment | Amount Invested in Current Period | Cumulative Actual Investment | Project Progress (%) | Funding Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Unit 2 Equipment Upgrade Project | 17,050.00 | 4,170.54 | 4,247.89 | 24.91 | Ultra-long-term national bonds, self-raised funds | | Efficiency, Cleanliness, and Intelligence Improvement Project | 2,290.00 | 273.58 | 2,376.17 | Note 1 | Convertible bond raised funds, self-raised funds | | New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone | 6,342.46 | 229.55 | 239.90 | 3.78 | Convertible bond raised funds, self-raised funds | Financial Assets Measured at Fair Value (Unit: yuan) | Asset Category | Beginning Balance | Amount Purchased in Current Period | Amount Sold/Redeemed in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | Structured Deposits | 100,268,005.14 | 760,000,000.00 | 610,000,000.00 | 250,279,849.32 | Analysis of Major Holding and Participating Companies The company's major subsidiaries include Energy Technology (coal trade), Zhejiang Zaixinzhonggang (RDF fuel rod production and sales), and Energy Storage Technology (power generation, transmission, and distribution services); among them, Energy Storage Technology has total assets of 265.87 million yuan and a net profit of 4.34 million yuan, significantly impacting the company's net profit Major Holding Subsidiary Financial Data (Unit: 10,000 yuan) | Company Name | Company Type | Main Business | Registered Capital (10,000 yuan) | Shareholding Ratio (%) | 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) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Energy Technology | Subsidiary | Coal Trade | 6,000 | 100% | 6,408.44 | 6,313.31 | 18.81 | -260.54 | -196.24 | | Zhejiang Zaixinzhonggang | Subsidiary | Production and Sales of RDF Fuel Rods | 1,000 | 51% | 1,989.03 | 390.99 | 374.44 | -82.28 | -62.20 | | Energy Storage Technology | Subsidiary | Power Generation, Transmission, and Distribution Services | 7,000 | 100% | 26,587.39 | 7,970.02 | 1,722.11 | 564.06 | 434.31 | Other Disclosures The company faces multiple risks, including macroeconomic fluctuations, changes in industrial policies, concentrated operating regions, fluctuations in downstream customer demand, volatility in raw material coal prices, bad debt losses from accounts receivable, and environmental and safety production risks Potential Risks Key risks include macroeconomic fluctuations and industrial policy changes (e.g., electricity market reform, dual control of carbon emissions), concentrated business regions, volatile downstream customer demand, coal price fluctuations, accounts receivable bad debts, and environmental and safety accident risks in cogeneration production - Risks of macroeconomic fluctuations and industrial policy changes: Economic cycles, coal prices, electricity prices, steam prices, environmental policies, and electricity system reforms may affect the company's operating performance[55] - Risk of concentrated operating regions: The regional nature of cogeneration business leads to the company's operations being concentrated within the industrial park, and changes in market conditions could lead to a decrease in heating volume[55] - Risk of raw material price fluctuations: Coal price volatility significantly impacts the gross profit margin of the company's main business, and heating price adjustments may have a time lag[56] - Environmental and safety production risks: The complex production process of cogeneration enterprises carries the possibility of safety accidents[56] Section IV Corporate Governance, Environment, and Society This section discloses changes in the company's directors and senior management, with Chief Engineer Wang Junliang resigning due to health reasons but remaining employed by the company; the company will not distribute profits or convert capital reserves into share capital for the semi-annual period; the company is included in the list of enterprises required to disclose environmental information by law, with a provided inquiry index Changes in Directors, Supervisors, and Senior Management On June 16, 2025, Mr. Wang Junliang, the Chief Engineer, resigned from his position due to health reasons but remains employed by the company - On June 16, 2025, Chief Engineer Mr. Wang Junliang resigned from his position due to health reasons, but remains employed by the company after his resignation[59] Profit Distribution or Capital Reserve Conversion Plan The company will not conduct profit distribution or capital reserve conversion into share capital for the semi-annual period, with zero bonus