南王科技(301355) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, the report's structural overview, and definitions of key terms used throughout the document Important Notice The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false statements, misleading representations, or material omissions, and assume individual and joint legal liabilities[5] - Company负责人 Chen Kaisheng, Chief Accountant Zheng Qingyong, and Head of Accounting Department Huang Tao declare that the financial report in this semi-annual report is true, accurate, and complete[5] - The company may face risks such as fluctuations in social consumer demand and raw material prices in its production and operations, as detailed in "Part III Management Discussion and Analysis"[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[6] Table of Contents This section outlines the report's structure, including company profile, management discussion, corporate governance, significant matters, share changes, bond information, and financial reports - The report comprises eight main chapters covering company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related information, and financial reports[8] Reference Documents Reference documents include signed and sealed financial statements and original announcements of all publicly disclosed company documents during the reporting period - Reference documents include signed and sealed financial statements and original announcements of all company documents publicly disclosed during the reporting period[10] Definitions This section defines common terms used in the report, including company names, institutional bodies, major subsidiaries, and the reporting period - The reporting period is defined as January 1, 2024, to December 31, 2024[11] - Names and definitions of the company and its major subsidiaries and related parties, such as Nanwang Technology, Nanwang Supply Chain, and NANWANG PACK(M) SDN.BHD., are listed[11] Part II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period I. Company Profile The company, Fujian Nanwang Environmental Protection Technology Co., Ltd., is listed on the Shenzhen Stock Exchange under stock code 301355, with Chen Kaisheng as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Nanwang Technology | | Stock Code | 301355 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 福建南王环保科技股份有限公司 | | Legal Representative | Chen Kaisheng | II. Contact Person and Contact Information Liu Yingying serves as both the Board Secretary and Securities Affairs Representative, with contact details provided for the company's office in Fujian Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Liu Yingying | No. 560, Liantang Village, Dongqiao Town, Huian County, Fujian Province | 0595-36367036 | 0595-36367055 | zqb@nwpak.com | | Securities Affairs Representative | Liu Yingying | No. 560, Liantang Village, Dongqiao Town, Huian County, Fujian Province | 0595-36367036 | 0595-36367055 | zqb@nwpak.com | III. Other Information The company's registered address, office address, website, email, information disclosure, and registration status remained unchanged during the reporting period - The company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[16] - Information disclosure and storage locations remained unchanged during the reporting period[17] - The company's registration status remained unchanged during the reporting period[18] IV. Key Accounting Data and Financial Indicators During the reporting period, operating revenue increased by 32.21% year-over-year, but net profit attributable to shareholders significantly decreased by 89.44%, and net cash flow from operating activities also fell by 77.26% Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Period) | Indicator | Current Reporting Period (CNY) | Prior Period (CNY) | Year-over-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 776,669,444.68 | 587,429,325.57 | 32.21% | | Net Profit Attributable to Shareholders of the Listed Company | 2,327,071.12 | 22,033,755.65 | -89.44% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 1,779,361.81 | 16,785,326.20 | -89.40% | | Net Cash Flow from Operating Activities | 18,652,587.16 | 82,024,570.99 | -77.26% | | Basic Earnings Per Share (CNY/share) | 0.01 | 0.11 | -90.91% | | Diluted Earnings Per Share (CNY/share) | 0.01 | 0.11 | -90.91% | | Weighted Average Return on Net Assets | 0.15% | 1.44% | -1.29% | | Current Period-end vs. Prior Year-end | | | | | Total Assets | 2,536,898,930.87 | 2,583,611,354.02 | -1.81% | | Net Assets Attributable to Shareholders of the Listed Company | 1,503,061,862.81 | 1,523,819,270.19 | -1.36% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those under Chinese accounting standards - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards[20] - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards[21] VI. Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to CNY 0.55 million, primarily from government grants, disposal of non-current assets, and subsidiary shutdown losses Non-recurring Gains and Losses and Amounts | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -2,156,454.37 | | | Government grants recognized in current profit or loss | 3,756,573.39 | | | Other non-operating income and expenses apart from the above | -11,591.11 | | | Other gains and losses meeting the definition of non-recurring | -705,538.28 | Shutdown losses of wholly-owned subsidiary NANWANG PACK(M) SDN.BHD., interest income from time deposits and large-denomination certificates of deposit | | Less: Income tax impact | 411,707.30 | | | Impact on minority interests (after tax) | -76,426.98 | | | Total | 547,709.31 | | Part III Management Discussion and Analysis This section analyzes the company's primary business activities, core competencies, financial performance, investment status, and risks during the reporting period I. Main Business Activities During the Reporting Period The company specializes in paper product packaging, recyclable packaging, labels, and thermal receipt