利尔化学(002258) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, a detailed table of contents, and definitions of key terms for clarity Important Notice The company's board and senior management guarantee the report's truthfulness, accuracy, and completeness, highlighting various operational and market risks - The company's Board of Directors and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility[4] - The company's head, chief accountant, and accounting department head declare the financial report is true, accurate, and complete[4] - The company faces risks including market competition, environmental issues, production safety, profit decline from large-scale construction, rapid development management, and international trade friction[4] 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Distribution Base (shares) | 800,437,228 | | Cash Dividend per 10 Shares (tax inclusive) | 2 yuan | | Bonus Shares (tax inclusive) | 0 shares | | Capital Reserve Conversion to Share Capital | No | Table of Contents This section lists the report's nine main chapters, covering company operations, finance, governance, and risks, with corresponding page numbers - The report comprises nine main chapters, covering company operations, finance, governance, and risk aspects[7] Definitions This section defines common terms and related entities in the report, including the CSRC, CAEP, Jiuyuan Group, major subsidiaries, and the reporting period, to ensure clear understanding - The definitions section clarifies terms related to regulatory bodies, major shareholders, subsidiaries, and key timeframes within the report[13] Part II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and highlights its strong financial performance in the first half of 2025 Company Profile This section introduces the company's basic information, including stock ticker, stock code, listing exchange, and legal representative, confirming the company name as Lier Chemical Co., Ltd Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Lier Chemical | | Stock Code | 002258 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Lier Chemical Co., Ltd | | Legal Representative | Yin Yingsui | Contact Person and Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone, fax, and email Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Liu Jun | Building 5, No. 58 Huasheng Road, Chenghua District, Chengdu, Sichuan Province | 028-67575627 | 028-67575657 | tzfzb@lierchem.com | | Securities Affairs Representative | Jin Yongheng | Building 5, No. 58 Huasheng Road, Chenghua District, Chengdu, Sichuan Province | (Same as above) | (Same as above) | (Same as above) | Other Information The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period, consistent with the 2024 annual report - The company's contact information and information disclosure locations remained unchanged during the reporting period, consistent with the 2024 annual report[17][18] Key Accounting Data and Financial Indicators The company's 2025 semi-annual financial performance was strong, with revenue up 35.36%, net profit attributable to shareholders up 191.21%, positive operating cash flow, and significantly improved EPS 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Same Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,506,892,926.69 | 3,329,528,338.93 | 35.36% | | Net Profit Attributable to Shareholders of Listed Company | 270,549,813.06 | 92,905,800.39 | 191.21% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 272,372,872.69 | 79,871,023.24 | 241.02% | | Net Cash Flow from Operating Activities | 318,540,276.41 | -500,092,466.69 | 163.70% | | Basic Earnings Per Share (yuan/share) | 0.3380 | 0.1161 | 191.13% | | Diluted Earnings Per Share (yuan/share) | 0.3380 | 0.1161 | 191.13% | | Weighted Average Return on Net Assets | 3.45% | 1.23% | 2.22% | | Indicator | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 16,337,106,799.41 | 15,648,477,597.25 | 4.40% | | Net Assets Attributable to Shareholders of Listed Company | 7,847,147,240.54 | 7,726,587,850.26 | 1.56% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under international or overseas accounting standards and Chinese accounting standards - The company's financial report is prepared under Chinese accounting standards, with no differences compared to international or overseas accounting standards[21][22] Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the period were -1.82 million yuan, mainly from disposal of non-current assets, government grants, fair value changes, and impairment reversals, negatively impacting net profit 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -6,588,906.05 | | Government Grants Included in Current Profit or Loss | 3,775,641.76 | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities and Disposal of Financial Assets and Liabilities | 1,491,187.24 | | Reversal of Impairment Provisions for Accounts Receivable Subject to Separate Impairment Testing | 1,198,964.17 | | Other Non-Operating Income and Expenses | -1,467,680.71 | | Less: Income Tax Impact | -137,273.85 | | Minority Interest Impact (after tax) | 369,539.89 | | Total | -1,823,059.63 | - The company does not classify non-recurring gains and losses as recurring gains and losses[25][26] Part III Management Discussion and Analysis This section analyzes the company's principal businesses, core competencies, financial performance, and risks, along with management's strategies Principal Businesses During the Reporting Period The company primarily engages in R&D, production, and sales of chemical pesticide technicals, including herbicides, fungicides, insecticides, and chemical intermediates, achieving significant