天龙集团(300063) - 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 used throughout the report Important Notice The Board of Directors, directors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the report content, assuming legal responsibility[4] - The company's head, chief accountant, and head of accounting department declare the financial report is true, accurate, and complete[4] - The company faces significant risks including customer changes, media cooperation, and accounts receivable[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the report's eight main chapters and their page numbers, covering important notices, company profile, management discussion and analysis, corporate governance, significant events, share changes and shareholder information, bond-related matters, and financial reports Definitions This section provides definitions for common terms used in the report, including company names, major subsidiary names and their business nature, and key technological concepts like AIGC and Tianlong AIGC Engine - “Tianlong Group” refers to Guangdong Tianlong Technology Group Co., Ltd[11] - Several wholly-owned or controlling subsidiaries are listed, covering businesses such as ink chemicals, forest chemicals, and internet marketing[11] - “AIGC” refers to Artificial Intelligence Generated Content, a technology that uses AI to generate content[11] - “Tianlong AIGC Engine” is the company's platform built with AIGC tools to empower intelligent creative material and communication content generation[11] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the current reporting period I. Company Profile This section introduces the company's basic information, including its stock abbreviation, stock code, listing exchange, Chinese name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Tianlong Group | | Stock Code | 300063 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Guangdong Tianlong Technology Group Co., Ltd | | Legal Representative | Feng Yi | II. Contact Persons and Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wang Jing | Jindu Industrial Park, Zhaoqing City, Guangdong Province | 0758-8507810 | 0758-8507823 | tljt@gdtljt.cn | | Securities Affairs Representative | Guo Jing | Jindu Industrial Park, Zhaoqing City, Guangdong Province | 0758-8507810 | 0758-8507823 | tljt@gdtljt.cn | III. Other Information This section states that the company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[14] - Information disclosure and placement locations remained unchanged during the reporting period[15] - The company's registration status remained unchanged during the reporting period[16][17] IV. Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators for the current reporting period compared to the prior year, showing a decrease in operating revenue but significant growth in net profit attributable to shareholders and EPS Key Accounting Data and Financial Indicators (Current Period vs. Prior Year Period) | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,483,157,131.18 | 3,913,357,789.98 | -10.99% | | Net Profit Attributable to Shareholders of Listed Company | 70,304,840.80 | 31,875,402.06 | 120.56% | | Net Profit Attributable to Shareholders of Listed Company, Excluding Non-Recurring Gains and Losses | 42,031,613.06 | 28,933,487.79 | 45.27% | | Net Cash Flow from Operating Activities | -64,275,532.36 | -66,259,160.54 | 2.99% | | Basic Earnings Per Share (CNY/share) | 0.0927 | 0.0421 | 120.19% | | Diluted Earnings Per Share (CNY/share) | 0.0927 | 0.0420 | 120.71% | | Weighted Average Return on Net Assets | 4.23% | 2.01% | 2.22% | | Period-end Indicators | End of Current Period (CNY) | End of Prior Year (CNY) | Change (%) | | Total Assets | 3,449,180,141.04 | 3,272,632,711.18 | 5.39% | | Net Assets Attributable to Shareholders of Listed Company | 1,698,450,079.71 | 1,627,381,979.96 | 4.37% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section states that there are no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards during the reporting period - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[19] - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[20] VI. Non-Recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling CNY 28.27 million, primarily from disposal of non-current assets and government grants Non-Recurring Gains and Losses Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains or losses from disposal of non-current assets (including the reversal of impairment provisions already made) | 26,139,496.68 | | Government grants recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 1,837,138.21 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to the company's normal operations | -93,725.82 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 547,613.20 | | Gains or losses from debt restructuring | 5,715.90 | | Other non-operating income and expenses apart from the above | 362,477.40 | | Less: Income tax impact | 521,722.89 | | Impact on minority interests (after tax) | 3,764.94 | | Total | 28,273,227.74 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses[23] - The company does not classify non-recurring gains and losses items listed in 'Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public – Non-Recurring Gains and Losses' as recurring gains and losses[23] Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's business operations, financial performance, core competencies, and risk factors during the reporting period I. Principal Businesses Engaged in During the Reporting