华昌化工(002274) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisors, and senior management guarantee the report's accuracy, while the financial officers confirm the financial statements' integrity, noting forward-looking statements are not commitments and no dividends are planned - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, and assume legal responsibility[4] - The company's principal officer, the head of accounting work, and the head of the accounting department declare that the financial report is true, accurate, and complete[4] - The report contains forward-looking statements regarding future plans, which do not constitute a substantive commitment by the company to investors, and investors should remain aware of risks[4] - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[4] Table of Contents This section outlines the report's structure, covering company profile, management discussion, governance, significant events, share changes, bonds, financial reports, and other data - The report is divided into nine main chapters, covering company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related information, financial reports, and other submitted data[6] Definitions This section defines key terms used in the report, including company names, related parties, the reporting period, and industry-specific terminology for clarity - This section clarifies the definitions of key terms in the report, such as the company, related parties, the reporting period (January-June 2025), and major products (e.g., combined soda-ammonia industry, chemical fertilizer industry, polyols)[10] Part II Company Profile and Key Financial Indicators 1. Company Profile Jiangsu Huachang Chemical Co., Ltd., stock code 002274, is listed on the Shenzhen Stock Exchange, with Hu Bo as its legal representative - The company's stock abbreviation is "Huachang Chemical", stock code 002274, listed on the Shenzhen Stock Exchange[12] - The company's legal representative is Hu Bo[12] 2. Contact Persons and Information The company's Board Secretary is Lu Long, Securities Affairs Representative is Fei Yunhui, with contact details including address, phone, fax, and email provided - The Board Secretary is Lu Long, and the Securities Affairs Representative is Fei Yunhui[13] - The company's contact address is 4th Floor, Huachang Oriental Plaza, No. 11 Renmin East Road, Zhangjiagang City, with phone 0512-58727158, fax 0512-58727155, and email huachang@huachangchem.cn[13] 3. Other Information The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period - The company's contact information, information disclosure, and storage locations remained unchanged during the reporting period[14][15][16] 4. Key Accounting Data and Financial Indicators During the reporting period, the company experienced significant declines in operating revenue and net profit, with negative net cash flow from operating activities, while total assets and net assets attributable to shareholders slightly decreased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Item | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,216,656,620.64 | 4,233,937,343.75 | -24.03% | | Net Profit Attributable to Shareholders of Listed Company | 10,924,321.60 | 451,122,328.18 | -97.58% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 4,323,376.72 | 427,392,681.13 | -98.99% | | Net Cash Flow from Operating Activities | -90,593,744.73 | 268,747,746.90 | -133.71% | | Basic Earnings Per Share (Yuan/share) | 0.0115 | 0.4737 | -97.57% | | Diluted Earnings Per Share (Yuan/share) | 0.0115 | 0.4737 | -97.57% | | Weighted Average Return on Net Assets | 0.19% | 7.97% | -7.78% | | Total Assets (Period-end) | 7,660,159,596.26 | 7,793,983,200.30 | -1.72% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,450,855,389.30 | 5,725,640,461.50 | -4.80% | 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the period - The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[18][19] 6. Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses amounted to 6.60 million Yuan, primarily from fair value changes of financial assets, government grants, and entrusted investment income Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -1,456,797.64 | | Government grants recognized in current profit or loss | 2,545,260.00 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 5,896,493.71 | | Gains or losses from entrusted investment or asset management | 2,319,950.30 | | Other non-operating income and expenses apart from the above | 106,196.58 | | Less: Income tax impact | 2,415,230.64 | | Impact on minority interests (after tax) | 394,927.43 | | Total | 6,600,944.88 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[22][23] Part III Management Discussion and Analysis 1. Principal Businesses During the Reporting Period The company is a comprehensive chemical enterprise with a coal gasification-based value chain, encompassing basic chemicals, fertilizers, and new materials, actively expanding into hydrogen energy - The company's value chain originates from coal gasification, forming three major industrial segments: basic chemicals, chemical fertilizers, and new materials[25] - The company is committed to technology introduction and R&D, equipment upgrades, improving the operational level of existing industries, and reserving new product and new material projects[25] - The company actively expands into the hydrogen energy sector, promoting industrial upgrading towards green, low-carbon, and environmentally friendly directions[25] 1.1 Coal Chemical Industry Overview The company's coal chemical value chain uses coal to produce syngas for ammonia, urea, soda ash, and polyols, focusing on clean production and industrial upgrades in line with carbon goals - The company's coal chemical industry chain uses coal as raw material to produce syngas (hydrogen, carbon monoxide, carbon dioxide), which is then used to produce synthetic ammonia, urea, soda ash, polyols, methanol, and other products[27] - The company