鲁北化工(600727) - 2025 Q2 - 季度财报

Important Notice The Board ensures the semi-annual report's authenticity, accuracy, and completeness, while advising investors on risks associated with forward-looking statements - The company's Board of Directors, directors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming joint and several liability[3] - This semi-annual report is unaudited[5] - The profit distribution or capitalization of capital reserve plan for this reporting period is "None"[6] - Forward-looking statements regarding future plans and development strategies do not constitute substantive commitments to investors, who should be aware of investment risks[6] - There is no non-operational occupation of funds by the controlling shareholder or other related parties[7] - There are no instances of providing external guarantees in violation of prescribed decision-making procedures[8] Definitions This section defines commonly used terms in the report, including the Company, CSRC, Lubei Group, Jinjiang Group, and its subsidiaries - "Company," "the Company," or "Listed Company" refers to Shandong Lubei Chemical Co, Ltd[16] - "Lubei Group" refers to Shandong Lubei Enterprise Group Corporation[16] - The report defines names of related parties or subsidiaries such as Jinjiang Group, Jinsheng Chemical, Mengda Titanium, Binhua Changfeng, Jinyi Technology, Jinhai Titanium, Xianghai Technology, Chuangling Technology, Yuanhai Technology, Zirconium Titanium New Materials, and Lubei Supply Chain[16] Company Profile and Key Financial Indicators This section details the company's basic information, financial data, and non-recurring profit and loss items, showing a year-on-year decline in operating revenue and total profit - The company's Chinese name is 山东鲁北化工股份有限公司, its Chinese abbreviation is 鲁北化工, and its legal representative is Chen Shuchang[13] - The company's registered address is Chengkou Town, Wudi County, Shandong Province, and its website is http://www.lubeichem.com[15](index=15&type=chunk) - The company's A-shares are listed on the Shanghai Stock Exchange under the stock name Lubei Chemical and stock code 600727[18] Company Information This section provides the company's basic registration information, including its Chinese name, abbreviation, English name, and legal representative - The company's Chinese name is Shandong Lubei Chemical Co, Ltd, with the Chinese abbreviation Lubei Chemical[13] - The company's legal representative is Chen Shuchang[13] Contact Persons and Methods This section lists the names and contact details for the company's Board Secretary and Securities Affairs Representative - The Board Secretary is Lin Hongbo, and the Securities Affairs Representative is Meng Lingzhen[14] - The contact address is Chengkou Town, Wudi County, Shandong Province, with the phone and fax number 0543-6451265 and email lubeichem@lubeichem.com[14] Changes in Basic Information This section outlines the historical changes to the company's registered address and confirms its current office location and website - The company's registered address is Chengkou Town, Wudi County, Shandong Province, and has remained unchanged since July 2011[15] - The office address is the same as the registered address, with a postal code of 251909 and the company website http://www.lubeichem.com[15](index=15&type=chunk) Changes in Information Disclosure and Report Availability This section specifies the designated newspapers, website, and location for the company's semi-annual report disclosure - The designated newspapers for information disclosure are China Securities Journal and Shanghai Securities News[17] - The website for publishing the semi-annual report is www.sse.com.cn[17](index=17&type=chunk) - The semi-annual report is available at the company's Securities Department[17] Company Stock Profile This section provides basic information about the company's stock, including its type, listing exchange, name, and code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[18] - The stock name is Lubei Chemical, and the stock code is 600727[18] Key Accounting Data and Financial Indicators This section presents key financial data, showing year-on-year declines in revenue, total profit, and net profit attributable to shareholders Key Accounting Data (Current Period Jan-Jun) | Indicator | Amount (RMB) | Same Period Last Year (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,578,215,450.84 | 2,815,483,872.96 | -8.43 | | Total Profit | 156,062,967.86 | 230,561,797.09 | -32.31 | | Net Profit Attributable to Shareholders | 78,193,466.18 | 146,477,616.87 | -46.62 | | Net Cash Flow from Operating Activities | 170,679,134.86 | 213,516,262.26 | -20.06 | | Net Assets Attributable to Shareholders (Period End) | 3,236,957,015.27 | 3,179,945,958.81 | 1.79 | | Total Assets (Period End) | 8,977,651,720.70 | 8,755,249,676.00 | 2.54 | Key Financial Indicators (Current Period Jan-Jun) | Indicator | Current Period | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | 0.15 | 0.28 | -46.43 | | Diluted Earnings Per Share (RMB/Share) | 0.15 | 0.28 | -46.43 | | Basic EPS after Non-recurring Items (RMB/Share) | 0.15 | 0.27 | -44.44 | | Weighted