乐凯胶片(600135) - 2025 Q2 - 季度财报

Section 1 Definitions Definitions of Common Terms This chapter defines common terms used throughout the report, including company, controlling shareholder, actual controller, and subsidiaries, ensuring clear understanding of the report's content Definitions of Common Terms | Common Term | Meaning | | :--- | :--- | | Company, This Company, Lucky Film | Lucky Film Company Limited | | Controlling Shareholder, Lucky Group, China Lucky | China Lucky Group Corporation | | Actual Controller, CASC | China Aerospace Science and Technology Corporation | | Lucky Medical | Lucky Medical Technology Co., Ltd. | | Lucky Optoelectronics | Lucky Optoelectronics Materials Co., Ltd. | | Reporting Period | January-June 2025 | | Shareholders' Meeting | Lucky Film Company Limited Shareholders' Meeting | | Board of Directors | Lucky Film Company Limited Board of Directors | | CSRC | China Securities Regulatory Commission | | Exchange, SSE | Shanghai Stock Exchange | | Yuan | Unless otherwise specified, refers to RMB Yuan | Section 2 Company Profile and Key Financial Indicators I. Company Information This section outlines Lucky Film Company Limited's basic information, including its Chinese name, abbreviation, English name and abbreviation, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 乐凯胶片股份有限公司 | | Chinese Abbreviation | 乐凯胶片 | | English Name | Lucky Film Company Limited | | English Name Abbreviation | Lucky Film Co.,Ltd. | | Legal Representative | Wang Hongze | II. Contact Person and Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses, facilitating communication with investors and relevant parties Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhang Yongguang | No. 6 Lucky South Street, Baoding City, Hebei Province | 0312-7922692 | 0312-7922691 | stock@luckyfilm.com | | Securities Affairs Representative | Zhang Jun | No. 6 Lucky South Street, Baoding City, Hebei Province | 0312-7922692 | 0312-7922691 | stock@luckyfilm.com | III. Brief Introduction to Changes in Basic Information This section details the historical changes in the company's registered address and confirms no changes to the registered address, office address, website, or email during the reporting period - The company's registered address changed from No. 369 Chuangye Road, Baoding City, Hebei Province to No. 6 Jianye Road, Mancheng Economic Development Zone, Mancheng District, Baoding City, Hebei Province on March 30, 2020[16] - During the reporting period, there were no changes to the company's office address, website, or email address[16] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section discloses the company's chosen information disclosure newspaper, the website address for the semi-annual report, and the location where the semi-annual report is kept, confirming no changes during the reporting period - The company's chosen information disclosure newspaper is Securities Daily, and the semi-annual report is published on the Shanghai Stock Exchange website (http://www.sse.com.cn)[17](index=17&type=chunk) - The company's semi-annual report is kept at the company's Board of Directors Office, with no changes during the reporting period[17] V. Company Stock Overview This section provides basic information about the company's stock, including stock type, listing exchange, stock abbreviation, and stock code Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | 乐凯胶片 | 600135 | VII. Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue decreased by 15.97% year-on-year, with total profit, net profit attributable to listed company shareholders, and net profit after deducting non-recurring gains and losses all showing expanded losses, primarily due to declining sales volumes and reduced selling prices of some key products Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 643,586,281.25 Yuan | 765,871,458.71 Yuan | -15.97 | | Total Profit | -48,074,811.35 Yuan | -27,743,402.61 Yuan | N/A | | Net Profit Attributable to Listed Company Shareholders | -52,939,432.17 Yuan | -31,840,498.70 Yuan | N/A | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | -60,791,709.03 Yuan | -42,717,717.08 Yuan | N/A | | Net Cash Flow from Operating Activities | -102,762,749.76 Yuan | -30,867,197.29 Yuan | N/A | | Net Assets Attributable to Listed Company Shareholders (Period-end vs. Prior Year-end) | 2,418,336,123.60 Yuan | 2,469,423,818.55 Yuan | -2.07 | | Total Assets (Period-end vs. Prior Year-end) | 3,232,103,349.88 Yuan | 3,276,366,326.10 Yuan | -1.35 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.0957 | -0.0575 | N/A | | Diluted Earnings Per Share (Yuan/share) | -0.0957 | -0.0575 | N/A | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | -0.1099 | -0.0772 | N/A | | Weighted Average Return on Net Assets (%) | -2.1670 | -1.2847 | Decrease 0.8823 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -2.4885 | -1.7236 | Decrease 0.7649 percentage points | - Net profit attributable to listed company shareholders and net profit after deducting non-recurring gains and losses decreased year-on-year, primarily due to declining sales volumes and reduced selling prices of some key products, leading to a decrease in operating revenue[20] IX. Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses items and their amounts for the reporting period, totaling 7,852,276.86 Yuan, primarily including government grants and fair value changes in financial assets Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -204,175.45 | | Government grants recognized in current profit or loss | 4,010,070.41 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises and disposal gains and losses | 3,674,979.98 | | Other non-operating income and expenses | 84,147.94 | | Other gains and losses that meet the definition of non-recurring gains and losses | 1,342,768.52 | | Less: Income tax impact | 522,139.23 | | Minority interest impact (after tax) | 533,375.31 | | Total | 7,852,276.86 | Section 3 Management Discussion and Analysis I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period During the reporting period, the company focused on six major business segments—medical, imaging, photovoltaic, new energy, separation membranes, and cast optical films—in line with its '14th Five-Year Plan' strategic planning, building a comprehensive functional materials product system through technological innovation and product upgrades, with each industry segment experiencing varying development trends influenced by policies, market competition, and demand changes (I) Main Business Operations The company, with 'high-quality development' as its core objective, strategically focuses on six major business segments: medical materials, imaging materials, photovoltaic materials, new energy