中研股份(688716) - 2025 Q2 - 季度财报

Section I Definitions This section provides definitions of common terms used throughout the report to ensure reader clarity Definitions of Common Terms This chapter defines frequently used terms, including company name, regulatory bodies, stock types, currency units, and the reporting period, for clear understanding - Company short name is "Zhongyan Shares", stock code 688716, listed on the Shanghai Stock Exchange STAR Market[12] - The reporting period is from January 1, 2025, to June 30, 2025[12] - The company's main product is Polyetheretherketone (PEEK), a special engineering plastic[12] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance during the reporting period I. Company Basic Information This section introduces Jilin Zhongyan High-Performance Polymer Materials Co., Ltd.'s basic details, including its name, legal representative, and addresses - Full company name is Jilin Zhongyan High-Performance Polymer Materials Co., Ltd., abbreviated as Zhongyan Shares, with Xie Huaijie as legal representative[14] - Both registered and office addresses are located at Zhongyan Road 1177, Advanced Manufacturing Park, Luyuan Economic Development Zone, Changchun City, Luyuan District[14] II. Contact Person and Information This section provides contact details for Gao Fang, the company's Board Secretary and domestic representative for information disclosure - Board Secretary (domestic representative for information disclosure) is Gao Fang, contact number 0431-89625599, email jlzypeek@126.com[15] III. Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section lists the company's designated information disclosure channels and report custody location, confirming no changes during the reporting period - Company's information disclosure newspapers include Shanghai Securities News, China Securities Journal, Securities Daily, Securities Times, with reports published on the official website of Shanghai Stock Exchange[16] - The company's semi-annual report is available at the company's Board Secretary Office, with no changes during the reporting period[16] IV. Brief Introduction to Company Shares/Depositary Receipts This section provides a brief overview of the company's shares, including stock type, listing exchange, board, abbreviation, and code - Company's stock type is RMB ordinary shares (A-shares), listed on the STAR Market of Shanghai Stock Exchange, with stock abbreviation "Zhongyan Shares" and stock code 688716[17] VI. Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators, showing a slight revenue decrease but significant profit decline due to increased R&D and expenses Key Accounting Data (Jan-Jun 2025 vs Jan-Jun 2024) | Indicator | Current Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 131,282,422.94 | 134,099,232.36 | -2.10 | | Total Profit | 8,102,852.44 | 18,988,848.98 | -57.33 | | Net Profit Attributable to Shareholders of Listed Company | 7,026,933.48 | 17,518,770.28 | -59.89 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 3,203,125.20 | 16,465,726.08 | -80.55 | | Net Cash Flow from Operating Activities | -16,487,617.28 | 4,030,174.59 | -509.10 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,179,180,910.34 | 1,172,153,976.86 | 0.60 | | Total Assets (Period-end) | 1,335,881,411.80 | 1,354,484,847.76 | -1.37 | Key Financial Indicators (Jan-Jun 2025 vs Jan-Jun 2024) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.06 | 0.14 | -57.14 | | Diluted Earnings Per Share (RMB/share) | 0.06 | 0.14 | -57.14 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (RMB/share) | 0.03 | 0.14 | -78.57 | | Weighted Average Return on Net Assets (%) | 0.60 | 1.50 | Decrease of 0.90 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 0.27 | 1.41 | Decrease of 1.14 percentage points | | R&D Investment as % of Operating Revenue (%) | 14.38 | 10.19 | Increase of 4.19 percentage points | - Net profit declined primarily due to increased R&D investment, active promotion of fundraising projects, and regional industrial layout, leading to higher period expenses[20] - Company's operating revenue decreased by 2.10% year-on-year, mainly due to slight changes in product category structure and sales volume[19] VIII. Non-Recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling 3.82 million yuan Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -17,911.41 | | Government grants recognized in current profit or loss | 469,354.83 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 4,246,773.54 | | Other non-operating income and expenses | -199,618.98 | | Less: Income tax impact | 674,789.70 | | Total | 3,823,808.28 | Section III Management Discussion and Analysis This section provides management's discussion and analysis of the company's operations, financial condition, and future outlook I. Explanation of the Company's Industry and Main Business During the Reporting Period This section elaborates on the company's PEEK special engineering plastics industry, including its strategic importance, product characteristics, business model, and future trends (I) Company's Industry The company operates in the chemical raw materials and chemical products manufacturing industry, with PEEK products holding significant strategic importance as a high-end new material - Company's product Polyetheretherketone (PEEK) belongs to special engineering plastics, classified under chemical raw materials and chemical products manufacturing (C26), specifically primary plastics and synthetic resin manufacturing (C2651)[26] - PEEK is one of the strategic emerging industries vigorously developed by the state, holding significant strategic importance for promoting technological innovation, supporting industrial upgrading, and building a manufacturing powerhouse[28] - PEEK possesses excellent properties such as good mechanical characteristics, high heat resistance, corrosion resistance, flame retardancy, wear resistance, hydrolysis resistance, peel resistance, and biocompatibility, widely used in transportation, aerospace, electronic information, energy and industry, and medical health fields[30] (II) Main Business, Products, or Services The company's main business involves R&D, production, and sales of PEEK resin products, offering a diverse system of 89 specifications