revenue and net profit growth - The company operates in the chemical raw materials and chemical products manufacturing industry, specifically chemical pesticide manufacturing[28] - The company's main products include high-efficiency, low-toxicity, low-residue pesticide technicals such as chloropyridine and organophosphorus series, along with over 40 technicals, over 100 formulations, and some chemical intermediates[34] Industry Development Overview The global pesticide market is growing due to food security and GMOs, with consolidation trends. China's market is transforming towards green, efficient, and concentrated production due to stricter environmental policies - The global pesticide market size is continuously increasing, driven by world population growth, persistent pest and weed infestations, and rising national focus on food security[28] - International agrochemical giants (e.g., Syngenta, Bayer, BASF, Corteva) completed a new round of mergers and acquisitions, holding over 60% market share, and increasing R&D investment in biological pesticides[29] - The domestic pesticide industry is undergoing a period of transformation and adjustment, with strengthened environmental and safety policies, accelerated elimination of highly toxic pesticides, strong demand for green pesticides, and faster industry consolidation[30] - In 2024, there were 115 pesticide companies with sales exceeding 500 million yuan, including 4 companies exceeding 10 billion yuan, indicating continuous improvement in industry concentration[30] - Policies such as the "Industrial Structure Adjustment Guidance Catalogue (2024 Edition)" and "Opinions on Further Deepening Rural Reform and Solidly Promoting Comprehensive Rural Revitalization" are driving the industry towards green, efficient, and intensive transformation[31] Company Overview The company is a leading producer of chloropyridine herbicides and glufosinate/glufosinate-P technicals, ranking among top global and Chinese pesticide firms, with strong H1 2025 performance driven by sales and price increases - The company is the largest R&D and production base for chloropyridine herbicide series pesticides in China, and a large-scale producer of glufosinate and glufosinate-P technicals[31] - The company ranked 7th in the China Pesticide Industry Association's "2024 Annual List of Pesticide Companies with Sales Exceeding 500 Million Yuan", 4th in the "2024 Annual List of Chinese Pesticide Companies with Export Value Exceeding 60 Million USD", and 15th in AGROPAGES' "2024 Global Crop Protection Companies Top 20 Ranking"[31] 2025 H1 Operating Performance | Indicator | Amount (billion yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 4.51 | 35.36% | | Net Profit Attributable to Shareholders of Listed Company | 0.27 | 191.21% | - The company's main products include over 40 technicals, over 100 formulations, and some chemical intermediates across three major series: herbicides, fungicides, and insecticides[34] - The company adopts a group-level centralized procurement model for bulk materials and establishes strategic partnerships with upstream and downstream supply chain partners[35][36] - The company's production model is based on "production by sales," formulating production plans according to market demand, and also engages in small-scale custom production of fine chemicals[36] - Sales channels are divided into international sales (self-operated exports to international agrochemical companies and distributors, accelerating international own-brand formulation business) and domestic sales (to distributors, retailers, pesticide companies, and domestic trading companies)[37] Analysis of Core Competencies The company boasts leading technology in pyridine compound chlorination and glufosinate synthesis, strong client relationships with global agrochemical giants, a complete industrial chain across 7 bases, advanced environmental management, and robust financing capabilities - The company is a national high-tech enterprise with a national-level enterprise technology center, mastering globally leading catalytic chlorination technology for pyridine compounds and large-scale synthesis technology for glufosinate and glufosinate-P[38][39] - The company exports products to over thirty countries and regions, establishing long-term stable strategic partnerships with globally renowned large agrochemical companies such as Corteva, BASF, and Syngenta[39] - The company owns 7 production bases, including Mianyang, Guang'an, and Nantong, forming a complete industrial chain covering chemical raw materials, intermediates, technicals, and formulations, making it the largest producer of chloropyridine pesticide technicals and formulations in China[39] - The company highly values environmental protection, is ISO14001 environmental management system certified, and continuously invests in technology R&D and environmental hardware, achieving advanced environmental management standards in the industry[40] - As a listed company, the company enjoys high visibility, sound financial condition, excellent capital market refinancing channels, and ample bank credit lines[40][41] Analysis of Principal Business Principal business revenue increased by 35.36% due to higher sales volumes and prices. Pesticide and intermediate business accounted for 94.98%, with technical pesticide revenue up 62.67%. International sales grew 69.43%, becoming the primary revenue source at 52.04% Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Same Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,506,892,926.69 | 3,329,528,338.93 | 35.36% | Primarily due to increased sales volume and prices of some company products | | Net Profit Attributable to Shareholders of Listed Company | 270,549,813.06 | 92,905,800.39 | 191.21% | (Refer to Section II, IV, Key Accounting Data and Financial Indicators) | | Net Cash Flow from Operating Activities | 318,540,276.41 | -500,092,466.69 | 163.70% | Primarily due to increased cash received from sales | Operating Revenue Composition (by Industry Segment) | Industry Segment | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Same Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Pesticides and Intermediates | 4,280,915,281.53 | 94.98% | 3,207,924,336.28 | 96.35% | 33.45% | | Chemical Materials | 219,815,975.14 | 4.88% | 111,836,667.50 | 3.36% | 96.55% | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Same Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Pesticide Technicals | 2,756,670,848.18 | 61.16% | 1,694,631,425.84 | 50.90% | 62.67% | | Pesticide Formulations | 960,208,049.73 | 21.31% | 853,589,034.67 | 25.64% | 12.49% | | Pesticide Intermediates | 409,643,644.69 | 9.09% | 327,626,329.69 | 9.84% | 25.03% | Operating Revenue Composition (by Region) | Region | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Same Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | International Sales | 2,345,291,546.33 | 52.04% | 1,384,190,230.12 | 41.57% | 69.43% | | Domestic Sales | 2,161,601,380.36 | 47.96% | 1,945,338,108.81 | 58.43% | 11.12% | Analysis of Non-Principal Business During the reporting period, non-principal businesses did not significantly impact the company's profit composition or sources - The company had no analysis of non-principal business during the reporting period[48] Analysis of Assets and Liabilities Total assets increased by 4.40% and net assets attributable to shareholders by 1.56%. Asset structure remained stable, with no major changes in key items. Fair value financial assets were 90.44 million yuan, with some assets restricted for loans and pledges Significant Changes in Asset Composition | Item | Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,405,882,866.14 | 8.61% | 1,450,353,686.92 | 9.27% | -0.66% | | Accounts Receivable | 2,351,869,495.81 | 14.40% | 1,871,845,066.75 | 11.96% | 2.44% | | Inventories | 1,764,983,398.82 | 10.80% | 1,688,722,588.35 | 10.79% | 0.01% | | Fixed Assets | 7,283,828,799.04 | 44.58% | 7,607,822,565.22 | 48.62% | -4.04% | | Construction in Progress | 1,276,197,933.67 | 7.81% | 996,733,077.22 | 6.37% | 1.44% | | Short-Term Borrowings | 269,867,248.47 | 1.65% | 220,045,180.14 | 1.41% | 0.24% | | Long-Term Borrowings | 2,407,799,190.76 | 14.74% | 2,155,511,511.26 | 13.77% | 0.97% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gain/Loss for the Period (yuan) | Period-End Balance (yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 0.00 | 381,392.45 | 90,381,920.23 | | Other Equity Instrument Investments | 56,812.00 | 0.00 | 56,812.00 | | Financial Liabilities | 1,388,611.82 | -1,388,611.82 | 0.00 | | Total | 1,445,423.82 | -1,007,219.37 | 90,438,732.23 | Asset Restrictions at Period-End | Item | Book Balance (yuan) | Book Value (yuan) | Type of Restriction | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 63,499,673.49 | 63,499,673.49 | Frozen, Margin | | Fixed Assets | 149,378,594.05 | 127,091,158.34 | Mortgage | | Intangible Assets | 319,680,878.74 | 304,008,424.17 | Mortgage | | Construction in Progress | 134,612,241.69 | 134,612,241.69 | Mortgage | | Notes Receivable Financing | 9,000,000.00 | 9,000,000.00 | Pledge | | Trading Financial Assets | 40,000,000.00 | 40,000,000.00 | Pledge | | Total | 716,171,387.97 | 678,211,497.69 | | Analysis of Investment Status Investment decreased by 23.88%. Major non-equity investments include glufosinate-P and green pesticide projects at Hubei Lituo. The company engaged in hedging derivatives (forward foreign exchange settlement) to mitigate exchange rate risks, generating 1.05 million yuan in fair value changes Investment Amount for the Reporting Period | Indicator | Current Reporting Period (yuan) | Prior Year Same Period (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 512,262,404.12 | 672,935,388.24 | -23.88% | Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Industry Involved | Amount Invested in Current Period (yuan) | Cumulative Actual Investment at Period-End (yuan) | Estimated Return (yuan) | Cumulative Realized Return (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hubei Lituo 10,000 tons/year Glufosinate-P Technical and Supporting Engineering Project | Self-built | Chemical Industry | 37,866,923.58 | 344,498,663.94 | 416,320,000.00 | 0.00 | | Hubei Lituo Green, Efficient, Low-Toxicity Crop Protection Technical Production Project (Phase I) | Self-built | Chemical Industry | 74,032,113.52 | 141,879,993.44 | 233,190,000.00 | 0.00 | | Total | | | 111,899,037.10 | 486,378,657.38 | 649,510,000.00 | 0.00 | - The company had no securities investments during the reporting period[56] Derivative Investments for Hedging Purposes During the Reporting Period | Derivative Investment Type | Initial Investment Amount (10,000 yuan) | Fair Value Change Gain/Loss for the Period (10,000 yuan) | | :--- | :--- | :--- | | Forward Foreign Exchange Settlement | 7,963.54 | 104.67 | - The company conducts forward foreign exchange settlement and sales transactions following prudent and stable risk management principles, primarily to lock in costs and hedge against exchange rate risks[60] - The company had no derivative investments for speculative purposes or use of raised funds during the reporting period[61][62] Significant Asset and Equity Disposals During the reporting period, the company did not undertake any significant asset or equity disposal - The