河化股份(000953) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides the important notice, outlines the report structure, lists reference documents, and defines key terms for clarity Important Notice The Board and management guarantee report accuracy, cautioning that future plans are not commitments and no dividends or bonus shares are planned - The company's Board of Directors and management commit to the report's authenticity, cautioning that future plans do not constitute substantial commitments, and investors should be aware of risks[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents The report's clear nine-chapter structure covers company operations, finance, governance, and significant matters for investor review - The report directory has a clear structure, comprising nine chapters covering company operations, finance, governance, and significant matters[7] Reference Documents This section lists the half-annual report, financial statements, and other disclosed documents available at the Board Secretary's office - Reference documents include the half-annual report signed by the legal representative, financial statements, designated newspaper disclosure documents, original announcements, and other half-annual reports disclosed in the securities market, stored at the Board Secretary's office[9][10][11][13] Definitions Key terms like company name, related parties, regulatory bodies, and reporting period are defined to ensure accurate information understanding - The report defines key terms including the company, major related parties (such as Yinyi Holdings, Hehua Group, Nansong Pharmaceutical), regulatory bodies (CSRC, SZSE), and the reporting period (January 1, 2025, to June 30, 2025)[14] Company Profile and Key Financial Indicators This section introduces the company's basic information and presents its key accounting data and financial performance indicators Company Profile Guangxi Hechi Chemical Co., Ltd. (stock code: 000953) is listed on the SZSE, with no changes in contact or disclosure information during the period Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Hehua Shares | | Stock Code | 000953 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Shi Weiguang | - The company's contact information, registered address, information disclosure, and storage locations remained unchanged during the reporting period, refer to the 2024 annual report[18][19] Key Accounting Data and Financial Indicators Operating revenue decreased by 37.02%, but net profit attributable to shareholders increased by 45.56%, driven by improved management, bad debt reversal, and reduced financial expenses Key Accounting Data and Financial Indicators (2025 H1 vs 2024 H1) | Indicator | Current Period (yuan) | Prior Year Same Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 80,830,352.34 | 128,338,506.53 | -37.02% | | Net Profit Attributable to Listed Company Shareholders | 3,838,166.93 | 2,636,778.47 | 45.56% | | Net Profit Attributable to Listed Company Shareholders Excluding Non-Recurring Items | 3,634,259.17 | 2,540,904.38 | 43.03% | | Net Cash Flow from Operating Activities | 30,430,768.82 | -3,120,846.31 | 1,075.08% | | Basic Earnings Per Share (yuan/share) | 0.0105 | 0.0072 | 45.83% | | Diluted Earnings Per Share (yuan/share) | 0.0105 | 0.0072 | 45.83% | | Weighted Average Return on Net Assets | 2.61% | 3.86% | -1.25% | | Period-End Indicators | Current Period-End (yuan) | Prior Year-End (yuan) | Current Period-End vs Prior Year-End Change | | Total Assets | 284,338,597.60 | 332,938,240.48 | -14.60% | | Net Assets Attributable to Listed Company Shareholders | 149,595,820.02 | 145,039,259.79 | 3.14% | Non-Recurring Gains and Losses Non-recurring gains and losses totaled 203,907.76 yuan, primarily from government grants, offset by non-current asset disposal losses and other non-operating expenses Non-Recurring Gains and Losses Items and Amounts (Unit: yuan) | Item | Amount | Explanation | | :--- | :--- | :--- | | Non-current asset disposal gains and losses | -23,140.91 | Disposal of fixed assets | | Government grants recognized in current profit or loss | 301,723.30 | Recognition of industrial informatization special equipment support funds, self-generated electricity subsidies, and individual income tax refunds from the Economic and Information Commission | | Other non-operating income and expenses apart from the above | -14,992.43 | Fines and late payment fees | | Less: Income tax impact | 42,629.43 | | | Minority interest impact (after tax) | 17,052.77 | | | Total | 203,907.76 | | Management Discussion and Analysis This section details the company's main businesses, core competencies, operational performance, asset and liability status, and risk management strategies Main Businesses During the Reporting Period The company primarily engages in R&D, production, and sales of pharmaceutical intermediates and urea toll processing, leveraging strong R&D and market channels - The company's main businesses are pharmaceutical intermediate R&D, production, sales, and urea toll processing sales[28] - The pharmaceutical intermediate business is managed by its subsidiary, Nansong Pharmaceutical, with products including anti-malarial, progestin, and nutrient drug intermediates, sold in both domestic and international