宁波色母(301019) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The Board, Supervisory Board, and senior management guarantee the report's authenticity and completeness; no interim cash dividends, bonus shares, or capital reserve conversions are planned - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Catalogue of Reference Documents This section lists the company's reference documents for the reporting period, including signed financial statements and original announcements, available at the Board Office - Reference documents include signed and sealed financial statements, original drafts of publicly disclosed documents, and the original semi-annual report[8][9][10] - Documents are available at the company's Board of Directors Office[12] Definitions This section defines common terms used in the report, covering regulatory bodies, company entities, reporting period, and various product materials - Reporting Period: January 1, 2025, to June 30, 2025[13] - Color Masterbatch: Composed of pigment, resin, and additives, it is a cylindrical or spherical polymer granule formed by uniformly loading appropriate pigment into resin[13] Company Profile and Key Financial Indicators Company Profile This section provides the company's basic information, including stock ticker "Ningbo Color Masterbatch", stock code 301019, and legal representative Ren Weiqing Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Ningbo Color Masterbatch | | Stock Code | 301019 | | Stock Exchange | Shenzhen Stock Exchange | | Legal Representative | Ren Weiqing | Contact Persons and Information This section discloses contact information for the company's Board Secretary Chen Jianguo and Securities Affairs Representative Pan Lichao Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Chen Jianguo | No. 168 Jinhui West Road, Panhu Street, Yinzhou District, Ningbo City, Zhejiang Province | 0574-88393328 | 0574-88393335 | nbsml@muli.cn | | Securities Affairs Representative | Pan Lichao | No. 168 Jinhui West Road, Panhu Street, Yinzhou District, Ningbo City, Zhejiang Province | 0574-88393328 | 0574-88393335 | nbsml@muli.cn | Other Information This section states that the company's contact information, disclosure, and registration details remained unchanged during the reporting period - The company's registered address, office address, postal code, website, and email remained unchanged during the reporting period[18] - Information disclosure and document availability locations remained unchanged during the reporting period[19] - The company's registration status remained unchanged during the reporting period[20][21] Key Accounting Data and Financial Indicators This section presents key accounting data and financial indicators, showing a 7.95% revenue decrease but a 10.50% net profit increase and 59.35% operating cash flow growth Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 219,394,197.34 | 238,352,163.56 | -7.95% | | Net Profit Attributable to Shareholders of Listed Company | 52,013,927.00 | 47,072,024.28 | 10.50% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 43,209,875.70 | 40,687,675.52 | 6.20% | | Net Cash Flow from Operating Activities | 47,216,327.34 | 29,630,112.90 | 59.35% | | Basic Earnings Per Share (RMB/share) | 0.31 | 0.28 | 10.71% | | Diluted Earnings Per Share (RMB/share) | 0.31 | 0.28 | 10.71% | | Weighted Average Return on Net Assets | 4.65% | 4.20% | 0.45% | Key Accounting Data and Financial Indicators (Period-End Comparison) | Indicator | Current Period-End (RMB) | Prior Year-End (RMB) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 1,253,385,064.23 | 1,252,170,524.36 | 0.10% | | Net Assets Attributable to Shareholders of Listed Company | 1,052,778,094.53 | 1,138,303,128.31 | -7.51% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit or net assets between international/overseas and Chinese accounting standards - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[23] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[24] Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses totaling RMB 8,804,051.30, primarily from asset disposal, government grants, and financial instrument fair value changes Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets (including the write-back of asset impairment provisions) | 171,953.97 | | Government grants recognized in current profit or loss (excluding those closely related to the company's ordinary operations, compliant with national policies, enjoyed under fixed standards, and with a continuous impact on company profit or loss) | 2,463,304.56 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities, excluding effective hedge accounting related to ordinary business operations | 7,529,022.03 | | Other non-operating income and expenses apart from the above items | 208,507.88 | | Less: Income tax impact | 1,568,737.14 | | Total | 8,804,051.30 | Management Discussion and Analysis Company's Main Business Activities During the Reporting Period The company primarily engages in R&D, production, sales, and technical services of customized plastic color masterbatches for diverse industries, with no change in main business during the period - The company primarily engages in the R&D, production, sales, and technical services of color masterbatches, committed to providing customized plastic coloring products to customers[29] - The company's products are widely used in electronics, daily necessities, food and beverages, chemicals, daily chemicals, building materials, agriculture, automotive, and medical fields[29] - The company's main business activities remained unchanged during the reporting period[30] Main Products The company's main products are color masterbatches, including four categories: color, white, black, and functional, applied across various plastic products and industries Company's Main Products and Application Areas | Product Category | Product Description | Application Areas | | :--- | :--- | :--- | | Color Masterbatch | Selected