惠通科技(301601) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides important notices, the report's table of contents, and definitions of key terms to ensure clarity and understanding Important Notice The company's board of directors and management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility for its content - The company's board of directors and senior management guarantee the report's truthfulness, accuracy, and completeness, and assume legal responsibility[3] - The company's responsible person, chief accountant, and head of accounting department declare the financial report is true, accurate, and complete[3] - Content involving future plans and performance forecasts does not constitute a substantial commitment, and investors should be aware of the risks[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[4] Table of Contents This report lists eight main chapters and their starting page numbers, providing investors with an overall structural guide covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share capital changes, bond information, and financial reports - The report comprises eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share capital changes, bond information, and financial reports[6] Definitions This section defines common terms used in the report, including company names, related parties, accounting periods, and professional terms for key products and technologies like nylon, biodegradable materials, polyester, and hydrogen peroxide, ensuring clear understanding of the report's content - The company's short name is "Huitong Technology", and its full name is "Yangzhou Huitong Technology Co., Ltd."[13] - The reporting period refers to January 1, 2025 to June 30, 2025[13] - Detailed definitions are provided for core product and technology terms such as Nylon (PA66, PA56), Biodegradable Materials (PLA, PBAT, PBS), Polyester (PET), and Hydrogen Peroxide (H2O2)[13][14] Section II Company Profile and Key Financial Indicators This section presents the company's basic information and a summary of its key financial data and performance indicators for the reporting period Company Basic Information This section provides the company's stock information, Chinese and English names, legal representative, contact details, registered and office addresses, website, and email, also disclosing the completion of industrial and commercial change registration and renewal of business license on March 31, 2025 - Stock Abbreviation: Huitong Technology, Stock Code: 301601, Listing Exchange: Shenzhen Stock Exchange[16] - Legal Representative: Zhang Jiangang[16] - Company Registered Address: No. 301 Wangjiang Road, Development Zone, Yangzhou City, Office Address: No. 8 Huayang East Road, Development Zone, Yangzhou City[18] - The company completed industrial and commercial change registration and obtained a new business license on March 31, 2025[21] Key Accounting Data and Financial Indicators During this reporting period, the company's operating revenue and net profit attributable to shareholders significantly decreased year-on-year, and net cash flow from operating activities turned negative; however, total assets and net assets attributable to shareholders both achieved significant growth, reflecting the company's expansion in asset scale and shareholder equity Key Financial Data Year-on-Year Change | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 277,210,825.63 | 443,485,672.06 | -37.49% | | Net Profit Attributable to Shareholders of the Listed Company | 16,372,814.88 | 82,860,492.26 | -80.24% | | Net Cash Flow from Operating Activities | -17,962,777.63 | 130,325,377.15 | -113.78% | | Basic Earnings Per Share (Yuan/share) | 0.1216 | 0.7865 | -84.54% | | Weighted Average Return on Net Assets | 1.34% | 9.70% | -8.36% | | Total Assets (End of Period) | 2,140,188,938.30 | 1,852,381,948.92 | 15.54% | | Net Assets Attributable to Shareholders (End of Period) | 1,287,623,396.59 | 922,808,883.76 | 39.53% | - The decrease in operating revenue is primarily due to the high customization of the company's products, large single contract amounts, long execution cycles, and the high base from the Indonesian APP project delivery in the prior year[65] - The negative net cash flow from operating activities is mainly due to a decrease in sales collections during the current period[65] Non-recurring Gains and Losses Items and Amounts The total non-recurring gains and losses for this reporting period amounted to 970,005.82 Yuan, primarily including investment losses from the disposal of a portion of the subsidiary Huitong New Materials' equity, government grants recognized in current profit or loss, and gains or losses from entrusted investments or asset management Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets (including the reversal of impairment provisions already made) | -6,540,633.92 | Primarily investment losses from losing control over subsidiary Huitong New Materials due to partial equity disposal | | Government grants recognized in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 5,345,672.29 | | | Gains or losses from entrusted investments or asset management | 1,615,535.00 | | | Other non-operating income and expenses apart from the above | -142,955.45 | | | Other gains and losses meeting the definition of non-recurring gains and losses | 805,901.71 | Non-recurring gains and losses included in the net profit of Oerlikon Barmag Huitong (Yangzhou) Engineering Co., Ltd. and Element Huitong New Materials (Yangzhou) Co., Ltd. calculated based on shareholding ratio | | Less: Income tax impact | -5,748.87 | | | Impact on minority interests (after tax) | 119,262.68 | | | Total | 970,005.82 | | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's main business operations, core competencies, financial performance, and risk factors during the reporting period Company's Main Business Activities During the Reporting Period As a professional provider of integrated technical solutions for high-end chemical engineering equipment and products, the company primarily engages in equipment manufacturing, design consulting, and EPC general contracting in the production of polymer materials (nylon, biodegradable materials, polyester) and hydrogen peroxide; each sub-industry faces development trends such as capacity optimization, technological transformation, and policy drivers, and the company consolidates its market position through active layout in emerging fields, continuous R&D investment, and strengthened management - The company's main business covers equipment manufacturing, design consulting, and EPC general contracting, serving enterprises