中简科技(300777) - 2025 Q2 - 季度财报

Item 1. Important Notice, Table of Contents and Definitions This section provides important notices, the report's table of contents, and definitions of key terms used throughout the report Important Notice The company's board and senior management guarantee the report's accuracy, though Director Wen Yuefang disputes certain financial items, and no cash dividends or bonus shares are planned for the half-year - Director Wen Yuefang questions the authenticity, accuracy, and completeness of items such as raised capital investment, prepaid engineering equipment costs, R&D investment, and construction in progress, stating an inability to guarantee them, thus alerting investors to potential risks[4] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for this half-year period[5] Table of Contents This report comprises eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports Reference Documents Reference documents include financial statements signed and sealed by the legal representative, CFO, and accounting manager, along with relevant announcements disclosed on Juchao website during the reporting period Definitions This section defines common terms used in the report, such as company name, currency units, reporting period, prior year period, Board of Directors, Supervisory Board, Shareholders' Meeting, IPO projects, acrylonitrile, carbon fiber, graphite fiber, tensile modulus, Zhongjian Technology carbon fiber product grades, Phase III project, Phase IV project, Zhongjian New Materials, Zhongjian Research Institute, and Changhong Functional Materials Item 2. Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance metrics for the reporting period I. Company Profile Zhongjian Technology Co., Ltd., stock code 300777, is listed on the Shenzhen Stock Exchange, with Yang Yonggang as its legal representative II. Contact Persons and Information This section provides contact details including addresses, phone numbers, faxes, and email addresses for the company's Board Secretary Li Jianfeng and Securities Affairs Representative Leng Huan III. Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure and placement locations, or registration status; detailed information can be found in the 2024 annual report IV. Key Accounting Data and Financial Indicators The company achieved significant growth in operating revenue and net profit for the first half of 2025, with a substantial increase in net cash flow from operating activities, and improvements in basic earnings per share and weighted average return on net assets, alongside steady growth in total assets and net assets attributable to shareholders Main Financial Indicators | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 463,969,960.29 | 290,971,246.98 | 59.46% | | Net Profit Attributable to Shareholders of Listed Company | 208,466,471.89 | 104,676,840.64 | 99.15% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 197,672,263.67 | 93,057,849.90 | 112.42% | | Net Cash Flow from Operating Activities | 458,886,600.83 | 139,805,671.82 | 228.23% | | Basic Earnings Per Share (CNY/share) | 0.47 | 0.24 | 95.83% | | Diluted Earnings Per Share (CNY/share) | 0.47 | 0.24 | 95.83% | | Weighted Average Return on Net Assets | 4.67% | 2.53% | 2.14% | Comparison of Period-End Indicators with Prior Year-End | Indicator | End of Current Reporting Period (CNY) | End of Prior Year (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 4,819,142,131.62 | 4,642,538,849.26 | 3.80% | | Net Assets Attributable to Shareholders of Listed Company | 4,389,976,584.16 | 4,355,406,404.65 | 0.79% | 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 prepared under International or overseas accounting standards and those under Chinese accounting standards VI. Non-Recurring Gains and Losses Items and Amounts The company's non-recurring gains and losses primarily stemmed from cash management income and fixed asset disposal gains, totaling CNY 10,794,208.22 after deducting income tax effects Non-Recurring Gains and Losses | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 840.92 | Gains from Disposal of Fixed Assets | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and Gains/Losses from Disposal of Financial Assets and Liabilities | 12,698,227.58 | Cash Management Income | | Less: Income Tax Impact | 1,904,860.28 | | | Total | 10,794,208.22 | | Item 3. Management Discussion and Analysis This section provides an in-depth analysis of the company's business operations, financial performance, and future outlook I. Principal Business Activities During the Reporting Period As a core supplier of high-end carbon fiber for aerospace applications in China, the company primarily engages in R&D, production, and sales of high-performance carbon fiber and fabrics, actively expanding into new application scenarios, deepening industry-academia-research cooperation, achieving significant sales growth, and steadily extending its industrial chain during the reporting period - The carbon fiber industry exhibits structural differentiation, with demand for high-performance carbon fiber in aerospace applications continuously rising, while the mid-to-low-end market faces overcapacity and price wars[25] - The company is a core supplier of high-end carbon fiber for aerospace applications in China, with products characterized by high added value, high technical barriers, and long-cycle investment[25][26] - During the reporting period, the company's carbon fiber and fabric product sales significantly increased year-on-year, with improved technical team efficiency and efforts to revitalize existing resources and optimize resource allocation[27] 1. Industry Development The carbon fiber industry shows clear structural differentiation, with strong demand for high-performance carbon fiber in aerospace but insufficient domestic supply of high-end products, while the mid-to-low-end market faces overcapacity and intense price competition, driving the industry towards differentiation, high-end transformation, and expansion into emerging applications like energy, low-altitude economy, and hydrogen storage - Demand for high-performance carbon fiber in the aerospace