materials, separation membrane materials, and cast optical film materials, having established a product matrix including medical dry films, industrial radiographic films, color photographic paper, lithium-ion battery separators, aluminum-plastic films, non-woven separation membranes, polyolefin separation membranes, and TAC films - The company, guided by its '14th Five-Year' strategic development plan, focuses on 'high-quality development' as its core objective, strategically laying out six major business segments: medical materials, imaging materials, photovoltaic materials, new energy materials, separation membrane materials, and cast optical film materials[23] - The company has established a comprehensive functional materials product system, with a product matrix including medical dry films, industrial radiographic films, color photographic paper, lithium-ion battery separators, aluminum-plastic films, non-woven separation membranes, polyolefin separation membranes, and TAC films[23] (II) Industry Overview Each business sector faced distinct challenges and opportunities during the reporting period: the medical imaging market is transitioning to digitalization due to policy impacts; the imaging market sees strong demand for online printing; the photovoltaic industry experienced significant new installations but intense price competition; the lithium battery market saw substantial growth in power and energy storage battery shipments; the cast optical film market was affected by trade policies, yet TAC film for polarized glasses grew; and the water treatment separation membrane market showed robust development with accelerating domestic substitution - Medical Materials: Influenced by national medical insurance policies, digital medical imaging is rapidly emerging, while the market capacity for physical medical imaging films has significantly declined[23] - Imaging Materials: Demand in the professional portrait market continues to decline, while the civilian imaging market sees strong demand, with online printing becoming a trend; the company will develop its own e-commerce platform and post-processing for imaging products[23] - Photovoltaic Materials: China's new photovoltaic installed capacity grew over 100% year-on-year, but the industry incurred losses exceeding 18 billion Yuan, with intense price competition in silicon material and wafer segments, while auxiliary materials performed steadily[24] - Lithium Battery Materials: In the first half, China's lithium battery shipments grew by 68% year-on-year, with power batteries increasing by 49%, energy storage batteries by 128%, and 3C market consumption growing over 25%[24] - Cast Optical Film Materials: Affected by international trade policies, demand for consumer products in the end market decreased, but TAC film for polarized glasses saw growth, with new production lines expected to drive sales growth in the second half of the year[24] - Separation Membrane Materials: The water treatment market is experiencing development opportunities, with separation membranes as a key technology, accelerating domestic substitution[25] II. Discussion and Analysis of Operations During the reporting period, the company's business segments actively responded to market changes: medical materials experienced profit fluctuations due to cloud imaging policies, prompting product structure optimization and new product promotion; imaging materials expanded market reach through online-offline integration; photovoltaic materials exited the domestic market to develop new products; lithium battery material sales grew over 50% year-on-year, with aluminum-plastic film production and sales achieving significant growth; cast optical film material sales increased year-on-year, with new production lines targeting high-end markets; the 'High-Performance Separation Membrane and Components Project' for separation membrane materials commenced, showing good progress in industrial reverse osmosis membrane market development; and international business revenue achieved year-on-year growth - Medical Materials Business: Sales of medical dry films were stable but profits fluctuated significantly, impacted by the National Healthcare Security Administration's cloud imaging policy. The company will optimize its industrial layout and product structure, exploring new products and cloud imaging platforms[26] - Imaging Materials Business: Adopting an online-offline integrated strategy to consolidate market channels, stabilize color photographic paper sales, increase e-commerce development efforts, establish an imaging processing center, and expand new business growth points[26] - Photovoltaic Materials Business: Lucky Backsheet temporarily exited the domestic photovoltaic market while continuously developing new products based on market demand and production line adaptability[26] - Lithium Battery Materials Business: Steadfastly implementing a key account strategy and exploring emerging application scenarios, sales grew over 50% year-on-year in the first half; aluminum-plastic film production and sales achieved leapfrog growth[26] - Cast Optical Film Materials Business: Comprehensively optimizing product structure and strengthening cost foundations, product sales achieved year-on-year growth in the first half; the new TAC film production line is seizing critical commissioning milestones, targeting the high-end optical film market[27] - Separation Membrane Materials Business: The 'High-Performance Separation Membrane and Components Project' officially commenced, with independently developed industrial reverse osmosis membranes maintaining a desalination rate of over 98%, showing good market development results[27] - International Business: Leveraging specialized market promotion plans to precisely develop international markets, color photographic paper and industrial films achieved breakthroughs in European and other markets, resulting in year-on-year growth in international revenue[27] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness spans seven areas: brand, marketing, technological innovation, quality control, organizational management, human resources, and development platform; as an established film manufacturer, it boasts high recognition and reputation, a comprehensive marketing and service network, strong R&D capabilities with numerous core technologies and intellectual properties, a robust quality control system ensuring stable product performance, multiple management system certifications including international photovoltaic product certifications, a strong talent pool, and a listed state-owned enterprise background providing financial security and a favorable financing platform - Brand Advantage: As one of the