plastic resins, pigments, and additives are processed through high-speed mixing, uniform temperature-controlled kneading, extrusion, cooling, and pelletizing to produce various colors according to customer requirements | Food and beverage packaging, electronics, daily chemicals, daily necessities, etc | | White Masterbatch | Selected plastic resins, titanium dioxide, and additives are processed through pressurized mixing, uniform temperature-controlled kneading, extrusion, cooling, and pelletizing, with titanium dioxide content in products typically ranging from 40%-70% | Home appliances, optical films, food and pharmaceutical packaging films, food and beverage packaging, medical supplies, plastic raw materials, etc | | Black Masterbatch | Selected plastic resins, carbon black, and additives are processed through pressurized mixing, uniform temperature-controlled kneading, extrusion, cooling, and pelletizing, with carbon black content in products typically ranging from 10%-50% | Electronics, automotive plastic parts, shade nets, agricultural films, modified plastics, etc | | Functional Masterbatch | Selected plastic resins, pigments, processing aids, and functional additives are processed through low-speed stirring pretreatment, high-speed mixing, uniform temperature-controlled kneading, extrusion, and pelletizing | Home appliances, optical films, daily necessities, electronic products, building materials, plastic raw materials, etc | Business Model The company operates on a customized product and service model, with independent R&D, combined order-based and stock-up procurement, order-based production, and direct sales - Profit Model: Based on advanced color matching technology, mature production processes, and independent innovation capabilities, the company provides customized production and services according to customer needs, offering stable quality and high-performance products to achieve profitability[32] - R&D Model: Adopts an independent R&D model, guided by customer and market demands for new product, process, and technology development, including solution planning, formula system output, review, trial production verification, and result confirmation[33] - Procurement Model: Combines "order-based procurement and stock-up procurement", with main raw materials including plastic resins, titanium dioxide, pigments, carbon black, and additives[34] - Production Model: Adopts an "order-based" production model, where products are highly customized and require trial production and customer approval before mass production[35] - Sales Model: Primarily direct sales, with no dealer sales; some customers are traders, all using outright sales; some products are sold via entrusted processing[36] Company's Main Performance Drivers During the Reporting Period Performance drivers include customized orders, product innovation, RMB 8.0757 million R&D investment, talent development, and market expansion, contributing to RMB 219.3942 million revenue and RMB 52.0139 million net profit - During the reporting period, the company achieved operating revenue of RMB 219.3942 million, net profit attributable to shareholders of RMB 52.0139 million, and net profit attributable to shareholders excluding non-recurring gains and losses of RMB 43.2099 million[38] - Total R&D expenses during the reporting period were RMB 8.0757 million, accounting for 3.68% of operating revenue, ensuring the company's continuous innovation capability[38] - Adhering to a customized order model for customers, optimizing innovative product structures, and enhancing core competitiveness[38] - Strengthening talent cultivation, optimizing a younger talent structure, and enhancing team building[39][40] - Actively expanding markets, optimizing customer structure, and promoting brand building[41] Core Competitiveness Analysis The company's core competitiveness stems from 40 years of experience, encompassing R&D, customer resources, product quality, technical services, brand recognition, standard setting, and robust management - Technological R&D Advantage: Possesses advanced color matching technology, a self-developed trial production mechanism simulating customer production processes, production technology for uniform pigment dispersion, and 11 authorized invention patents[42][43] - Customer Resource Advantage: Wide application in downstream industries, established long-term stable cooperative relationships with numerous well-known enterprises, and capable of promptly understanding new customer demands[44] - Product Quality Advantage: Ensures product quality stability and consistency through leading color matching technology, production processes, and a complete and strict quality control system, fostering customer loyalty[45] - Supporting Technical Service Advantage: Provides full-process services to customers in product development, production, and after-sales, ensuring efficient interaction and rapid response to customer needs[46] - Brand Advantage: Owns the "Mingzhou" Zhejiang Provincial Famous Trademark, possessing high brand recognition and influence in the domestic and international color masterbatch industry[47] - Standard Setting Advantage: Is a Vice President Unit of the China Dyestuff Industry Association, participated in or led the drafting of 5 industry standards, 1 national standard, and 4 upstream and downstream industry standards, enhancing its industry influence[48] - Management Advantage: Possesses a stable management team with many years of industry experience, established comprehensive management systems for procurement, production, sales, and R&D, and obtained ISO9001, ISO45001, and ISO14001 system certifications[49] Main Business Analysis Main business remained stable, with revenue down 7.95% but costs down 13.86%, improving gross margin; operating cash flow surged 59.35% due to reduced raw material purchases - The company's profit structure or sources of profit did not undergo significant changes during the