markets, possessing full R&D, procurement, production, and sales capabilities[29][30][31][32] - The urea business is conducted through toll processing by its subsidiary, Hehua Bio, utilizing the "Qunshan" brand reputation and established sales network, allowing flexible adjustments to operational scale based on market demand[33] Core Competitiveness Analysis The company's core strengths include high market share in specific pharmaceutical intermediates, strong customer relationships, advanced R&D, robust EHS management, and unique production capabilities - Nansong Pharmaceutical holds significant market advantage and absolute market share in the hydroxychloroquine side chain and chloroquine side chain niche production fields[35] - The company possesses a long-term cooperative high-end customer base, with high customer recognition and dependence, providing a solid foundation for business development[36] - Nansong Pharmaceutical continuously invests in technical R&D, possessing advanced synthesis routes, mature reaction technologies, and extensive process control experience, forming strong technical barriers[37] - The company's EHS management is integrated throughout all processes, promoting green production, with excellent product quality; its chloroquine side chain and hydroxychloroquine side chain products have received national and municipal honors, establishing a good reputation[38] - Nansong Pharmaceutical operates five production workshops, including a flexible pilot plant and a newly constructed seventh workshop, possessing unique and comprehensive equipment advantages capable of meeting commercial production needs for various products[40] - The company possesses three core process advantages: catalytic hydrogenation, amination reaction, and high-temperature high-vacuum distillation, technologies involving scarce qualifications and precise control capabilities[41] - The company's management and technical teams average over 20 years of experience in the pharmaceutical and chemical industry, with deep insights into industry technology, policies, and markets[42] Main Business Analysis Operating revenue decreased by 37.02% to 80.83 million yuan, while net profit attributable to shareholders increased by 45.56% to 3.84 million yuan, driven by management efficiency and reduced financial expenses - During the reporting period, the company's operating revenue was 80.83 million yuan, a 37.02% decrease year-on-year; net profit attributable to listed company shareholders was 3.84 million yuan, a 45.56% increase year-on-year[45] - Net profit growth primarily resulted from optimized management processes leading to increased per capita output, the reversal of bad debt provisions due to the collection of prior period sales, and a significant reduction in financial expenses due to the repayment of some loans[45] Operating Revenue Composition (2025 H1 vs 2024 H1) | Category | Item | Current Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Same Period Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Pharmaceutical Intermediate Industry | 41,174,559.88 | 50.94% | 58,399,831.78 | 45.50% | -29.50% | | | Chemical Industry | 39,594,878.27 | 48.99% | 69,905,673.96 | 54.47% | -43.36% | | By Product | Pharmaceutical Intermediates | 41,174,559.88 | 50.94% | 58,399,831.78 | 45.50% | -29.50% | | | Urea Products | 38,103,411.00 | 47.14% | 66,009,213.79 | 51.43% | -42.28% | | By Region | Domestic | 69,016,847.17 | 85.38% | 106,121,395.71 | 82.69% | -34.96% | | | Overseas | 11,813,505.17 | 14.62% | 22,217,110.82 | 17.31% | -46.83% | Key Financial Data Year-on-Year Changes (2025 H1 vs 2024 H1) | Indicator | Current Period (yuan) | Prior Year Same Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 80,830,352.34 | 128,338,506.53 | -37.02% | Urea product sales decreased due to drought in Guangxi; adjustment of pharmaceutical intermediate CDMO and chemical product production strategies | | Operating Cost | 67,689,759.65 | 109,047,669.84 | -37.93% | Decreased sales volume and optimized production strategies reduced costs | | Selling Expenses | 261,173.44 | 399,675.37 | -34.65% | Reduced exhibition expenses | | Administrative Expenses | 5,899,196.91 | 9,762,306.37 | -39.57% | Shutdown losses included in operating costs, reduced employee compensation | | Financial Expenses | 137,698.58 | 762,125.56 | -81.93% | Reduced interest expenses and exchange losses | | Income Tax Expense | 53,591.02 | 503,094.71 | -89.35% | Reduced deferred income tax | | Net Cash Flow from Operating Activities | 30,430,768.82 | -3,120,846.31 | 1,075.08% | Reduced prepayments for goods | | Net Cash Flow from Investing Activities | -612,262.50 | -9,893,457.09 | 93.81% | Reduced fixed asset investments | | Net Cash Flow from Financing Activities | -60,000,000.00 | -87,687.51 | -68,324.80% | Repayment of related party loans | | Net Increase in Cash and Cash Equivalents | -30,134,269.88 | -12,836,294.15 | -134.76% | Repayment of related party loans | Non-Main Business Analysis Non-main business activities impacted total profit, with credit impairment losses contributing positively, while asset impairment and non-operating expenses had negative effects, indicating non-sustainability Impact of Non-Main Business on Total Profit (Unit: yuan) | Item | Amount | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Asset impairment (losses filled with "-") | -607,299.83 | -14.23% | Inventory depreciation provision recognized in the reporting period | No | | Non-operating income | 1,007.57 | 0.02% | Income from penalty for breach of contract | No | | Non-operating expenses | 39,140.91 | 0.92% | Fixed asset disposal losses and penalty expenses | No | | Credit impairment losses (losses filled with "-") | 1,245,707.24 | 29.19% | Received prior period sales collections, reversing bad debt provisions accrued at prior year-end | No | Analysis of Assets and Liabilities Total assets decreased by 14.60% due to reduced monetary funds and accounts receivable, while inventory and contract liabilities increased, reflecting production and prepayment changes Significant Changes in Asset Composition (Unit: yuan) | Item | Current Period-End Amount | Proportion of Total Assets | Prior Year-End Amount | Proportion of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 59,102,790.58 | 20.79% | 89,237,060.46 | 26.80% | -6.01% | Primarily due to repayment of related party loans | | Accounts Receivable | 7,577,486.74 | 2.66% | 30,744,399.71 | 9.23% | -6.57% | Primarily due to collection of prior period sales during the reporting period | | Inventory | 44,317,698.78 | 15.59% | 34,745,004.23 | 10.44% | 5.15% | Primarily due to increased production of pharmaceutical intermediates during the reporting period, leading to increased inventory | | Fixed Assets | 137,873,539.66 | 48.49% | 145,826,911.92 | 43.80% | 4.69% | | | Contract Liabilities | 11,360,522.28 | 4.00% | 5,099,508.56 | 1.53% | 2.47% | Primarily due to increased prepayments for goods during the reporting period | Investment Analysis The company's investment amounted to 0.61 million yuan, a 64.69% decrease year-on-year, with no significant equity, non-equity, securities, or derivative investments Investment Amount During the Reporting Period | Indicator | Current Period Investment Amount (yuan) | Prior Year Same Period Investment Amount (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 614,542.50 | 1,740,587.76 | -64.69% | - The company had no securities investments, derivative investments, or use of raised funds, nor any significant equity or non-equity investments during the reporting period[58][59][60] Analysis of Major Holding and Participating Companies Key subsidiaries include Chongqing Nansong Pharmaceutical (pharmaceutical intermediates) and Guangxi Hehua Bio-Tech (fertilizer, feed, chemical wholesale), with their respective revenues and net profits detailed Major Subsidiary Financial Data (Unit: ten thousand yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chongqing Nansong Pharmaceutical Technology Co., Ltd. | Subsidiary | R&D, production, and sales of pharmaceutical intermediate products | 10,410.40 | 28,531.05 | 26,018.32 | 4,266.60 | 541.01 | 537.75 | | Guangxi Hehua Bio-Tech Co., Ltd. | Subsidiary | Wholesale and retail of fertilizers, feed, and chemical products | 500.00 | 1,885.01 | 1,432.23 | 3,810.34 | 53.64 | 50.86 | Risks Faced by the Company and Countermeasures The company faces risks from drug procurement policies, exchange rate fluctuations, market demand, EHS, and trade policies, addressed by quality improvement, R&D, and risk monitoring - Drug volume-based procurement policy risk: Policies may lead to lower pharmaceutical intermediate prices; the company responds by improving product quality, optimizing processes, reducing costs, and collaborating closely with downstream manufacturers to cope[63][64] - Exchange rate fluctuation risk: Export business is settled in foreign currency, and exchange rate fluctuations impact product price competitiveness; the company will enhance R&D to improve pricing power, monitor exchange rate trends, and flexibly use foreign exchange hedging tools[64] - Product market demand fluctuation risk: The anti-malarial drug intermediate chloroquine side chain may face order shrinkage due to drug resistance; the company will stabilize market share and strengthen new product R&D to mitigate the risk of old product decline[64] - Safety and environmental protection risks: Production processes involve flammable, explosive, and toxic substances, posing safety and environmental risks, and environmental protection costs may increase; the company will strengthen safety and environmental hazard investigations, employee education, enforcement of management systems, process optimization, and promote green production[65][66] - Trade policy change risk: Changes in import country policies, tariff adjustments, or trade frictions may weaken product competitiveness; the company will continuously monitor the international trade environment, improve risk prevention and control mechanisms, and make proactive adjustments[66][67] Corporate Governance, Environment, and Society This section covers changes in the company's directors, supervisors, and senior management, profit distribution plans, environmental information disclosure, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management The reporting period saw multiple changes in the company's Board Secretary, independent directors, and supervisors due to personal reasons, job transfers, and term expirations Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Qin Lifang | Board Secretary | Resignation | January 23, 2025 | Personal reasons | | Tan Honggao | Board Secretary | Appointment | January 23, 2025 | Job transfer | | Li Hongyi | Independent Director | Resignation | February 11, 2025 | Personal reasons | | Yang Zaibo | Independent Director | Election | February 11, 2025 | Job transfer | | Guo Yihao | Independent Director | Term expiration | July 21, 2025 | Re-election | | Xue Youbing | Independent Director | Term expiration | July 21, 2025 | Re-election | | Li Gang | Chairman of the Supervisory Board | Term expiration | July 21, 2025 | Re-election | | Wan Xinbo | Employee Supervisor | Term expiration | July 21, 2025 | Re-election | | Gui Jiemei | Supervisor | Term expiration | July 21, 2025 | Re-election | | Ye Zhifeng | Independent Director | Election | July 21, 2025 | Re-election | | Hou Chang | Independent Director | Election | July 21, 2025 | Re-election | Profit Distribution and Capital Reserve Conversion The company plans no cash dividends, bonus shares, or capital reserve conversions for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[71] Environmental Information Disclosure The company and its subsidiary, Chongqing Nansong Kaibo Biopharmaceutical Co., Ltd., are listed for environmental information disclosure, with reports available online - The company's subsidiary, Chongqing Nansong Kaibo Biopharmaceutical Co., Ltd., is included in the list of enterprises required to disclose environmental information by law[73] - The environmental information disclosure report can be accessed via the designated website[73] Social Responsibility The company actively fulfills social responsibilities by protecting stakeholder rights, ensuring employee welfare, maintaining fair supplier/customer relations, and prioritizing environmental protection and safety - The company protects shareholder and creditor rights by holding shareholder meetings in accordance with the law, actively disclosing information, and maintaining investor relations[74][75] - The company strictly adheres to labor laws, provides employee benefits and training, and prioritizes employee health and safety, protecting their rights[76] - The company establishes long-term cooperative relationships with suppliers and customers, optimizes procurement and sales processes, and ensures product quality to protect their rights[77] - The company emphasizes production safety and environmental protection, with stable operation of environmental facilities and all discharge indicators meeting industry standards[78] Significant Matters This section addresses the fulfillment of commitments, related party fund occupation, auditor appointments, litigation, integrity status, major related party transactions, and other significant corporate events Fulfillment of Commitments The company's actual controllers, shareholders, and related parties have fulfilled their commitments made during initial public offerings or refinancing, including not seeking control or increasing shareholdings - During the reporting period, He Jianguo, He Weiguo, Xu Baozhu, and other obligors have fulfilled their commitments, including not seeking actual control of the listed company and not increasing shareholdings[80] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties The company had no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period - The company had no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[81] Appointment and Dismissal of Accounting Firms The company's half-annual financial report was not audited - The company's half-annual financial report was not audited[83] Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[86] Integrity Status of the Company, Controlling Shareholder, and Actual Controller Controlling shareholder Yinyi Holdings faced a liquidity crisis since 2019, entering a restructuring plan, which was approved and terminated by the Ningbo court in October 2024 - Controlling shareholder Yinyi Holdings has faced a liquidity crisis since 2019, submitting a restructuring application on June 14, 2019, which was accepted on December 19, 2019[87] - In October 2024, the Ningbo Intermediate People's Court ruled to approve the restructuring plan for Yinyi Group and seventeen other companies (including Yinyi Holdings) in a consolidated restructuring case, terminating the restructuring procedure, and Yinyi Holdings entered the restructuring plan execution phase[87] Major Related Party Transactions The company had no related party transactions for daily operations, asset/equity acquisition/disposal, or joint external investments, but had non-operating related party debt, totaling approximately 63.68 million yuan - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisition/disposal, or joint external investments[88][89][90] Accounts Payable to Related Parties (Unit: ten thousand yuan) | Related Party | Related Relationship | Reason for Formation | Beginning Balance | Amount Repaid in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Yinyi Holdings Co., Ltd. | Controlling Shareholder | Related party loan | 11,580.62 | 6,000 | 5,606.39 | | Guangxi Yinyi Technology Materials Co., Ltd. | Controlling Shareholder's Related Party | Related party loan | 193 | 0 | 193 | | Guangxi Yinyi High-Tech R&D Co., Ltd. | Controlling Shareholder's