world's three established film manufacturers, the company enjoys high recognition and reputation, with its national brand image and product quality acknowledged by customers[28] - Marketing Advantage: Possesses a comprehensive domestic marketing and service system, with extensive marketing network coverage, fast after-sales service, complete technical support, and highly qualified service personnel[28] - Technological Innovation Advantage: A national high-tech enterprise with an independent technology R&D center, mastering three core technologies—'coating, film formation, and microstructure'—and holding multiple independent intellectual property rights and science and technology progress awards[28] - Quality Control Advantage: Possesses a comprehensive quality and cost control system from raw materials to finished products, enhancing product quality and performance through independent R&D to maintain an advanced level[30] - Organizational Management Advantage: Certified with multiple management systems including ISO9001, ISO14001, ISO45001, ISO50001, and GB/T29490; photovoltaic products are UL (US) and TUV (Germany) certified, complying with EU environmental requirements[30] - Human Resources Advantage: Attracts professional technical talent, boasts a high-caliber research team, and has a comprehensive human resource system that maximizes employee motivation[30] - Development Platform Advantage: As a listed company, it leverages its platform for financing and development; its state-owned enterprise background provides a favorable financing platform, ensuring financial support for strategic planning[30] IV. Key Operating Performance During the Reporting Period During the reporting period, the company's operating revenue and costs both decreased, financial expenses increased, and net cash flow from operating activities significantly declined; the asset and liability structure changed, with a decrease in monetary funds and an increase in accounts receivable and right-of-use assets; net cash flow from investing activities decreased, primarily due to increased net wealth management investments; net cash flow from financing activities decreased, mainly due to equity acquisition payments in the prior year; major subsidiaries, particularly Lucky Medical and Lucky Optoelectronics, maintained good operating conditions with substantial total assets and net assets (I) Main Business Analysis During the reporting period, both operating revenue and operating costs decreased year-on-year, primarily due to intensified market competition in the photovoltaic industry and reduced sales volume and prices of backsheet products; financial expenses increased due to lower interest income, net cash flow from operating activities decreased due to lower sales revenue, net cash flow from investing activities decreased due to increased net wealth management investments, and net cash flow from financing activities decreased due to equity acquisition payments in the prior year Analysis Table of Financial Statement Item Changes (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 643,586,281.25 | 765,871,458.71 | -15.97 | | Operating Cost | 557,181,902.10 | 666,106,642.47 | -16.35 | | Selling Expenses | 25,242,072.23 | 29,097,770.79 | -13.25 | | Administrative Expenses | 61,256,691.40 | 66,901,510.13 | -8.44 | | Financial Expenses | -4,946,571.93 | -13,571,792.57 | N/A | | R&D Expenses | 50,289,155.09 | 50,605,143.45 | -0.62 | | Net Cash Flow from Operating Activities | -102,762,749.76 | -30,867,197.29 | N/A | | Net Cash Flow from Investing Activities | -359,714,560.72 | -323,594,471.09 | N/A | | Net Cash Flow from Financing Activities | -1,174,097.82 | -422,441,319.78 | N/A | - Primary reasons for changes in operating revenue and operating costs: intensified market competition in the photovoltaic industry, leading to reduced sales volume and prices of backsheet products[31] - Reason for change in financial expenses: decreased interest income in the current period led to increased financial expenses[31] - Reason for change in net cash flow from operating activities: decreased sales revenue in the current period resulted in reduced cash recovery from sales of goods and services[31] - Reason for change in net cash flow from investing activities: increased net wealth management investments in the current period[31] - Reason for change in net cash flow from financing activities: equity acquisition payments in the prior year resulted in higher cash outflows from financing activities compared to the current period[31] (III) Analysis of Assets and Liabilities At the end of the reporting period, the company's monetary funds decreased by 36.25% due to idle funds being used for cash management, while accounts receivable increased by 127.87% influenced by the collection patterns and cycles in the TAC film industry; right-of-use assets and lease liabilities significantly increased by 146.86% and 958.07% respectively, due to the renewal of existing production facility lease contracts Changes in Assets and Liabilities (Current Period End vs. Prior Year End) | Item Name | Current Period End Amount (Yuan) | Share of Total Assets (%) | Prior Year End Amount (Yuan) | Share of Total Assets (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 813,807,951.11 | 25.18 | 1,276,593,973.33 | 38.96 | -36.25 | | Accounts Receivable | 215,169,078.72 | 6.66 | 94,424,962.84 | 2.88 | 127.87 | | Inventories | 306,828,583.16 | 9.49 | 308,295,659.22 | 9.41 | -0.48 | | Investment Properties | 8,925,535.21 | 0.28 | 9,060,711.55 | 0.28 | -1.49 | | Fixed Assets | 528,129,615.61 | 16.34 | 540,188,241.74 | 16.49 | -2.23 | | Construction in Progress | 319,003,177.93 | 9.87 | 268,157,465.27 | 8.18 | 18.96 | | Right-of-Use Assets | 32,020,218.13 | 0.99 | 12,970,761.12 | 0.40 | 146.86 | | Short-term Borrowings | 25,000,000.00 | 0.77 | 25,309,184.66 | 0.77 | -1.22 | | Contract Liabilities | 25,443,410.23 | 0.79 | 23,641,810.48 | 0.72 | 7.62 | | Lease Liabilities | 18,987,652.08 | 0.59 | 1,794,555.92 | 0.05 | 958.07 | - The decrease in monetary funds is primarily due to the company's idle funds being used for cash management, which had not matured by the end of the reporting period[33] - The increase in accounts receivable is mainly due to the collection patterns and cyclical nature of the TAC film industry, leading to an increase in accounts receivable for the company's TAC film segment[33] - The significant increase in right-of-use assets and lease liabilities is primarily due to the expiration of existing production facility lease contracts during the reporting period, with the company renewing lease agreements with lessors and re-recognizing them in accordance with relevant accounting