is committed to clean and efficient utilization of coal, and in response to "carbon peak and carbon neutrality" policies, it strengthens clean production technologies, optimizes product structure, and achieves energy saving, emission reduction, and industrial upgrading[27] 1.2 Soda Ash Products The company produces soda ash and ammonium chloride using the combined soda-ammonia process, serving various industries, while natural soda projects significantly impact the market - The company produces soda ash using the combined soda-ammonia process, which uses sodium chloride and synthetic ammonia as raw materials to co-produce soda ash and ammonium chloride[28] - Soda ash products are primarily used in industries such as medicine, papermaking, metallurgy, glass, textiles, and dyes[27] - The commissioning of natural soda projects in the Alxa region of Inner Mongolia has a significant impact on the domestic soda ash industry landscape, as natural soda production costs are superior to both the combined soda-ammonia process and the ammonia-soda process[28] 1.3 Fertilizer Products The company produces nitrogen fertilizers like urea and ammonium chloride, along with compound and new-type fertilizers, aiming to enhance agricultural efficiency, reduce pollution, and improve soil health - The company produces nitrogen fertilizers such as urea and ammonium chloride, as well as new-type fertilizers like compound fertilizers with a rational ratio of nitrogen, phosphorus, and potassium[29] - New-type fertilizers aim to improve plant fertilizer utilization efficiency, achieve agricultural efficiency, reduce agricultural non-point source pollution, enhance soil improvement, and realize sustainable agricultural development[29] 1.4 Polyol Products The company manufactures polyol products such as n-butanol, octanol, isobutyraldehyde, and neopentyl glycol, which are essential organic raw materials widely used in plastics, rubber, coatings, and pharmaceuticals - The company's polyol products include n-butanol, octanol, isobutanol, n-butyraldehyde, and isobutyraldehyde, which are important basic organic raw materials[30] - These products are widely used in plastics, rubber products, plasticizers, resins, coatings, pesticides, pharmaceuticals, and other fields[30] - The company uses coal-derived syngas and purchased propylene as raw materials to produce polyols and neopentyl glycol, and further extends its industrial chain to produce polyester resins[30] 1.5 Hydrogen Energy Sector Through its subsidiary, Suzhou Huachang Energy Technology Co., Ltd., the company is expanding into hydrogen energy, focusing on fuel cell stacks, engines, and testing systems, promoting commercialization through R&D and localization - The company expands into the hydrogen energy industry through its subsidiary, Suzhou Huachang Energy Technology Co., Ltd[32] - The industry expansion focuses on hydrogen fuel cell stacks, engines, and fuel cell testing systems, promoting product commercialization through independent R&D of key technologies and localization of system components[32] 2. Analysis of Core Competencies The company's core strengths include a superior geographical location, a complete industrial chain, mature marketing networks, stable management, and leading environmental protection and energy-saving capabilities - The company is located in the Yangtze River Delta region, with convenient transportation, close proximity to the Yangtze River, and its own inland river terminal, resulting in low logistics costs and proximity to target markets[33] - The company possesses a complete coal gasification industrial chain and infrastructure, including its own thermal power plant, facilitating industrial extension and product structure optimization[34] - The company has established a comprehensive sales network system and marketing team, with rich experience in marketing bulk products[34] - The company has a mature chemical production and operation management system and a stable workforce, and has established a comprehensive talent training, development, and promotion system[35] - The company excels in environmental protection and energy saving, having been repeatedly recognized as a "Energy Efficiency Leader" benchmark enterprise in the combined soda-ammonia process for the soda ash industry and the synthetic ammonia industry[35][36] 3. Analysis of Principal Business During the reporting period, the company's principal business revenue and net profit significantly declined due to falling product prices and periodic maintenance, though development plans progressed as expected - During the reporting period, the company's operating revenue decreased by 24.03% year-on-year, and net profit attributable to shareholders of the listed company decreased by 97.58% year-on-year[38] - Gross profit decreased by 606.33 million Yuan, primarily due to declining product prices and reduced product volume caused by periodic maintenance[38] - Gross profit in the combined soda-ammonia industry, chemical fertilizer industry, and fine chemical industry (polyols) all experienced significant reductions[38] - The implementation of the company's development plan is consistent with the annual plan, and relevant project progress is in line with expectations[40] Operating Revenue Composition (by Industry) | Industry | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Combined Soda-Ammonia Industry | 447,497,379.64 | 13.91% | 782,438,009.74 | 18.48% | -42.81% | | Chemical Fertilizer Industry | 1,297,781,690.46 | 40.35% | 1,332,340,543.20 | 31.47% | -2.59% | | Fine Chemical Industry | 1,176,136,386.33 | 36.56% | 1,733,842,842.24 | 40.95% | -32.17% | | Other | 295,241,164.21 | 9.18% | 385,315,948.57 | 9.10% | -23.38% | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Soda Ash | 369,639,653.55 | 11.49% | 654,667,052.60 | 15.46% | -43.54% | | Fertilizer Series Products | 1,375,639,416.55 | 42.77% | 1,460,111,500.34 | 34.49% | -5.79% | | Refined Methanol | 35,709,892.75 | 1.11% | 