sector continues to rise, particularly for high-strength, high-modulus products, where domestic enterprises still show insufficient independent supply capabilities for high-end products[25] - The mid-to-low-end market suffers from overcapacity, leading enterprises into price wars and significantly compressing profit margins[25] - The industry is accelerating its transformation towards differentiation and high-end products, actively exploring new application scenarios such as energy, low-altitude economy, and hydrogen energy storage and transportation[25] 2. Principal Business and Market Position The company is a core supplier of high-end carbon fiber for aerospace applications in China, offering products with high technical barriers and added value, and is actively expanding into mid-to-high-end application fields through technological innovation and capacity expansion, while deepening industry-academia-research cooperation to enhance supply chain resilience - The company is a core supplier of high-end carbon fiber for aerospace applications in China, with products demonstrating high technical barriers and a high-starting-point competitive landscape[25][26] - The company adheres to a strategy of "deepening technology and expanding applications," actively developing integrated structural-functional materials, driven by demonstration applications in the aerospace sector[26] - During the reporting period, the company's carbon fiber and fabric product sales significantly increased, and it steadily advanced supply chain extension, strengthening supply chain resilience[27] 3. Main Products and Their Uses The company primarily engages in the R&D, production, and sales of high-performance carbon fiber and fabrics, mainly for aerospace applications, where carbon fiber's lightweight, high-strength, and high-elastic modulus properties make it an ideal material for advanced equipment requiring high performance and lightweight structures - The company's main business is the R&D, production, and sales of high-performance carbon fiber and fabrics, primarily used in aviation and aerospace fields[28] - Carbon fiber possesses characteristics such as lightweight, high strength, high elastic modulus, electrical conductivity, thermal conductivity, high temperature resistance, and corrosion resistance, making it an ideal material for advanced equipment requiring high performance and lightweight structures[28] 4. Main Business Model The company operates on an order-driven production model, customizing high-performance carbon fiber products based on customer orders, with a procurement model involving qualified supplier evaluation and dynamic management, and a direct sales model to major domestic aerospace enterprise groups, supported by comprehensive quality monitoring through quality management systems like GJB9001C-2017 - Procurement Model: Established a qualified supplier evaluation and re-evaluation management system, selecting acrylonitrile and long-term raw and auxiliary materials from the "List of Qualified Suppliers"[28][29] - Production Model: Adopts an order-driven production approach, designing and manufacturing according to customer orders, with intelligent flexible production lines providing customized products[29] - Sales Model: Direct sales to major domestic aerospace enterprise groups, with clear and highly concentrated customers; sales revenue is recognized upon product delivery and customer acceptance after inspection[29] - Quality Monitoring Model: Implements full-process quality monitoring for high-performance carbon fiber preparation, relying on GJB9001C-2017 and GB/T19001-2016 quality management systems[30] 5. Key Performance Drivers The company's performance growth is primarily driven by rapidly increasing demand for high-performance carbon fiber in aerospace and high-end equipment sectors, coupled with national policy support, leading to increased application of core products in key models, accelerated order delivery, significant advantages from flexible production lines, and successful ramp-up of the Phase III project, with rising revenue from ZT9H products expected to optimize the profit structure - Rapid growth in demand for high-performance carbon fiber in aerospace, high-end equipment, and other sectors, with continuous national policy support[30] - The company's core products are increasingly applied in key models, with accelerated order delivery and the advantage of flexible production lines[30] - The Phase III project's capacity ramp-up is progressing smoothly, with an increasing revenue share from high-performance product ZT9H, expected to steadily boost net profit and optimize the profit structure[31] II. Core Competitiveness Analysis The company possesses a domestically cultivated R&D and industrialization team in carbon fiber development, mastering full-process localization technology from precursor fiber preparation to fabric weaving, thereby establishing significant competitiveness and sustainable development capabilities through continuous R&D innovation, systematic talent advantages, an independent and controllable industry-academia-research integration system, and long-term accumulated market advantages - The company possesses a domestically cultivated carbon fiber R&D and industrialization team, mastering complete carbon fiber R&D and industrialization technology, achieving full-process localization[32] - The company has formed significant advantages in innovation capability and system, and talent pool, with its core team comprising industry leaders in the domestic carbon fiber sector[32] - The company has built an independent and controllable, distinctive system for deep integration of scientific and industrial innovation, focusing on mid-to-high-end products, combining flexible and dedicated production lines to meet diverse customer needs[33] - ZT7 series products have achieved stable batch applications in aerospace for many years, ZT8 continues to expand as a backbone material, and the new generation ZT9H product has exceeded market expectations, establishing a reputation for first-class quality in the high-end market[35] III. Analysis of