company did not sell significant assets or equity during the reporting period[63][64] Analysis of Major Holding and Associate Companies Key subsidiaries Jiangsu KuaiDa, Guang'an Lier, and Saike Chemical all achieved year-on-year performance growth, driven by stable operations, cost reduction, and capacity release Major Subsidiaries and Associate Companies with Over 10% Impact on Company Net Profit | Company Name | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | | Jiangsu KuaiDa | 512,912,679.89 | 54,741,813.23 | | Guang'an Lier | 1,152,495,625.35 | 29,271,728.10 | | Saike Chemical | 281,731,239.00 | 43,345,122.41 | - Jiangsu KuaiDa maintained stable operations, with sales growth driving a modest increase in performance[66] - Guang'an Lier implemented multiple measures to reduce costs and increase efficiency, resulting in year-on-year growth in operating performance[66] - Saike Chemical achieved significant performance growth due to capacity release and a substantial increase in product sales[66] Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company had no structured entities under its control during the reporting period[67] Risks Faced by the Company and Countermeasures The company faces risks from market competition, increased environmental investment, safety incidents, profit decline due to large-scale construction, management challenges from rapid growth, and international trade friction, addressed through various strategic measures - Market competition risk: Increased capacity from domestic and international competitors; the company will maintain competitive advantage through process optimization, new product development, and new customer acquisition[67] - Environmental risk: Stricter national environmental policies; the company will increase environmental investment and respond through energy conservation, emission reduction, technological optimization, and enhanced waste resource utilization[68] - Production safety risk: Production processes involve flammable, explosive, toxic substances, and high-temperature/high-pressure operations; the company has equipped safety facilities, management organizations, and comprehensive systems to ensure safe production[69] - Profit decline risk due to large-scale construction investment: Significant capital expenditures for multiple base constructions may increase depreciation and interest; the company will strictly manage investments, shorten construction periods, and accelerate project commissioning[70] - Management risk from rapid company development: Increased bases and construction projects lead to management complexity; the company will improve its group-level management structure, coordinate subsidiary management, and strengthen risk management[71] - International trade friction risk: Intensified geopolitical competition may lead to tariff barriers and market access restrictions; the company will respond by strengthening customer communication, adjusting pricing strategies, exploring emerging markets, enhancing technological innovation, and establishing overseas bases[72][73] 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, nor has it disclosed a valuation enhancement plan[74] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an action plan for "Dual Improvement in Quality and Returns" - The company has not disclosed an action plan for "Dual Improvement in Quality and Returns"[74] Part IV Corporate Governance, Environment, and Society This section details changes in the company's governance, profit distribution, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management On August 26, 2025, the company completed the re-election and appointment of its board and senior management, with Yin Yingsui elected Chairman and Li Jiang appointed General Manager, alongside other changes and departures due to term expiry - On August 26, 2025, the company completed the re-election of its Board of Directors and senior management, with Yin Yingsui elected Chairman and Li Jiang appointed General Manager[75][76] - Multiple directors, independent directors, deputy general managers, and the chief financial officer changed due to re-election, with some independent directors and supervisors departing upon term expiry[75] Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The board approved a 2025 semi-annual profit distribution plan to pay a cash dividend of 2 yuan (tax inclusive) per 10 shares, based on 800,437,228 shares, totaling 160.09 million yuan, representing 100% of distributable profit 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Bonus Shares per 10 Shares (shares) | 0 | | Cash Dividend per 10 Shares (yuan) (tax inclusive) | 2 | | Share Capital Base for Distribution Plan (shares) | 800,437,228 | | Cash Dividend Amount (yuan) (tax inclusive) | 160,087,445.60 | | Proportion of Total Cash Dividend to Total Profit Distribution | 100% | | Distributable Profit (yuan) | 2,408,342,724.84 | - This profit distribution does not involve capital reserve conversion to share capital[77] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company did not implement any 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 and their implementation during the reporting period[78] Environmental Information Disclosure The company and its 10 major subsidiaries are listed as legally required environmental information disclosure enterprises and have publicly disclosed reports through the relevant system, demonstrating compliance and transparency - The company and its 10 major subsidiaries are included in the list of enterprises legally required to disclose environmental information[79] - All listed enterprises have publicly disclosed their