across two categories and seven series - Company's main products are PEEK in resin form, divided into two categories: pure resin and composite reinforced resin, and three grades based on melt flowability: 770, 550, 330[31] - The product system includes pure resin coarse powder (P series), pure resin fine powder (PF series), pure resin pellets (G series), glass fiber reinforced pellets (GL series), carbon fiber reinforced pellets (CA series), wear-resistant reinforced pellets (FC series), and application-specific customization, totaling seven series[31] - Application-specific customized products include ceramic modified, consumer electronics specific, wafer carrier specific, antistatic profile specific, colored PEEK, and medical implant grade PEEK[33] (III) Main Business Model The company generates revenue and profit by providing customers with various series and grades of PEEK pure resin and composite reinforced resin products - The company generates revenue and profit by providing PEEK pure resin (coarse powder, fine powder, pellets) and composite reinforced resins (carbon fiber series, glass fiber series, etc.)[34] (IV) Industry Overview This section analyzes the PEEK industry's development, technical barriers, and the company's leading position, forecasting broad application prospects and trends in high-end sectors - PEEK, developed by ICI in 1978, was once a strategic material subject to embargo, with China achieving independent R&D through national key scientific and technological projects and the "863" program[39] - PEEK resin synthesis has high technical barriers, requiring long-term and substantial capital investment, involving full-process capabilities such as synthesis and purification theory, preparation technology, production processes, and equipment design[43] - The company is the 4th globally and 1st in China to achieve a PEEK annual production capacity of thousands of tons, and the 2nd globally to use 5000L reactors for PEEK polymerization[44] - Company products have wide applications and domestic substitution potential in high-end fields such as new energy vehicles, semiconductors (CMP retaining rings, mobile phone diaphragms), wind power, photovoltaics, nuclear energy, medical implants (craniofacial repair systems, cranial bone plates), and aerospace (CF/PEEK)[49][50][51][53][54] II. Discussion and Analysis of Operations This section reviews the company's operational performance, highlighting its continuous deep cultivation in the PEEK industry, market consolidation through innovation, and active response to challenges despite declining revenue and profit - The company is a national high-tech enterprise and a national "little giant" enterprise specializing in niche sectors, possessing a Jilin Provincial Engineering Research Center, with PEEK industrial production technology at a leading domestic level[58] Key Operating Data for H1 2025 | Indicator | Amount (RMB in thousands) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 13,128.24 | Decrease of 2.10% | | Net Profit Attributable to Shareholders of Listed Company | 702.69 | Decrease of 59.89% | - Company's key initiatives include deepening PEEK business development and actively expanding into application areas such as antistatic PEEK, high-temperature insulating PEEK, and medical-grade PEEK[61] - The company is deepening its domestic and international market presence, actively participating in exhibitions, utilizing overseas self-media platforms, and establishing a warehousing center in Europe for localized inventory management and rapid delivery[61] - The company is advancing workshop upgrades and renovations, deepening refined specialized management, optimizing SOPs, and implementing minor improvements and digital management upgrades to enhance product quality[62] III. Analysis of Core Competencies During the Reporting Period This section details the company's core competencies, including its long-term R&D, leading production technology, diverse product system, quality, professional R&D team, and strong brand reputation (I) Analysis of Core Competencies The company's core competitiveness stems from over a decade of independent R&D in PEEK, mastering kiloton-scale industrial production, achieving internationally advanced product performance, and leading the Chinese market - The company has mastered PEEK resin kiloton-scale industrial production key technologies, with all core technologies derived from independent R&D, and main product performance indicators reaching internationally advanced levels, filling domestic gaps[64][65] - The company is the 4th globally and 1st in China to achieve a PEEK annual production capacity of thousands of tons, and has surpassed Victrex (UK) to become the largest seller in the Chinese market[65] - The company possesses a "two categories, three grades, seven series" product system with 89 specifications, meeting diverse downstream application needs, with multiple products breaking foreign monopolies[68] - Company products exhibit quality advantages such as excellent melt stability, balanced melt flow index and viscosity, high batch-to-batch stability, rapid crystallization rate, and high crystallinity[69] - The company has 106 R&D personnel, including 10 PhDs and 16 Masters, covering all aspects of PEEK production, forming a professional technical team[72] - The company is a national high-tech enterprise and a specialized "little giant" enterprise, participated in drafting the first national standard for PEEK, and obtained multiple international quality management system certifications[66][74] (III) Core Technologies and R&D Progress This section details the company's core technological innovations in PEEK preparation, purification, modification, and ultra-fine powder production, highlighting achievements in domestic production and continuous R&D investment - Company's core technologies revolve around the entire PEEK preparation process, including innovative polymerization reactions (using sodium salt alone, two-step synthesis), large reactor synthesis technology, end-capping technology, innovative detection and evaluation systems, and raw material control technology[76][77][78] - Purification technology innovations include low-temperature vacuum flash