standards[33] (IV) Analysis of Investment Status This period, the company's ending balance of trading financial assets significantly increased to 421,629,274.55 Yuan, a 236.55% rise from the beginning of the period, primarily because current period purchases far exceeded sales/redemptions; other equity instrument investments and accounts receivable financing also changed Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change P/L (Yuan) | Current Period Purchases (Yuan) | Current Period Sales/Redemptions (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 125,282,875.58 | 1,666,398.97 | 621,180,000.00 | 326,500,000.00 | 421,629,274.55 | | Other Equity Instrument Investments | 212,562,596.67 | - | - | - | 212,562,596.67 | | Accounts Receivable Financing | 34,425,291.57 | - | 121,325,308.61 | 185,616,561.57 | 11,400,596.83 | | Total | 372,270,763.82 | 1,666,398.97 | 742,505,308.61 | 512,116,561.57 | 645,592,468.05 | (VI) Analysis of Major Holding and Participating Companies The company's major controlled subsidiaries include Lucky Medical, Shantou Lucky, Baoding Lucky Imaging, Baoding Lucky Import & Export, Beijing Lucky Sales, and Lucky Optoelectronics; among these, Lucky Medical and Lucky Optoelectronics have substantial total assets and net assets, with Lucky Medical reporting operating revenue of 208.88 million Yuan and net profit of 3.08 million Yuan for the period, and Lucky Optoelectronics reporting operating revenue of 116.35 million Yuan and net profit of 6.04 million Yuan Major Subsidiary Financial Information (Unit: 10,000 Yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lucky Medical Technology Co., Ltd. | Subsidiary | R&D, production, and sales of information chemicals, fine chemical products, medical devices, etc. | 12,988.05 | 53,286.61 | 39,650.69 | 20,888.27 | 382.12 | 307.95 | | Shantou Lucky Film Co., Ltd. | Subsidiary | R&D, production, and sales of color photographic paper | 8,000.00 | 17,265.90 | 12,707.43 | 9,751.27 | -93.79 | -96.09 | | Baoding Lucky Imaging Materials Technology Co., Ltd. | Subsidiary | R&D, production, and sales of processing chemicals for information imaging materials | 3,140.00 | 3,979.36 | 3,644.28 | 1,394.66 | 67.96 | 67.96 | | Baoding Lucky Import & Export Trading Co., Ltd. | Subsidiary | Self-operated and agency import and export business | 100.00 | 687.79 | 446.52 | 1,376.90 | 22.58 | 26.16 | | Beijing Lucky Film Sales Co., Ltd. | Subsidiary | Sales of photosensitive materials, photographic equipment, magnetic recording materials, etc. | 950.00 | 4,605.49 | 1,514.80 | 13,966.14 | 94.37 | 85.71 | | Lucky Optoelectronics Materials Co., Ltd. | Subsidiary | R&D, production, and sales of new film materials | 17,718.09 | 104,998.18 | 95,047.99 | 11,635.05 | 710.32 | 604.28 | V. Other Disclosure Matters The company faces political, policy change, and industry risks; political risks primarily stem from international trade frictions and tariff adjustments, which the company addresses by closely monitoring the situation, adjusting strategies, and building strong government relations; policy change risks arise from medical insurance policies promoting cloud films, which the company counters by promoting 'cloud imaging' and intensifying international market development; industry risks mainly involve high silver prices, which the company manages by monitoring raw material markets, adjusting product structures, and sales strategies (I) Potential Risks The company faces political risks (international trade frictions, tariff adjustments), policy change risks (medical insurance policies promoting cloud films leading to demand decline), and industry risks (high silver prices); the company has formulated corresponding countermeasures, including closely monitoring the political situation, promoting 'cloud imaging', intensifying international market development, and flexibly adjusting procurement costs and product structure - Political Risks: The international political environment is becoming more complex, with escalating Sino-US trade frictions, EU anti-dumping investigations, and tariff adjustments potentially impacting raw material procurement, exports, and supply chains[37] - Countermeasures: Timely understanding of the political environment, close attention to changes in policies and regulations, formulation of response strategies, adjustment of company strategies, and establishment of good relationships with government and political stakeholders[39] - Policy Change Risks: The National Healthcare Security Administration's promotion of 'technical-consumable separation' and encouragement of 'cloud films' has led to a sharp decline in demand for medical dry films[39] - Countermeasures: Promoting Lucky 'Cloud Imaging', accelerating the sales model combining medical dry films with digital imaging services, and increasing independent development and export efforts in international markets[39] - Industry Risks: Sustained high prices of silver have led to a decline in product profitability[39] - Countermeasures: Closely monitoring raw material market supply, adopting flexible measures to reduce procurement costs, ensuring stable procurement, and adjusting product structure and sales strategies based on market demand[39] Section 4 Corporate Governance, Environment, and Society I. Changes in Directors and Senior Management During the reporting period, there were changes in the company's senior management, with Gu Yongjun appointed as Chief Financial Officer and Guan Chen resigning from the Chief Financial Officer position - Gu Yongjun was appointed as the company's Chief Financial Officer[42] - Guan Chen resigned from the position of Chief Financial Officer[42] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company and its three major subsidiaries (Lucky Medical Technology Co., Ltd., Baoding Lucky Imaging Materials Technology Co., Ltd., and Shantou Lucky Film Co., Ltd.), totaling four entities, have been included in the list of enterprises required to disclose environmental information by law and have publicly disclosed their environmental information in the respective enterprise environmental information disclosure systems - A total of 4 of the company's entities were included in the list of enterprises required to disclose environmental information by law[43] - Lucky Film Company Limited, Lucky Medical Technology Co., Ltd., and Baoding Lucky Imaging Materials Technology Co., Ltd. disclosed environmental information in the Enterprise Environmental Information Disclosure System (Hebei)[43] - Shantou Lucky Film Co., Ltd. disclosed environmental information in the Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[43][44] Section 5 Significant Matters I. Fulfillment of Commitments During the reporting