reports through their respective local enterprise environmental information disclosure systems[79][80] Social Responsibility During the reporting period, the company has not yet undertaken poverty alleviation or rural revitalization initiatives, nor does it have related plans for the future - The company has not yet undertaken targeted poverty alleviation or rural revitalization efforts during the reporting period, nor does it have related plans for the future[81] Part V Significant Matters This section covers the company's fulfillment of commitments, absence of non-operating fund occupation, related-party transactions, and other significant events Fulfillment of Commitments The company's actual controller and major shareholders (holding over 5% before IPO) strictly fulfilled long-term commitments regarding avoiding horizontal competition, related-party transactions, and fund occupation during the reporting period - The company's actual controller and major shareholders strictly fulfilled long-term commitments regarding horizontal competition, related-party transactions, and fund occupation[83] Non-Operating Fund Occupation During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties - The company had no non-operating occupation of funds by controlling shareholders or other related parties during the reporting period[84] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[85] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[86] Board of Directors' and Supervisory Board's Explanations on "Non-Standard Audit Reports" The company had no non-standard audit reports during the reporting period - The company had no non-standard audit reports during the reporting period[87] Board of Directors' Explanations on "Non-Standard Audit Reports" for the Previous Year The company had no non-standard audit reports for the previous year - The company had no non-standard audit reports for the previous year[87] Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization matters - The company had no bankruptcy and reorganization matters during the reporting period[87] Litigation Matters During the reporting period, the company had no significant litigation, arbitration, or other litigation matters - The company had no significant litigation or arbitration matters during the reporting period[89] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[89] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company and its controlling shareholder have no unfulfilled court judgments or large overdue debts, maintaining good integrity - The company and its controlling shareholder have no unfulfilled court judgments or large overdue debts[90] Significant Related-Party Transactions The company engaged in a 6.74 million yuan equipment procurement related-party transaction with Jiuyuan Chemical, within approved limits. No other significant related-party transactions occurred Related-Party Transactions Related to Daily Operations | Related Party | Related-Party Transaction Content | Related-Party Transaction Amount (10,000 yuan) | Approved Transaction Limit (10,000 yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Jiuyuan Chemical | Procurement of equipment and equipment processing | 673.67 | 5,000 | No | - The company had no related-party transactions involving asset or equity acquisition/disposal during the reporting period[92] - The company had no related-party transactions involving joint external investment during the reporting period[93] - The company had no non-operating related-party creditor-debtor transactions during the reporting period[94] - There were no deposit, loan, credit, or other financial business transactions between the company and related financial companies[95][96] - The company had no other significant related-party transactions during the reporting period[97] Significant Contracts and Their Performance The company had no trust, contracting, wealth management, or other significant contracts. Leasing primarily involved office and warehouse space, with minor profit impact. Significant guarantees, mainly for subsidiaries, totaled 1.72 billion yuan, representing 21.95% of net assets - The company had no trust or contracting situations during the reporting period[98][99] - The company's leasing business primarily involves office buildings and warehouses, with recognized right-of-use assets of 18.66 million yuan and lease liabilities of 14.91 million yuan at period-end, and short-term lease expenses of 5.80 million yuan, having a minor impact on profit[101] - The company had no leasing projects that generated profit exceeding 10% of total profit during the reporting period[102] Company Guarantees for Subsidiaries (Partial) | Guaranteed Party Name | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Guarantee Type | | :--- | :--- | :--- | :--- | | Guang'an Lier | 30,000 | 13,255.81 | Joint and Several Liability Guarantee | | Guang'an Lvyuan | 20,000 | 16,250 | Joint and Several Liability Guarantee | | Lier Crop | 7,000 | 2,865.46 | Joint and Several Liability Guarantee | | Saike Chemical | 1,530 | 1,530 | Joint and Several Liability Guarantee | | Lier Bio | 55,000 | 23,336 | Joint and Several Liability Guarantee | | Hubei Lituo | 18,000 | 5,000 | Joint and Several Liability Guarantee | | Qimingxing Huachuang | 5,000 | 4,358.1 | Joint and Several Liability Guarantee | | Sichuan Foersen | 5,000 | 271.28 | Joint and Several Liability Guarantee | - The total actual guarantee balance for subsidiaries at the end of the reporting period was 1.72 billion yuan, accounting for 21.95% of the company's net assets[106][107] - The company had no wealth management or other significant contracts during the