paper, offering integrated packaging services with a focus on "production based on sales" and R&D - The company's core business is paper product packaging, supplemented by recyclable packaging, various labels, and thermal receipt paper, providing one-stop solutions for creative design, scheme planning, new technology application, color management, and personalized needs[28] - In 2024, the global packaging and printing market reached USD 517.9 billion, projected to grow at a CAGR of 3.6% over the next five years, with China holding a significant market share[26] - The number of large-scale enterprises in China's packaging industry increased by 2.70%, but total profits decreased by 6.43% year-over-year, indicating simultaneous growth in output and pressure on profits[26] - National policies promoting packaging reduction are enhancing the competitive advantage of paper packaging materials, leading to broader application areas[27] - The company primarily adopts a "production based on sales" model, with necessary reserve production for annual contract customers to ensure timely delivery[30] - The company's R&D model combines independent research and collaborative development, market-oriented, continuously increasing R&D investment[32] 1. Industry Overview The global packaging and printing industry is experiencing steady growth, with Asia, led by China, contributing significantly to market value, while China's packaging sector faces profit pressures despite increased enterprise numbers - The global packaging and printing industry market size reached USD 517.9 billion in 2024, expected to grow at a CAGR of 3.6% over the next 5 years to USD 618.2 billion[26] - Asia, Western Europe, and North America contribute 81.5% of the global packaging and printing output value, with China holding a significant market share[26] - In 2024, the number of large-scale enterprises in China's packaging industry reached 19,000, a 2.70% year-over-year increase; total profits reached CNY 97.5 billion, a 6.43% year-over-year decrease[26] - In 2024, China's total retail sales of consumer goods increased by 3.5% year-over-year, and per capita disposable income increased by 5.3% year-over-year, providing growth momentum for the packaging market[27] - With the implementation of national packaging reduction policies, paper-based printing and packaging materials are gradually gaining market competitiveness due to their lightweight, convenience, and strong print adaptability, expanding their application fields[27] 2. Company Business Layout and Products The company is an integrated packaging service provider, offering one-stop solutions with a core focus on paper product packaging, complemented by recyclable packaging, labels, and thermal receipt paper - The company is committed to providing one-stop solutions for creative design, scheme planning, new technology application, color management, and other personalized needs[28] - The company has formed an industrial layout centered on paper product packaging, supplemented by recyclable packaging, various types of labels, and thermal receipt paper businesses[28] - Main products include environmentally friendly paper bags, paper food packaging, non-woven vest bags, one-piece (laminated) non-woven bags, insulated non-woven bags, various types of labels, thermal receipt paper, and self-adhesive labels[28] 3. Company's Main Operating Model The company's operating model integrates procurement, production, sales, and R&D, primarily adopting a "production based on sales" approach with a focus on both independent and collaborative innovation - Procurement Model: Centered on the procurement department, responsible for supplier selection, procurement plan formulation and execution, with prices negotiated based on market rates[29] - Production Model: Primarily "production based on sales," supplemented by necessary reserve production for annual supply contract customers to ensure timely delivery[30] - Sales Model: Centered on the sales department, utilizing subsidiaries in various regions to complete the marketing network, employing a combination of direct sales and distribution[31] - R&D Model: Managed by the R&D center, combining independent research and collaborative development, establishing partnerships with universities, research institutes, and suppliers[32] II. Core Competitiveness Analysis The company's core competitiveness stems from its scale advantage, premium customer base, continuous technological innovation, stringent quality control, production leadership, and strategic market布局 - The company holds a leading market position in the eco-friendly paper bag segment, with its Fujian Huian Phase II smart factory capable of producing over 2.247 billion paper packaging units annually[33] - The company's main clients are renowned domestic and international consumer and catering brands, such as KFC, McDonald's, Starbucks, and Meituan, and it has received multiple client awards[35] - The R&D team accounts for over 10% of the total workforce, with approximately 30% holding bachelor's degrees or higher, driving continuous technological innovation through independent and collaborative R&D[36] - The company has established a stringent quality control system, holding ISO 22000, ISO 9001, BRCGS, and other certifications, with industry-leading laboratory testing capabilities[39] - The company possesses over 400 advanced production equipment units, offers a comprehensive product range, and actively promotes product standardization to reduce costs[33][41][43] - The company strategically deploys subsidiaries in key domestic consumption areas and has expanded into overseas markets, establishing controlled subsidiaries in Indonesia and Canada[44] (1) Scale Advantage The company leads in the paper product packaging market, particularly in eco-friendly paper bags, with its Fujian Huian Phase II smart factory boasting high production capacity and advanced equipment, enhancing efficiency and bargaining power - The company holds a