保利联合(002037) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides an important notice, the report's table of contents, and definitions of key terms for clarity Important Notice The board, supervisors, and executives guarantee the report's accuracy and completeness, with financial reports affirmed by key personnel, while noting inherent risks and no dividend plans - The company's board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, free from false statements, misleading representations, or major omissions[3] - The company's principal officer, head of accounting, and head of accounting department declare the financial report is true, accurate, and complete[3] - The company faces risk factors such as safety risks, intensified market competition, and raw material price fluctuations[3] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[4] Table of Contents The report's table of contents clearly lists nine main chapters, offering a comprehensive navigation guide for investors - The report includes nine main chapters, such as company profile, management discussion and analysis, and financial reports[6] Reference Documents Reference documents include signed financial statements, publicly disclosed company files, and the chairman's signed report, available at the company's board office - Reference documents include signed and stamped accounting statements, original copies of all publicly disclosed company documents, and the chairman's signed original semi-annual report[8][9][10] - Reference documents are available at the company's board of directors office[11] Definitions The report defines key terms, including government agencies like SASAC, CSRC, and MIIT, as well as company entities such as the Company, Poly Group, Poly Jiulian, and Poly Xinlian - The report defines major government agencies (e.g., SASAC, CSRC, MIIT) and company entities (e.g., the Company, Poly Group, Poly Jiulian)[12] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents its key financial performance metrics and indicators Company Profile Poly Union Chemical Holdings Group Co., Ltd. (stock code: 002037) is listed on the Shenzhen Stock Exchange, with Liu Wensheng as its legal representative - The company's stock abbreviation is "Poly Union", stock code is "002037", and it is listed on the Shenzhen Stock Exchange[14] - The company's legal representative is Liu Wensheng, and its former abbreviation was "Jiulian Development"[14] Contact Person and Information Contact details for Board Secretary (acting) Liu Wensheng and Securities Affairs Representative Wang Ling are disclosed, including address, phone, fax, and email - Contact information for Board Secretary (acting) Liu Wensheng and Securities Affairs Representative Wang Ling has been disclosed, including address, phone, fax, and email[15] Other Information The company's registered and office addresses, website, and email are provided, with no changes in contact or disclosure information during the reporting period - The company's registered address is in Xintian Park, Guiyang High-tech Industrial Development Zone, Guizhou Province, and its office address is Building 1, No. 9 Shilin East Road, Guanshanhu District, Guiyang, Guizhou Province[16] - The company's website is https://www.poly-union.com, and its email is bllh@polyunion.cn[16] - There were no changes in the company's contact information, information disclosure, or document storage locations during the reporting period[16][17][18] Key Accounting Data and Financial Indicators In H1 2025, the company's operating revenue increased by 24.03% to 3.182 billion yuan, but net profit attributable to shareholders decreased by 15.32% to -59.98 million yuan, while operating cash flow significantly improved - The company does not need to retrospectively adjust or restate prior year accounting data[19] 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Statement: | | | | | Operating Revenue | 3,182,442,296.72 | 2,565,802,029.25 | 24.03% | | Net Profit Attributable to Shareholders of Listed Company | -59,979,687.41 | -52,010,109.50 | -15.32% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -69,466,679.22 | -66,279,329.78 | -4.81% | | Net Cash Flow from Operating Activities | -97,847,443.17 | -288,505,264.80 | 66.08% | | Basic Earnings Per Share (yuan/share) | -0.1240 | -0.1075 | -15.35% | | Diluted Earnings Per Share (yuan/share) | -0.1240 | -0.1075 | -15.35% | | Weighted Average Return on Net Assets | -3.16% | -2.70% | -0.46% | | Balance Sheet (Period-End): | | | | | Total Assets | 16,985,011,980.44 | 17,051,184,434.32 | -0.39% | | Net Assets Attributable to Shareholders of Listed Company | 1,913,302,468.46 | 1,928,037,170.02 | -0.76% | Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[20][21] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 9.49 million yuan, primarily from non-current asset disposal, government grants, and reversal of impairment provisions 2025 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 1,160,557.87 | | Government grants recognized in current profit or loss (excluding those closely related to the company's ordinary business activities and continuously enjoyed in accordance with national policies) | 10,420,470.45 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 2,092,082.40 | | Other non-operating income and expenses apart from the above items | 1,173,548.64 | | Less: Income tax impact | 2,663,617.52 | | Minority interest impact (after tax) | 2,696,050.03 | | Total | 9,486,991.81 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[24] Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, and future outlook, including key business activities, core competencies, and risk management strategies Principal Business Activities During the Reporting Period The company's core business encompasses civil explosive materials R&D, production, sales, blasting services, and ecological industry operations, with stable industry performance but increased market competition - In the first half of 2025, the global economy experienced a moderate recovery, and China's economy demonstrated strong resilience[26] - The civil explosive