七彩化学(300758) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility, while forward-looking statements are not profit forecasts or substantive commitments, and no cash dividends, bonus shares, or capital reserve conversions are planned - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[2] - Forward-looking statements regarding future development strategies and operating plans are uncertain, not representing profit forecasts or substantive commitments[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Reference Documents Catalog Reference documents include signed financial statements, originals of all publicly disclosed company documents and announcements during the reporting period, and other relevant files - Reference documents include financial statements signed and sealed by the company's legal representative, chief accountant, and head of accounting department[8] - Originals of all company documents and announcements publicly disclosed on media designated by the China Securities Regulatory Commission during the reporting period[8] Definitions This section defines common terms used in the report, including company names, subsidiaries, associates, pigment types (inorganic, organic, high-performance, classic, solvent dyes), pigment intermediates, and the reporting period, ensuring accurate understanding Major Company and Related Party Definitions | Definition Item | Definition Content | | :--- | :--- | | Hifichem, the Company or Company | Anshan Hifichem Co., Ltd. | | Huifeng Investment | Anshan Huifeng Investment Group Co., Ltd., controlling shareholder | | Dongying Tianzheng | Dongying Tianzheng Chemical Co., Ltd., subsidiary | | Hifichem Material | Liaoning Hifichem Material Technology Co., Ltd., subsidiary | | Shangyu Xinli | Shaoxing Shangyu Xinli Chemical Co., Ltd., subsidiary | | Jintai Lihua | Jining Jintai Lihua Chemical Technology Co., Ltd., subsidiary | | Shandong Gengcai | Shandong Gengcai New Material Technology Co., Ltd., subsidiary | | Shanghai Gengcai | Shanghai Gengcai New Material Technology Co., Ltd., subsidiary | | Hifichem Hong Kong | Hifichem (Hong Kong) Co., Ltd., subsidiary | | Anshan Huiyou | Anshan Huiyou Intelligent Equipment Technology Co., Ltd., subsidiary | | Shangyu Daxin | Shaoxing Shangyu Daxin Color Chemical Co., Ltd., grandchild company | | Tiancai Material | Liaoning Tiancai Material Co., Ltd., grandchild company | | Yuanzhou Technology | Hangzhou Yuanzhou Material Technology Co., Ltd., grandchild company | | Shandong Shengcai | Shandong Shengcai Ecological Technology Co., Ltd., subsidiary | | Jintai Supply Chain | Jining Jintai Lihua Supply Chain Management Co., Ltd., grandchild company | | Jintai New Material | Shandong Jintai Lihua New Material Technology Co., Ltd., grandchild company | | Luning New Material | Hainan Luning New Material Trading Co., Ltd., grandchild company | | Yanxin Company | Yanxin Co., Ltd., grandchild company | | HIFICHEM S.A. | HIFICHEM S.A., grandchild company | | HIFICHEM (SINGAPORE) PTE.LTD. | HIFICHEM (SINGAPORE) PTE.LTD., grandchild company | | Guizhou Weihua | Guizhou Weihua Technology Co., Ltd., associate company | | Dongying Beigang | Dongying Beigang Environmental Protection Technology Co., Ltd., associate company | | Anshan Huihong | Anshan Huihong Pigment Technology Co., Ltd., associate company | | Lutai Huasheng | Shandong Lutai Huasheng Chemical Technology Co., Ltd., associate company | | Huacai Guangneng | Huacai Guangneng Technology (Yunnan) Co., Ltd., associate company | | Chuanliu Changfeng | Fenyu Chuanliu Changfeng New Material Investment Partnership (Limited Partnership) | | Ruihan Thermal Power | Anshan Huifeng Ruihan Thermal Power Co., Ltd. | | Meilian New Material | Guangdong Meilian New Material Co., Ltd. | | Yingchuang Sanzheng | Yingchuang Sanzheng (Yingkou) Fine Chemical Co., Ltd. | | Meicai New Material | Liaoning Meicai New Material Co., Ltd. | | Zhihe Environmental Protection | Shaoxing Zhihe Environmental Protection Technology Co., Ltd. | | Dekai Bio | Jining Dekai Biotechnology Co., Ltd. | Major Product and Industry Terminology Definitions | Definition Item | Definition Content | | :--- | :--- | | Pigment | A colored substance that can color various materials; an indispensable raw material for manufacturing coatings, inks, oil paints, cosmetic oils, colored papers, etc.; also used for filling and coloring plastics, rubber products, and synthetic fiber dopes | | Inorganic Pigment | Generally metal salts or oxides, subdivided into oxides, chromates, sulfates, silicates, borates, etc.; inorganic pigments have excellent thermal and light stability, are inexpensive, and widely used, but varieties are limited, colors are not vibrant enough, and some contain heavy metals | | Organic Pigment | Organic compounds whose primary function is color, distinguished from organic dyes; during the coloring process and in the final colored material, they exist as dispersed particles; usually have high tinting strength, particles are easy to grind and disperse, less prone to sedimentation, and colors are more vibrant, but lightfastness, heat resistance, and weather resistance are slightly poorer; organic pigments are widely used for coloring inks, coatings, rubber products, plastic products, stationery, and building materials | | Dye | Organic compounds whose primary function is color; dyes are mainly applied to textiles, and also used for coloring paper and leather; distinguished from organic pigments, the dyeing process involves dye dissolution → dyeing → fixation | | High-Performance Pigment/High-Performance Organic Pigment (HPP) | A class of organic pigments with excellent multi-faceted properties; firstly, the pigment itself possesses multiple excellent physical and chemical properties (lightfastness, weather resistance, heat resistance, organic solvent resistance, etc.) and chromatic properties (vibrant color, high tinting strength, etc.); secondly, the pigment has excellent application properties (excellent dispersibility in application media, excellent rheology and storage stability in fluid media); mainly used in coatings and plastics, as well as outdoor applications, priced higher than Classic Pigments (CLP) | | Classic Pigment/Classic Organic Pigment (CLP) | A class of organic pigments, typically including lake pigments, some naphthol pigments, benzidine yellow pigments, pyrazolone