distillation and strong acid slow-release technology, effectively reducing costs, minimizing pollution, and improving product purity[78][79] - High-purity PEEK production technology innovations include pure resin gel filtration technology, effectively removing gel substances to provide high-purity PEEK pellets for high-end applications[78] - Composite modification technology innovations include antistatic PEEK modification technology and high-specific torque extrusion granulation technology, solving challenges of uneven dispersion of nano-materials and blending high-viscosity systems[79][80] - Ultra-fine powder production technology innovations include low-temperature grinding ultra-fine powder technology and ultra-fine powder microstructure grinding technology, capable of grinding powders finer than 1000 mesh, expanding applications such as 3D printing[80] - During the reporting period, the company added 1 new patent (1 invention patent), accumulating a total of 35 patents (26 invention patents)[82] R&D Investment (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Employee Compensation | 10,146,923.36 | 5,530,589.97 | 83.47 | | Materials | 4,563,275.84 | 3,641,494.19 | 25.31 | | Depreciation and Amortization | 3,079,413.04 | 2,399,844.03 | 28.32 | | Technical Service Fees | 201,732.82 | 1,457,640.40 | -86.17 | | Other | 885,041.40 | 640,287.25 | 38.23 | | Total | 18,876,386.46 | 13,669,855.84 | 38.09 | | Of which: Expensed R&D Investment | 16,796,915.20 | 13,669,855.84 | 22.88 | | Capitalized R&D Investment | 2,079,471.26 | - | 100.00 | - Total R&D investment increased by 38.09%, mainly due to increased R&D material consumption, and an increase in R&D personnel and their compensation[87] - The medical-grade PEEK product project has transitioned from research to development phase, with 2.0795 million yuan in capitalized R&D investment this period[88] R&D Project Status (Partial) | No. | Project Name | Estimated Total Investment (RMB in thousands) | Current Period Investment (RMB in thousands) | Cumulative Investment (RMB in thousands) | Progress or Stage Results | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Medical-grade PEEK Product | 4,000.00 | 207.95 | 1,380.16 | Development Stage | | 3 | Preparation of Fully Domestic Carbon Fiber Reinforced PEEK Composite Materials | 1,500.00 | 251.68 | 767.57 | Development Stage | | 5 | PEEK Modified Materials in Automotive and Semiconductor Fields Key Technology Development Project | 1,989.40 | 242.40 | 296.02 | Development Stage | | 7 | Pilot Project for Domestic and Autonomous Production of Polyaryletherketone Raw Materials | 3,000.00 | 544.27 | 685.03 | Development Stage | R&D Personnel (H1 2025) | Indicator | Current Period Number | Prior Period Number | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 106 | 58 | | R&D Personnel as % of Total Company Personnel (%) | 22.84 | 17 | | Total R&D Personnel Compensation (RMB) | 11,091,270.56 | 5,530,589.97 | | Average R&D Personnel Compensation (RMB) | 104,634.63 | 95,355.00 | | PhD Candidates (persons) | 10 | - | | Master's Candidates (persons) | 16 | - | | Bachelor's Degree (persons) | 59 | - | | Associate Degree and Below (persons) | 21 | - | IV. Risk Factors This section details various operational risks, including talent loss, technology leakage, gross margin fluctuations, inventory, receivables, project implementation, policy changes, raw material supply, and macroeconomic factors - The company faces the risk of technical talent loss, as the stability of core technical personnel is crucial for the company[94] - High risk of core technology leakage, as large-scale industrial production of PEEK relies on extensive accumulation of process parameters, and technology loss could weaken the company's competitiveness[95] - The company's gross margin remained high during the reporting period (44.42%), but there is a risk of gross margin fluctuations due to intensified market competition, declining product prices, or rising raw material prices[97] - Ending inventory book value is 157.6038 million yuan, accounting for 17.54% of current assets, posing risks of large inventory amounts and impairment[99] - Implementation of fundraising projects may face adverse changes in industry policies, market environment, technological innovation, customer demand, and the risk that new costs and expenses cannot be absorbed, leading to a decline in profitability[101][102] - The company's core raw material fluoroketone has relatively few suppliers, leading to concentrated procurement and raw material supply risks[104] - Changes in the international political and economic environment and escalating trade frictions may hinder the company's overseas sales, adversely affecting operating revenue growth[105] V. Key Operating Performance During the Reporting Period This section analyzes changes in major financial statement items, asset-liability structure, investment activities, and subsidiary operations, reflecting the company's efforts amidst declining revenue and profit (I) Main Business Analysis This section analyzes changes in main business financial items, showing declines in revenue and cost but significant increases in selling, administrative, and R&D expenses, leading to a substantial profit drop Financial Statement Item Change Analysis (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 131,282,422.94 | 134,099,232.36 | -2.10 | | Operating Cost | 72,968,623.44 | 80,239,344.92 | -9.06 | | Taxes and Surcharges | 1,065,137.10 | 747,399.98 | 42.51 | | Selling Expenses | 7,975,163.52 | 5,368,996.85 | 48.54 | | Administrative Expenses | 29,095,893.14 | 23,608,895.82 | 23.24 | | Financial Expenses | -146,637.55 | -4,997,415.23 | 97.07 | | R&D Expenses | 16,796,915.20 | 13,669,855.84 | 22.88 | | Other Income | 787,196.11 | 2,658,706.38 | -70.39 | | Investment Income | 3,990,526.96 | 1,297,820.55 | 207.48 | | Net Cash Flow from Operating Activities | -16,487,617.28 | 4,030,174.59 | -509.10 | | Net Cash Flow from Investing Activities | -85,475,969.03 | -17,646,946.49 | -384.37 | | Net Cash Flow from Financing Activities | -12,550,138.35 | 26,560,376.98 | -147.25 | - Operating revenue decreased by 2.10%, mainly due to slight changes in product category structure and sales volume[108] - Operating