Principal Business The company's principal business revenue grew by 59.46% year-on-year, primarily due to increased product sales, while operating costs rose by 46.40%, lower than revenue growth, reflecting economies of scale. Sales expenses increased by 155.27% due to strengthened marketing teams, and R&D investment decreased by 31.72% as production lines prioritized supply tasks, slowing R&D. Net cash flow from operating activities surged by 228.23% due to intensified accounts receivable collection, with carbon fiber and carbon fiber fabrics being the main revenue sources, both exceeding 60% gross margin and showing improvement Key Financial Indicators and Their Changes | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 463,969,960.29 | 290,971,246.98 | 59.46% | Increased customer demand, increased product sales volume | | Operating Cost | 167,687,087.35 | 114,543,224.44 | 46.40% | Increased sales volume, economies of scale led to growth rate lower than revenue | | Selling Expenses | 2,375,079.36 | 930,424.72 | 155.27% | Strengthening of marketing team | | Financial Expenses | -2,985,071.13 | -6,173,723.00 | -51.65% | Decreased interest income | | Income Tax Expense | 49,759,380.56 | 16,186,982.37 | 207.40% | Prior tax incentives ended | | R&D Investment | 38,956,260.75 | 57,052,181.16 | -31.72% | Production lines prioritized for supply tasks, R&D pace slowed | | Net Cash Flow from Operating Activities | 458,886,600.83 | 139,805,671.82 | 228.23% | Increased efforts in accounts receivable collection | | Net Cash Flow from Investing Activities | -216,554,604.49 | 61,410,200.79 | -452.64% | Increased cash management and project expenditures | | Net Cash Flow from Financing Activities | -168,795,486.85 | -52,289,538.14 | 222.81% | Increased cash dividends, share repurchases | | Net Increase in Cash and Cash Equivalents | 73,536,509.49 | 148,926,334.47 | -50.62% | Increased investing and financing expenditures | Revenue and Cost by Product/Service | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Carbon Fiber | 345,813,547.73 | 122,234,611.14 | 64.65% | 76.54% | 63.92% | 2.72% | | Carbon Fiber Fabric | 118,156,412.56 | 45,452,476.21 | 61.53% | 24.78% | 13.71% | 3.75% | IV. Analysis of Non-Principal Business The company's non-principal business income primarily consists of investment income from idle fund cash management and fair value changes from trading financial assets, neither of which is sustainable, while asset impairment (provision for bad debts on receivables) is a sustainable item Non-Principal Business Items | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,479,567.33 | 1.35% | Income from idle funds participating in cash management | No | | Gains/Losses from Fair Value Changes | 9,218,660.25 | 3.57% | Fair value changes of trading financial assets | No | | Asset Impairment | 6,041,361.35 | 2.34% | Provision for bad debts on receivables | Yes | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 3.80% from the prior year-end, with a higher proportion of monetary funds and fixed assets, a slight decrease in accounts receivable, and a reduction in the fair value of trading financial assets; new long-term borrowings were added, deferred income tax assets decreased, and deferred income tax liabilities increased Asset and Liability Composition | Item | Amount at End of Current Reporting Period (CNY) | Proportion of Total Assets | Amount at Prior Year-End (CNY) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 716,739,417.24 | 14.87% | 643,060,831.08 | 13.85% | 1.02% | | Accounts Receivable | 776,435,519.98 | 16.11% | 835,058,483.10 | 17.99% | -1.88% | | Inventories | 85,737,574.00 | 1.78% | 82,004,727.46 | 1.77% | 0.01% | | Fixed Assets | 1,457,116,497.07 | 30.24% | 1,357,248,462.15 | 29.24% | 1.00% | | Construction in Progress | 328,691,657.00 | 6.82% | 310,585,362.01 | 6.69% | 0.13% | | Long-Term Borrowings | 4,480,897.94 | 0.09% | 0 | 0.00% | 0.09% | - The fair value of trading financial assets at the end of the period was CNY 1,083,645,083.56, a decrease from CNY 1,153,691,376.72 at the beginning of the period[45] - The balance of deferred income tax assets at the end of the period was CNY 6,264,434.32, a significant decrease from CNY 17,223,130.19 at the beginning of the period[45] - The balance of deferred income tax liabilities at the end of the period was CNY 118,511,705.73, an increase from CNY 107,920,895.02 at the beginning of the period[45] VI. Investment Analysis During the reporting period, the company's total investment increased by 29.58% year-on-year. Financial assets measured at fair value totaled CNY 1,083,645,083.56 at period-end, primarily from cash management of self-owned and raised funds. Accumulated raised funds utilized reached CNY 1.948 billion, mainly invested in the Phase III project and working capital. The company also engaged in entrusted wealth management, with an outstanding balance of CNY 1.08 billion at period-end Total Investment | Indicator | Investment Amount in Reporting Period (CNY) | Investment Amount in Prior Year Period (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 3,343,003,087.73 | 2,579,920,669.07 | 29.58% | Financial Assets Measured at Fair Value | Asset Category | Amount at Period-End (CNY) | Source of Funds | | :--- | :--- | :--- | | Other (Self-owned funds) | 1,083,645,083.56 | Self-owned funds | | Other (Raised funds) | 0.00 | Raised funds | | Total | 1,083,645,083.56 | -- | - The net amount of raised funds was CNY 1.985 billion, with CNY 1.948 billion cumulatively utilized as of June 30, 2025, including CNY 1.598 billion directly invested in the Phase III project and CNY 350 million for working capital[52] Entrusted Wealth Management | Specific Type | Amount of Entrusted Wealth Management (CNY ten thousands) | Outstanding Balance (CNY ten thousands) | | :--- | :--- | :--- | | Other (Self-owned funds) | 213,250 | 108,000 | | Other (Raised funds) | 98,000 | 0 | | Total | 311,250 | 108,000 | VII. Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period VIII. Analysis of Major Holding and Participating Companies The company had no material information regarding major holding or participating companies that required disclosure during the reporting period IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period X. Risks Faced by the Company and Countermeasures The company faces risks of product price decline and capacity digestion, customer concentration, and dispersed equity, which it plans to address by continuously cultivating high-tech barrier application areas, developing high-value-added products, strengthening internal management, optimizing customer structure, and introducing strategic investors - Risk: Product price decline and capacity digestion risk, where some product prices may decrease due to end-user cost reduction demands and changes in the competitive environment, potentially leading to idle capacity if customer demand falls short of expectations[63] - Countermeasure: Continuously cultivate high-tech barrier application areas, develop high-value-added products, and enhance bargaining power; strengthen internal management, control production costs, and optimize management processes[64] - Risk: Customer concentration risk, as the company's main customers are large domestic aerospace enterprise groups with high dependence on the company's products, a significant drop in their demand could adversely affect performance[64] - Countermeasure: Strengthen customized product R&D and technical services to consolidate existing customer loyalty; improve the high-value-added product portfolio, expand application scope, and optimize customer structure[64] - Risk: Equity dispersion risk, as the company has no actual controlling shareholder, and the largest shareholder holds 13.80% of the shares[65] - Countermeasure: Focus on introducing strategic investors with industrial synergy, optimize the shareholder structure, and build a diversified, stable equity structure[65] XI. Registration Form for Investor Relations Activities During the Reporting Period During the reporting period, the company hosted multiple on-site and online interactions with institutional and individual investors, discussing topics such as new subsidiary business layouts, product R&D and market coverage, project construction and market orders, operational management and financial status, carbon fiber industry trends, financing progress, and equity incentive mechanisms - On January 3, 2025, the company hosted institutions and individuals including Guosheng Securities and Fidelity Funds, discussing topics such as new subsidiary business layout, product R&D, and market coverage[66] - On April 15, 2025, the company hosted institutions and individuals including Industrial Securities and Zheshang Asset Management, discussing the 2024 Annual Report[66][67] - On June 10, 2025, the company hosted institutions and individuals including China Post Securities and Qixia Capital, discussing carbon fiber industry trends, customer structure and order scale, and financing progress[67] XII. Implementation of Market Value Management System and Valuation Enhancement Plan The company approved its "Market Value Management System" on April 23, 2025, aiming to standardize market value management, enhance operational compliance, and protect investors' legitimate rights, but has not disclosed a valuation enhancement plan - The company's Board of Directors approved the "Company Market Value Management System" on April 23, 2025, to strengthen market value management efforts[68] - The company has not disclosed a valuation enhancement plan[68] XIII. Implementation of "Dual Improvement in Quality and Returns" Action Plan The company did not disclose any announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period Item 4. Corporate Governance, Environment, and Society This section details the company's corporate governance structure, environmental protection efforts, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management During the reporting period, changes occurred in the company's senior management, with Hu Peixian and Li Jianfeng appointed as Deputy General Managers, Gu Nianhua's removal and appointment as Deputy General Manager and CFO, and Tian Yongmei's appointment as CFO, all due to work transfers Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Hu Peixian | Deputy General Manager | Appointment | January 15, 2025 | Work transfer | | Li Jianfeng | Deputy General Manager | Appointment | January 15, 2025 | Work transfer | | Gu Nianhua | Deputy General Manager, CFO | Removal and Appointment | May 12, 2025 | Work transfer | | Tian Yongmei | CFO | Appointment | May 30, 2025 | Work transfer | II. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for this half-year period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period[71] 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, or their implementation, during the reporting period IV. Environmental Information Disclosure The company and its main subsidiary, Zhongjian Technology Co., Ltd., are included in the list of enterprises required to disclose environmental information by law and have published their 2024 annual disclosure report on the Enterprise Environmental Information Disclosure System (Jiangsu) - Zhongjian Technology Co., Ltd. has been included in the list of enterprises required to disclose environmental information by law and has already disclosed its 2024 annual legal disclosure report[73] V. Social Responsibility Adhering to sustainable development principles, the company continuously improves its responsibility management system, implementing specific measures in shareholder rights protection, employee growth and care, partner collaboration, environmental protection and safety production, and social responsibility fulfillment, aiming for the joint enhancement of corporate and social value - The company continuously improves its governance system, safeguards shareholders' legitimate rights and interests, and emphasizes market value management and investor relations management[74] - The company legally enforces labor laws, establishes training, performance, and compensation systems, provides career development paths, and regularly organizes occupational health examinations[74] - The company establishes a standardized supplier management system, complies with anti-commercial bribery and anti-unfair competition laws and regulations, and maintains fair and transparent business cooperation relationships[75] - The company has established a dedicated safety and environmental protection management department, implemented an environmental management system and safety production management regulations, fulfilled clean production requirements, and ensured pollutant discharge meets standards[75] - The company actively participates in regional economic development and community building, fulfilling social responsibilities through compliant taxation, employment promotion, and other means, while also promoting industrial technological progress[75] Item 5. Significant Matters This section covers various significant events and commitments related to the company, its shareholders, and operations I. Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, 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 all duly fulfilled their commitments regarding share reductions, avoidance of horizontal competition, standardization of related-party transactions, fund occupation, and dividend distribution during the reporting period, with no overdue unfulfilled commitments - The company's actual controllers, Yang Yonggang and Wen Yuefang, and other shareholders holding over 5% of shares, all duly fulfilled their share reduction commitments, including lock-up periods, reduction prices, and information disclosure requirements[77][78] - The company's shareholders and actual controllers all duly fulfilled their commitments regarding avoidance of horizontal competition, standardization of related-party transactions, and fund occupation[78][79] - The company duly fulfilled its dividend commitments within the shareholder return plan for the next three years (2024-2026), clarifying the forms of profit distribution, conditions for cash dividends, and relevant policies[77][79][80] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties The company had no non-operating fund occupation by controlling shareholders or other related parties during the reporting period III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period IV. Appointment and Dismissal of Accounting Firms The company's half-year report was unaudited - The company's half-year report was unaudited[83] 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 The company had no non-standard audit report during the reporting period VI. Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Prior Year The company had no explanations regarding the prior year's non-standard audit report during the reporting period VII. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period VIII. Litigation Matters The company had no significant litigation or arbitration matters during the reporting period, but there is one other lawsuit where plaintiff Wen Yuefang seeks to revoke the company's Board of Directors' resolution of November 29, 2024, and the Fourth Interim Shareholders' Meeting resolution of December 16, 2024; this case is in its first-instance trial phase, with no effective judgment yet, and does not affect the company's daily operations or current period profit - The company has no significant litigation or arbitration matters[86] - There is another litigation matter: plaintiff Wen Yuefang requests the revocation of the company's Board of Directors' resolution of November 29, 2024, and the Shareholders' Meeting resolution of December 16, 2024, with the amount involved being CNY 0[86] - This lawsuit is currently in the first-instance trial phase, with no effective judgment rendered as of the end of the reporting period, and it does not affect the company's daily operations or current period profit[86] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period 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, nor any dealings with affiliated finance companies. The company identified Jiangsu Sanqiang Composite Materials Co., Ltd. as a related party and engaged in sales transactions with it - The company had no related-party transactions related to daily operations, asset or equity acquisition/disposal, joint external investments, or related-party creditor-debtor relationships during the reporting period[88][89][90][91] - 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[92][93] - The company identified Jiangsu Sanqiang Composite Materials Co., Ltd. as a related party and engaged in sales transactions with it, with the current period's amount being CNY 11,187,796.00[102][103][384] XII. Significant Contracts and Their Performance The company had no entrustment, contracting, leasing matters, or significant guarantees during the reporting period. In its daily operations, the company signed product order contracts totaling CNY 2.169 billion and material procurement contracts totaling CNY 423.648 million with Customer A, recognizing sales revenue of CNY 208.57 million and CNY 17.758 million respectively for the current period, with good collection status and no significant changes in contract performance conditions - The company had no entrustment, contracting, leasing matters, or significant guarantees during the reporting period[95][96][97][98] Significant Contracts | Contract Name | Customer Name | Total Contract Amount (CNY ten thousands) | Sales Revenue Recognized in Current Period (CNY ten thousands) | Cumulative Sales Revenue Recognized (CNY ten thousands) | Collection Status | Significant Change in Contract Performance Conditions | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Product Order Contract | Customer A | 216,936.65 | 20,857.00 | 133,642.50 | Good | No | | Material Procurement Contract | Customer A | 42,364.80 | 1,775.80 | 33,471.50 | Good | No | XIII. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period XIV. Significant Matters of Company Subsidiaries On January 8, 2025, the company established Jiangsu Changhong Functional Materials Co., Ltd. as a controlling subsidiary with a registered capital of CNY 100 million, holding a 90% stake, aiming to cultivate new business growth points, create synergy with the company, and optimize industrial layout in key areas - On January 8, 2025, the company established Jiangsu Changhong Functional Materials Co., Ltd. as a controlling subsidiary with a registered capital of CNY 100 million, contributing CNY 90 million in cash for a 90% equity stake[103][369][370] - Changhong Functional Materials aims to cultivate new business growth points, generate synergistic effects with the company, and enhance the company's industrial layout in key areas[103][370] Item 6. Share Changes and Shareholder Information This section details changes in the company's share capital and provides information on its shareholders I. Share Changes During the reporting period, restricted shares increased by 127,523 shares, with a corresponding decrease in unrestricted shares, primarily due to the appointment of Ms. Hu Peixian as Deputy General Manager, leading to a partial lock-up of her shares. The company approved a share repurchase proposal on April 12, 2025, completed it by May 23, 2025, repurchasing a total of 2,344,400 shares, representing 0.53% of the total share capital, for a total of CNY 79,992,314.00 Share Changes | Share Type | Number Before Change (shares) | Increase/Decrease in Current Change (shares) | Number After Change (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 15,964,753 | 127,523 | 16,092,276 | | Unrestricted Shares | 423,742,784 | -127,523 | 423,615,261 | | Total Shares | 439,707,537 | 0 | 439,707,537 | - Restricted shares increased by 127,523 shares, and unrestricted shares decreased by 127,523 shares, due to the appointment of Ms. Hu Peixian as Deputy General Manager, resulting in a partial lock-up of her shares[107] - The company approved a share repurchase proposal on April 12, 2025, with a repurchase price not exceeding CNY 52.47/share and a total repurchase amount of no less than CNY 70 million and no more than CNY 80 million[108] - As of May 23, 2025, the share repurchase plan was completed, with a cumulative repurchase of 2,344,400 shares, accounting for 0.53% of the total share capital, and a total transaction amount of CNY 79,992,314.00[109] II. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period III. Shareholder Numbers and Shareholding At the end of the reporting period, the total number of common shareholders was 36,024. Among the top ten shareholders, Changzhou Huatai Investment Management Co., Ltd. held the highest stake at 13.80%, and Mr. Yang Yonggang's total actual voting rights amounted to 5.83%. The shareholding of the top ten unrestricted shareholders was also disclosed - The total number of common shareholders at the end of the reporting period was 36,024[113] Top Ten Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Changzhou Huatai Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 13.80% | 60,685,622 | 0 | 60,685,622 | | Changzhou Zhongjian Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3.36% | 14,782,901 | 0 | 14,782,901 | | Zhao Qinmin | Domestic Natural Person | 2.88% | 12,669,943 | 0 | 12,669,943 | | Yang Yonggang | Domestic Natural Person | 2.47% | 10,861,059 | 8,145,794 | 2,715,265 | | Wen Yuefang | Domestic Natural Person | 2.15% | 9,443,180 | 7,082,385 | 2,360,795 | | Genertec Venture Capital Co., Ltd. - Genertec High-End Equipment Industry Equity Investment (Tongxiang) Partnership (Limited Partnership) | Other | 2.02% | 8,902,077 | 0 | 8,902,077 | | Zhou Jinchi | Overseas Natural Person | 1.81% | 7,950,830 | 0 | 7,950,830 | | Changzhou Sanmao Textile Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 1.67% | 7,333,700 | 0 | 7,333,700 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.14% | 4,996,854 | 0 | 4,996,854 | | China Construction Bank Corporation - Guotai CSI Military Industry ETF | Other | 0.93% | 4,081,353 | 0 | 4,081,353 | - Mr. Yang Yonggang's total actual voting rights are 5.83% (directly holding 2.47% of shares, indirectly controlling 3.36% of Zhongjian Partnership shares)[114] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, Deputy General Manager Hu Peixian's shareholding did not change in quantity, but 127,523 shares she held were locked due to her appointment as a senior management officer Shareholding Changes of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Number of Shares Held at Beginning of Period (shares) | Number of Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Hu Peixian | Deputy General Manager | Current | 170,031 | 170,031 | - At the beginning of the reporting period, Hu Peixian did not hold a senior management position in the company; during the reporting period, she was appointed as Deputy General Manager, thus her shareholding corresponding to her director, supervisor, and senior management identity changed, but her actual shareholding as a company shareholder remained unchanged throughout the reporting period[117] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period VI. Preferred Shares The company had no preferred shares during the reporting period Item 7. Bond-Related Information This section provides information regarding the company's bond-related activities Bond-Related Information The company had no bond-related information during the reporting period Item 8. Financial Report This section presents the company's comprehensive financial statements and related notes I. Audit Report The company's half-year financial report was unaudited - The company's half-year financial report was unaudited[123] II. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively illustrating the company's financial position, operating results, and cash flow 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 4,819,142,131.62, with total current assets of CNY 2,680,525,592.82 and total non-current assets of CNY 2,138,616,538.80. Total liabilities amounted to CNY 418,426,074.15, and total owners' equity was CNY 4,400,716,057.47 Consolidated Balance Sheet | Item | Balance at Period-End (CNY) | Balance at Period-Beginning (CNY) | | :--- | :--- | :--- | | Monetary Funds | 716,739,417.24 | 643,060,831.08 | | Trading Financial Assets | 1,083,645,083.56 | 1,153,691,376.72 | | Notes Receivable | 2,825,477.50 | 92,262,585.36 | | Accounts Receivable | 776,435,519.98 | 835,058,483.10 | | Inventories | 85,737,574.00 | 82,004,727.46 | | Fixed Assets | 1,457,116,497.07 | 1,357,248,462.15 | | Construction in Progress | 328,691,657.00 | 310,585,362.01 | | Deferred Income Tax Assets | 6,264,434.32 | 17,223,130.19 | | Notes Payable | 145,822,419.72 | 28,011,846.78 | | Accounts Payable | 72,823,119.76 | 56,536,258.43 | | Long-Term Borrowings | 4,480,897.94 | 0 | | Deferred Income Tax Liabilities | 118,511,705.73 | 107,920,895.02 | | Total Owners' Equity Attributable to Parent Company | 4,389,976,584.16 | 4,355,406,404.65 | | Total Liabilities and Owners' Equity | 4,819,142,131.62 | 4,642,538,849.26 | 3. Consolidated Income Statement For the first half of 2025, the company achieved total operating revenue of CNY 463,969,960.29, a year-on-year increase of 59.46%. Net profit was CNY 208,374,181.49, up 99.07% year-on-year. Net profit attributable to parent company shareholders was CNY 208,466,471.89, with basic earnings per share of CNY 0.47 Consolidated Income Statement | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 463,969,960.29 | 290,971,246.98 | | Total Operating Costs | 228,231,562.21 | 184,004,718.49 | | Operating Profit | 258,133,562.05 | 121,064,149.59 | | Total Profit | 258,133,562.05 | 120,864,149.59 | | Income Tax Expense | 49,759,380.56 | 16,186,982.37 | | Net Profit | 208,374,181.49 | 104,677,167.22 | | Net Profit Attributable to Parent Company Shareholders | 208,466,471.89 | 104,676,840.64 | | Basic Earnings Per Share | 0.47 | 0.24 | | Diluted Earnings Per Share | 0.47 | 0.24 | 5. Consolidated Cash Flow Statement For the first half of 2025, net cash flow from operating activities was CNY 458,886,600.83, a significant year-on-year increase of 228.23%. Net cash flow from investing activities was -CNY 216,554,604.49, primarily due to increased cash management and project expenditures. Net cash flow from financing activities was -CNY 168,795,486.85, mainly due to increased cash dividends and share repurchases. The balance of cash and cash equivalents at period-end was CNY 713,870,813.60 Consolidated Cash Flow Statement | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 458,886,600.83 | 139,805,671.82 | | Net Cash Flow from Investing Activities | -216,554,604.49 | 61,410,200.79 | | Net Cash Flow from Financing Activities | -168,795,486.85 | -52,289,538.14 | | Net Increase in Cash and Cash Equivalents | 73,536,509.49 | 148,926,334.47 | | Balance of Cash and Cash Equivalents at Period-End | 713,870,813.60 | 780,919,974.16 | III. Company Overview Zhongjian Technology Co., Ltd., formerly Zhongjian Technology Development Co., Ltd., was established in 2008. Through successive capital increases and equity transfers, its registered capital gradually increased, and its share capital reached CNY 439,707,537.00 through initial public offering and private placement. The company primarily engages in the R&D, production, and sales of high-performance carbon fiber and fabrics, belonging to the chemical fiber manufacturing industry - The company was established on April 28, 2008, formerly known as Zhongjian Technology Development Co., Ltd.[154] - The company's share capital increased to CNY 439,707,537.00 through an initial public offering and private placement[155][156][157] - The company's main business is the R&D, production, and sales of high-performance carbon fiber and fabrics, belonging to the chemical fiber manufacturing industry[157] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no events or circumstances that would raise significant doubt about its ability to continue as a going concern for 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[158] - There are no events or circumstances that would raise significant doubt about the company's ability to continue as a going concern for 12 months from the end of the reporting period[159] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including statements of compliance with enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, various receivables, inventories, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases, with no significant changes in accounting policies or estimates during the reporting period - The company's financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting its financial position, operating results, and cash flows[161] - The company adopts the expected credit loss model to accrue loss provisions for financial instruments, notes receivable, accounts receivable, other receivables, and other items[177][180][181][184] - Fixed assets are depreciated using the straight-line method, with buildings and structures depreciated over 20 years and machinery and equipment over 10 years[200] - Intangible assets include land use rights, software, patents, etc., with finite-lived intangible assets amortized using a systematic and reasonable method[203][204] - Revenue recognition principles involve identifying individual performance obligations, determining whether they are satisfied over time or at a point in time, and recognizing revenue based on the progress of performance or when the customer obtains control[220][221] - There were no significant changes in accounting policies and estimates during the reporting period[238] VI. Taxation The company's main taxes include VAT (13%, 6%), Urban Maintenance and Construction Tax (7%), Corporate Income Tax (15%, 20%), Property Tax (1.20%), Education Surcharge (3%), and Local Education Surcharge (2%). As a high-tech enterprise, the company is subject to a 15% corporate income tax rate. Some subsidiaries, as small low-profit enterprises, are subject to a 20% corporate income tax rate, with an effective rate of 5%. The company also benefits from the VAT super deduction policy for advanced manufacturing enterprises Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%、6% | | Urban Maintenance and Construction Tax | 7% | | Corporate Income Tax | 15%、20% | | Property Tax | 1.20% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | - The company is recognized as a high-tech enterprise, subject to a corporate income tax rate of 15%[238] - Subsidiaries Zhongjian New Materials Development (Changzhou) Co., Ltd. and Zhongjian Carbon Fiber and Composite