reporting period[52] Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 219,394,197.34 | 238,352,163.56 | -7.95% | | | Operating Cost | 139,013,196.96 | 161,375,152.54 | -13.86% | | | Selling Expenses | 14,108,577.31 | 13,433,934.82 | 5.02% | | | Administrative Expenses | 7,385,756.49 | 7,917,152.41 | -6.71% | | | Financial Expenses | -965,195.50 | -2,384,401.10 | | Primarily due to a decrease in bank deposit scale and lower interest rates | | Income Tax Expense | 8,246,410.40 | 7,371,677.78 | 11.87% | | | R&D Investment | 8,075,748.60 | 8,558,210.87 | -5.64% | | | Net Cash Flow from Operating Activities | 47,216,327.34 | 29,630,112.90 | 59.35% | Primarily due to a decrease in raw material procurement during the current period | | Net Cash Flow from Investing Activities | 80,603,456.08 | -60,588,236.45 | | Primarily due to the maturity of wealth management products during the current period | | Net Cash Flow from Financing Activities | -38,884,926.18 | -66,516,220.53 | | Primarily due to repayment of borrowings and dividend distribution in the prior period | | Net Increase in Cash and Cash Equivalents | 88,931,105.48 | -97,473,652.51 | | | Products or Services Accounting for Over 10% | Product or Service | Operating Revenue (RMB 10,000) | Operating Cost (RMB 10,000) | Gross Profit Margin | Operating Revenue Change from Prior Period | Operating Cost Change from Prior Period | Gross Profit Margin Change from Prior Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Color Masterbatch | 20,619.52 | 12,942.28 | 37.23% | -9.47% | -15.54% | 4.51% | Non-Core Business Analysis Non-core business, primarily investment income of RMB 7.529 million and government grants of RMB 3.294 million, accounted for 12.49% and 5.47% of total profit, respectively, and are not sustainable Composition of Non-Core Business | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 7,529,022.03 | 12.49% | Investment income generated from cash management of own funds and raised funds | No | | Other Income | 3,294,555.54 | 5.47% | Due to various government awards and VAT super deduction benefits for advanced manufacturing enterprises | No | Analysis of Assets and Liabilities Total assets slightly increased by 0.10%, while net assets attributable to shareholders decreased by 7.51%; changes in asset composition include increased cash and other payables (due to dividend accrual), with no major changes in asset measurement attributes Significant Changes in Asset Composition | Item | Current Period-End Amount (RMB) | Proportion of Total Assets | Prior Year-End Amount (RMB) | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 187,462,037.53 | 14.96% | 99,237,669.02 | 7.03% | | | Accounts Receivable | 141,476,268.39 | 11.29% | 143,527,693.02 | -0.17% | | | Inventories | 60,224,660.10 | 4.80% | 66,206,117.36 | -0.49% | | | Construction in Progress | 114,146,275.97 | 9.11% | 97,319,470.40 | 1.34% | | | Financial Assets Held for Trading | 162,850,000.00 | 12.99% | 205,120,000.00 | -3.39% | | | Other Current Assets | 402,058,168.42 | 32.08% | 458,479,926.35 | -4.53% | | | Other Payables | 106,946,726.56 | 8.53% | 7,203,536.39 | 7.95% | Accrual of cash dividends of RMB 98,978,034.60 | | Treasury Stock | 50,496,296.60 | 4.03% | 11,939,628.33 | 3.08% | | - The company's main asset measurement attributes did not undergo significant changes during the reporting period[60][61] Asset Restrictions as of the End of the Reporting Period | Item | Period-End Book Balance (RMB) | Period-End Book Value (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 851,193.22 | 851,193.22 | Other | Notes receivable that have been discounted or endorsed but not yet matured | Investment Analysis Investment decreased by 100% to RMB 0; major non-equity projects are delayed to June 2026, while a Zhongshan expansion project is operational but underperforming; total raised funds utilization is 65.26% Investment Amount During the Reporting Period | Indicator | Investment Amount in Current Period (RMB) | Investment Amount in Prior Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 0.00 | 1,000,000.00 | -100.00% | - The "Annual Production of 20,000 Tons of Mid-to-High-End Color Masterbatch Project" has been delayed to June 23, 2026, with cumulative investment reaching 73.47% of the budget to date[72][73][95] - The "R&D Center Upgrade Project" has been delayed to June 23, 2026, with cumulative investment reaching 36.75% of the budget to date[72][73] - The "Annual Production of 10,000 Tons of Mid-to-High-End Color Masterbatch Zhongshan Expansion Project" commenced operation in June 2023, but its capacity was not fully utilized this period, thus failing to meet expected returns[73] Overall Utilization of Raised Funds | Indicator | Amount (RMB 10,000) | Proportion | | :--- | :--- | :--- | | Net Amount of Raised Funds | 51,054.96 | | | Total Raised Funds Used in Current Period | 3,121.44 | | | Total Raised Funds Cumulatively Used | 33,316.42 | 65.26% | | Unused Raised Funds | 20,465.61 | | - As of June 30, 2025, the company had unused raised funds of RMB 206,753,238.55, including RMB 147,850,000 for structured deposits, RMB 12,000,000 for large-denomination certificates of deposit, and RMB 46,594,071.88 in special raised funds accounts[70] Overview of Wealth Management During the Reporting Period | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (RMB 10,000) | Unmatured Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 44,136 | 15,985 | | Bank Wealth Management Products | Own Funds | 18,970 | 38,539.73 | | Total | | 63,106 | 54,524.73 | Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[80] - The company did not sell significant equity during the reporting period[81] Analysis of Major Holding and Participating Companies This section details financial data for major subsidiaries, Ningbo Color Masterbatch (Chuzhou) and (Zhongshan), with no acquisitions or disposals during the period Financial Performance of Major Subsidiaries | Company Name | Company