海宁皮城(002344) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, with the financial report also affirmed by key personnel. - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[3] - Company head Huang Zheng, chief financial officer Qiao Xin, and head of accounting department (accounting supervisor) Cao Lin declare that the financial report in this semi-annual report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[5] Table of Contents This section provides a clear navigation of the report's nine main chapters, from company profile to financial statements. - The report contains nine main chapters, from company profile to financial report, with a clear structure[7] Definitions This section defines key terms used in the report, including company abbreviations, subsidiary names, and the reporting period. - This section clarifies the definitions of the company, subsidiaries, and key time periods involved in the report, such as "Company, the Company" referring to Haining China Leather City Co., Ltd., and "Reporting Period, Current Period" referring to January 1, 2025, to June 30, 2025[10] Section II Company Profile and Key Financial Indicators 1. Company Profile Haining China Leather City Co., Ltd. (stock code: 002344) is listed on the Shenzhen Stock Exchange, with Huang Zheng as its legal representative. - The company's stock abbreviation is "Haining Leather City", stock code "002344", listed on the Shenzhen Stock Exchange[12] - The company's legal representative is Huang Zheng[12] 2. Contact Persons and Information The company's board secretary is Yang Keqi, and the securities affairs representative is Zhu Wentin, with consistent contact details. - The Board Secretary is Yang Keqi, the Securities Affairs Representative is Zhu Wentin, the contact number is 0573-87217777, and the email address is pgc@chinaleather.com[13] 3. Other Information The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period. - The company's contact information, information disclosure, and placement locations remained unchanged during the reporting period, as detailed in the 2024 annual report[14][15] 4. Key Accounting Data and Financial Indicators During the reporting period, the company experienced a slight revenue decrease, significant declines in net profit and EPS, and a reduction in total assets and operating cash flow. Key Accounting Data and Financial Indicators (YoY Change) | Indicator | Current Period (million yuan) | Prior Year Period (million yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 469.05 | 469.88 | -0.18% | | Net Profit Attributable to Shareholders of Listed Company | 46.31 | 59.30 | -21.90% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 45.91 | 47.17 | -2.66% | | Net Cash Flow from Operating Activities | 232.09 | 249.27 | -6.89% | | Basic Earnings Per Share (yuan/share) | 0.04 | 0.05 | -20.00% | | Diluted Earnings Per Share (yuan/share) | 0.04 | 0.05 | -20.00% | | Weighted Average Return on Net Assets | 0.55% | 0.71% | -0.16% | | As of End of Current Period | As of End of Prior Year | Change from Prior Year-End | | | Total Assets | 12,986.17 | 13,280.81 | -2.22% | | Net Assets Attributable to Shareholders of Listed Company | 8,476.19 | 8,438.08 | 0.45% | 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between domestic and international accounting standards during the reporting period. - The company had no differences in accounting data under domestic and overseas accounting standards during the reporting period[18][19] 6. Non-Recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 397,416.72 yuan, primarily from government subsidies and fair value changes, with negative non-current asset disposal gains. Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -4,237.89 | | Government grants recognized in current profit or loss | 1,359,789.72 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedge accounting related to normal business operations | 123,445.99 | | Capital occupation fees received from non-financial enterprises recognized in current profit or loss | 159.00 | | Other non-operating income and expenses apart from the above | -410,222.19 | | Less: Income tax impact | 504,660.42 | | Minority interest impact (after tax) | 166,857.49 | | Total | 397,416.72 | Section III Management Discussion and Analysis 1. Principal Business Activities During the Reporting Period The company primarily develops, leases, and services professional leather markets, actively pursuing transformation, optimizing business formats, and expanding into health, finance, and investment. - The company's principal business involves the development, leasing, and servicing of professional leather markets, offering comprehensive industry chain services including fabric and accessory supply, fashion entrepreneurship parks, design R&D, e-commerce live streaming, financial services, and health medical care[24] - During the reporting period, the company actively promoted market transformation and upgrading, optimized business formats, and strived to create a new development landscape through digital integration, industry empowerment, extended business development, and expanded investment channels[24] - The company steadily advanced extended businesses such as health (rehabilitation hospitals, Yihe Home), financial services (guarantees, financial leasing), and external investments to enhance intrinsic value and future performance[25] 2. Analysis of Core Competencies The company's core strengths lie in its industrial cluster, market scale, extensive customer resources, and experienced management team, driving continuous transformation and expansion. - The company possesses an industrial cluster advantage, as Haining is China's leather capital, gathering over 3,000 leather production enterprises, and the company provides full industry chain services[26] - The company has a market scale advantage, having established multiple chain markets and actively adjusting strategies to expand market space[27][28] - The company has built stable win-win cooperative relationships with industry enterprises, cultivating highly loyal merchants, forming a customer resource advantage[28] - The company's management team is experienced, possesses a deep