43,998,775.77 | 1.04% | -18.84% | | Polyols | 1,140,426,493.58 | 35.45% | 1,689,844,066.47 | 39.91% | -32.51% | | Other | 295,241,164.21 | 9.18% | 385,315,948.57 | 9.10% | -23.38% | Operating Revenue Composition (by Region) | Region | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 2,657,189,675.00 | 82.61% | 3,877,059,332.87 | 91.57% | -31.46% | | Export Sales | 559,466,945.64 | 17.39% | 356,878,010.88 | 8.43% | 56.77% | 4. Analysis of Non-Principal Business Non-principal businesses significantly impacted total profit, with investment income being the largest positive contributor, while fair value changes and asset impairment losses had negative effects Impact of Non-Principal Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 28,151,110.94 | 692.81% | Equity method long-term equity investment income, wealth management income, gains/losses from holding and disposing of trading financial assets | Associate companies operate stably, cash flow is stable | | Fair Value Change Gains/Losses | -8,580,750.29 | -211.18% | Fair value change losses on trading financial assets | Not applicable | | Asset Impairment | 9,041,060.53 | 222.50% | Impact of inventory write-down provision | Not applicable | | Non-Operating Income | 1,651,427.80 | 40.64% | Not applicable | Not applicable | | Non-Operating Expenses | 3,002,028.86 | 73.88% | Losses from disposal of non-current assets (due to technical upgrades) | Not applicable | 5. Analysis of Assets and Liabilities At the end of the reporting period, total assets slightly decreased, construction in progress significantly increased, and short-term borrowings rose substantially, while contract liabilities decreased, with some assets restricted Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 359,546,527.45 | 4.69% | 313,726,299.47 | 4.03% | 0.66% | | | Construction in Progress | 1,514,796,281.17 | 19.77% | 907,652,487.22 | 11.65% | 8.12% | Increased investment in construction in progress | | Short-Term Borrowings | 350,231,540.13 | 4.57% | 85,014,972.35 | 1.09% | 3.48% | | | Contract Liabilities | 215,881,193.70 | 2.82% | 305,264,643.05 | 3.92% | -1.10% | | | Long-Term Borrowings | 18,008,400.00 | 0.24% | 0.00 | 0.00% | 0.24% | | - The company's financial assets and liabilities measured at fair value totaled 339.48 million Yuan at the end of the period, primarily including trading financial assets, other debt investments, and other equity instrument investments[51] - As of the end of the reporting period, some of the company's monetary funds, fixed assets, intangible assets, and un-derecognized acceptance bills were pledged or mortgaged, with a total book value of 654.66 million Yuan[54] 6. Analysis of Investment Status Total investments increased by 122.79% year-on-year, primarily in non-equity projects like the 300,000-ton polyol project and ammonia synthesis intelligent transformation, all progressing as planned Investment Amount for the Reporting Period | Indicator | Investment Amount for Current Reporting Period (Yuan) | Investment Amount for Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 788,342,490.40 | 313,834,101.00 | 122.79% | - The company had no significant equity investments, securities investments, or derivative investments during the reporting period[56][59][60] Significant Non-Equity Investment Projects Underway | Project Name | Amount Invested in Current Reporting Period (Yuan) | Cumulative Actual Investment Amount as of End of Reporting Period (Yuan) | Project Progress | Estimated Return | | :--- | :--- | :--- | :--- | :--- | | 300,000 tons/year Polyol and Supporting Facilities Project | 426,142,081.00 | 752,624,007.00 | 85.00% | 250 million Yuan | | Ammonia Synthesis Production Unit Intelligent Technical Transformation Project | 62,602,946.88 | 247,136,231.32 | 64.42% | Equipment upgrade and replacement | | Urea Unit Energy Saving and Carbon Reduction Technical Transformation and Central Control Room Renovation and Supporting Facilities Project | 207,292,616.64 | 405,413,126.94 | 86.26% | Energy saving and consumption reduction | 7. Significant Asset and Equity Disposals The company did not undertake any significant asset or equity disposals during the reporting period - The company did not sell significant assets or equity during the reporting period[62][63] 8. Analysis of Major Holding and Associate Companies Key subsidiaries include Jiangsu Huayuan Ecological Agriculture Co., Ltd. and Zhangjiagang Huachang New Material Technology Co., Ltd., with Huaian Huachang Solid Waste Disposal Co., Ltd. as an associate, all contributing to revenue and net profit Financial Status of Major Subsidiaries and Associate Companies | Company Name | Company Type | Principal Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Huayuan Ecological Agriculture Co., Ltd. | Subsidiary | Production and sales of new ecological fertilizers | 150,000,000.00 | 561,450,637.53 | 183,474,895.15 | 520,832,128.53 | 9,306,296.93 | 5,571,484.38 | | Zhangjiagang Huachang New Material Technology Co., Ltd. | Subsidiary | New material technology development, production, and sales | 341,000,000.00 | 1,728,949,554.55 | 1,138,471,458.68 | 1,142,422,165.45 | 101,254,062.69 | 80,445,108.81 | | Huaian Huachang Solid Waste Disposal Co., Ltd. | Associate Company | Waste treatment | 40,000,000.00 | 155,286,501.86 | 119,524,192.53 | 58,578,521.80 | 3,222,150.71 | 3,198,086.38 | - The company did not acquire or dispose of any subsidiaries during the reporting period[64] 9. 