Type | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Color Masterbatch (Chuzhou) Co., Ltd. | Subsidiary | 60,000,000 | 163,116,798.75 | 58,783,323.51 | 9,443.31 | 275,334.49 | 208,001.14 | | Ningbo Color Masterbatch (Zhongshan) Co., Ltd. | Subsidiary | 30,000,000 | 40,087,666.56 | 1,431,761.35 | 25,668,176.00 | 1,131,015.75 | 1,103,967.36 | - No subsidiaries were acquired or disposed of during the reporting period[82] Information on 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[83] Risks Faced by the Company and Countermeasures The company faces risks from market competition, raw material price volatility, bad debts, underperforming new capacity, and talent loss, addressed by differentiated strategies, R&D, and enhanced management - Risk of intensified market competition: The color masterbatch industry is highly market-oriented, and the entry of new competitors and expansion of large enterprises may affect the company's market share, sales prices, and gross profit margins[83] - Measures to address market competition risk: Adopt differentiated competition and industry chain integration strategies, optimize product and customer structures, increase R&D investment and technological innovation, enhance the "MINGZHOU" brand position, advance fundraising projects, rationally plan production bases, and improve capacity and utilization rates[83][84] - Risk of fluctuations in major raw material prices: The company's direct material costs account for a relatively high proportion, and significant increases in raw material prices may adversely affect operating performance and gross profit margins[85] - Measures to address raw material price fluctuation risk: Continuously monitor market supply and demand changes, pre-determine materials and prices with suppliers, lock in materials and prices with strategic suppliers, and negotiate bulk prices; increase R&D investment, optimize product structure, improve inventory structure; strengthen institutional building and internal controls[85] - Risk of accounts receivable bad debt losses: The book value of accounts receivable at period-end accounts for a relatively high proportion of total assets, and unfavorable customer operating conditions may lead to inability to collect on schedule[86] - Measures to address accounts receivable bad debt risk: Improve the "Accounts Receivable Management System", strictly collect payments within the contractual credit period; charge penalty interest for anticipated delayed payments, and intensify collection efforts through legal measures[86] - Risk that new production capacity may not achieve expected benefits: The Chuzhou subsidiary's investment project is under construction and may face risks such as intensified industry competition, raw material price fluctuations, and lower-than-expected market demand in the future[87] - Measures to address new capacity risk: Continuously develop new products demanded by the market, strengthen market promotion in product application areas, promptly adjust marketing strategies, reasonably control various costs, strictly manage product quality, prepare raw material procurement plans, enhance customer service quality, and fully explore new economic growth points[87] - Risk of talent loss and technology leakage: Core technologies rely on the experience accumulation of technical personnel, and talent loss may lead to the leakage of core technologies[88] - Measures to address talent loss and technology leakage risk: Adhere to technological innovation, focus on introducing high-level professional talent, continuously improve incentive mechanisms and management methods for attracting, cultivating, cherishing, engaging, and protecting talent, strengthen internal talent training, improve the compensation and performance incentive system, and reasonably utilize equity incentive mechanisms[88] Registration Form for Investor Relations Activities During the Reporting Period On May 28, 2025, the company hosted an online investor interaction, discussing company overview, industry analysis, and future development plans Investor Relations Activities During the Reporting Period | Reception Date | Reception Location | Reception Method | Type of Recipient | Main Topics Discussed and Materials Provided | | :--- | :--- | :--- | :--- | :--- | | May 28, 2025 | Ningbo Color Masterbatch Meeting Room | Online platform interaction | Individual Investors | Company overview, industry analysis, future development plans | Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[91] - The company has not disclosed a valuation enhancement plan[91] Implementation of 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 - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[91] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[92] Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period The company plans no interim cash dividends, bonus shares, or capital reserve conversions to share capital - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[93] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[94] Environmental Information Disclosure The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[95] Significant Matters Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period All commitments by the company, its controlling shareholder, and related parties, including share reduction, profit distribution, and related party transactions, were fulfilled on time - The share reduction commitments of the company's directors, supervisors, and senior management are being fulfilled, with no more than 25% of their total shares transferred annually[97] - Controlling shareholder Ren Weiqing committed that the selling price of company shares held by him will not be lower than the initial public offering price within two years after the lock-up period expires[97] - The company, its controlling shareholder, directors, supervisors, and senior management committed that the prospectus contains no false records, misleading