understanding of the leather industry and professional markets, and prioritizes talent cultivation and introduction[28] 3. Analysis of Principal Business Total operating revenue decreased by 2.44%, and net profit attributable to shareholders fell by 21.90%, with declines in property sales and financial services, but growth in health and goods sales. - During the reporting period, the company achieved total operating revenue of 489.81 million yuan, a year-on-year decrease of 2.44%; net profit attributable to shareholders of the listed company was 46.31 million yuan, a year-on-year decrease of 21.90%[29] Principal Business Revenue Composition and YoY Change | Business Type | Current Period Revenue (million yuan) | YoY Change | | :--- | :--- | :--- | | Property Leasing and Management | 293.16 | -1.06% | | Shop and Supporting Property Sales | 24.20 | -34.27% | | Financial Services | 97.06 | -11.94% | | Health Medical Services | 34.84 | 11.78% | | Goods Sales and Services | 28.52 | 85.13% | Major Financial Data YoY Change | Indicator | YoY Change | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | -0.18% | | | Operating Cost | 4.31% | | | Selling Expenses | -1.70% | | | Administrative Expenses | -1.72% | | | Financial Expenses | -18.16% | | | Income Tax Expense | -23.94% | Primarily due to business plan adjustments by some subsidiaries during the reporting period, leading to a decrease in R&D expenses compared to the prior year | | R&D Investment | -89.74% | Primarily due to business plan adjustments by some subsidiaries during the reporting period, leading to a decrease in R&D expenses compared to the prior year | | Net Cash Flow from Operating Activities | -6.89% | | | Net Cash Flow from Investing Activities | -24.81% | | | Net Cash Flow from Financing Activities | -7,938.56% | Primarily due to the company's repayment of super short-term commercial papers during the reporting period | | Net Increase in Cash and Cash Equivalents | -147.14% | Primarily due to the company's repayment of super short-term commercial papers during the reporting period | 4. Analysis of Non-Principal Business The company had no non-principal business activities requiring disclosure during the reporting period. - The company had no non-principal business analysis during the reporting period[35] 5. Analysis of Assets and Liabilities Total assets decreased by 2.22%, with declines in cash and receivables but increases in long-term equity investments and borrowings, while liabilities saw significant shifts in payables and non-current liabilities. Significant Changes in Asset Composition | Item | Amount at Period-End (million yuan) | % of Total Assets | Amount at Prior Year-End (million yuan) | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 990.55 | 7.63% | 1,120.38 | 8.44% | -0.81% | | | Accounts Receivable | 35.49 | 0.27% | 45.69 | 0.34% | -0.07% | | | Long-Term Equity Investments | 909.38 | 7.00% | 849.33 | 6.40% | 0.60% | | | Short-Term Borrowings | 125.25 | 0.96% | 108.29 | 0.82% | 0.14% | | | Long-Term Borrowings | 540.83 | 4.16% | 476.37 | 3.59% | 0.57% | | | Lease Liabilities | 6.97 | 0.05% | 10.44 | 0.08% | -0.03% | Primarily due to subsidiaries paying lease liabilities during the reporting period | | Loans and Advances | 88.53 | 0.68% | 144.85 | 1.09% | -0.41% | Primarily due to business plan adjustments by some subsidiaries during the reporting period, leading to a decrease in business scale | | Development Expenditures | 0.17 | 0.00% | | | 0.00% | Primarily due to new capitalized R&D expenditures by subsidiaries during the reporting period | | Notes Payable | 25.10 | 0.19% | 130.98 | 0.99% | -0.80% | Primarily due to the maturity and payment of bank acceptance bills by subsidiaries during the reporting period | | Accounts Payable | 248.06 | 1.91% | 393.06 | 2.96% | -1.05% | Primarily due to payment of engineering payables during the reporting period | | Contract Liabilities | 366.10 | 2.82% | 165.96 | 1.25% | 1.57% | Primarily due to an increase in pre-received lease contract payments during the reporting period | | Employee Benefits Payable | 19.18 | 0.15% | 40.94 | 0.31% | -0.16% | Primarily due to the payment of employee benefits accrued in the prior year during the reporting period | | Taxes Payable | 34.22 | 0.26% | 76.13 | 0.57% | -0.31% | Primarily due to the payment of corporate income tax and property tax accrued in the prior year during the reporting period | | Non-Current Liabilities Due Within One Year | 447.71 | 3.45% | 110.29 | 0.83% | 2.62% | Primarily due to the company's medium-term notes being reclassified as non-current liabilities due within one year based on liquidity during the reporting period | | Other Non-Current Liabilities | 4.42 | 0.03% | 307.84 | 2.32% | -2.29% | Primarily due to the company's medium-term notes being reclassified as non-current liabilities due within one year based on liquidity during the reporting period | Assets and Liabilities Measured at Fair Value | Item | Period-End Amount (million yuan) | | :--- | :--- | | Trading Financial Assets | 104.50 | | Other Non-Current Financial Assets | 454.63 | | Subtotal Financial Assets | 559.13 | - Total restricted assets at period-end amounted to 1,272.03 million yuan, primarily including monetary funds (pledged for bank acceptance bills, borrowings, and guarantee business deposits) and long-term receivables, and non-current assets due within one year (pledged for bank loans)[41] 6. Analysis of Investment Status The company's investment amount significantly decreased by 74.47% to 12 million yuan, with no major equity, non-equity, securities, or derivative investments. Investment Amount During the Reporting Period | Indicator | Amount (million yuan) | | :--- | :--- | | Investment Amount in Current Period | 12.00 | | Investment Amount in Prior Year Period | 47.00 | | Change Percentage | -74.47% | - The company had no significant equity investments, non-equity investments, securities investments, or derivative investments during the reporting period[43][45] - The company had no use of raised funds during the reporting period[46] 7. Major Asset and Equity Disposals The company did not undertake any major asset or equity disposals during the reporting