Average Return on Equity (%) | 2.44 | 4.94 | Decreased by 2.50 percentage points | | Weighted Average ROE after Non-recurring Items (%) | 2.39 | 4.84 | Decreased by 2.45 percentage points | Non-recurring Profit and Loss Items and Amounts (Current Period) | Non-recurring Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 2,696,732.38 | | Government Grants Included in Current Profit/Loss | 1,325,245.52 | | Fair Value Changes in Financial Assets/Liabilities Held by Non-financial Enterprises | 580,158.11 | | Other Non-operating Income and Expenses | -5,716,307.62 | | Less: Income Tax Impact | 60,883.24 | | Less: Minority Interest Impact (After Tax) | -2,793,621.77 | | Total | 1,618,566.92 | Management Discussion and Analysis This section details the company's operations, financial performance, and risks, highlighting efforts to improve performance despite declines in revenue and profit - The company's main business segments are titanium dioxide, methane chloride, fertilizers, cement, and salt[24] - During the reporting period, the company achieved operating revenue of RMB 2.58 billion, a decrease of 8.43% YoY; total profit of RMB 156.06 million, a decrease of 32.31% YoY; and net profit attributable to shareholders of RMB 78.19 million, a decrease of 46.62% YoY[50] - The company implemented measures such as scientific production organization, process optimization, internal potential tapping, comprehensive cost reduction, new product R&D, and market expansion to achieve significant cost reductions and steady benefit improvements[50] - The company's core competitiveness includes advantages in location and resources, circular economy, technology, and brand and marketing[56][57][58][59] - The company faces risks related to production safety, environmental protection, product price fluctuations, rising raw material prices, and natural disasters[71][73][75] Industry and Main Business Overview This section details the company's five main business segments within the chemical industry, its operational models, and market conditions - The company's main businesses are segmented into titanium dioxide, methane chloride, fertilizers, cement, and salt, with products widely used in various sectors[24] - The titanium dioxide business has an annual production capacity of over 200,000 tons of sulfate process titanium dioxide and 60,000 tons of chloride process titanium dioxide[24] - The methane chloride business has an annual capacity of over 370,000 tons, holding about 10% of the national market share and 80% of the South China market share for dichloromethane[27] - The fertilizer business, focusing on phosphate and compound fertilizers, utilizes patented waste resource utilization technologies, positioning itself as a resource-saving and environmentally friendly enterprise[29] - The salt business, producing crude salt and bromine, leverages coastal seawater resources to create an integrated industrial chain of "cooling, desalination, bromine extraction, and salt production"[31] - The company's procurement model involves public bidding and negotiation; its production model emphasizes continuous operation and recycling; and its sales model includes distribution, direct sales, and agency[33][34][36] - The titanium dioxide industry saw steady output growth and increased exports; methane chloride prices fell due to downstream refrigerant impacts; the fertilizer and cement industries faced oversupply and weak demand, while crude salt prices dropped and bromine prices rose[39][40][42][45][46][47][49] Discussion and Analysis of Operations The company maintained stable operations amid economic challenges by focusing on cost reduction, market optimization, and innovation, though overall performance declined H1 2025 Operating Performance | Indicator | Amount (RMB 10,000) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 257,821.55 | -8.43 | | Total Profit | 15,606.30 | -32.31 | | Net Profit Attributable to Shareholders | 7,819.35 | -46.62 | - The company achieved significant cost reductions and steady benefit improvements through a series of measures including scientific production organization, process optimization, internal potential tapping, comprehensive cost reduction, new product R&D, and market expansion[50] - Titanium dioxide products added over 30 new customers, with export sales to end-users increasing YoY; the salt chemical division's profit was driven by rising bromine prices; fertilizer sales grew by 40.82% YoY through a combination of domestic and international sales[51] - Key projects are progressing as planned, including the Xianghai Technology 60,000-ton chloride process titanium dioxide expansion, the 600,000-ton sulfur-to-acid and waste heat power generation project, and the Zirconium Titanium New Materials 600,000-ton zircon-titanium ore dressing project[51][52] - Xianghai Technology invested in Inner Mongolia Yuxiao Mengda Titanium Industry Co, Ltd to secure the supply of high-titanium slag and ilmenite raw materials[52] - A collaborative project on "New Technology for Synergistic Treatment of Sulfur-containing Calcium Waste and Industrialization of Sulfur-Phosphorus-Titanium-Calcium-Lithium