shares, dividends, and conversion shares per 10 shares - The company's proposed semi-annual profit distribution or capital reserve conversion plan is not applicable, meaning no distribution or conversion will occur[60] - The number of bonus shares, dividends (tax inclusive), and conversion shares per 10 shares are all 0[60] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company is included in the list of enterprises required to disclose environmental information by law, and its environmental information disclosure report can be accessed on the Zhejiang Provincial Department of Ecology and Environment website - The company has been included in the list of enterprises required to disclose environmental information by law, and the inquiry index for its environmental information disclosure report is the Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[61] Section V Significant Matters This section details the fulfillment of commitments made by the company's controlling shareholder, actual controllers, and directors, supervisors, and senior management during the initial public offering and refinancing, including share lock-up, avoidance of horizontal competition, regulation of related-party transactions, reduction intentions, and immediate return compensation, all of which have been timely and strictly fulfilled; it also discloses the overall use of raised funds and details of investment projects, indicating that some projects have been completed or are in progress, and some raised fund investment projects have been changed Fulfillment of Commitments The company's controlling shareholder, actual controllers, and directors, supervisors, and senior management have timely and strictly fulfilled all commitments made during the initial public offering and refinancing, including share lock-up, avoidance of horizontal competition, regulation of related-party transactions, reduction intentions, and immediate return compensation - The company's controlling shareholder, Yuesheng Group, and co-actual controllers Xie Baijun and Xie Xun, along with other committing parties, have timely and strictly fulfilled all commitments during the reporting period, including share lock-up, avoidance of horizontal competition, resolution of related-party transactions, reduction intentions, and compensation for diluted immediate returns[64] - Controlling shareholder Yuesheng Group committed not to actively reduce its holdings of the company's shares in any manner within 12 months from the date of listing and circulation of the initial public offering restricted shares[81] Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controllers maintained good integrity, with no suspected violations, penalties, or rectification requirements - During the reporting period, the company, its controlling shareholder, and actual controllers maintained good integrity[83] Explanation of Progress in the Use of Raised Funds The company's overall use of raised funds is progressing smoothly, with a cumulative investment of 310.71 million yuan as of the end of the reporting period, representing an investment progress of 86.37%; some raised fund projects have been completed or are in progress, and certain projects have been modified, with all uninvested raised funds and interest income from the "Heating Pipeline and Supporting Pipeline Project to Mosang Modern Cocoon Industry" reallocated to the "New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone" Overall Use of Raised Funds As of the end of the reporting period, the company's net raised funds amounted to 359.72 million yuan, with a cumulative investment of 310.71 million yuan, representing an investment progress of 86.37% Overall Use of Raised Funds (Unit: 10,000 yuan) | Indicator | Total Raised Funds | Net Raised Funds (1) | Total Committed Investment (2) | Total Invested Raised Funds (4) | Cumulative Investment Progress at Period End (%) (6) | | :--- | :--- | :--- | :--- | :--- | :--- | | Amount | 36,913.50 | 35,971.75 | 35,971.75 | 31,070.58 | 86.37 | Details of Raised Fund Investment Projects Raised fund projects include the 80,000 Nm³/h air compressor project, the heating pipeline and supporting pipeline project to Mosang Modern Cocoon Industry, the new heating pipeline project to Pukou area of Shengzhou Economic Development Zone, the efficiency, cleanliness, and intelligence improvement project, and repayment of bank loans and supplementary working capital; the heating pipeline project to Mosang Modern Cocoon Industry has largely met demand, and its remaining raised funds have been reallocated to the new heating