period. - The company did not dispose of major assets or major equity during the reporting period[47][48] 8. Analysis of Major Holding and Participating Companies This section details the financial performance of key subsidiaries, including those with losses, across diverse business segments like hotels, market management, and financial services. Major Subsidiaries and Participating Companies with Impact on Company's Net Profit Exceeding 10% | Company Name | Company Type | Principal Business | Registered Capital (million yuan) | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Operating Profit (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Haining Pidu Jinjiang Hotel Co., Ltd. | Subsidiary | Accommodation, tea house, bar, coffee shop, swimming pool, amusement room; Chinese and Western cuisine; retail of pre-packaged food, cigarettes, cigars; typing and copying; wholesale and retail of daily necessities, leather products, clothing, footwear, textiles, hardware, electrical appliances | 10.00 | 19.27 | 5.78 | 6.93 | -1.97 | -1.98 | | Haining China Leather City Operation Management Co., Ltd. | Subsidiary | Property management, real estate information consulting | 0.50 | 282.50 | 137.20 | 30.62 | 4.01 | 3.02 | | Dengta Tong'erbao Haining Leather City Co., Ltd. | Subsidiary | Market development, construction and operation management, investment management, property management, real estate development and operation | 35.83 | 1,248.02 | 941.38 | 30.13 | 1.63 | 1.63 | | Haining China Leather City Network Technology Co., Ltd. | Subsidiary | Value-added telecommunications services; computer software design, development; clothing wholesale, retail; self-owned housing rental; property management | 5.00 | 20.71 | 12.90 | 6.44 | 3.28 | 2.80 | | Jiangsu Shuyang Haining Leather Development Co., Ltd. | Subsidiary | Real estate development, operation; leather clothing, leather goods production, sales; market development and construction; property management; standardized factory building development, construction and leasing | 10.18 | 33.08 | 15.76 | 5.41 | 2.03 | 1.52 | | Chengdu Haining Leather City Co., Ltd. | Subsidiary | Market development, construction and operation management, investment management, property management, real estate development and operation | 100.00 | 664.29 | 530.54 | 46.29 | -3.01 | -2.88 | | Harbin Haining Leather City Co., Ltd. | Subsidiary | Market development, construction and operation management, investment management, property management, real estate development and operation | 100.00 | 983.14 | 208.82 | 21.30 | -14.99 | -14.99 | | Haining Picheng Sci-Tech Financial Guarantee Co., Ltd. | Subsidiary | Principal financing guarantee business; concurrent non-financing guarantee business, financial advisory, consulting and intermediary services related to guarantee business, investment with own funds as per regulations | 200.00 | 312.27 | 278.47 | 1.35 | 1.13 | 0.01 | | Jinan Haining Leather City Co., Ltd. | Subsidiary | Investment, development, construction, and management of Jinan Haining Leather City project; investment with own assets and investment consulting (excluding securities, futures, financial consulting); property management; real estate development and operation | 100.00 | 327.94 | 28.08 | 2.29 | -6.10 | -6.10 | | Zhengzhou Haining Leather City Co., Ltd. | Subsidiary | Market development, construction and operation management; property management | 100.00 | 548.91 | 11.56 | 2.85 | -11.17 | -11.17 | | Haining China Leather City Investment Co., Ltd. | Subsidiary | Industrial investment, equity investment, asset management; investment consulting (excluding securities, futures), investment management, information consulting | 230.00 | 1,371.33 | 627.06 | | 73.08 | 73.91 | | Wuhan Haichao Haining Leather City Co., Ltd. | Subsidiary | Market development, construction and operation management, investment management, property management and consulting, real estate information consulting, real estate development and operation | 50.00 | 712.92 | -171.71 | 2.23 | -30.43 | -30.53 | | Haining Leather City Health Industry Investment Co., Ltd. | Subsidiary | Investment, consulting and management of rehabilitation medical projects, medical and elderly care integration projects; investment in health management; financial advisory services; health consulting; health management; health product sales; health tourism; management and training of health medical personnel | 200.00 | 63.49 | 63.47 | | -0.02 | -0.02 | | Haining Leather Fashion Town Investment Development Co., Ltd. | Subsidiary | Market investment and development, real estate development, property management, market management | 1,260.00 | 3,763.95 | 1,853.84 | 20.95 | 55.17 | 54.44 | | Haining Private Financing Service Center Co., Ltd. | Subsidiary | Registration and publication of private capital demand information; organization of matching,对接, and lending activities between private capital supply and demand sides | 100.00 | 271.66 | 238.42 | 19.01 | 10.60 | 7.96 | | Chuangjia Financial Leasing (Zhejiang) Co., Ltd. | Subsidiary | Financial leasing business | 205.05 | 1,745.14 | 340.69 | 74.57 | 40.18 | 30.12 | - During the reporting period, the company established a new subsidiary, Haining Qinghang Partnership, and deregistered Fashion Tide City Company[52] 9. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period. - The company had no controlled structured entities during the reporting period[53] 10. Risks Faced by the Company and Countermeasures The company faces risks from remote project management, talent gaps, online competition, and industry volatility, addressed by strengthening management, human resources, online-offline integration, and industrial optimization. - The company faces risks from remote development projects and will strengthen management, improve systems, and enhance communication[53] - The company has a risk of talent disconnect and will improve its human resource management system and increase talent acquisition efforts[53] - Online transaction diversion may slow down or even reduce market share, so the company will deepen online sales models such as e-commerce live streaming bases and build an independent supply chain platform[54] - The company's revenue is closely related to the operating conditions of the leather and apparel industries, facing industry fluctuations, and will ensure stable market operations through multi-channel online and offline development and strengthening the integration of the digital and real economies[54][55] 11. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period. - The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period[56] 12. Implementation of "Quality and Return Dual Enhancement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period. - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period[56] Section IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management During the reporting period, Huang Zheng was elected Chairman, succeeding Lin Xiaoqin, who resigned due to work reallocation. Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Huang Zheng | Chairman | Elected | June 10, 2025 | Work reallocation | | Lin Xiaoqin | Chairman, General Manager | Resigned | May 16, 2025 | Work reallocation | 2. Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period. - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period[59] 3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place 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[60] 4. Environmental Information Disclosure The 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[61] 5. Social Responsibility The company actively fulfills its social responsibilities by upholding investor rights, fostering employee development, ensuring customer and partner interests, protecting the environment, and engaging in philanthropy. - The company's principal business is the development, leasing, and servicing of professional leather markets, achieving total operating revenue of 489.81 million yuan, total profit of 86.44 million yuan, and net profit attributable to shareholders of 46.31 million yuan in the first half of 2025[61] - The company strictly adheres to laws and regulations, has established a sound corporate governance structure, standardized the operation of its "three meetings and one layer" (shareholders' meeting, board of directors, supervisory board, and management), safeguarded the rights and interests of all shareholders, and diligently fulfilled its information disclosure obligations[63] - The company strengthens investor relations management through various channels such as public email, telephone, WeChat official account, and video account, and actively conducts investor surveys and online performance briefings[64] - The company values employee welfare, improves labor employment systems, conducts professional quality training, organizes cultural and sports activities, and has an employee care fund to assist employees in need[65][66][67] - The company protects merchant rights by organizing merchants to participate in exhibitions, providing financing guarantees, conducting training, accelerating online integration, improving design cultivation platforms, and enhancing market management services[68][69] - The company ensures consumer rights by establishing consumer service desks, after-sales service centers, and complaint centers, implementing a "clear discount system," building an intelligent service system, upgrading hardware facilities, and strengthening business order management[69][70][71] - The company practices environmentally friendly and energy-saving development, investing 0.43 million yuan in greening projects and daily maintenance, with distributed photovoltaic power generation projects generating approximately 7.78 million kWh in the first half of the year, and promoting paperless and green office concepts[71][72] - The company actively participates in social welfare, carrying out poverty alleviation, education, science, culture, and health support, and organizing volunteer services; Haining Leather Museum received 66 visiting groups totaling 1,566 visitors[72][73] Section V Significant Matters 1. Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no fulfilled or overdue unfulfilled commitments by controlling shareholders, shareholders, related parties, acquirers, or the company during the reporting period. - The company had no fulfilled or overdue unfulfilled commitments by related parties during the reporting period[76] 2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period. - The company had no non-operating funds occupied by controlling shareholders and other related parties from the listed company during the reporting period[77] 3. 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[78] 4. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited. - The company's semi-annual financial report was unaudited[79] 5. Board of Directors' and Supervisory Board's Explanations on "Non-Standard Audit Report" for This Reporting Period The company did not receive a non-standard audit report for the current reporting period. - The company had no non-standard audit report during the reporting period[80] 6. Board of Directors' Explanations on "Non-Standard Audit Report" for the Previous Year The company did not have a non-standard audit report for the previous year. - The company had no non-standard audit report for the previous year during the reporting period[80] 7. 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[80] 8. Litigation Matters The company had no major litigation or arbitration, but won two unfair competition lawsuits, while a significant subrogation claim is pending. - The company had no major litigation or arbitration matters during the reporting period[81] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million yuan) | Provision for Estimated Liabilities | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | The company filed a lawsuit against Hunan Lidu Commercial and Trade Co., Ltd. for unfair competition and trademark infringement | 11.40 | No | First-instance judgment by Changsha Intermediate People's Court | Changsha Intermediate People's Court ruled in the first instance that the company be compensated 2.06 million yuan | | The company sued Guangdong Shangzheng Investment Co., Ltd., Shenzhen Yixite Yichu Apparel Co., Ltd., and Guangzhou Lingnan Group Holdings Co., Ltd. for