大亚圣象(000910) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The company's management guarantees the report's authenticity and plans no semi-annual dividend distribution - The company's Board of Directors, Board of Supervisors, and its directors, supervisors, and senior management guarantee that the content of this semi-annual report is true, accurate, and complete, and free from any false records, misleading statements, or material omissions, and they assume individual and joint legal liability[4] - The company's legal representative Chen Jianjun, the person in charge of accounting Chen Gang, and the head of the accounting department (accounting supervisor) Chen Gang declare that they guarantee the truthfulness, accuracy, and completeness of the financial report in this semi-annual report[4] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[6] Table of Contents This section provides an overview of the report's structure by listing its nine main chapters Definitions This section defines key terms used throughout the report to ensure clear understanding - The Company, This Company, or Dare Power Dekor refers to Dare Power Dekor Home Co, Ltd[12] - The Reporting Period or This Reporting Period refers to January 1, 2025 -- June 30, 2025[12] - The Same Period Last Year refers to January 1, 2024 -- June 30, 2024[12] Company Profile and Key Financial Indicators Company Profile The company's basic information, including stock details and contact information, remains unchanged - Stock Abbreviation: Dare Power Dekor, Stock Code: 000910, Stock Exchange: Shenzhen Stock Exchange[14] - The company's legal representative is Chen Jianjun[14] - The company's registered address, office address and its postal code, company website, and email address remained unchanged during the reporting period, as detailed in the 2024 annual report[16] Key Accounting Data and Financial Indicators The company experienced significant year-on-year declines in revenue, net profit, and operating cash flow Key Accounting Data and Financial Indicators for the First Half of 2025 | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | Change from Same Period Last Year | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,095,505,878.29 | 2,377,014,110.18 | -11.84% | | Net Profit Attributable to Shareholders | 35,657,615.76 | 63,545,488.64 | -43.89% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 29,345,754.71 | 55,218,103.45 | -46.85% | | Net Cash Flow from Operating Activities | -31,168,649.98 | 210,401,226.50 | -114.81% | | Basic Earnings Per Share (Yuan/Share) | 0.07 | 0.12 | -41.67% | | Diluted Earnings Per Share (Yuan/Share) | 0.07 | 0.12 | -41.67% | | Weighted Average Return on Equity | 0.53% | 0.95% | -0.42% | | Period-End Indicator | End of Current Reporting Period (Yuan) | End of Last Year (Yuan) | Change from End of Last Year | | Total Assets | 9,523,073,417.13 | 9,394,656,832.92 | 1.37% | | Net Assets Attributable to Shareholders | 6,679,645,936.09 | 6,752,922,605.50 | -1.09% | Differences in Accounting Data under Domestic and Foreign Accounting Standards No discrepancies exist between financial data prepared under Chinese and international accounting standards - The company has no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards for the reporting period[20] - The company has no differences in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese accounting standards for the reporting period[21] Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 6.31 million yuan, primarily from government grants and asset disposals Non-recurring Gains and Losses Items and Amounts for the First Half of 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses on disposal of non-current assets (including write-offs of asset impairment provisions) | -6,576,579.23 | | Government grants included in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, and enjoyed based on established standards with a continuous impact on profit or loss) | 15,449,325.69 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and investment income from the disposal of such assets and liabilities, excluding effective hedging activities related to normal business operations | 2,576,134.37 | | Other non-operating income and expenses not listed above | -1,380,044.17 | | Less: Income tax effect | 2,899,160.03 | | Minority interest effect (after tax) | 857,815.58 | | Total | 6,311,861.05 | Management Discussion and Analysis Principal Business Activities during the Reporting Period The company's main business in flooring and wood-based panels saw revenue and profit decline due to market conditions - The company is primarily engaged in the production and sales of flooring ("Power Dekor" brand) and wood-based panels ("Dare" brand)[26] - In the first half of 2025, the company achieved operating revenue of 2.096 billion yuan, a year-on-year decrease of 11.84%, and net profit attributable to the parent company of 35.66 million yuan, a year-on-year decrease of 43.89%[27] - The wood flooring industry has seen a market contraction due to declining real estate development investment and sales, while the wood-based panel industry is also under short-term pressure from domestic economic and real estate market challenges, leading to intense competition[28][31] - The company continues to build its "Dare" and "Power Dekor" brands, establishing a solid market position through product quality, scale advantages, and brand influence[34] Core Competitiveness Analysis The company's core competitiveness remains stable, centered on brand value, green supply