pipeline project to Pukou area of Shengzhou Economic Development Zone Details of Raised Fund Investment Projects (Unit: 10,000 yuan) | Project Name | Planned Total Investment of Raised Funds (1) | Cumulative Invested Raised Funds at Period End (2) | Cumulative Investment Progress at Period End (%) (3) | | :--- | :--- | :--- | :--- | | Heating Pipeline and Supporting Pipeline Project to Mosang Modern Cocoon Industry | 928.63 | 932.54 | 100.42 | | New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone | 4,348.86 | 467.20 | 10.74 | | Efficiency, Cleanliness, and Intelligence Improvement Project | 2,197.31 | 2,225.29 | 101.27 | | 80,000 Nm³/h Air Compressor Project | 19,564.56 | 18,348.44 | 93.78 | | Repayment of Bank Loans and Supplementary Working Capital | 9,095.05 | 9,097.11 | 100.02 | - On January 16, 2025, the company approved the "Proposal on Changing Part of the Raised Fund Investment Projects," reallocating all uninvested raised funds and accumulated interest income totaling 43.4886 million yuan from the "Heating Pipeline and Supporting Pipeline Project to Mosang Modern Cocoon Industry" to the "New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone"[90][91] Section VI Share Changes and Shareholder Information This section discloses a slight increase in the company's share capital due to convertible bond conversion and lists the top ten shareholders' holdings as of the end of the reporting period, with controlling shareholder Zhejiang Yuesheng Group Co., Ltd. holding 74.66% of the shares Share Capital Changes During the reporting period, the company's share capital slightly increased due to the conversion of "Xingang Convertible Bonds," with 20,767 shares converted, bringing the total number of shares to 400,532,847 Share Change Table (Unit: shares) | | Quantity Before This Change | Subtotal of Increase/Decrease in This Change (+, -) | Quantity After This Change | | :--- | :--- | :--- | :--- | | II. Unrestricted Shares | 400,512,080 | 20,767 | 400,532,847 | | III. Total Shares | 400,512,080 | 20,767 | 400,532,847 | - During the reporting period, 184,000 yuan of "Xingang Convertible Bonds" were converted into the company's ordinary shares, with 20,767 shares converted[97] Shareholder Information As of the end of the reporting period, the company had 20,412 ordinary shareholders; controlling shareholder Zhejiang Yuesheng Group Co., Ltd. held 299,021,050 shares, accounting for 74.66% of the total share capital - As of the end of the reporting period, the total number of ordinary shareholders was 20,412[98] Top Ten Shareholders' Holdings (As of the end of the reporting period) | Shareholder Name | Period-End Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Zhejiang Yuesheng Group Co., Ltd. | 299,021,050 | 74.66 | Domestic Non-State-Owned Legal Person | | Li Wei | 3,015,300 | 0.75 | Domestic Natural Person | | BARCLAYS BANK PLC | 1,216,342 | 0.30 | Foreign Legal Person | | Wang Cheng | 1,012,200 | 0.25 | Domestic Natural Person | | Ou Na | 900,000 | 0.22 | Domestic Natural Person | | CITIC Securities Asset Management (Hong Kong) Limited - Client Funds | 799,668 | 0.20 | Other | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | 697,977 | 0.17 | Foreign Legal Person | | Wang Xiaoling | 677,000 | 0.17 | Domestic Natural Person | | Zhang Yixin | 618,000 | 0.15 | Domestic Natural Person | | Hu Gang | 596,710 | 0.15 | Domestic Natural Person | Section VII Bond-Related Information This section details the issuance, listing, holder information, and conversion changes of the company's convertible corporate bond "Xingang Convertible Bond"; during the reporting period, some bonds were converted into shares, and the conversion price was adjusted multiple times due to equity distributions; the company's main credit rating is AA-, with a stable outlook, and the bond guarantee method was changed to a full, irrevocable joint and several liability guarantee Convertible Corporate Bonds The company's issued "Xingang Convertible Bonds" are listed and traded, with some bonds converted into shares during the reporting period, and the conversion price adjusted multiple times due to equity distributions; the company's main credit rating is AA- with a stable outlook, indicating strong solvency; the bond guarantee method has been changed from equity pledge to a full, irrevocable joint and several liability guarantee provided by controlling shareholder Yuesheng Group - "Xingang Convertible Bonds" were publicly issued on March 8, 2023, for 369.135 million yuan, and listed for trading on the Shanghai Stock Exchange on May 5, 2023[103] - During