unfair competition and trademark infringement | 1.61 | No | First-instance judgment by Guangzhou Yuexiu District People's Court | Guangzhou Yuexiu District People's Court ruled in the first instance that the company be compensated 0.50 million yuan | | Yang Qinggeng v. Chen Pinwang, Wu Yingjie, Dengta Tong'erbao Haining Leather City Co., Ltd. for subrogation claim dispute | 147.27 | Yes | First-instance trial in progress at Liaoyang Intermediate People's Court | None | | Total amount involved in other lawsuits not meeting the disclosure threshold, excluding the above lawsuits | 21.75 | No | None | None | 9. Penalties and Rectifications The company had no penalties or rectification situations during the reporting period. - The company had no penalties or rectification situations during the reporting period[83] 10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity status during the reporting period. - The company had no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[84] 11. Significant Related Party Transactions The company reported no significant related party transactions, including daily operations, asset/equity transfers, joint investments, or related party debt/credit, nor financial dealings with related financial companies. - The company had no related party transactions related to daily operations during the reporting period[84] - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[85] - The company had no related party transactions involving joint external investment during the reporting period[86] - The company had no related party debt or credit transactions during the reporting period[87] - The company had no deposits, loans, credit lines, or other financial business with related financial companies[88] - The company's controlled financial company had no deposits, loans, credit lines, or other financial business with related parties[89] - The company had no other significant related party transactions during the reporting period[90] 12. Significant Contracts and Their Performance The company has significant contracts including entrusted operations, market leasing, guarantees for subsidiaries, and wealth management, alongside other major construction projects. - Subsidiary Haining Leather City Health Industry Co., Ltd. is entrusted to operate Haining City Social Welfare Center, with a contract term until October 24, 2028[91] - Subsidiary Wuhan Leather City Company leased the entire market to Wuhan Huining Company for renovation and operation as a shopping center, with the lease term adjusted to January 1, 2024, to April 30, 2041, including a 12-month rent-free period for the first three years[93] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Type of Guarantee | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Chuangjia Financial Leasing (Zhejiang) Co., Ltd. | 300.00 | | Joint and several liability guarantee | Three years | No | | Haining Picheng Rehabilitation Hospital Co., Ltd. | 6.40 | 1.93 | Joint and several liability guarantee | Two years | No | | Total Actual Guarantee Balance for Subsidiaries at Period-End | | 1.93 | | | | Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (million yuan) | Unmatured Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 112.50 | 104.50 | 0 | | Total | | 112.50 | 104.50 | 0 | Other Significant Contracts | Contract Name | Date of Execution | Contract Amount (million yuan) | Pricing Principle for Transaction Price | Status of Execution at Period-End | | :--- | :--- | :--- | :--- | :--- | | Haining Chaopin Fashion Town Development Project Lighting Engineering | January 7, 2025 | 5.63 | Public bidding | Under construction | | Haining Yishang Fashion Town Construction Project Curtain Wall and Aluminum Alloy Doors and Windows Engineering | February 27, 2025 | 29.00 | Public bidding | Under construction | 13. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period. - The company had no other significant matters requiring explanation during the reporting period[101] 14. Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period. - The company had no significant matters concerning its subsidiaries during the reporting period[102] Section VI Share Changes and Shareholder Information 1. Share Change Status The company's total share capital remained unchanged at 1,282,616,960 shares, with consistent proportions of restricted and unrestricted shares, and director share restrictions following regulations. Share Change Status | Share Category | Number of Shares Before Change | Proportion Before Change | Increase/Decrease in This Change (shares) | Number of Shares After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,166,868.00 | 0.09% | 0 | 1,166,868.00 | 0.09% | | II. Unrestricted Shares | 1,281,450,092.00 | 99.91% | 0 | 1,281,450,092.00 | 99.91% | | III. Total Shares | 1,282,616,960.00 | 100.00% | 0 | 1,282,616,960.00 | 100.00% | - The company's directors, supervisors, and senior management's share restrictions and unlocking follow regulations: 25% of shares are unlocked at the beginning of each year, 75% of newly added shares are automatically locked within the year, and all shares are locked for six months after resignation[106] 2. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period. - The company had no securities issuance or listing activities during the reporting period[107] 3. Number of Shareholders and Shareholding Status The company had 37,257 common shareholders, with Haining State-owned Assets Management Co. and Haining Chaosheng Technology Industry Investment Group Co. as major shareholders, the latter increasing its stake. - The total number of common shareholders at the end of the reporting period was 37,257[108] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Change in Shareholding During Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Haining State-owned Assets Management Co. | State-owned Legal Person | 34.58% | 443,581,267.00 | 0 | 443,581,267.00 | | Haining Chaosheng Technology Industry Investment Group Co., Ltd. | State-owned Legal Person | 18.36% | 235,538,800.00 | 235,538,800 | 235,538,800.00 | | Hongda High-Tech Holdings Co., Ltd. | Domestic Non-State-owned Legal Person | 1.49% | 19,150,000.00 | 0 | 19,150,000.00 | | Yunnan International Trust Co., Ltd. - Yunnan Trust · Great Western Silk Road No. 2 Collective Fund Trust Plan | Domestic Non-State-owned Legal Person | 0.98% | 12,508,691.00 | 0 | 12,508,691.00 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.81% | 10,353,269.00 | 3,882,525 | 10,353,269.00 | | Lin Wenjuan | Domestic Natural Person | 0.41% | 5,291,029.00 | -469,000 | 5,291,029.00 | | Lu Fei | Domestic Natural Person | 0.39% | 5,000,000.00 | 3,650,000 | 5,000,000.00 | | Industrial Wealth Asset - Industrial Bank - Jiangxi Chinese Media Blue Ocean International Investment Co., Ltd. | Domestic Non-State-owned Legal Person | 0.36% | 4,672,897.00 | 0 | 4,672,897.00 | | Yunnan International Trust Co., Ltd. - Yunnan Trust · Great Western Silk Road No. 1 Collective Fund Trust Plan | Domestic Non-State-owned Legal Person | 0.36% | 4,672,897.00 | 0 | 4,672,897.00 | | Hu Ming | Domestic Natural Person | 0.33% | 4,239,400.00 | 1,326,400 | 4,239,400.00 | - Among the top ten shareholders, Haining State-owned Assets Management Co. and Haining Chaosheng Technology Industry Investment Group Co., Ltd. are both wholly-owned subsidiaries of Haining State-owned Capital Investment and Operation Co., Ltd., indicating an associated relationship[110] 4. Changes in Shareholdings of Directors, Supervisors, and Senior Management The company's directors, supervisors, and senior management in the reporting period had no changes in shareholding. - The company's directors, supervisors, and senior management had no changes in shareholding during the reporting period[112] 5. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period. - The company's controlling shareholder did not change during the reporting period[113] - The company's actual controller did not change during the reporting period[113] 6. Preferred Share Information The company had no preferred shares during the reporting period. - The company had no preferred shares during the reporting period[114] Section VII Bond-Related Information 1. Enterprise Bonds The company had no enterprise bonds during the reporting period. - The company had no enterprise bonds during the reporting period[116] 2. Corporate Bonds The company issued "24 Picheng 01" corporate bonds with a balance of 400 million yuan and a 2.30% interest rate, traded by professional investors without delisting risk. Corporate Bond Basic Information | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (million yuan) | Interest Rate | Repayment Method | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Haining China Leather City Co., Ltd. 2024 Publicly Issued Corporate Bonds (First Tranche) for Professional Investors | 24 Picheng 01 | 524046.SZ | December 3, 2024 | December 3, 2027 | 400.00 | 2.30% | Annual interest payment, principal repaid at maturity | Shenzhen Stock Exchange | - The bond is traded by professional investors, with applicable trading mechanisms including matched transactions, click transactions, inquiry transactions, competitive bidding transactions, and negotiated transactions, posing no risk of delisting[118] - The bond's agreed option clauses include the option to adjust the coupon rate and the put option[119] 3. Non-Financial Enterprise Debt Financing Instruments The company issued "24 Haining Leather MTN001" medium-term notes and "24 Haining Leather SCP002", "24 Haining Leather SCP003" super short-term commercial papers, with some already repaid. Non-Financial Enterprise Debt Financing Instrument Basic Information | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (million yuan) | Interest Rate | Repayment Method | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Haining China Leather City Co., Ltd. 2024 First Tranche Medium-Term Notes | 24 Haining Leather MTN001 | 102482739 | June 26, 2024 | June 26, 2026 | 300.00 | 2.20% | Annual interest payment, principal repaid at maturity | Interbank Bond Market | | Haining China Leather City Co., Ltd. 2024 Second Tranche Super Short-Term Commercial Paper | 24 Haining Leather SCP002 | 012482149 | July 15, 2024 | April 11, 2025 | 0 | 1.85% | Principal and interest repaid in one lump sum at maturity | Interbank Bond Market | | Haining China Leather City Co., Ltd. 2024 Third Tranche Super Short-Term Commercial Paper | 24 Haining Leather SCP003 | 012483621 | November 18, 2024 | August 15, 2025 | 270.00 | 2.15% | Principal and interest repaid in one lump sum at maturity | Interbank Bond Market | - These debt financing instruments are for institutional investors in the national interbank bond market, with inquiry as the applicable trading mechanism, and no risk of delisting[121] 4. Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period. - The company had no convertible corporate bonds during the reporting period[123] 5. Consolidated Statement Scope Loss Exceeding 10% of Net Assets at Year-End in the Reporting Period The company's consolidated statement scope loss did not exceed 10% of net assets at the previous year-end. - The company's consolidated statement scope loss did not exceed 10% of net assets at the previous year-end during the reporting period[124] 6. Key Accounting Data and Financial Indicators for the Last Two Years as of the End of the Reporting Period Liquidity ratios decreased, asset-liability ratio improved, while net profit after non-recurring items declined, and interest coverage ratio slightly increased. Key Accounting Data and Financial Indicators for the Last Two Years | Item | Current Period-End/Current Period | Prior Year-End/Prior Year Period | Change from Prior Year-End/Prior Year Period | | :--- | :--- | :--- | :--- | | Current Ratio | 1.08 | 1.11 | -2.70% | | Asset-Liability Ratio | 32.57% | 34.45% | -1.88% | | Quick Ratio | 0.68 | 0.73 | -6.85% | | Net Profit After Non-Recurring Gains and Losses (million yuan) | 45.91 | 47.17 | -2.66% | | Interest Coverage Ratio | 5.70 | 5.56 | 2.52% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | Section VIII Financial Report 1. Audit Report The company's semi-annual financial report was unaudited. - The company's semi-annual financial report was unaudited[127] 2. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity. - This section includes the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[128][132][136][140][143][146][147][154] 1. Consolidated Balance Sheet As of June 30, 2025, total consolidated assets were 12.99 billion yuan, a 2.22% decrease, with total liabilities at 4.23 billion yuan and owners' equity at 8.76 billion yuan. Consolidated Balance Sheet Major Data | Item | Period-End Balance (billion yuan) | Period-Beginning Balance (billion yuan) | | :--- | :--- | :--- | | Total Assets | 12.99 | 13.28 | | Total Current Assets | 2.78 | 2.97 | | Total Non-Current Assets | 10.21 | 10.31 | | Total Liabilities | 4.23 | 4.58 | | Total Owners' Equity | 8.76 | 8.71 | 2. Parent Company Balance Sheet As of June 30, 2025, parent company total assets were 9.41 billion yuan, slightly decreased, with total liabilities at 2.67 billion yuan and owners' equity at 6.74 billion yuan. Parent Company Balance Sheet Major Data | Item | Period-End Balance (billion yuan) | Period-Beginning Balance (billion yuan) | | :--- | :--- | :--- | | Total Assets | 9.41 | 9.49 | | Total Current Assets | 5.05 | 5.06 | | Total Non-Current Assets | 4.36 | 4.43 | | Total Liabilities | 2.67 | 2.80 | | Total Owners' Equity | 6.74 | 6.68 | 3. Consolidated Income Statement Consolidated total operating revenue decreased by 2.44% to 489.81 million yuan, with net profit attributable to parent company shareholders declining by 21.90% to 46.31 million yuan. Consolidated Income Statement Major Data | Item | Current Period Amount (million yuan) | Prior Period Amount (million yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 489.81 | 502.08 | | Operating Profit | 86.85 | 116.42 | | Total Profit | 86.44 | 115.71 | | Net Profit | 62.80 | 84.63 | | Net Profit Attributable to Parent Company Shareholders | 46.31 | 59.30 | | Total Comprehensive Income | 54.60 | 84.63 | | Basic Earnings Per Share (yuan/share) | 0.04 | 0.05 | 4. Parent Company Income Statement Parent company operating revenue increased by 2.14% to 110.40 million yuan, with net profit significantly rising by 56.89% to 56.18 million yuan. Parent Company Income Statement Major Data | Item | H1 2025 (million yuan) | H1 2024 (million yuan) | | :--- | :--- | :--- | | Operating Revenue | 110.40 | 108.08 | | Operating Profit | 58.28 | 35.02 | | Total Profit | 58.23 | 33.92 | | Net Profit | 56.18 | 35.81 | | Total Comprehensive Income | 56.18 | 35.81 | 5. Consolidated Cash Flow Statement Operating cash flow decreased by 6.89%, investment cash flow saw increased outflow, and financing cash flow significantly dropped due to repayment of super short-term commercial papers. Consolidated Cash Flow Statement Major Data | Item | H1 2025 (million yuan) | H1 2024 (million yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 232.09 | 249.27 | | Net Cash Flow from Investing Activities | -106.67 | -85.47 | | Net Cash Flow from Financing Activities | -201.44 | -2.51 | | Net Increase in Cash and Cash Equivalents | -76.03 | 161.27 | - Net cash flow from financing activities decreased significantly by 7938.56% year-on-year, primarily due to the company's repayment of super short-term commercial papers during the reporting period[31][32][144] 6. Parent Company Cash Flow Statement Parent company operating cash flow decreased by 79.94%, investment cash flow turned positive, and financing cash flow became negative due to outflows. Parent Company Cash Flow Statement Major Data | Item | H1 2025 (million yuan) | H1 2024 (million yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 81.78 | 407.81 | | Net Cash Flow from Investing Activities | 78.84 | -301.41 | | Net Cash Flow from Financing Activities | -295.07 | 91.04 | | Net Increase in Cash and Cash Equivalents | -134.45 | 197.43 | 7. Consolidated Statement of Changes in Owners' Equity Consolidated owners' equity increased by 51.71 million yuan, driven by net profit attributable to the parent company and minority interests, despite a decrease in other comprehensive income. Consolidated Owners' Equity Change | Item | Change Amount in Current Period (million yuan) | | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 38.11 | | Minority Interests | 13.60 | | Total Owners' Equity | 51.71 | - The after-tax net amount of other comprehensive income attributable to parent company owners for the current period was -8.20 million yuan[149] 8. Parent Company Statement of Changes in Owners' Equity Parent company owners' equity increased by 56.18 million yuan, primarily due to the increase in net profit. Parent Company Owners' Equity Change | Item | Change Amount in Current Period (million yuan) | | :--- | :--- | | Total Owners' Equity | 56.18 | - The total comprehensive income of the parent company for the current period was 56.18 million yuan[156] 3. Company Overview Haining China Leather City Co., Ltd., established in 2007 and listed in 2010, primarily engages in market development, financial services, and health care, with a registered capital of 1.28 billion yuan. - Haining China Leather City Co., Ltd. was registered on December 5, 2007, with a registered capital of 1,282.62 million yuan, stock code 002344, and was listed on the Shenzhen Stock Exchange on January 26, 2010[159] - The company's principal businesses include market development and operation, financial related services, goods circulation and services, health medical services, and hotel operations[159] - This section provides a list of abbreviations for the company and its major subsidiaries, facilitating the reading of financial statements[160][161] 4. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue operations for the next 12 months. - The company's financial statements are prepared on a going concern basis[162] - There are no matters or circumstances that would cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[163] 5. Significant Accounting Policies and Estimates This section details the company's adherence to accounting standards, accounting period, functional currency, materiality, and specific policies for various financial items, with no changes in policies or estimates. - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[165] - The company's accounting year runs from January 1 to June 30 of the Gregorian calendar, and its functional currency is RMB[166][168] - The company has formulated specific accounting policies and estimates based on its actual production and operation characteristics, covering financial instrument impairment, inventory, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition[164] - The company had no significant changes in accounting policies and accounting estimates during the reporting period[242] 6. Taxation This section outlines the company's main tax types and rates, including VAT, corporate income tax, and property tax, with some subsidiaries benefiting from preferential tax policies. Major Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Based on sales of goods and taxable services calculated according to tax laws, minus input tax allowed for deduction in the current period; the difference is VAT payable | 13%, 9%, 6%, 5% | | Urban Maintenance and Construction Tax | Based on sales of goods and taxable services calculated according to tax laws, minus input tax allowed for deduction in the current period; the difference is VAT payable | 7%, 5% | | Corporate Income Tax | Taxable income | 25%, 20%, 15% | | Land Value-Added Tax | Value-added amount from compensated transfer of state-owned land use rights and ownership of buildings and other attachments | [Note 2] | | Property Tax | For value-based assessment, 1.2% of the original value after a one-time deduction of 30%; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Land Use Tax | Actual occupied land area | 2-18 yuan/square meter annually by region | - Picheng Best Company and Picheng Logistics Company are recognized as small and micro-profit enterprises, subject to corporate income tax at a 20% rate. Picheng Network Technology Company and Picheng Data Company passed high-tech enterprise evaluations, subject to corporate income tax at a 15% rate[244] - Chuangjia Financing Company enjoys preferential policies for financial leasing services, allowing deduction of borrowing interest, bond issuance interest, and vehicle purchase tax from sales. Rehabilitation Hospital Company and Yihe Medical Care Company are exempt from VAT in the current period. Picheng Photovoltaic Company and Liaoyang Fashion Company enjoy a "three-year exemption, three-year half reduction" corporate income tax preferential policy for photovoltaic power generation related income[245] 7. Notes to Consolidated Financial Statement Items This section provides detailed explanations for all consolidated financial statement items, including assets, liabilities, equity, revenues, and expenses, with period-end balances and changes. - Monetary funds at period-end amounted to 990.55 million yuan, including pledged time deposits and interest of 96.34 million yuan and guarantee business deposits of 59.39 million yuan[247][248] - Trading financial assets at period-end amounted to 104.50 million yuan, primarily wealth management products[250] - Accounts receivable at period-end amounted to 40.93 million yuan, with bad debt provisions of 5.44 million yuan, and 74.39% of balances being within 1 year[251][253][255] - Inventory at period-end amounted to 1,014.35 million yuan, including development costs of 884.26 million yuan, developed products of 127.29 million yuan, and inventory impairment provisions of 23.78 million yuan[288][290] - Investment properties are measured using the cost model, with a period-end carrying value of 6,865.50 million yuan, comprising buildings of 5,680.96 million yuan and land use rights of 1,182.60 million yuan[316][317] - Short-term borrowings at period-end amounted to 125.25 million yuan, primarily credit borrowings[351] - Bonds payable at period-end amounted to 399.81 million yuan, primarily "24 Picheng 01" corporate bonds[383] - Operating revenue and operating cost: Current period operating revenue was 469.05 million yuan, and operating cost was 328.19 million yuan[404] 8. Research and Development Expenses Total R&D expenditure was 626,006.61 yuan, with both expensed and capitalized portions, including projects like smart park digitalization and supply chain operations. Research and Development Expenses | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Employee Compensation | 518,823.82 | 6,035,973.34 | | Depreciation and Amortization | 13,388.95 | 19,599.18 | | Other | 93,793.84 | 46,688.67 | | Total | 626,006.61 | 6,102,261.19 | | Of which: Expensed R&D Expenditure | 405,635.88 | 6,102,261.19 | | Capitalized R&D Expenditure | 220,370.73 | | - Capitalized R&D projects include 2025 Smart Park Digitalization, Picheng Canteen 2.0, Picheng Yanxuan Full-Link Operation, and Law Firm Electronic Archiving System, with a total period-end balance of 170,161.10 yuan[470][471] 9. Changes in Consolidation Scope The company's consolidation scope expanded to include Haining Qinghang Partnership (newly established) and reduced by Fashion Tide City Company (deregistered). Increase in Consolidation Scope | Company Name | Method of Equity Acquisition | Time of Equity Acquisition | Capital Contribution (million yuan) | Capital Contribution Ratio | | :--- | :--- | :--- | :--- | :--- | | Haining Qinghang Partnership | Newly established | April 2025 | 135.80 | 96.90% | Decrease in Consolidation Scope | Company Name | Method of Equity Disposal | Time of Equity Disposal | Net Assets at Disposal Date (million yuan) | Net Profit from Period-Beginning to Disposal Date (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Fashion Tide City Company | Deregistration | June 2025 | 37.26 | 4.11 | 10. Interests in Other Entities This section details the company's interests in subsidiaries, joint ventures, and associates, covering diverse business sectors, with key subsidiaries and an important associate, Jiaxing Bank. - The company owns multiple controlling subsidiaries, with business natures covering comprehensive, goods circulation, service industry, financial industry, investment industry, medical services, wholesale industry, and energy[475][476][477][478] - Fashion Town Company, Leather City Investment Company, and Picheng Management Company are important subsidiaries of the company[479] - The company holds a 7.18% equity interest in Jiaxing Bank, accounted for using the equity method, and it is a significant associate[485](index=485&type=ch