period, both the controlling shareholder, China Lucky Group Corporation, and the actual controller, China Aerospace Science and Technology Corporation, strictly fulfilled all commitments related to major asset restructuring and refinancing, including ensuring the company's independence, avoiding horizontal competition, regulating related party transactions, and patent and trademark usage, with all commitments strictly adhered to on schedule - Both the controlling shareholder, China Lucky Group Corporation, and the actual controller, China Aerospace Science and Technology Corporation, committed to ensuring Lucky Film's independence in personnel, assets, finance, organization, and business, and have strictly fulfilled these commitments[46] - All committing parties pledged to avoid horizontal competition with Lucky Film, refraining from engaging in businesses identical or similar to the company's, and have strictly fulfilled this commitment[47] - All committing parties pledged to minimize and regulate related party transactions with Lucky Film, conducting them at fair prices in accordance with market principles, and have strictly fulfilled this commitment[47] - China Lucky Group Corporation committed not to unilaterally use or implement patent rights jointly owned with Lucky Medical, and authorized Lucky Medical to use registered trademarks free of charge, which has been strictly fulfilled[47] - China Lucky Group Corporation committed to providing Lucky Medical with priority lease rights and the right to determine lease terms for leased land and properties, and to provide full cash compensation for any potential defects, which has been strictly fulfilled[47][48] X. Significant Related Party Transactions The company engages in related party transactions such as purchasing and selling goods and providing labor in its daily operations, and conducts financial business with Aerospace Science and Technology Finance Co., Ltd. During the reporting period, the company's ending deposit balance with Aerospace Science and Technology Finance Co., Ltd. was 354.15 million Yuan, with total deposits of 10.36 billion Yuan and withdrawals of 10.87 billion Yuan for the period; the company also obtained a 150 million Yuan comprehensive credit facility from Aerospace Science and Technology Finance Co., Ltd (I) Related Party Transactions Related to Daily Operations The company has disclosed its 2025 annual routine related party transactions in a temporary announcement, with no subsequent progress or changes in implementation - The company has disclosed its 2025 annual routine related party transactions in a temporary announcement (Announcement No.: 2024-058), with no subsequent progress or changes in implementation[50] (V) Financial Business Between the Company and Related Financial Companies, and Between the Company's Controlled Financial Companies and Related Parties The company has deposit and credit line businesses with Aerospace Science and Technology Finance Co., Ltd. At the end of the reporting period, the company's deposit balance with the financial company was 354.15 million Yuan, with total deposits of 10.36 billion Yuan and withdrawals of 10.87 billion Yuan for the period; additionally, the company obtained a 150 million Yuan comprehensive credit facility Deposit Business Information (Unit: 10,000 Yuan) | Related Party | Related Party Relationship | Daily Max Deposit Limit | Deposit Interest Rate Range | Beginning Balance | Total Deposits This Period | Total Withdrawals This Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Aerospace Science and Technology Finance Co., Ltd. | Related financial company | Daily average transaction amount not exceeding 5,000 | 0.4%-1.37% | 86,096.17 | 1,036,320.09 | 1,087,001.35 | 35,414.91 | Credit Facility Information (Unit: 10,000 Yuan) | Related Party | Related Party Relationship | Business Type | Total Amount | Actual Amount | | :--- | :--- | :--- | :--- | :--- | | Aerospace Science and Technology Finance Co., Ltd. | Related financial company | Comprehensive credit facility (loan/acceptance) | 15,000 | 0 | XI. Significant Contracts and Their Fulfillment During the reporting period, the company's total external guarantees amounted to 25 million Yuan, all for subsidiaries, representing 0.88% of the company's net assets; the company provided joint and several liability guarantees for its subsidiaries Shantou Lucky Film Co., Ltd. and Lucky Medical Technology Co., Ltd (II) Significant Guarantees Performed and Not Yet Completed During the Reporting Period During the reporting period, the company had no external guarantees (excluding guarantees for subsidiaries); the amount and balance of guarantees for subsidiaries were both 25 million Yuan, accounting for 0.88% of the company's net assets; the company provided joint and several liability guarantees for its subsidiaries Shantou Lucky Film Co., Ltd. and Lucky Medical Technology Co., Ltd. within their respective credit limits Company Total Guarantee Amount (Unit: 10,000 Yuan) | Indicator | Amount | | :--- | :--- | | Total guarantees incurred during the reporting period (excluding guarantees for subsidiaries) | 0 | | Total guarantee balance at the end of the reporting period (A) (excluding guarantees for subsidiaries) | 0 | | Total guarantees incurred for subsidiaries during the reporting period | 2,500 | | Total guarantee balance for subsidiaries at the end of the reporting period (B) | 2,500 | | Total Guarantees (A+B) | 2,500 | | Proportion of total guarantees to company's net assets (%) | 0.88 | - The company provides joint and several liability guarantees for debts arising from specific business contracts signed by its subsidiary Shantou Lucky Film Co., Ltd. within the credit limits of ICBC Shantou Branch and Bank of Communications Shantou Branch, and for its subsidiary Lucky Medical Technology Co., Ltd. within the credit limit of Bank of China Baoding Branch[58] XII. Explanation of Progress in Use of Raised Funds The company's overall use of raised funds is good, with a cumulative investment of 862.27 million Yuan, reaching an investment progress of 92.07%; raised fund projects such as high-performance lithium-ion battery PE separator industrialization, phase one of lithium battery separator coating production line, aluminum-plastic film composite film industrialization, and phase four expansion of solar backsheet projects are completed or near completion; during the reporting period, the company's subsidiary Lucky Optoelectronics used 150 million Yuan of idle raised funds to temporarily supplement working capital, which was fully repaid by July 15, 2025; the company also managed idle raised funds through cash management (I) Overall Use of Raised Funds The