Co-production Ecological Industrial Model" won the second prize of the 2024 Shandong Provincial Science and Technology Progress Award[53] - The company strengthened party-building leadership, abolished the supervisory board to integrate its functions into the audit committee, and successfully completed the 2024 cash dividend distribution[54] Analysis of Core Competitiveness The company's core competitiveness is built on its unique location, resource advantages, mature circular economy model, and strong brand network - Located in northern Shandong near Huanghua Port, the company benefits from low transportation costs and policy support from its position in multiple economic zones[56] - The company possesses a long coastline and a million-ton salt field, enabling comprehensive seawater utilization for "cooling-desalination-bromine extraction-salt production," and has abundant marine and coal resources[56] - The company has established a technologically advanced gypsum-to-sulfuric acid co-production cement plant, enabling the recycling of waste acid from titanium dioxide and petrochemical processes[57] - The company and its subsidiary Jinhai Titanium have been recognized as "Green Factories" by the Ministry of Industry and Information Technology[57] - The company utilizes advanced titanium dioxide production processes with automated control, and its subsidiary Xianghai Technology masters core chloride process technology[58] - The company integrates production, sales, and R&D, with its "Lubei" and "Jinhai" brands recognized as China Well-known Trademarks[59] Key Operating Activities This section details the company's operational performance, highlighting decreased revenue and profit, increased construction in progress, and changes in asset and liability structures - Operating revenue decreased by 8.43% YoY, primarily due to reduced income from titanium dioxide and methane chloride products[61] - R&D expenses increased by 51.11% YoY, mainly due to increased investment in research and development[61] - Net cash flow from financing activities changed by 41.27% YoY, primarily due to an increase in bank borrowings[61] Changes in Assets and Liabilities (Period End vs. Previous Year End) | Item | Current Period End (RMB) | Change (%) | Reason | | :--- | :--- | :--- | :--- | | Construction in Progress | 333,979,427.16 | 88.12 | Increased investment in Phase II chloride process titanium dioxide and zircon-titanium ore dressing projects | | Contract Liabilities | 103,478,380.64 | -39.44 | Decrease in advance payments from customers | | Long-term Borrowings | 559,147,553.65 | 59.76 | Increase in bank loans | | Trading Financial Assets | 8,000,000.00 | -80.95 | Redemption of wealth management products | | Notes Receivable Financing | 52,382,477.00 | -55.34 | Decrease in bank acceptance bills received from major banks | | Prepayments | 290,011,583.48 | 43.91 | Prepayments for raw materials and equipment | - During the reporting period, the company made a capital injection of RMB 36 million in cash to its subsidiary Zirconium Titanium New Materials, holding a 70% stake[65] Financial Information of Major Subsidiaries (Unit: RMB 10,000) | Company Name | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Jinhai Titanium | 397,546.19 | 151,764.97 | 131,694.58 | 228.94 | 68.67 | | Xianghai Technology | 141,617.64 | 15,053.69 | 39,383.02 | 1,409.86 | 1,439.60 | | Jinyi Technology | 87,271.70 | 68,761.22 | 41,959.11 | 12,802.45 | 8,858.89 | - The company disposed of its subsidiary Jinan Shizhong District Hairong Micro-credit Co, Ltd, realizing an investment gain of RMB 526,300[71] Other Disclosures This section outlines potential major risks, including safety, environmental, price volatility, and natural disaster risks, along with the company's corresponding mitigation measures - As a chemical company, it faces risks of safety accidents and environmental pollution due to corrosive, toxic, and dusty production characteristics[71] - The company has strengthened safety management, implemented responsibility systems, controlled hazards and environmental factors, and promoted energy conservation and emission reduction[72] - The prices of major products (titanium dioxide, fertilizers, cement, crude salt) are subject to fluctuations and the risk of rising raw material costs[73] - The company has enhanced market analysis, expanded its market share, strengthened procurement price verification, and reduced material and energy consumption through technological innovation[74] - The production of crude salt and bromine is susceptible to natural climate conditions, posing risks from natural disasters and extreme weather[75] - The company monitors weather forecasts for early warnings, implements protective measures, and conducts emergency drills for natural disasters[75] Corporate Governance, Environment, and Society This section covers changes in directors and senior management, the absence of a semi-annual profit distribution plan, and the list of subsidiaries subject to mandatory environmental information disclosure - On May 9, 2025, the company completed its board and management transition, including abolishing the supervisory