pigments, and monoazo yellow pigments; their fastness properties (mainly weather and lightfastness) are generally inferior to high-performance pigments (HPP), mainly used in inks and indoor applications, priced lower than HPP | | Solvent Dye | Dyes soluble in oils or organic solvents; solvent dyes can be divided into oil-soluble and alcohol-soluble categories, the former mainly used for coloring petroleum products and oils, the latter mostly for coloring inks and plastic products | | Pigment Intermediate | Various aromatic hydrocarbon derivatives used for synthesizing organic pigments; derived from basic raw materials such as benzene, toluene, naphthalene, and anthracene from coal chemical and petrochemical industries, produced through a series of organic synthesis unit processes | Part II Company Profile and Key Financial Indicators I. Company Profile Anshan Hifichem Co., Ltd., stock ticker 'Hifichem' (300758), is listed on the Shenzhen Stock Exchange, with Xu Huixiang as its legal representative Company Basic Information | Stock Abbreviation | Hifichem | | :--- | :--- | | Stock Code | 300758 | | Stock Exchange for Listing | Shenzhen Stock Exchange | | Company's Chinese Name | 鞍山七彩化学股份有限公司 | | Company's Legal Representative | Xu Huixiang | II. Contact Persons and Information The company's Board Secretary is Gao Tingda and Securities Affairs Representative is Sun Liang, both sharing the same contact address, phone, fax, and email Company Contact Information | Item | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Gao Tingda | Sun Liang | | Contact Address | No. 8, No. 1 Road, Economic Development Zone, Teng'ao Town, Haicheng City, Anshan City, Liaoning Province | No. 8, No. 1 Road, Economic Development Zone, Teng'ao Town, Haicheng City, Anshan City, Liaoning Province | | Phone | 0412-8386166 | 0412-8386166 | | Fax | 0412-8386366 | 0412-8386366 | | Email | gaotingda@hifichem.com | sunliang@hifichem.com | III. Other Information During the reporting period, there were no changes in the company's contact information, information disclosure and filing locations, or registration details, with specifics available in the 2024 annual report - The company's registered address, office address, website, and email contact information remained unchanged during the reporting period[14] - The stock exchange website, media name, URL for semi-annual report disclosure, and the report's filing location remained unchanged during the reporting period[16] - The company's registration status remained unchanged during the reporting period[17] IV. Key Accounting Data and Financial Indicators This period, operating revenue grew by 2.75%, but net profit attributable to shareholders and non-recurring net profit declined by 21.91% and 3.42% respectively; operating cash flow significantly dropped by 105.85% due to increased year-end bonus and tax payments, and a shift in procurement settlement methods, while total assets and net assets attributable to shareholders increased Key Accounting Data and Financial Indicators (Year-on-Year) | Item | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 759,058,062.05 | 738,731,363.71 | 2.75% | | Net Profit Attributable to Listed Company Shareholders | 52,474,291.45 | 67,201,163.44 | -21.91% | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 59,611,747.57 | 61,723,751.59 | -3.42% | | Net Cash Flow from Operating Activities | -3,968,223.84 | 67,785,249.61 | -105.85% | | Basic Earnings Per Share | 0.13 | 0.17 | -23.53% | | Diluted Earnings Per Share | 0.13 | 0.17 | -23.53% | | Weighted Average Return on Net Assets | 3.01% | 4.10% | -1.09% | Key Accounting Data and Financial Indicators (Period-End) | Item | End of Current Reporting Period (CNY) | End of Prior Year (CNY) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 3,867,813,515.05 | 3,722,735,799.91 | 3.90% | | Net Assets Attributable to Listed Company Shareholders | 1,768,936,822.35 | 1,713,599,210.47 | 3.23% | - Net cash flow from operating activities decreased by 105.85% year-on-year, primarily due to increased payments for prior year-end bonuses and taxes, and a shift in some procurement settlement methods from acceptance bills to wire transfers during this reporting period[18] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under international or overseas accounting standards and Chinese accounting standards - During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards[19][20] - During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese Accounting Standards[21] VI. Non-Recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the period amounted to -CNY 7,137,456.12, primarily comprising non-current asset disposal losses, fair value change losses, and income tax impacts, with non-current asset disposal losses at -CNY 5,370,111.59 and fair value change losses at -CNY 3,862,908.83 Non-Recurring Gains and Losses Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Non-current asset disposal gains and losses (including the write-off portion of asset impairment provisions) | -5,370,111.59 | | Government grants recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 877,117.77 | | Gains and losses from changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and financial liabilities, excluding effective hedging activities related to normal business operations | -3,862,908.83 | | Other non-operating income and expenses apart from the above items | -35,591.98 | | Less: Income tax impact | -1,252,149.15 | | Impact on minority interests (after tax) | -1,889.36 | | Total | -7,137,456.12 | - The company has no other profit and loss items meeting the definition of non-recurring gains and losses, nor does it classify non-recurring items as recurring gains and losses[23][24] Part III Management Discussion and Analysis I. Main Business Activities During the Reporting Period The company develops around a strategic model to become a global leader in advanced organic new materials, based on high-performance organic pigments and ammonia oxidation, forming three industrial systems: high-performance organic pigments, special new materials, and material monomers, with products widely used in inks, coatings, plastics, and special films; during the reporting period, the company continued to grow in high-performance organic pigments and actively expanded into new materials like PPDI-type polyurethane