the reporting period, 184,000 yuan of "Xingang Convertible Bonds" were converted into the company's ordinary shares, with 20,767 shares converted, representing 0.0204% of the company's total issued shares before conversion[108] Historical Adjustments to Conversion Price (Unit: yuan/share) | Conversion Price Adjustment Date | Adjusted Conversion Price | Explanation of Conversion Price Adjustment | | :--- | :--- | :--- | | June 5, 2023 | 9.03 | 2022 Annual Equity Distribution | | May 8, 2024 | 8.85 | 2023 Annual Equity Distribution | | June 12, 2025 | 8.67 | 2024 Annual Equity Distribution | | Latest Conversion Price as of the End of This Reporting Period | 8.67 | - | - The company's main credit rating is AA-, with a stable outlook, indicating good credit standing and strong solvency[111] - The guarantee method for "Xingang Convertible Bonds" has been changed from equity pledge to a full, irrevocable joint and several liability guarantee provided by controlling shareholder Yuesheng Group[113] Section VIII Financial Report This section presents the company's consolidated and parent company financial statements for H1 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, along with detailed notes on accounting policies, taxation, and various financial statement items, comprehensively reflecting the company's financial position, operating results, and cash flow Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively presenting the company's financial position, operating results, and cash flow Consolidated Balance Sheet Key Data (As of June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 186,081,943.91 | 371,364,565.57 | -49.89 | | Financial Assets Held for Trading | 250,279,849.32 | 100,268,005.14 | 149.61 | | Inventories | 49,024,682.75 | 100,714,301.18 | -51.32 | | Construction in Progress | 44,918,780.79 | 1,075,429.53 | 4,076.82 | | Intangible Assets | 88,544,008.13 | 66,224,776.79 | 33.70 | | Deferred Income | 54,300,487.52 | 26,950,207.50 | 101.48 | | Total Liabilities | 518,572,158.87 | 564,752,701.93 | -8.17 | | Total Assets | 1,828,620,969.69 | 1,885,230,514.78 | -3.00 | Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Operating Revenue | 364,384,135.73 | 442,953,554.64 | | Operating Cost | 249,207,808.49 | 319,515,376.70 | | Total Profit | 80,969,915.86 | 82,657,641.07 | | Net Profit Attributable to Parent Company Shareholders | 61,810,409.91 | 64,801,322.39 | Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 205,039,915.24 | 87,438,168.94 | | Net Cash Flow from Investing Activities | -300,783,801.10 | -165,016,695.06 | | Net Cash Flow from Financing Activities | -89,538,735.80 | -71,551,372.09 | | Net Increase in Cash and Cash Equivalents | -185,282,621.66 | -149,129,898.21 | Company's Basic Information Zhejiang Xinzonggang Thermal Power Co., Ltd., formerly Shengzhou Xinzonggang Thermal Power Co., Ltd., was established through an overall change in 2017; the company was listed in 2021 and issued convertible bonds in 2023; its main business is electricity and heat production and supply, with primary products being electricity, steam, and compressed air - The company was registered with the Shaoxing Administration for Market Regulation on December 28, 2017, with a registered capital of 320.3608 million yuan[142] - The company's shares were listed and traded on the Shanghai Stock Exchange on July 7, 2021[143] - On March 8, 2023, the company issued convertible corporate bonds totaling 369.135 million yuan; as of June 30, 2025, a cumulative total of 732,000 yuan of convertible bonds had been converted into company shares, with current share capital at 400.532847 million yuan[143] - The company belongs to the electricity and heat production and supply industry, with a business scope of producing and selling electricity and heat; its main products are electricity, steam, and compressed air[144] Basis for Preparation of Financial Statements The company prepares its financial statements on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, with no significant doubts about the going concern assumption - The company prepares its financial statements on a going concern basis, in accordance with the "Enterprise Accounting Standards" promulgated by the Ministry of Finance and the "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions on Financial Reports (Revised 2023)" issued by the China Securities Regulatory Commission, based on actual transactions and events[145] - There are no matters or circumstances that would cause significant doubt about the company's ability to continue as a going concern within 12 months