board, electing new directors, and appointing senior management[77] - The proposed semi-annual profit distribution plan is "No," with zero bonus shares, dividends, or transfers per 10 shares[78] - The company and three subsidiaries (Shandong Jinhai Titanium, Shandong Xianghai Titanium, Guangxi Tiandong Jinyi Technology) are included in the list of enterprises for mandatory environmental information disclosure[80] Changes in Directors and Senior Management This section lists the changes in the company's directors and senior management during the reporting period due to a board transition - During the reporting period, Xie Jun, Zhang Xiaoyan, Yuan Jinliang, Tian Xiangguo, Liu Zhengong, and Zhang Jinzeng resigned from their positions as directors, supervisors, or senior managers[77] - Chen Jinguo was elected as an employee director, Geng Guozhi and Wang Yuguo were elected as independent directors, and Lin Hongbo was appointed as the Board Secretary[77] - The changes were due to the company's board transition election on May 9, 2025, which included resolutions to abolish the supervisory board, elect directors, and appoint senior management[77] Profit Distribution or Capitalization of Capital Reserve Plan This section confirms that the company has not proposed a semi-annual profit distribution or capitalization of capital reserve plan - The company's proposed semi-annual profit distribution and capitalization of capital reserve plan is "No"[78] - The number of bonus shares, cash dividends (tax included), and capitalization shares per 10 shares are all 0[78] Environmental Information of Listed Companies and Key Subsidiaries on the Mandatory Disclosure List This section lists the company and three subsidiaries that are subject to mandatory environmental information disclosure and provides their respective query indexes - There are 4 entities on the list for mandatory environmental information disclosure[80] - These include Shandong Lubei Chemical Co, Ltd, Shandong Jinhai Titanium Resources Technology Co, Ltd, Shandong Xianghai Titanium Resources Technology Co, Ltd, and Guangxi Tiandong Jinyi Technology Co, Ltd[80] - The query index for their environmental information disclosure reports is the "Enterprise Environmental Information Disclosure System (Shandong)" or "Enterprise Environmental Information Disclosure System (Guangxi)"[80] Significant Matters This section confirms the fulfillment of commitments by the controlling shareholder, Lubei Group, and states the absence of fund occupation, irregular guarantees, or material litigation - Commitments from the controlling shareholder, Lubei Group, regarding resolving competition, related-party transactions, non-interference in management, and ensuring operational independence have been strictly fulfilled[83][84][85] - There was no non-operational occupation of funds by the controlling shareholder or other related parties[86] - There were no instances of providing external guarantees in violation of prescribed decision-making procedures[86] - The company had no material litigation or arbitration during the reporting period[87] Company's Total Guarantee Status (Unit: RMB 10,000) | Indicator | Amount | | :--- | :--- | | Guarantees for Subsidiaries Incurred During the Period | 104,167.72 | | Outstanding Guarantee Balance for Subsidiaries at Period End (B) | 104,167.72 | | Total Guarantee Amount (A+B) | 104,167.72 | | Total Guarantee Amount as a Percentage of Net Assets (%) | 32.18 | Fulfillment of Commitments This section details the commitments made by the company's controlling entities and confirms that all commitments have been strictly fulfilled - Lubei Group has committed to not engaging in businesses that compete with Lubei Chemical or its subsidiaries and has strictly adhered to this commitment[83] - Lubei Group has committed to minimizing related-party transactions and ensuring compliance with legal procedures and disclosure obligations, which has been strictly fulfilled[84] - Lubei Group has committed not to interfere with the company's management or misappropriate its interests, and has strictly fulfilled this commitment[84] - Lubei Group has committed to ensuring Lubei Chemical's independence in business, assets, personnel, finance, and organization, and has strictly fulfilled this commitment[85] Non-operational Fund Occupation by Controlling Shareholders and Affiliates This section confirms that there were no instances of non-operational fund occupation by controlling shareholders or other related parties during the reporting period - The company reports no instances of non-operational fund occupation by its controlling shareholder or other related parties during the reporting period[86] Irregular Guarantees This section confirms that the company did not provide any guarantees that violated prescribed decision-making procedures during the reporting period - The company reports no irregular guarantees during the reporting period[86] Material Litigation and Arbitration This section states that the company had no material litigation or arbitration matters during the reporting period - The company had no material litigation or arbitration