producing high-performance nylon, bio-based nylon, biodegradable materials, polyester, and hydrogen peroxide[32] - The nylon industry is in a period of capacity expansion, driven by technological breakthroughs and domestic substitution[29] - The biodegradable materials industry is in an adjustment phase after rapid capacity expansion, with policy and technological innovation as long-term drivers[29] - The hydrogen peroxide industry faces localized overcapacity and high-end transformation, with high growth demand for high-purity electronic-grade products and a wave of process upgrades for industrial-grade hydrogen peroxide[30] - The polyester industry is accelerating its transformation towards high-end and low-carbon directions, such as recycled polyester and bio-based polyester[30] Industry Development Status The nylon industry is in a period of capacity expansion driven by technological breakthroughs and domestic substitution; the biodegradable materials industry, after policy-driven expansion, is entering a phase of technological optimization and capacity integration; the hydrogen peroxide industry faces localized overcapacity but high demand for high-purity electronic-grade products, with industrial-grade hydrogen peroxide undergoing process upgrades; the polyester industry is accelerating its transformation towards high-end and low-carbon directions like recycled and bio-based polyester - Nylon 66 and Nylon 56 capacity expansion is primarily driven by technological breakthroughs and domestic substitution, expected to continue for a long period[29] - The biodegradable materials industry, after policy-driven expansion, is entering a phase of technological optimization and capacity integration, facing short-term price competition but with strong long-term prospects for replacing traditional plastics[29] - The hydrogen peroxide industry has localized overcapacity, but demand for high-purity electronic-grade products is growing rapidly, and industrial-grade hydrogen peroxide faces policy-driven elimination of acid-base fixed-bed processes and promotion of fluidized-bed processes[30] - The polyester industry, driven by "dual carbon" policies, is accelerating its transformation towards high-end and low-carbon directions such as recycled polyester and bio-based polyester, shifting from "scale expansion" to "value enhancement"[30] Company's Main Business The company is a professional provider of integrated technical solutions for high-end chemical engineering equipment and products, primarily engaging in equipment manufacturing, design consulting, and EPC general contracting in the production of polymer materials and hydrogen peroxide, holding a Grade A qualification for chemical engineering in the chemical, petrochemical, and pharmaceutical industries, and possessing comprehensive technical service capabilities from design and main equipment manufacturing to plant startup - The company provides equipment manufacturing, design consulting, and EPC general contracting services for enterprises producing high-performance nylon (PA66), bio-based nylon (PA56), biodegradable materials (PBAT/PBS), polyester (PET), and hydrogen peroxide (H2O2)[32] - The company holds a Grade A qualification for chemical engineering in the chemical, petrochemical, and pharmaceutical industries[32] Company's Main Products and Services The company primarily offers equipment manufacturing, design consulting, and EPC general contracting services to clients in the nylon, biodegradable materials, polyester, and hydrogen peroxide production sectors; equipment manufacturing includes core equipment such as esterification reactors, polycondensation reactors, viscosity-increasing self-cleaning reactors, U-type reactors, flash evaporators, pre- and post-polymerization reactors, and hydrogen peroxide units; design consulting provides product technical solution design, preliminary design, and detailed construction drawing design; EPC general contracting adopts a "Design-Procurement-Construction" (EPC) model - Equipment Manufacturing: Provides esterification reactors, polycondensation reactors, and viscosity-increasing self-cleaning reactors for PET/PBAT/PBS production lines; U-type reactors, flash evaporators, and pre- and post-polymerization reactors for nylon production lines; and hydrogen peroxide units (fluidized bed process)[34][35][36][37] - Design Consulting: Offers product technical solution design, preliminary design, and detailed construction drawing design, possessing Grade A qualification and proprietary intellectual property technology[38] - EPC General Contracting: Adopts a "Design-Procurement-Construction" (EPC) general contracting model, taking full responsibility for project quality, safety, schedule, and cost[39] Company's Main Business Model The company employs an "order-based" production model for equipment manufacturing, generates revenue from design consulting through the delivery of design documents, and provides full-process services including design, procurement, and construction for EPC general contracting; procurement is driven by order requirements, sales combine "technical marketing" and "brand marketing" strategies, and the profitability model corresponds to the three business types: equipment manufacturing, design consulting, and EPC general contracting - Production/Service Model: Equipment manufacturing adopts "order-based" production; design consulting provides technical solutions and construction drawing design; EPC general contracting covers design, equipment manufacturing, procurement, installation, commissioning, acceptance, and after-sales service[40][42][43] - Procurement Model: Based on order requirements, competitive inquiries are made to qualified suppliers through a "Procurement List"[44] - Sales Model: Combines "technical marketing" and "brand marketing" to expand customers through market information collection, business division, technical problem solving, and industry promotion[45] - Profitability Model: Equipment manufacturing generates revenue by delivering equipment based on core technology; design consulting earns revenue by providing services based on industry experience and talent; EPC general contracting generates revenue by offering full-process services leveraging design, equipment manufacturing, and engineering construction capabilities[48] Company's Industry Position The company holds a leading domestic position in high-performance polymer material Nylon 66 technical services, its hydrogen peroxide fluidized bed palladium catalyst hydrogenation process technology has reached international leading levels, and its biodegradable material production