Related Party | Related party loan | 564.07 | 0 | 569.03 | | Guangxi Hechi Chemical Industry Group Co., Ltd. | Shareholder holding over 5% | Related party current account | 109.8 | 0 | 109.8 | Explanation of Other Significant Matters The company plans to co-establish Shenzhen Pengyu Hongyuan Venture Capital Partnership with a 5 million yuan investment, and the controlling shareholder's equity transfer remains uncertain due to unpaid restructuring funds - The company plans to act as a limited partner, investing 5 million yuan of its own funds (45.45% stake) with a professional investment institution to jointly establish Shenzhen Pengyu Hongyuan Venture Capital Partnership (Limited Partnership); fund registration procedures are currently underway[101] - The cooperation intention for the transfer of 100% equity of controlling shareholder Yinyi Holdings has not taken effect because the restructuring investor has not paid the remaining third installment of restructuring funds totaling 352 million yuan; discussions are ongoing, and the final implementation remains uncertain[101][102] Share Changes and Shareholder Information This section details the company's share capital stability, shareholder numbers, and the holdings of its top ten shareholders, including any pledged shares Share Changes The company's total share capital remained unchanged at 366,122,195 shares, all of which are unrestricted tradable shares, during the reporting period Share Changes (Unit: shares) | Item | Quantity Before Change | Proportion | Increase/Decrease in This Change (＋,－) | Quantity After Change | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0.00% | 0 | 0 | 0.00% | | II. Unrestricted Shares | 366,122,195 | 100.00% | 0 | 366,122,195 | 100.00% | | III. Total Shares | 366,122,195 | 100.00% | 0 | 366,122,195 | 100.00% | - The company's total share capital remained unchanged during the reporting period, with no progress on share repurchases[106] Company Shareholder Numbers and Shareholding As of the reporting period end, the company had 42,683 common shareholders, with Ningbo Yinyi Holdings and Guangxi Hechi Chemical Industry Group as the top two, both with pledged shares - As of the end of the reporting period, the total number of common shareholders was 42,683[108] Top 10 Shareholders' Shareholding (Unit: shares) | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shareholding Quantity at Period-End | Quantity of Unrestricted Shares Held | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Yinyi Holdings Co., Ltd. | Domestic Non-State-Owned Legal Person | 23.76% | 87,000,000 | 87,000,000 | Pledged | 87,000,000 | | Guangxi Hechi Chemical Industry Group Co., Ltd. | State-Owned Legal Person | 10.24% | 37,493,589 | 37,493,589 | Pledged | 37,493,589 | | Wu Kebin | Domestic Natural Person | 0.57% | 2,084,900 | 2,084,900 | Not Applicable | 0 | | UBS AG | Overseas Legal Person | 0.48% | 1,769,496 | 1,769,496 | Not Applicable | 0 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Overseas Legal Person | 0.39% | 1,431,687 | 1,431,687 | Not Applicable | 0 | | Zhu Weijun | Domestic Natural Person | 0.37% | 1,340,700 | 1,340,700 | Not Applicable | 0 | | Li Zhiyang | Domestic Natural Person | 0.35% | 1,280,900 | 1,280,900 | Not Applicable | 0 | | Shenzhen Liren Culture Communication Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.35% | 1,263,800 | 1,263,800 | Not Applicable | 0 | | Goldman Sachs International - Proprietary Trading | Overseas Legal Person | 0.30% | 1,087,501 | 1,087,501 | Not Applicable | 0 | | Chen Yujia | Domestic Natural Person | 0.30% | 1,080,900 | 1,080,900 | Not Applicable | 0 | - The company is unaware of any related party relationships or parties acting in concert among the top ten shareholders[108] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder or actual controller during the reporting period[111] Bond-Related Information This section confirms that the company had no bond-related activities during the reporting period Bond-Related Information The company had no bond-related activities during the reporting period - The company had no bond-related activities during the reporting period[114] Financial Report This comprehensive section includes the audit report status, detailed financial statements, company basic information, accounting policies, tax details, and extensive notes on financial items and risks Audit Report The company's half-annual financial report was not audited - The company's half-annual financial report was not audited[116] Financial Statements This section presents the company's 2025 half-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity[117][121][125][129][132][136][137][143] Company Basic Information Guangxi Hechi Chemical Co., Ltd., established July 3, 1993, stock code 000953, specializes in urea and pharmaceutical intermediates, controlled by Ningbo Yinyi Holdings and ultimately by Mr. Xiong Xuqiang - The company name is Guangxi Hechi Chemical Co., Ltd., stock code 000953, established on July 3, 1993[151][152] - The company's main business is the R&D, production, and sales of urea products and pharmaceutical intermediates[151] - As of June 30, 2025, the company's total share capital was 366,122,195 shares, with Ningbo Yinyi Holdings Co., Ltd. as the controlling shareholder and