statements, or major omissions, and will bear corresponding legal liabilities, including share repurchase and compensation for investor losses[97][98][99] - Controlling shareholder Ren Weiqing committed to avoid horizontal competition, not to unduly interfere with the company's business operations, and not to infringe upon the company's interests[99] - Controlling shareholder Ren Weiqing committed to regulate and reduce related party transactions, conducting them on fair, equitable, and arm's length principles, and adhering to decision-making procedures[100] - The company and relevant parties committed to strictly fulfill the commitments disclosed in the prospectus and to formulate remedial measures for breaches of trust[100][101][102] - All commitments were fulfilled on time[102] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties There were no non-operating funds occupied by the controlling shareholder or other related parties during the reporting period - There were no instances of non-operating funds being occupied by the controlling shareholder or other related parties of the listed company during the reporting period[103] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[104] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[105] Board of Directors, Supervisory Board, and Audit Committee's Explanation on "Non-Standard Audit Report" for the Current Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[106] Board of Directors' Explanation on "Non-Standard Audit Report" for the Prior Year The company provided no explanation regarding a non-standard audit report for the prior year - The company provided no explanation regarding a non-standard audit report for the prior year during the reporting period[106] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[106] Litigation Matters The company had no significant litigation, arbitration, or other legal matters during the reporting period - The company had no significant litigation or arbitration matters during the current reporting period[107] 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[107] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity with no adverse incidents during the reporting period - The company, its controlling shareholder, and actual controller maintained good integrity[108] Significant Related Party Transactions The company had routine related party transactions, primarily selling goods worth RMB 459,993.64 to Ningbo Jinzhong Plastic Co., Ltd., within approved limits, with no other significant related party transactions Related Party Transactions Related to Ordinary Operations | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (RMB 10,000) | Approved Transaction Limit (RMB 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Jinzhong Plastic Co., Ltd. | Related party transactions for purchase and sale of goods, provision and acceptance of services | Sale of Goods | 46 | 120 | No | - The company had no related party transactions involving asset or equity acquisition or disposal during the reporting period[110] - The company had no related party transactions involving joint external investments during the reporting period[111] - There were no related party creditor-debtor relationships during the reporting period[112] - There were no deposits, loans, credit lines, or other financial transactions between the company and related financial companies, or between financial companies controlled by the company and related parties[113][114] - The company had no other significant related party transactions during the reporting period[115] Significant Contracts and Their Performance The company had no trusteeship or contracting arrangements. It engaged in leasing as both lessee (factory for storage) and lessor (office space), with no leases exceeding 10% of total profit, and no significant guarantees or other major contracts - The company had no trusteeship arrangements during the reporting period[116] - The company had no contracting arrangements during the reporting period[117] - As a lessee, the company leased factory buildings for warehousing until December 31, 2026, with a total annual rent of RMB 648,000[118] - As a lessor, the company leased office space to Ningbo Ruilixing Commercial Development Co., Ltd. until March 19, 2026, with a total annual rent of RMB 300,000[118] - The company had no leasing projects generating profit or loss exceeding 10% of the company's total profit during the reporting period[119] - The company had no significant guarantee situations during the reporting period[120] - The company had no other significant contracts during the reporting period[123] Explanation of Other Significant Matters As of February 7, 2025, the company completed its share repurchase plan, buying back 3,036,604 shares (1.8075% of total capital) for RMB 50,496,296.60, exceeding the minimum repurchase amount - As of February 7, 2025, the company completed its share repurchase plan, cumulatively repurchasing 3,036,604 shares, accounting for 1.8075% of the company's total share capital[124] - The total transaction amount for this share repurchase was RMB 50,496,296.60, exceeding the lower limit of RMB 50 million specified in the share repurchase plan[124] Significant Matters of Company Subsidiaries On June 28, 2025, Ningbo Color Masterbatch (Zhongshan) Co., Ltd. increased its registered capital from RMB 1 million to RMB 30 million, completing all necessary registration procedures - On June 28, 2025, the registered capital of Ningbo Color Masterbatch (Zhongshan) Co., Ltd., a wholly-owned subsidiary, was changed from RMB 1 million to RMB 30 million[126] - Ningbo Color Masterbatch (Zhongshan) Co., Ltd. has completed the industrial and commercial change registration procedures and the filing of its Articles of Association[126] Share Changes and Shareholder Information Share Change Information Total shares remained unchanged, with 3,036,604 shares repurchased (1.8075% of total capital); restricted shares are mainly for directors, supervisors, and senior management, with 15,750 shares released this period Share Change Information | Share Class | Number Before Change (shares) | Proportion Before Change | Net Change (＋, －) in Current Period (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 56,534,134 | 33.65% | 0 | 56,534,134 | 33.65% | | II. Unrestricted Shares | 111,465,861 | 66.35% | 0 | 111,465,861 | 66.35% | | III. Total Shares | 167,999,995 | 100.00% | 0 | 167,999,995 | 100.00% | - On February 7, 2025, the company completed its share repurchase plan, repurchasing 3,036,604 shares, accounting for 1.8075% of the company's total share capital, with a total transaction amount of RMB 50,496,296.60[131] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Start (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Ren Weiqing | 37,613,479.00 | 0 | 0 | 37,613,479.