line scale is domestically leading; the company is a national-level specialized, refined, distinctive, and innovative "Little Giant" enterprise, possessing numerous honors and innovative achievements - Holds a leading domestic position in Nylon 66 technical services, with successful application of melt direct spinning staple fiber technology and breakthroughs in filament-grade chips[49] - Advanced hydrogen peroxide fluidized bed palladium catalyst hydrogenation process technology, with a maximum single-line capacity of 1 million tons/year (calculated at 27.50%), leading internationally[49] - PBAT/PBS biodegradable material production line designed annual capacity exceeds 300,000 tons, leading domestically[49] - The company is a national-level specialized, refined, distinctive, and innovative "Little Giant" enterprise, a Jiangsu Province High-tech Enterprise, and a National Intellectual Property Advantage Enterprise, among others[49] Main Performance Driving Factors The company's performance is driven by policy and industry factors (supply-side reform, capacity optimization, energy conservation and emission reduction, breakthroughs in raw material localization) and internal company factors (market demand, core technological innovation, strengthened management); the company actively expands into emerging fields, continuously invests in R&D, and enhances profitability through differentiated competition and talent incentives - Policy and Industry Drivers: Supply-side structural reform, capacity optimization, energy conservation and emission reduction, elimination of outdated capacity, and breakthroughs in upstream raw material localization for Nylon 56/66 and increased demand for high-performance nylon and industrial hydrogen peroxide[50] - Market Demand Drivers: Closely follows industrial policies and market demand, strategically positioning in biodegradable materials, nylon, hydrogen peroxide, and other fields, benefiting from downstream capacity expansion and fixed asset investment demand[51] - Core Technological Innovation Drivers: Continuous R&D investment, with ongoing breakthroughs in technologies such as polylactic acid production equipment and high-capacity, high-concentration hydrogen peroxide fluidized beds, building a solid technological foundation[52] - Management Drivers: Strengthens production control and internal management, adopts differentiated competitive strategies, explores new markets, and incentivizes technological innovation through equity incentives and talent development[53] Core Competitiveness Analysis The company's core competitiveness lies in technological innovation, customer resources, R&D and intellectual property, and qualification and industry standard advantages; through continuous R&D investment, deepened customer cooperation, improved R&D systems, and talent development, the company has solidified its leading position in high-end chemical engineering equipment and technical services - The company possesses multiple industry-leading core equipment manufacturing and engineering patent technologies and proprietary technologies in the fields of polyester, nylon, hydrogen peroxide, and biodegradable materials engineering[55] - Selected into the Ministry of Industry and Information Technology's list of key "Little Giant" enterprises, establishing a comprehensive independent R&D system in four major areas: nylon engineering, biodegradable material polymerization, polyester processes, and hydrogen peroxide fluidized beds[56] - Wholly-owned subsidiary Huitong Bio's polylactic acid project received a 50 million Yuan central budget investment subsidy, with significant energy saving and carbon reduction effects[56] - Established business cooperation with industry-leading clients such as Yangnong Chemical, Pingmei Shenma, Cathay Biotech, Wanhua Chemical, with a client base primarily consisting of large state-owned enterprises and listed companies[57] - As of the end of June 2025, the company has 70 R&D personnel and 102 engineering technicians, holding 45 domestic invention patents, 107 utility model patents, and 5 software copyrights[58][60] - Holds multiple professional qualifications, including Grade A qualification for chemical engineering in the chemical, petrochemical, and pharmaceutical industries, and pressure vessel design and manufacturing licenses, and participates in the formulation of multiple national and industry standards[61][62] - In April 2025, the company was selected as one of the first batch of key enterprises in Jiangsu Province authorized to conduct senior professional title evaluations independently[61] Technological Innovation Advantage The company has focused on technological innovation and independent R&D for over 20 years, accumulating numerous industry-leading core equipment manufacturing and engineering patent technologies in polyester, nylon, hydrogen peroxide, and biodegradable materials engineering, and has been selected as a key "Little Giant" enterprise by the Ministry of Industry and Information Technology; its wholly-owned subsidiary Huitong Bio's polylactic acid project received a 50 million Yuan central budget investment subsidy, demonstrating significant energy saving and carbon reduction effects - The company possesses multiple industry-leading core equipment manufacturing and engineering patent and proprietary technologies in the fields of polyester, nylon, hydrogen peroxide, and biodegradable materials engineering[55] - In August 2024, it was selected into the Ministry of Industry and Information Technology's list of key "Little Giant" enterprises, building multi-dimensional technological barriers with core patents covering key links across the entire industry chain[56] - Wholly-owned subsidiary Huitong Bio's "Annual Production of 105,000 Tons of Polylactic Acid Biodegradable Plastics and Its Series Products R&D and Production Project" received a 50 million Yuan central budget investment subsidy, expected to save 42,000 tons of standard coal/year and reduce carbon dioxide emissions by 52,500 tons/year[56] Customer Resource Advantage Leveraging advanced technology and excellent service capabilities, the company has established a strong reputation in the industry, building cooperative relationships with leading clients such as Yangnong Chemical, Pingmei Shenma, Cathay Biotech, and Wanhua Chemical; its customer base primarily consists of large state-owned enterprises and listed companies and their subsidiaries, possessing deep resource accumulation and market influence - The company has established a good reputation and recognition in the industry due to its advanced technological processes and