Mr. Xiong Xuqiang as the ultimate controlling party[155] Basis for Preparation of Financial Statements Financial statements are prepared on a going concern basis, adhering to accounting standards and CSRC regulations, using accrual accounting and historical cost measurement, with no significant going concern doubts - Financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission[157] - Accounting is based on the accrual method, and all items are measured at historical cost, except for specific financial instruments[157] - The company evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts[158] Significant Accounting Policies and Estimates This section details the company's adherence to accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, financial instruments, revenue recognition, and various asset/liability accounting policies - The company adheres to enterprise accounting standards, with the accounting year being the calendar year, an operating cycle of 12 months, and the functional currency being RMB[160][161][162][163] - Detailed accounting treatments for business combinations under common control and non-common control, and principles for preparing consolidated financial statements, are specified[166][167][171] - Financial instruments are classified as debt or equity, with subsequent measurement depending on business model and cash flow characteristics, and detailed accounting for financial asset impairment and derivative instruments[181][182][183][185] - Revenue recognition is based on the fulfillment of performance obligations, categorized by fulfillment over time or at a point in time, with specific methods for chemical products and pharmaceutical intermediate sales[234][235][236] - Fixed assets are depreciated using the straight-line method over 5-45 years, with a residual value rate of 3-5%[216] Taxes The company's main taxes include VAT (6%, 9%, 13%), Urban Maintenance and Construction Tax (7%, 5%), Corporate Income Tax (5%, 15%, 25%), Education Surcharge (3%), and Local Education Surcharge (2%) Major Taxes and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Balance after deducting deductible input tax from output tax | 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7%, 5% | | Corporate Income Tax | Taxable income | 5%, 15%, 25% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | - Chongqing Nansong Kaibo Biopharmaceutical Co., Ltd. enjoys a 15% corporate income tax preferential rate, and some subsidiaries qualify for small and micro-profit enterprise income tax benefits[253] Notes to Consolidated Financial Statement Items This section provides detailed explanations and changes for various consolidated financial statement items, including monetary funds, accounts receivable, inventory, operating revenue, financial expenses, and cash flows - Monetary funds at period-end were 59.10 million yuan, a 30.13 million yuan decrease from the beginning of the period, primarily due to repayment of related party loans[255] - Accounts receivable at period-end were 7.58 million yuan, a 23.17 million yuan decrease from the beginning of the period, primarily due to collection of prior period sales during the reporting period[271] - Inventory at period-end book value was 44.32 million yuan, a 9.57 million yuan increase from the beginning of the period, primarily due to increased production of pharmaceutical intermediates, leading to increased inventory[309] - Operating revenue was 80.83 million yuan, a 37.02% decrease year-on-year; operating cost was 67.69 million yuan, a 37.93% decrease year-on-year[398] - Financial expenses were 0.14 million yuan, a significant 81.93% decrease year-on-year, primarily due to reduced interest expenses and exchange losses in the current period[412] - Net cash flow from operating activities was 30.43 million yuan, a significant 1,075.08% increase year-on-year, primarily due to reduced prepayments for goods compared to the same period last year[435] Research and Development Expenses Total R&D expenses for the period were 2.60 million yuan, all expensed, representing a 6.27% decrease year-on-year, with major items including employee compensation and materials R&D Expense Details (Unit: yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Employee Compensation | 1,909,781.69 | 2,061,781.97 | | Materials | 132,687.43 | 106,148.16 | | Depreciation Expense | 350,681.05 | 404,640.52 | | Repair Expense | 83,974.06 | 73,313.92 | | Total | 2,600,766.81 | 2,774,733.88 | | Of which: Expensed R&D Expenditure | 2,600,766.81 | 2,774,733.88 | - All R&D expenses during the reporting period were expensed, with no capitalized R&D projects[449][451] Interests in Other Entities The company's main subsidiaries include Guangxi Hehua Bio-Tech (100%), Chongqing Nansong Pharmaceutical (93.41%), Chongqing Nansong Kaibo Biopharmaceutical (93.41% indirect), Ningbo Hehua Enterprise Management Consulting (100%), and Chongqing Songhe Trading (65.39%) Major Subsidiary Shareholding | Subsidiary Name | Registered Capital | Shareholding Ratio (Direct) | Shareholding Ratio (Indirect) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Guangxi Hehua Bio-Tech Co., Ltd. | 5,000,000.00 | 100.00% | | Establishment | | Chongqing Nansong Pharmaceutical Technology Co., Ltd. | 104,104,000.00 | 93.41% | | Business