leading market position in the eco-friendly paper bag segment[33] - The Fujian Huian Phase II smart factory is operational, capable of producing over 2.247 billion paper packaging units annually[33] - The company possesses over 400 production equipment units, including internationally advanced machines like German satellite flexographic presses and Japanese automated bag-making lines[33] - Scale advantage has improved production efficiency, reduced production costs, and enhanced bargaining power with clients and suppliers[33] (2) Customer Resource Advantage Leveraging high-quality products and services, the company has established long-term partnerships with renowned domestic and international brands, driving business growth and brand influence - The company's main clients are well-known domestic and international consumer and catering brands, including KFC, McDonald's, Starbucks, Meituan, Wallace, Haidilao, Mixue Bingcheng, Nike, Adidas, Anta, and Xtep[35] - The company has received multiple client awards, such as KFC's "2019 Yum China Quality Award," McDonald's "2020 AA Supplier Quality Award," and "2023 McDonald's AA Quality Award"[35] - Premium customer resources have driven the company's rapid business development and helped expand business scale and strengthen brand influence[35] (3) Continuous Technological Innovation Advantage The company prioritizes innovation, with over 10% of its workforce in R&D, combining independent and collaborative research, and utilizing advanced technologies to achieve smart, automated production - The company's R&D team accounts for over 10% of the total workforce, with approximately 30% holding bachelor's degrees or higher, comprising professionals in printing engineering, packaging engineering, mechanical automation, and other fields[36] - The company adopts a combined model of independent R&D and collaborative R&D, establishing partnerships with institutions like Shaanxi University of Science & Technology and Beijing Institute of Graphic Communication, as well as equipment suppliers[36] - A rapid prototyping center has been established in Shanghai to quickly respond to customer needs, actively tracking the latest technological developments in the paper product packaging sector globally[36] - The application of AGV+5G technology interconnected with the MES system enables reduced human intervention, automation, and digitalization in production; a visual inspection and rejection system enhances detection efficiency; and a WMS intelligent stereoscopic warehouse achieves efficient storage[37][38] (4) Quality Control Advantage The company has implemented a rigorous quality control system, particularly for food packaging safety, achieving BRC certification and establishing advanced laboratory testing capabilities and a product traceability system - Clients have high demands for food packaging quality control, and the company has obtained BRC certification, with strict requirements for "zero defects" in products[39] - The company has established a stringent quality control system, equipping key production processes with advanced testing equipment and technical personnel, and implementing stricter technical standards and quality management systems than industry benchmarks[39] - The company's laboratory testing capabilities are industry-leading, and a product quality traceability system has been established, enabling product traceability within 2 hours[39] - The company has obtained management system certifications including ISO 22000, ISO 9001, ISO 14001, ISO 45001, FSC-COC, and BRCGS[39] (5) Production Leadership Advantage The company prioritizes high-precision, stable, efficient, and automated production equipment, offering a comprehensive product range as a "one-stop" supplier, and promoting product standardization to reduce costs - The company's equipment selection emphasizes high precision, high stability, high efficiency, and high automation, ensuring high product precision, quality, qualification rates, and low costs through the introduction and independent development of advanced production equipment[40] - The company offers a comprehensive product range, covering most types of eco-friendly paper bags and food packaging, and actively develops and manufactures products such as thermal paper, label paper, and non-woven fabrics, becoming a "one-stop" supplier[41] - The company actively guides customers to accept product standardization, effectively reducing production costs through standardized and large-scale production, thereby consolidating its market competitive advantage[43] (6) Strategic Layout Advantage The company strategically positions subsidiaries in key domestic consumption areas to enhance customer proximity and responsiveness, while also expanding its global presence with overseas subsidiaries to diversify marketing and production - The company strategically deploys subsidiaries in key domestic consumption areas, close to premium end-customers, to reduce transportation costs and improve customer response speed[44] - Multi-point domestic capacity layout mitigates supply chain risks, a key concern for core customers[44] - The company is deeply expanding into overseas markets, having established controlled subsidiaries in Indonesia and Canada, achieving diversified marketing and globalized production[44] III. Main Business Analysis During the reporting period, the company's operating revenue increased by 32.21%, driven by subsidiary growth, but net profit attributable to the parent company and net cash flow from operating activities significantly declined Key Financial Data Year-over-year Changes | Indicator | Current Reporting Period (CNY) | Prior Period (CNY) | Year-over-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 776,669,444.68 | 587,429,325.57 | 32.21% | Primarily due to increased revenue from controlled subsidiaries | | Operating Cost | 676,873,954.88 | 497,395,210.86 | 36.08% | Primarily due to increased costs corresponding to increased revenue from