cost decreased by 9.06%, mainly due to the company's deepened PEEK main business development, driving cost reduction, efficiency improvement, and lower raw material prices[108] - Selling expenses, administrative expenses, and R&D expenses increased by 48.54%, 23.24%, and 22.88% respectively, primarily due to increased personnel compensation, office expenses, and R&D investment[108] - Net cash flow from operating activities decreased by 509.10% year-on-year, mainly due to increased purchases of goods and payments to employees[108] (III) Analysis of Assets and Liabilities This section analyzes changes in the company's assets and liabilities, showing decreases in some items and significant increases in others, reflecting R&D and construction investments Asset and Liability Status Changes (Period-end vs Prior Year-end) | Item Name | Current Period-end Amount (RMB) | Current Period-end as % of Total Assets | Prior Year-end Amount (RMB) | Prior Year-end as % of Total Assets | Change from Prior Year-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 437,581,754.08 | 32.76 | 552,095,478.74 | 40.76 | -20.74 | | Prepayments | 13,012,700.48 | 0.97 | 8,503,103.20 | 0.63 | 53.03 | | Fixed Assets | 217,495,857.24 | 16.28 | 121,980,201.89 | 9.01 | 78.30 | | Construction in Progress | 99,661,012.86 | 7.46 | 138,735,044.76 | 10.24 | -28.16 | | Development Expenditures | 4,594,530.65 | 0.34 | 2,515,059.39 | 0.19 | 82.68 | | Other Non-Current Assets | 34,666,503.16 | 2.60 | 18,325,948.68 | 1.35 | 49.77 | | Short-Term Borrowings | 5,890,956.14 | 0.44 | 15,970,508.99 | 1.18 | -63.11 | | Other Payables | 3,318,947.98 | 0.25 | 25,520,139.43 | 1.88 | -86.99 | - Prepayments increased by 53.03% year-on-year, mainly due to increased prepaid electricity and material costs[110] - Fixed assets increased by 78.30% year-on-year, mainly due to the completion and transfer of the Shanghai R&D Center office building from construction in progress[110] - Development expenditures increased by 82.68% year-on-year, mainly due to increased R&D investment in medical-grade PEEK products[110] - Short-term borrowings decreased by 63.11% year-on-year, mainly due to a reduction in discounted but unexpired non-6+9 acceptance bills[110] - Other payables decreased by 86.99% year-on-year, mainly due to the completion of dividend payments[110] (IV) Analysis of Investment Status This section discloses the company's financial assets measured at fair value, with trading financial assets increasing to 160.26 million yuan at period-end Financial Assets Measured at Fair Value (Period-end vs Period-beginning) | Asset Category | Period-beginning Amount (RMB) | Current Period Purchases (RMB) | Current Period Sales/Redemptions (RMB) | Period-end Amount (RMB) | | :--- | :--- | :--- | :--- | :--- | | Other (Trading Financial Assets) | 138,249,282.20 | 2,331,009,849.31 | 2,309,002,884.93 | 160,256,246.58 | (VI) Analysis of Major Holding and Participating Companies This section lists financial information for major subsidiaries, detailing their establishment, personnel changes, and planned capital increases Financial Information of Major Subsidiaries (H1 2025) | Company Name | Company Type | Registered Capital (RMB in thousands) | Total Assets (RMB in thousands) | Net Assets (RMB in thousands) | Operating Revenue (RMB in thousands) | Operating Profit (RMB in thousands) | Net Profit (RMB in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Shangkun | Subsidiary | 100.00 | 1,155.34 | 510.62 | 1,262.09 | 276.07 | 273.61 | | Dingyan Chemical | Subsidiary | 500.00 | 5,615.52 | 61.19 | 0 | -243.18 | -243.18 | | Houhe Medical | Subsidiary | 500.00 | 107.21 | 107.21 | 0 | -7.70 | -7.70 | | Zhongyan Shanghai | Subsidiary | 3,000.00 | 11,363.36 | 1,940.26 | 2.50 | -827.76 | -827.76 | | Zhongyan Shenzhen | Subsidiary | 1,000.00 | 2,753.55 | 491.27 | 2.46 | -366.44 | -366.44 | | Zhongyan New Materials | Subsidiary | 3,000.00 | 0 | 0 | 0 | 0 | 0 | - The company's wholly-owned subsidiary, Zhongyan Composite Materials (Shanghai) Technology Development Co., Ltd., established a second-tier subsidiary, Zhongyan Composite Materials (Shanghai) Aerospace Technology Development Co., Ltd., on January 16, 2025, with a registered capital of 10 million yuan[116] - The company plans to increase capital by 45 million yuan for Dingyan Chemical, 70 million yuan for Zhongyan Shanghai (including 43.204 million yuan from raised funds), and 20 million yuan for Zhongyan Shenzhen[117] Section IV Corporate Governance, Environment, and Society This section covers the company's governance structure, environmental responsibilities, and social contributions I. Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel There were no changes in the company's directors, supervisors, senior management, and core technical personnel during the reporting period II. Profit Distribution or Capital Reserve Conversion Plan The company's board of directors resolved that no profit distribution or capital reserve conversion will occur for this reporting period - No profit distribution or capital reserve conversion will be carried out for this reporting period[120] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period 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 is included in the list of enterprises required to disclose environmental information by law and provides an index for querying its report - Jilin Zhongyan High-Performance Polymer Materials Co., Ltd. is included in the list of enterprises required to disclose environmental information by law[121] - The environmental information disclosure report can be queried through the Enterprise Environmental Information Disclosure System[122] Section V Significant Matters This section details significant events and commitments affecting the company during the reporting period I. Fulfillment of Commitments This section details the fulfillment of various commitments by the company's actual controllers, shareholders, and related parties, all strictly adhered to on schedule - The company's controlling shareholder and actual controller Xie Huaijie, co-actual controller Xie Yuning, and Bi Xin committed not to transfer or entrust others to manage company shares held before this issuance for 42 months from the listing date[124] - Actual