industry generally operated stably, with explosive production largely flat year-on-year, but intensified market competition led to a decrease in total output value and sales[26] - The civil explosive industry is strictly regulated by the Ministry of Industry and Information Technology and the Ministry of Public Security, implementing a full-process licensing system for production, sales, purchase, transportation, blasting, and storage[27][28] - Policy directives include promoting digital electronic detonators, on-site mixed explosives, intelligent transformation, industry restructuring, and integrated civil explosive transformation[30][32][33][34][35] - The goal is to achieve an "integrated" service model as the primary operating model for the civil explosive industry by the end of 2025, reducing the number of group enterprises to 50, and increasing the concentration of the top 10 enterprises to 60%[32] - By the end of 2027, unmanned production lines for civil explosive products will be widely promoted, forming 3 to 5 large civil explosive enterprise groups with strong international competitiveness[35] - Upstream raw material (ammonium nitrate) prices significantly decreased, with powdered ammonium nitrate falling by 12.91% year-on-year[37] - Downstream mining and infrastructure industries remained stable, with coal production increasing by 5.4% year-on-year and non-ferrous metal production increasing by 2.9% year-on-year[39] - In the first half of 2025, the civil explosive industry's total profit decreased by 4.07% year-on-year, industrial explosive production and sales slightly increased, and on-site mixed explosives accounted for 37.90%[39] - Industrial electronic detonator production decreased by 0.61% year-on-year, accounting for 94.17% of total industrial detonator production[39] - The company's main business scope includes integrated operations of civil explosive product R&D, production, sales, blasting, distribution, engineering technical services, design, and construction, as well as ecological industry operation and management services[40] - "Mine integration" is a crucial strategic direction for the company's development breakthrough, aiming to create comprehensive solutions integrating blasting, mining, transportation, and restoration[45] - The company's licensed capacity and scale for civil explosive materials are among the top in China, with leading automation, intelligence, continuous, and large-scale production of digital electronic detonators[47] - The integrated service scale is in the first tier of the domestic industry, possessing six first-grade blasting operation qualification enterprises and three first-grade mine general contracting qualification enterprises[47][49] - The company is firmly advancing towards a rich mining area strategy, continuously optimizing capacity and business layout in rich mining regions to drive the release of mixed explosive capacity through projects[50] - The company is deepening market coordination and regional synergy, building an efficient联动机制 (linkage mechanism), strengthening market control from a top-level design, and leveraging group synergy[50] - In the future, the company will comprehensively advance in four key areas: digital intelligence civil explosives, smart factories, intelligent equipment, and smart mines, driving key technological breakthroughs with scientific and technological innovation as the engine[51] - Sales in some regions declined due to reduced investment in key infrastructure and mining projects and the impact of low-priced competing products from outside the province[52] - Countermeasures include: deepening R&D of intelligent production lines for electronic detonators and industrial explosives; actively implementing the rich mining area strategic layout and increasing the application of on-site mixed explosives; promoting international business development; and scientifically and reasonably advancing cross-regional mergers and acquisitions[52] Analysis of Core Competencies The company's core strengths include regional and market advantages, full-industry chain integrated business development, Poly Group's resource integration, leading R&D and talent, and an experienced core management team - Regional and market advantages: The company's product capacity is sufficient, and product varieties and specifications are complete, especially digital electronic detonators, which are in a leading position nationwide in terms of technology, quality, capacity, and industrial supporting guarantees[53] - Business development advantages: The company has achieved full-industry chain integrated development of R&D, production, sales, distribution, and blasting services, being one of the earliest civil explosive enterprises in China to initiate the transformation practice of integrated mining and infrastructure businesses[55] - Resource advantages: As Poly Group's civil explosive business development platform, the company possesses strong resource integration advantages, leveraging Poly Group's good relationships with large energy SOEs and local state-owned enterprises to focus on large-scale infrastructure construction and strategic mineral resource blasting and stripping[56] - Technology R&D and talent advantages: The company has established a relatively complete civil explosive product, technology, production line equipment R&D, and raw and auxiliary material production support and guarantee system, owning an academician workstation and a postdoctoral workstation, demonstrating strong R&D capabilities[57] - In the first half of 2025, the company conducted research on common and core technical issues in the industry, improved the intelligence level of civil explosive product manufacturing and application, and obtained 33 new authorized patents and software copyrights[58] - Core management team advantages: The company has successfully forged three core teams—"leading cadres, technical backbone, and project backbone"—by closely focusing on the business development needs of "civil explosive integration" and "mine integration"[59] Analysis of Principal Business In H1 