controlled subsidiaries | | Selling Expenses | 19,500,728.96 | 13,731,696.22 | 42.01% | Primarily due to increased employee compensation, commissions, advertising, and exhibition fees of controlled subsidiaries | | Administrative Expenses | 62,258,861.69 | 43,486,805.52 | 43.17% | Primarily due to increased employee compensation, right-of-use assets, depreciation and amortization, and other expenses of controlled subsidiaries | | Financial Expenses | 6,133,959.73 | -1,065,885.31 | 675.48% | Primarily due to increased interest expenses on borrowings and decreased interest income | | Income Tax Expense | -5,855,279.93 | -490,130.75 | -1,094.64% | Primarily due to decreased pre-tax profit | | R&D Investment | 27,834,789.11 | 21,884,369.44 | 27.19% | | | Net Cash Flow from Operating Activities | 18,652,587.16 | 82,024,570.99 | -77.26% | Primarily due to increased payments for materials and employee compensation by subsidiaries in the current period | | Net Cash Flow from Investing Activities | -94,381,801.44 | -11,833,761.35 | -866.57% | Primarily due to increased deposits into time deposits by the company in the current period | | Net Cash Flow from Financing Activities | 16,364,421.14 | 53,831,949.91 | -69.60% | Primarily due to increased repayment of borrowings by the company in the current period | | Net Increase in Cash and Cash Equivalents | -59,409,122.69 | 125,146,433.57 | -147.47% | Primarily due to increased deposits into time deposits, increased payments for materials, and increased repayment of borrowings by the company in the current period | Product or Service Information Accounting for Over 10% | By Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | Year-over-year Change in Operating Revenue | Year-over-year Change in Operating Cost | Year-over-year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Eco-friendly Paper Bags | 271,872,965.84 | 241,938,814.74 | 11.01% | -11.01% | -6.67% | -4.14% | | Food Packaging | 281,151,035.69 | 240,386,177.59 | 14.50% | 8.61% | 10.23% | -1.25% | | Labels | 20,559,240.48 | 19,336,981.92 | 5.95% | 1,319.52% | 1,471.94% | -9.12% | | Non-woven Bags | 193,872,491.92 | 168,103,016.10 | 13.29% | 1,877.77% | 1,868.88% | 0.39% | | By Region | | | | | | | | Domestic Sales | 673,683,053.00 | 598,160,611.24 | 11.21% | 33.77% | 37.48% | -2.40% | | Export Sales | 93,772,680.93 | 71,604,379.11 | 23.64% | 30.22% | 37.69% | -4.15% | IV. Non-Main Business Analysis Non-main business activities significantly impacted total profit, with investment income being sustainable, while asset impairment, non-operating expenses, asset disposal gains, and credit impairment losses had negative and mostly non-sustainable effects Impact of Non-Main Business on Total Profit | Item | Amount (CNY) | Percentage of Total Profit | Explanation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 7,381,443.06 | -83.69% | Primarily due to income from time deposits and large-denomination certificates of deposit in the current period | Yes | | Asset Impairment | -4,391,817.18 | 49.79% | Primarily due to provision for inventory depreciation losses | No | | Non-operating Income | 194,942.77 | -2.21% | Primarily due to write-off of unpayable amounts | No | | Non-operating Expenses | 738,541.73 | -8.37% | Primarily due to disposal of non-current assets and external donations | No | | Gains from Asset Disposal | -1,624,446.52 | 18.42% | Primarily due to losses from disposal of non-current assets | No | | Credit Impairment Losses | -330,412.86 | 3.75% | Primarily due to provision for doubtful accounts receivable | No | | Other Income | 10,521,252.45 | -119.28% | Primarily due to government grants and deferred income amortization | No | V. Analysis of Assets and Liabilities At the end of the reporting period, total assets and net assets attributable to shareholders slightly decreased, with fixed assets increasing due to the capitalization of Nanwang Phase II Plant 2 Significant Changes in Asset Composition (Current Period-end vs. Prior Year-end) | Item | Current Period-end Amount (CNY) | Percentage of Total Assets | Prior Year-end Amount (CNY) | Percentage of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 240,757,778.54 | 9.49% | 299,646,650.57 | 11.60% | -2.11% | Not applicable | | Accounts Receivable | 250,513,373.95 | 9.87% | 245,252,800.86 | 9.49% | 0.38% | Not applicable | | Inventories | 267,151,710.07 | 10.53% | 300,131,027.26 | 11.62% | -1.09% | Not applicable | | Long-term Equity Investments | 296,152.67 | 0.01% | 0.00 | 0.00% | 0.01% | Not applicable | | Fixed Assets | 704,282,713.93 | 27.76% | 633,974,195.12 | 24.54% | 3.22% | Primarily due to the capitalization of Nanwang Phase II Plant 2 | | Construction in Progress | 221,676,156.23 | 8.74% | 218,664,373.01 | 8.46% | 0.28% | Not applicable | | Short-term Borrowings | 469,218,701.86 | 18.50% | 420,559,927.26 | 16.28% | 2.22% | Not applicable | | Lease Liabilities | 91,141,979.95 | 3.59% | 88,284,723.49 | 3.42% | 0.17% | Not applicable | - The company had no major overseas assets during the reporting period[53] Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Current Period Purchases (CNY) | Current Period Sales (CNY) | Period-end Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 650,000.00 | 600,000.00 | 650,000.00 | 600,000.00 | | Total | 650,000.00 | 600,000.00 | 650,000.00 | 600,000.00 | Assets with Restricted Ownership or Use Rights as of the End of the Reporting Period | Item | Period-end Book Value (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 564,137.36 | Bank acceptance bill margin | | Cash and Cash Equivalents | 218.00 | Performance bond | | Fixed Assets | 279,403,199.06 | Collateral for borrowings | | Intangible Assets | 25,786,982.13 | Collateral for borrowings | | Construction in Progress | 34,687,364.56 | Collateral for borrowings | | Non-current Assets Due Within One Year | 30,000,000.00 | Pledged for issuing bills | | Other Non-current Assets | 300,000,000.00 | Pledged for issuing bills and letters of credit | | Total | 670,441,901.11 | | VI. Investment Status Analysis The company's total investment increased by 83.22% year-over-year, with no significant equity investments, and a major non-equity investment project was terminated and reallocated Investment Amount Overview | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount for the Reporting Period | 330,911,473.25 | | Investment Amount for the Same Period Last Year | 180,611,372.48 | | Change Percentage | 83.22% | - No significant equity investments were acquired by the company during the reporting period[57] - The "East China Paper Product Packaging Production Base Phase III Project" has been terminated, and the remaining raised funds will be invested in the "Annual Production of 3.8 Billion Eco-friendly Paper Products Project"[58][64] Raised Funds Utilization Overview | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Net Raised Funds | 77,380.83 | | Total Raised Funds Used Cumulatively | 60,156.84 | | Cumulative Utilization Rate of Raised Funds | 77.74% | | Total Unused Raised Funds | 18,938.85 | | Raised Funds Used in Current Period | 8,876.27 | - The company has no entrusted wealth management, derivative investments, or entrusted loans[68][69][70] 1. Overall Situation During the reporting period, the company's total investment amounted to CNY 330.91 million, an 83.22% increase compared to the prior period Investment Amount Overview | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount for the Reporting Period | 330,911,473.25 | | Investment Amount for the Same Period Last Year | 180,611,372.48 | | Change Percentage | 83.22% | 2. Significant Equity Investments Acquired During the Reporting Period The company did not acquire any significant equity investments during the reporting period - The company had no significant equity investments acquired during the reporting period[57] 3. Significant Non-Equity Investments in Progress During the Reporting Period The "East China Paper Product Packaging Production Base Phase III Project" has been terminated, with the original raised fund project reallocated to a new eco-friendly paper product construction project in Jiangmen City - The "East China Paper Product Packaging Production Base Phase III Project" has been terminated, and the project will no longer calculate returns[58][64] - The original raised fund project "Paper Product Packaging Production and Sales Project" has been changed to "Annual Production of 3.8 Billion Eco-friendly Paper Products Project," with the implementation location changed from Wuhan to Heshan City, Jiangmen, Guangdong Province[64] 4. Financial Assets Measured at Fair Value The company had no financial assets measured at fair value during the reporting period - The company had no financial assets measured at fair value during the reporting period[59] 5. Utilization of Raised Funds As of June 30, 2025, the company's net raised funds totaled CNY 773.81 million, with CNY 601.57 million cumulatively invested, representing a 77.74% utilization rate Raised Funds Utilization Overview | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Net Raised Funds | 77,380.83 | | Total Raised Funds Used Cumulatively | 60,156.84 | | Cumulative Utilization Rate of Raised Funds | 77.74% | | Total Unused Raised Funds | 18,938.85 | | Raised Funds Used in Current Period | 8,876.27 | - The company has permanently supplemented working capital with CNY 43 million of over-raised funds[64] - The original raised fund project "Paper Product Packaging Production and Sales Project" has been changed to "Annual Production of 3.8 Billion Eco-friendly Paper Products Project," with a planned investment of CNY 326.73 million (including CNY 104.01 million of over-raised funds)[64][67] - The changed "Annual Production of 3.8 Billion Eco-friendly Paper Products Project" had a cumulative investment of CNY 138.21 million as of the end of the period, with an investment progress of 42.30%, expected to reach its intended usable state by June 30, 2026[67] 6. Entrusted Wealth Management, Derivative Investments, and Entrusted Loans The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period - The company had no entrusted wealth management during the reporting period[68] - The company had no derivative investments during the reporting period[69] - The company had no entrusted loans during the reporting period[70] VII. Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[71] - The company did not dispose of significant equity during the reporting period[72] VIII. Analysis of Major Controlled and Jointly Controlled Companies The company's major subsidiaries include Gather Packaging Co., Ltd., Zhuhai Zhongyue Paper Cup Container Co., Ltd., and Anhui Budaiwang Environmental Protection Technology Co., Ltd., with several experiencing losses due to various factors Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gather Packaging Co., Ltd. | Subsidiary | Production and sales of paper products | USD 10 million | 68,816,096.75 | 51,172,067.53 | 2,282,519.42 | -6,656,312.47 | | Zhuhai Zhongyue Paper Cup Container Co., Ltd. | Subsidiary | Production and sales of paper products | 13,000,000 | 137,220,230.76 | 109,965,317.23 | 49,064,694.02 | -2,314,114.40 | | Anhui Budaiwang Environmental Protection Technology Co., Ltd. | Subsidiary | Production and sales of paper products, plastic products | 80,000,000 | 341,185,518.35 | 75,463,507.91 | 202,623,292.73 | 1,162,612.72 | | Anhui Nanwang Environmental Protection Technology Co., Ltd. | Subsidiary | Production and sales of paper products | 20,000,000 | 37,061,605.17 | 24,197,721.54 | 36,401,304.86 | -1,983,620.55 | | Hubei Nanwang Environmental Protection Technology Co., Ltd. | Subsidiary | Production and sales of paper products | 50,000,000 | 178,896,882.83 | 49,730,124.08 | 80,017,295.38 | -937,228.75 | | Xianghe Nanwang Environmental Protection Technology Co., Ltd. | Subsidiary | Production and sales of paper products | 5,000,000 | 42,394,615.47 | 3,497,167.34 | 22,881,800.45 | -3,125,996.96 | | Guangdong Nanwang Environmental Protection Technology Co., Ltd. | Subsidiary | Production and sales of paper products | 100,000,000 | 263,071,934.67 | 28,982,078.49 | 0.00 | 409,766.20 | | NANWANG PACK (MALAYSIA) SDN.BHD. | Subsidiary | Production and sales of paper products | MYR 20 million | 23,065,555.98 | 14,118,270.52 | 2,970,093.89 | -918,393.69 | | PT NANWANG PACK INDONESIA | Subsidiary | Production and sales of paper products | IDR 96 billion | 52,271,141.91 | 16,245,879.80 | 5,392.84 | -4,500,644.06 | - Gather Packaging Co., Ltd. and PT NANWANG PACK INDONESIA incurred significant losses due to being in the preparatory stage, high setup costs, and insufficient capacity release[74] - NANWANG PACK (M) SDN.BHD. incurred losses due to production suspension caused by the US "anti-dumping" impact[74] - Zhuhai Zhongyue Paper Cup Container Co., Ltd., Anhui Nanwang Environmental Protection Technology Co., Ltd., Hubei Nanwang Environmental Protection Technology Co., Ltd., and Xianghe Nanwang Environmental Protection Technology Co., Ltd. incurred losses due to price reductions by end-customers[74] - Anhui Budaiwang Environmental Protection Technology Co., Ltd. experienced significant growth in assets and revenue due to the completion of factory renovation, commissioning of production equipment, and sufficient orders, leading to gradual capacity release[74] IX. Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[75] X. Risks Faced by the Company and Countermeasures The company faces risks from fluctuating consumer demand, raw material prices, market competition, and changes in overseas market environments, which it plans to address through cost optimization, R&D, market expansion, and global capacity布局 - Risk of social consumer demand fluctuations: The company's main products are used in social consumption, and demand fluctuations may adversely affect operating performance. Countermeasures include improving production and operational efficiency to optimize costs, continuous technological R&D and product innovation, and actively exploring new application scenarios and areas[75] - Risk of raw material price fluctuations: Raw paper accounts for a high proportion of production costs; a 10% increase in price would lead to approximately a 4 percentage point decrease in gross profit margin. Countermeasures include timely market intelligence, supplier price locking, advance stocking, centralized group procurement, and price transmission[75] - Market competition risk: The industry is highly competitive; if the company fails to simultaneously improve product quality and service capabilities, it may face a decline in market share and profitability. Countermeasures include continuously increasing R&D investment, improving management mechanisms and human resource systems, and enhancing core competitiveness[75][76] - Risk of changes in overseas market environment: US "reciprocal tariffs" and trade frictions may affect the company's export business and overseas factories. Countermeasures include expanding into markets outside the US through overseas布局 and increased R&D of new products, while closely monitoring policy changes[76] XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company hosted two investor engagement events: an on-site institutional investor visit and an online exchange for all investors - On January 10, 2025, the company hosted institutional investors from Qianhai Changyu, Zheju Tezi, Kaiyuan Securities, and others for an on-site visit to discuss the company's development history, main business, and operating conditions[77] - On May 14, 2025, the company conducted an online exchange via the Panorama Network platform, engaging with institutional, individual, and all investors to discuss the company's online collective investor reception day event[77] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period[78] - The company did not disclose a valuation enhancement plan during the reporting period[78] XIII. Implementation of "Dual Enhancement of Quality and Returns" Action Plan The company did not disclose an announcement regarding the "Dual Enhancement of Quality and Returns" action plan during the reporting period - The company did not disclose an announcement regarding the "Dual Enhancement of Quality and Returns" action plan during the reporting period[79] Part IV Corporate Governance, Environment, and Society This section details changes in the company's governance structure, profit distribution plans, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management During the reporting period, Ms. Han Chunmei resigned as Director and Deputy General Manager, and Mr. Zheng Qingyong was elected as a Director due to work relocation Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Han Chunmei | Director | Resignation | April 19, 2025 | Personal reasons | | Han Chunmei | Deputy General Manager | Dismissal | April 19, 2025 | Personal reasons | | Zheng Qingyong | Director | Election | June 17, 2025 | Work relocation | II. Profit Distribution and Capital Reserve Conversion to Share Capital in 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 - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[82] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[83] IV. Environmental Information Disclosure The company and its key subsidiaries, Fujian Nanwang Environmental Protection Technology Co., Ltd. and Anhui Nanwang Environmental Protection Technology Co., Ltd., are included in the list of enterprises required to disclose environmental information and have done so in the relevant systems - The company and its major subsidiaries, Fujian Nanwang Environmental Protection Technology Co., Ltd. and Anhui Nanwang Environmental Protection Technology Co., Ltd., have been included in the list of enterprises required to disclose environmental information by law[84] - Both companies have disclosed relevant reports in the enterprise environmental information disclosure system (Fujian/Anhui)[84] V. Social Responsibility The company