reporting period[108][109] Explanation of Other Significant Matters On May 19, 2025, the company received a notice from controlling shareholder Jiuyuan Group regarding equity reform, which may change the controlling shareholder and actual controller but will not significantly impact daily operations - On May 19, 2025, the company received a notice from its controlling shareholder, Jiuyuan Group, regarding equity reform, which may lead to a change in the controlling shareholder and actual controller[110] - This equity reform matter will not significantly impact the company's daily production and operating activities[110] - As of the report disclosure date, the company has not received further information regarding this matter[110] Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters - The company had no significant subsidiary matters during the reporting period[112] Part VI Share Changes and Shareholder Information This section details the company's share capital, shareholder structure, and any changes in shareholdings or control Share Change Status The company's total share capital remained unchanged at 800,437,228 shares during the reporting period, with no changes in restricted or unrestricted shares, share repurchases, or securities issuance Share Change Status | Share Class | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,286,883 | 0.16% | 0 | 1,286,883 | 0.16% | | II. Unrestricted Shares | 799,150,345 | 99.84% | 0 | 799,150,345 | 99.84% | | III. Total Shares | 800,437,228 | 100.00% | 0 | 800,437,228 | 100.00% | - The company's total share capital remained unchanged during the reporting period[115] - The company had no progress on share repurchases during the reporting period[116] Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing - The company had no securities issuance or listing during the reporting period[116] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 53,509 common shareholders. Top shareholders include Sichuan Jiuyuan Investment Holding Group Co., Ltd. (23.78%), Zhongtong Investment Co., Ltd., and Sichuan Huacai Technology Co., Ltd. Jiuyuan Group and Huacai Technology are related parties acting in concert - The total number of common shareholders at the end of the reporting period was 53,509[117] 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) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Sichuan Jiuyuan Investment Holding Group Co., Ltd. | State-owned Legal Person | 23.78% | 190,376,009 | 190,376,009 | | Zhongtong Investment Co., Ltd. | Overseas Legal Person | 8.83% | 70,699,469 | 70,699,469 | | Sichuan Huacai Technology Co., Ltd. | State-owned Legal Person | 8.42% | 67,358,015 | 67,358,015 | | China Merchants Bank Co., Ltd. - Xingquan Heyuan Two-Year Holding Period Mixed Securities Investment Fund | Other | 1.62% | 12,955,828 | 12,955,828 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.93% | 7,426,508 | 7,426,508 | | Zhang Chengxian | Domestic Natural Person | 0.80% | 6,381,060 | 6,381,060 | | Chen Xuelin | Domestic Natural Person | 0.77% | 6,124,845 | 6,124,845 | | China Foreign Economy and Trade Trust Co., Ltd. - Foreign Trade Trust - Ruijin 16th Phase Zhongou Ruibo Securities Investment Collective Fund Trust Plan | Other | 0.73% | 5,865,899 | 5,865,899 | | National Social Security Fund 502 Portfolio | Other | 0.72% | 5,799,960 | 5,799,960 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 Exchange Traded Open-Ended Index Securities Investment Fund | Other | 0.56% | 4,449,246 | 4,449,246 | - Jiuyuan Group and Huacai Technology have an associated relationship and are parties acting in concert[118] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, as detailed in the 2024 annual report - The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[119] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder and actual controller did not change during the reporting period[120] Part VII Bond-Related Information During the reporting period, the company had no bond-related information Bond-Related Information During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[123] Part VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, and cash flow statements, along with detailed notes on accounting policies and specific financial items Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[125] Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow situation - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[126][130][134][137][140][143][146][151] Consolidated Balance Sheet As of June 30, 2025, total consolidated assets were 16.34 billion yuan, liabilities 7.17 billion yuan, and owners' equity 9.17 billion yuan. Accounts receivable and notes receivable financing significantly increased, while notes payable and long-term borrowings also grew Consolidated Balance Sheet Key Data (Period-End) | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 16,337,106,799.41 | 15,648,477,597.25 | | Total Liabilities | 7,167,609,947.82 | 6,637,860,405.86 | | Total Owners' Equity | 9,169,496,851.59 | 9,010,617,191.39 | | Cash and Bank Balances | 1,405,882,866.14 | 1,450,353,686.92 | | Accounts Receivable | 2,351,869,495.81 | 1,871,845,066.75 | | Notes Receivable Financing | 282,483,670.75 | 181,025,182.51 | | Inventories | 1,764,983,398.82 | 1,688,722,588.35 | | Fixed Assets | 7,283,828,799.04 | 7,607,822,565.22 | | Construction in Progress | 1,276,197,933.67 | 996,733,077.22 | | Notes Payable | 1,702,920,634.00 | 1,303,199,657.32 | | Long-Term Borrowings | 2,407,799,190.76 | 2,155,511,511.26 | Consolidated Income Statement In H1 2025, total operating revenue reached 4.51 billion yuan, up 35.36%; net profit was 327 million yuan, up 151.88%. Net profit