2025, the company's operating revenue increased by 24.03%, driven by a 38.66% rise in blasting engineering and a 6.91% increase in civil explosive sales, with significant growth in the Northwest region, despite a decline in gross margin - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[62] Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,182,442,296.72 | 2,565,802,029.25 | 24.03% | | | Operating Cost | 2,625,956,314.36 | 2,023,755,274.95 | 29.76% | | | Selling Expenses | 58,765,857.64 | 59,307,235.88 | -0.91% | | | Administrative Expenses | 289,533,810.92 | 312,170,516.41 | -7.25% | | | Financial Expenses | 139,257,183.46 | 143,796,274.29 | -3.16% | | | Income Tax Expense | 24,175,799.29 | 25,808,973.43 | -6.33% | | | R&D Investment | 77,903,065.52 | 68,789,886.87 | 13.25% | | | Net Cash Flow from Operating Activities | -97,847,443.17 | -288,505,264.80 | 66.08% | Increased sales of civil explosive products and blasting construction services, with corresponding increase in collections | | Net Cash Flow from Investing Activities | -78,789,750.43 | -114,588,969.91 | 31.24% | Project expansion and major production line construction largely completed in this period, leading to reduced capital investment | | Net Cash Flow from Financing Activities | 55,392,565.91 | 303,690,360.21 | -81.76% | Reduced financing amount in this period compared to the previous year | | Net Increase in Cash and Cash Equivalents | -121,392,029.09 | -98,962,995.46 | -22.66% | | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Civil Explosive Product Production and Sales | 869,890,123.42 | 27.33% | 813,680,482.33 | 31.71% | 6.91% | | | Blasting Engineering Construction | 2,214,072,718.95 | 69.58% | 1,596,783,144.12 | 62.23% | 38.66% | | | Other | 98,479,454.35 | 3.09% | 155,338,402.80 | 6.06% | -36.60% | | By Product | Explosives | 660,762,244.73 | 20.76% | 588,320,844.87 | 22.93% | 12.31% | | | Detonating Cords and Fuses | 209,127,878.69 | 6.57% | 225,359,637.46 | 8.78% | -7.20% | | | Blasting Engineering Construction | 2,214,072,718.95 | 69.58% | 1,596,783,144.12 | 62.23% | 38.66% | | | Other | 98,479,454.35 | 3.09% | 155,338,402.80 | 6.06% | -36.60% | | By Region | Southwest Region | 653,234,693.12 | 20.53% | 676,809,260.82 | 26.38% | -3.48% | | | Northwest Region | 1,346,227,209.88 | 42.30% | 781,307,373.27 | 30.45% | 72.30% | | | North China Region | 560,918,381.95 | 17.63% | 529,506,698.95 | 20.64% | 5.93% | | | East China Region | 297,935,329.92 | 9.36% | 297,665,000.08 | 11.60% | 0.09% | | | Central China Region | 147,758,274.60 | 4.64% | 151,624,665.34 | 5.91% | -2.55% | | | Northeast Region | 41,789,358.74 | 1.31% | 39,331,242.72 | 1.53% | 6.25% | | | South China Region | 114,245,697.63 | 3.59% | 36,255,497.45 | 1.41% | 215.11% | Industries, Products, or Regions Accounting for Over 10% of the Company's Operating Revenue or Operating Profit | Category | Item | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Civil Explosive Product Production | 869,890,123.42 | 657,394,934.46 | 24.43% | 6.91% | 9.55% | -1.82% | | | Blasting and Engineering Construction | 2,214,072,718.95 | 1,913,665,177.20 | 13.57% | 38.66% | 43.63% | -2.99% | | By Product | Explosives | 660,762,244.73 | 501,126,772.15 | 24.16% | 12.31% | 8.35% | 2.77% | | | Blasting Engineering Construction | 2,214,072,718.95 | 1,913,665,177.20 | 13.57% | 38.66% | 43.63% | -2.99% | | By Region | Southwest Region | 653,234,693.12 | 454,981,798.13 | 30.35% | -3.48% | -4.35% | 0.63% | | | Northwest Region | 1,346,227,209.88 | 1,171,718,524.18 | 12.96% | 72.30% | 86.50% | -6.63% | | | North China Region | 560,918,381.95 | 491,506,207.37 | 12.37% | 5.93% | 5.97% | -0.04% | Licensed Capacity of Various Civil Explosive Products | Product Category | Licensed Capacity | Capacity Utilization Rate | | :--- | :--- | :--- | | Industrial Explosives | 468,500 tons | 35.76% | | Electronic Detonators | 161.65 million units | 12.63% | - Safety management internal control system construction and operation during the reporting period: The company actively promoted the deep integration of "Party Building + Safety," launched a three-year action plan for fundamental safety production improvements, established and improved 2 safety management systems, enhanced all employees' safety awareness, and experienced no general or above production safety accidents in the first half of the year[68] Analysis of Non-Principal Business The company reported no non-principal business income during the reporting period - The company had no non-principal business during the reporting period[68] Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets slightly decreased, with a significant 4.59% increase in long-term borrowings, indicating a shift towards long-term debt in the financing structure Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,330,147,076.17 | 7.83% | 1,555,038,627.75 | 9.12% | -1.29% | | Accounts Receivable | 5,782,502,322.18 | 34.04% | 5,757,906,905.10 | 33.77% | 0.27% | | Contract Assets | 394,994,551.98 | 2.33% | 338,137,882.26 | 1.98% | 0.35% | | Inventories | 357,183,527.16 | 2.10% | 375,897,164.81 | 2.20% | -0.10% | | Investment Properties | 134,387,677.41 | 0.79% | 121,920,974.86 | 0.72% | 0.07% | | Long-Term Equity Investments | 68,406,293.11 | 0.40% | 68,725,997.57 | 0.40% | 0.00% | | Fixed Assets | 1,830,867,023.76 | 10.78% | 1,891,768,474.72 | 11.09% | -0.31% | | Construction in Progress | 221,591,088.52 | 1.30% | 173,400,002.00 | 1.02% | 0.28% | | Right-of-Use Assets | 50,896,888.72 | 0.30% | 49,359,153.75 | 0.29% | 0.01% | | Short-Term Borrowings | 2,451,380,322.31 | 14.43% | 2,472,042,567.24 | 14.50% | -0.07% | | Contract Liabilities | 104,357,456.84 | 0.61% | 98,661,421.98 | 0.58% | 0.03% | | Long-Term Borrowings | 2,758,954,776.58 | 16.24% | 1,986,908,049.78 | 11.65% | 4.59% | | Lease Liabilities | 38,314,254.66 | 0.23% | 33,873,785.29 | 0.20% | 0.03% | - The company has no major overseas assets or assets and liabilities measured at fair value[70] Asset Rights Restricted as of the End of the Reporting Period | Item | Book Balance (yuan) | Book Value (yuan) | Type of Restriction | Details of