company's total raised funds amounted to 950 million Yuan, with net raised funds of 936.59 million Yuan; as of the end of the reporting period, the cumulative investment of raised funds totaled 862.27 million Yuan, with an investment progress of 92.07% Overall Use of Raised Funds (Unit: 10,000 Yuan) | Indicator | Shares Issued to Specific Objects (Arrived Jan 17, 2020) | Shares Issued to Specific Objects (Arrived May 19, 2015) | Total | | :--- | :--- | :--- | :--- | | Total Raised Funds | 35,000.00 | 60,000.00 | 95,000 | | Net Raised Funds (1) | 33,658.65 | 60,000.00 | 93,658.65 | | Total Committed Investment in Prospectus (2) | 33,658.65 | 60,000.00 | 93,658.65 | | Cumulative Investment of Raised Funds at Period-End (4) | 29,447.46 | 56,779.54 | 86,227.00 | | Cumulative Investment Progress of Raised Funds at Period-End (%) (6)＝(4)/(1) | 87.49 | 94.63 | - | | Amount Invested This Year (8) | 0.00 | 5,159.19 | 5,159.19 | | Proportion of Amount Invested for Changed Purposes to Total Raised Funds (%) (9) | 0.00 | 8.60 | - | - The 2015 net raised funds were adjusted to 600 million Yuan, with actual net raised funds after deducting issuance expenses being 590,673,513.36 Yuan[61] (II) Details of Raised Fund Investment Projects Several of the company's raised fund investment projects are completed or near completion, including high-performance lithium-ion battery PE separator industrialization, phase one of lithium battery separator coating production line, aluminum-plastic film composite film industrialization, and phase four expansion of solar backsheet projects, all reaching 100% investment progress; the TAC film 3 production line project and the annual production of 50 million square meters of multi-functional coated composite materials technical upgrade and expansion project are still under construction, while the high-performance separation membrane and components project has exceeded its planned investment Details of Raised Fund Investment Projects Usage (Unit: 10,000 Yuan) | Source of Raised Funds | Project Name | Project Nature | Committed Investment Project in Prospectus | Involves Change in Investment Direction | Planned Investment (1) | Amount Invested This Year | Cumulative Investment of Raised Funds at Period-End (2) | Cumulative Investment Progress (%) (3)＝(2)/(1) | Date Project Reached Intended Usable State | Is Project Closed | Is Investment Progress in Line with Plan | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shares Issued to Specific Objects | High-Performance Lithium-Ion Battery PE Separator Industrialization Project | Production and Construction | Yes | No | 20649.36 | 0 | 20,649.36 | 100.00 | July 1, 2017 | Yes | Yes | | Shares Issued to Specific Objects | Phase One of Lithium Battery Separator Coating Production Line Project | Production and Construction | Yes | No | 2997.87 | 0 | 2,997.87 | 100.00 | July 1, 2017 | Yes | Yes | | Shares Issued to Specific Objects | Lithium-Ion Battery Soft Pack Aluminum-Plastic Composite Film Industrialization Project | Production and Construction | No | Yes, this is a new project | 11426.07 | 0 | 11,426.07 | 100.00 | December 26, 2022 | Yes | Yes | | Shares Issued to Specific Objects | Phase Four Expansion of Solar Backsheet Project—No. 8 Production Line | Production and Construction | Yes | No | 2,573.87 | 0 | 2,573.87 | 100.00 | October 1, 2015 | Yes | Yes | | Shares Issued to Specific Objects | Phase Four Expansion of Solar Backsheet Project—No. 14, 15 Production Lines | - | Yes | - | 110.54 | 0 | 110.54 | 100.00 | - | Yes | No (Changed to TAC Film 3 Production Line Project) | | Shares Issued to Specific Objects | TAC Film 3 Production Line Project① | Production and Construction | No | Yes, this is a new project | 12,889.46 | 2,277.77 | 13,048.47 | 101.23 | July 31, 2025 | No | Yes | | Shares Issued to Specific Objects | Annual Production of 50 Million Square Meters of Multi-Functional Coated Composite Materials Technical Upgrade and Expansion Project | Production and Construction | No | No | 8,345 | 1,502.66 | 4,594.60 | 55.06 | October 31, 2025 | No | Yes | | Shares Issued to Specific Objects | Acquisition of 100% Equity in Lucky Optoelectronics | Other | No | Yes, this is a new project | 28,253.46 | 0 | 28,253.46 | 100.00 | January 26, 2024 | Yes | Yes | | Shares Issued to Specific Objects | TAC Film 3 Production Line Project② | Production and Construction | No | Yes, this is a new project | 5,326.56 | 0 | 1,194 | 22.42 | July 31, 2025 | No | Yes | | Shares Issued to Specific Objects | High-Performance Separation Membrane and Components Project | Production and Construction | No | Yes, this is a new project | 1,086.46 | 1,378.76 | 1,378.76 | 126.90 | January 31, 2027 | No | Yes | (IV) Other Uses of Raised Funds During the Reporting Period During the reporting period, the company's subsidiary Lucky Optoelectronics used 150 million Yuan of idle raised funds to temporarily supplement working capital, which was fully repaid by July 15, 2025; additionally, the company managed idle raised funds through cash management, with an ending balance of 120 million Yuan - The company's subsidiary Lucky Optoelectronics used 150 million Yuan of idle raised funds to temporarily supplement working capital, which was fully repaid to the special raised funds account by July 15, 2025[65] Cash Management of Idle Raised Funds (Unit: 10,000 Yuan) | Board of Directors Review Date | Authorized Amount | Start Date | End Date | Ending Balance of Cash Management | Is Balance Exceeding Authorized Amount | | :--- | :--- | :--- | :--- | :--- | :--- | | March 14, 2025 | 12,000 | March 14, 2025 | March 13, 2026 | 12,000 | No | Section 6 Share Changes and Shareholder Information I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[69] II. Shareholder Information As of the end of the reporting period, the company had 26,280 common shareholders; among the top ten shareholders, China Lucky Group Corporation is the controlling shareholder with a 45.68% stake, while the remaining are individual shareholders with relatively low ownership percentages - As of the end of the reporting period, the company had 26,280 common shareholders[70] Top Ten Shareholders' Holdings (Excluding Shares Lent via Securities Relending) | Shareholder Name | Ending Shareholding (Shares) | Proportion (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | China Lucky Group Corporation | 252,776,443 | 45.68 | State-owned Legal Entity | | Wang Chengping | 3,000,000 | 0.54 | Unknown | | Gao Xiankang | 2,515,201 | 0.45 | Unknown | | Qin Ziyu | 2,209,000 | 0.40 | Unknown | | Lin Youming | 2,177,900 | 0.39 | Unknown | | Hu Guohao | 1,900,000 | 0.34 | Unknown | | Jin Feng | 1,565,600 | 0.28 | Unknown | | Ruan Baoqin | 1,550,000 | 0.28 | Unknown | | Zhu Yongcun | 1,399,900 | 0.25 | Unknown | | Shen Miaoqing | 1,330,600 | 0.24 | Unknown | - China Lucky Group Corporation is the company's controlling shareholder, holding 252,776,443 unrestricted tradable shares[71] Section 7 Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds Section 8 Financial Report II. Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the company's financial position at the end of the reporting period and its operating results, cash flows, and changes in owners' equity during the reporting period - The consolidated balance sheet shows total assets of 3,232,103,349.88 Yuan at period-end, with total owners' equity attributable to the parent company of 2,418,336,123.60 Yuan[79] - The consolidated income statement shows total operating revenue of 643,586,281.25 Yuan for the current period, and net profit attributable to parent company shareholders of -52,939,432.17 Yuan[84][85] - The consolidated cash flow statement shows net cash flow from operating activities of -102,762,749.76 Yuan and net cash flow from investing activities of -359,714,560.72 Yuan[90][91] III. Company Basic Information Lucky Film Company Limited was registered on January 16, 1998, and listed on the Shanghai Stock Exchange on January 22, with a unified social credit code of 911300007007101420, operating in the chemical raw materials and chemical products manufacturing industry; through multiple non-public offerings and asset acquisitions, the company has cumulatively issued 553,307,099 shares, with a registered capital of 553,307,099 Yuan; its main business focuses on image information materials and new energy materials, with key products including solar backsheets, color photographic paper, lithium-ion battery separators, medical films, and TAC films; the company's parent company is China Lucky Group Corporation, and its ultimate controlling party is China Aerospace Science and Technology Corporation - Lucky Film Company Limited was registered on January 16, 1998, and listed on the Shanghai Stock Exchange on January 22, with stock code 600135[103] - The company has cumulatively issued 553,307,099 shares, with a registered capital of 553,307,099 Yuan[105] - The company's main business focuses on image information materials and new energy materials, with key products including solar backsheets, color photographic paper, inkjet printing paper, processing chemicals for information imaging materials, lithium-ion battery separators, medical films, and TAC films[105] - The company's parent company is China Lucky Group Corporation, and its ultimate controlling party is China Aerospace Science and Technology Corporation[105] IV. Basis for Preparation of Financial Statements The company's financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, accurately and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows - The company's financial statements are prepared on a going concern basis[106][107] - The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the China Securities Regulatory Commission's 'No. 15 Rules for the Preparation of Information Disclosure by Companies Issuing Securities to the Public - General Provisions on Financial Reports'[106] V. Significant Accounting Policies and Estimates This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering financial instruments, inventories, fixed assets, intangible assets, revenue recognition, employee compensation, deferred income tax, and other areas, with specific explanations for fixed asset depreciation, intangible asset amortization, R&D expense capitalization conditions, and revenue recognition policies determined based on the company's operational characteristics - The company determines fixed asset depreciation, intangible asset amortization, R&D expense capitalization conditions, and revenue recognition policies based on its specific production and operational characteristics[108] - The company classifies financial assets as those measured at amortized cost, those measured at fair value with changes recognized in other comprehensive income, and those measured at fair value with changes recognized in current profit or loss[125] - The company accrues loss provisions for financial instruments based on expected credit losses and measures them in different stages according to changes in credit risk[137][138] - The company recognizes revenue when it fulfills its performance obligations in a contract, i.e., when the customer obtains control of the relevant goods or services[190] VI. Taxation This section discloses the company's main tax categories and rates, including Value-Added Tax, Urban Maintenance and Construction Tax, Education Surcharge, and Local Education Surcharge; the company and several of its subsidiaries enjoy high-tech enterprise tax incentives, applying a 15% corporate income tax rate; some subsidiaries, as small low-profit enterprises, benefit from a preferential policy where the portion of annual taxable income not exceeding 1 million Yuan is reduced by 25% and taxed at a 20% corporate income tax rate Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable value-added amount | 13%, 6%, 5% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - Lucky Film Company Limited, Baoding Lucky Imaging Materials Technology Co., Ltd., Shantou Lucky Film Co., Ltd., Lucky Medical Technology Co., Ltd., and Lucky Optoelectronics Materials Co., Ltd. are all recognized as high-tech enterprises, applying a 15% corporate income tax rate[219][220] - Baoding Lucky Import & Export Trading Co., Ltd. and Beijing Lucky Film Sales Co., Ltd. enjoy preferential corporate income tax policies for small low-profit enterprises, where the portion of annual taxable income not exceeding 1 million Yuan is reduced by 25% and taxed at a 20% corporate income tax rate[220] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on significant items in the consolidated financial statements, including monetary funds, trading financial assets, notes receivable, accounts receivable, inventories, fixed assets, construction in progress, intangible assets, deferred tax assets/liabilities, short-term borrowings, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, lease liabilities, deferred income, share capital, capital reserves, other comprehensive income, special reserves, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income and expenses, income tax expenses, and cash flow statement items, providing ending balances, beginning balances, current period changes, and related explanations for each item - The ending balance of monetary funds was 813,807,951.11 Yuan, of which 392,105,701.01 Yuan were restricted monetary funds[222][223] - The ending balance of trading financial assets was 421,629,274.55 