chain, and production scale - The company is a national key forestry leading enterprise and a high-tech enterprise, holding a leading position in the flooring and wood-based panel industries[35] - The "Power Dekor" brand is valued at 114.385 billion yuan, ranking first in China's home furnishing industry for many years; the "Dare" wood-based panel brand is valued at 36.397 billion yuan, topping the list in China's wood-based panel industry[35] - The company has an annual production capacity of 80 million square meters of flooring and 1.35 million cubic meters of medium-high density fiberboard and particleboard, providing a significant scale advantage[36] - The company possesses a global marketing network, including nearly 3,000 flooring specialty stores, online e-commerce platforms, and multiple regional marketing centers[36] - The company emphasizes new product R&D, technological innovation, and research investment, with a postdoctoral research station, provincial technology centers, and a nationally certified flooring laboratory, maintaining a leading technological position in China[36] - During the reporting period, the company's core competitiveness remained unchanged[37] Analysis of Main Business Operations Revenue and costs declined, while financial expenses decreased significantly due to higher interest income Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,095,505,878.29 | 2,377,014,110.18 | -11.84% | | | Operating Cost | 1,532,587,569.98 | 1,761,553,956.40 | -13.00% | | | Financial Expenses | -23,457,864.23 | -8,916,851.41 | -163.07% | Due to increased interest income and decreased interest expense during the reporting period | | Net Cash Flow from Operating Activities | -31,168,649.98 | 210,401,226.50 | -114.81% | The decrease in net cash inflow from operating activities was greater than the decrease in net cash outflow from operating activities | | Net Cash Flow from Investing Activities | 191,789,264.31 | -175,639,752.64 | 209.19% | Due to the maturity of wealth management products, cash inflow from investing activities increased | Operating Revenue Composition (by Product) | Product | Current Period Amount (Yuan) | % of Operating Revenue | Prior Period Amount (Yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Medium-High Density Fiberboard | 471,346,243.55 | 22.49% | 583,213,838.78 | 24.54% | -19.18% | | Wood Flooring | 1,354,973,088.32 | 64.66% | 1,405,471,201.58 | 59.13% | -3.59% | | Bamboo, Stone Plastic Flooring | 220,355,985.64 | 10.52% | 348,647,355.76 | 14.67% | -36.80% | Operating Revenue Composition (by Region) | Region | Current Period Amount (Yuan) | % of Operating Revenue | Prior Period Amount (Yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | East China | 801,316,045.78 | 38.24% | 866,350,757.25 | 36.45% | -7.51% | | International | 262,093,588.62 | 12.51% | 387,581,532.46 | 16.31% | -32.38% | Analysis of Non-core Business Non-core business significantly impacted profits, primarily through non-sustainable government grants and other income Impact of Non-core Business on Total Profit | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 2,576,082.66 | 7.03% | Investment income from wealth management products | No | | Credit Impairment Loss | 11,106,773.38 | 30.32% | Provision for bad debts on accounts receivable and other receivables | No | | Other Income | 50,155,289.91 | 136.93% | VAT refund of 32.38 million yuan, other government grants of 15.45 million yuan, and VAT input tax credit of 2.33 million yuan | Other government grants are not sustainable | | Asset Disposal Gain | -6,576,579.23 | -17.95% | Disposal loss of 6.78 million yuan on fixed assets due to lease expiration at Huizhou Shengyi Wood Industry | No | Analysis of Assets and Liabilities Total assets grew slightly while net assets decreased, with notable changes in cash, inventories, and financial assets Significant Changes in Asset Composition | Item | End of Current Period (Yuan) | % of Total Assets | End of Prior Year (Yuan) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,607,225,049.20 | 27.38% | 2,334,443,807.56 | 24.85% | 2.53% | | Trading Financial Assets | 729,406,260.27 | 7.66% | 1,030,038,150.68 | 10.96% | -3.30% | | Inventories | 1,938,392,971.85 | 20.35% | 1,757,848,141.22 | 18.71% | 1.64% | | Construction in Progress | 41,158,081.33 | 0.43% | 4,578,954.64 | 0.05% | 0.38% | | Short-term Borrowings | 50,850,381.70 | 0.53% | 36,850,184.67 | 0.39% | 0.14% | | Contract Liabilities | 501,954,055.22 | 5.27% | 430,991,732.76 | 4.59% | 0.68% | - The company has no major assets that are seized, detained, frozen, mortgaged, pledged, or have restricted realizability, are non-realizable, or cannot be used to settle debts[48] Investment Analysis Investment activities slightly increased year-on-year, with no significant equity or securities investments Investment Amount during the Reporting Period | Investment Amount in Reporting Period (Yuan) | Investment Amount in Same Period Last Year (Yuan) | Change | | :--- | :--- | :--- | | 411,815,662.73 | 408,156,152.00 | 0.90% | - The company had no securities investments, derivatives investments, or use of raised funds during the reporting period[51][52][53] Major Asset and Equity Sales The company did not engage in any major sales of assets or equity during the reporting period - The company did not sell any major assets during the reporting period[54] - The company did not sell any major equity during the reporting period[55] Analysis of Major Holding and Associated Companies The financial performance of major subsidiaries varied, with