combination not under common control | | Chongqing Nansong Kaibo Biopharmaceutical Co., Ltd. | 120,000,000.00 | | 93.41% | Business combination not under common control | | Ningbo Hehua Enterprise Management Consulting Co., Ltd. | 100,000.00 | 100.00% | | Establishment | | Chongqing Songhe Trading Co., Ltd. | 5,000,000.00 | 65.39% | | Establishment | Key Financial Information for Significant Non-Wholly Owned Subsidiary Chongqing Nansong Pharmaceutical Technology Co., Ltd. (Unit: yuan) | Indicator | Period-End Balance | Period-Beginning Balance | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | :--- | :--- | | Current Assets | 98,978,724.25 | 78,166,925.07 | | | | Non-Current Assets | 186,331,789.09 | 196,409,136.06 | | | | Total Assets | 285,310,513.34 | 274,576,061.13 | | | | Current Liabilities | 15,449,125.35 | 9,369,798.86 | | | | Non-Current Liabilities | 9,678,164.71 | 10,085,262.30 | | | | Total Liabilities | 25,127,290.06 | 19,455,061.16 | | | | Operating Revenue | | | 42,666,027.15 | 62,301,771.60 | | Net Profit | | | 5,377,490.73 | 5,282,612.54 | | Total Comprehensive Income | | | 5,377,490.73 | 5,282,612.54 | | Operating Cash Flow | | | 31,954,709.20 | -5,912,196.98 | Government Grants Deferred income from government grants totaled 8.23 million yuan at period-end, with 0.16 million yuan transferred to other income, and total government grants recognized in profit or loss amounting to 0.27 million yuan Liability Items Related to Government Grants (Unit: yuan) | Accounting Item | Beginning Balance | Amount Transferred to Other Income in Current Period | Ending Balance | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 8,381,334.71 | 155,590.76 | 8,225,743.95 | Asset-related | Government Grants Recognized in Profit or Loss (Unit: yuan) | Accounting Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Other Income | 267,779.72 | 299,255.24 | Risks Related to Financial Instruments The company faces market (foreign exchange, interest rate, other price), credit, and liquidity risks, managed through monitoring foreign currency transactions, credit assessments, and maintaining sufficient cash - The company's operations face market risks (foreign exchange risk, interest rate risk, other price risks), credit risk, and liquidity risk[466] - Foreign exchange risk: Overseas business is settled in USD; a 10% appreciation or depreciation of RMB against USD would impact net profit by approximately ±0.86 million yuan; the company mitigates risk by monitoring foreign currency transactions and the scale of foreign currency assets and liabilities[468] - Credit risk: Primarily arises from bank deposits, accounts receivable, other receivables, and notes receivable; the company controls credit risk by assessing customer creditworthiness, setting credit terms, and regularly monitoring credit records[469][470] - Liquidity risk: The company manages liquidity risk by maintaining sufficient cash and cash equivalents, monitoring bank loan utilization, and securing commitments for backup funds[471] Disclosure of Fair Value The company's investment in Xinxiang Zhongda Electronics Co., Ltd. is valued at 0 yuan due to long-term losses and business license revocation, with no continuous fair value measurements or changes during the period - The company's investment in Xinxiang Zhongda Electronics Co., Ltd. is recognized at 0 yuan fair value due to its long-term losses and revoked business license[478] - There were no continuous fair value measurement items, nor any transfers between levels or changes in valuation techniques during the reporting period[477][480] Related Parties and Related Party Transactions The company's parent is Ningbo Yinyi Holdings, ultimately controlled by Mr. Xiong Xuqiang. Related party transactions include electricity fees (4,057.30 yuan) and non-operating related party debt totaling 65.97 million yuan, with key management compensation at 0.64 million yuan - The company's parent company is Ningbo Yinyi Holdings Co., Ltd., and the ultimate controlling party is Mr. Xiong Xuqiang[480] Related Party Transactions for Purchase/Sale of Goods/Acceptance of Services (Unit: yuan) | Related Party | Related Transaction Content | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | :--- | | Hechi Xinyuan Investment Co., Ltd. | Electricity fees | 4,057.30 | 5,338.59 | Accounts Payable to Related Parties (Unit: yuan) | Item Name | Related Party | Period-End Book Balance | Period-Beginning Book Balance | | :--- | :--- | :--- | :--- | | Other Payables | Guangxi Hechi Chemical Industry Group Co., Ltd. | 1,097,953.23 | 1,097,953.23 | | Other Payables | Ningbo Yinyi Holdings Co., Ltd. | 56,063,958.89 | 115,806,299.12 | | Other Payables | Guangxi Yinyi High-Tech R&D Co., Ltd. | 5,690,275.05 | 5,640,701.14 | | Other Payables | Guangxi Yinyi Technology Materials Co., Ltd. | 1,929,963.70 | 1,929,963.70 | Key Management Personnel Compensation (Unit: yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Key Management Personnel Compensation | 636,548.83 | 962,812.16 | Commitments and Contingencies As of the balance sheet date, the company had no significant commitments or material contingent matters requiring disclosure - As of the balance sheet date, the company had no significant commitments[502] - The company had no material contingent matters requiring disclosure[503] Post-Balance Sheet Events After the balance sheet date, the company repaid 10 million yuan to Ningbo Yinyi Holdings on July 2, 2025, and a total of 7.63 million yuan to Guangxi Yinyi High-Tech R&D and Guangxi Yinyi Technology Materials on August 4, 2025 - After the balance sheet date, the company repaid 10 million yuan to Ningbo Yinyi Holdings Co., Ltd. on July 2, 2025[505] - On August 4, 2025, the company repaid a total of 7.63 million yuan to Guangxi Yinyi High-Tech R&D Co., Ltd. and Guangxi Yinyi Technology Materials Co., Ltd.