attributable to parent company shareholders was 271 million yuan, up 191.21%, driven by revenue growth Consolidated Income Statement Key Data | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 4,506,892,926.69 | 3,329,528,338.93 | | Operating Profit | 416,590,083.79 | 163,657,782.18 | | Total Profit | 405,534,640.81 | 163,142,393.19 | | Net Profit | 327,278,386.96 | 129,936,213.35 | | Net Profit Attributable to Parent Company Shareholders | 270,549,813.06 | 92,905,800.39 | | Basic Earnings Per Share (yuan/share) | 0.3380 | 0.1161 | Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities turned positive to 319 million yuan from -500 million yuan, mainly due to increased cash from sales. Net cash flow from investing activities was -563 million yuan, and from financing activities was 190 million yuan. The net increase in cash and cash equivalents was -40.73 million yuan Consolidated Cash Flow Statement Key Data | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 318,540,276.41 | -500,092,466.69 | | Net Cash Flow from Investing Activities | -562,760,537.61 | -633,712,649.44 | | Net Cash Flow from Financing Activities | 189,510,805.55 | 476,922,814.42 | | Net Increase in Cash and Cash Equivalents | -40,734,170.30 | -637,582,059.89 | - Net cash flow from operating activities significantly turned positive, primarily due to increased cash received from sales[43][142] Company Basic Information Lier Chemical Co., Ltd., established on August 1, 2007, is controlled by Jiuyuan Group and ultimately by China Academy of Engineering Physics, with a registered capital of 800,437,228.00 yuan, specializing in R&D, production, and sales of high-efficiency, low-toxicity, low-residue chemical pesticides - The company was established on August 1, 2007, with Jiuyuan Group as the controlling shareholder and China Academy of Engineering Physics as the actual controller[158] - As of June 30, 2025, the company's registered capital and paid-in capital were both 800,437,228.00 yuan[163] - The company's principal business is chemical pesticide manufacturing, primarily engaging in the R&D, production, and sales of high-efficiency, low-toxicity, low-residue pesticide technicals such as chloropyridine and organophosphorus series[163] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with CAS and CSRC disclosure requirements, with no significant doubts about the going concern assumption - The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and CSRC information disclosure regulations[164] - The company has no matters or circumstances that would cause significant doubt about the going concern assumption for the 12 months from the end of the reporting period[165] Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates for financial statement preparation, covering areas like accounting standards, period, operating cycle, functional currency, materiality, business combinations, financial instruments, fair value, receivables, inventories, fixed assets, and revenue recognition - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, accurately and completely reflecting the company's financial position, operating results, and cash flows[168] - The company uses a 12-month period as its operating cycle and as the basis for classifying assets and liabilities as current or non-current[170] - In applying accounting policies, the company makes judgments, estimates, and assumptions about the book values of financial statement items that cannot be measured accurately, based on management's past historical experience and considering other relevant factors[304] Taxation This section lists the company's main tax types and rates, including VAT, urban maintenance and construction tax, corporate income tax, and education surcharges. The company and several subsidiaries benefit from tax incentives like Western Development, small-profit enterprises, and high-tech enterprise status Major Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value-added amount from sales of goods, export sales follow tax exemption, offset, and refund management methods | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7%, 5% | | Corporate Income Tax | Taxable income | See table below | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | The Company | 15% | | Jiangsu KuaiDa | 15% | | ... (partial list) | | | Guang'an Lier | 25% | | Saike Chemical | 15% | | Hubei Lituo | 25% | - Guang'an Lvyuan and Guang'an Lihua enjoy Western Development tax incentives, with corporate income tax calculated at 15%[313] - Yinhai Caiyin, Nantong Tianlong, Sichuan Lvdiyuan, Sichuan Anyin, and Bide Engineering meet the criteria for small-profit enterprises, with corporate income tax calculated at 20%[314] - The Company, Lier Crop, Lier Bio, Jiangsu KuaiDa, Bide Biochemical, and Saike Chemical are high-tech enterprises, with corporate income tax calculated at 15% for 2025[315][317] Notes to Consolidated Financial Statement Items This section provides detailed notes on major consolidated financial statement items, including cash, accounts receivable, inventory, fixed assets, construction in progress, intangible assets, short-term and long-term borrowings, employee compensation, operating revenue, and costs, disclosing period-end balances, beginning balances, and changes - Cash and bank balances at period-end were 1.41 billion yuan, including 29.91 million yuan held overseas[319] - Accounts receivable book balance at period-end was 2.38 billion yuan, with a bad debt provision of 22.90 million yuan[323][326] - Inventory book value at period-end was 1.76 billion yuan, with an inventory impairment provision of 24.52 million yuan[364][365] - Fixed assets book value at