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Zhao Maohua | 5,001,398.00 | 0 | 0 | 5,001,398.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Hong Yin | 3,243,563.00 | 0 | 0 | 3,243,563.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Mao Chunguang | 3,031,124.00 | 0 | 0 | 3,031,124.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Zhou Bihong | 2,692,222.00 | 0 | 0 | 2,692,222.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Zhang Xubo | 1,699,219.00 | 0 | 0 | 1,699,219.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Zu Wannian | 1,515,174.00 | 0 | 0 | 1,515,174.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Chen Jianguo | 671,018.00 | 0 | 0 | 671,018.00 | Shares locked by Directors, Supervisors, Senior Management; restriction due to executive tenure | | Chen Zhongfang | 1,082,687 | 15,750 | 0 | 1,066,937 | Director/Senior Executive resigned before end of tenure | | Total | 56,549,884 | 15,750 | 0 | 56,534,134 | | Securities Issuance and Listing Information The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[135] Shareholder Numbers and Shareholding Information Total common shareholders were 9,980. Ren Weiqing is the largest shareholder with 29.85%, and the company's repurchase account holds 1.81% of shares - Total number of common shareholders at period-end: 9,980[136] Shareholding of Shareholders with Over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Ren Weiqing | Domestic Natural Person | 29.85% | 50,151,305 | 37,613,479 | 12,537,826 | | Ningbo Huangrunyuan Equity Investment Partnership (Limited Partnership) | Other | 5.51% | 9,262,173 | 0 | 9,262,173 | | Ningbo Lanrunyuan Equity Investment Partnership (Limited Partnership) | Other | 4.24% | 6,962,347 | 0 | 6,962,347 | | Zhao Maohua | Domestic Natural Person | 3.97% | 6,668,531 | 5,001,398 | 1,667,133 | | Hong Yin | Domestic Natural Person | 2.57% | 4,324,751 | 3,243,563 | 1,081,188 | | Mao Chunguang | Domestic Natural Person | 2.41% | 4,041,499 | 3,031,124 | 1,010,375 | | Zhou Bihong | Domestic Natural Person | 2.14% | 3,589,629 | 2,692,222 | 897,407 | | Dong Xiaofa | Domestic Natural Person | 2.08% | 3,493,810 | 0 | 3,493,810 | | Ningbo Hongrunyuan Equity Investment Partnership (Limited Partnership) | Other | 2.20% | 3,687,989 | 0 | 3,179,689 | | Ningbo Color Masterbatch Co., Ltd. Repurchase Special Securities Account | Other | 1.81% | 3,036,604 | 3,036,604 | 0 | - Ren Weiqing is the executive partner of Ningbo Huangrunyuan Equity Investment Partnership (Limited Partnership); Ren Weiqing is Dong Xiaofa's son-in-law[138] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[139] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[140] - The company's actual controller did not change during the reporting period[140] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[141] 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[143] Financial Report Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[145] Financial Statements This section presents the company's 2025 semi-annual consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity - Consolidated Balance Sheet[147][148][149] - Parent Company Balance Sheet[152][153][154] - Consolidated Income Statement[156][157][158] - Parent Company Income Statement[159][160] - Consolidated Cash Flow Statement[161][162] - Parent Company Cash Flow Statement[165] - Consolidated Statement of Changes in Equity[167][168][169][171][172] - Parent Company Statement of Changes in Equity[174][175][176][177][178] Company Basic Information Ningbo Color Masterbatch Co., Ltd. has a registered capital of RMB 167.999995 million, primarily engaging in R&D, production, and sales of color masterbatches, with Ren Weiqing as the actual controller - As of June 30, 2025, the company's total share capital was 167.999995 million shares, and its registered capital was RMB 167.999995 million[179] - The company's actual main business activities are: engaging in the R&D, production, and sales of color masterbatches[179] - The company's actual controller is Ren Weiqing[180] - These financial statements were approved for issuance by the company's Board of Directors on August 26, 2025[181] Basis of Financial Statement Preparation These financial statements are prepared in accordance with Chinese accounting standards and disclosure rules, based on a going concern assumption, with no significant issues affecting the company's ability to continue as a going concern for at least 12 months - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" promulgated by the Ministry of Finance and the relevant provisions of the China Securities Regulatory Commission's "Reporting Rules for Information Disclosure by Companies Issuing Securities to the Public No. 15 – General Provisions on Financial Reports"[182] - These financial statements are prepared on a going concern basis[183] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[184] Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, covering financial statement compliance, accounting periods, financial instruments, inventory, fixed assets, revenue recognition, government