Restriction | | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 256,368,818.49 | 256,368,818.49 | Various deposits, freezes, etc. | Guarantee deposits, bank acceptance bill deposits, restrictions due to litigation, etc. | | Other Non-Current Assets (PPP Project Contract Assets) | 1,008,732,274.07 | 956,515,718.43 | Pledge | Pledge of accounts receivable collection rights for Zunyi Green Union PPP project | | Other Non-Current Assets (PPP Project Contract Assets) | 1,338,945,009.43 | 1,338,945,009.43 | Pledge | Pledge of accounts receivable collection rights for Shanxi Baojin PPP project | | Fixed Assets | 144,100,668.61 | 109,930,085.32 | Mortgage | Mortgage for borrowings | | Intangible Assets | 269,121,558.04 | 251,794,407.75 | Mortgage | Mortgage for borrowings | | Total | 3,017,268,328.64 | 2,913,554,039.42 | | | Analysis of Investment Status The company had no significant equity, securities, or derivative investments; the Shaoguan Hongweikeng mine project is progressing slower than planned, and key subsidiaries contribute significantly to civil explosive and blasting services - The company had no securities investments, derivative investments, or use of raised funds during the reporting period[75][76][77] Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Is it Fixed Asset Investment | Investment Industry | Amount Invested in Current Reporting Period (yuan) | Cumulative Investment Amount as of End of Reporting Period (yuan) | Funding Source | Project Progress | Estimated Return | Cumulative Realized Return as of End of Reporting Period (yuan) | Reasons for Not Meeting Planned Progress and Estimated Return | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Baojiu Shaoguan Poly Xinlian Hongweikeng Mine Integration Construction Project | Other | No | Non-metallic mineral mining | 1,193,000,000.00 | 1,526,250,000.00 | Bank loans/Self-raised | 46.08% | 473,032,099.84 | 0.00 | 1. Impacted by insufficient experience in processing and production; 2. Affected by procedures for land lease matters in Longqian and the district. | August 28, 2023 | Juchao Information Network | Major Subsidiaries and Associate Companies with Over 10% Impact on the Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guizhou Panjiang Civil Explosive Co., Ltd. | Subsidiary | Production and sales of civil explosive materials | 350,000,000.00 | 1,642,461,962.68 | 675,631,056.27 | 193,917,834.39 | 6,879,075.49 | 4,407,302.58 | | Guiyang Jiulian Chemical Co., Ltd. | Subsidiary | Production and sales of civil explosive materials | 90,000,000.00 | 416,695,275.11 | 212,342,888.40 | 178,149,034.02 | 4,207,222.82 | 3,452,482.90 | | Poly Orica Management Co., Ltd. | Subsidiary | Production and sales of civil explosive materials | 50,000,000.00 | 947,606,628.74 | 809,466,659.98 | 155,060,301.93 | -10,191,671.76 | -14,112,948.91 | | Henan Jiulian Shenwei Civil Explosive Materials Co., Ltd. | Subsidiary | Production and sales of civil explosive materials | 47,672,200.00 | 395,298,263.61 | 274,996,902.77 | 91,335,844.14 | 7,038,610.02 | 6,022,055.51 | | Gansu Jiulian Civil Explosive Materials Co., Ltd. | Subsidiary | Production and sales of civil explosive materials | 163,990,000.00 | 559,570,489.07 | 263,166,184.72 | 151,559,024.78 | 9,433,248.20 | 7,134,700.64 | | Poly Xinlian Blasting Engineering Group Co., Ltd. | Subsidiary | Mine integration, drill-and-blast integration, mixed explosive integration, drill-and-blast engineering, mixed blasting engineering, mine general contracting engineering | 1,038,274,018.00 | 9,795,756,930.18 | 81,352,804.81 | 1,118,400,805.20 | -53,690,930.35 | -53,526,197.79 | | Guizhou United Civil Explosive Materials Operation Co., Ltd. | Subsidiary | Wholesale and retail: civil explosive materials (licensed operation), chemical products and raw materials (excluding hazardous chemicals and specially managed items), consulting for Class II and III electromechanical products; software development; information system integration services; information technology consulting services; data processing and storage | 60,000,000.00 | 966,042,242.53 | -226,800,901.46 | 316,668,446.23 | -26,172,043.57 | -25,691,033.76 | | Poly Ecological Technology Co., Ltd. | Subsidiary | Water pollution control; environmental protection monitoring; ecological resource monitoring; environmental consulting services; solid waste treatment; air pollution control; soil pollution treatment and restoration services. | 200,000,000.00 | 1,641,848,707.77 | 562,418,898.50 | 940,390,705.45 | 61,144,567.57 | 47,809,452.87 | | Hebei Satellite Chemical Co., Ltd. | Subsidiary | Production and sales of civil explosive materials | 200,000,000.00 | 288,649,538.28 | -178,701,411.42 | 75,993,589.63 | -15,381,664.15 | -15,834,396.59 | - Acquisition and disposal of subsidiaries during the reporting period: Baolian Ecological (Qixia) Co., Ltd. was deregistered, and Xinjiang Jiulian Civil Explosive Materials Co., Ltd. was newly established, both without significant impact[83] Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets or equity during the reporting period[78][79] Analysis of Major Holding and Participating Companies (This chapter's content is covered in "Analysis of Investment Status" and will not be summarized again, serving as a structural placeholder) Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[83] Risks Faced by the Company and Countermeasures The company faces safety, market competition, raw material price, and high accounts receivable risks, addressed by strengthening safety, optimizing strategy, expanding international business, and enhancing collection efforts - Safety risks: The civil explosive industry has inherent high risks, which the company addresses by thoroughly studying safety production theories, implementing primary responsibilities, strengthening education and training, controlling key areas, and managing emergencies[83][84] - Market competition risks: Affected by capacity adjustments, unbalanced regional economic development, and homogeneous competition, the company responds with "two integrations" strategies, central-local cooperation, expanding