some showing increased losses while others improved profitability Net Profit of Major Holding and Associated Companies | Company Name | Net Profit (Yuan) | YoY Change (Yuan) | Reason for Change | | :--- | :--- | :--- | :--- | | Power Dekor Group Co, Ltd | -16,237,247.35 | Loss increased by 14,301,747.35 | Decrease in flooring sales revenue | | Dare (Jiangsu) Flooring Co, Ltd | 13,478,613.90 | Increased by 7,014,613.90 | Change in flooring product mix, lower production costs, and higher gross margin | | Dare Wood Based Panel Group Co, Ltd | 25,874,876.72 | Decreased by 28,909,123.28 | Decrease in sales revenue and gross margin | | Dare Wood Industry (Jiangxi) Co, Ltd | -4,917,363.74 | Loss reduced by 7,647,936.26 | Production ceased in 2024, leading to reduced expenses | | Dare Wood Industry (Maoming) Co, Ltd | 3,316,098.98 | Decreased by 5,059,401.02 | Decrease in wood-based panel sales revenue and gross margin | | Dare Wood Industry (Zhaoqing) Co, Ltd | 15,054,637.68 | Increased by 2,444,137.68 | Lower production costs and higher gross margin | | Dare Wood Industry (Heilongjiang) Co, Ltd | -2,657,527.71 | Loss reduced by 1,350,372.29 | Production ceased for years, reducing depreciation, amortization, and expenses | | Power Dekor (Shanghai) New Material Technology Co, Ltd | -2,603,327.02 | Loss reduced by 5,201,472.98 | Higher sales gross margin and reduced expenses | | Dare Wood Industry (Jiangsu) Co, Ltd | 2,188,962.05 | Increased by 2,697,500.00 | Lower production costs and higher gross margin | | Dare New Energy Material Technology (Guangxi) Co, Ltd | -7,532,435.19 | Loss increased by 7,073,035.19 | Currently in a large-scale construction phase, leading to increased period expenses | Risks and Countermeasures The company faces risks from raw material prices, market volatility, and competition, addressed through strategic adjustments - The company faces risks of raw material shortages and price fluctuations, as timber harvesting is limited by forestry policies, natural disasters, and climate, creating supply-demand tension and potentially impacting profitability[61] - The market demand for the company's products is highly correlated with the real estate market, and a continued downturn in this sector will adversely affect the company's operating performance[61] - The decorative materials industry suffers from overall overcapacity and intensified competition, which may affect the industry's average profit level and compress the company's product profit margins[61] - The company will closely monitor the macroeconomic environment and industry dynamics, adjust its procurement strategies, and mitigate raw material risks through resource structure adjustments, product differentiation, strategic stockpiling, and centralized purchasing[63] - The company will continue to improve its risk control system, refine accounts receivable management, promote brand building, and strengthen product development, design, and innovation to enhance brand loyalty, awareness, and reputation[63] - The company will enhance internal management, increase revenue and reduce expenditure, strengthen standardized and lean management, optimize operational processes, and establish a sound talent reserve system to attract and cultivate high-quality personnel[63] Development and Implementation of Market Value Management and Valuation Enhancement Plan The company has formulated a valuation enhancement plan to improve investment value and shareholder returns - On March 26, 2025, the company held the sixth meeting of its ninth Board of Directors and approved the "Proposal on Formulating the "[64] - The company plans to enhance its investment value by improving operational efficiency, actively seeking M&A opportunities, implementing cash dividends, strengthening investor relations and information disclosure, and encouraging major shareholders to increase their holdings[64] Implementation of the 'Dual Improvement in Quality and Returns' Action Plan The company has not disclosed a "Dual Improvement in Quality and Returns" action plan during the reporting period - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[65] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period; for details, please refer to the 2024 annual report[67] Profit Distribution and Capitalization of Capital Reserves for the Reporting Period The company plans no semi-annual profit distribution or capitalization of capital reserves - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[68] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[69] Environmental Information Disclosure The company and four of its main subsidiaries are listed for mandatory environmental information disclosure - The listed company and its main subsidiaries are included in the list of enterprises required to disclose environmental information by law: Yes[70] Enterprises Included in the List for Mandatory Environmental Information Disclosure | No | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Dare Wood Based Panel Group Co, Ltd | Jiangsu Provincial Department of Ecology and Environment --- Enterprise Environmental Information Disclosure System | | 2 | Dare Wood Industry (Zhaoqing) Co, Ltd | Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 3 | Dare Wood Industry (Maoming) Co, Ltd | Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 4 | Dare Wood Industry (Jiangsu) Co, Ltd | Jiangsu Provincial Department of Ecology and Environment --- Enterprise Environmental Information Disclosure System | Social Responsibility The company is committed to fulfilling its social