excellent design consulting, equipment manufacturing, and EPC general contracting capabilities[57] - Established business cooperation with industry-leading clients such as Yangnong Chemical, Pingmei Shenma, Cathay Biotech, China TCC, Changhong High-Tech, Wanhua Chemical, Yankuang Group, Shanxi Huayang, and Hubei Yihua[57] - The downstream customer base structure is clear, primarily composed of large state-owned enterprises, listed companies, and their subsidiaries[57] R&D and Intellectual Property Advantage The company has established a comprehensive R&D system and a strong R&D team, comprising 70 R&D personnel and 102 engineering technicians; the company focuses on building an R&D talent pipeline, collaborates with universities and research institutions, and continuously invests in R&D; as of the end of June 2025, the company holds 45 domestic invention patents, 107 utility model patents, and 5 software copyrights - As of the end of June 2025, the company has 70 R&D personnel and 102 engineering technicians[58] - Established Jiangsu Provincial Enterprise Technology Center and Jiangsu Provincial Industrial Design Center, providing product innovation, design, and R&D support[60] - As of the end of June 2025, the company holds 45 domestic invention patents, 107 utility model patents, and 5 software copyrights[60] - Ongoing R&D projects involve technologies such as polylactic acid production equipment and high-capacity, high-concentration hydrogen peroxide fluidized beds[52] Qualifications and Industry Standard Advantage The company has received over twenty honors, including being a national-level specialized, refined, distinctive, and innovative "Little Giant" enterprise, and holds multiple professional qualifications such as Grade A qualification for chemical engineering in the chemical, petrochemical, and pharmaceutical industries, and pressure vessel design and manufacturing licenses, demonstrating full-process service capabilities; the company also actively participates as a drafting unit in the formulation of multiple national and industry standards and was selected as one of the first batch of key enterprises in Jiangsu Province authorized to conduct senior professional title evaluations in April 2025 - Received over twenty honors, including national-level specialized, refined, distinctive, and innovative "Little Giant" enterprise, National Intellectual Property Advantage Enterprise, Jiangsu Provincial Service-Oriented Manufacturing Demonstration Enterprise, and Jiangsu Provincial Industrial Design Center[61] - Holds multiple professional qualifications, including Grade A qualification for chemical engineering in the chemical, petrochemical, and pharmaceutical industries, and pressure vessel design and manufacturing licenses, possessing full-process service capabilities from design and manufacturing to plant startup[61][62] - Actively participates as a drafting unit in the formulation of multiple national and industry standards[61] - In April 2025, successfully selected as one of the first batch of key enterprises in Jiangsu Province authorized to conduct senior professional title evaluations independently[61] Main Business Analysis During this reporting period, the company's operating revenue decreased by 37.49% year-on-year, and net profit attributable to the parent company decreased by 80.24%, mainly due to the high base from the Indonesian APP project delivery and reduced sales collections; revenue from biodegradable materials business increased by 1365.60% year-on-year, with significant revenue growth in East China and Central China regions; administrative expenses, taxes and surcharges, other income, credit impairment losses, and asset impairment losses all increased significantly year-on-year, while investment income decreased substantially Key Financial Data Year-on-Year Change | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 277,210,825.63 | 443,485,672.06 | -37.49% | High base from Indonesian APP project delivery, significant decline in current period revenue | | Operating Cost | 193,206,808.75 | 313,551,487.83 | -38.38% | Operating revenue decreased from prior period, leading to a corresponding reduction in costs | | Administrative Expenses | 34,147,900.23 | 24,592,378.56 | 38.86% | New office building capitalized, leading to increased depreciation and office expenses, as well as increased management personnel salaries and intermediary service fees compared to the prior period | | Financial Expenses | -328,645.11 | -1,551,453.53 | 78.82% | Increased loan interest expenses and decreased interest income in the current period compared to the prior period | | Income Tax Expense | -1,504,088.33 | 12,234,500.39 | -112.29% | Decrease in total profit in the current period led to a decrease in income tax expense | | Net Cash Flow from Operating Activities | -17,962,777.63 | 130,325,377.15 | -113.78% | Decrease in sales collections in the current period | | Net Cash Flow from Investing Activities | 56,625,625.01 | -39,618,450.98 | 242.93% | Cash received from redemption of wealth management products exceeded cash paid for purchase of wealth management products in the current period | | Net Cash Flow from Financing Activities | 227,793,055.99 | 31,546,269.70 | 622.09% | Proceeds from public offering of RMB ordinary shares in the current period | | Other Income | 5,467,718.79 | 244,822.10 | 2,133.34% | Increase in government grants in the current period compared to the prior period | | Investment Income | 108,838.24 | 10,552,822.66 | -98.97% | Investment loss from disposal of a portion of subsidiary Huitong New Materials' equity, and decrease in net profit of associate companies | | Credit Impairment Losses | -13,212,075.37 | -1,364,592.65 | 868.21% | Increase in accounts receivable led to an increase in impairment provisions compared to the prior period | | Asset Impairment Losses | -7,133,394.00 | -1,012,769.08 | 604.35% | Increase in contract assets led to an increase in impairment provisions compared to the prior period | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Manufacturing | 189,946,018.05 | 132,369,001.96 | 30.31% | -46.28% | -47.48% | 1.59% | | EPC General Contracting | 60,061,955.46 | 41,276,116.10 | 31.28% | 22.72% | 31.05% | -4.37% | | Nylon | 38,534,895.67 | 24,570,608.84 | 36.24% | -26.37% | -24.94% | -1.21% | | Hydrogen Peroxide | 114,505,178.74 | 76,524,978.51 | 33.17% | -64.53% | -67.02% | 5.07% | | Biodegradable Materials | 86,957,599.07 | 61,937,121.42 | 28.77% | 1,365.60% | 1,416.36% | -2.39% | | East China Region | 193,487,782.93 | 137,992,308.19 | 28.68% | 297.93% | 336.93% | -6.37% | | Central China Region | 