elastomers and special nylon (MXD6), with MXD6 already having a 3,000 tons/year capacity and planning for 30,000 tons/year - The company's strategy focuses on high-performance organic pigments and advanced organic new materials, forming three major industrial systems: high-performance organic pigments, special new materials, and material monomers[25] - Product application areas are extensive, including inks, coatings, plastics, special films, engineering machinery, electronics, and photovoltaic cells[25] (1) Main Business Segment China's organic pigment industry, the world's largest producer, faces intense competition with large enterprises dominating high-end products and small and medium-sized enterprises competing in mid-to-low-end markets; demand is shifting towards high-performance, eco-friendly organic pigments for coatings, inks, and plastics, with future trends focusing on product structure optimization, mid-to-high-end transition, and industry consolidation driven by environmental regulations - China's organic pigment industry is the world's largest producer, characterized by intense market competition, with large enterprises dominating high-end products and small and medium-sized enterprises concentrated in the mid-to-low-end market[26] - Upgraded market demand is driving an increase in the proportion of high-performance and environmentally friendly organic pigments, with companies increasing R&D investment to meet downstream industries' demand for high-quality pigments[27] - Organic pigments are primarily used in inks (40%), coatings (28%), and plastics (27%) industries[29] - Industry trends include product structure optimization, a shift towards mid-to-high-end products, accelerated consolidation due to environmental regulations, with high-performance organic pigments becoming the main substitute for lead-chrome pigments, driving continuous market demand growth[34] (2) New Materials Business Segment The company actively develops PPDI-type polyurethane elastomers (TPU) and special nylon (MXD6) in its new materials segment; PPDI products have gained customer recognition and sales in electronics, photovoltaics, and engineering machinery, with the business model evolving to provide system solutions; MXD6, with its high barrier and rigidity properties, shows significant potential in food and beverage packaging and modified engineering plastics, with the company possessing a 3,000 tons/year capacity and planning for 30,000 tons/year, while also strategically developing upstream key intermediates - PPDI-type polyurethane elastomer (TPU) products have passed customer evaluation and achieved sales, primarily applied in emerging fields such as electronics, photovoltaics, and engineering machinery[36] - The company's PPDI business model has upgraded from mere product supply to providing polyurethane system solutions, enhancing customer trust and stickiness[36] - Special nylon (MXD6), due to its high gas barrier properties, high rigidity, good thermal stability, and low water absorption, has high application potential in food and beverage packaging and modified engineering plastics (e.g., automotive, electronics, and electrical appliances)[38][39] - The company already possesses a 3,000 tons/year MXD6 production capacity and plans for a 30,000 tons/year MXD6 capacity, along with upstream key monomer and intermediate capacities, to break the monopoly of overseas manufacturers[40] (3) Company's Position in the Industry Chain The company's main business supply chain upstream involves the petroleum and chemical industries, midstream products include classic and high-performance organic pigments, and downstream applications are extensive across coatings, inks, plastics, and rubber, ultimately serving various industrial manufacturing sectors like food packaging, LCD electronics, automotive, and construction - The upstream of the organic pigment industry consists of the petroleum and chemical industries, while midstream products include classic organic pigments and high-performance organic pigments[41] - Downstream application areas are extensive, covering coatings, inks, plastics, rubber, synthetic fibers, and ultimately applied in industrial manufacturing fields such as food packaging, LCD electronics, cosmetics, printing, automotive, and construction[41] IV. Industry Position With a product structure primarily based on benzimidazolone series high-performance organic pigments, the company holds a significant position in the domestic high-performance organic pigment market and strong competitive advantages internationally, driven by continuous R&D, process improvement, and efficient supply chain management - The company has established a product structure primarily featuring benzimidazolone series high-performance organic pigments, supplemented by solvent dyes and intermediates[43] - Through continuous technological R&D, process improvement, meticulous quality control, and efficient supply chain management, the company effectively reduces production costs, enhances product cost-effectiveness, and strengthens market competitiveness[43] - The company holds a significant position in the domestic high-performance organic pigment market and possesses strong competitive advantages in international markets[43] V. Cyclicality, Regionality, and Seasonality of the Industry The solvent dye and high-performance organic pigment industries, primarily serving inks, coatings, plastics, and rubber, exhibit weak cyclicality; production enterprises are mainly concentrated in the Yangtze River Delta region, but product manufacturing and sales show no significant seasonal characteristics - The solvent dye and high-performance organic pigment industries exhibit weak cyclicality, primarily applied in fields such as inks, coatings, plastics, and rubber[44] - China's dye and pigment manufacturers are mainly concentrated in the Yangtze River Delta region, including Jiangsu, Zhejiang, and Shanghai[44] - The production and sales of dyes and pigments exhibit weak seasonal characteristics[44] VI. Business Model The company has established efficient procurement, production, and sales models: procurement involves annual planning and monthly tender-based negotiations with qualified suppliers based on sales and inventory; production is primarily demand-driven, supplemented by inventory for quick delivery, utilizing