Part I Important Notes, Table of Contents, and Definitions Important Notes The company's board, supervisory board, and senior management guarantee the accuracy and completeness of the semi-annual report, with all directors attending the review meeting - The company's board, supervisory board, and senior management declare the report content is true, accurate, and complete4 - All directors attended the board meeting to review this semi-annual report5 Risk Factors The company faces multiple risks including food safety, dairy cattle disease prevention, raw material price fluctuations, milk impairment, intensified industry competition, bakery chain operations, force majeure, and environmental issues, with corresponding measures in place - Food safety risks: main products (dairy, bakery) directly relate to consumer health, with potential for safety incidents due to quality management loopholes6 - Dairy cattle disease prevention risks: cattle epidemics may affect milk yield and quality, company has established hygiene and epidemic prevention procedures7 - Raw material price fluctuation risks: prices of raw milk, flour, and other major raw materials are influenced by market supply and demand, company controls costs through public bidding and optimizing utilization89 - Milk impairment risks due to market fluctuations: a downward trend in raw milk prices may lead to inventory impairment, company will optimize inventory and upgrade product structure10 - Intensified industry competition and innovation risks: fierce market competition and changing consumer demand necessitate consolidating regional advantages and increasing R&D innovation11 - Bakery chain operation risks: faces market saturation, taste changes, logistics, and capital challenges, company will strengthen market research, optimize product structure, and improve supply chain management13 - Force majeure risks: natural disasters and public health events may affect production and operations, company has emergency plans14 - Environmental risks: dairy production and ranch operations generate pollutants, company will increase environmental investment and improve treatment facilities15 Profit Distribution Plan The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - Company plans not to distribute cash dividends16 - Company plans not to issue bonus shares or convert capital reserves into share capital16 Table of Contents This section lists the structured table of contents for the semi-annual report, covering important notes, company profile, MD&A, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data - The report includes nine main chapters, covering comprehensive information on company operations, finance, governance, and risks18 List of Reference Documents Lists reference documents available for investor inspection, including financial statements signed and sealed by the legal representative, chief accountant, and head of accounting - Reference documents include signed and sealed financial statements, the original audit report, original drafts of documents disclosed on CSRC-designated websites, and the original semi-annual report text20212223 - Reference documents are available at the company's Securities Affairs Department24 Definitions This section provides definitions for common terms and abbreviations used in the report to ensure clarity and consistency of information disclosure - Defines key entities such as "the Company," "Maiquer Shares," "Controlling Shareholder," and "Subsidiary"25 - Clarifies regulatory bodies like "CSRC," "SZSE," and timeframes like "Reporting Period"25 Part II Company Profile and Key Financial Indicators Company Profile Maiquer Group Co., Ltd. is listed on the Shenzhen Stock Exchange, stock code 002719, with Li Yong as its legal representative - Company stock abbreviation: Maiquer, stock code: 00271927 - Stock exchange listed on: Shenzhen Stock Exchange27 - Company legal representative: Li Yong27 Contact Person and Information Provides contact information for the company's Board Secretary, Yao Xue, including address, phone, fax, and email - Board Secretary: Yao Xue, contact address: Maiquer Avenue, Changji City, Changji Prefecture, Xinjiang28 - Phone: 0994-6568908, Fax: 0994-2516699, Email: bod@maiquer.com28 Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, or information disclosure website and media names; specific information can be found in the 2024 annual report - Company contact information remained unchanged during the reporting period29 - Information disclosure and availability locations remained unchanged during the reporting period30 Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue decreased by 4.49% year-on-year, but net profit attributable to shareholders achieved significant growth, turning from loss to profit, increasing by 102.40%; net cash flow from operating activities decreased by 54.33% year-on-year Key Accounting Data and Financial Indicators (Units: Yuan) | Indicator | Current Reporting Period (Yuan) | Prior Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 294,305,568.27 | 308,153,023.61 | -4.49% | | Net Profit Attributable to Shareholders of Listed Company | 1,546,640.59 | -64,392,426.65 | 102.40% | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | -5,864,512.41 | -53,668,117.96 | 89.07% | | Net Cash Flow from Operating Activities | 3,533,171.16 | 7,736,231.89 | -54.33% | | Basic Earnings Per Share (Yuan/share) | 0.0089 | -0.3698 | 102.41% | | Diluted Earnings Per Share (Yuan/share) | 0.0089 | -0.3698 | 102.41% | | Weighted Average Return on Net Assets | 0.67% | -15.20% | 15.87% | | Period-End Indicators | Current Period-End (Yuan) | Prior Year-End (Yuan) | Change from Prior Year-End | | Total Assets | 1,075,280,071.02 | 1,088,050,966.80 | -1.17% | | Net Assets Attributable