period-end was 7.28 billion yuan, with accumulated depreciation of 4.02 billion yuan[375] - Construction in progress book value at period-end was 1.22 billion yuan, primarily for Hubei Lituo, Guang'an Lier, and Bide Biochemical construction projects[387] - Intangible assets book value at period-end was 993 million yuan, mainly for land use rights[399] - Short-term borrowings at period-end were 270 million yuan, and long-term borrowings were 2.41 billion yuan[425][459] - Operating revenue for the current period was 4.51 billion yuan, and operating costs were 3.67 billion yuan[482] Research and Development Expenses Total R&D investment for the period was 142.52 million yuan, a 6.12% decrease year-on-year, comprising 114.57 million yuan in expensed R&D and 27.95 million yuan in capitalized R&D, primarily for pesticide registration projects R&D Expenditure | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Total R&D Investment | 142,516,786.98 | 151,803,797.53 | | Expensed R&D Expenditure | 114,569,827.39 | 130,342,339.09 | | Capitalized R&D Expenditure | 27,946,959.59 | 21,461,458.44 | - Capitalized R&D expenditures are primarily for pesticide registration projects, with a period-end balance of 137.41 million yuan[541] Part IX Changes in Consolidation Scope This section confirms that the company's consolidation scope remained consistent with the prior year, with no disposals of subsidiaries during the reporting period Disposal of Subsidiaries During the reporting period, the company did not lose control over any subsidiaries through transactions or step-by-step disposals - The company had no transactions or events resulting in the loss of control over subsidiaries during the reporting period[543] Other The scope of consolidation for this reporting period is consistent with that of the 2024 annual report - The scope of consolidation for this reporting period is consistent with that of the 2024 annual report[543] Part X Interests in Other Entities This section details the company's interests in its subsidiaries, including their business nature, ownership structure, and key financial information for significant non-wholly owned entities Interests in Subsidiaries The company controls multiple subsidiaries involved in pesticide production, R&D, sales, trade, engineering, and environmental services, including Jiangsu KuaiDa, Bide Biochemical, Lier Crop, Guang'an Lier, Lier Bio, Saike Chemical, Hubei Lituo, Qimingxing Huachuang, and Guang'an Lihua, through direct/indirect equity or concerted action agreements Composition of the Enterprise Group (Partial) | Subsidiary Name | Business Nature | Shareholding Percentage (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | | Jiangsu KuaiDa | Pesticide Production, R&D, and Sales | 51.00% | Business Combination Not Under Common Control | | Bide Biochemical | Pesticide Production, R&D, and Sales | 45.00% | Business Combination Not Under Common Control | | Lier Crop | Pesticide Production, R&D, and Sales | 85.24% | Investment Establishment | | Guang'an Lier | Pesticide Production, R&D, and Sales | 100.00% | Investment Establishment | | Saike Chemical | Chemical Product Production and Sales | 51.00% | Business Combination Not Under Common Control | | Hubei Lituo | Chemical Product Production and Sales | 95.48% | Investment Establishment | | Qimingxing Huachuang | Chemical Product Production and Sales | 68.00% | Business Combination Not Under Common Control | | Guang'an Lihua | Pesticide Intermediate Production, R&D, and Sales | 80.00% | Investment Establishment | - The company controls Bide Biochemical through a concerted action agreement with Peng Xiaosi, holding 58.16% of the voting rights[546] Significant Non-Wholly Owned Subsidiaries Jiangsu KuaiDa and Saike Chemical are significant non-wholly owned subsidiaries. Jiangsu KuaiDa's minority interest is 49.00%, with 26.80 million yuan attributable to minority shareholders. Saike Chemical's minority interest is 49.00%, with 21.15 million yuan attributable to minority shareholders Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage | Net Profit Attributable to Minority Shareholders for the Period (yuan) | Dividends Declared to Minority Shareholders for the Period (yuan) | Minority Interest Balance at Period-End (yuan) | | :--- | :--- | :--- | :--- | :--- | | Jiangsu KuaiDa | 49.00% | 26,804,376.26 | 15,015,015.24 | 518,546,923.13 | | Saike Chemical | 49.00% | 21,152,492.77 | 3,526,221.30 | 173,120,502.63 | Key Financial Information of Significant Non-Wholly Owned Subsidiaries This section discloses the period-end and beginning asset and liability data, as well as current and prior period operating revenue, net profit, comprehensive income, and operating cash flow for Jiangsu KuaiDa and Saike Chemical, both achieving good performance Key Financial Information of Significant Non-Wholly Owned Subsidiaries (Period-End) | Subsidiary Name | Current Assets (yuan) | Non-Current Assets (yuan) | Total Assets (yuan) | Current Liabilities (yuan) | Non-Current Liabilities (yuan) | Total Liabilities (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu KuaiDa | 1,042,076,538.58 | 330,768,905.83 | 1,372,845,444.41 | 315,948,896.57 | 1,325,852.01 | 317,274,748.58 | | Saike Chemical | 201,553,237.02 | 410,070,984.02 | 611,624,221.04 | 236,081,341.61 | 25,768,851.67 | 261,850,193.28 | Key Financial Information of Significant Non-Wholly Owned Subsidiaries (Current Period) | Subsidiary Name | Operating Revenue (yuan) | Net Profit (yuan) | Total Comprehensive Income (yuan) | Net Cash Flow from Operating Activities (yuan) | | :--- | :--- | :--- | :--- | :--- | | Jiangsu KuaiDa | 512,912,679.89 | 54,741,813.23 | 54,741