matters during this reporting period[87] Material Contracts and Their Performance This section discloses the company's material guarantees, primarily for its subsidiaries, with a total guarantee amount representing 32.18% of net assets Guarantees for Subsidiaries (Unit: RMB 10,000) | Indicator | Amount | | :--- | :--- | | Guarantees for Subsidiaries Incurred During the Period | 104,167.72 | | Outstanding Guarantee Balance for Subsidiaries at Period End (B) | 104,167.72 | | Total Guarantee Amount (A+B) | 104,167.72 | | Total Guarantee Amount as a Percentage of Net Assets (%) | 32.18 | - The company provided multiple guarantees for Jinhai Titanium, including amounts of RMB 100 million, RMB 150 million, and RMB 80 million, with terms extending from 2022 to 2027[512][513] - The company provided multiple guarantees for Xianghai Technology, including amounts of RMB 30 million and RMB 220 million, with terms extending from 2024 to 2026[513] Changes in Share Capital and Shareholders This section reports no change in the company's share capital and details the shareholder structure, including the top ten shareholders and restricted shareholders - During the reporting period, the company's total number of shares and share capital structure remained unchanged[92] - As of the end of the reporting period, the total number of common shareholders was 56,358[93] Top Ten Shareholders (as of Period End) | Shareholder Name | Shares Held (Shares) | Percentage (%) | Pledged, Marked, or Frozen Status (Shares) | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | | Shandong Lubei Enterprise Group Corporation | 180,969,187 | 34.24 | 90,000,000 (Pledged) | State-owned Legal Person | | Shandong State-owned Assets Investment Holdings Co, Ltd | 17,472,392 | 3.31 | 0 (None) | State-owned Legal Person | | Shandong Yongdao Investment Co, Ltd | 8,220,000 | 1.56 | 8,220,000 (Pledged) | Domestic Non-state-owned Legal Person | | Chai Changmao | 5,000,000 | 0.95 | 0 (None) | Domestic Individual | | Yu Daosheng | 1,892,900 | 0.36 | 0 (None) | Domestic Individual | Top Ten Restricted Shareholders (as of Period End) | No | Restricted Shareholder Name | Restricted Shares Held (Shares) | Restriction Condition | | :--- | :--- | :--- | :--- | | 1 | Wang Qingping | 45,000 | Share-reform restricted shares | | 2 | Yang Zhou | 15,000 | Share-reform restricted shares | Changes in Share Capital This section states that the company's total number of shares and share capital structure did not change during the reporting period - During the reporting period, the company's total number of shares and share capital structure remained unchanged[92] Shareholders This section discloses the total number of shareholders and details the holdings of the top ten common and restricted shareholders as of the period end - As of the end of the reporting period, the total number of common shareholders was 56,358[93] Top Ten Shareholders (as of Period End) | Shareholder Name | Shares Held (Shares) | Percentage (%) | Pledged, Marked, or Frozen Status (Shares) | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | | Shandong Lubei Enterprise Group Corporation | 180,969,187 | 34.24 | 90,000,000 (Pledged) | State-owned Legal Person | | Shandong State-owned Assets Investment Holdings Co, Ltd | 17,472,392 | 3.31 | 0 (None) | State-owned Legal Person | | Shandong Yongdao Investment Co, Ltd | 8,220,000 | 1.56 | 8,220,000 (Pledged) | Domestic Non-state-owned Legal Person | | Chai Changmao | 5,000,000 | 0.95 | 0 (None) | Domestic Individual | | Yu Daosheng | 1,892,900 | 0.36 | 0 (None) | Domestic Individual | Top Ten Restricted Shareholders (as of Period End) | No | Restricted Shareholder Name | Restricted Shares Held (Shares) | Restriction Condition | | :--- | :--- | :--- | :--- | | 1 | Wang Qingping | 45,000 | Share-reform restricted shares | | 2 | Yang Zhou | 15,000 | Share-reform restricted shares | Bond-related Matters This section confirms that the company has no corporate bonds, non-financial enterprise debt financing instruments, or convertible bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[100] - The company has no convertible corporate bonds[100] Corporate Bonds and Non-financial Enterprise Debt Financing Instruments This section states that the company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[100] Convertible Corporate Bonds This section states that the company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[100] Financial Report This section presents the company's unaudited consolidated and parent company financial statements and detailed notes for the reporting period - This semi-annual report is unaudited[102] - The financial statements include the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[102][105][108][112][115][118][121][128] - The notes to the financial statements provide detailed disclosures on the company's basic information, significant accounting policies and estimates, taxes, and notes to consolidated financial statement items[133][141][322][329] - Supplementary information includes a detailed list of non-recurring profit and loss items and data on return on equity and earnings per share[553][555] Audit Report