responsibilities across various stakeholder and environmental aspects - The company has established a relatively complete corporate governance structure and internal control system to protect the legitimate rights and interests of all shareholders and actively implements a cash dividend policy[71] - The company strictly abides by the "Labor Law," focuses on talent cultivation, continuously improves the working environment for employees, and values employee training, well-being, and work-life balance[72] - The company adheres to a business philosophy of mutual benefit with suppliers and customers, values supplier management, establishes long-term strategic partnerships with customers, and provides high-quality products and services based on consumer needs[72] - The company consistently integrates the construction of a resource-saving and environmentally friendly enterprise into its green development strategy, continuously increasing environmental protection investment and reducing environmental impact through technological upgrades and energy conservation[72] - While achieving steady development and economic benefits, the company actively participates in social welfare, donating to education and poverty alleviation to give back to society[73] Significant Matters Commitments No commitments were fulfilled or overdue by the company or its related parties during the reporting period - During the reporting period, there were no commitments fulfilled or overdue by the company's actual controller, shareholders, related parties, acquirers, or the company itself[75] Fund Occupation and Irregular Guarantees The company reports no non-operating fund occupation by controlling shareholders or irregular external guarantees - During the reporting period, there was no non-operating occupation of funds of the listed company by the controlling shareholder or other related parties[76] - The company had no irregular external guarantees during the reporting period[77] Auditor Information The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[78] - The Board of Directors and the Board of Supervisors have no comments on any "non-standard audit report" for the current reporting period[79] - The Board of Directors has no comments on any "non-standard audit report" from the previous year[79] Bankruptcy Reorganization and Litigation Matters The company had no bankruptcy reorganizations or major litigation during the reporting period - The company had no bankruptcy reorganization matters during the reporting period[79] - The company had no major litigation or arbitration matters during the reporting period[80] Penalties and Rectifications The company reports no penalties or rectifications during the period - The company had no penalties or rectifications during the reporting period[81] Integrity Status The company and its controlling shareholders maintained a good integrity status during the reporting period - During the reporting period, the integrity status of the company, its controlling shareholder, and its actual controller was good, with no unfulfilled court judgments or large overdue debts[82] Major Related-Party Transactions The company engaged in several routine related-party transactions for procurement and sales, all within approved limits Related-Party Transactions for Purchase and Sale of Goods, Provision and Receipt of Services (Purchases) | Related Party | Transaction Content | Current Period Amount (Ten Thousand Yuan) | Approved Transaction Limit (Ten Thousand Yuan) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Meishi Integrated Home Co, Ltd | Purchase of walk-in closets | 1,311.70 | 5,000 | No | | Jiangsu Heya Wooden Door Co, Ltd | Purchase of wooden doors | 1,160.65 | 5,000 | No | | Fujian Kunpeng Supply Chain Management Co, Ltd | Transportation services | 932.90 | 3,000 | No | | Dare Integrated Smart Home (Fujian) Co, Ltd | Purchase of wooden doors, wardrobes, cabinets | 1.33 | 130 | No | Related-Party Transactions for Purchase and Sale of Goods, Provision and Receipt of Services (Sales) | Related Party | Transaction Content | Current Period Amount (Ten Thousand Yuan) | | :--- | :--- | :--- | | Dare Smart Home (Fujian) Co, Ltd | Sales of flooring and accessories | 2,191.44 | | Jiangsu Dare New Packaging Materials Co, Ltd | Sales of steam | 143.37 | | Dare Wheel Manufacturing Co, Ltd | Sales of steam | 32.00 | | Jiangsu Dare Filter Material Co, Ltd | Sales of steam | 13.03 | | Dare Smart Home (Fujian) Co, Ltd | Trademark usage fee | 8.31 | - The company's wholly-owned subsidiary, Power Dekor Group Co, Ltd, signed a "Trademark Licensing Agreement" with Dare Smart Home (Fujian) Co, Ltd, allowing Dare Smart Home to use the "Power Dekor" trademark in its business activities for a fee of 0.1% of the annual sales revenue of products using the licensed trademark[93] Major Contracts and Their Performance A major lease agreement expired and was not renewed, while the company provided a guarantee for a subsidiary and engaged in wealth management - During the reporting period, the "Enterprise Lease and Operation Agreement" between the wholly-owned subsidiary Dare Wood Based Panel Group Co, Ltd and Huizhou Shengyi Wood Industry Co, Ltd expired and was not renewed by mutual agreement[96] Company Guarantees for Subsidiaries | Guaranteed Party | Guarantee Limit (Ten Thousand Yuan) | Actual Guarantee Amount (Ten Thousand Yuan) | Guarantee Type | Guarantee Period | Completed | | :--- | :--- | :--- | :--- | :--- | :--- | | Power Dekor Group Co, Ltd | 15,000 | 15,000 | Joint and several liability | 