from the end of the reporting period[146] Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as financial instruments, notes receivable, accounts receivable, inventories, contract assets, fixed assets, intangible assets, borrowing costs, employee compensation, government grants, deferred income tax, leases, and revenue recognition - The company classifies financial assets based on its business model for managing financial assets and the contractual cash flow characteristics of the financial assets into those measured at amortized cost, those measured at fair value with changes recognized in other comprehensive income, and those measured at fair value with changes recognized in profit or loss for the current period[165] - The company uses the transfer of control as the criterion for judging the timing of revenue recognition, recognizing revenue when the customer obtains control of the relevant goods[234] - Borrowing costs incurred by the company that are directly attributable to the acquisition, construction, or production of qualifying assets are capitalized and included in the cost of the relevant assets[216] Taxation The company's main taxes include Value-Added Tax (rates of 5%, 9%, 13%), Urban Maintenance and Construction Tax (rate of 7%), Enterprise Income Tax (rate of 25%), Property Tax (rates of 1.2%, 12%), Education Surcharge (rate of 3%), and Local Education Surcharge (rate of 2%) Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value added during the sale of goods or provision of taxable services | 5%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Enterprise Income Tax | Taxable income | 25% | | Property Tax | Assessed on value: 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; Assessed on rent: 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | Notes to Consolidated Financial Statement Items This section provides detailed notes on various asset, liability, owners' equity, revenue, cost, and expense items in the consolidated financial statements, including period-end balances, period-beginning balances, reasons for changes, and relevant accounting treatment methods, offering specific supporting information for financial statement data - The period-end balance of monetary funds was 186,081,943.91 yuan, a decrease of 49.89% from the beginning of the period, mainly due to increased purchases of bank structured deposits[48][253] - The period-end balance of financial assets held for trading was 250,279,849.32 yuan, an increase of 149.61% from the beginning of the period, mainly due to increased purchases of bank structured deposits[48][254] - The period-end balance of construction in progress was 44,918,780.79 yuan, an increase of 4,076.82% from the beginning of the period, mainly due to increased investment in the Unit 2 upgrade project[48][309] - The period-end balance of deferred income was 54,300,487.52 yuan, an increase of 101.48% from the beginning of the period, mainly due to increased government grants related to assets received in the current period[49][352] Research and Development Expenses The company's R&D expenses for H1 2025 amounted to 11,731,501.68 yuan, all expensed, primarily comprising employee compensation, direct input costs, and depreciation and amortization R&D Expenses by Nature of Expense (Unit: yuan) | Item | Amount for Current Period | Amount for Prior Period | | :--- | :--- | :--- | | Employee Compensation | 4,623,408.05 | 5,476,596.93 | | Direct Materials | 3,702,695.18 | 6,418,942.90 | | Depreciation and Amortization | 3,405,398.45 | 6,219,562.15 | | Other | - | 246,894.09 | | Total | 11,731,501.68 | 18,361,996.07 | | Of which: Expensed R&D Expenditure | 11,731,501.68 | 18,361,996.07 | | Capitalized R&D Expenditure | - | - | Interests in Other Entities The company's interests in subsidiaries include Energy Technology, Zhejiang Zaixinzhonggang, and Energy Storage Technology, engaged in coal trade, RDF fuel rod production and sales, and new energy technology businesses, with shareholding ratios of 100%, 51%, and 100%, respectively Composition of the Enterprise Group (Unit: 10,000 yuan) | Subsidiary Name | Main Operating Location | Registered Capital (10,000 yuan) | Business Nature | Direct Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Energy Technology | Hangzhou, Zhejiang | 6,000 | Wholesale and Retail Trade | 100.00 | | Zhejiang Zaixinzhonggang | Shaoxing, Zhejiang | 1,000 | Solid Waste Management | 51.00 | | Energy Storage Technology | Shaoxing, Zhejiang | 7,000 | New Energy Technology | 100.00 | Government Grants The company received new government grants of 29 million