This section states that the semi-annual financial report has not been audited - This semi-annual report is unaudited[102] Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2025 Key Consolidated Balance Sheet Data (June 30, 2025) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 8,977,651,720.70 | | Total Liabilities | 5,360,959,926.87 | | Total Equity Attributable to Parent Company | 3,236,957,015.27 | Key Consolidated Income Statement Data (Jan-Jun 2025) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 2,578,215,450.84 | | Total Profit | 156,062,967.86 | | Net Profit Attributable to Parent Company Shareholders | 78,193,466.18 | | Basic Earnings Per Share (RMB/Share) | 0.15 | Key Consolidated Cash Flow Statement Data (Jan-Jun 2025) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 170,679,134.86 | | Net Cash Flow from Investing Activities | -37,961,906.28 | | Net Cash Flow from Financing Activities | -194,140,352.20 | | Net Increase in Cash and Cash Equivalents | -61,493,565.93 | Company Basic Information This section details the company's history, share capital, legal representative, and main business activities in the chemical industry - The company was established on June 19, 1996, and listed on the Shanghai Stock Exchange on July 2 of the same year, with stock code 600727[133] - As of June 30, 2025, the company's registered capital is RMB 528,583,135.00[135] - The legal representative is Chen Shuchang, and the registered and head office address is Chengkou Town, Wudi County, Shandong Province[136][137] - The company's main business activities include the R&D, production, and sales of chemical products such as titanium dioxide, methane chloride, crude salt and bromine, fertilizers, and cement[137] Basis of Preparation for Financial Statements This section confirms that the financial statements are prepared on a going concern basis, with no significant doubts about the company's future viability - The company's financial statements are prepared on a going concern basis[139] - The company has assessed its ability to continue as a going concern for the next 12 months and has found no significant factors that would cast doubt on this ability[140] Significant Accounting Policies and Estimates This section outlines the key accounting policies and estimates used in preparing the financial statements, covering areas from business combinations to revenue recognition - The financial statements comply with enterprise accounting standards, providing a true and fair view of the company's financial position and performance[141] - Financial assets are classified into three categories: measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[172][173][174] - For notes and accounts receivable, the company measures the loss provision based on lifetime expected credit losses, regardless of significant financing components[197] - Fixed assets are depreciated using the straight-line method, with depreciation periods of 22-40 years for buildings and 10-14 years for machinery[243] - Revenue is recognized by identifying performance obligations in a contract and measuring revenue based on the transaction price allocated to each obligation as it is satisfied[274][281] - The company makes judgments, estimates, and assumptions for items such as financial asset impairment, inventory write-downs, fair value of financial assets, long-term asset impairment, depreciation, and deferred income tax[308][312][313][314][315][317][319][320][321] Taxes This section details the company's main taxes and tax rates, as well as applicable tax incentives such as those for comprehensive resource utilization and R&D expenses Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 5% | | Corporate Income Tax | 15%, 25% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Property Tax | 1.2%, 12% | | Resource Tax | 5% | - The company benefits from a corporate income tax incentive for comprehensive resource utilization, with 90% of relevant income included in total revenue[324] - Manufacturing enterprises are eligible for a 100% super deduction or 200% pre-tax amortization for R&D expenses[324] - The subsidiary Guangxi Tiandong Jinyi Technology Co, Ltd, as a high-tech enterprise, enjoys a reduced corporate income tax rate of 15%[325] - The company receives a 70% VAT refund for products and services related to comprehensive resource utilization and a 5% additional deduction on input VAT for advanced manufacturing enterprises[326][328] - Local water conservancy construction funds are exempted in Shandong Province and Guangxi Zhuang Autonomous Region[328] Notes to Consolidated Financial Statement Items This section provides detailed notes on key items in the consolidated financial statements, explaining balances, changes, and related accounting treatments - Cash and cash equivalents at period-end were RMB 2.83 billion, with RMB 1.71 billion in other monetary funds being restricted, primarily as deposits for bank acceptance bills and letters of credit[330][410] - The book value of construction in progress at period-end was RMB 324.60 million, an increase of 83.96% from the beginning of the period, mainly due to increased investment