shared production lines for efficiency; sales are direct buy-out, mainly through distribution, covering domestic and international markets, with direct sales to large overseas clients and through foreign distributors for smaller ones - Procurement model: An annual procurement plan is formulated at the beginning of each year, with monthly raw material purchases from qualified suppliers through bidding and negotiation based on sales and inventory, accompanied by strict quality inspection and supplier screening[45] - Production model: Primarily make-to-order, combining orders and inventory to arrange production, maintaining a certain level of inventory for quick customer response; for products with smaller output but similar processes, shared production lines are utilized[46][47] - Sales model: Direct buy-out sales, with customers categorized as manufacturing (direct sales) and trading (distributors); international sales involve direct sales to large clients and cooperation with overseas distributors for smaller foreign clients[48][49] II. Analysis of Core Competencies The company's core competencies include environmentally friendly, vibrant, and high-fastness high-performance organic pigments with significant market potential; deep R&D expertise enabling industrialization of benzimidazolone series products and mastery of core intermediate production, effectively controlling supply chain costs; extensive domestic and international premium client resources and stable strategic partnerships; an experienced management and core technical team; a comprehensive product testing and after-sales service system; multiple advantages in location, resources, industry, and policy; and a commitment to green development with ISO 14001 and EHS compliant environmental management systems ensuring safe production - Core product advantages: High-performance organic pigments are environmentally friendly, vibrant, and possess high light/weather fastness, primarily used in demanding ink, plastic, and coating coloration fields, with immense market potential[50] - Process accumulation and technological R&D advantages: The company was among the first in China to industrialize benzimidazolone series products, mastering core technologies such as solvent recovery, surface treatment, and non-benzidine groups, ensuring stable product quality, strong cost competitiveness, and developing environmentally friendly water-based high-performance organic pigments[51][52] - Core intermediate advantages: Mastering the production technology and achieving mass production of core intermediates for benzimidazolone series products (e.g., AABI) and isoindoline series products (e.g., phthalonitrile), effectively controlling the industry chain and costs[53] - Customer resource advantages: Leveraging capacity, quality, and cost advantages, the company has gained recognition from numerous powerful enterprises both domestically and internationally, developing stable strategic partnerships and continuously strengthening customer loyalty[54] - Management team advantages: Assembling senior innovative talents, including industry experts, PhDs, and Masters, along with an experienced management team, with core R&D personnel holding multiple patents and national-level scientific research project experience[55] - Product testing and after-sales service advantages: Established a Quality Department and Application Service Department, equipped with advanced testing equipment and scientific testing technologies, providing pre-sales technical support and after-sales service to ensure products meet customer needs[56] - Location and policy advantages: Located in the Anshan Petrochemical Industrial Base in Liaoning, recognized as a 'National Torch Anshan Fine Organic New Materials Characteristic Industrial Base,' and benefiting from national policies prioritizing the development of 'carcinogen-free aromatic amine dyes, pigments, and green coatings' industries[57] - Environmental advantages: Adhering to green development, the company has established ISO 14001 environmental management system and EHS management system, with 'three wastes' treatment meeting national standards, investing in high-standard safety detection and alarm systems and explosion-proof facilities, ensuring safe production, which is a significant competitive advantage in the international market[58][59] III. Main Business Analysis The main business analysis covers an overview of the company's primary operations, year-on-year changes in key financial data, and products or services accounting for over 10% of revenue; during the reporting period, operating revenue increased by 2.75%, but net profit attributable to the parent company decreased by 21.91%, and net cash flow from operating activities fell by 105.85%, with dye and pigment business having the highest revenue share and a gross profit margin of 35.72% - There were no significant changes in the company's profit composition or sources during the reporting period[62] Year-on-Year Changes in Key Financial Data | Item | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 759,058,062.05 | 738,731,363.71 | 2.75% | | | Operating Cost | 516,801,710.86 | 504,905,791.51 | 2.36% | | | Selling Expenses | 19,389,744.58 | 17,758,567.22 | 9.19% | | | Administrative Expenses | 66,182,866.33 | 63,159,374.51 | 4.79% | | | Financial Expenses | 18,418,691.96 | 17,913,557.02 | 2.82% | | | Income Tax Expense | 4,053,756.33 | 7,749,737.14 | -47.69% | | | R&D Investment | 50,495,840.12 | 43,087,978.76 | 17.19% | | | Net Cash Flow from Operating Activities | -3,968,223.84 | 67,785,249.61 | -105.85% | Primarily due to increased payments for prior year-end bonuses and taxes, and a shift in some procurement settlement methods from acceptance bills to wire transfers during this reporting period | | Net Cash Flow from Investing Activities | -127,989,338.15 | -46,770,092.14 | -173.66% | Primarily due to increased capital expenditures for engineering projects during this period | | Net Cash Flow from Financing Activities | 146,887,564.12 | 50,719,955.98 | 189.61% | Primarily due to increased borrowings during this period | | Net Increase in Cash and Cash Equivalents | 18,434,173.48 | 69,535,086.20 | -73.49% | | Products or Services Accounting for Over 10% of Revenue | Item | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dyes and