operates legally, balancing economic and social benefits, with a focus on corporate governance, investor relations, employee welfare, and charitable contributions - The company strictly adheres to laws and regulations such as the "Company Law" and "Securities Law," continuously improving its corporate governance structure to promote standardized operations[85] - The company responds to investor inquiries through various channels, including phone, email, and the Shenzhen Stock Exchange's interactive platform, ensuring truthful, accurate, timely, fair, and complete information disclosure[86] - The company adheres to a "people-oriented" philosophy, respecting and safeguarding employee rights, prioritizing employee health and safety, establishing employee cafeterias and gyms, and organizing corporate culture activities[86] - During the reporting period, the company actively participated in charitable donations and other public welfare activities, with cumulative donations of CNY 0.122 million[86] Part V Significant Matters This section addresses various significant matters, including commitments, related party transactions, litigation, and other important events during the reporting period I. Commitments Fulfilled or Overdue by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period The company reported no commitments by its actual controller, shareholders, related parties, acquirers, or other committed parties that were fulfilled or overdue during or as of the end of the reporting period - The company's reporting period shows no commitments by its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled during the reporting period or overdue as of the end of the reporting period[88] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company The company reported no non-operating fund occupation by controlling shareholders or other related parties of the listed company during the reporting period - The company's reporting period shows no non-operating fund occupation by controlling shareholders or other related parties of the listed company[89] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[90] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[91] V. Explanation by the Board of Directors, Supervisory Committee, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[92] VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Prior Year The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[92] VII. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[92] VIII. Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[93] - The company had no other litigation matters during the current reporting period[93] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[94] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period - The company's reporting period shows no integrity issues concerning the company, its controlling shareholder, or actual controller[95] XI. Significant Related Party Transactions During the reporting period, the company engaged in routine operating related party transactions with Fujian Wallace Food Co., Ltd. and its controlled affiliates, primarily involving the sale of food packaging bags and non-woven bags, totaling CNY 101.77 million Related Party Transactions Related to Routine Operations | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (CNY 10,000) | Percentage of Similar Transactions | Approved Transaction Limit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Fujian Wallace Food Co., Ltd. and its controlled affiliates | Sale of goods | Sale of food packaging bags, non-woven bags | 10,177.38 | 13.10% | 35,000 | - The company had no related party transactions involving asset or equity acquisition or disposal during the reporting period[96] - The company had no related party transactions involving joint external investments during the reporting period[97] - The company had no related party debt and credit transactions during the reporting period[98] - The company had no other significant related party transactions during the reporting period[101] XII. Significant Contracts and Their Performance The company had no entrustment or contracting arrangements during the reporting period, but maintained several major property lease contracts and provided guarantees totaling CNY 130 million to subsidiaries - The company had no entrustment situations during the reporting period[102] - The company had no contracting situations during the reporting period[103] Major Property Lease Information | No. | Lessor | Lease Location | Purpose | Leased Area (㎡) | Lease Term | Usage Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Tongcheng Shuangxin Economic Development Zone Construction and Development Co., Ltd. | No. 8 Weiqi Road, Shuangxin Industrial Park, Tongcheng Economic Development Zone | Factory, warehouse, canteen, staff dormitory | 98,817.00 | 2024/07/01-2029/06/30 | Normal use | | 2 | Zhuhai Yinhai Technology Co., Ltd. | 4 Factory, No. 362 Dingwan 7th Road, Sanzao Town, Jinwan District, Zhuhai City | Factory, warehouse | 22,182.85 | 2021/10/01-2026/09/30 | Normal use | | 3 | Progress Luv2pak Int Ltd | 20 Tangiers Rd, North York, ON M3J 2B2 | Factory, warehouse | 41,528 sq ft | 2024/7/7-2028/6/30 | Normal use | | 4 | Fujian Taisu Trading Co., Ltd. | Huidong Industrial Zone (Dongqiao), Huian County, Quanzhou City | Factory, warehouse | 18,292.74 | 2025/01/01-2029/12/31 | Normal use | | 5 | Hubei Wallace Food Co., Ltd. | 4 Factory within Wallace Industrial Park, No. 1108 Gexin Avenue, Zoumalin | Factory, warehouse | 13,697 | 2020/10/13-2030/2/28 | Normal use | | 6 | Jingcheng Heyi Environmental Technology (Xianghe) Co., Ltd. | No. 16 Yuntai Road, Robot Town, Development Zone, Xianghe County, Hebei Province | Factory, warehouse | 12,867 | 2024/3/1-2027/2/28 | Normal use | | 7 | PT. Cermaimakmur Abadi International | Kaligentong Village, Gradagsani District, Boyolali County, Central Java Province, Indonesia | Factory, warehouse, office | 12,000 | 2024/11/1-2030/10/30 | Normal use | Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guaranteed Amount (CNY 10,000) | Actual Guaranteed Amount (CNY 10,000) | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Fujian Nanwang New Material Technology Co., Ltd. | 3,000 | 3,000 | 2 years | Yes | | Fujian Nanwang New Material Technology Co., Ltd. | 3,000 | 3,000 | 1 year | No | | Anhui Budaiwang Environmental Protection Technology Co., Ltd. | 10,000 | 10,000 | 1 year | No | | Total Approved Guarantee Amount for Subsidiaries in Current Period | 35,000 | | | | | Total Actual Guarantee Amount for Subsidiaries in Current Period | | 13,000 | | | | Total Approved Guarantee Amount for Subsidiaries as of Period-end | 35,000 | | | | | Total Actual Guarantee Balance for Subsidiaries as of Period-end | | 13,000 | | | | Ratio of Total Actual Guarantee Amount to Company's Net Assets | | 8.65% | | | - The company had no significant routine operating contracts during the reporting period[110] - The company had no other significant contracts during the reporting period[111] XIII. Explanation of Other Significant Matters The company reported no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[112] XIV. Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[113] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and holdings of directors, supervisors, and senior management I. Share Changes During the reporting period, the company's total share capital remained unchanged, while restricted shares increased by 50,000 units and unrestricted shares decreased by the same amount, primarily due to personnel changes and share repurchases Share Changes | Item | Number Before Change (shares) | Percentage Before Change | Increase/Decrease in Current Period (shares) | Number After Change (shares) | Percentage After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 94,842,500 | 48.61% | 50,000 | 94,892,500 | 48.64% | | Of which: Shares held by domestic natural persons | 43,967,500 | 22.54% | 50,000 | 44,017,500 | 22.56% | | II. Unrestricted Shares | 100,255,428 | 51.39% | -50,000 | 100,205,428 | 51.36% | | Of which: RMB ordinary shares | 100,255,428 | 51.39% | -50,000 | 100,205,428 | 51.36% | | III. Total Shares | 195,097,928 | 100.00% | 0 | 195,097,928 | 100.00% | - Ms. Han Chunmei's resignation led to an increase of 87,500 restricted shares, while Mr. Wang Xianfang's departure and subsequent six-month period resulted in the release of 37,500 restricted shares, totaling a net increase of 50,000 restricted shares[117] - The company completed its share repurchase on June 19, 2025, having cumulatively repurchased 1.77 million shares, accounting for 0.9088% of the total share capital, with a total transaction amount of CNY 20.02 million[118] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Kaisheng | 34,800,000 | 0 | 0 | 34,800,000 | Pre-IPO restricted shares | | Huian Huaying | 21,402,500 | 0 | 0 | 21,402,500 | Pre-IPO restricted shares | | Huian Chuanghui | 10,910,000 | 0 | 0 | 10,910,000 | Pre-IPO restricted shares | | Jinjiang Yongrui | 9,437,500 | 0 | 0 | 9,437,500 | Pre-IPO restricted shares | | Huian Zhonghui | 9,125,000 | 0 | 0 | 9,125,000 | Pre-IPO restricted shares | | Huang Rong | 3,400,000 | 0 | 0 | 3,400,000 | Pre-IPO restricted shares | | Chen Xiaofang | 2,875,000 | 0 | 0 | 2,875,000 | Pre-IPO restricted shares | | Chen Zhengli | 2,000,000 | 0 | 0 | 2,000,000 | Pre-IPO restricted shares | | Jinjiang Yongyue | 1,125,000 | 0 | 0 | 1,125,000 | Senior management restricted shares | | Han Chunmei | 262,500 | 0 | 87,500 | 350,000 | Senior management restricted shares | | Wang Xianfang | 150,000 | 37,500 | 0 | 112,500 | Senior management restricted shares | | Total | 95,967,500 | 37,500 | 87,500 | 96,017,500 | | II. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[121] III. Shareholder Numbers and Shareholding As of the end of the reporting period, the company had 13,673 ordinary shareholders, with Chen Kaisheng as the largest shareholder holding 17.84%, and the company's repurchase account holding 1.77 million shares - As of the end of the reporting period, the total number of ordinary shareholders was 13,673[123] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-end (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Kaisheng | Domestic Natural Person | 17.84% | 34,800,000 | 34,800,000 | 0 | | Huian Huaying | Domestic Non-state-owned Legal Person | 10.97% | 21,402,500 | 21,402,500 | 0 | | Huian Chuanghui | Domestic Non-state-owned Legal Person | 5.59% | 10,910,000 | 10,910,000 | 0 | | Jinjiang Yongrui | Domestic Non-state-owned Legal Person | 4.84% | 9,437,500 | 9,437,500 | 0 | | Huian Zhonghui | Domestic Non-state-owned Legal Person | 4.68% | 9,125,000 | 9,125,000 | 0 | | Huang Rong | Domestic Natural Person | 1.74% | 3,400,000 | 3,400,000 | 0 | | Tang Dan | Domestic Natural Person | 1.54% | 3,000,000 | 0 | 3,000,000 | | Chen Xiaofang | Domestic Natural Person | 1.47% | 2,875,000 | 2,875,000 | 0 | | Jinjiang Yongyue | Domestic Non-state-owned Legal Person | 1.40% | 2,740,000 | 1,125,000 | 1,615,000 | | Wenshi No. 1 | Domestic Non-state-owned Legal Person | 1.24% | 2,414,814 | 0 | 2,414,814 | - Chen Kaisheng is the executive partner of Jinjiang Yongrui and Huian Zhonghui, forming a concerted action group[123] - As of June 30, 2025, the company's special repurchase account held 1,773,100 shares[124] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[125] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder or actual controller did not change during the reporting period - The company's controlling shareholder did not change during the reporting period[126] - The company's actual controller did not change during the reporting period[127] VI. Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[128] Part VII Bond-Related Information This section provides information regarding the company's bond-related activities Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[130] Part VIII Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, and cash flow statements, along w