to Shareholders of Listed Company | 226,802,694.14 | 225,256,053.55 | 0.69% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial reports prepared under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - Company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period33 - Company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period34 Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 7,411,153.00 Yuan, primarily from disposal gains of non-current assets and government subsidies Non-Recurring Gains and Losses and Amounts (Units: Yuan) | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets (including reversal of asset impairment provisions) | 242,171.29 | Disposal gains from productive biological assets | | Government subsidies recognized in current profit/loss (excluding those closely related to normal operations, compliant with national policies, enjoyed by fixed standards, and having a sustained impact on company's profit/loss) | 6,435,853.64 | Government subsidies | | Other non-operating income and expenses apart from the above | 715,944.30 | | | Less: Income tax impact | -17,183.77 | | | Impact on minority interests (after tax) | 0.00 | | | Total | 7,411,153.00 | | Part III Management Discussion and Analysis Main Businesses During the Reporting Period As a modern food processing enterprise, the company's core business covers the manufacturing, distribution, and chain store operations of dairy and bakery products, supplemented by seasonal foods and frozen beverages, achieving industrial synergy through a "ranch-dairy processing-bakery production-terminal retail" full industry chain layout - Company's core business includes manufacturing, distribution, and chain store operations of dairy and bakery products, supplemented by seasonal foods and frozen beverages39 - Company forms a full industry chain layout from "a drop of milk through primary, secondary, and tertiary industries" via dairy farming, dairy factories, bakery factories, and chain stores39 - Main sales models include distribution, direct sales, vehicle sales, with channels covering KA stores, distributors, key accounts, online O2O, and offline stores40 - Bakery product revenue increased by 4.61% year-on-year, gross margin increased by 1.16%; dairy product revenue decreased by 15.62% year-on-year, gross margin decreased by 29.82%41 - As of June 30, 2025, the company owns 225 bakery chain stores, with 197 in Zhejiang and 28 in Xinjiang44 - Company's production model is primarily "production based on sales," with bakery products combining centralized factory production and in-store baking, and mooncakes produced in concentrated phases46474950 - During the reporting period, food manufacturing sales volume decreased by 19.95% year-on-year, production volume decreased by 19.33% year-on-year, and inventory decreased by 34.17% year-on-year51 Analysis of Core Competencies Leveraging its geographical advantage in Xinjiang's golden milk source belt and a full industry chain closed-loop model, the company has built a "dairy + bakery" dual-driven diversified product matrix, strengthened R&D innovation through a national-level technology center, benefited from Western Development policies, and established an efficient direct sales network and digital operation system to achieve deep business synergy and sustainable development - Possesses Xinjiang Tianshan North Slope golden milk source belt, 50,000 Holstein cows, excellent milk quality, and a "ranch-dairy processing-bakery production-terminal retail" full industry chain closed-loop5253 - "Maiquer" brand has high recognition in Xinjiang, building a "dairy + bakery" dual-driven model, developing over 400 products, with "Tianshan Ranch" high-end series as flagship products54 - Owns a national-recognized enterprise technology center and health research institute, leads national-level scientific research projects, with patented technologies widely applied across all segments, achieving cross-domain technical synergy like "dairy sterilization technology feeding back into bakery preservation"55 - Benefits from Western Development policies, enjoying tax incentives and special subsidies; relies on Xinjiang's unique raw material resources to build a short-radius supply chain, forming a cost advantage56 - Bakery business centers on direct chain stores, forming a three-tier system of "flagship stores + commercial district stores + community convenience stores"; enhances operational efficiency and user repurchase rates through centralized kitchen production, dynamic replenishment systems, full cold chain monitoring, and a membership system5758 - Dairy and bakery businesses have overlapping customers, shortening joint new product development cycles, with deep-processed dairy products (cream, butter) enhancing bakery product competitiveness, forming deep synergistic effects59 Analysis of Main Business During the reporting period, the company's main business operating revenue decreased by 4.49% year-on-year, but operating costs decreased more significantly, leading to an improved gross margin; dairy product revenue declined, while bakery food revenue grew, and revenue from markets outside Xinjiang increased Year-on-Year Changes in Key Financial Data (Units: Yuan) | Indicator | Current Reporting Period (Yuan) | Prior Period (Yuan) | Year-on-Year Change | Change Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 294,305,568.27 | 308,153,023.61 | -4.49% | | | Operating Cost | 219,793,531.38 | 263,238,391.53 | -16.50% | | | Selling Expenses | 52,363,595.52 | 53,693,108.12 | -2.48% | | | Administrative Expenses | 27,244,336.86 | 32,879,003.24 | -17.14% | | | Financial Expenses | 2,560,351.91 | 3,452,002.13 | -25.83% | | | Income Tax Expense | -17,183.77 | 2,631,068.22 | -100.65% | Tax refund