东富龙(300171) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides an important notice regarding the report's accuracy, lists reference documents, and defines key terms for clarity Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[4] - The company's head, chief accountant, and head of the accounting department declare the financial report is true, accurate, and complete[4] 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount/Description | | :--- | :--- | | Distribution Base (shares) | 760,848,039 | | Cash Dividend per 10 Shares (tax inclusive) | CNY 0.30 | | Bonus Shares (shares) | 0 | | Capital Reserve to Share Capital | No conversion | List of Reference Documents This section lists the company's 2025 semi-annual report reference documents, including signed financial statements and publicly disclosed materials - Reference documents include signed financial statements, the report and its summary, original publicly disclosed company documents, and written confirmations from directors, supervisors, and senior management[9] - All reference documents are available at the company's Board Secretary Office[10] Definitions This section defines common terms used in the report, covering company names, regulatory bodies, and key subsidiaries for clear understanding - In the report, "the Company" and "Tofflon" refer to Tofflon Science and Technology Group Co., Ltd[11] - The reporting period is from January 1, 2025, to June 30, 2025, and the prior period is from January 1, 2024, to June 30, 2024[11] - Definitions are provided for several subsidiaries and associate companies, including Shanghai Gonghe, Tofflon Iris, and Tofflon Topu[11][12] Section II Company Profile and Key Financial Indicators This section outlines the company's basic information, contact details, and key financial performance metrics for the reporting period I. Company Profile Tofflon Science and Technology Group Co., Ltd. (stock code: 300171) is listed on the Shenzhen Stock Exchange, with Zheng Xiaodong as its legal representative - The company's stock abbreviation is "Tofflon", stock code "300171", listed on the Shenzhen Stock Exchange[14] - The company's legal representative is Zheng Xiaodong[14] II. Contact Person and Information The company's Board Secretary is Wang Yan and Securities Affairs Representative is Zhou Houyi, with consistent contact details - Board Secretary: Wang Yan; Securities Affairs Representative: Zhou Houyi[15] - Contact address: No. 1509 Duhui Road, Minhang District, Shanghai; Tel: 021-64909699; Email: dfl@tofflon.com[15] III. Other Information The company's registered address, office address, website, and email remained unchanged during the reporting period, with information disclosed via specified media - The company's contact information remained unchanged during the reporting period, as detailed in the 2024 annual report[16] - Information disclosure media include Securities Times, China Securities Journal, and Cninfo (www.cninfo.com.cn)[17](index=17&type=chunk) - The company's registration status remained unchanged during the reporting period, as detailed in the 2024 annual report[18] IV. Key Accounting Data and Financial Indicators In the first half of 2025, the company's revenue grew by 6.01% to CNY 2.429 billion, but net profit attributable to shareholders significantly decreased by 59.71% to CNY 45.92 million 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,428,518,866.54 | 2,290,913,300.80 | 6.01% | | Net Profit Attributable to Shareholders of the Listed Company | 45,919,546.96 | 113,971,979.42 | -59.71% | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-Recurring Gains and Losses | 25,475,215.29 | 99,129,359.38 | -74.30% | | Net Cash Flow from Operating Activities | 276,361,353.22 | 191,968,271.79 | 43.96% | | Basic Earnings Per Share (CNY/share) | 0.0604 | 0.1498 | -59.68% | | Diluted Earnings Per Share (CNY/share) | 0.0604 | 0.1488 | -59.41% | | Weighted Average Return on Net Assets | 0.59% | 1.44% | -0.85% | | Indicator | Period-End (CNY) | Prior Year-End (CNY) | Period-End YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 13,237,060,188.90 | 13,068,340,218.01 | 1.29% | | Net Assets Attributable to Shareholders of the Listed Company | 7,787,451,203.27 | 7,805,408,838.57 | -0.23% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the period - The company reported no differences in net profit and net assets between international accounting standards and Chinese accounting standards during the reporting period[20] - The company reported no differences in net profit and net assets between overseas accounting standards and Chinese accounting standards during the reporting period[21] VI. Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the reporting period amounted to CNY 20.44 million, primarily from asset disposals, government grants, and fair value changes - The company reported no other profit and loss items that meet the definition of non-recurring gains and losses during the reporting period[22] - The company did not classify any non-recurring gains and losses as recurring gains and losses[22] 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 170,460.90 | | Government grants recognized in current profit and loss | 12,753,594.56 | | Gains and losses from changes in fair value of financial assets and liabilities and disposal gains and losses | 5,228,273.24 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 8,329,763.88 | | Gains and losses from debt restructuring | -39,836.28 | | Other non-operating income and expenses | -98,479.36 | | Less: Income tax impact | 4,113,516.62 | | Minority interest impact (after tax) | 1,785,928.65 | | Total | 20,444,331.67 | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, business operations, core competitiveness, financial performance, and risk management strategies I. Main Industry Engaged by the Company During the Reporting Period The company's core business is R&D, manufacturing, sales, and technical services of pharmaceutical equipment, a specialized equipment manufacturing sector - The company's main business is