domestic and international business, developing international operations, mergers and acquisitions, refined management, and technological innovation[85][86] - Raw material price increase risks: Fluctuations in prices of major raw materials for explosives have a potential impact on profitability, which the company addresses by broadening procurement channels, optimizing centralized procurement, reducing expenses, improving production processes, increasing technological innovation, and optimizing inventory management[87] - High accounts receivable risks: The company has high accounts receivable, which it addresses by clarifying collection responsibilities, reducing existing balances, controlling new increments, accelerating settlements, and strengthening credit management[88] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company approved its Market Value Management System on August 26, 2025, but has not disclosed a valuation enhancement plan - The company has formulated a market value management system, approved on August 26, 2025[89] - The company has not disclosed a valuation enhancement plan[89] Implementation of "Quality and Return Dual Enhancement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[90] Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, profit distribution plans, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, Zhang Xinmin and Cui Xiaogang were elected as director/general manager and chairman of the supervisory board, respectively, due to work transfers, while Wang Lichun retired - Director and General Manager Zhang Xinmin and Chairman of the Supervisory Board Cui Xiaogang were elected due to work transfers[91] - Board Secretary Wang Lichun resigned due to retirement[91] Profit Distribution and Capital Reserve Conversion to Share Capital for the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the half-year period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period[92] 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 during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[93] Environmental Information Disclosure Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law - Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[94] Social Responsibility The company actively fulfills its social responsibilities through rural revitalization, ecological protection, and grassroots party building, including cadre assignments, ecological restoration, and educational donations - The company selected business backbones and young cadres to assist in Ceheng County, optimizing the assistance team[95] - A cumulative area of 2.34 million square meters of ecological restoration and governance has been completed, with nearly 170,000 green plants planted[96] - In the first half of the year, the company donated 100,000 yuan across all levels to basic education and rural construction in impoverished areas[97] Significant Matters This section details significant events and commitments, including related party transactions, major contracts, litigation, and compliance, providing a comprehensive overview of critical corporate developments Commitments No commitments by the actual controller, shareholders, related parties, acquirers, or the company were unfulfilled or overdue during the reporting period - The company reported no unfulfilled or overdue commitments by the actual controller, shareholders, related parties, acquirers, or the company during the reporting period[99] Non-Operating Fund Occupation No non-operating funds were occupied by controlling shareholders or other related parties during the reporting period - The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[100] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[101] 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[102] Explanation of Non-Standard Audit Report The company did not have a non-standard audit report during the reporting period - The company did not have a non-standard audit report during the reporting period[103] Explanation of Last Year's Non-Standard Audit Report The company did not have a non-standard audit report for the previous year - The company did not have a non-standard audit report for the previous year[103] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[103] Litigation Matters No significant litigation or arbitration matters occurred; however, 249 pending cases totaling 3.396 billion yuan are primarily for accounts receivable recovery - The company had no significant litigation or arbitration matters during the reporting period[104] - As of June 30, 2025, the company and its controlled subsidiaries had 249 pending litigation and arbitration cases, with a total involved amount of 3.396 billion yuan[105] - The litigation primarily aims to accelerate accounts receivable collection and control accounts receivable risk[105] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[106] Integrity Status The company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or overdue large debts - The company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or overdue large debts during the reporting period[107] Significant Related Party Transactions The company engaged in routine related party transactions for goods, services, leasing, and financial company deposits/loans, with total actual transactions within approved limits Related Party Transactions Related to Ordinary Operations | Type of Related Party Transaction | Related Party | Related Relationship | Pricing Principle | Transaction Amount (10,000 yuan) | Proportion of Similar Transactions | Approved Limit (10,000 yuan) | Exceeded Approved Limit | Settlement Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of Goods | Poly Jiulian and its subsidiaries | Enterprises controlled by the same actual controller, Poly Group, and controlling shareholder, Poly Jiulian | Market pricing | 10,600.00 | 2.27% | 10,600.00 | No | Bank acceptance bill or acceptance | | Purchases of Goods | Poly Jiulian and its subsidiaries | Enterprises controlled by the same actual controller, Poly Group, and controlling shareholder, Poly Jiulian | Market pricing | 13,968.07 | 10.69% | 60,000.00 | No | Bank acceptance bill or acceptance | | Provision of Services, Acceptance of Services | Poly Jiulian and its subsidiaries | Enterprises controlled by the same actual controller, Poly Group, and controlling shareholder, Poly Jiulian | Market pricing | 13,706.27 | 16.96% | 31,000.00 | No | Bank acceptance bill or acceptance | | Provision of Leases, Acceptance of Leases | Poly Jiulian and its subsidiaries | Enterprises controlled by the same actual controller, Poly Group, and controlling shareholder, Poly Jiulian | Market pricing | 320.81 | 32.05% | 1,400.00 | No | Bank acceptance bill or acceptance | - In the first half of 2025, the total actual amount of the company's routine related party transactions with the aforementioned related parties did not exceed the estimated total amount[109] - The company did not engage in related party transactions involving asset or equity acquisitions or disposals, nor joint external investments during the reporting period[111][112] - The company had no non-operating related party creditor-debtor transactions during the reporting period[113] Dealings with Related Financial Companies (Poly Finance Co., Ltd.) | Business Type | Related Relationship | Maximum Daily Deposit Limit (10,000 yuan) | Deposit Interest Rate Range | Beginning Balance (10,000 yuan) | Total Deposits in Current Period (10,000 yuan) | Total Withdrawals in Current Period (10,000 yuan) | Ending Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deposit Business | Related party of actual controller Poly Group | 80,000 | 0.25%-1.85% | 52,024.53 | 855,609.83 | 859,771.12 | 47,863.24 | | Loan Business | Related party of actual controller Poly Group | 100,000 | 3%-3.75% | 700 | 0 | 0 | 700 | - The company's controlled financial company had no deposits, loans, credit lines, or other financial business with related parties[115] - The company had no other significant related party transactions during the reporting period[116] Significant Contracts and Their Performance The company reported no custody or contracting matters; a 20-year land lease exists for Shaoguan Company; total actual guarantees for subsidiaries amounted to 4.25 billion yuan, representing 222.22% of net assets - The company had no custody or contracting situations during the reporting period[117][118] - Lease situation: Baojiu (Shaoguan) New Materials Co., Ltd. signed a land lease contract with Shaoguan Wujiang District State-owned Investment Group Co., Ltd. for a lease term of 20 years (September 1, 2024, to August 31, 2044), with an annual rent of 5,200 yuan per mu for the first three years, increasing by 4% every three years thereafter[119] - The company had no lease projects that generated profit or loss exceeding 10% of the company's total profit during the reporting period[119] - Company guarantees for subsidiaries: During the reporting period, the approved guarantee limit for subsidiaries totaled 4.33073 billion yuan, with actual guarantees amounting to 1.286425 billion yuan. As of the end of the reporting period, the approved guarantee limit for subsidiaries totaled 4.33073 billion yuan, with actual guarantee balances totaling 3.0199192 billion yuan[121][122][123][124][125][126][127] - Subsidiary guarantees for subsidiaries: During the reporting period, the approved guarantee limit for subsidiaries totaled 83 million yuan, with actual guarantees amounting to 0 yuan. As of the end of the reporting period, the approved guarantee limit for subsidiaries totaled 1.473 billion yuan, with actual guarantee balances totaling 1.23182 billion yuan[127] - The total approved guarantee limit for the company (sum of the top three items) at the end of the period was 5.80373 billion yuan, with a total actual guarantee balance of 4.2517392 billion yuan[127] - The proportion of total actual guarantees to the company's net assets was 222.22%[128] - The balance of debt guarantees provided directly or indirectly to guaranteed entities with a debt-to-asset ratio exceeding 70% was 3.5617112 billion yuan[128] - The company had no entrusted wealth management or other significant contracts during the reporting period[128][129] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[130] Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[131] Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and the shareholdings of directors, supervisors, and senior management Share Change Status During the reporting period, the company's total shares and share capital structure remained unchanged, with 483,883,566 unrestricted shares, accounting for 100% Share Change Status | Item | Number Before This Change (shares) | Proportion | Increase/Decrease in This Change (＋,－) | Number After This Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0.00% | 0 | 0 | 0.00% | | II. Unrestricted Shares | 483,883,566 | 100.00% | 0 | 483,883,566 | 100.00% | | 1. RMB Ordinary Shares | 483,883,566 | 100.00% | 0 | 483,883,566 | 100.00% | | III. Total Shares | 483,883,566 | 100.00% | 0 | 483,883,566 | 100.00% | - Reasons for share changes, approval status, transfer status, progress of share repurchase implementation, and impact on financial indicators are all not applicable for the reporting period[134] - Changes in restricted shares are not applicable[134] Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[134] Number of Shareholders and Shareholding At the end of the reporting period, the total number of ordinary shareholders was 28,339; among the top ten shareholders, Poly Jiulian Holding Group held 29.65% and Guizhou Baojiu Security Group held 14.84%, both acting in concert - The total number of ordinary shareholders at the end of the reporting period was 28,339[135] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Change in Shares During Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Poly Jiulian Holding Group Co., Ltd. | State-owned Legal Person | 29.65% | 143,478,060 | 0 | 143,478,060 | Not applicable | 0 | | Guizhou Baojiu Security Group Co., Ltd. | State-owned Legal Person | 14.84% | 71,829,494 | 0 | 71,829,494 | Not applicable | 0 | | Guizhou Wujiang Energy Investment