5 years | No | Entrusted Wealth Management | Type | Source of Funds | Amount (Ten Thousand Yuan) | Outstanding Balance (Ten Thousand Yuan) | Overdue Unrecovered Amount (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 20,000 | 20,000 | 0 | | Brokerage Wealth Management Products | Own funds | 42,000 | 42,000 | 0 | | Total | | 62,000 | 62,000 | 0 | Explanation of Other Significant Matters The company disclosed several significant matters, including shareholding changes, financial reports, and investment activities - The share reduction plan of the company's directors and senior management has been completed[102] - The company disclosed its 2024 annual performance forecast, annual report, and profit distribution plan[102] - The company released the "Dare Power Dekor Home Co, Ltd Valuation Enhancement Plan"[102] - The company participated in subscribing to investment fund shares[103] Significant Matters of Company Subsidiaries Subsidiaries of Power Dekor Group established new entities to expand business in new materials, home goods, and flooring - A subsidiary of Power Dekor Group, Fujian Huayu Group Co, Ltd, established a new subsidiary, Fujian Jinou Bamboo Material Innovation Center Co, Ltd, with a registered capital of 10 million RMB and a 51% stake, focusing on new material R&D and bamboo product manufacturing and sales[104] - A subsidiary of Power Dekor Group, Power Dekor Industrial (Jiangsu) Co, Ltd, established two new wholly-owned subsidiaries, Xiangwangjia Home (Changzhou) Co, Ltd and Xuzhou Xiangwangjia Home Co, Ltd, each with a registered capital of 2 million RMB, to engage in home goods and wood product sales[104] - A subsidiary of Power Dekor Group, Fujian Power Dekor Wood Industry Co, Ltd, established a new wholly-owned subsidiary, Power Dekor Shengjia Home (Fujian) Co, Ltd, with a registered capital of 30 million RMB, to manufacture and sell home goods, wood, and bamboo products[105] Changes in Share Capital and Shareholders Changes in Share Capital The company's total share capital remained unchanged, with a shift from restricted to unrestricted shares due to a senior manager's share reduction Share Capital Changes | Share Type | Before Change (Shares) | Before Change (%) | Change (+, -) (Shares) | After Change (Shares) | After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 280,500 | 0.05% | -67,500 | 213,000 | 0.04% | | II. Unrestricted Shares | 547,117,000 | 99.95% | 67,500 | 547,184,500.00 | 99.96% | | III. Total Shares | 547,397,500 | 100.00% | 0 | 547,397,500 | 100.00% | - The share change was caused by the reduction of 90,000 shares by director and senior manager Mr Chen Gang through centralized bidding, resulting in a decrease of 67,500 restricted management shares and an increase of 67,500 unrestricted shares, with no change in the total share capital[109] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Start of Period (Shares) | Restricted Shares Released This Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Chen Gang | 270,000 | 67,500 | 202,500 | Management Lock-up | | Zhu Zhigang | 10,500 | 0 | 10,500 | Management Lock-up | | Total | 280,500 | 67,500 | 213,000 | | Securities Issuance and Listing The company did not issue or list any securities during the reporting period - The company had no securities issuance or listing during the reporting period[112] Number of Shareholders and Shareholding Status The company had 17,568 common shareholders at the period end, with the controlling shareholder's stake being pledged - At the end of the reporting period, the total number of common shareholders was 17,568[113] Shareholding of Shareholders with over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period End (Shares) | Unrestricted Shares Held (Shares) | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dare Technology Group Co, Ltd | Domestic Non-State-Owned Legal Entity | 46.44% | 254,200,800 | 254,200,800 | Pledged | 189,000,000 | | Gao Sheng'er | Domestic Natural Person | 4.79% | 26,200,000 | 26,200,000 | N/A | 0 | | Xin Hong | Domestic Natural Person | 3.38% | 18,525,600 | 18,525,600 | N/A | 0 | | Zhu Huixin | Domestic Natural Person | 2.25% | 12,343,200 | 12,343,200 | N/A | 0 | | Beijing Taidesheng Private Equity Fund Management Co, Ltd - Taidesheng Investment Delai No 3 Private Securities Investment Fund | Other | 2.19% | 12,000,020 | 12,000,020 | N/A | 0 | - Among the shareholders listed above, the largest shareholder, Dare Technology Group Co, Ltd, has no relationship with the other shareholders and is not considered a party acting in concert under the "Measures for the Administration of the Takeover of Listed Companies"[114] - Natural person shareholders Gao Sheng'er, Xin Hong, Ding Jun, Wu Qinbo, Xie Lin, and Li Jian hold some of their shares through investor credit securities accounts[115] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of directors, supervisors, and senior management during the period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period; for details, please refer to the 2024 annual report[116] 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[117] - The company's actual controller did not change during the reporting period[117] Preferred Stock Information The company had no preferred stock during the reporting period - The company had no preferred stock during the reporting period[118] Bond-related Matters Bond-related Matters The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[120] Financial Report Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report is