controllers and their concerted parties, shareholders holding 5% or more of shares, and directors, supervisors, and senior management committed that the reduction price would not be lower than the issue price or the audited net asset value per share at the end of the previous fiscal year for two years after the lock-up period expires[128][131][133][136][137][140][142][144] - The company and its directors, supervisors, and senior management committed that the prospectus and other information disclosure materials contain no false records, misleading statements, or major omissions, and will bear legal responsibility[149][150][152] - The actual controller committed to avoid horizontal competition and not engage in businesses or activities identical, similar, or close to those of the company or its subsidiaries[164] - Related parties committed to minimize and reduce related party transactions with the company and its subsidiaries, and strictly adhere to related party transaction management systems[165] - All commitments were strictly fulfilled during the reporting period, with no instances of failure to perform on time[124][125][126] III. Irregular Guarantees There were no irregular guarantees by the company during the reporting period X. Significant Related Party Transactions During the reporting period, the company had no significant related party transactions concerning daily operations, asset/equity changes, joint investments, or financial dealings XI. Significant Contracts and Their Fulfillment This section discloses significant guarantees, primarily involving the company and its subsidiaries for subsidiaries, and joint liability guarantees provided by the actual controller couple Guarantees by the Company and its Subsidiaries for Subsidiaries | Guarantor | Guaranteed Party | Guarantee Amount (RMB in thousands) | Guarantee Start Date | Guarantee End Date | Has Guarantee Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Company Headquarters | Zhongyan Composite Materials (Shanghai) Technology Development Co., Ltd. | 3,700.00 | 2024-11-18 | 2029-11-18 | No | - At the end of the reporting period, the company's total guarantee amount was 37 million yuan, accounting for 3.14% of its net assets[173] - The company's actual controllers, Xie Huaijie and Zhang Yunping, provided joint liability guarantees for the company's loans from Industrial Bank, with one 70 million yuan guarantee valid until July 5, 2026, and another 120 million yuan guarantee fulfilled on May 19, 2025[176] XII. Explanation of Progress in Use of Raised Funds This section details the overall use of raised funds, specifics of fundraising projects, cash management of idle funds, and proposals for adjusting investment structures and using self-owned funds for R&D Overall Use of Raised Funds (As of Report End) | Source of Raised Funds | Net Raised Funds (RMB in thousands) | Total Investment Pledged in Prospectus (RMB in thousands) | Total Over-Raised Funds (RMB in thousands) | Cumulative Raised Funds Invested as of Report End (RMB in thousands) | Cumulative Raised Funds Investment Progress (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 79,971.34 | 45,510.26 | 34,461.08 | 42,857.89 | 53.59 | Detailed Use of Fundraising Projects (As of Report End) | Project Name | Planned Total Investment in Prospectus (RMB in thousands) | Cumulative Investment as of Report End (RMB in thousands) | Investment Progress (%) | | :--- | :--- | :--- | :--- | | Annual Production of 5,000 Tons of PEEK Deep Processing Series Products Comprehensive Plant (Phase II) Project | 22,364.57 | 10,453.16 | 46.74 | | Innovation and Technology R&D Center Project | 5,825.29 | 423.20 | 7.26 | | Shanghai Carbon Fiber PEEK Composite Material R&D Center Project | 7,320.40 | 5,246.54 | 71.67 | | Supplementary Working Capital Project | 10,000.00 | 10,301.90 | 103.02 | | Over-Raised Funds Project (Supplementary Working Capital) | 34,461.08 | 16,433.09 | 47.69 | - The company and its subsidiaries used idle raised funds not exceeding 550 million yuan for cash management, with a balance of 334.97 million yuan at the end of the reporting period[180][182] - The company agreed to adjust the internal investment structure of the "Shanghai Carbon Fiber PEEK Composite Material R&D Center Project" and use its own funds to pay R&D personnel expenses for this project, with subsequent equivalent replacement from raised funds[181] Section VI Share Changes and Shareholder Information This section provides details on changes in the company's share capital and shareholder structure I. Share Capital Changes This section discloses the company's share capital changes, primarily due to the listing and circulation of some restricted IPO shares on March 20, 2025 Share Change Status (As of Report End) | Category | Number Before Change (shares) | Proportion Before Change (%) | Increase/Decrease in This Change (shares) | Number After Change (shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 54,079,233 | 44.44 | -977,786 | 53,101,447 | 43.64 | | Of which: Domestic Natural Persons | 49,531,316 | 40.71 | -977,786 | 48,553,530 | 39.90 | | II. Unrestricted Tradable Shares | 67,600,767 | 55.56 | 977,786 | 68,578,553 | 56.36 | | III. Total Shares | 121,680,000 | 100 | 0 | 121,680,000 | 100 | - During the reporting period, 977,786 restricted shares from the company's initial public offering became tradable on March 20, 2025[187] Restricted Share Change Status (H1 2025) | Shareholder Name | Restricted Shares at Period-beginning (shares) | Restricted Shares Released This Period (shares) | Restricted Shares at Period-end (shares) | Reason for Restriction | Date of Release | | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Liping | 760,700 | 760,700 | 0 | Pre-IPO Shares | 2025-3-20 | | Gao Fang | 184,736 | 184,736 | 0 | Pre-IPO Shares | 2025-3-20 | | Li Zhenfang | 32,350 | 32,350 | 0 | Pre-IPO Shares | 2025-3-20 | | Total | 977,786 | 977,786 | 0 | / | / | II. Shareholder Information This section discloses the total number of shareholders, top ten shareholders' holdings, and restricted share details, including their relationships, as of the reporting period end - As of the end of the reporting period, the total number of ordinary shareholders was 13,005[190] Top