yuan during the reporting period, with the period-end balance of government grants recognized as deferred income totaling 54,300,487.52 yuan; government grants recognized in current profit or loss for this period amounted to 1,910,149.98 yuan, including both income-related and asset-related grants Liability Items Involving Government Grants (Unit: yuan) | Financial Statement Item | Beginning Balance | New Grants in Current Period | Transferred to Other Income in Current Period | Ending Balance | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 26,950,207.50 | 29,000,000.00 | 1,649,719.98 | 54,300,487.52 | Asset-related | Government Grants Recognized in Current Profit or Loss (Unit: yuan) | Type | Amount for Current Period | Amount for Prior Period | | :--- | :--- | :--- | | Income-related | 260,430.00 | 818,000.00 | | Asset-related | 1,649,719.98 | 1,578,169.15 | | Total | 1,910,149.98 | 2,396,169.15 | Risks Related to Financial Instruments The company faces credit risk, market risk (including exchange rate risk, interest rate risk, and other price risks), and liquidity risk in its daily operations; the company has established risk management policies, employing measures such as diversified investments, credit record monitoring, and cash flow forecasting to manage these risks; the company's main credit rating is AA-, with a stable outlook - The company's main financial instrument risks include credit risk, market risk (foreign exchange risk, interest rate risk, and other price risks), and liquidity risk[409] - The company diversifies financial instrument risks through appropriate diversified investments and business portfolios, and reduces concentration risks in a single industry, specific region, or specific counterparty by formulating corresponding risk management policies[410] Impact of Interest Rate Changes on Net Profit (Unit: 10,000 yuan) | Interest Rate Change | Impact on Net Profit (10,000 yuan) Current Period | | :--- | :--- | | Increase by 100 basis points | -368.40 | | Decrease by 100 basis points | 368.40 | - The company monitors its capital structure based on its asset-liability ratio (28.36%), aiming to ensure continuous operation and provide returns to shareholders[418] Disclosure of Fair Value The company's total financial assets measured at fair value at period-end amounted to 250,279,849.32 yuan, primarily structured deposits within financial assets held for trading, with their fair value determined by the closing price on the balance sheet date; the carrying amounts of financial assets and liabilities not measured at fair value are very close to their fair values Period-End Fair Value of Assets and Liabilities Measured at Fair Value (Unit: yuan) | Item | Level 1 Fair Value Measurement | Total | | :--- | :--- | :--- | | I. Recurring Fair Value Measurement | 250,279,849.32 | 250,279,849.32 | | (I) Financial Assets Held for Trading | 250,279,849.32 | 250,279,849.32 | | 1. Financial assets measured at fair value with changes recognized in current profit or loss | 250,279,849.32 | 250,279,849.32 | | (3) Derivative financial assets | 250,279,849.32 | 250,279,849.32 | | Total assets measured at recurring fair value | 250,279,849.32 | 250,279,849.32 | - For financial assets held for trading with active market prices, their fair value is determined by the closing price on the balance sheet date[421] - The carrying amounts of the company's financial assets and liabilities not measured at fair value are very close to their fair values[422] Related Parties and Related Party Transactions The company's controlling shareholder is Zhejiang Yuesheng Group Co., Ltd., with the ultimate controlling parties being Xie Baijun and Xie Xun, father and son; during the reporting period, the company engaged in transactions with related parties, including purchases and sales of goods, provision and acceptance of services, related-party leases, and related-party guarantees; controlling shareholder Yuesheng Group provides a full, irrevocable joint and several liability guarantee for the company's convertible corporate bonds - The ultimate controlling parties of the company are Xie Baijun and Xie Xun, father and son, who indirectly hold 46.9253% of the company's shares through Yuesheng Group[424] Purchases of Goods/Acceptance of Services (Unit: yuan) | Related Party | Related Transaction Content | Amount for Current Period | | :--- | :--- | :--- | | Yuesheng Metrology Company | Weighing Fees | 221,227.21 | | Zhejiang Zaixin Wufechengshi Environmental Protection Technology Co., Ltd. | Textile Waste | 53,418.95 | Related-Party Lease Situation