Pigments | 618,305,201.64 | 397,444,148.39 | 35.72% | 3.09% | 2.33% | 0.48% | | Intermediates and Material Monomers | 134,863,086.70 | 115,199,593.17 | 14.58% | 7.11% | 7.87% | -0.60% | Composition of Total Profit | Item | Amount (CNY) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,290,085.44 | 5.41% | Primarily from cash dividends received from Fenyu Chuanliu Changfeng | No | | Fair Value Change Gains and Losses | -7,294,070.37 | -11.99% | Primarily due to fair value changes in other non-current financial asset investments | No | | Asset Impairment | -15,161,070.45 | -24.93% | Primarily due to inventory depreciation provision | Yes | | Non-Operating Income | 437,750.89 | 0.72% | Primarily from scrap disposal income | No | | Non-Operating Expenses | 5,341,908.31 | 8.78% | Primarily from fixed asset retirement losses | No | IV. Non-Main Business Analysis The company had no non-main business analysis content during the reporting period, indicating that non-main businesses did not significantly impact overall operations V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 3.90% year-on-year, and net assets attributable to shareholders grew by 3.23%; in asset composition, construction in progress significantly increased by 2.90%, indicating greater investment in project construction; on the liability side, non-current liabilities due within one year increased by 4.46%, showing rising short-term repayment pressure; the company holds financial assets and liabilities measured at fair value, with some asset rights restricted, primarily for loan collateral and pledges Significant Changes in Asset Composition | Item | Period-End Amount (CNY) | Proportion of Total Assets | Prior Year-End Amount (CNY) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 315,849,779.35 | 8.17% | 295,101,605.87 | 7.93% | 0.24% | | Accounts Receivable | 261,228,454.19 | 6.75% | 263,271,775.15 | 7.07% | -0.32% | | Inventories | 405,273,496.84 | 10.48% | 384,822,046.17 | 10.34% | 0.14% | | Long-Term Equity Investments | 518,723,821.63 | 13.41% | 503,850,041.82 | 13.53% | -0.12% | | Fixed Assets | 1,022,330,147.65 | 26.43% | 1,052,701,707.33 | 28.28% | -1.85% | | Construction in Progress | 398,368,051.07 | 10.30% | 275,584,511.30 | 7.40% | 2.90% | | Right-of-Use Assets | 13,876,013.37 | 0.36% | 16,218,545.71 | 0.44% | -0.08% | | Short-Term Borrowings | 266,980,302.69 | 6.90% | 273,362,624.72 | 7.34% | -0.44% | | Contract Liabilities | 2,976,613.53 | 0.08% | 7,025,117.65 | 0.19% | -0.11% | | Long-Term Borrowings | 459,105,135.26 | 11.87% | 416,300,000.00 | 11.18% | 0.69% | | Lease Liabilities | 10,398,555.26 | 0.27% | 13,183,244.42 | 0.35% | -0.08% | | Notes Receivable | 205,111,828.80 | 5.30% | 234,092,498.71 | 6.29% | -0.99% | | Intangible Assets | 248,943,209.70 | 6.44% | 255,859,321.82 | 6.87% | -0.43% | | Accounts Payable | 153,288,470.04 | 3.96% | 165,239,785.97 | 4.44% | -0.48% | | Non-Current Liabilities Due Within One Year | 389,333,117.20 | 10.07% | 208,856,010.44 | 5.61% | 4.46% | | Other Current Liabilities | 147,291,959.73 | 3.81% | 182,860,318.83 | 4.91% | -1.10% | | Other Non-Current Liabilities | 385,750,000.00 | 9.97% | 385,750,000.00 | 10.36% | -0.39% | - The company had no significant overseas assets during the reporting period[68] Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gains and Losses for the Period (CNY) | Amount Purchased During the Period (CNY) | Period-End Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets (excluding derivative financial assets) | 4,405,659.90 | -900,785.53 | 0 | 3,719,917.95 | | Other Non-Current Financial Assets | 68,844,887.73 | -6,393,284.84 | 6,000,000.00 | 68,451,602.89 | | Subtotal of Financial Assets | 73,250,547.63 | -7,294,070.37 | 6,000,000.00 | 72,171,520.84 | | Trading Financial Liabilities | 0.00 | 0 | 0 | 230,196.00 | - At the end of the reporting period, the company's total restricted asset rights amounted to CNY 667,639,288.07, with restrictions on monetary funds, notes receivable, fixed assets, intangible assets, and long-term equity investments, primarily for deposits, endorsed notes, mortgage loans, and pledged loans[72] VI. Investment Analysis During the reporting period, the company's total investment decreased by 16.79% year-on-year, with no significant equity investments; ongoing non-equity investments primarily focused on workshop renovation, new production lines, and new auxiliary production projects, with substantial cumulative investments and progress rates of 60%, 50%, and 80% respectively; the company holds financial assets measured at fair value, mainly funds and equity instrument investments, with negative fair value changes this period; the company also engages in speculative USD swap derivative investments and has established risk control measures Investment Amount During the Reporting Period | Investment Amount for the Reporting Period (CNY) | Investment Amount for the Prior Year Period (CNY) | Change Rate | | :--- | :--- | :--- | | 86,513,147.79 | 103,966,511.19 | -16.79% | - The company had no significant equity investments during the reporting period[74] Significant Ongoing Non-Equity Investments During the Reporting Period | Project Name | Amount Invested in Current Reporting Period (CNY) | Cumulative Actual Investment Amount as of Period-End (CNY) | Project Progress | | :--- | :--- | :--- | :--- | | Workshop Renovation Project | 13,813,627.83 | 64,536,948.56 | 60.00% | | New Production Line Project | 95,575,778.55 | 293,959,915.77 | 50.00% | | New Auxiliary Production Project | 11,952,349.61 | 19,032,823.92 | 80.00% | | Total | 121,341,755.99 | 377,529,688.25 | | Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (CNY) | Fair Value Change Gains and Losses for the Period (CNY) | Amount Purchased During the Reporting Period (CNY) | Period-End Amount (CNY) | | :--- | :--- | :--- | :--- | :--- | | Funds | 3,655,087.90 | 79,982.47 | 0 | 3,719,917.95 | | USD Swaps | 750,572.00 | -980,768.00 | 0 | 0 | | Equity Instrument Investments | 68,844,887.73 | -6,393,284.84 | 6,000,000.00 | 68,451,602.89 | | Total | 73,250,547.63 | -7,294,070.37 | 6,000,000.00 | 72,171,520.84 | - The company had no use of raised funds during the reporting period[79] - The company holds speculative USD swap derivative investments, with the period-end investment amount accounting for 4.78% of the company's net assets[82][83] - The