Co., Ltd. | State-owned Legal Person | 2.99% | 14,477,548 | 0 | 14,477,548 | Not applicable | 0 | | Wengfu (Group) Co., Ltd. | State-owned Legal Person | 1.06% | 5,142,823 | 0 | 5,142,823 | Not applicable | 0 | | Liu Zhiwen | Domestic Natural Person | 0.59% | 2,858,800 | 2,858,800 | 2,858,800 | Not applicable | 0 | | Shandong Yinguang Chemical Group Co., Ltd. | Domestic Non-State-owned Legal Person | 0.51% | 2,457,522 | 0 | 2,457,522 | Frozen | 2,457,522 | | Huan Yaqi | Domestic Natural Person | 0.46% | 2,230,000 | -3,070,000 | 2,230,000 | Not applicable | 0 | | Sun Jinlian | Domestic Natural Person | 0.44% | 2,115,200 | 2,115,200 | 2,115,200 | Not applicable | 0 | | Guizhou Wufeng Zhixin Industrial Co., Ltd. | State-owned Legal Person | 0.42% | 2,029,096 | 0 | 2,029,096 | Not applicable | 0 | | Chen Bin | Domestic Natural Person | 0.35% | 1,708,881 | 30,000 | 1,708,881 | Not applicable | 0 | - Poly Jiulian Holding Group Co., Ltd. and Guizhou Baojiu Security Group Co., Ltd. have an associated relationship and are concerted parties[136] - The company's top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders did not engage in any agreed repurchase transactions during the reporting period[137] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[138] 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[139] - The company's actual controller remained unchanged during the reporting period[139] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[140] Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[142] Financial Report This section presents the company's comprehensive financial statements, including balance sheets, income statements, cash flow statements, and notes, providing a detailed view of its financial health and performance Audit Report The company's half-year financial report was not audited - The company's half-year financial report was not audited[144] Financial Statements The company disclosed consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity, reflecting its financial position and operating results for H1 2025 Consolidated Balance Sheet (Period-End Balance) | Item | Amount (yuan) | | :--- | :--- | | Cash and Bank Balances | 1,330,147,076.17 | | Accounts Receivable | 5,782,502,322.18 | | Inventories | 357,183,527.16 | | Total Assets | 16,985,011,980.44 | | Short-Term Borrowings | 2,451,380,322.31 | | Long-Term Borrowings | 2,758,954,776.58 | | Total Liabilities | 14,164,991,020.90 | | Total Owner's Equity Attributable to Parent Company | 1,913,302,468.46 | | Total Owner's Equity | 2,820,020,959.54 | Consolidated Income Statement (Current Period Amount) | Item | Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 3,182,442,296.72 | | Total Operating Costs | 3,216,275,019.88 | | Operating Profit | -59,136,900.41 | | Total Profit | -56,962,163.92 | | Net Profit | -81,137,963.21 | | Net Profit Attributable to Parent Company Shareholders | -59,979,687.41 | | Basic Earnings Per Share (yuan/share) | -0.1240 | Consolidated Cash Flow Statement (Current Period Amount) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -97,847,443.17 | | Net Cash Flow from Investing Activities | -78,789,750.43 | | Net Cash Flow from Financing Activities | 55,392,565.91 | | Net Increase in Cash and Cash Equivalents | -121,392,029.09 | Company's Basic Information Poly Union Chemical Holdings Group Co., Ltd., established on July 18, 2002, listed on September 8, 2004, with a registered capital of 483.88 million yuan, primarily engages in civil explosive R&D, production, sales, and blasting services - The company was registered on July 18, 2002, and listed on the Shenzhen Stock Exchange on September 8, 2004[181] - Registered capital is 483,883,566.00 yuan, with a total of 483,883,566.00 shares[181] - Principal business includes R&D, production, sales, blasting, distribution, engineering technical services, design, and construction of civil explosive materials[181] Basis for Preparation of Financial Statements The financial statements are prepared on a going concern basis, with no significant doubts about the company's ability to continue as a going concern within 12 months from the reporting period end - The financial statements are prepared on a going concern basis[182] - There are no matters or circumstances that raise significant doubts about the company's ability to continue as a going concern within 12 months from the end of the reporting period[183] Significant Accounting Policies and Estimates The company adheres to enterprise accounting standards, detailing policies for financial instrument impairment, inventory, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition - The company adheres to enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[185] - The accounting year runs from January 1 to December 31 of the Gregorian calendar, with a short operating cycle, using 12 months as the liquidity classification standard, and RMB as the functional currency[186][187][188] - Materiality criteria: Accounts receivable/other receivables/contract assets for which bad debt provisions are individually recognized exceed 5 million yuan, significant construction in progress projects have budgets exceeding 10 million yuan, and significant subsidiaries' assets/revenue/total profit exceed 15% of the group's total assets/total revenue/total profit[189] - Financial assets are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[196] - Notes receivable, accounts receivable, accounts receivable financing, and contract assets adopt a simplified model for expected credit losses, consistently measuring loss provisions at the amount of expected credit losses over the entire lifetime[213][218][222][228] Fixed Asset Depreciation Methods | Category | Depreciation Method | Depreciation Period | Salvage Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line method | 20-40 years | 0.00% | 2.5%-5% | | Machinery and Equipment | Straight-line method | 5-15 years | 0.00% | 6.67%-20% | | Transportation Vehicles | Straight-line method | 8 years | 0.00% | 12.50% | | Electronic Equipment and Others | Straight-line method | 3-5 years | 0.00% | 20%-33.33% | Intangible