[505] Other Significant Matters The controlling shareholder's restructuring plan is ongoing, potentially changing the actual controller, and an equity transfer remains uncertain due to unpaid restructuring funds - The restructuring plan of controlling shareholder Yinyi Holdings is still in progress, which may lead to a change in the company's actual controller, and there is uncertainty[513] - The cooperation intention for the equity transfer of Yinyi Holdings has not taken effect because the restructuring investor has not paid the remaining third installment of restructuring funds totaling 352 million yuan; discussions are ongoing, and the final implementation remains uncertain[514] Notes to Parent Company Financial Statement Items This section provides detailed notes for parent company financial statement items, including accounts receivable (1.27 million yuan, fully impaired), other receivables (0.63 million yuan), and long-term equity investments (245.62 million yuan) - Parent company accounts receivable at period-end were 1.27 million yuan, with full provision for bad debts, deemed difficult to recover[518][520] - Parent company other receivables at period-end were 0.63 million yuan, with most being long-aged, difficult-to-recover intercompany balances and project payments[530][536] - Parent company long-term equity investments at period-end book value were 245.62 million yuan, primarily including investments in Guangxi Hehua Bio-Tech Co., Ltd. and Chongqing Nansong Pharmaceutical Technology Co., Ltd[546][547] Supplementary Information This section provides supplementary details, including a non-recurring gains and losses statement (totaling 0.20 million yuan) and key financial ratios like weighted average ROE (2.61%) and basic EPS (0.0105 yuan/share) Non-Recurring Gains and Losses Details (Unit: yuan) | Item | Amount | Explanation | | :--- | :--- | :--- | | Non-current asset disposal gains and losses | -23,140.91 | Disposal of fixed assets | | Government grants recognized in current profit or loss | 301,723.30 | Recognition of industrial informatization special equipment support funds, self-generated electricity subsidies, and individual income tax refunds from the Economic and Information Commission | | Other non-operating income and expenses apart from the above | -14,992.43 | Fines and late payment fees | | Less: Income tax impact | 42,629.43 | | | Minority interest impact (after tax) | 17,052.77 | | | Total | 203,907.76 | | Net Asset Return Rate and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 2.61% | 0.0105 | 0.0105 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 2.47% | 0.0100 | 0.0100 | Other Submitted Data This section covers the absence of major social safety issues, details investor communication activities, and outlines related party fund movements Other Major Social Safety Issues The company and its subsidiaries had no other major social safety issues or administrative penalties during the reporting period - The company and its subsidiaries had no other major social safety issues or administrative penalties during the reporting period[559] Registration Form for Investor Relations Activities On May 20, 2025, the company hosted an online performance briefing for its 2024 annual and 2025 Q1 results on the Interactive Easy platform, engaging with investors Registration Form for Investor Relations Activities During the Reporting Period | Reception Time | Reception Location | Reception Method | Type of Reception Object | Reception Object | Main Content Discussed and Materials Provided | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | May 20, 2025 | Interactive Easy Platform | Online platform communication | Other | General investors participating in the company's 2024 Annual and 2025 Q1 Online Performance Briefing | Exchange on the company's 2024 Annual and 2025 Q1 performance | "Hehua Shares 2024 Annual and 2025 Q1 Online Performance Briefing Investor Activity Record Table" disclosed on Juchao Information Network | Fund Movements Between Listed Company and Controlling Shareholder/Other Related Parties The company had non-operating fund movements with Ningbo Hehua Enterprise Management Consulting Co., Ltd., with a period-end balance of 0.60 million yuan and no interest Fund Movements Between Listed Company and Controlling Shareholder/Other Related Parties (Unit: ten thousand yuan) | Counterparty Name | Nature of Movement | Beginning Balance | Amount Incurred in Current Period | Amount Repaid in Current Period | Ending Balance | Interest Income | Interest Expense | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Hehua Enterprise Management Consulting Co., Ltd. | Non-operating movement | 30 | 30 | 0 | 60 | 0 | 0 |