in key projects[391][63] - Short-term borrowings at period-end were RMB 2.92 billion, consisting mainly of pledged loans[413] - Long-term borrowings at period-end were RMB 559.15 million, an increase of 59.76% from the beginning of the period, primarily due to an increase in bank loans[433][64] - Operating revenue for the period was RMB 2.58 billion and cost of sales was RMB 2.28 billion; revenue decreased by 8.43% YoY due to lower sales of titanium dioxide and methane chloride products[447][61] - R&D expenses for the period were RMB 37.33 million, a YoY increase of 51.11%, mainly due to higher R&D investment[459][61] - Net cash flow from operating activities was RMB 170.68 million[481] R&D Expenditures This section details the company's R&D expenditures for the period, all of which were expensed, showing a significant year-on-year increase R&D Expenditure Breakdown (Current Period) | Item | Amount (RMB) | | :--- | :--- | | Employee Compensation | 18,520,467.45 | | Materials | 8,673,527.08 | | Depreciation and Amortization | 1,778,776.80 | | Fuel and Power | 6,925,549.34 | | Expert Consultation | 537,273.17 | | Others | 895,310.32 | | Total | 37,330,904.16 | - R&D expenditure for the current period was RMB 37.33 million, compared to RMB 24.70 million in the same period last year, a YoY increase of 51.11%[489][61] - All R&D expenditures were expensed[489] Changes in Consolidation Scope This section confirms that there were no significant changes to the company's consolidation scope during the reporting period - There were no business combinations under common control during the period[489] - There were no business combinations not under common control during the period[489] - There were no reverse acquisitions during the period[489] - There were no transactions or events leading to a loss of control over subsidiaries during the period[489] Interests in Other Entities This section discloses the composition of the company's corporate group, including key subsidiaries and financial information for significant non-wholly-owned subsidiaries - Key subsidiaries include Guangxi Tiandong Jinyi Technology (51% owned), Shandong Chuangling New Materials (100% owned), Shandong Jinhai Titanium (100% owned), Shandong Xianghai Titanium (100% owned), and Shandong Lubei Zirconium Titanium New Materials (70% owned)[492] - The significant non-wholly-owned subsidiary is Jinyi Technology, with a minority interest of 49.00%[493] Key Financial Information of Jinyi Technology (Current Period) | Item | Amount (RMB) | | :--- | :--- | | Operating Revenue | 419,591,051.44 | | Net Profit | 88,588,919.56 | | Total Comprehensive Income | 88,588,919.56 | | Operating Activity Cash Flow | 142,210,906.89 | | Profit/Loss Attributable to Minority Shareholders | 43,408,570.58 | | Dividends Declared to Minority Shareholders | 73,500,000.00 | | Minority Interest Balance at Period End | 358,775,481.90 | Government Grants This section discloses government grants received by the company, including deferred income related to assets and grants recognized in current profit or loss Liability Items Related to Government Grants (Deferred Income) | Item | Opening Balance (RMB) | New Grants (RMB) | Transferred to Other Income (RMB) | Closing Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 3,504,391.30 | 80,000.00 | 360,077.50 | 3,224,313.80 | Asset-related | Government Grants Included in Current Profit or Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Income-related | 2,537,451.32 | 3,689,090.97 | | Income-related | 1,325,245.52 | 1,446,751.53 | | Total | 3,862,696.84 | 5,135,842.50 | Financial Instrument Risks This section states that the company does not engage in hedging activities for risk management and has not applied hedge accounting - The company does not engage in hedging activities for risk management[499] - The company has not applied hedge accounting[499] - The company has not disclosed details regarding the transfer of financial assets[499][500] Fair Value Disclosures This section discloses the fair value of assets and liabilities measured at fair value, primarily trading financial assets and other equity investments Total Assets Measured at Fair Value on a Recurring Basis (Period End Fair Value) | Item | Level 2 Fair Value (RMB) | Level 3 Fair Value (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 8,000,000.00 | | 8,000,000.00 | | Other Equity Investments | | 600,000.00 | 600,000.00 | | Total Assets Measured at Fair Value | 8,000,000.00 | 600,000.00 | 8,600,000.00 | - The fair value for Level 2 is derived from the present value of expected cash inflows from bank wealth management products[503] - The fair value for Level 3 items (other equity investments and other non-current financial assets) is determined using a valuation technique based on the value of the investee's identifiable net assets[504] Related Parties and Transactions This section details the company's parent, subsidiaries, other related parties, and various related-party transactions during the reporting period - The company's parent is Shandong Lubei Enterprise Group Corporation, holding a 34.24% stake, with the ultimate controlling party being