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[65] 10. Risks Faced by the Company and Countermeasures The company faces operational, financial, project implementation, new industry, policy, safety, environmental, raw material price, human resource, cooperation, economic, and development plan risks, with corresponding mitigation strategies in place - Operational risks: Product prices fluctuate significantly, affecting operating performance; risk control becomes more challenging in the high-quality development stage. Countermeasures include continuous technology introduction and transformation, exploring new economic growth points, and strengthening human resource management[65] - Financial risks: Implementation of development plans requires cash flow support. Countermeasures include proactive planning and controlling relevant risks[65] - New project implementation and operational risks: Affected by uncertain factors, employees need time to master new technologies. Countermeasures include thorough planning, strengthening organizational supervision, and preparing human resources in advance[66] - Policy risks: Changes in national industrial, energy, and environmental policies may affect the company's development plans and project approvals. Countermeasures include closely monitoring policy changes and actively participating in industry development[66] - Safety production risks and environmental protection risks: Inherent risks in the chemical industry and increasingly stringent environmental requirements. Countermeasures include strengthening safety production management, increasing environmental protection investments, and paying attention to regional environmental requirements[67][68] - Raw material price fluctuation risks: Fluctuations in prices of bulk raw materials. Countermeasures include strengthening internal management, budget control, proactive forecasting, and tracking research on price trends[68] - Development plan implementation progress and adjustment risks: Plan implementation is affected by multiple factors and may require adjustments. Countermeasures include closely monitoring changes and formulating response measures[69] 11. Implementation of Market Value Management System and Valuation Enhancement Plan The company has established a market value management system outlining objectives, principles, responsibilities, methods, and early warning mechanisms, but has not disclosed a valuation enhancement plan - The company has established a market value management system, defining and allocating the objectives and basic principles, organizational structure and responsibilities of market value management, clarifying the main methods, and establishing monitoring and early warning mechanisms and emergency measures[70] - The company has not disclosed a valuation enhancement plan[70] 12. Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[71] Part IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management During the reporting period, Director Lu Long and several supervisors left due to term expiration, while Xu Binbin was elected as an employee director - Director Lu Long, Supervisory Board Chairman Jiang Xiaoning, and Supervisors Ye Shixun, Gong Jingtao, Tao Jiwei, and Li Guowei left due to term expiration[73] - Xu Binbin was elected as an employee director[73] 2. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the half-year period - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the half-year period[74] 3. 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 in place or implemented 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[75] 4. Environmental Information Disclosure The company and its four major subsidiaries are listed as legally required environmental information disclosers, with reports available on the Jiangsu Provincial Department of Ecology and Environment website - The company and its four major subsidiaries are included in the list of enterprises required to disclose environmental information by law[76] - Environmental information disclosure reports can be found on the official website of the Jiangsu Provincial Department of Ecology and Environment – "Environmental Face" Information Disclosure Platform[76] 5. Social Responsibility Information on social responsibility for the current reporting period is not applicable - Social responsibility information for the current reporting period is not applicable[77] Part V Significant Matters 1. Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period Major shareholders Suzhou Warner Investment Co., Ltd. and Jiangsu Huachang (Group) Co., Ltd. fulfilled their commitments regarding avoiding horizontal competition and related party transactions during the reporting period - Suzhou Warner Investment Co., Ltd. and Jiangsu Huachang (Group) Co., Ltd.'s commitments regarding avoiding horizontal competition were well-fulfilled during the reporting period[79] - Suzhou Warner Investment Co., Ltd. and Jiangsu Huachang (Group) Co., Ltd.'s commitments regarding related party transactions were well-fulfilled during the reporting period[79] 2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties from the listed company - The company reported no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period[80] 3. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[81] 4. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[82] 5. Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's "Non-Standard Audit Report" for the Current Period The company's Board of Directors and Supervisory Board had no explanations regarding a "non-standard audit report" from the accounting firm for the current reporting period - The company's Board of Directors and Supervisory Board had no explanations regarding a "non-standard audit report" from the accounting firm for the current reporting period[83] 6. Board of Directors' Explanations on the "Non-Standard Audit Report" for the Previous Year The company's Board of Directors had no explanations regarding a "non-standard audit report" from the previous year - The company's Board of Directors had no explanations regarding a "non-standard audit report" from the previous year[83] 7. Bankruptcy Reorganization Matters The company did not undergo any bankruptcy reorganization matters during the reporting period - The company did not undergo any bankruptcy reorganization matters during the reporting period[83] 8. Litigation Matters The company had no significant litigation or arbitration matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[84] 9. 