Ten Shareholders' Shareholding (As of Report End) | Shareholder Name | Shares Held at Period-end (shares) | Proportion (%) | Restricted Shares Held (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Xie Huaijie | 36,928,382 | 30.35 | 36,928,382 | Domestic Natural Person | | Pang Jinxiang | 9,965,019 | 8.19 | 9,965,019 | Domestic Natural Person | | Wang Xiuyun | 3,824,100 | 3.14 | 0 | Domestic Natural Person | | Jilin Jinzheng New Energy Technology Co., Ltd. | 3,199,300 | 2.63 | 3,199,300 | Domestic Non-State-Owned Legal Person | | Liu Guoliang | 2,805,050 | 2.31 | 0 | Domestic Natural Person | | Xie Yuning | 1,649,579 | 1.36 | 1,629,579 | Domestic Natural Person | | Wang Yanlong | 1,463,542 | 1.20 | 0 | Domestic Natural Person | | Haitong Innovation Securities Investment Co., Ltd. | 1,348,617 | 1.11 | 1,348,617 | State-Owned Legal Person | | Lv Zhenyue | 1,215,000 | 1.00 | 0 | Domestic Natural Person | | Changchun Science and Technology Big Market Venture Capital Co., Ltd. | 1,113,821 | 0.92 | 0 | Domestic Non-State-Owned Legal Person | - Xie Huaijie, Pang Jinxiang, and Jinzheng New Energy are concerted parties; Xie Huaijie and Xie Yuning are father and daughter; Wang Xiuyun and Liu Guoliang are husband and wife[195] Top Ten Restricted Shareholders' Shareholding and Restricted Conditions (As of Report End) | No. | Restricted Shareholder Name | Restricted Shares Held (shares) | Tradable Date | Restriction Condition | | :--- | :--- | :--- | :--- | :--- | | 1 | Xie Huaijie | 36,928,382 | 2027-3-20 | Initial Public Offering Restriction | | 2 | Pang Jinxiang | 9,965,019 | 2027-3-20 | Initial Public Offering Restriction | | 3 | Jilin Jinzheng New Energy Technology Co., Ltd. | 3,199,300 | 2027-3-20 | Initial Public Offering Restriction | | 4 | Xie Yuning | 1,629,579 | 2027-3-20 | Initial Public Offering Restriction | | 5 | Haitong Innovation Securities Investment Co., Ltd. | 1,348,617 | 2025-9-20 | Initial Public Offering Restriction | | 6 | Bi Xin | 30,550 | 2027-3-20 | Initial Public Offering Restriction | III. Information on Directors, Supervisors, Senior Management, and Core Technical Personnel This section discloses shareholding changes for current and former directors, supervisors, senior management, and core technical personnel, noting a decrease for Director and CFO Yang Liping due to market transactions Shareholding Changes of Director and CFO Yang Liping | Name | Position | Shares Held at Period-beginning (shares) | Shares Held at Period-end (shares) | Change in Shares During Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Liping | Director, CFO | 760,700 | 735,700 | -25,000 | Secondary Market Transactions | Section VII Bond-Related Information This section provides information regarding the company's bonds and debt financing instruments 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 VIII Financial Report This section presents the company's financial statements and related notes for the reporting period I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5] II. Financial Statements This section provides the company's consolidated and parent company financial statements, reflecting its financial position, operating results, and cash flows - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were 1.336 billion yuan, total liabilities were 156.70 million yuan, and total owners' equity was 1.179 billion yuan[206][208] - The consolidated income statement shows that for the first half of 2025, operating revenue was 131.28 million yuan, and net profit attributable to shareholders of the listed company was 7.03 million yuan[214][215] - The consolidated cash flow statement shows that for the first half of 2025, net cash flow from operating activities was -16.49 million yuan, net cash flow from investing activities was -85.48 million yuan, and net cash flow from financing activities was -12.55 million yuan[221] III. Company Basic Information This section outlines the company's registration, business nature, main activities, and the scope of its consolidated financial statements - The company was initiated and established on January 31, 2015, and listed on the Shanghai Stock Exchange on September 20, 2023[234] - The company's registered capital is 121.68 million RMB, with Xie Huaijie as the legal representative[234] - The company belongs to the chemical raw materials and chemical products manufacturing industry, primarily engaged in the R&D, production, and sales of special engineering plastic Polyetheretherketone (PEEK) series products[234] - A total of 6 subsidiaries were included in the scope of consolidation for this period[234] IV. Basis of Financial Statement Preparation This section states that the company's financial statements are prepared in accordance with enterprise accounting standards and CSRC regulations, based on the going concern assumption - Financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and the "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports (Revised 2023)" by the China Securities Regulatory Commission[235] - 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 about its going concern ability, thus the financial statements are prepared on a going concern basis[237] V. Significant Accounting Policies and Accounting Estimates This section details the significant accounting policies and estimates adopted by the company in preparing its financial statements, covering various financial and operational aspects - The company formulated specific accounting policies and estimates based on its actual production and operation characteristics, primarily reflected in the provision for bad debts of receivables, inventory valuation methods, revenue recognition and measurement, depreciation of fixed assets, and amortization of intangible assets[238] - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[266] - The company measures loss provisions for all contract assets, notes receivable, and accounts receivable arising from transactions regulated by revenue standards at an amount equal to the expected credit losses over the entire lifetime[280] - The company's PEEK product sales business is a performance obligation satisfied at a point in time; domestic sales revenue is recognized upon product delivery and receipt of customer