based on tax policy | | R&D Investment | 2,263,957.34 | 2,292,086.89 | -1.23% | | | Net Cash Flow from Operating Activities | 3,533,171.16 | 7,736,231.89 | -54.33% | Gradual repayment of prior year debts led to reduced cash flow | | Net Cash Flow from Investing Activities | -7,594,162.22 | -16,258,382.61 | -53.29% | Reduced construction investment | | Net Cash Flow from Financing Activities | -3,824,532.40 | -27,078,691.86 | -85.88% | Financial institution loans have been gradually repaid | | Net Increase in Cash and Cash Equivalents | -7,885,523.46 | -35,600,842.58 | -77.85% | Strict control over cash flow payments and collections, and gradual repayment of prior year debts | - Company's operating revenue composition: food manufacturing accounts for 100%, with bakery food revenue accounting for 52.59% (up 4.61% year-on-year) and dairy product revenue accounting for 30.31% (down 15.62% year-on-year)65 - By region, operating revenue outside Xinjiang accounted for 72.65%, up 2.05% year-on-year; operating revenue within Xinjiang accounted for 27.35%, down 18.39% year-on-year65 - In selling expenses, promotion fees increased by 51.9% year-on-year, and freight and handling fees increased by 55.3% year-on-year, mainly due to increased promotional material costs67 Analysis of Non-Main Business During the reporting period, the company had no non-main business analysis items - Company had no non-main business analysis during the reporting period68 Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets slightly decreased, but the proportion of fixed assets increased, while short-term borrowings and contract liabilities also increased; some assets, such as monetary funds, fixed assets, intangible assets, and productive biological assets, were restricted Significant Changes in Asset Composition (Units: Yuan) | Item | Current Period-End (Yuan) | Percentage of Total Assets | Prior Year-End (Yuan) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 29,339,630.71 | 2.73% | 31,744,354.54 | 2.50% | 0.23% | | Accounts Receivable | 85,917,566.33 | 7.99% | 96,321,526.22 | 7.59% | 0.40% | | Inventories | 42,592,663.49 | 3.96% | 54,482,543.37 | 4.29% | -0.33% | | Fixed Assets | 502,241,760.87 | 46.71% | 523,683,925.65 | 41.25% | 5.46% | | Construction in Progress | 75,969,762.33 | 7.07% | 71,612,131.16 | 5.64% | 1.43% | | Right-of-Use Assets | 42,428,605.39 | 3.95% | 41,648,927.09 | 3.28% | 0.67% | | Short-term Borrowings | 50,000,000.00 | 4.65% | 17,518,487.67 | 1.38% | 3.27% | | Contract Liabilities | 117,985,784.37 | 10.97% | 112,825,844.81 | 8.89% | 2.08% | | Long-term Borrowings | 36,859,000.00 | 3.43% | 37,359,000.00 | 2.94% | 0.49% | | Lease Liabilities | 18,279,028.72 | 1.70% | 16,398,897.44 | 1.29% | 0.41% | - Restricted assets at period-end: monetary funds 8,677,241.40 Yuan (acceptance bill deposits and frozen funds), fixed assets 76,014,194.32 Yuan (mortgaged to financial institutions), intangible assets 5,456,677.40 Yuan (pledged to financial institutions), productive biological assets 18,662,127.18 Yuan (pledged to financial institutions)71 Analysis of Investment Status During the reporting period, the company did not undertake significant equity investments, non-equity investments, securities investments, or derivative investments, nor did it utilize raised funds - Company had no securities investments during the reporting period72 - Company had no derivative investments during the reporting period73 - Company had no utilization of raised funds during the reporting period74 Disposal of Major Assets and Equity During the reporting period, the company did not dispose of any major assets or equity - Company did not dispose of major assets during the reporting period75 - Company did not dispose of major equity during the reporting period76 Analysis of Major Holding and Participating Companies The company's main subsidiaries include Xinjiang Western Ecological Animal Husbandry Co., Ltd. and Xinjiang Maiquer Food Co., Ltd.; two new subsidiaries, Xinjiang Yunzhichuanglian Information Technology Service Co., Ltd. and Xinjiang Tianshan Yunmu Bakery Co., Ltd., were established during the reporting period but currently have no significant impact Major Subsidiaries and Participating Companies with over 10% Impact on Company's Net Profit (Units: Yuan) | Company Name | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Maiquer (Xinjiang) Investment Co., Ltd. | Investment activities; supply chain management services; marketing planning | 8,000,000 | 16,064,687.19 | -1,135,711.92 | | Xinjiang Western Ecological Animal Husbandry Co., Ltd. | Livestock breeding, livestock machinery manufacturing | 150,000,000 | 317,433,741.81 | 1,304,604.32 | - Two new subsidiaries, Xinjiang Yunzhichuanglian Information Technology Service Co., Ltd. and Xinjiang Tianshan Yunmu Bakery Co., Ltd., were established during the reporting period, with no current impact77 Risks Faced by the Company and Countermeasures Management detailed eight major risks faced by the company, including food safety, dairy cattle disease prevention, raw material price fluctuations, milk impairment, industry competition, bakery chain operations, force majeure, and environmental issues, reiterating specific countermeasures to ensure the company's sustained healthy development - Food safety risks: Company will continue to improve its quality control system, strengthening management of raw material procurement, production processing, storage, and sales78 - Dairy cattle disease prevention risks: Company has gradually established and improved hygiene and epidemic prevention procedures, adopting measures like isolation, disinfection, and vaccination to prevent epidemics79 - Raw material price fluctuation risks: Company controls costs through public bidding, improving