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[84] 10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity status with no issues during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[85] 11. Significant Related Party Transactions The company engaged in routine related party transactions for procurement and sales at market-based prices, with no significant asset/equity acquisitions, disposals, joint investments, or non-operating related party debts - The company has daily operating-related procurement and sales transactions with related parties, such as purchasing coal from Zhangjiagang Free Trade Zone Lanhua Coal Co., Ltd. and selling water, electricity, and hydrogen to Linde Huachang (Zhangjiagang) Gas Co., Ltd[86][123] - Related party transaction prices are determined according to agreed prices and are generally consistent with transaction prices for non-related parties, with no significant instances of being higher or lower than normal transaction prices[123] - The company did not engage in related party transactions involving asset or equity acquisitions or disposals, nor joint external investments during the reporting period[87][88][89] - The company had no non-operating related party creditor-debtor transactions, nor any deposits, loans, credit lines, or other financial business with related financial companies during the reporting period[90][91][92] 12. Significant Contracts and Their Performance The company had no entrustment, contracting, leasing, or wealth management activities, but provided guarantees for subsidiaries and associate companies, totaling 2.60% of its net assets - The company had no entrustment, contracting, leasing, or wealth management activities during the reporting period[94][95][96][101] External Guarantees by the Company and its Subsidiaries | Item | Total Approved External Guarantee Amount at Period-End (10,000 Yuan) | Total Actual External Guarantee Balance at Period-End (10,000 Yuan) | Total Approved Guarantee Amount for Subsidiaries During Reporting Period (10,000 Yuan) | Total Actual Guarantee Amount for Subsidiaries During Reporting Period (10,000 Yuan) | Total Actual Guarantee Balance for Subsidiaries at Period-End (10,000 Yuan) | Proportion of Total Actual Guarantee to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Guarantees | 7,000 | 490 | 70,000 | 10,800 | 13,700 | 2.60% | - The company has no other significant contracts[102] 13. 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[103] 14. Significant Matters of Company Subsidiaries There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[104] Part VI Share Changes and Shareholder Information 1. Share Change Status The company's total share capital, restricted shares, and unrestricted shares remained unchanged during the reporting period, with no share repurchases or concentrated reductions Share Change Status | Item | Quantity Before This Change (shares) | Proportion | Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 14,515,516 | 1.52% | 0 | 14,515,516 | 1.52% | | II. Unrestricted Shares | 937,849,130 | 98.48% | 0 | 937,849,130 | 98.48% | | III. Total Shares | 952,364,646 | 100.00% | 0 | 952,364,646 | 100.00% | - During the reporting period, the company's total share capital, restricted shares, and unrestricted shares remained unchanged[107] - The company has no progress on share repurchases or concentrated bidding reductions of repurchased shares[107] - The company reported no changes in restricted shares during the reporting period[108] 2. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[109] 3. Number of Shareholders and Shareholding Status At the end of the reporting period, the company had 49,713 common shareholders, with Suzhou Warner Investment holding 28.88% and Jiangsu Huachang (Group) holding 11.99%, some of which are frozen, and no associated relationships among major shareholders - The total number of common shareholders at the end of the reporting period was 49,713[110] Top 10 Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Changes During Reporting Period | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Warner Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 28.88% | 275,059,519 | 0 | 0 | 275,059,519 | Not applicable | 0 | | Jiangsu Huachang (Group) Co., Ltd. | State-Owned Legal Person | 11.99% | 114,209,198 | 0 | 13,915,516 | 100,293,682 | Frozen | 13,915,516 | | Xiamen Hanyun Investment Management Co., Ltd. - Hanyun Stock Selection Phase II Private Securities Investment Fund | Other | 1.07% | 10,237,600 | 6,932,899 | 0 | 10,237,600 | Not applicable | 0 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.55% | 5,274,000 | 560,300 | 0 | 5,274,000 | Not applicable | 0 | | Ni Zhengxiang | Domestic Natural Person | 0.47% | 4,513,900 | 1,581,100 | 0 | 4,513,900 | Not applicable | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.46% | 4,396,931 | -550,080 | 0 | 4,396,931 | Not applicable | 0 | | Jin Yan | Domestic Natural Person | 0.40% | 3,767,500 | 10,000 | 0 | 3,767,500 | Not applicable | 0 | | Ni Kui | Domestic Natural Person | 0.39% | 3,751,400 | 790,200 | 0 | 3,751,400 | Not applicable | 0 | | Guo Hanwen | Domestic Natural Person | 0.38% | 3,587,900 | 3,587,900 | 0 | 3,587,900 | Not applicable | 0 | | Shenzhen Qianhai Shengyao Capital Investment Management Co., Ltd. - Shengyao Zhuohui Shanghai-Shenzhen-Hong Kong Alpha Private Securities Investment Fund | Other | 0.37% | 3,516,687 | 3,216,737 | 0 | 3,516,687 | Not applicable | 0 | - There are no associated relationships or concerted action agreements between the company's first and second largest shareholders; nor are there any associated relationships or concerted action agreements between other top 10 shareholders and the top two shareholders[110] - The frozen shares of Jiangsu Huachang (Group) Co., Ltd. were transferred to the Social Security Fund Council in accordance with state-owned share transfer regulations[110] 4. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[113] 5. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[114] - The company's actual controller remained unchanged during the reporting period[114] 6. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[115] Part VII Bond-Related Information 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[117] Part VIII Financial Report 1. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[119] 2. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025 2.1 Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were 7.66 billion Yuan, liabilities 2.16 billion Yuan, and owner's equity 5.50 billion Yuan, with significant increases in short-term borrowings and construction in progress Consolidated Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 7,660,159,596.26 | 7,793,983,200.30 | | Total Liabilities | 2,157,852,012.37 | 2,012,556,106.95 | | Total Owner's Equity | 5,502,307,583.89 | 5,781,427,093.35 | | Total Current Assets | 2,114,326,638.21 | 2,831,030,355.43 | | Total Non-Current Assets | 5,545,832,958.05 | 4,962,952,844.87 | | Short-Term Borrowings | 350,231,540.13 | 85,014,972.35 | | Construction in Progress | 1,514,796,281.17 | 907,652,487.22 | 2.2 Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 6.26 billion Yuan, liabilities 1.54 billion Yuan, and owner's equity 4.72 billion Yuan, with notable changes in accounts receivable and short-term borrowings Parent Company Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 6,263,877,778.69 | 6,589,153,414.87 | | Total Liabilities | 1,540,607,859.15 | 1,512,384,203.18 | | Total Owner's Equity | 4,723,269,919.54 | 5,076,769,211.69 | | Accounts Receivable | 603,370,621.67 | 355,135,775.10 | | Short-Term Borrowings | 207,876,209.12 | 4,058,458.33 | 2.3 Consolidated Income Statement For the first half of 2025, consolidated operating revenue decreased by 24.03% to 3.22 billion Yuan, with net profit plummeting by 98.45% to 6.89 million Yuan, and basic earnings per share at 0.0115 Yuan Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 3,216,656,620.64 | 4,233,937,343.75 | | Total Operating Costs | 3,244,554,602.13 | 3,693,814,149.82 | | Total Profit | 4,063,319.59 | 585,609,002.10 | | Net Profit | 6,889,884.34 | 445,731,301.13 | | Net Profit Attributable to Parent Company Shareholders | 10,924,321.60 | 451,122,328.18 | | Basic Earnings Per Share | 0.0115 | 0.4737 | 2.4 Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 1.73 billion Yuan, resulting in a net loss of 67.79 million Yuan, a reversal from profit, with basic earnings per share at -0.0712 Yuan Parent Company Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 1,730,102,144.82 | 2,332,835,901.00 | | Operating Profit | -98,699,442.05 | 184,436,432.42 | | Net Profit | -67,789,898.35 | 142,935,529.58 | | Basic Earnings Per Share | -0.0712 | 0.1501 | 2.5 Consolidated Cash Flow Statement In the first half of 2025, net cash flow from operating activities was -90.59 million Yuan, a 133.71% decrease, while net cash flow from investing activities was -412.14 million Yuan, and from financing activities was -5.88 million Yuan Consolidated Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -90,593,744.73 | 268,747,746.90 | -133.71% | | Net Cash Flow from Investing Activities | -412,139,465.07 | 101,442,156.45 | -506.28% | | Net Cash Flow from Financing Activities | -5,879,691.36 | -524,767,978.27 | 98.88% | | Net Increase in Cash and Cash Equivalents | -507,419,399.14 | -155,100,989.59 | -227.15% | 2.6 Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was -404.83 million Yuan, from investing activities was -62.99 million Yuan, and from financing activities was -65.12 million Yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -404,827,244.92 | 183,134,827.19 | | Net Cash Flow from Investing Activities | -62,986,391.95 | 129,987,361.36 | | Net Cash Flow from Financing Activities | -65,122,634.83 | -377,235,800.73 | | Net Increase in Cash and Cash Equivalents | -532,936,271.70 | -66,016,298.08 | 2.7 Consolidated Statement of Changes in Owner's Equity In the first half of 2025, consolidated owner's equity decreased by 279.12 million Yuan, primarily due to profit distribution and comprehensive income changes Consolidated Statement of Changes in Owner's Equity | Item | Beginning Balance of Period (Yuan) | Amount of Change in Current Period (Yuan) | Ending Balance of Period (Yuan) | | :--- | :--- | :--- | :--- | | Total Owner's Equity | 5,781,427,093.35 | -279,119,509.46 | 5,502,307,583.89 | | Total Owner's Equity Attributable to Parent Company | 5,725,640,461.50 | -274,785,072.20 | 5,450,855,389.30 | | Undistributed Profits | 2,990,312,010.84 | -274,785,072.20 | 2,715,526,938.64 | 2.8 Parent Company Statement of Changes in Owner's Equity In the first half of 2025, the parent company's owner's equity decreased by 353.50 million Yuan, mainly influenced by net loss and profit distribution Parent Company Statement of Changes in Owner's Equity | Item | Beginning Balance of Period (Yuan) | Amount of Change in Current Period (Yuan) | Ending Balance of Period (Yuan) | | :--- | :--- | :--- | :--- | | Total Owner's Equity | 5,076,769,211.69 | -353,499,292.15 | 4,723,269,919.54 | | Undistributed Profits | 2,366,842,057.38 | -353,499,292.15 | 2,013,342,765.23 | 3. Company Overview Established in 2004 and listed in 2008, Jiangsu Huachang Chemical Co., Ltd. has a registered capital of 952.36 million Yuan, primarily engaged in the manufacturing and sales of chemical raw materials, products, and fertilizers - The company was established on January 29, 2004, formerly known as Shazhou Chemical Fertilizer Plant, and was first publicly listed on July 2008[142][143] - The company's registered capital is 952.36 million Yuan, its legal representative is Hu Bo, and its domicile is No. 1 Nanhai Road, Yangtze River International Chemical Industrial Park, Jin'gang Town, Zhangjiagang City[143] - Its business scope includes the production and sales of chemical raw materials, chemical products, and fertilizers (operating under license), coal sales, etc., with main products including compound fertilizers, urea, soda ash, synthetic ammonia, ammonium chloride, methanol, and polyols[143][144] - The company belongs to the chemical raw materials and chemical products manufacturing industry[143] 4. Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards and CSRC regulations, using accrual accounting and historical cost measurement, with no significant going concern issues identified - The financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Information Disclosure and Reporting Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" issued by the China Securities Regulatory Commission[145] - Accounting is based on the accrual basis and historical cost measurement, with provisions for asset impairment[145] - The company's comprehensive assessment indicates no factors that would significantly affect its ability to continue as a going concern within 12 months from the end of the reporting period[146] 5. Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates for revenue recognition, financial instruments, inventory, fixed assets, construction in progress, intangible assets, long-term equity investments, employee benefits, government grants, and deferred taxes - The company adheres to the requirements of Enterprise Accounting Standards, accurately and completely reflecting its financial position, operating results, and cash flows[148] - The company's accounting period adopts the calendar year, with one year (12 months) as the normal operating cycle, and the recording currency is Renminbi[149][150][151] - The company classifies, recognizes, measures, and derecognizes financial assets and liabilities, and makes impairment provisions using the expected credit loss model[165][173] - The company measures inventory at the lower of cost and net realizable value, and makes provisions for inventory write-downs; fixed assets and intangible assets are depreciated and amortized using the straight-line method[181][201][205] - The company makes significant accounting judgments and estimates in areas such as revenue recognition, bad debt provisions, inventory write-down provisions, impairment provisions for non-financial non-current assets, depreciation and amortization, fair value of financial instruments, and income tax[238][239][240] 6. Taxation This section outlines the company's main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, with some subsidiaries benefiting from high-tech enterprise tax incentives and R&D expense super deductions Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable sales revenue | 9%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Education Surcharge | Amount of turnover tax | 5% | - Subsidiaries Suzhou Huachang Energy Technology Co., Ltd. and Suzhou Austin New Material Technology Co., Ltd., as high-tech enterprises, enjoy a 15% preferential corporate income tax rate[244] - The company's R&D expenses enjoy a pre-tax super deduction policy, with 100% super deduction for expenses not forming intangible assets, and 200% amortization of costs for those forming intangible assets[244] 7. Notes to Consolidated Financial Statement Items This section provides detailed notes for each asset, liability, owner's equity, revenue, cost, and expense item in the consolidated financial statements, including period-end balances, beginning balances, and changes - Monetary funds at period-end totaled 359.55 million Yuan, of which 111.00 million Yuan was restricted, mainly for letter of credit margins and acceptance bill margins[246][247] - Trading financial assets at period-end totaled 110.59 million Yuan, primarily consisting of stock investments and wealth management products[249] - Accounts receivable at period-end had a book value of 141.00 million Yuan, with bad debt provisions of 35.67 million Yuan already made[262] - Construction in progress at period-end totaled 1.51 billion Yuan, an increase of 607.00 million Yuan from the beginning of the period, mainly due to increased investment in new area technical transformation projects and new material projects[334][336] - Short-term borrowings at period-end totaled 350.23 million Yuan, an increase of 265.00 million Yuan from the beginning of the period, mainly due to increased guarantee borrowings and credit borrowings[364] - Operating revenue was 3.22 billion Yuan, operating cost was 3.01 billion Yuan, and gross profit margin was 6.56%, a year-on-year decrease of 12.74%[46] - R&D expenses were 40.19 million Yuan, a year-on-year decrease of 15.00%[43] 8. Research and Development Expenses Total R&D expenses for the reporting period were 40.19 million Yuan, entirely expensed, primarily allocated to materials, personnel, external R&D, and depreciation/amortization R&D Expense Composition | Item | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Material Input | 8,879,242.27 | 8,579,561.00 | | Personnel | 14,957,798.00 | 20,651,407.94 | | External R&D | 7,706,876.06 | 4,142,675.64 | | Depreciation and Amortization | 8,485,688.65 | 12,456,400.00 | | Other | 164,000.72 | 1,456,257.86 | | Total | 40,193,605.70 | 47,286,302.44 | - All R&D expenses in the current period were expensed, with no capitalized R&D expenses[449] 9. Changes in Consolidation Scope There were no changes in the company's consolidation scope during the reporting period - The company's consolidation scope remained unchanged during the reporting period[450] 10. Interests in Other Entities The company holds interests in various subsidiaries, joint ventures, and associates engaged in diverse businesses, with some subsidiaries controlled despite non-majority ownership, and aggregate net profits from non-significant JVs and associates - The company owns 11 subsidiaries, primarily engaged in investment management, production of new ecological fertilizers, chemical production, new material technology development, coal wholesale operations, battery R&D and production, chemical raw materials and products, import and