Yuan, primarily consisting of structured deposits[228] - The ending book value of accounts receivable was 215,169,078.72 Yuan, with a bad debt provision of 54,944,438.23 Yuan[238] - The ending book value of inventories was 306,828,583.16 Yuan, with inventory impairment provisions and contract performance cost impairment provisions totaling 13,927,162.41 Yuan[274][276] - The ending book value of fixed assets was 528,129,615.61 Yuan, with accumulated depreciation of 1,403,547,779.97 Yuan[290] - Operating revenue for the current period was 643,586,281.25 Yuan, and operating cost was 557,181,902.10 Yuan[353] - Net cash flow from operating activities was -102,762,749.76 Yuan[383] VIII. Research and Development Expenses During the reporting period, the company's total R&D expenditure was 50,289,155.09 Yuan, entirely expensed, primarily comprising employee compensation, testing fees, and material costs; R&D expenditure slightly decreased compared to the same period last year R&D Expenses by Nature of Expense (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Employee Compensation | 17,169,813.30 | 16,911,293.56 | | Testing Fees | 13,193,271.70 | 12,996,555.85 | | Materials | 10,285,662.36 | 11,088,847.56 | | Energy Costs | 2,009,905.77 | 1,879,066.10 | | Fixed Asset Depreciation | 1,815,517.50 | 1,515,173.51 | | Consulting Fees | 1,450,579.44 | 693,831.75 | | Intangible Asset Amortization | 962,859.30 | 962,859.30 | | Labor Costs | 712,179.33 | 758,843.34 | | Travel Expenses | 421,500.36 | 460,463.49 | | Lease Fees | 307,285.69 | 269,794.26 | | Other | 1,960,580.34 | 3,068,414.73 | | Total | 50,289,155.09 | 50,605,143.45 | | Of which: Expensed R&D Expenditure | 50,289,155.09 | 50,605,143.45 | | Capitalized R&D Expenditure | - | - | IX. Changes in Consolidation Scope During the reporting period, the company had no changes in its consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, disposal of subsidiaries, or other reasons X. Interests in Other Entities This section discloses the company's equity interests in its subsidiaries, including the registered place, business nature, registered capital, and shareholding ratio of major subsidiaries such as Shantou Lucky Film Co., Ltd., Baoding Lucky Imaging Materials Technology Co., Ltd., Beijing Lucky Film Sales Co., Ltd., Baoding Lucky Import & Export Trading Co., Ltd., Lucky Medical Technology Co., Ltd., and Lucky Optoelectronics Materials Co., Ltd.; among these, Baoding Lucky Imaging Materials Technology Co., Ltd. and Lucky Optoelectronics Materials Co., Ltd. are significant non-wholly-owned subsidiaries, with minority shareholder stakes of 54.72% and 43.56% respectively Composition of Enterprise Group (Unit: 10,000 Yuan) | Subsidiary Name | Registered Place | Registered Capital | Main Operating Place | Business Nature | Direct Shareholding (%) | Indirect Shareholding (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shantou Lucky Film Co., Ltd. | Shantou City, Guangdong Province | 8,000.00 | Shantou City, Guangdong Province | Production and Sales | 100.00 | - | Investment Establishment | | Baoding Lucky Imaging Materials Technology Co., Ltd. | Baoding City, Hebei Province | 3,140.00 | Baoding City, Hebei Province | Production and Sales | 45.28 | - | Investment Establishment | | Beijing Lucky Film Sales Co., Ltd. | Baoding City, Hebei Province | 950.00 | Baoding City, Hebei Province | Sales | 100.00 | - | Investment Establishment | | Baoding Lucky Import & Export Trading Co., Ltd. | Baoding City, Hebei Province | 100.00 | Baoding City, Hebei Province | Sales | 100.00 | - | Business Combination Under Common Control | | Lucky Medical Technology Co., Ltd. | Baoding City, Hebei Province | 12,988.05 | Baoding City, Hebei Province | Production and Sales | 100.00 | - | Business Combination Under Common Control | | Lucky Optoelectronics Materials Co., Ltd. | Suqian City, Jiangsu Province | 17,718.09 | Suqian City, Jiangsu Province | Production and Sales | 56.44 | - | Business Combination Under Common Control | Significant Non-Wholly-Owned Subsidiaries (Unit: Yuan) | Subsidiary Name | Minority Shareholding (%) | P/L Attributable to Minority Shareholders This Period | Dividends Declared to Minority Shareholders This Period | Ending Balance of Minority Interests | | :--- | :--- | :--- | :--- | :--- | | Baoding Lucky Imaging Materials Technology Co., Ltd. | 54.72 | 371,878.40 | - | 19,942,243.16 | | Lucky Optoelectronics Materials Co., Ltd. | 43.56 | 2,632,264.76 | - | 414,221,634.24 | XI. Government Grants During the reporting period, the company's government grant-related liability items primarily consisted of deferred income, with an ending balance of 43,717,869.06 Yuan, a decrease of 3,717,081.22 Yuan for the period, mainly due to asset-related government grants recognized in other income; total government grants recognized in current profit or loss for the period amounted to 4,010,070.41 Yuan, of which 3,617,081.22 Yuan were asset-related and 392,989.19 Yuan were income-related Liability Items Involving Government Grants (Unit: Yuan) | Financial Statement Item | Beginning Balance | New Grants This Period | Amount Recognized in Non-Operating Income This Period | Transferred to Other Income This Period | Other Changes This Period | Ending Balance | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 47,434,950.28 | - | - | 3,717,081.22 | - | 43,717,869.06 | Asset-related | | Total | 47,434,950.28 | - | - | 3,717,081.22 | - | 43,717,869.06 | / | Government Grants Recognized in Current Profit or Loss (Unit: Yuan) | Type | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Asset-related | 3,617,081.22 | 3,717,081.23 | | Income-related | 392,989.19 | 773,611.41 | | Total | 4,010,070.41 | 4,490,692.64 | XII. Risks Related to Financial Instruments The company primarily faces credit risk, liquidity risk, and market risk (including interest rate risk and exchange rate risk); the company manages and monitors these risk exposures to ensure they remain within controllable limits; credit risk is controlled mainly by assessing customer creditworthiness, regular monitoring, and purchasing credit guarantee insurance; liquidity risk is managed by maintaining sufficient cash and cash equivalents and bank credit lines; regarding market risk, the company closely monitors interest rate and exchange rate fluctuations but currently does not employ hedging policies - The company's main financial instruments include monetary funds, notes receivable, accounts receivable, accounts receivable financing, other receivables, trading financial assets, other equity instrument investments, notes payable, accounts payable, other payables, short-term borrowings, lease liabilities, and long-term payables[405](index=405&