60,851,778.26 | 38,686,416.87 | 36.43% | 921.81% | 1,439.68% | -21.38% | Non-Main Business Analysis The company's non-main business significantly impacts total profit, with items such as investment income, asset impairment, non-operating expenses, and asset disposal gains having a substantial contribution or effect on total profit; government grants are an important source of non-recurring income, but most non-main business activities are not sustainable Impact of Non-Main Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Explanation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 108,838.24 | 0.75% | Primarily investment income recognized under the equity method and investment losses from disposal of a portion of subsidiary Huitong New Materials' equity | Investment income recognized under the equity method is sustainable | | Gains or losses from changes in fair value | 0.00 | 0.00% | | | | Asset Impairment | -7,133,394.00 | -48.86% | Provision for impairment of contract assets and inventory depreciation | No | | Non-operating Income | 1.27 | 0.00% | Enterprise account verification funds | No | | Non-operating Expenses | 265,781.00 | 1.82% | Primarily external donations | No | | Gains from Asset Disposal | 110,304.08 | 0.76% | Disposal of fixed assets | No | | Other Income | 5,467,718.79 | 37.45% | Primarily government grants related to daily operating activities | No | Asset and Liability Status Analysis At the end of the reporting period, the company's total assets increased by 15.54% year-on-year, and net assets attributable to shareholders increased by 39.53%; monetary funds, fixed assets, accounts receivable, and contract assets significantly increased, mainly due to the proceeds from public offering and the capitalization of construction in progress; long-term borrowings and construction in progress decreased; total restricted assets at period-end amounted to 74,688,393.80 Yuan, primarily for deposits and bank credit collateral Asset Composition Significant Changes | Item | End of Current Reporting Period (Yuan) | Proportion of Total Assets | End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 504,902,151.15 | 23.59% | 237,644,914.90 | 12.83% | 10.76% | Primarily due to proceeds from public offering of RMB ordinary shares in the current period | | Accounts Receivable | 202,074,040.46 | 9.44% | 128,639,002.86 | 6.94% | 2.50% | | | Contract Assets | 150,185,702.61 | 7.02% | 97,272,099.35 | 5.25% | 1.77% | | | Inventories | 191,419,917.91 | 8.94% | 206,966,230.27 | 11.17% | -2.23% | | | Fixed Assets | 236,641,243.40 | 11.06% | 56,063,115.30 | 3.03% | 8.03% | Primarily due to capitalization of construction in progress in the current period | | Construction in Progress | 456,879,960.10 | 21.35% | 609,515,041.71 | 32.90% | -11.55% | Primarily due to capitalization of construction in progress in the current period | | Long-term Borrowings | 230,000,000.00 | 10.75% | 315,000,000.00 | 17.01% | -6.26% | Primarily due to repayment of loans in the current period | - Total assets at period-end were 2,140,188,938.30 Yuan, an increase of 15.54% compared to the end of the prior year[22][72] - Net assets attributable to shareholders of the listed company were 1,287,623,396.59 Yuan, an increase of 39.53% compared to the end of the prior year[22][72] Asset Rights Restriction Status as of the End of the Reporting Period As of the end of the reporting period, certain monetary funds, intangible assets (land use rights), and fixed assets (buildings) of the company were restricted, primarily used as deposits for issuing bank acceptance bills and guarantees, and as collateral for bank credit Asset Rights Restriction Status as of the End of the Reporting Period | Item | End of Period Balance (Yuan) | Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,050,000.00 | 1,050,000.00 | Used as deposits for issuing bank acceptance bills, guarantees, etc. | | Intangible Assets - Land Use Rights | 37,129,131.00 | 34,715,737.29 | Pledged for bank credit | | Fixed Assets - Buildings | 36,509,262.80 | 15,612,744.18 | Pledged for bank credit | | Total | 74,688,393.80 | 51,378,481.47 | | Investment Status Analysis The company's net proceeds from its initial public offering amounted to 353.7179 million Yuan in this reporting period, with a cumulative investment of 98.8044 million Yuan, primarily for the Technology R&D Center project; wealth management products incurred during the reporting period totaled 504 million Yuan, including 270 million Yuan from proceeds and 234 million Yuan from own funds; the company has no significant equity investments, non-equity investments, financial assets measured at fair value, derivative investments, or entrusted loans - Total proceeds from public offering were 414.4160 million Yuan, with net proceeds of 353.7179 million Yuan, transferred to the company's designated account on January 10, 2025[78] - As of June 30, 2025, the company has cumulatively invested 98.8044 million Yuan of the proceeds, accounting for 27.93% of the net proceeds[78] - The proceeds are primarily invested in the "Intelligent Upgrade and Technical Transformation Project for High-end Chemical Equipment Production Line" and the "Technology R&D Center (Huitong Research Institute) Project"[81] - The "Technology R&D Center (Huitong Research Institute) Project" has invested 98.8044 million Yuan, with an investment progress of 39.16%, and is expected to reach its intended usable state by September 30, 2026[81] - Wealth management products incurred during the reporting period totaled 504 million Yuan, including 234 million Yuan from own funds and 270 million Yuan from proceeds[85] - The outstanding balance of wealth management products at period-end was 125.50 million Yuan, all from own funds[85] Use of Proceeds from Public Offering The company's net proceeds from its initial public offering amounted to 353.7179 million Yuan, with a cumulative investment of 98.8044 million Yuan as of the end of the reporting period, primarily for the Technology R&D Center project, representing an investment progress of 27.93%; the company has used 91.9845 million Yuan of the proceeds to replace self-raised funds previously invested in IPO projects and paid issuance expenses - The net proceeds from public offering amounted to 353.7179 million Yuan[78] - As of June 30, 2025, the company has cumulatively invested 98.8044 million Yuan of the proceeds, accounting for 27.93% of the net proceeds[78] - The "Intelligent Upgrade and Technical Transformation Project for High-end Chemical Equipment Production Line" has a committed investment of 101.4179 million Yuan, with 0 Yuan invested in the current reporting