raw material utilization, optimizing packaging materials, and establishing long-term cooperative relationships with suppliers80 - Milk impairment risks due to market fluctuations: Company will optimize inventory management, strengthen cooperation with suppliers, promote product structure upgrades, and monitor industry policies81 - Intensified industry competition and innovation risks: Company will consolidate regional market advantages, optimize marketing networks, strengthen brand building, and increase R&D investment82 - Bakery chain operation risks: Company will strengthen market research, optimize product structure, and improve supply chain management84 - Force majeure risks: Company has formulated and regularly drills force majeure emergency plans to ensure rapid response and production recovery85 - Environmental risks: Company will increase environmental capital investment, improve sewage and manure treatment facilities, ensuring environmental compliance86 Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - Company has not formulated a market value management system87 - Company has not disclosed a valuation enhancement plan87 Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - Company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan87 Part IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, Vice General Manager Li Jingqian resigned due to personal reasons - Vice General Manager Li Jingqian resigned on January 1, 2025, due to personal reasons89 Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period90 Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company did not implement any equity incentive plans, employee stock ownership plans, or other employee incentive measures - Company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period91 Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - Listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law92 Social Responsibility Maiquer Group Co., Ltd. is long-committed to social responsibility, actively participating in poverty alleviation, disaster relief, military support, and various charitable activities, earning multiple honors - Company actively donates funds and materials to disaster-stricken areas, maintains social stability, assists vulnerable groups, and supports military families92 - Company has been awarded honors such as "China Outstanding Contribution Unit Award" and "Advanced Enterprise in Xinjiang Development and Construction"92 - Company regularly donates milk, tangyuan, and zongzi to nursing homes and children's welfare institutions during traditional festivals92 Part V Significant Matters Commitments During the reporting period, there were no commitments made by the company's actual controller, shareholders, related parties, acquirers, or the company itself that had been fulfilled or were overdue - During the reporting period, there were no commitments made by the company's actual controller, shareholders, related parties, acquirers, or the company itself that had been fulfilled or were overdue as of the end of the reporting period94 Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties During the reporting period, there were no non-operating funds occupied by the controlling shareholder and other related parties from the listed company - During the reporting period, there were no non-operating funds occupied by the controlling shareholder and other related parties from the listed company95 Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - Company had no irregular external guarantees during the reporting period96 Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - Company's semi-annual report was not audited97 Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Reporting Period This item is not applicable as the company's semi-annual report was not audited - Not applicable98 Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year This item is not applicable as the company's semi-annual report was not audited - Not applicable98 Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy or reorganization matters - Company did not experience any bankruptcy or reorganization matters during the reporting period98 Litigation Matters During the reporting period, the company had no major litigation or arbitration matters, but there were multiple other lawsuits not meeting the major disclosure threshold, with a total involved amount of approximately 81.0694 million Yuan, some ongoing, some in execution or completed - Company had no major litigation or arbitration matters in this reporting period99 Summary of Other Litigation (Arbitration) Cases Not Meeting Major Disclosure Threshold (Units: 10,000 Yuan) | Litigation (Arbitration) Basic Information | Involved Amount (10,000 Yuan) | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Execution Status | | :--- | :--- | :--- | :--- | :--- | | Other litigation (arbitration) cases not meeting major disclosure threshold | 1,739.1 | Ongoing | In court acceptance and trial stage, no significant impact on the company | Not yet executed | | Other litigation (arbitration) cases not meeting major disclosure threshold | 6,367.84 | Execution stage | In litigation execution stage, no significant impact on the company | Executed | | Other litigation (arbitration) cases not meeting major disclosure threshold | 174.47 | Completed stage | No significant impact on the company | Completed | Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - Company had no penalties or rectification situations during the reporting period102 Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The controlling shareholder, Xinjiang Maiquer Group Co., Ltd., had all of its 17,170,000 shares (9.86% of total share capital) frozen and pledged due to debt contract disputes Integrity Status