as Lessee (Unit: yuan) | Lessor Name | Type of Leased Asset | Rent Paid in Current Period | Interest Expense on Lease Liabilities in Current Period | | :--- | :--- | :--- | :--- | | Yuesheng Group | Buildings and Structures | 505,690.00 | 23,212.73 | - The company's controlling shareholder, Yuesheng Group, provides a full, irrevocable joint and several liability guarantee for the convertible corporate bonds issued by the company, covering the principal and interest of the convertible bonds, liquidated damages, compensation for damages, and reasonable expenses for realizing creditor's rights[432][433] Commitments and Contingencies The company has signed lease contracts that are not yet performed or fully performed, with future minimum lease payments totaling 36,618,288.33 yuan; additionally, the use of raised funds indicates that investment projects are progressing as planned, with some funds having been adjusted Minimum Lease Payments for Irrevocable Operating Leases (Unit: yuan) | Item | Period-End Amount | | :--- | :--- | | Minimum lease payments for irrevocable operating leases: | 36,618,288.33 | | 1st year after balance sheet date | 2,631,086.00 | | 2nd year after balance sheet date | 2,631,086.00 | | 3rd year after balance sheet date | 2,631,086.00 | | Subsequent years | 28,725,030.33 | Commitments for Use of Raised Funds (Unit: 10,000 yuan) | Committed Investment Project | Committed Investment Amount | Cumulative Investment Amount as of Period End | | :--- | :--- | :--- | | 80,000 Nm³/h Air Compressor Project | 19,564.56 | 18,348.44 | | Heating Pipeline and Supporting Pipeline Project to Mosang Modern Cocoon Industry | 928.63 | 932.54 | | New Heating Pipeline Project to Pukou Area of Shengzhou Economic Development Zone | 4,348.86 | 467.20 | | Efficiency, Cleanliness, and Intelligence Improvement Project | 2,197.31 | 2,225.29 | | Repayment of Bank Loans and Supplementary Working Capital | 9,095.05 | 9,097.11 | | Total | 36,134.41 | 31,070.58 | Notes to Key Items in Parent Company Financial Statements This section provides detailed notes on key items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income, reflecting the parent company's financial position and operating results - The parent company's period-end balance of accounts receivable was 157,430,567.95 yuan, with 99.97% of this amount being within 1 year of aging[147][450] - The parent company's period-end balance of other receivables was 155,409,178.46 yuan, primarily temporary loans to subsidiaries[456][461] - The parent company's period-end balance of long-term equity investments was 135,832,225.93 yuan, mainly including investments in Energy Technology, Zhejiang Zaixinzhonggang, and Energy Storage Technology[471] - The parent company's operating revenue for the current period was 347,438,505.43 yuan, and operating cost was 238,225,622.38 yuan, primarily derived from cogeneration business[473][475] Section XX Supplementary Information This section provides detailed breakdowns of non-recurring gains and losses, along with key financial indicators such as weighted average return on net assets and earnings per share, further supplementing the details of the company's financial performance Schedule of Non-Recurring Gains and Losses for the Current Period The company's total non-recurring gains and losses for H1 2025 amounted to 4,718,927.41 yuan, primarily comprising government grants, fair value changes in financial assets, and other non-operating income 2025 H1 Non-Recurring Gains and Losses Details (Unit: yuan) | Item | Amount | | :--- | :--- | | Gains or losses from disposal of non-current assets | -7,389.97 | | Government grants recognized in current profit or loss | 1,910,149.98 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and investment gains or losses from disposal of financial assets and liabilities | 778,295.72 | | Other non-operating income and expenses apart from the above | 3,600,107.42 | | Other gains and losses that meet the definition of non-recurring gains and losses | 55,429.35 | | Less: Income tax impact | 1,603,579.06 | | Impact on minority interests (after tax) | 14,086.03 | | Total | 4,718,927.41 | Return on Net Assets and Earnings Per Share The company's weighted average return on net assets attributable to ordinary shareholders for H1 2025 was 4.58%, with basic earnings per share at 0.15 yuan/share Return on Net Assets and Earnings Per Share (Jan-Jun 2025) | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders of the company | 4.58 | 0.15 | 0.15 | | Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses | 4.23 | 0.14 | 0.14 |