unaudited[122] Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2025 Company Basic Information Dare Power Dekor Home Co, Ltd was listed on the Shenzhen Stock Exchange in 1999 and operates in the decorative materials industry - Dare Power Dekor Home Co, Ltd publicly issued shares on March 23, 1999, and was listed on the Shenzhen Stock Exchange on June 30, 1999, with the stock code "000910"[149] - As of June 30, 2025, the company's share capital was 547.40 million yuan[150] - The company's business scope includes R&D of new decorative materials, manufacturing and sales of various types of flooring, fiberboard, and particleboard, and import/export of various goods and technologies[150] Basis of Preparation of Financial Statements The financial statements are prepared in accordance with Chinese Accounting Standards on a going concern basis - These financial statements are prepared in accordance with the "Enterprise Accounting Standards - Basic Standard" and other specific accounting standards issued by the Ministry of Finance, as well as relevant regulations from the China Securities Regulatory Commission[151] - These financial statements are prepared on a going concern basis[152] Significant Accounting Policies and Estimates This section details the company's specific accounting policies for key areas such as revenue recognition, financial instruments, and fixed assets - The company's operating cycle is 12 months, and it uses the Renminbi (RMB) as its functional currency[156][157] - Financial assets are classified at initial recognition as: financial assets at amortized cost, financial assets at fair value through other comprehensive income, and financial assets at fair value through profit or loss[172] - Inventories are valued using the weighted average method upon dispatch and are accounted for under a perpetual inventory system[189][190] - Long-term equity investments in subsidiaries are accounted for using the cost method, while investments in associates and joint ventures are accounted for using the equity method[200] - Fixed assets are depreciated using the straight-line method over their estimated useful lives, with depreciation rates determined based on asset category, useful life, and estimated residual value[206] - The company recognizes revenue when it has fulfilled its performance obligations in a contract, i.e, when the customer obtains control of the relevant goods or services[235] - Government grants are recognized when the company can meet the conditions attached to them and is able to receive them[243] - At the commencement date of a lease, the company recognizes a right-of-use asset and a lease liability for all leases except for short-term leases and leases of low-value assets[249] Taxes The company is subject to various taxes, with several subsidiaries benefiting from preferential tax rates for high-tech enterprises and resource utilization Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | The output tax is calculated based on the sales revenue of goods and taxable services as stipulated by tax law, and after deducting the allowable input tax for the current period, the difference is the VAT payable | 13%, 9%, 6%, 5%, 3%, 1% | | Consumption Tax | Levied on taxable sales revenue | 5% | | Urban Maintenance and Construction Tax | Levied on the actual amount of VAT and consumption tax paid | 7%, 5% | | Corporate Income Tax | Levied on taxable income | 15%, 25% | - Several subsidiaries, including Dare Wood Based Panel Group Co, Ltd and Dare (Jiangsu) Flooring Co, Ltd, have passed the high-tech enterprise review and are subject to a preferential corporate income tax rate of 15%[262][263] - According to relevant regulations, subsidiaries like Dare Wood Based Panel Group Co, Ltd, which use resources specified in the "Catalogue of Corporate Income Tax Incentives for Comprehensive Resource Utilization" as primary raw materials, can calculate their taxable income by reducing their revenue by 10%[263] - The company benefits from a VAT refund policy of 90% for the production of fiberboard and particleboard using agricultural and forestry residues as raw materials[264] Notes to Consolidated Financial Statement Items This section details key items in the consolidated financial statements, including assets, liabilities, revenues, and expenses - The closing balance of cash and cash equivalents was 2.61 billion yuan, of which 204.39 million yuan was restricted due to pledges, collateral, or freezes[266] - The closing balance of trading financial assets was 729.41 million yuan, a decrease of approximately 300 million yuan from the beginning of the period[269] - The carrying amount of accounts receivable at the end of the period was 1.53 billion yuan, with a total bad debt provision of 264.91 million yuan[272] - The carrying amount of inventories at the end of the period was 1.94 billion yuan, with a total provision for inventory write-down and contract fulfillment cost impairment of 30.98 million yuan[305] - The closing balance of construction in progress was 41.16 million yuan, primarily for the Guangxi aluminum plate and strip project (39.93 million yuan)[322] - The original carrying amount of goodwill at the end of the period was 206.86 million yuan, with an accumulated impairment provision of 18.38 million yuan[331][333] - The closing balance of short-term borrowings was 50.85 million yuan, an increase from 36.85 million yuan at the beginning of the period[348] - The closing balance of contract liabilities was 501.95 million yuan, an increase of approximately 70 million yuan from 430.99 million yuan at