the research, development, production, sales, and technical services of pharmaceutical equipment, belonging to the specialized equipment manufacturing industry[25] - In the medium to long term, industry development benefits from policies encouraging pharmaceutical innovation, demand for domestic substitution, an aging population, and international competition[26][27][28][29] - In the short term, the industry faces declining profitability, but improved biomedical financing and technological breakthroughs (ADC, small nucleic acids, mRNA therapies) offer new growth points[29][30] - Industry development trends include automation, intelligence, digitalization, high efficiency, energy saving, modularization, customization, green manufacturing, and global competition[30][31][33] (I) Overview of the Pharmaceutical Equipment Industry The pharmaceutical equipment industry is a crucial upstream component of the pharmaceutical industry, manufacturing machinery and packaging materials for drug production, testing, and packaging - The pharmaceutical equipment industry is a vital upstream component of the pharmaceutical industry, covering equipment for drug production, testing, and packaging processes[25] - Pharmaceutical equipment is mainly categorized into eight types, including raw material machinery and equipment, and preparation machinery and equipment[26] - Raw material equipment and preparation machinery are core equipment in the production of chemical and biological drugs[26] (II) Current Development Status of the Pharmaceutical Equipment Industry The pharmaceutical equipment industry benefits from long-term trends like national innovation policies and an aging population, despite short-term profitability challenges - National policies encourage pharmaceutical innovation, with technological advancements in gene and cell therapy, ADC, and RNA therapies creating development opportunities for the pharmaceutical equipment industry[26][27] - The importance of domestic substitution is growing, with domestic equipment offering advantages in cost and customized services[28] - An aging population is driving increased demand for pharmaceuticals, boosting the development of the pharmaceutical equipment market[28] - While the domestic pharmaceutical equipment industry faces declining profitability, an improved biomedical financing environment is stimulating new project investments[29][30] - Fields such as ADC, small nucleic acid drugs, and mRNA therapies show immense potential in the biopharmaceutical sector[30] (III) Development Trends of the Pharmaceutical Equipment Industry The pharmaceutical equipment industry is rapidly innovating, shifting from imitation to independent R&D, and moving towards automation, intelligence, and digitalization - The pharmaceutical equipment industry will accelerate innovation and upgrading, shifting from imitation to independent R&D, achieving "automation, intelligence, and digitalization" development[30] - Leading enterprises will transform into comprehensive solution providers, enhancing their turnkey project capabilities[30] - Industry trends include automation and intelligence, high efficiency and energy saving, modularization and customization, green manufacturing, application of digital technologies, and global market competition[31][33] II. Main Business Engaged by the Company During the Reporting Period Tofflon, a global pharmaceutical equipment service provider, offers integrated solutions across bioprocess, formulation, engineering, and food equipment sectors - Tofflon provides pharmaceutical process, core equipment, and system engineering integrated solutions to global pharmaceutical companies[34] - The company's business is divided into four major segments: bioprocess, formulation, engineering integrated solutions, and food equipment engineering[35] - The company adopts a direct sales model, expanding its market through domestic and international sales and technical teams, distributors, exhibitions, technical seminars, and comprehensive after-sales service[41] - The company possesses advantages in technological innovation, a comprehensive sales network, leading brand recognition, and the ability to provide integrated solutions[42][43] - The company faces disadvantages such as a smaller scale compared to international pharmaceutical equipment enterprises and a gap in core technologies like automation, informationization, intelligence, and continuous production compared to international leaders[44] 2025 Semi-Annual Performance Drivers | Indicator | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | CNY 2.429 billion | Increased by 6.01% | | Net Profit Attributable to Shareholders of the Listed Company | CNY 46 million | Decreased by 59.71% | | International Business Revenue | CNY 805 million, accounting for 33.14% | Increased by 63.25% | | International Business Gross Profit Margin | 48.03% | Increased by 1.84% | | International Market Revenue in Food Equipment Sector | CNY 222 million | Increased by 73.77% | | Food Equipment Sector Gross Profit Margin | - | Increased by 5.45% | - The company adheres to a "systematization, internationalization, digitalization" development strategy, expanding global marketing capabilities, prioritizing technology and quality, and driving management reforms to reduce costs and increase efficiency[46][47][48] (I) Main Business and Products The company's main business is structured into four segments: bioprocess, formulation, engineering integrated solutions, and food equipment engineering - The bioprocess segment offers products including fermentation systems, bioreactors, separation and purification systems, single-use reaction systems, cell cryopreservation systems, culture media, and chromatography packing, applied in biopharmaceuticals, vaccines, and chemical drugs[36] - The formulation segment's products include complex formulation preparation systems, freeze-dryers, aseptic filling lines, aseptic isolators, solid dosage preparation systems, and intelligent inspection and packaging systems[37] - The engineering integrated