company has established risk control measures, including the finance department's responsibility for risk assessment, selecting highly liquid and controllable financial instruments, pre-determining risk response plans and decision-making mechanisms, and regular audits by the audit department[84] - The company had no entrusted loans during the reporting period[85] VII. Significant Asset and Equity Sales The company did not undertake any significant asset or equity sales during the reporting period - The company did not sell any significant assets during the reporting period[86] - The company did not sell any significant equity during the reporting period[87] VIII. Analysis of Major Holding and Associate Companies The company's main subsidiaries, Dongying Tianzheng Chemical, Shangyu Xinli, and Jintai Lihua, significantly contributed to revenue and net profit in pigment intermediates, pigment manufacturing and sales, and material monomer production; during the reporting period, the company established a new wholly-owned grandchild company, HIFICHEM (SINGAPORE) PTE.LTD., which had no material impact on overall operations or performance Financial Performance of Major Subsidiaries | Company Name | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dongying Tianzheng | Pigment intermediates | 15,000,000.00 | 329,470,280.71 | 300,227,664.95 | 73,361,150.53 | 18,185,409.85 | 15,731,427.20 | | Shangyu Xinli | Pigment manufacturing and sales | 30,620,000.00 | 585,714,263.83 | 356,393,464.84 | 184,124,603.58 | 31,462,235.76 | 26,685,302.39 | | Jintai Lihua | Primarily produces material monomer products | 20,000,000.00 | 264,486,663.60 | 173,547,631.29 | 102,757,106.50 | 1,345,696.72 | 1,295,344.84 | - During the reporting period, the company established a new wholly-owned grandchild company, HIFICHEM (SINGAPORE) PTE.LTD., which had no significant impact on overall production, operations, or performance[87] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[89] X. Risks Faced by the Company and Countermeasures The company faces multiple risks including environmental, production safety, market, and technology loss; to mitigate environmental risks, it actively improves processes, strengthens governance research, and promotes clean production; for production safety, a three-tier safety management model, enhanced on-site management, and employee training are in place; market risks are addressed by strengthening cost accounting, optimizing equipment, and tracking raw material prices; and technology loss risks are managed through patent application plans and strict confidentiality systems - Environmental risks: As a fine chemical industry company, it faces 'three wastes' emission and comprehensive treatment issues, potentially leading to environmental penalties or increased costs due to stricter environmental standards; the company mitigates these risks through process improvement, enhanced governance research, and promoting cleaner production[89] - Production safety risks: The use of flammable, explosive, strong acid, and strong alkali substances in production poses safety accident risks; the company has established a three-tier safety management model, strengthened on-site management, and increased safety investments and employee training[90] - Market risks: Fluctuations in raw material prices, intensified industry competition, and reduced downstream market demand may lead to a decline in profitability; the company addresses these by strengthening cost accounting, optimizing equipment configuration, and tracking raw material market prices[91][92] - Technology loss risks: If technological development and application capabilities fail to meet market demand, or if core technical personnel are lost, the company's technological advantages may be compromised; the company protects its core technologies through patent applications and strict confidentiality systems[93] XI. Registration Form for Investor Relations Activities During the Reporting Period On May 8, 2025, the company hosted investors via an online platform for communication, and the related activity record form has been disclosed on Cninfo.com.cn - On May 8, 2025, the company hosted investors through an online communication platform[94] - The investor relations activity record form has been disclosed on Cninfo.com.cn[94] 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[95] - The company did not disclose a valuation enhancement plan during the reporting period[96] XIII. Implementation of 'Quality and Return Dual Improvement' Action Plan The company did not disclose an announcement regarding the 'Quality and Return Dual Improvement' action plan during the reporting period - The company did not disclose an announcement regarding the 'Quality and Return Dual Improvement' action plan during the reporting period[97] Part IV Corporate Governance, Environment and Society I. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period, with details available in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[98] II. Profit Distribution and Capital Reserve Conversion to Share Capital for the 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[99] 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, nor their implementation, during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor their implementation, during the reporting period[99] IV. Environmental Information Disclosure The company and its four major subsidiaries, Anshan Hifichem, Dongying Tianzheng Chemical, Jining Jintai Lihua Chemical, and Shaoxing Shangyu Xinli Chemical, are included in the list of enterprises required to disclose environmental information, with their reports accessible via provincial ecological environment department systems - The company and its 4 major subsidiaries are included in the list of enterprises required to disclose environmental information by law[100] Enterprises Included in the List of Environmental Information Disclosure | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Anshan Hifichem Co., Ltd. | Liaoning Provincial Department of Ecology and Environment - Public Services - Enterprise Environmental Information Disclosure System | | 2 | Dongying Tianzheng Chemical Co., Ltd. | Shandong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 3 | Jining Jintai Lihua Chemical Technology Co., Ltd. | Shandong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 