of Controlling Shareholder | Shareholder Name | Is Controlling Shareholder | Shares Held (shares) | Percentage of Total Share Capital | Total Frozen Shares (shares) | Percentage of Shares Held | Percentage of Total Share Capital | Freezing/Pledging Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Maiquer Group Co., Ltd. | Yes | 17,170,000 | 9.86% | 17,170,000 | 100% | 9.86% | Debt contract disputes | Significant Related Party Transactions During the reporting period, the company did not engage in significant related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, nor did it have related party creditor-debtor relationships or dealings with affiliated financial companies - Company had no related party transactions related to daily operations during the reporting period104 - Company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period105 - Company had no related party transactions involving joint external investments during the reporting period106 - Company had no related party creditor-debtor relationships during the reporting period107 - Company had no deposits, loans, credit lines, or other financial business with affiliated financial companies or related parties108 - Company's controlled financial company had no deposits, loans, credit lines, or other financial business with related parties109 - Company had no other significant related party transactions during the reporting period110 Significant Contracts and Their Performance During the reporting period, the company had no significant contracts related to trusteeship, contracting, leasing, major guarantees, or entrusted wealth management - Company had no trusteeship situations during the reporting period111 - Company had no contracting situations during the reporting period112 - Company had no leasing situations during the reporting period113 - Company had no major guarantee situations during the reporting period114 - Company had no entrusted wealth management during the reporting period115 - Company had no other significant contracts during the reporting period117 Explanation of Other Significant Matters During the reporting period, the company had no other significant matters requiring explanation - Company had no other significant matters requiring explanation during the reporting period118 Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters - Company's subsidiaries had no significant matters during the reporting period119 Part VI Share Changes and Shareholder Information Share Change Status During the reporting period, the company's restricted shares increased by 11,200 shares, and unrestricted shares decreased by 11,200 shares, primarily due to an increase in restricted shares held by senior executive Li Jingqian Share Change Status (Units: Shares) | Share Type | Before Change (shares) | Change (shares) | After Change (shares) | Percentage | | :--- | :--- | :--- | :--- | :--- | | Restricted Shares | 12,267,162 | +11,200 | 12,278,362 | 7.05% | | Unrestricted Shares | 161,872,295 | -11,200 | 161,861,095 | 92.95% | | Total Shares | 174,139,457 | 0 | 174,139,457 | 100.00% | - Li Jingqian's restricted shares increased by 11,200 shares in this period, with 56,000 shares restricted at period-end, due to senior executive lock-up shares124 Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing activities - Company had no securities issuance or listing activities during the reporting period125 Shareholder Numbers and Shareholding Status At the end of the reporting period, the company had a total of 24,116 common shareholders; the controlling shareholder, Xinjiang Maiquer Group Co., Ltd., held 9.86% of shares, all of which were frozen and pledged - Total common shareholders at period-end: 24,116126 Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders (Units: Shares) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Shares Held at Period-End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Maiquer Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 9.86% | 17,170,000 | 1,600,000 | 15,570,000 | Frozen 17,170,000 shares, Pledged 17,170,000 shares | | Changji Prefecture State-Owned Assets Investment and Management Group Co., Ltd. | State-Owned Legal Person | 8.13% | 14,155,969 | 0 | 14,155,969 | Not applicable | | Li Yong | Domestic Natural Person | 6.45% | 11,223,843 | 8,417,882 | 2,805,961 | Pledged 11,200,000 shares, Frozen 23,843 shares | - Xinjiang Maiquer Group Co., Ltd. is the controlling shareholder, Li Yong is the company's chairman and actual controller; Li Yuhu, Li Yong, Li Gang, Wang Cuixian are parties acting in concert128 Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management - Company's directors, supervisors, and senior management had no changes in shareholdings during the reporting period131 Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - Company's controlling shareholder did not change during the reporting period133 - Company's actual controller did not change during the reporting period133 Preferred Share Information During the reporting period, the company had no preferred shares - Company had no preferred shares during the reporting period134 Part VII Bond-Related Information Bond-Related Information During the reporting period, the company had no bond-related information - Company had no bond-related information during the reporting period136 Part VIII Financial Report Audit Report The company's semi-annual financial report was not audited - Company's semi-annual financial report was not audited138 Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively reflecting the financial position and operating results at the end of the reporting period Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 1,075,280,071.02 Yuan, total liabilities were 855,347,919.08 Yuan, and total