the beginning of the period[359] - Operating revenue for the period was 2.10 billion yuan, and operating cost was 1.53 billion yuan[381] - R&D expenses incurred during the period amounted to 42.68 million yuan, all of which was expensed[424] - Net cash flow from operating activities was -31.17 million yuan, while net cash flow from investing activities was 191.79 million yuan[415] R&D Expenditures Total R&D expenditure was 42.68 million yuan, fully expensed, reflecting continued investment in innovation R&D Expenditure Composition | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 15,182,581.24 | 22,520,853.84 | | Experimental Materials | 20,161,152.93 | 24,597,495.46 | | Energy Costs | 2,384,929.35 | 2,863,933.68 | | Depreciation and Amortization | 2,949,387.15 | 3,622,201.16 | | Other Expenses | 1,999,160.11 | 1,484,437.85 | | Total | 42,677,210.78 | 55,088,921.99 | | Of which: Expensed R&D | 42,677,210.78 | 55,088,921.99 | | Capitalized R&D | 0.00 | 0.00 | - Total R&D expenditure for the current period was 42,677,210.78 yuan, all of which was expensed and not capitalized[424] Changes in the Scope of Consolidation The scope of consolidation expanded with the establishment of four new subsidiaries by a parent subsidiary - There were no transactions or events that resulted in the loss of control over subsidiaries during this period[425] - A subsidiary of Power Dekor Group, Fujian Huayu Group Co, Ltd, established a new subsidiary, Fujian Jinou Bamboo Material Innovation Center Co, Ltd, with a registered capital of 10 million RMB and a 51% stake[425] - A subsidiary of Power Dekor Group, Power Dekor Industrial (Jiangsu) Co, Ltd, established two new wholly-owned subsidiaries, Xiangwangjia Home (Changzhou) Co, Ltd and Xuzhou Xiangwangjia Home Co, Ltd, each with a registered capital of 2 million RMB[425] - A subsidiary of Power Dekor Group, Fujian Power Dekor Wood Industry Co, Ltd, established a new wholly-owned subsidiary, Power Dekor Shengjia Home (Fujian) Co, Ltd, with a registered capital of 30 million RMB[425] Interests in Other Entities The company's interests include numerous subsidiaries, with details provided for significant non-wholly-owned entities - The company has numerous wholly-owned and controlled subsidiaries, with business activities covering the manufacturing of high-end composite engineered flooring, R&D and production of medium/high-density fiberboard, wood processing, and sales of wood-based panels and flooring[427][428][429] Key Financial Information of Significant Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Interest Ratio | Profit/Loss Attributable to Minority Shareholders (Yuan) | Dividends Declared to Minority Shareholders (Yuan) | Minority Interest Balance at Period End (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Fujian Huayu Group Co, Ltd | 10.00% | 9,057,268.09 | 0.00 | 124,774,713.77 | Summarized Financial Information of Insignificant Joint Ventures and Associates | Item | Period-End Balance / Current Period Amount (Yuan) | | :--- | :--- | | Associates: Total carrying amount of investments | 2,968,473.68 | | --Net profit | -51.71 | | --Total comprehensive income | -51.71 | Government Grants The company received various government grants, primarily related to VAT refunds and enterprise support funds Liability Items Involving Government Grants | Account | Opening Balance (Yuan) | New Grants (Yuan) | Included in Non-operating Income (Yuan) | Transferred to Other Income (Yuan) | Closing Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 71,050,740.16 | 0 | 0 | 2,188,230.00 | 68,862,510.16 | Asset-related | Asset-Related Government Grants Included in Current Profit or Loss | Balance Sheet Item | Grant Amount (Yuan) | Amount Included in Current Profit/Loss or Offset Against Costs (Yuan) | | :--- | :--- | :--- | | Special funds for exhaust gas treatment, pollution control, and energy conservation | 520,000.00 | 25,999.98 | | 2017 industrial development and laser industry development funds | 7,260,000.00 | 363,000.00 | | Construction support funds | 71,969,200.00 | 1,799,230.02 | | Total | 80,309,200.00 | 2,188,230.00 | Income-Related Government Grants Included in Current Profit or Loss | Profit/Loss Item | Grant Amount (Yuan) | Current Period Amount (Yuan) | | :--- | :--- | :--- | | VAT refund | 32,377,244.64 | 32,377,244.64 | | Enterprise support funds | 15,449,325.69 | 15,449,325.69 | | VAT additional deduction | 2,328,719.58 | 2,328,719.58 | | Total | 50,155,289.91 | 50,155,289.91 | Risks Related to Financial Instruments The company manages credit, liquidity, and market risks through diversified investments and monitoring financial exposures - In its operations, the company faces various financial risks: credit risk, liquidity risk, and market risk (including foreign exchange risk, interest rate risk, and other price risks)[441] - The company assesses customer creditworthiness and sets credit terms by evaluating their financial status and credit history, and regularly monitors customer credit records to control credit risk exposure[442] - The company's finance department manages liquidity risk by monitoring cash balances, readily marketable securities, and rolling 12-month cash flow forecasts to ensure sufficient funds to meet debt obligations[443] - The company determines the proportion of fixed-rate and floating-rate instruments based on market conditions and manages interest rate risk through regular reviews and monitoring of an appropriate portfolio mix[445] - The company continuously monitors the scale of foreign currency