4 | Shaoxing Shangyu Xinli Chemical Co., Ltd. | Zhejiang Provincial Department of Ecology and Environment - Public Services - Enterprise Environmental Information Disclosure System | V. Social Responsibility As a national 'Green Factory,' the company upholds green, safe, and sustainable development principles, aiming to be a green, professional, efficient, and environmentally friendly enterprise; it protects shareholder rights through robust corporate governance, timely information disclosure, and investor returns; safeguards employee rights via regular health checks, welfare systems, cultural activities, and comprehensive training; ensures customer rights by providing pre-sales solutions, transparency, technical support, and after-sales service; and fulfills other social responsibilities through ethical operations, active tax contributions, employment promotion, technological innovation, and public welfare participation - Company mission: As a national 'Green Factory,' the company adheres to green, safe, and sustainable development, driving green industry with innovation, committed to becoming a green, professional, efficient, and environmentally friendly enterprise, sharing development achievements with all stakeholders[101] - Shareholder rights protection: Improving corporate governance structure, strengthening internal controls, timely, accurate, and complete information disclosure, fair treatment of investors, valuing investment returns, and actively implementing cash dividend policies[102] - Employee rights protection: Emphasizing humanistic care, organizing regular health check-ups, establishing welfare systems, enriching cultural and sports activities; building comprehensive internal and external training systems to enhance employee skills and quality[103][104] - Customer rights protection: Adhering to a 'customer-centric' philosophy, providing pre-sales solution development, ensuring right to know during sales, and after-sales service, promptly handling customer complaints, and improving customer satisfaction[105] - Other social responsibilities: Operating with integrity, abiding by laws and regulations, actively paying taxes, promoting employment; committed to green environmental protection, energy saving, and emission reduction through technological innovation; actively participating in public welfare initiatives such as donations for education and poverty alleviation[106] Part V Significant Matters I. Fulfilled and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company's actual controllers, shareholders, and related parties timely fulfilled all commitments made during initial public offerings or refinancing, covering aspects such as non-competition, related-party transactions, fund occupation, share reduction, dividend policy, and prospectus truthfulness, with no overdue unfulfilled commitments as of the end of the reporting period - The company's actual controllers, shareholders, and related parties timely fulfilled all commitments made during initial public offerings or refinancing within the reporting period[117] - Commitments covered various aspects including non-competition, related-party transactions, fund occupation, share reduction, dividend policy, and the truthfulness of the prospectus[108][109][111][112][113][114][115][116] - As of the end of the reporting period, there were no overdue unfulfilled commitments[117] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[118] 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[119] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[120] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's 'Non-Standard Audit Report' for the Current Period During the reporting period, there were no explanations from the Board of Directors, Supervisory Board, or Audit Committee regarding a 'non-standard audit report' from the accounting firm for this period VI. Explanations by the Board of Directors on the 'Non-Standard Audit Report' for the Previous Year During the reporting period, there were no explanations from the Board of Directors regarding the 'non-standard audit report' for the previous year VII. Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[121] VIII. Litigation Matters The company is involved in a civil lawsuit with Senneco Chemical (Shanghai) Co., Ltd. concerning trade secret infringement, where the plaintiff seeks cessation of infringement and CNY 200 million in economic damages; the company asserts its technology was legally acquired and independently developed, denying infringement; as of the reporting period end, the case has not yet gone to trial, making it difficult to accurately assess the impact on profit, but a response team has been formed, and timely disclosure of progress is committed Significant Litigation and Arbitration Matters | Litigation (Arbitration) Basic Information | Amount Involved (CNY) | Provision for Estimated Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Execution Status | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Senneco Chemical (Shanghai) Co., Ltd. filed a civil lawsuit against the company for trade secret infringement | 200,000,000 | No | Not yet commenced trial | Not applicable | Not applicable | June 26, 2025 | Cninfo.com.cn (www.cninfo.com.cn) | - Plaintiff Senneco Chemical (Shanghai) Co., Ltd. requested the company to cease infringing on trade secrets and jointly compensate for economic losses of CNY 200 million[198] - The company believes the technology involved in the case was obtained through legal and compliant channels and developed independently based on its own technological accumulation, with no infringement occurring[198] - As of the end of the reporting period, the relevant judicial proceedings have not yet entered the trial stage, making it difficult for the company to accurately assess the specific impact on profit[198] - The company has assembled a professional response team, will actively advance various response efforts, and timely fulfill its information disclosure obligations[198] 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[123] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[124] XI. Significant Related-Party Transactions During the reporting period, the company had no related-party transactions concerning daily operations, asset or equity acquisitions/disposals, joint external investments, related-party creditor-debtor relationships, or financial dealings with affiliated finance companies, nor any other significant related-party transactions - The company had no related-party transactions related to daily operations during the reporting period[124] - The company had no related-party transactions involving asset or equity acquisitions or sales during the reporting period[125] - The company had no related-party transactions involving joint external investments during the reporting period[126] - There were no related-party creditor-debtor relationships within the company during the reporting period[127] - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated finance companies, or between the company's controlled finance companies and related parties[128][130] - The company had no other significant related-party transactions during the reporting period[131] XII. Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters; it provided significant guarantees for subsidiaries, including loan and finance lease guarantees for Jining Jintai Lihua Chemical Technology Co., Ltd. and Shandong Gengcai New Material Technology Co., Ltd., totaling CNY 280 million; there were no significant daily operating contracts or other major contracts during the period - The company had no entrustment, contracting, or leasing situations during the reporting period[132][133][134] Significant Guarantees Provided by the Company to Subsidiaries | Guaranteed Entity Name | Guarantee Amount (CNY) | Actual Guarantee Amount (CNY) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Jining Jintai Lihua Chemical Technology Co., Ltd. | 80,000,000 | 25,000,000 | Joint and several liability guarantee | December 12, 2023 to December 12, 2028 | No | | Shandong Gengcai New Material Technology Co., Ltd. | 100,000,000 | 83,018,700 | Joint and several liability guarantee | February 10, 2025 to February 10, 2028 | No | | Shandong Gengcai New Material Technology Co., Ltd., Dongying Tianzheng Chemical Co., Ltd. | 50,000,000 | 50,000,000 | Joint and several liability guarantee | August 15, 2024 to February 15, 2027 | No | | Total Approved Guarantee Amount for Subsidiaries During Reporting Period | 100,000,000 | | | | | | Total Actual Guarantee Amount for Subsidiaries During Reporting Period | | 83,018,700 | | | | | Total Approved Guarantee Amount for Subsidiaries as of Period-End | 230,000,000 | | | | | | Total Actual Guarantee Balance for Subsidiaries as of Period-End | | 158,018,700 | | | | | Proportion of Actual Total Guarantee Amount to Company's Net Assets | | 8.93% | | | | - The company had no significant daily operating contracts or other major contracts during the reporting period[139][140] XIII. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[141] XIV. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[142] Part VI Share Changes and Shareholder Information I. Share Change Status During the reporting period, the company's total share capital remained unchanged at 406,038,596 shares; restricted shares decreased by 753,270 shares, with a corresponding increase in unrestricted shares, primarily due to the release of restricted shares held by former senior executives Wang Sukun and Liu Zhidong following their departure from the supervisory board due to rotation Share Change Status | Item | Number Before This Change (shares) | Proportion Before This Change | Net Increase/Decrease for This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 40,485,173 | 9.97% | -753,270 | 39,731,903 | 9.79% | | 3. Other Domestic Shares | 40,485,173 | 9.97% | -753,270 | 39,731,903 | 9.79% | | Domestic Natural Person Shares | 40,485,173 | 9.97% | -753,270 | 39,731,903 | 9.79% | | II. Unrestricted Shares | 365,553,423 | 90.03% | 753,270 | 366,306,693 | 90.21% | | 1. RMB Ordinary Shares | 365,553,423 | 90.03% | 753,270 | 366,306,693 | 90.21% | | III. Total Shares | 406,038,596 | 100.00% | 0 | 406,038,596 | 100.00% | - The main reason for share changes was the release of restricted shares held by senior executives; Wang Sukun and Liu Zhidong, due to their departure from the supervisory board during rotation, had their restricted share counts reduced by 510,000 shares and 243,270 shares respectively[145] - The company's total share capital, share repurchase progress, basic earnings per share, and diluted earnings per share, among other financial indicators, were not affected by the share changes[145] II. Securities Issuance and Listing Status The company had no securities issuance or listing activities during the reporting period III. Number of Shareholders and Shareholding Status At the end of the reporting period, the total number of common shareholders was 32,110; among the top ten shareholders, Anshan Huifeng Investment Group Co., Ltd., Xu Huixiang, and Zang Jie are the company's controlling shareholders and actual controllers, collectively holding 38.61% of shares; some major shareholders have pledged shares, and the company's dedicated share repurchase account holds 6,922,964 shares - At the end of the reporting period, the total number of common shareholders was 32,110[148] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Change in Shareholding During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status | Number of Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anshan Huifeng Investment Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 19.37% | 78,650,580 | 0 | 0 | 78,650,580 | Pledged | 25,740,000 | | Xu Huixiang | Domestic Natural Person | 11.89% | 48,260,762 | 0 | 36,195,571 | 12,065,191 | Pledged | 31,450,000 | | Zang Jie | Domestic Natural Person | 7.35% | 29,825,208 | 0 | 0 | 29,825,208 | Pledged | 17,540,000 | | Beijing Fengyan Investment Management Co., Ltd. - Beijing Fengyan Xinhong No. 2 Private Securities Investment Fund | Other | 5.91% | 24,000,000 | 0 | 0 | 24,000,000 | Not applicable | 0 | | Huang Weishan | Domestic Natural Person | 4.91% | 19,929,220 | -3,999,980 | 0 | 19,929,220 | Pledged | 13,720,000 | | Huaian Yinhai Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.25% | 9,150,000 | 0 | 0 | 9,150,000 | Not applicable | 0 | | Cai Yiyi | Domestic Natural Person | 1.65% | 6,688,068 | -1,317,636 | 0 | 6,688,068 | Not applicable | 0 | | Chen Xinxin | Domestic Natural Person | 0.54% | 2,210,000 | -270,000 | 0 | 2,210,000 | Not applicable | 0 | | Chen Ling | Domestic Natural Per