acknowledgment, while export sales revenue is recognized upon completion of customs declaration, shipment, and receipt of the bill of lading[346][348] - The company applies simplified treatment for short-term leases and leases of low-value assets, not recognizing right-of-use assets and lease liabilities[356] VI. Taxation This section lists the company's main tax categories and rates, along with tax preferential policies enjoyed by the company and its subsidiaries Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales revenue of goods, service revenue | 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax actually paid | 5% | | Education Surcharge | Amount of turnover tax actually paid | 3% | | Local Education Surcharge | Amount of turnover tax actually paid | 2% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | - The company obtained its high-tech enterprise certificate on November 29, 2022, and is subject to a corporate income tax rate of 15% during the reporting period[363] - Shanghai Shangkun New Material Technology Co., Ltd., Jilin Houhe Medical Technology Co., Ltd., and Zhongyan Composite Materials (Shenzhen) Technology Co., Ltd. meet the conditions for small and micro-enterprises and are subject to a corporate income tax rate of 20%[363] - The company's exported PEEK and other products are eligible for a 13% export tax rebate rate[363] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, covering assets, liabilities, equity, income, expenses, and cash flows - As of June 30, 2025, the monetary funds balance was 437.58 million yuan, a 20.74% decrease from the beginning of the period, with no pledged, frozen, or potentially unrecoverable funds[366] - The ending balance of trading financial assets was 160.26 million yuan, an increase of 15.92% from the beginning of the period[110][368] - The ending balance of notes receivable was 71.07 million yuan, a 20.30% decrease from the beginning of the period, with bank acceptance bills accounting for 96.31%[110][369][374] - The ending balance of accounts receivable was 43.88 million yuan, with a bad debt provision of 3.06 million yuan, and accounts aged within 1 year accounting for the highest proportion[110][382][385] - The ending balance of inventory was 157.60 million yuan, mainly composed of raw materials, work-in-progress, and finished goods[110][416] - The ending book value of fixed assets was 217.50 million yuan, a 78.30% year-on-year increase, mainly due to the completion and transfer of the Shanghai R&D Center office building[110][431] - The ending balance of construction in progress was 99.66 million yuan, a 28.16% year-on-year decrease, with major projects including the 5000-ton PEEK (Phase II) project and the Shanghai Carbon Fiber PEEK Composite Material project[110][435] - The ending balance of short-term borrowings was 5.89 million yuan, a 63.11% year-on-year decrease, mainly due to a reduction in discounted but unexpired non-6+9 acceptance bills[110][462] - The ending balance of employee compensation payable was 7.97 million yuan, with an increase of 43.99 million yuan this period, primarily for salaries, bonuses, allowances, and subsidies[473] - The ending balance of retained earnings was 143.45 million yuan, with net profit attributable to parent company owners for this period being 7.03 million yuan[496] - Investment income for this period was 3.99 million yuan, mainly from matured structured deposit wealth management products[512] - Net cash flow from operating activities was -16.49 million yuan, primarily affected by increased purchases of goods and payments to employees[108][539] VIII. R&D Expenditures This section discloses the company's R&D expenditures, including expensed and capitalized investments, and lists ongoing projects eligible for capitalization R&D Expenditures (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 10,146,923.36 | 5,530,589.97 | | Materials | 4,563,275.84 | 3,641,494.19 | | Depreciation and Amortization | 3,079,413.04 | 2,399,844.03 | | Technical Service Fees | 201,732.82 | 1,457,640.40 | | Other | 885,041.40 | 640,287.25 | | Total | 18,876,386.46 | 13,669,855.84 | | Of which: Expensed R&D Expenditures | 16,796,915.20 | 13,669,855.84 | | Capitalized R&D Expenditures | 2,079,471.26 | - | - The medical-grade PEEK product project increased capitalized R&D investment by 2.079 million yuan this period, with an ending balance of 4.595 million yuan[553] IX. Changes in Consolidation Scope This section explains changes in the company's consolidation scope, primarily due to the establishment of a new wholly-owned grandchild company - A new wholly-owned grandchild company, Zhongyan Composite Materials (Shanghai) Aerospace Technology Development Co., Ltd., was established this period and included in the consolidated financial statements[553] X. Interests in Other Entities This section lists the composition of the company's enterprise group, including the main operating locations, registered capital, business nature, and shareholding percentages of each subsidiary Subsidiary Composition (Partial) | Subsidiary Name | Main Operating Location | Registered Capital (RMB) | Business Nature | Shareholding Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Shanghai Shangkun New Material Technology Co., Ltd. | Shanghai | 100.00 | Sales of PEEK products | 100.00 | | Jilin Houhe Medical Technology Co., Ltd. | Changchun, Jilin | 500.00 | Medical research and experimental development; new material technology R&D | 100.00 | | Jilin Dingyan Chemical Co., Ltd. | Siping, Jilin | 500.00 | Chemical product production and sales | 100.00 | | Zhongyan Composite Materials (Shanghai) Technology Development Co., Ltd. | Shanghai | 3,000.00 | New material technology R&D; sales of engineering plastics and synthetic resins | 100.00 | | Zhongyan Composite Materials (Shenzhen) Technology Co., Ltd. | Shenzhen, Guangdong | 1,000.00 | Manufacturing of engineering plastics and synthetic resins; sales of engineering plastics and synthetic resins | 100.00 | | Zhongyan (Changchun) New Material Technology Co., Ltd. | Changchun, Jilin | 3,000.00 | New material R&D, production, and sales | 100.00 | XI. Government Grants This section discloses the company's liability items related to government grants, primarily