the Wudi County Finance Bureau[506] - Other related parties include Shandong Lubei High-tech Zone Industrial Development Group, Shandong Jinyuan New Materials, Binhua Group and its subsidiaries, and Guangxi Tiandong Jinsheng Chemical[507][508] Purchases of Goods/Services from Related Parties (Current Period) | Related Party | Transaction Content | Amount (RMB) | | :--- | :--- | :--- | | Shandong Lubei Enterprise Group Corporation | Purchase of steam, electricity, etc | 261,499,757.55 | | Wudi Haichuan Installation Engineering Co, Ltd | Engineering services, equipment, materials | 66,396,531.10 | | Wudi Lanjie Sewage Treatment Co, Ltd | Sewage treatment | 24,692,959.54 | | Guangxi Tiandong Jinsheng Chemical Co, Ltd | Purchase of fuel and power | 58,393,305.45 | Sales of Goods/Services to Related Parties (Current Period) | Related Party | Transaction Content | Amount (RMB) | | :--- | :--- | :--- | | Shandong Lubei Enterprise Group Corporation | Sales of purified water, demineralized water, fly ash, etc | 21,643,781.15 | | Shandong Lubei Haisheng Biotechnology Co, Ltd | Sales of cement, maintenance services | 23,109,323.42 | | Wudi Zhonghai New Aluminum Technology Co, Ltd | Sales of woven bags, provision of repairs, etc | 5,599,165.97 | | Binhua Group Co, Ltd | Sales of salt | 4,960,316.10 | - The company provided multiple guarantees for its subsidiaries Jinhai Titanium and Xianghai Technology, with a total outstanding guarantee balance of RMB 1.04 billion at the period end[512][513][90] - Key management personnel compensation for the current period amounted to RMB 5.95 million[515] Share-based Payments This section confirms that the company had no share-based payment arrangements during the reporting period - The company had no share-based payment arrangements during the reporting period[521] - The company had no equity-settled share-based payments[522] - The company had no cash-settled share-based payments[522] - The company incurred no share-based payment expenses during the period[522] Commitments and Contingencies This section states that the company had no significant commitments or material contingencies to disclose for the reporting period - The company had no significant commitments to report for the period[522] - The company has no material contingencies to disclose[522] Post-Balance Sheet Events This section confirms that no significant events occurred between the balance sheet date and the report's approval date that would require disclosure - The company had no significant non-adjusting events after the balance sheet date[522] - There were no profit distribution events after the balance sheet date[522] - There were no sales returns after the balance sheet date[522] Other Significant Matters This section confirms the absence of other significant matters such as prior period error corrections, debt restructuring, or discontinued operations - The company had no prior period accounting error corrections[522] - The company had no significant debt restructuring[523] - The company had no asset swaps[523] - The company had no annuity plans[523] - The company had no discontinued operations[523] - The company has not disclosed segment information[523] Notes to Parent Company Financial Statement Items This section provides detailed notes on key items in the parent company's financial statements, including receivables, long-term investments, and revenue - The parent company's accounts receivable had a book value of RMB 32.53 million at period-end, with a bad debt provision of RMB 3.14 million[526] - The parent company's other receivables had a book value of RMB 1.11 billion at period-end, with a significant portion related to intercompany balances[534][540] - The parent company's long-term equity investments had a book value of RMB 2.07 billion at period-end, increasing by RMB 131.90 million during the period due to additional investments in subsidiaries[546] - The parent company's operating revenue for the period was RMB 431.35 million, with a cost of sales of RMB 352.44 million[548] - The parent company's investment income for the period was RMB 77.08 million, primarily from long-term equity investments accounted for using the cost method[552] Supplementary Information This section provides supplementary financial data, including a detailed breakdown of non-recurring profit and loss items and calculations for ROE and EPS Breakdown of Non-recurring Profit and Loss | Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 2,696,732.38 | | Government Grants Included in Current Profit/Loss | 1,325,245.52 | | Fair Value Changes in Financial Assets/Liabilities Held by Non-financial Enterprises | 580,158.11 | | Other Non-operating Income and Expenses | -5,716,307.62 | | Less: Income Tax Impact | 60,883.24 | | Less: Minority Interest Impact (After Tax) | -2,793,621.77 | | Total | 1,618,566.92 | Return on Equity (ROE) and Earnings Per Share (EPS) | Profit for the Period | Weighted Average ROE (%) | Basic EPS (RMB) | Diluted EPS (RMB) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 2.44 | 0.15 | 0.15 | | Net Profit Attributable to Common Shareholders after Non-recurring Items | 2.39 | 0.15 | 0.15 |