Asset Amortization Methods | Item | Useful Life and Basis for Determination | Amortization Method | | :--- | :--- | :--- | | Land Use Rights | Useful life determined as 50 years based on property registration period | Straight-line method | | Software Use Rights | Useful life determined as 3 years based on expected benefit period | Straight-line method | | Patent Rights | Useful life determined as 10 years based on certificate period | Straight-line method | | Non-Patent Technologies | Useful life determined as 10 years based on certificate period | Straight-line method | | Trademark Rights | Useful life determined as 10 years based on certificate period | Straight-line method | | Mining Rights | Amortized based on the extractable quantity approved in the mining right certificate | Production method | | Other | Useful life determined as 3 years based on expected benefit period | Straight-line method | - Revenue recognition principle: Identify distinct performance obligations, determine whether they are satisfied over time or at a point in time, and recognize revenue based on the progress of satisfaction or when the customer obtains control[282][283] - Specific revenue recognition conditions and timing apply to civil explosive material sales, blasting services, engineering construction, and transportation services[285] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, property tax, education surcharges, and local education surcharges, with some subsidiaries benefiting from high-tech enterprise and Western Development tax incentives Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Based on sales of goods and taxable services calculated according to tax laws, after deducting deductible input VAT, the difference is the VAT payable | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5%, 1% | | Corporate Income Tax | Taxable income | 25%, 20%, 15% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original property value; for rent-based assessment, 12% of rental income | 12%, 1.2% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - 11 subsidiaries enjoy a 15% corporate income tax rate as high-tech enterprises[301] - 6 subsidiaries enjoy the Western Development corporate income tax policy, with a reduced tax rate of 15%[301] - Tibet Poly Jiulian Civil Explosive Materials Development Co., Ltd. applies a 15% tax rate and enjoys a 50% reduction in the local share of taxable income[301] - 32 subsidiaries apply the inclusive tax relief policy for small and micro enterprises, including VAT exemption and corporate income tax benefits[302][303] Notes to Consolidated Financial Statement Items This section details consolidated financial statement items, including cash, accounts receivable, inventory, fixed assets, intangible assets, goodwill, borrowings, payables, and owner's equity, with explanations of balances and changes - Cash and bank balances: Period-end balance of 1.33 billion yuan, of which 256 million yuan is restricted, mainly for various deposits and frozen funds[305] - Accounts receivable: Period-end balance of 7.698 billion yuan, with bad debt provisions of 1.915 billion yuan. The top five debtors collectively owe 2.38 billion yuan, accounting for 29.68% of the total accounts receivable and contract assets at period-end[323][335] - Inventories: Period-end book value of 357 million yuan, with inventory impairment provisions of 50.2574 million yuan[401][406] - Fixed assets: Period-end book value of 1.83 billion yuan, accumulated depreciation of 2.06 billion yuan, and impairment provisions of 571 million yuan[450] - Intangible assets: Period-end book value of 1.666 billion yuan, accumulated amortization of 336 million yuan, and impairment provisions of 36.9217 million yuan[469][470] - Goodwill: Original book value of 238 million yuan, with impairment provisions of 3.5305 million yuan[474][476] - Short-term borrowings: Period-end balance of 2.451 billion yuan, primarily guarantee-backed and credit borrowings[495] - Long-term borrowings: Period-end balance of 2.759 billion yuan, primarily guarantee-backed and credit borrowings, with 375 million yuan in pledged borrowings[533] - Owner's equity: Share capital of 484 million yuan, capital reserves of 1.323 billion yuan, and undistributed profits of -153 million yuan[555][558][565] - Operating revenue and operating costs: Current period operating revenue of 3.182 billion yuan, operating costs of 2.626 billion yuan. Main business revenue was 3.085 billion yuan, with costs of 2.556 billion yuan[568] - Financial expenses: Current period interest expense of 172 million yuan, interest income of 44.568 million yuan, net financial expenses of 139 million yuan[577] - Credit impairment losses: Current period amount of -35.6697 million yuan, primarily bad debt losses on accounts receivable[584] Research and Development Expenses Total R&D expenditure for the period was 77.90 million yuan, primarily for direct materials and labor, all expensed R&D Expenditure Composition | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Personnel Expenses | 22,517,708.02 | 22,847,100.65 | | Depreciation and Amortization | 1,450,920.49 | 645,940.79 | | Direct Materials | 47,047,873.29 | 38,055,125.92 | | Other Expenses | 6,886,563.72 | 7,241,719.51 | | Total | 77,903,065.52 | 68,789,886.87 | - All R&D expenditures were expensed, with no capitalized projects[622] Changes in Consolidation Scope During the reporting period, the company deregistered Baolian Ecological (Qixia) Co., Ltd. and established Xinjiang Jiulian Civil Explosive Materials Co., Ltd., resulting in changes to the consolidation scope - Baolian Ecological (Qixia) Co., Ltd. was deregistered, resulting in loss of control[133] - Xinjiang Jiulian Civil Explosive Materials Co., Ltd. was newly established as a first-tier subsidiary[133][634] - There were no business combinations under common control or business combinations not under common control during the reporting period[625][629] Interests in Other Entities The company disclosed the composition, shareholding, and key financial information of its major subsidiaries and important associat