solutions segment provides compliance consulting, validation, PQS system establishment, design, installation, project management, CQV services, and MES, WMS, and other information systems, adhering to FDA and GMP regulations[38] - The food engineering segment, through controlled subsidiaries like Shanghai Chenghuan and Jiangsu Huihe, offers liquid food pre-processing lines, food freeze-drying systems, liquid filling lines, and aseptic filling lines, as well as turnkey engineering services[39] (II) Business Model The company employs a direct sales model, leveraging domestic and international sales teams, technical teams, and distributors to expand its market presence - The company adopts a direct sales model for product sales, establishing domestic and international sales and technical teams, and collaborating with distributors to expand into overseas markets[41] - Market development methods include participating in product exhibitions, on-site visits to customer factories, conducting process and technical seminars, training, and promoting new technologies[41] - The company provides pharmaceutical process optimization services and has established a comprehensive, rapid-response after-sales service system to ensure equipment operation and customer satisfaction[41] (III) Company's Competitive Advantages and Disadvantages The company boasts strong technical innovation, extensive sales networks, and brand recognition, but faces challenges in scale and advanced core technologies compared to international leaders - The company possesses strong R&D innovation and technological achievement transformation capabilities, with advanced process equipment based on core independent intellectual property rights[42] - The company's sales and technical service network is spread domestically and internationally, with products recognized in developed countries such as Europe and America[42] - The company holds a leading market share in the domestic pharmaceutical equipment market, aiming to become a mainstream provider of integrated solutions for global pharmaceutical companies[43] - The company offers comprehensive solutions encompassing equipment, system design, integration, delivery, and pharmaceutical process understanding, creating high barriers and customer loyalty[43] - Competitive disadvantages include a smaller scale compared to international leading enterprises, and deficiencies in capital, production capacity, and process technology, resulting in a lower international market share[44] - The company still lags behind international leading enterprises in core technologies such as automation, informationization, intelligence, and continuous production[44] (IV) Key Performance Drivers In the first half of 2025, the company's operating revenue increased by 6.01% to CNY 2.429 billion, but net profit attributable to shareholders decreased by 59.71% to CNY 46 million 2025 Semi-Annual Performance Overview | Indicator | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | CNY 2.429 billion | Increased by 6.01% | | Net Profit Attributable to Shareholders of the Listed Company | CNY 46 million | Decreased by 59.71% | | International Business Revenue | CNY 805 million | Increased by 63.25% | | International Business Gross Profit Margin | 48.03% | Increased by 1.84% | | Food Equipment Sector Revenue | CNY 222 million | Increased by 73.77% | | Food Equipment Sector Gross Profit Margin | - | Increased by 5.45% | - The decline in profitability is mainly due to the incomplete recovery of the domestic biopharmaceutical industry, intensified market competition, and the company's adjustment of marketing strategies leading to a decrease in overall gross profit margin[44] - The company adheres to a "systematization, internationalization, digitalization" development strategy, strengthening its product chain, enhancing core competitiveness, and reinforcing its overseas marketing layout[46] - During the reporting period, the company successfully developed and delivered large-scale hot water pressure machines, EQMS systems, China's first dual-chamber freeze-drying preparation line, and an OEB5-level solid dosage enclosed production workshop project[47] II. Analysis of Core Competitiveness The company's core competitiveness lies in its "M+E+C (AI)" strategy, providing integrated intelligent solutions for equipment, engineering, and consumables, aiming to be a platform-based integrated supplier - The company's core competitiveness is its "M+E+C (AI)" strategy, providing integrated intelligent solutions for equipment, engineering, and consumables, aiming to become a platform-based integrated supplier[49] - The company has been recognized as a "National Enterprise Technology Center" and a "Manufacturing Single Champion Enterprise," highlighting its technological strength and market position[50] - The company practices the concept of "combining pharmaceutical manufacturing science with pharmaceutical machinery manufacturing," developing product pipelines around customer pharmaceutical scenarios to provide "turnkey projects" from R&D to drug production[50] - As a pioneer in the "going global" strategy for domestic pharmaceutical equipment, the company is firmly advancing its internationalization strategy, possessing a strong global customer base and brand influence through overseas subsidiaries and technical cooperation[51] III. Analysis of Main Business The company's main business profit structure remained stable, with operating revenue increasing by 6.01% but operating costs rising by 8.22%, leading to a decline in gross profit margin - The company's profit composition or sources did not undergo significant changes during the reporting period[53] Key Financial Data Year-over-Year Changes | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,428,518,866.54 | 2,290,913,300.80 | 6.01% | - | | Operating Cost | 1,726,151,588.76 | 1,595,110,146.19 | 8.22% | - | | Selling Expenses | 143,379,487.28 | 117,800,889.22 | 21.71% | - | | Administrative Expenses | 277,767,094.01 | 257,045,027.07 | 8.06% | - | | Financial Expenses | -32,539,322.75 | -15,166,555.81 | -114.55% | Primarily due to the combined impact of interest income and exchange gains/losses in the current period | | Income Tax Expense | 20,090,048.29 | 21,684,188.33 | -7.35% | - | | R&D Investment | 158,451,587.98 | 153,918,552.97 | 2.95% | - | | Net Cash Flow from Operating Activities | 276,361,353.22 | 191,968,271.79 | 43.96% | Primarily due to continuous strengthening of collection management and increased new orders, leading to higher cash received from sales compared to the prior period | | Net Cash Flow from Investing Activities | 112,887,421.59 | -249,792,147.98 | 145.19% | Primarily due to increased recovery of matured large-denomination certificates of deposit compared to the prior period | | Net Cash Flow from Financing Activities | -22,983,776.47 | -15,608,625.13 | -47.25% | Primarily due to the implementation of 2024 equity distribution in the current reporting period, while 2023 equity distribution was implemented in Q3 2024 | | Net Increase in Cash and Cash Equivalents | 376,463,122.70 | -73,578,210.58 | 611.65% | - | Operating Revenue, Operating Cost, and Gross Profit Margin by Product/Service and Region | Category | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Product or Service | | | | | | | | Formulation Business Unit | 1,090,949,755.13 | 712,824,030.26 | 34.66% | -13.35% | -17.45% | 3.25% | | Bioprocess Business Unit | 724,452,791.61 | 592,708,800.82 | 18.19% | 34.56% | 56.95% | -11.67% | | Engineering Business Unit | 223,205,416.66 | 170,564,354.57 | 23.58% | 10.97% | 1.57% | 7.06% | | Food Business Unit | 222,382,551.35 | 160,734,762.48 | 27.72% | 73.77% | 61.57% | 5.45% | | After-sales Service and Parts | 165,419,300.65 | 88,662,167.83 | 46.40% | 3.87% | 5.06% | -0.61% | | Other Business Income | 2,109,051.14 | 657,472.80 | 68.83% | -58.87% | -69.14% | 10.38% | | By Region | | | | | | | | Domestic | 1,623,942,518.41 | 1,308,049,075.39 | 19.45% | -9.68% | -1.64% | -6.59% | | International | 804,576,348.13 | 418,102,513.37 | 48.03% | 63.25% | 57.65% | 1.84% | | By Direct Sales Model | | | | | | | | Direct Sales | 2,428,518,866.54 | 1,726,151,588.76 | 28.92% | 6.01% | 8.22% | -1.45% | IV. Analysis of Non-Core Business Non-core business impacts on total profit primarily stem from investment income, fair value changes, asset impairment, credit impairment losses, and other income Impact of Non-Core Business on Total Profit | Item | Amount (CNY) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 10,114,565.98 | 14.49% | Primarily from interest income on time deposits, large-denomination certificates of deposit, and long-term equity investment gains/losses | Sustainable | | Gains and Losses from Changes in Fair Value | 5,228,273.24 | 7.49% | Primarily from changes in fair value of trading financial assets | Sustainable | | Asset Impairment | -76,252,179.92 | -109.23% | Primarily from inventory write-downs, impairment losses on contract performance costs, and contract asset impairment losses | Varies with operating conditions | | Non-Operating Income | 4,694,508.75 | 6.72% | Primarily from compensation received | Not sustainable | | Non-Operating Expenses | 4,782,865.30 | 6.85% | Primarily from penalties and compensation expenses in the current period | Not sustainable | | Credit Impairment Losses | -26,250,176.91 | -37.60% | Primarily from provisions for bad debts on accounts receivable and other receivables | Varies with operating conditions | | Other Income | 24,273,720.20 | 34.77% | Primarily from government grants related to daily operations and additional input tax deductions | Not sustainable | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 1.29% year-over-year, while net assets attributable to shareholders slightly decreased by 0.23% Significant Changes in Asset Composition | Item | Period-End Amount (CNY) | % of Total Assets | Prior Year-End Amount (CNY) | % of Total Assets | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 2,903,734,766.98 | 21.94% | 2,509,611,665.21 | 19.20% | 2.74% | - | | Accounts Receivable | 1,689,781,505.49 | 12.77% | 1,567,549,735.69 | 12.00% | 0.77% | - | | Contract Assets | 271,479,532.38 | 2.05% | 329,776,553.77 | 2.52% | -0.47% | - | | Inventories | 3,329,756,937.84 | 25.15% | 3,272,866,427.84 | 25.04% | 0.11% | - | | Fixed Assets | 1,875,803,693.03 | 14.17% | 1,642,245,216.99 | 12.57% | 1.60% | - | | Construction in Progress | 294,097,743.90 | 2.22% | 508,461,302.66 | 3.89% | -1.67% | Primarily due to the capitalization of some construction in progress for the Jiangsu Biopharmaceutical Equipment Industrialization Base project | | Short-term Borrowings | 7,925,754.44 | 0.06% | 3,010,019.73 | 0.02% | 0.04% | Primarily due to increased short-term bank borrowings by controlled subsidiaries in the current period | | Contract Liabilities | 3,609,810,549.16 | 27.27% | 3,296,488,231.32 | 25.22% | 2.05% | - | | Long-term Borrowings | 41,819,429.20 | 0.32% | 5,003,893.26 | 0.04% | 0.28% | Primarily due to long-term borrowings obtained from banks by Tofflon Qianchun Biotechnology (Shanghai) Co., Ltd., a controlled subsidiary | | Notes Receivable | 59,825,699.67 | 0.45% | 120,693,432.05 | 0.92% | -0.47% | Primarily due to maturity or transfer of bank acceptance bills | | Prepayments | 142,881,006.57 | 1.08% | 105,800,281.12 | 0.81% | 0.27% | Primarily due to increased prepayments for material purchases in the current period | | Non-current Assets Due Within One Year | 447,454,684.92 | 3.38% | 892,355,210.96 | 6.83% | -3.45% | Primarily due to maturity of time deposits and large-denomination certificates of deposit | | Other Current Assets | 672,571,124.30 | 5.08% | 283,838,809.88 | 2.17% | 2.91% | Primarily due to the purchase of short-term time deposits and large-denomination certificates of deposit | | Other Non-current Financial Assets | 73,693,695.88 | 0.56% | 19,268,278.10 | 0.15% | 0.41% | Primarily due to the company's investment as a limited partner in Shanghai Biopharmaceutical M&A Private Equity Fund Partnership (Limited Partnership) | | Other Non-current Assets | 60,511,067.52 | 