Materials (Jiangsu) Research Institute Co., Ltd. are eligible for small low-profit enterprise policies, with an effective corporate income tax rate of 5% for 2024[238] - The company benefits from the VAT super deduction policy for advanced manufacturing enterprises, allowing an additional 5% deduction from current deductible input VAT against payable VAT[238] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various asset, liability, owners' equity, and profit/loss items in the consolidated financial statements, including monetary funds, trading financial assets, notes receivable, accounts receivable, other receivables, prepayments, inventories, fixed assets, construction in progress, intangible assets, deferred income tax assets/liabilities, notes payable, accounts payable, employee benefits payable, taxes payable, long-term borrowings, deferred income, share capital, capital reserves, treasury stock, special reserves, surplus reserves, undistributed profits, operating revenue and costs, various expenses, other income, fair value change gains, investment income, credit impairment losses, asset disposal gains, income tax expenses, and cash flow statement items - Monetary funds at period-end totaled CNY 716,739,417.24, including restricted funds of CNY 3,038,229.21, primarily for bank acceptance bill deposits and talent special funds[240][241][307][308] - Trading financial assets at period-end totaled CNY 1,083,645,083.56, primarily consisting of bank wealth management products[244] - Accounts receivable at period-end totaled CNY 776,435,519.98, with a bad debt provision of CNY 16,666,960.90, and a relatively high proportion of accounts receivable from major customers A and Q[252][253][255][257] - Fixed assets had a carrying value of CNY 1,457,116,497.07 at period-end, and construction in progress had a carrying value of CNY 314,164,620.70, with the Phase III and Phase IV projects being the main components[283][287] - R&D expenses for the current period amounted to CNY 38,956,260.75, a decrease from CNY 57,052,181.16 in the prior period, primarily due to production lines prioritizing manufacturing tasks, leading to a slower R&D pace[343] - Treasury stock at period-end totaled CNY 110,002,212.86, with an increase of CNY 79,999,518.07 in the current period, mainly due to share repurchases[333] VIII. R&D Expenses Total R&D expenses for the current period were CNY 38,956,260.75, a decrease from CNY 57,052,181.16 in the prior year period, primarily comprising direct inputs like materials, personnel compensation, and depreciation/amortization, with all R&D expenditures expensed R&D Expenses | Item | Amount Incurred in Current Period (CNY) | Amount Incurred in Prior Period (CNY) | | :--- | :--- | :--- | | Direct Inputs such as Materials | 15,872,370.77 | 14,386,492.75 | | Personnel Compensation | 11,731,649.07 | 10,403,502.68 | | Depreciation and Amortization | 9,084,258.87 | 31,913,679.06 | | Total | 38,956,260.75 | 57,052,181.16 | | Of which: Expensed R&D Expenditures | 38,956,260.75 | 57,052,181.16 | IX. Changes in Consolidation Scope During the reporting period, the company established a new subsidiary, Jiangsu Changhong Functional Materials Co., Ltd., and included it in the consolidation scope; this company was legally registered on January 8, 2025, with the company holding a 90% stake - The company established a new subsidiary, Jiangsu Changhong Functional Materials Co., Ltd., and included it in the consolidation scope during the current reporting period[369] - Jiangsu Changhong Functional Materials Co., Ltd. was established on January 8, 2025, with the company holding a 90% equity stake[370] X. Interests in Other Entities The company holds interests in Zhongjian New Materials Development (Changzhou) Co., Ltd. (51% stake), Zhongjian Carbon Fiber and Composite Materials (Jiangsu) Research Institute Co., Ltd. (100% stake), and Jiangsu Changhong Functional Materials Co., Ltd. (90% stake) Interests in Subsidiaries | Subsidiary Name | Registered Capital (CNY) | Business Nature | Shareholding Percentage (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | :--- | | Zhongjian New Materials Development (Changzhou) Co., Ltd. | 28,000,000.00 | Technology Promotion and Application Services | 51.00% | Business combination not under common control | | Zhongjian Carbon Fiber and Composite Materials (Jiangsu) Research Institute Co., Ltd. | 10,000,000.00 | Research and Experimental Development | 100.00% | Newly established | | Jiangsu Changhong Functional Materials Co., Ltd. | 100,000,000.00 | New material technology R&D, promotion, functional material sales | 90.00% | Newly established | XI. Government Grants At the end of the reporting period, the company recognized government grant liabilities as deferred income, with a period-end balance of CNY 31,871,902.64, of which CNY 2,722,978.32 was transferred to other income in the current period, related to assets. The total government grants recognized in current profit or loss for the period amounted to CNY 2,727,480.73 Government Grants | Accounting Account | Balance at Period-Beginning (CNY) | Amount Transferred to Other Income in Current Period (CNY) | Balance at Period-End (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 34,594,880.96 | 2,722,978.32 | 31,871,902.64 | Asset-related | - The total government grants recognized in current profit or loss for the period amounted to CNY 2,727,480.73[346] XII. Disclosure of Fair Value At period-end, the company's assets measured at fair value primarily consisted of trading financial assets (bank cash management products), totaling CNY 1,083,645,083.56, classified as Level 2 fair value measurements Fair Value at Period-End | Item | Fair Value at Period-End (CNY) | | :--- | :--- | | 1. Financial assets measured at fair value through profit or loss | 1,083,645,083.56 | | Bank cash management products | 1,083,645,083.56 | XIII. Related Parties and Related-Party Transactions The company's related parties include subsidiaries, Changzhou Rongxin Composite Materials Co., Ltd., Changzhou Tenuo Composite Materials Co., Ltd., and Jiangsu Sanqiang Composite Materials Co., Ltd. During the repor