grants, and deferred taxes - These financial statements comply with the requirements of the Enterprise Accounting Standards promulgated by the Ministry of Finance, and truly and completely reflect the consolidated and parent company's financial position as of June 30, 2025, and the consolidated and parent company's operating results and cash flows for January-June 2025[185] Materiality Standards | Item | Materiality Standard | | :--- | :--- | | Significant individual accounts receivable for which bad debt provisions are made | Individual amount > RMB 5 million | | Significant construction in progress | Year-end balance of a single project exceeds 1% of consolidated total assets | | Significant accounts payable overdue or aged over one year | Individual amount > RMB 5 million | | Significant other payables overdue or aged over one year | Individual amount > RMB 5 million | | Significant cash flow from investing activities | Cash flow amount exceeds 5% of consolidated total assets | - Financial assets are classified at initial recognition as: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[205][206] - Inventories are valued using the weighted average method when issued[241] Depreciation Methods for Fixed Assets | Category | Depreciation Method | Depreciation Period | Salvage Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line method | 20 years | 5% | 4.75% | | Machinery and Equipment | Straight-line method | 10 years | 5% | 9.5% | | Transportation Equipment | Straight-line method | 5 years | 5% | 19% | | Electronic Equipment and Others | Straight-line method | 5 years | 5% | 19% | - Expenditures in the research phase are recognized as current period expenses when incurred. Expenditures in the development phase are recognized as intangible assets if they meet specific conditions simultaneously; otherwise, they are recognized as current period expenses[276] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the related goods or services[295] Taxes This section details the company's main tax types and rates, including VAT, urban maintenance and construction tax, corporate income tax, education surcharges, and local education surcharges, along with tax incentives for high-tech and advanced manufacturing enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Calculated based on sales of goods and taxable services as stipulated by tax law, with output tax minus deductible input tax as VAT payable | 5%, 13%, 6% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT and consumption tax paid | 5%, 7% | | Corporate Income Tax | Calculated based on taxable income | 15%, 20%, 25% | | Education Surcharge | Calculated based on actual VAT and consumption tax paid | 3% | | Local Education Surcharge | Calculated based on actual VAT and consumption tax paid | 2% | - As a high-tech enterprise, the company's corporate income tax rate for 2024 was 15%[330] - The company enjoys a VAT super deduction policy for advanced manufacturing enterprises, allowing an additional 5% deduction from VAT payable based on current deductible input tax[330] - Subsidiaries Ningbo Color Masterbatch (Chuzhou) Co., Ltd. and Ningbo Color Masterbatch (Zhongshan) Co., Ltd. enjoy tax reduction policies for small and micro enterprises and corporate income tax preferential policies[332] Notes to Consolidated Financial Statement Items This section provides detailed notes for all consolidated financial statement items, including cash, financial assets, receivables, inventory, fixed assets, payables, revenue, expenses, and cash flow Period-End Balance of Cash and Cash Equivalents | Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 24,121.22 | 25,383.24 | | Bank Deposits | 187,436,517.40 | 98,546,379.86 | | Other Cash and Cash Equivalents | 1,398.91 | 665,905.92 | | Total | 187,462,037.53 | 99,237,669.02 | Period-End Balance of Financial Assets Held for Trading | Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 162,850,000.00 | 205,120,000.00 | | Of which: Wealth management products | 162,850,000.00 | 205,120,000.00 | | Total | 162,850,000.00 | 205,120,000.00 | Accounts Receivable and Bad Debt Provisions | Category | Period-End Book Balance (RMB) | Period-End Bad Debt Provision (RMB) | Period-End Book Value (RMB) | | :--- | :--- | :--- | :--- | | Accounts receivable for which bad debt provisions are made individually | 41,454,377.61 | 9,237,070.37 | 32,217,307.24 | | Accounts receivable for which bad debt provisions are made by portfolio | 115,514,041.68 | 6,255,080.53 | 109,258,961.15 | | Total | 156,968,419.29 | 15,492,150.90 | 141,476,268.39 | Inventory Classification and Impairment Provisions | Item | Period-End Book Balance (RMB) | Period-End Inventory Impairment Provision (RMB) | Period-End Book Value (RMB) | | :--- | :--- | :--- | :--- | | Raw Materials | 42,140,992.80 | 1,909,862.66 | 40,231,130.14 | | Merchandise Inventory | 20,655,866.18 | 2,427,233.33 | 18,228,632.85 | | Goods in Transit | 1,764,897.11 | 0 | 1,764,897.11 | | Total | 64,561,756.09 | 4,337,095.99 | 60,224,660.10 | Construction in Progress Information | Item | Period-End Book Balance (RMB) | Period-End Impairment Provision (RMB) | Period-End Book Value (RMB) | | :--- | :--- | :--- | :--- | | Chuzhou New Construction Project | 114,134,503.46 | 0 | 114,134,503.46 | | Machinery and Equipment Awaiting Installation | 11,772.51 | 0 | 11,772.51 | | Total | 114,146,275.97 | 0 | 114,146,275.97 | Period-End Balance of Other Payables | Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | | :--- | :--- | :--- | | Dividends Payable | 98,978,034.60 | 0 | | Other Payables | 7,968,691.96 | 7,203,536.39 | | Total | 106,946,726.56 | 7,203,536.39 | Operating Revenue and Operating Cost | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 217,205,112.67 | 137,720,198.14 | 235,798,045.35 | 159,639,904.46 | | Other Business | 2,189,084.67 | 1,292,998.82 | 2,554,118.21 | 1,735,248.08 | | Total | 219,394,197.34 | 139,013,196.96 | 238,352,163.56 | 161,375,152.54 | R&D Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 3,487,614.67 | 3,779,485.83 | | Depreciation and Amortization | 669,241.23 | 708,418.45 | | Direct R&D Investment | 3,902,225.88 | 4,031,586.06 | | Other | 16,666.82 | 38,720.53 | | Total | 8,075,748.60 | 8,558,210.87 | Investment Income | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Investment income from disposal of financial assets held for trading | 2,585,208.15 | 5,421,704.03 | | Investment income from other current assets during holding period | 4,943,813.88 | 553,222.22 | | Total | 7,529,022.03 | 5,974,926.25 | Net Cash Flow from Operating Activities | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 47,216,327.34 | 29,630,112.90 | Net Cash Flow from Investing Activities | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | 80,603,456.08 | -60,588,236.45 | Net Cash Flow from Financing Activities | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Financing Activities | -38,884,926.18 | -66,516,220.53 | R&D Expenses Total R&D expenses for the period were RMB 8,075,748.60, fully expensed, primarily comprising personnel costs, direct investment, and asset depreciation Composition of R&D Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | R&D Personnel Compensation | 3,487,614.67 | 3,779,485.83 | | Direct R&D Investment | 3,902,225.88 | 4,031,586.06 | | Depreciation and Amortization of R&D Assets | 669,241.23 | 708,418.45 | | Other | 16,666.82 | 38,720.53 | | Total | 8,075,748.60 | 8,558,210.87 | - All R&D expenditures for the current period were expensed[488] Equity in Other Entities This section discloses details of subsidiaries Ningbo Color Masterbatch (Chuzhou) and (Zhongshan), including registered capital, operating locations, business nature, and 100% direct shareholding Subsidiary Composition | Subsidiary Name | Registered Capital (RMB) | Main Operating Location | Nature of Business | Shareholding Proportion (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Color Masterbatch (Chuzhou) Co., Ltd. | 60,000,000.00 | Chuzhou City, Anhui Province | Manufacturing | 100.00% | Investment Establishment | | Ningbo Color Masterbatch (Zhongshan) Co., Ltd. | 30,000,000.00 | Zhongshan City, Guangdong Province | Manufacturing | 100.00% | Investment Establishment | Government Grants At period-end, government grant liabilities (deferred income) totaled RMB 6,490,095.46 (asset-related), with RMB 2,368,718.98 recognized as other income this period Liability Items Involving Government Grants | Accounting Account | Period-Start Balance (RMB) | New Grants Added in Current Period (RMB) | Amount Recognized in Non-Operating Income in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Period-End Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 7,017,554.10 | 0 | 0 | 527,458.64 | 6,490,095.46 | Asset-related | Government Grants Recognized in Current Profit or Loss | Accounting Account | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Other Income | 2,368,718.98 | 1,457,458.64 | Risks Related to Financial Instruments The company faces credit, liquidity, and market risks (currency, interest rate, other price risks), managed through various strategies; as of June 30, 2025, no floating rate loans exist, and a 5% RMB/USD fluctuation would impact net profit by RMB 30,331.41 - The company faces credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and other price risks) in its operations[493][502] - Credit risk primarily arises from cash and cash equivalents, notes receivable, accounts receivable, accounts receivable financing, other receivables, etc., and is controlled by assessing customer creditworthiness, setting credit terms, and regular monitoring[495] - Liquidity risk is managed by monitoring cash balances, readily marketable securities, and rolling forecasts of cash flows for the next 12 months[497] - As of June 30, 2025, the company had no floating-rate borrowings, and changes in interest rates would not have a significant impact on the company's total profit and shareholders' equity[503] - Exchange rate risk primarily arises from financial assets and liabilities denominated in USD. As of June 30, 2025, if the RMB appreciates or depreciates by 5% against the USD, the company's net profit would increase or decrease by RMB 30,331.41[504][505] - As of June 30, 2025, the company did not face other price risks[507] Financial Assets Derecognized Due to Transfer | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets (RMB) | | :--- | :--- | :--- | | Notes Receivable (Bank Acceptance Bills) | Endorsement/Discounting | 438,536.56 | | Accounts Receivable Financing (Bank Acceptance Bills) | Endorsement/Discounting | 1,559,164.15 | | Total | | 1,997,700.71 | Disclosure of Fair Value This section discloses period-end fair values of assets and liabilities, with total assets measured at fair value of RMB 587,749,996.99, primarily comprising financial assets held for trading, accounts receivable financing, and large-denomination certificates of deposit Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Period-End Fair Value (RMB) | | :--- | :--- | | (I) Financial Assets Held for Trading | 162,850,000.00 | | 1. Financial assets measured at fair value through profit or loss | 162,850,000.00 | | (1) Bank wealth management | 162,850,000.00 | | (II) Accounts Receivable Financing | 32,823,302.54 | | (III) Other Current Assets | 392,076,694.45 | | 2. Financial assets measured at fair value through other comprehensive income | 392,076,694.45 | | (1) Large-denomination certificates of deposit | 392,076,694.45 | | Total assets continuously measured at fair value | 587,749,996.99 | - Wealth management products and accounts receivable financing have short remaining maturities, so their book balances are close to fair values[515] - Large-denomination certificates of deposit are measured at fair value based on investment cost and amortized interest during the holding period[516] Related Parties and Related Party Transactions Re