0.46% | 354,684,220.01 | 2.71% | -2.25% | Primarily due to the transfer of interest income from time deposits and large-denomination certificates of deposit to non-current assets due within one year | | Notes Payable | 4,069,279.00 | 0.03% | 2,062,500.00 | 0.02% | 0.01% | Primarily due to increased use of notes for settlement in the current period | | Employee Benefits Payable | 83,386,595.12 | 0.63% | 123,800,139.84 | 0.95% | -0.32% | Primarily due to payment of employee performance bonuses for 2024 in the current period | Financial Assets and Liabilities Measured at Fair Value | Item | Period-Beginning (CNY) | Fair Value Change Gains/Losses This Period (CNY) | Period-End (CNY) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 449,237,138.89 | 4,392,039.46 | 458,454,002.92 | | Other Equity Instrument Investments | 113,715,651.98 | -12,564,961.25 | 111,150,690.73 | | Receivables Financing | 97,137,827.44 | - | 57,709,489.17 | | Other Non-current Financial Assets | 19,268,278.10 | 836,233.78 | 73,693,695.88 | | Total Above | 679,358,896.41 | -7,336,688.01 | 701,007,878.70 | Restricted Asset Rights | Item | Period-End Book Value (CNY) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 59,399,421.14 | Frozen | Margin/Litigation | | Intangible Assets | 30,366,533.40 | Mortgage | Loan Mortgage | | Total | 89,765,954.54 | | | VI. Analysis of Investment Status During the reporting period, the company's total investment was CNY 145 million, a 41.33% decrease year-over-year, with no significant equity or non-equity investments Reporting Period Investment Amount | Indicator | Amount (CNY) | | :--- | :--- | | Reporting Period Investment Amount | 144,772,987.23 | | Prior Period Investment Amount | 246,737,130.73 | | Change Percentage | -41.33% | - The company did not acquire any significant equity investments or have any ongoing significant non-equity investments during the reporting period[65] - As of June 30, 2025, cumulative investment from initial public offering proceeds reached CNY 1.73 billion, and from private placement proceeds reached CNY 1.501 billion[66] - Some fundraising projects, such as the "Pharmaceutical Equipment Container Manufacturing Base Construction Project (Phase I)," did not achieve expected returns, primarily due to lower gross profit margins and reduced investment in equipment purchases[73] Wealth Management Overview | Specific Type | Amount of Wealth Management (CNY 10,000) | Unmatured Balance (CNY 10,000) | | :--- | :--- | :--- | | Bank Wealth Management Products (Own Funds) | 33,729.10 | 24,994.35 | | Bank Wealth Management Products (Raised Funds) | 6,200.00 | 6,200.00 | | Total | 39,929.10 | 31,194.35 | - The company had no derivative investments or entrusted loans during the reporting period[77][78] 5. Use of Raised Funds The company strictly manages and uses raised funds, with cumulative investments from IPO and private placement proceeds reaching CNY 1.73 billion and CNY 1.501 billion, respectively Overall Use of Raised Funds | Fundraising Method | Net Raised Funds (CNY 10,000) | Total Cumulative Used Raised Funds (CNY 10,000) | % of Raised Funds Used at Period-End | | :--- | :--- | :--- | :--- | | Initial Public Offering | 172,000 | 173,032.29 | 110.17% | | Private Placement of Shares | 242,840 | 150,113.27 | 61.82% | | Total | 399,852.82 | 323,145.56 | 80.81% | - During the reporting period, private placement funds were primarily used for the Biopharmaceutical Equipment Industrialization Pilot Center project (CNY 25.58 million), Jiangsu Biopharmaceutical Equipment Industrialization Base project (CNY 47.72 million), and Zhejiang Tofflon Biotechnology Co., Ltd. Life Science Industrialization Base project (CNY 39.33 million)[66] - The "Pharmaceutical Equipment Container Manufacturing Base Construction Project (Phase I)" did not achieve expected returns, mainly due to lower gross profit margins, reduced equipment purchase funds due to market changes, and early investment of own funds in some equipment[73] - The company deposits unused raised funds in special accounts and uses idle raised funds for cash management, purchasing time deposits, large-denomination certificates of deposit, and low-risk principal-protected wealth management products[74][75] 6. Wealth Management, Derivative Investments, and Entrusted Loans During the reporting period, the company engaged in wealth management, with a total transaction amount of CNY 399 million and an unmatured balance of CNY 312 million, with no overdue unrecovered amounts Overview of Wealth Management During the Reporting Period | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management (CNY 10,000) | Unmatured Balance (CNY 10,000) | Overdue Unrecovered Amount (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 33,729.10 | 24,994.35 | 0 | | Bank Wealth Management Products | Raised Funds | 6,200.00 | 6,200.00 | 0 | | Total | | 39,929.10 | 31,194.35 | 0 | - The company reported no significant, low-safety, or low-liquidity high-risk wealth management products during the reporting period[76] - The company had no derivative investments or entrusted loans during the reporting period[77][78] VII. Significant Asset and Equity Disposals The company did not engage in any significant asset or equity disposals during the reporting period - The company did not dispose of any significant assets during the reporting period[79] - The company did not dispose of any significant equity during the reporting period[80] VIII. Analysis of Major Controlled and Associate Companies This section presents financial information for the company's major controlled and associate companies, including Tofflon Iris, Tofflon Engineering, Tofflon Medical, Shanghai Chenghuan, and Shanghai Bohao Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tofflon Iris | Subsidiary | Provides aseptic isolation stand-alone units and systems | USD 1,500,000.00 | 397,199,713.27 | 90,240,968.90 | 132,789,356.39 | 12,949,904.67 | 10,850,161.57 | | Tofflon Engineering | Subsidiary | Provides integrated solutions for traditional Chinese medicine extraction, bio-fermentation, chemical