deferred income related to assets, with an ending balance of 3.81 million yuan Liability Items Related to Government Grants (Period-end) | Financial Statement Item | Period-beginning Balance (RMB) | Current Period Decrease (RMB) | Period-end Balance (RMB) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 4,034,371.66 | 229,080.68 | 3,805,290.98 | Asset-related | XII. Risks Related to Financial Instruments This section details the company's financial instrument risks, including credit, liquidity, and market risks, and outlines the management policies and measures adopted - The company faces credit risk, liquidity risk, and market risk (exchange rate risk, interest rate risk, price risk)[561] - The company manages credit risk by formulating credit policies, continuously monitoring accounts receivable collection, and evaluating customer creditworthiness[562] - The company manages liquidity risk through cash flow forecasting, monitoring funding needs, obtaining standby funding commitments, and entering into credit line agreements with banks[564] - The company's main business is settled in RMB, but foreign currency assets and future foreign currency transactions (primarily USD) pose exchange rate risk[566] - The company's interest rate risk primarily arises from bank borrowings, managed by monitoring interest rate levels and adjusting borrowing scales[566] - The company sells PEEK and other chemical products, facing price risk from commodity price fluctuations[566] XIII. Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value at the end of the reporting period, primarily trading financial assets Fair Value of Assets and Liabilities Measured at Fair Value (Period-end) | Item | Level 2 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | I. Recurring Fair Value Measurement | 160,256,246.58 | 3,289,047.03 | 163,545,293.61 | | (I) Trading Financial Assets | - | - | - | | 1. Financial assets measured at fair value through profit or loss | 160,256,246.58 | 3,289,047.03 | 163,545,293.61 | | (1) Debt instrument investments | 160,256,246.58 | 3,289,047.03 | 163,545,293.61 | | Total assets measured at recurring fair value | 160,256,246.58 | 3,289,047.03 | 163,545,293.61 | XIV. Related Parties and Related Party Transactions This section discloses the company's related parties, including the actual controller and spouse, and details related party guarantees accepted by the company - The company's actual controller Xie Huaijie directly holds 30.35% of the company's shares, and indirectly holds 2.60% through Jilin Jinzheng New Energy Technology Co., Ltd., controlling a total of 32.95% of voting shares[572] - Xie Huaijie's spouse, Zhang Yunping, is another related party of the company[572] Related Party Guarantees (Company as Guaranteed Party) | Guarantor | Guarantee Amount (RMB) | Guarantee Start Date | Guarantee End Date | Has Guarantee Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Xie Huaijie, Zhang Yunping | 70,000,000.00 | 2021-07-06 | 2026-07-05 | No | | Xie Huaijie, Zhang Yunping | 120,000,000.00 | 2022-05-20 | 2025-05-19 | Yes | - Key management personnel compensation amounted to 2.6068 million yuan this period[579] XVI. Commitments and Contingencies This section states that the company had no significant commitments or contingencies requiring disclosure at the end of the reporting period XVII. Events After the Balance Sheet Date This section discloses the board's approval of proposals to extend and change the implementation methods of fundraising projects after the balance sheet date, pending shareholder approval - The company's board of directors approved proposals to extend the "Annual Production of 5,000 Tons of PEEK Deep Processing Series Products Comprehensive Plant (Phase II) Project" and the "Innovation and Technology R&D Center Project"[582] - The company agreed to change the implementation method of the "Shanghai Carbon Fiber PEEK Composite Material R&D Center Project" from providing loans to increasing capital in Zhongyan Shanghai[582] - The aforementioned matters still require approval by the company's general meeting of shareholders[582] XVIII. Other Significant Matters This section explains that due to its singular business, the company manages PEEK product R&D, production, and sales as a whole, thus no segment information is presented - The company's business is singular, primarily R&D, production, and sales of PEEK products, which management treats as a whole, therefore no segment information is presented[584] XIX. Notes to Parent Company Financial Statement Major Items This section provides detailed notes for major items in the parent company's financial statements, reflecting its financial position and operating results - Parent company's accounts receivable balance at period-end was 45.79 million yuan, with a bad debt provision of 3.05 million yuan[588] - Parent company's other receivables balance at period-end was 115.35 million yuan, mainly temporary borrowings to subsidiaries[596][601] - Parent company's long-term equity investment in subsidiaries at period-end was 45.86 million yuan, an increase of 4 million yuan this period, primarily for additional investment in Zhongyan Composite Materials (Shenzhen) Technology Co., Ltd[606] - Parent company's operating revenue for the first half of 2025 was 128.61 million yuan, and operating cost was 72.94 million yuan[611] - Parent company's investment income for the first half of 2025 was 3.89 million yuan, mainly from matured structured deposit wealth management products[612] XX. Supplementary Information This section provides supplementary information, including a detailed statement of non-recurring gains and losses and key financial indicators Detailed Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -17,911.41 | | Government grants recognized in current profit or loss | 469,354.83 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 4,246,773.54 | | Other non-operating income and expenses | -199,618.98 | | Less: Income tax impact | 674,789.70 | | Total | 3,823,808.28 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (RMB/share) | | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders of the company | 0.60 | 0.06 | | Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses | 0.27 | 0.03 |