owners' equity was 219,932,151.94 Yuan - Consolidated total assets 1,075,280,071.02 Yuan, total liabilities 855,347,919.08 Yuan, total owners' equity 219,932,151.94 Yuan142 Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 1,098,377,376.96 Yuan, total liabilities were 386,282,842.26 Yuan, and total owners' equity was 712,094,534.70 Yuan - Parent company total assets 1,098,377,376.96 Yuan, total liabilities 386,282,842.26 Yuan, total owners' equity 712,094,534.70 Yuan146 Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was 294,305,568.27 Yuan, net profit was 1,695,756.11 Yuan, and net profit attributable to parent company shareholders was 1,546,640.59 Yuan - Consolidated total operating revenue 294,305,568.27 Yuan, net profit 1,695,756.11 Yuan150152 - Net profit attributable to parent company shareholders 1,546,640.59 Yuan, basic earnings per share 0.0089 Yuan/share152 Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 77,601,477.28 Yuan, and net profit was 3,930,965.19 Yuan - Parent company operating revenue 77,601,477.28 Yuan, net profit 3,930,965.19 Yuan154155 Consolidated Cash Flow Statement For the first half of 2025, the company's net cash flow from operating activities was 3,533,171.16 Yuan, net cash flow from investing activities was -7,594,162.22 Yuan, and net cash flow from financing activities was -3,824,532.40 Yuan - Net cash flow from operating activities 3,533,171.16 Yuan156 - Net cash flow from investing activities -7,594,162.22 Yuan158 - Net cash flow from financing activities -3,824,532.40 Yuan158 Parent Company Cash Flow Statement For the first half of 2025, the parent company's net cash flow from operating activities was 18,872.94 Yuan, and cash and cash equivalents at period-end were 178,767.06 Yuan - Parent company net cash flow from operating activities 18,872.94 Yuan159 - Cash and cash equivalents at period-end 178,767.06 Yuan160 Consolidated Statement of Changes in Owners' Equity For the first half of 2025, the company's consolidated owners' equity increased by 1,707,756.11 Yuan, with total owners' equity at period-end being 219,932,151.94 Yuan - Total comprehensive income attributable to parent company owners for this period was 1,546,640.59 Yuan163 - Total owners' equity at period-end 219,932,151.94 Yuan164 Parent Company Statement of Changes in Owners' Equity For the first half of 2025, the parent company's owners' equity increased by 3,930,965.19 Yuan, with total owners' equity at period-end being 712,094,534.70 Yuan - Total comprehensive income of the parent company for this period was 3,930,965.19 Yuan168 - Total owners' equity at period-end 712,094,534.70 Yuan169 Company Basic Information Maiquer Group Co., Ltd. was established on December 30, 2002, with a registered capital of 174,139,457 Yuan, primarily engaged in the production and sale of dairy, bakery, and seasonal foods, with Li Yuhu, Wang Cuixian, Li Yong, and Li Gang as the ultimate controlling parties - Company established on December 30, 2002, with registered capital of 174,139,457 Yuan173 - Main business activities are production and sale of dairy products, bakery foods, and seasonal foods173 - Ultimate controlling parties are Li Yuhu, Wang Cuixian, Li Yong, Li Gang173 - Financial report approved for issuance on August 22, 2025174 Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with Chinese Enterprise Accounting Standards and relevant disclosure regulations, primarily using historical cost measurement, with provisions for asset impairment - Financial statements prepared on a going concern basis175 - Complies with Chinese Enterprise Accounting Standards and CSRC disclosure regulations175 - Accounting is based on the accrual method, and except for some financial instruments, all are measured at historical cost175 - No significant uncertainties regarding the company's ability to continue as a going concern within 12 months after the end of the reporting period176 Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimation methods for financial instruments, revenue recognition, asset impairment, fixed asset depreciation, biological assets, intangible asset amortization, and long-term equity investments, ensuring compliance and accuracy of financial reporting - Financial instrument classification and measurement: Debt instruments classified based on business model and cash flow characteristics as amortized cost, fair value through other comprehensive income, or fair value through profit or loss; equity instrument investments measured at fair value through profit or loss, or designated through other comprehensive income199201202203205 - Revenue recognition: Revenue recognized when customer obtains control of goods, classified as performance over time or at a point in time, distinguishing between principal and agent267268269270271272273 - Inventory valuation and impairment provisions: Perpetual inventory system used, weighted average method for issuance; impairment provisions made when cost exceeds net realizable value at period-end215216217218 - Fixed asset depreciation: Straight-line method used, buildings 30 years, machinery and equipment 5-10 years, transportation equipment 5 years, electronic equipment and others 5 years241 - Productive biological asset depreciation: Mature dairy cows useful life 6 years, residual value rate 30%, annual depreciation rate 11.67%248 - Intangible asset amortization: Land use rights 30-50 years, patents and proprietary technology 10 years, trademark rights 5 years, technical, financial, and management software 3-5 years, all amortized using the straight-line method250 - Long-term equity investments: Accounted for using the equity method for joint control or significant influence, and the cost method for control229230231 Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, and