synthesis, and aseptic APIs | CNY 148,000,000.00 | 300,637,471.56 | 114,483,492.84 | 112,965,323.54 | 10,536,778.57 | 11,179,179.03 | | Tofflon Medical | Subsidiary | Engages in investment in the pharmaceutical equipment sector | CNY 500,000,000.00 | 1,147,688,989.82 | 808,708,666.70 | 132,843,694.81 | -31,616,433.59 | -37,734,912.11 | | Shanghai Chenghuan | Subsidiary | Provides food equipment and engineering general contracting services for food enterprises | CNY 24,735,000.00 | 447,630,309.04 | 102,853,738.53 | 129,987,550.71 | 22,681,032.52 | 20,611,494.64 | | Shanghai Bohao | Associate Company | Provides chip gene detection, single-cell sequencing, etc. | CNY 48,500,000.00 | 169,790,389.65 | 37,199,544.10 | 41,894,070.14 | -18,032,700.74 | -17,243,537.38 | - The company did not acquire or dispose of any subsidiaries during the reporting period[81] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company reported no structured entities under its control during the reporting period[81] X. Risks Faced by the Company and Countermeasures The company faces risks from intensified industry competition, economic cycles, market demand fluctuations, and uncertainties in fundraising project benefits - The company faces industry competition risks and responds by promoting systemic construction, expanding international markets, increasing market share, and consolidating its domestic brand position[81] - The company addresses economic cycle and market demand fluctuation risks by maintaining production and supply chain flexibility, adjusting capacity and inventory, fostering close customer relationships, and optimizing production processes and cost management[81][82] - Risks of fundraising projects not achieving expected economic benefits are managed by advancing project progress and quality according to market conditions and actively exploring new markets[82] - Risks associated with external mergers and acquisitions and subsidiary management are mitigated by improving due diligence, feasibility analysis, decision-making, and operational management systems for investment projects and subsidiaries[82][84] - Internal management risks are addressed by comprehensively promoting precise management, upgrading information management systems, and building marketing, R&D, manufacturing, human resources, and financial platforms to enhance management levels[84] - Human resource management risks are countered by fostering a learning organization, developing training platforms, providing employee development opportunities, and establishing a human resource management model suitable for high-tech enterprises[84][85] - Exchange rate risks are managed by actively using financial instruments for hedging, strategically choosing settlement methods, and strengthening the training of financial professionals[85] - Investment impairment risks are reduced by strengthening post-investment management of investee companies, fostering business strategic synergy, and enhancing the management team's risk awareness[85] XI. Registration Form for Investor Relations Activities During the Reporting Period During the reporting period, the company conducted two investor relations activities, including a telephone conference and an online event, with details available on Cninfo Registration Form for Investor Relations Activities During the Reporting Period | Reception Date | Reception Location | Reception Method | Type of Reception Object | Main Content Discussed and Materials Provided | Index of Survey Basic Information | | :--- | :--- | :--- | :--- | :--- | :--- | | April 25, 2025 | Telephone Conference | Telephone Communication | Institutions | See the investor relations activity record form (No. 2025-001) disclosed by the company on Cninfo | http://www.cninfo.com.cn/ | | May 06, 2025 | Panorama Roadshow World (http://rs.p5w.net) | Other | Other | See the investor relations activity record form (No. 2025-002) disclosed by the company on Cninfo | http://www.cninfo.com.cn/ | XII. Implementation of Market Value Management System and Valuation Enhancement Plan The company has established a "Market Value Management System" to enhance investment value and standardize market value management practices, but has not disclosed a valuation enhancement plan - The company has formulated the "Company Market Value Management System," approved by the Board of Directors on December 5, 2024[88] - The market value management system clarifies the responsibilities and division of labor among the Board of Directors, directors, and senior management[88] - Key methods of market value management include information disclosure, cash dividends, investor relations management, share repurchases, mergers and acquisitions, equity incentives, and employee stock ownership plans[88] - The company will continuously and regularly conduct market value management through various legal and compliant forms to ensure its market value more accurately reflects its intrinsic value[88] - The company has not disclosed a valuation enhancement plan[88] XIII. Implementation of "Quality and Return Dual Enhancement" Action Plan The company disclosed its "Quality and Return Dual Enhancement" action plan on March 7, 2024, focusing on industry development, R&D, governance, and shareholder returns - The company disclosed its "Quality and Return Dual Enhancement" action plan announcement on March 7, 2024[89] - The action plan's main contents include deep cultivation of the biopharmaceutical industry, continuous R&D investment, improvement of corporate governance structure, stable operations to provide cash dividends, emphasis on investor relations management, and increasing and repurchasing company shares[89][90] - During the reporting period, the company enhanced its quality development level through self-innovation, R&D, and acquisitions to strengthen its product chain[90] 2024 Equity Distribution Implementation | Indicator | Amount/Description | | :--- | :--- | | Announcement Date of Distribution | May 23, 2025 | | Distribution Base (shares) | 760,848,039 | | Distribution per 10 Shares (CNY) | 0.76 | | Total Cash Dividend (tax inclusive) | CNY 57,824,450.96 | - The company values investor relations management, actively interacts with investors, answers hotlines, responds to questions on the interactive platform, and holds performance briefings[91] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[93] - Specific changes can be found in the 2024 annual report[93] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The Board of Directors approved a 2025 interim profit distribution plan to pay a cash dividend of CNY 0.30 (tax inclusive) per 10 shares, totaling CNY 22.83 million 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount/Shares | | :--- | :--- | | Number of Bonus Shares per 10 Shares (shares) | 0 | | Dividend per 10 Shares (CNY) (tax inclusive) | 0.30 | | Share Capital Base for Distribution (shares) | 760,848,039 | | Cash Dividend Amount (CNY) (tax inclusive) | 22,825,441.17 | | Cash Dividend Amount by Other Means (CNY) | 0.00 | | Total Cash Dividend (including other means) (CNY) | 22,825,441.17 | | Distributable Profit (CNY) | 2,325,015,721.44 | | Ratio of Total Cash Dividend to Total Profit Distribution | 100.00% | - This profit distribution plan considers industry characteristics, enterprise development stage, operational management, and medium-to-long-term development, complying with relevant regulations and effectively protecting investors' legitimate interests[95] - This distribution plan still needs to be submitted to the company's first extraordinary general meeting of shareholders in 2025 for deliberation[95] III. Implementation of 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 in place during the reporting period - The company reported no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[96] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[97] V. Social Responsibility Tofflon, a leading pharmaceutical equipment service provider, is committed to protecting shareholder and creditor rights, employee welfare, and promoting sustainable development through ethical business practices and community engagement - The company protects shareholder and creditor rights by improving governance structure, timely information disclosure, and stable cash dividends[97][98] - The company provides comprehensive social security and benefits, standardized labor contracts and compensation, humanistic care, occupational health and safety protection, and democratic management mechanisms for its employees[99][100] - The company adopts quality management systems such as ISO9001 and ICHQ9, implementing the "Quality by Design" concept in R&D and design to ensure product quality and compliance[100][102] - The company promotes ISO14000 environmental management standards and EHS systems, strictly controlling "three wastes" emissions, utilizing green energy, and actively participating in education, poverty alleviation, volunteer services, and other social welfare initiatives[103][104][106][107] Section V Significant Matters This section details significant events, including commitments, related party transactions, litigation, and other material disclosures during the reporting period I. Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no fulfilled or overdue unfulfilled commitments by its controlling shareholder, shareholders, related parties, acquirers, or the company itself during or as of the end of the reporting period - The company reported no fulfilled or overdue unfulfilled commitments by its controlling shareholder, shareholders, related parties, acquirers, or the company itself during or as of the end of the reporting period[109] II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period - The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period[110] III. Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[111] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[112] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the "Non-Standard Audit Report" for the Current Period The company reported no explanations by the Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" for the current period - The company reported no explanations by the Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" for the current period[113] VI. Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Prior Year The company reported no explanations by the Board of Directors regarding a "non-standard audit report" for the prior year - The company reported no explanations by the Board of Directors regarding a "non-standard audit report" for the prior year[113] VII. Bankruptcy Reorganization Matters The company reported no bankruptcy reorganization matters during the reporting period - The company reported no bankruptcy reorganization matters during the reporting period[114] VIII. Litigation Matters The company reported no significant litigation or arbitration matters, nor any other litigation matters, during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[115] - The company had no other litigation matters during the reporting period[115] IX. Penalties and Rectification The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[115] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period - The company reported no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period[116] XI. Significant Related Party Transactions The company reported no significant related party transactions related to daily operations, asset/equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships during the reporting period - The company reported no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships during the reporting period[116][117][118][119] - The company has no deposits, loans, credit lines, or other financial business with financial companies that have related party relationships[120][121] - The company, as a limited partner, committed CNY 200 million of its own funds to invest in the establishment of Shanghai Biopharmaceutical M&A Private Equity Fund Partnership (Limited Partnership), accounting for 3.99% of the total capital contribution[122] - This investment constitutes a related party joint investment and completed filing procedures on April 15, 2025[122] XII. Significant Contracts and Their Performance The company reported no trusteeship or contracting arrangements during the reporting period, and no significant guarantees, major operating contracts, or other significant contracts - The company reported no trusteeship or contracting arrangements during the reporting period[124] - Dianfan Medical leases office space, but this leasing project did not have an impact of more than 10% on the company's total profit during the reporting period[124] - The company reported no significant guarantees, major operating contracts, or other significant contracts during the reporting period[125][126] XIII. Explanation of Other Significant Matters The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[127] XIV. Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period - The company reported no significant matters concerning its subsidiaries during the reporting period[128] Section VI Share Changes and Shareholder Information This section details the company's share capital structure, shareholder information, and any changes in shareholdings or control during the reporting period I. Share Capital Changes During the reporting period, the company's total share capital remained unchanged at 765,828,040 shares, with no impact on per-share financial indicators Share Capital Changes | Share Type | Quantity Before Change (shares) | % Before Change | Increase/Decrease This Change (shares) | Quantity After Change (shares) | % After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 203,170,685 | 26.53% | 0 | 203,170,685 | 26.53% | | 3. Other Domestic Shares | 203,170,685 | 26.53% | 0 | 203,170,685 | 26.53% | | Domestic Natural Person Shares | 203,170,685 | 26.53% | 0 | 203,170,685 | 26.53% | | II. Unrestricted Shares | 562,657,355 | 73.47% | 0 | 562,657,355 | 73.47% | | 1. RMB Ordinary Shares | 562,657,355 | 73.47% | 0 | 562,657,355 | 73.47% | | III. Total Shares | 765,828,040 | 100.00% | 0 | 765,828,040 | 100.00% | - During the reporting period, the company's total share capital remained unchanged, and the reasons, approval, and transfer of share changes are not applicable[131][132] - The company did not implement share repurchases, and share changes had no impact on basic and diluted earnings per share or net assets per share attributable to ordinary shareholders for the most recent year and period[132] II. Securities Issuance and Listing The company reported no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[132] III. Shareholder Numbers and Shareholding As of the end of the reporting period, the company had 32,103 ordinary shareholders, with Zheng Xiaodong as the largest shareholder, holding 34.08% of shares - The total number of ordinary shareholders at the end of the reporting period was 32,103[133] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zheng Xiaodong | Domestic Natural Person | 34.08% | 260,959,008 | 195,719,256 | 65,239,752 | | Zheng Keqing | Domestic Natural Person | 16.41% | 125,667,408 | 0 | 125,667,408 | | Shanghai Biopharmaceutical Industry Equity Investment Fund Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3.17% | 24,307,243 | 0 | 24,307,243 | | SDIC Chuanghe Investment Management Co., Ltd. - Advanced Manufacturing Industry Investment Fund Phase II (Limited Partnership) | Other | 3.17% | 24,307,243 | 0 | 24,307,243 | | Shanghai Junhe Licheng Investment Management Center (Limited Partnership) - Ningbo Junhe Tongxin Equity Investment Partnership (Limited Partnership) | Other | 1.90% | 14,584,346 | 0 | 14,584,346 | | Yuekai Capital Investment Co., Ltd. - Guangzhou Yuekai Medical and Health Equity Investment Partnership (Limited Partnership) | Other | 1.27% | 9,722,897 | 0 | 9,722,897 | | Zheng Xiaoyou | Domestic Natural Person | 0.97% | 7,462,392 | 5,596,794 | 1,865,598 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.96% | 7,333,585 | 0 | 7,333,585 | | Nord Fund - Shanghai Guoxin Investment Development Co., Ltd. - Nord Fund Pujiang No. 890 Single Asset Management Plan | Other | 0.63% | 4,812,834 | 0 | 4,812,834 | | Wei Jun | Domestic Natural Person | 0.52% | 4,006,500 | 0 | 4,006,500 | - Mr. Zheng Xiaodong and Ms. Zheng Keqing are father and daughter, acting in concert; Mr. Zheng Xiaodong and Mr. Zheng Xiaoyou are brothers[134] - Ms. Zheng Keqing has entrusted all voting rights corresponding to her 125,667,408 shares to Mr. Zheng Xiaodong[134] - The company's repurchase special securities account holds 4,980,001 shares, accounting for 0.65% of the total share capital134 IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[136] - Specific details can be found in the 2024 annual report[136] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[137] - The company's actual controller remained unchanged during the reporting period[137] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[139] Section VII Bond-Related Information This section confirms that the company had no bond-related information during the reporting period Bond-Related Information The company reported no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[141] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, and cash flow statements I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[143] II. Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet (Period-End) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 13,237,060,188.90 | | Total Liabilities | 5,209,869,028.21 | | Total Owners' Equity Attributable to Parent Company | 7,787,451,203.27 | | Minority Interests | 239,739,957.42 | | Total Owners' Equity | 8,027,191,160.69 | Consolidated Income Statement (2025 Semi-Annual) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 2,428,518,866.54 | | Operating Profit | 69,896,310.78 | | Total Profit | 69,807,954.23 | | Net Profit | 49,717,905.94 | | Net Profit Attributable to Parent Company Shareholders | 45,919,546.96 | | Minority Interest Income | 3,798,358.98 | Consolidated Cash Flow Statement (2025 Semi-Annual) | Item | Amount (