transactions, assets, and liabilities to minimize foreign exchange risk, and may enter into forward foreign exchange contracts or currency swap contracts[446] - The company's foreign exchange risk primarily arises from financial assets and liabilities denominated in US dollars[447] Related Parties and Related-Party Transactions The company engaged in various related-party transactions for sales, purchases, and services, all within approved limits - The company's parent is Dare Technology Group Co, Ltd, with a 46.44% shareholding, and the ultimate controlling parties are Chen Jianjun, Chen Qiaoling, Zhang Jingjing, and Dai Pin'ai[450] - The company has numerous other related parties, primarily subsidiaries of Dare Technology Group Co, Ltd[452][453] Related-Party Transactions for Purchase and Sale of Goods, Provision and Receipt of Services (Purchases) | Related Party | Transaction Content | Current Period Amount (Yuan) | Approved Transaction Limit (Yuan) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Meishi Integrated Home Co, Ltd | Purchase of walk-in closets | 13,117,010.09 | 50,000,000.00 | No | | Jiangsu Heya Wooden Door Co, Ltd | Purchase of wooden doors | 11,606,514.56 | 50,000,000.00 | No | | Fujian Kunpeng Supply Chain Management Co, Ltd | Transportation services | 9,329,044.75 | 30,000,000.00 | No | Related-Party Transactions for Purchase and Sale of Goods, Provision and Receipt of Services (Sales) | Related Party | Transaction Content | Current Period Amount (Yuan) | | :--- | :--- | :--- | | Dare Smart Home (Fujian) Co, Ltd | Sales of flooring and accessories | 21,914,398.89 | | Jiangsu Dare New Packaging Materials Co, Ltd | Sales of steam | 1,433,677.06 | | Dare Wheel Manufacturing Co, Ltd | Sales of steam | 320,028.45 | - Key management personnel compensation for the current period was 1,409,169.36 yuan[461] - At the end of the period, there were multiple outstanding balances with related parties, including accounts receivable, prepayments, other receivables, accounts payable, contract liabilities, and other current liabilities[462][463] Commitments and Contingencies The company reports no significant commitments or contingencies at the end of the period - The company's commitments have not changed; for details, please refer to the 2024 annual report[464] - The company had no significant contingencies existing at the balance sheet date[465] - The company has no significant contingencies that require disclosure[466] Post-Balance Sheet Events No significant events occurred after the balance sheet date that require disclosure - There are no other post-balance sheet events to report[468] Other Significant Matters No other significant matters were reported during the period - There are no other significant matters in this reporting period[468] Notes to Key Items in the Parent Company's Financial Statements The parent company's financial notes detail receivables, long-term equity investments, and investment income - The parent company's accounts receivable had a closing balance of 0 yuan, compared to 3,002,682.01 yuan at the beginning of the period[470] - The parent company's other receivables had a closing balance of 1.04 billion yuan, primarily consisting of fund transfers to subsidiaries[476][489] - The parent company's long-term equity investments had a closing carrying value of 3.08 billion yuan, mainly representing investments in subsidiaries[491] - The parent company's investment income for the period was 2.58 million yuan, primarily from the disposal of trading financial assets[495] Supplementary Information This section provides supplementary data, including details on non-recurring items and key financial ratios Detailed Schedule of Non-recurring Gains and Losses for the First Half of 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses on disposal of non-current assets | -6,576,579.23 | | Government grants included in current profit or loss | 15,449,325.69 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and investment income from the disposal of such assets and liabilities, excluding effective hedging activities related to normal business operations | 2,576,134.37 | | Other non-operating income and expenses not listed above | -1,380,044.17 | | Less: Income tax effect | 2,899,160.03 | | Minority interest effect (after tax) | 857,815.58 | | Total | 6,311,861.05 | Return on Equity and Earnings Per Share | Reporting Period Profit | Weighted Average Return on Equity | Basic Earnings Per Share (Yuan/Share) | Diluted Earnings Per Share (Yuan/Share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | 0.53% | 0.07 | 0.07 | | Net profit attributable to common shareholders after deducting non-recurring gains and losses | 0.43% | 0.05 | 0.05 | - The company has no differences in net profit and net assets between financial reports disclosed simultaneously under international accounting standards and Chinese accounting standards[500] Other Submitted Data Other Major Social Safety Issues The company and its subsidiaries had no major social safety issues or administrative penalties during the period - The listed company and its subsidiaries have no other major social safety issues[503] - No administrative penalties were received during the reporting period[503] Record of Investor Relations Activities The company held an online performance briefing to communicate with investors during the reporting period - On April 14, 2025, the company held its 2024 annual online performance briefing via the "Investor Relations Interactive Platform" on p5w.net to communicate with investors[503]