period and 0 Yuan cumulatively invested[81] - The "Technology R&D Center (Huitong Research Institute) Project" has a committed investment of 252.30 million Yuan, with 98.8044 million Yuan invested in the current reporting period and 98.8044 million Yuan cumulatively invested, representing an investment progress of 39.16%[81] - On March 26, 2025, the company approved the use of proceeds to replace self-raised funds previously invested in IPO projects and paid issuance expenses, totaling 91.9845 million Yuan[82] Wealth Management Products, Derivative Investments, and Entrusted Loans During the reporting period, the company's wealth management products incurred totaled 504 million Yuan, comprising 234 million Yuan from own funds and 270 million Yuan from proceeds; the outstanding balance at period-end was 125.50 million Yuan, all from own funds; the company had no derivative investments or entrusted loans during the reporting period Overview of Wealth Management Products During the Reporting Period | Specific Type | Source of Funds for Wealth Management | Amount Incurred (Yuan) | Unexpired Balance (Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 234,000,000 | 125,500,000 | | Bank Wealth Management Products | Proceeds from Public Offering | 270,000,000 | 0 | | Total | | 504,000,000 | 125,500,000 | - The company had no derivative investments during the reporting period[86] - The company had no entrusted loans during the reporting period[86] Analysis of Major Holding and Associate Companies During the reporting period, the company's associate company, Oerlikon Barmag Huitong (Yangzhou) Engineering Co., Ltd., achieved a net profit of 13,926,123.94 Yuan; the company disposed of a portion of its equity in subsidiary Element Huitong New Materials (Yangzhou) Co., Ltd., resulting in a loss of control and an investment loss of 6.65 million Yuan Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Oerlikon Barmag Huitong (Yangzhou) Engineering Co., Ltd. | Associate Company | Chemical equipment sales, EPC general contracting | 100,000,000.00 | 13,926,123.94 | - During the reporting period, the company disposed of Element Huitong New Materials (Yangzhou) Co., Ltd. through equity transfer, resulting in a loss of control and an investment loss of 6.65 million Yuan, with the shareholding ratio decreasing from 75% to 29%[90] Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations and industrial policies, technological updates, fluctuations in major raw material prices, loss of technical personnel and leakage of commercial and technical secrets, high customer concentration, and major contract performance; the company has formulated corresponding countermeasures, including strengthening market analysis, continuous R&D investment, optimizing procurement management, enhancing intellectual property protection, expanding customer base, and improving contract performance management - Macroeconomic Fluctuations and Industrial Policy Risks: The specialized petrochemical equipment manufacturing and engineering technical services industry is highly dependent on fixed asset investment, and is subject to cyclical fluctuations influenced by macroeconomic conditions and industrial policies[91] - Countermeasures: Continuously monitor macroeconomic trends and industrial policies, scientifically formulate forward-looking business layouts and operating strategies, and adjust and optimize product and service structures[91] - Technological Update Risks: High-end nylon preparation processes are becoming increasingly diverse, and there is a gap between hydrogen peroxide fluidized bed technology and electronic-grade hydrogen peroxide preparation technology; failure to timely update and iterate technologies and equipment may lead to market share loss to competitors[92] - Countermeasures: Establish and improve market policy and customer demand analysis mechanisms, continuously invest in R&D, focus on industry-university-research cooperation, and overcome core technological bottlenecks[93] - Major Raw Material Price Fluctuation Risks: Steel, a major raw material, accounts for a significant proportion of total product costs, and price fluctuations have a substantial impact on gross margin[94] - Countermeasures: Continuously monitor market dynamics and price changes, increase the number of suppliers to diversify risks, enhance bargaining power through long-term strategic cooperation, and strengthen price forecasting capabilities[94] - Risks of Technical Personnel Loss and Commercial and Technical Secret Leakage: The company's core technology relies on independent R&D, facing risks of intellectual property protection and talent loss[95] - Countermeasures: Establish a complete intellectual property protection system, sign confidentiality and non-compete agreements with core personnel, and focus on long-term incentives and stability measures for key talent[95] - High Customer Concentration Risk: Fixed asset investments in the downstream chemical industry are large in single scale and cyclical, and strategic adjustments or operational difficulties of major customers may impact the company's performance[96] - Countermeasures: Consolidate and deepen cooperation with existing major customers, strengthen business development, attract more domestic and international customers, and extend and expand business into other fields[97] - Major Contract Performance Risks: Engineering technical service contracts have long execution cycles and may be delayed or terminated due to macroeconomic changes, deterioration of customer operations, or project accidents[98] - Countermeasures: Closely monitor project industry dynamics, deepen customer communication, strictly enforce collection milestones; improve procurement management, strengthen supplier evaluation, and strictly adhere to manufacturing standards[98] Section IV Corporate Governance, Environment, and Society This section details the company's corporate governance structure, environmental protection efforts, and social responsibility initiatives during the reporting period Changes in Company Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period, with specific details available in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[102] Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[103] Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[104] Environmental Information Disclosure The listed 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[105] Social Responsibility Status The company actively fulfills its corporate social responsibilities, including protecting shareholder rights, safeguarding employee rights, protecting supplier and customer