it benefits from Western Development corporate income tax incentives (15% rate), corporate income tax exemption for initial processing of agricultural products, and small and micro enterprise income tax incentives - Main tax types and rates: VAT (13%, 9%, 6%, 5%), Urban Maintenance and Construction Tax (7%), Corporate Income Tax (25%, 20%, 15%)295 - Tax incentives: Maiquer Group Co., Ltd. and Xinjiang Maiquer Food Co., Ltd. enjoy a 15% corporate income tax rate under Western Development policy296 - Maiquer Group Co., Ltd. qualifies for initial processing of agricultural products, with some income exempt from corporate income tax296 - Xinjiang Western Ecological Animal Husbandry Co., Ltd. is exempt from VAT on self-produced agricultural products296 - Some subsidiaries qualify as small and micro enterprises, enjoying income tax incentives, taxed at 20% on 25% of taxable income297298 Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning-of-period balances, and current period changes for each item in the consolidated financial statements, including monetary funds, various receivables, inventories, fixed assets, construction in progress, productive biological assets, intangible assets, various liabilities, and profit/loss accounts, with explanations for significant changes - Monetary funds period-end balance 29,339,630.71 Yuan, including bank acceptance bill deposits and frozen funds of 8,677,241.40 Yuan300301392 - Accounts receivable period-end book value 85,917,566.33 Yuan, bad debt provision rate 38.49%308311 - Inventories period-end book value 42,592,663.49 Yuan, inventory impairment provision 18,791,941.67 Yuan344 - Fixed assets period-end book value 500,356,706.12 Yuan, increased by 5,475,925.93 Yuan and decreased by 6,136,821.35 Yuan in this period354356 - Construction in progress period-end balance 75,969,762.33 Yuan, with a full impairment provision of 517,241.40 Yuan for the Chinese-style workshop construction project358360365 - Short-term borrowings period-end balance 50,000,000.00 Yuan, a significant increase from 17,518,487.67 Yuan at the beginning of the period396 - Accounts payable period-end balance 401,918,961.30 Yuan, of which 63,053,190.00 Yuan to Gansu XXX Animal Husbandry Technology Co., Ltd. is unsettled400402 - Operating revenue for this period 294,305,568.27 Yuan, operating cost 219,793,531.38 Yuan441 - Credit impairment loss for this period 6,754,893.14 Yuan, compared to 586,914.69 Yuan in the prior period, mainly due to increased bad debt losses on accounts receivable459 - Net cash flow from operating activities for this period 3,533,171.16 Yuan, a year-on-year decrease of 54.33%, mainly due to gradual repayment of prior year debts482 R&D Expenses During the reporting period, the company's total R&D expenses amounted to 2,263,957.34 Yuan, primarily consisting of employee compensation, and all were expensed R&D Expense Details (Units: Yuan) | Item | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 1,891,273.70 | 2,004,437.53 | | Business Entertainment Expenses | 23,652.59 | 20,903.68 | | Travel Expenses | 519.47 | 3,965.79 | | Office Expenses | 2,534.56 | 337.38 | | Asset Amortization | 45,287.00 | 42,263.49 | | Depreciation Expenses | 130,986.50 | 126,777.69 | | Intermediary Service Fees | 5,026.94 | 360.00 | | Other | 164,676.58 | 93,041.33 | | Total | 2,263,957.34 | 2,292,086.89 | | Of which: Expensed R&D | 2,263,957.34 | 2,292,086.89 | Changes in Consolidation Scope During the reporting period, the company established two new subsidiaries: Xinjiang Yunzhichuanglian Information Technology Service Co., Ltd. and Xinjiang Tianshan Yunmu Bakery Co., Ltd - Two new subsidiaries established this year: Xinjiang Yunzhichuanglian Information Technology Service Co., Ltd. and Xinjiang Tianshan Yunmu Bakery Co., Ltd.491 Interests in Other Entities The company owns several wholly-owned subsidiaries engaged in livestock breeding, food and beverage, chain technology, and investment management, including Xinjiang Western Ecological Animal Husbandry Co., Ltd. with a registered capital of 150 million Yuan, and Xinjiang Maiquer Food Co., Ltd. with a registered capital of 20 million Yuan - Xinjiang Western Ecological Animal Husbandry Co., Ltd. is a wholly-owned subsidiary with registered capital of 150 million Yuan, primarily engaged in livestock breeding and livestock machinery manufacturing492 - Xinjiang Maiquer Food Co., Ltd. is a wholly-owned subsidiary with registered capital of 20 million Yuan, primarily engaged in the production and sale of food, cold beverages, non-alcoholic beverages, and purified water492 - Zhejiang Xinmeixin Food Industry Co., Ltd. is a wholly-owned subsidiary with registered capital of 70,205,787 Yuan, primarily engaged in food (including food additives) production and food business494 Government Grants During the reporting period, the company received government grants totaling 6,209,225.37 Yuan recognized in current profit or loss, and government grants in deferred income decreased by 4,465,740.08 Yuan - Government grants recognized in current profit or loss for this period amounted to 6,209,225.37 Yuan498 - Government grants in deferred income had a beginning balance of 13,022,465.67 Yuan, decreased by 4,465,740.08 Yuan in this period, with an ending balance of 8,556,725.59 Yuan496497 Risks Related to Financial Instruments The company faces market risks (foreign exchange, interest rate, other price risks), credit risk, and liquidity risk; the company has no foreign exchange risk, manages interest rate risk through market adjustments, credit risk through customer assessment and monitoring, and liquidity risk through cash reserves and borrowing agreements - Company has no foreign exchange transactions, thus no foreign exchange risk500 - Interest rate risk primarily arises from bank borrowings, managed by the management team adjusting promptly based on market conditions501 - Credit risk mainly stems from bank deposits, accounts receivable, other receivables, notes receivable, and wealth management products, managed by assessing customer credit, collateral possibilities, credit history, and market conditions502503 - Liquidity risk is managed by maintaining sufficient cash and cash equivalents, monitoring bank borrowing utilization, and securing commitments for backup funds504 Related Parties and Related Party Transactions The company's ultimate controlling parties are Li Yuhu, Wang Cuixian, Li Yong, and Li Gang; during the reporting period, the company engaged in daily related party transactions with related parties, including goods procurement and sales, and leasing, and disclosed balances of related party receivables and payables - The ultimate controlling parties of this enterprise are Li Yuhu, Wang Cuixian, Li Yong, Li Gang505 - During the reporting period, the company procured 9,061,189.32 Yuan of goods from Xinjiang Fushi (Group) Sugar, Tobacco and Food Co., Ltd.509 - The company sold 22,428.01 Yuan of goods to Xinjiang Fushi (Group) Sugar, Tobacco and Food Co., Ltd.510 - The company leased properties from Xinjiang Maiquer Group Co., Ltd., Xinjiang Jiajixin Investment Co., Ltd., and Xinjiang Maiquer Sanliu Wu Property Service Co., Ltd., paying total rent of approximately 3,695,000.00 Yuan in this period511 - Key management personnel compensation for this period amounted to 3,130,162.17 Yuan512 - Period-end accounts receivable include amounts from related parties Zhang Chao, Xinjiang Fushi (Group) Sugar, Tobacco and Food Co., Ltd., and Xinjiang Yuanming Supply Chain Management Co., Ltd.516 - Period-end accounts payable include amounts to related parties Xinjiang Fushi (Group) Sugar, Tobacco and Food Co., Ltd., Xinjiang Changji Zhengtai Automobile Sales Co., Ltd., etc.518 Commitments and Contingencies As of June 30, 2025, the company had no significant commitments requiring disclosure; the company had outstanding lawsuits with a total involved amount of 81.0694 million Yuan - As of June 30, 2025, the company had no significant commitments requiring disclosure519 - As of June 30, 2025, the company's outstanding lawsuits involved an amount of 81.0694 million Yuan520 Notes to Parent Company Financial Statement Items This section details the period-end balances, beginning-of-period balances, and current period changes for key items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, and operating revenue and costs, reflecting the parent company's independent financial position and operating results - Parent company accounts receivable period-end book balance 55,586,247.05 Yuan, a significant decrease from 121,414,861.71 Yuan at the beginning of the period523 - Parent company other receivables period-end book balance 61,354,999.11 Yuan, a significant decrease from 139,861,585.65 Yuan at the beginning of the period543 - Parent company long-term equity investments period-end book value 682,222,676.69 Yuan, consistent with the beginning of the period551 - Parent company operating revenue for this period 77,601,477.28 Yuan, operating cost 75,921,242.03 Yuan, both decreased compared to the prior period557 Supplementary Information This section provides supplementary information including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share, and confirms no differences in accounting data under domestic and overseas accounting standards - Total non-recurring gains and losses 7,411,153.00 Yuan, mainly from disposal gains of non-current assets and government grants559 - Weighted average return on net assets attributable to common shareholders was 0.68%, basic earnings per share was 0.0089 Yuan/share560 - Company has no differences in accounting data under domestic and overseas accounting standards561 Part IX Other Submitted Data Other Significant Social Security Issues During the reporting period, the company and its subsidiaries had no other significant social security issues and received no administrative penalties - Listed company and its subsidiaries had no other significant social security issues563 - No administrative penalties were received during the reporting period563 Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company engaged with institutional, individual, and other investors through online platforms, discussing the 2024 annual performance, corporate governance, development strategy, operating conditions, and other matters - On May 9, 2025, investors were engaged via online platform to explain the 2024 annual performance563 - On May 23, 2025, investors were engaged via online platform to discuss the 2024 annual performance, corporate governance, development strategy, operating conditions, financing plans, equity incentives, and sustainable development563 Fund Transactions Between Listed Company and Controlling Shareholder and Other Related Parties During the reporting period, the company had operational transactions with Xinjiang Fushi (Group) Sugar, Tobacco and Food Co., Ltd., with a beginning balance of 2.474 million Yuan, current period transactions and repayments of 13.4748 million Yuan, and an ending balance of 2.474 million Yuan Fund Transactions Between Listed Company and Controlling Shareholder and Other Related Parties (Units: 10,000 Yuan) | Related Party Name | Nature of Transaction | Beginning Balance (10,000 Yuan) | Current Period Transactions (10,000 Yuan) | Current Period Repayments (10,000 Yuan) | Ending Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Fushi (Group) Sugar, Tobacco and Food Co., Ltd. | Operational transactions | 247.4 | 1,347.48 | 1,347.48 | 247.4 |
麦趣尔(002719) - 2025 Q2 - 季度财报