export trade, active pharmaceutical ingredient production, and polyurethane material manufacturing[451] - Suzhou Huachang Energy Technology Co., Ltd. has a shareholding ratio of 48.27%, but the company appoints a majority of its board members, thus achieving control and including it in the consolidation scope[452] - The company has no significant non-wholly-owned subsidiaries, joint ventures, or associate companies[453][459][460] Summary Financial Information for Non-Significant Joint Ventures and Associate Companies | Item | Period-End Balance/Current Period Amount (Yuan) | Period-Beginning Balance/Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Book Value of Joint Venture Investments | 59,762,096.27 | 58,163,053.08 | | Net Profit of Joint Ventures | 1,599,043.19 | -1,863,860.84 | | Total Book Value of Associate Company Investments | 150,180,924.45 | 157,860,481.77 | | Net Profit of Associate Companies | 9,754,873.45 | 14,898,656.38 | 11. Government Grants Government grants recognized in current period profit or loss amounted to 4.23 million Yuan, primarily recorded under other income Government Grants Recognized in Current Period Profit or Loss | Accounting Account | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Other Income | 4,227,260.00 | 8,547,680.00 | - The company had no government grants recognized based on receivable amounts at the end of the reporting period, nor any liability items involving government grants[469] 12. Risks Related to Financial Instruments The company manages market, exchange rate, credit, and liquidity risks associated with financial instruments through internal controls, monitoring, and correlation management, having derecognized 570.24 million Yuan in financial assets through transfers - The company's risk management objective is to achieve a balance between risk and return, minimizing the negative impact of risks on operating performance[471] - The company identifies market and exchange rate risks, credit risks, and liquidity risks, and manages them through institutional controls, tracking evaluations, and correlation controls[471] Financial Assets Derecognized Due to Transfer | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets (Yuan) | Gains or Losses Related to Derecognition (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | Discounting | 137,786,828.00 | 585,818.19 | | Accounts Receivable Financing | Endorsement | 432,452,246.46 | 0 | | Total | | 570,239,074.46 | 585,818.19 | - The company did not engage in hedging activities for risk management, nor did it apply hedge accounting[472] 13. Fair Value Disclosure The company's assets and liabilities measured at fair value totaled 339.48 million Yuan, comprising trading financial assets, other debt investments, and other equity instrument investments, with fair value determined using Level 1 and Level 3 inputs Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 103,589,281.14 | 7,005,010.96 | 110,594,292.10 | | (II) Other Debt Investments | 0 | 13,576,054.50 | 13,576,054.50 | | (III) Other Equity Instrument Investments | 0 | 215,308,728.29 | 215,308,728.29 | | Total Assets Continuously Measured at Fair Value | 103,589,281.14 | 235,889,793.75 | 339,479,074.89 | - The basis for determining Level 1 fair value measurement is the publicly quoted market price[480] - Level 3 fair value measurement is primarily determined by investment amounts and expected returns, face value, or the proportion of owner's equity in the investee company[482] - The book value of financial assets and liabilities not measured at fair value approximates their fair value[487] 14. Related Parties and Related Party Transactions Suzhou Warner Investment Co., Ltd. is the controlling shareholder, with no actual controller; the company engages in various related party transactions with subsidiaries, joint ventures, associates, and other related parties at fair market prices - The company's controlling shareholder is Suzhou Warner Investment Co., Ltd., with a shareholding ratio of 28.88%, and no actual controller[489][490] - The company has several subsidiaries, joint ventures, and associate companies, and maintains related party relationships with Jiangsu Huachang (Group) Co., Ltd. and other related parties[491][492][493] - Related party transactions include the purchase of coal, steam, transportation services, outsourced repairs, and materials, as well as the sale of water, electricity, hydrogen, and compound fertilizers[495][496] - Related party transaction prices are determined according to agreed prices and are generally consistent with transaction prices for non-related parties[496] - The company provides a guarantee for its associate company, Zhangjiagang Yunchang Green Logistics Co., Ltd., with a guarantee amount of 4.9 million Yuan[500] - The company has intercompany borrowings with related parties, including both borrowing and lending[499] 15. Share-Based Payments The company had no share-based payment arrangements, including equity-settled or cash-settled, nor any related expenses, modifications, or terminations during the reporting period - The company reported no overall share-based payment situation, equity-settled share-based payments, cash-settled share-based payments, share-based payment expenses, or modifications/terminations of share-based payments during the reporting period[505][506] 16. Commitments and Contingencies The company has capital commitments for a 600 million Yuan urea plant energy-saving and carbon reduction project, which is underway, and provides guarantees for subsidiaries and associate companies, with no other significant contingencies - The company is committed to investing in the urea plant energy-saving and carbon reduction technical transformation and central control room renovation and supporting facilities project, with a total estimated investment of 600 million Yuan, a planned construction period of 24 months, and the project has already commenced[508][509] - Apart from providing comprehensiv