interests, prioritizing environmental protection and sustainable development, and actively participating in public relations and social welfare initiatives, striving for coordinated development between the enterprise and socio-economic progress - Shareholder Rights Protection: Strictly adheres to laws and regulations, improves corporate governance structure and internal control systems to safeguard shareholders' legitimate rights and interests; maintains principles of completeness, timeliness, and accuracy in information disclosure, and focuses on investor relations management[105] - Employee Rights Maintenance: Adheres to a "people-oriented" philosophy, implements employee benefits (social security, housing provident fund, dormitories, work meals, health checks), and the labor union distributes holiday gifts and daily necessities; encourages employees to obtain qualification certificates to enhance professional competence[106] - Supplier and Customer Interest Protection: Establishes a comprehensive supplier evaluation and management system, strictly controls procurement and material quality to protect suppliers' legitimate rights and interests; upholds a "people-oriented, customer-first" philosophy, provides high-quality products and services, ensures timely delivery, improves quality, and protects customers' legitimate rights and interests[107] - Environmental Protection and Sustainable Development: Places high importance on environmental protection, complies with national and local environmental regulations, and is certified under quality, environmental, and occupational health and safety management systems, with safety officers responsible for environmental work[108] - Public Relations and Social Welfare: Pays taxes honestly and legally, contributing to local economic development; actively participates in community activities and supports local construction, donating 265,000 Yuan to the Yangzhou Economic and Technological Development Zone Charity Association in 2025[109] Section V Significant Matters This section outlines the company's commitments, related party transactions, litigation, and other significant events that occurred during the reporting period Commitments During the reporting period, the company's controlling shareholder, actual controllers, shareholders holding 5% or more of shares, directors, supervisors, and senior management strictly fulfilled all commitments made during the initial public offering or refinancing, including share lock-up, share reduction, share price stabilization, compensation for diluted immediate returns, avoidance of horizontal competition, reduction and standardization of related party transactions, and avoidance of fund occupation; all commitments are "in progress" - Controlling shareholder and actual controllers Yan Xuming and Zhang Jiangang committed to a 36-month share lock-up, with a reduction price not lower than the offering price, and an extended lock-up period of 6 months if the share price falls below the offering price within 6 months after listing[112] - Shareholders holding 5% or more of shares, directors, supervisors, and senior management committed to share lock-up periods ranging from 12 to 36 months, and adhere to share reduction regulations[114][116][117] - The company, its controlling shareholder, actual controllers, directors, supervisors, and senior management all committed to stabilizing the share price, initiating stabilization measures if the price remains below net assets per share for 20 consecutive trading days[127] - Controlling shareholder, actual controllers, directors, supervisors, and senior management committed not to overstep authority in intervening in the company's operations, not to infringe upon company interests, and to link remuneration systems with return compensation measures[129] - The company and its related parties committed to avoiding horizontal competition, reducing and standardizing related party transactions, and avoiding fund occupation[130][133][135][137] - All commitments are "in progress"[112][114][116][117][119][121][123][125][127][129][131][133][135][137][139] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties - The company had no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[140] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[141] Appointment and Dismissal of Accounting Firms The company's half-year financial report was not audited - The company's half-year financial report was not audited[142] Litigation Matters During the reporting period, the company was involved in two major technical secret dispute lawsuits filed by Juyou Chemical, with claimed amounts of 260 million Yuan and 300 million Yuan, respectively; the plaintiff has withdrawn both cases, which the court has approved, and these cases have no impact on the company's current or future profits - Juyou Chemical's lawsuit against Zhongke Qicheng, Huitong Technology, and Huayang Group (Shanxi) Fiber New Materials Co., Ltd. for infringement of technical secrets, involving 260 million Yuan, has been withdrawn by the plaintiff and approved by the court, with no impact on the company's profit[144] - Juyou Chemical's lawsuit against Zhongke Qicheng, Huitong Technology, Changhong High-Tech, and Changhong Bio for infringement of technical secrets, involving 300 million Yuan, has been withdrawn by the plaintiff and approved by the court, with no impact on the company's profit[144] Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers During the reporting period, the company, its controlling shareholder, and actual controllers maintained good integrity, with no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controllers maintained good integrity, with no unfulfilled effective court judgments or large overdue debts[146] Significant Related Party Transactions During the reporting period, the company engaged in related party transactions related to daily operations, primarily including procurement of utilities, materials, and transportation services, as well as sales of equipment manufacturing and design consulting services, and related party housing leases; the company had no other significant related party transactions such as asset or equity acquisitions/disposals, joint external investments, or related party debt/credit transactions Related Party Transactions for Purchase and Sale of Goods, and Provision and Acceptance of Services | Related Party | Related Transaction Content | Amount Incurred in Current Period (Yuan) | Approved Transaction Limit (Yuan) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Yangzhou Yuantong Transportation Engineering Co., Ltd. | Road Signs | 505,000.00 | 0.00 | Yes | | Danyang Jierduo Peptide Co., Ltd. | Utilities | 59,000.00 | 200,000.00 | No | | Yangzhou Weiyang District Runxin Energy-Saving Heat Pipe Factory | Material Procurement | 11,100.00 | 200,000.00 | No | | Yangzhou Hongxiang Logistics Co., Ltd. | Transportation Fees | 506,800.00 | 1,500,000.00 | No | | Oerlikon Barmag Huitong (Yangzhou) Engineering Co., Ltd. | Equipment Manufacturing Business | 6,660,400.00 | 150,000,000.00 | No | | Oerlikon Barmag Huitong (Yangzhou) Engineering Co., Ltd. | Design Consulting Business | 1,893,200.00 | 25,000,000.00 | No | | Element Huitong New Materials (Yangzhou) Co., Ltd. | Chemical Product Sales | 179,400.00 | - | - | Related Party Lease Situations (as Lessor) | Lessee Name | Type of Leased Asset | Lease Income Recognized in Current Period (Yuan) | | :--- | :--- | :--- | | Oerlikon Barmag Huitong (Yangzhou) Engineering Co., Ltd. | Building Lease | 504,587.16 | Related Party Lease Situations (as Lessee) | Lessor Name | Type of Leased Asset | Rent Paid in Current Period (Yuan) | | :--- | :--- | :--- | | Danyang Jierduo Peptide Co., Ltd. | Building Lease | 190,476.19 | | Yang Huijie | Building Lease | 100,000.00 | - The company had no related party transactions involving asset or equity acquisitions/disposals, joint external investments, related party debt/credit transactions, or dealings with affiliated financial companies, or other significant related party transactions during the reporting period[150][151][152][156] Significant Contracts and Their Performance During the reporting period, the company had leasing activities, recognizing external lease income of 572,400 Yuan and lease expenses of 659,000 Yuan; the company had no significant guarantees, major daily operating contracts, or other significant contracts - During the reporting period, the company and its subsidiaries recognized external lease income totaling 572,400 Yuan, and lease expenses totaling 659,000 Yuan[159] - The company had no significant guarantees during the reporting period[160] - The company had no major daily operating contracts or other significant contracts during the reporting period[163] Explanation of Other Significant Matters The company successfully completed the re-election of its board of directors and the re-appointment of senior management and other relevant personnel in August 2025 - The company convened the fifteenth meeting of the third board of directors on August 1, 2025, and the first extraordinary general meeting of shareholders in 2025 on August 20, 2025, to approve the re-election of the board of directors[164] - The company has successfully completed the re-election of its board of directors and the re-appointment of senior management and other relevant personnel[164] Section VI Share Capital Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, and information regarding its shareholders and actual controllers Share Capital Changes During the reporting period, the company's total share capital increased from 105.36 million shares to 140.48 million shares due to the initial public offering of 35.12 million RMB ordinary shares (A-shares); after this change, restricted shares accounted for 78.66% of the total share capital, and unrestricted shares accounted for 21.34%; following this share capital change, the company's basic earnings per share for the first half of 2025 was 0.1216 Yuan/share, diluted earnings per share was 0.1216 Yuan/share, and net assets per share attributable to ordinary shareholders was 9.17 Yuan - The company issued 35.12 million RMB ordinary shares (A-shares) in its initial public offering[169] - Total share capital increased from 105.36 million shares to 140.48 million shares[169] Share Capital Changes | Item | Quantity Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (＋,－) Subtotal (shares) | Quantity After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 105,360,000 | 100.00% | 5,147,894 | 110,507,894 | 78.66% | | II. Unrestricted Shares | 0 | 0.00% | 29,972,106 | 29,972,106 | 21.34% | | III. Total Shares | 105,360,000 | 100.00% | 35,120,000 | 140,480,000 | 100.00% | - After this share capital change, the company's basic earnings per share for the first half of 2025 was 0.1216 Yuan/share, diluted earnings per share was 0.1216 Yuan/share, and net assets per share attributable to ordinary shareholders was 9.17 Yuan[171] Reasons for Share Capital Changes The company's total share capital increased by 35.12 million shares due to the initial public offering of RMB ordinary shares (A-shares) approved by the China Securities Regulatory Commission - The company's initial public offering of 35.12 million RMB ordinary shares (A-shares) led to the change in share capital[169] Changes in Restricted Shares During the reporting period, the total number of restricted shares increased by 5,147,894 shares to 110,507,894 shares, primarily due to the increase in strategically placed restricted shares and offline placed restricted shares from the initial public offering Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Yan Xuming | 21,600,000 | 0 | 21,600,000 | Restricted shares before initial public offering | | Zhang Jiangang | 17,900,000 | 0 | 17,900,000 | Restricted shares before initial public offering | | Shenwan Hongyuan Huitong Technology Employee Strategic Placement No. 1 Collective Asset Management Plan | 0 | 3,512,000 | 3,512,000 | Restricted shares from initial public offering strategic placement | | Restricted Shareholders from Initial Public Offering Offline Placement | 0 | 1,635,894 | 1,635,894 | Restricted shares from initial public offering offline placement | Securities Issuance and Listing The company was listed on the ChiNext board of the Shenzhen Stock Exchange on January 15, 2025, with an initial public offering of 35.12 million RMB ordinary shares (A-shares) at an issue price of 11.80 Yuan/share - The company was listed on the ChiNext board of the Shenzhen Stock Exchange on January 15, 2025, with stock abbreviation "Huitong Technology" and stock code "301601"[175] - Initial public offering of 35.12 million RMB ordinary shares (A-shares) at an issue price of 11.80 Yuan/share[175] Company Shareholder Numbers and Shareholding Status At the end of the reporting period, the total number of ordinary shareholders was 19,160; among the top ten shareholders, Yan Xuming and Zhang Jiangang are the actual controllers, jointly controlling 39.86% of the company's voting rights directly and indirectly; the shareholding status of the top ten shareholders remained stable, with no pledges, markings, or freezes - At the end of the reporting period, the total number of ordinary shareholders was **1