Period The company's main businesses include internet marketing, forest chemicals, and ink chemicals, with no significant changes in business structure during the reporting period (I) Principal Businesses Engaged in During the Reporting Period The company is a modern enterprise group specializing in internet marketing services and fine chemical product manufacturing, with no significant changes in its main businesses during the reporting period - The company's principal businesses include internet marketing, forest chemicals, and ink chemicals[26] - The internet marketing segment provides performance marketing and brand marketing services, building a “technology + data + content” marketing system[26] - The forest chemical segment focuses on bio-based chemical material manufacturing, primarily deep processing rosin and turpentine, with products applied in ABS plastics, automotive tires, pharmaceutical intermediates, cleaning agents, disinfectants, and flavors and fragrances[27] - The ink chemical segment primarily engages in the development and sales of environmentally friendly inks and related products, serving packaging and printing enterprises with products including water-based inks and food packaging water-based inks[27] - During the reporting period, there were no significant changes in the company's principal businesses[27] (II) Industry Development Status The internet marketing industry is shifting towards performance-based and brand-effect synergy, while the ink chemical sector sees growth in eco-friendly products and overseas expansion, and the forest chemical industry emphasizes deep processing and green manufacturing - Internet marketing industry trends: clients prefer performance-based payments, budgets are shifting towards brand and performance synergy, and AIGC technology reduces content production costs[28] - Ink chemical industry trends: environmental policies drive demand for low-VOCs inks, food contact material standards raise market entry barriers, and Chinese ink enterprises actively expand into overseas markets[29][30] - Forest chemical industry trends: rosin/turpentine deep processing is encouraged by policies, the industry is moving towards technological innovation, green manufacturing, and high-value-added products, with raw material control, R&D innovation, and market expansion capabilities as key competitive focuses[30] (III) Overview of Operations During the Reporting Period In H1 2025, the company achieved CNY 3.48 billion in operating revenue and CNY 70.30 million in net profit attributable to shareholders, a 120.56% increase, driven by enhanced internet marketing, record-high ink chemical performance, and growth in forest chemicals 2025 Half-Year Operating Performance | Indicator | Amount (CNY 100 million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 34.83 | -10.99 | | Net Profit Attributable to Shareholders of Listed Company | 0.703048 | 120.56 | | Net Profit Attributable to Shareholders of Listed Company, Excluding Non-Recurring Gains and Losses | 0.420316 | 45.27 | - The internet marketing segment achieved intelligent content production, precise投放 strategies, and digital operation management through the “Pinxue·Jianyou” AIGC tool matrix[31] - The internet marketing segment's quick application client business scale grew by 487% year-on-year, and overseas business revenue increased by 33% year-on-year[31] - The ink chemical segment's business revenue grew by 20% year-on-year, and profit increased by 38% year-on-year, reaching a new high for the same period since listing[32] - The ink chemical segment's export sales revenue grew by 115% year-on-year, and food packaging ink sales doubled[32] - The forest chemical segment's turpentine deep processing product sales revenue grew by 17% year-on-year, and net profit increased by 61% year-on-year[33] - The company's transfer of 100% equity in its subsidiary Shanghai Yalian had a positive impact on current period profit and loss[33] Overall Internet Marketing Revenue | Indicator | Current Period Amount (CNY) | Proportion of Operating Revenue | Prior Year Period Amount (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Internet Marketing Revenue | 2,804,643,187.30 | 80.52% | 3,310,215,743.79 | 84.59% | -15.27% | Main Industry Sectors of Internet Marketing Advertisers | Industry Sector | Current Period Revenue (CNY) | Proportion of Operating Revenue | Prior Year Period Revenue (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Network Services | 1,051,678,508.73 | 30.19% | 1,125,455,151.56 | 28.76% | -6.56% | | Gaming | 534,032,022.07 | 15.33% | 697,078,166.26 | 17.81% | -23.39% | Internet Marketing Client Type Overview | Client Type | Current Period Client Count | Current Period Revenue (CNY) | Current Period Client Retention Rate | Prior Year Period Client Count | Prior Year Period Revenue (CNY) | Prior Year Period Client Retention Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Direct Clients | 1,271 | 2,783,775,688.09 | 33.94% | 1,868 | 3,021,982,481.16 | 11.62% | | Agency Clients | 181 | 20,867,499.21 | 62.94% | 249 | 288,233,262.63 | 25.97% | Internet Marketing Cost Structure | Item | Current Period Cost (Excl. Tax) (CNY) | Proportion of Operating Cost | Prior Year Period Cost (Excl. Tax) (CNY) | Proportion of Operating Cost | | :--- | :--- | :--- | :--- | :--- | | Media Cost | 2,576,281,332.01 | 79.13% | 3,095,406,167.65 | 84.04% | | Other | 118,655,916.00 | 3.64% | 75,765,472.90 | 2.06% | | Total | 2,694,937,248.01 | 82.77% | 3,171,171,640.55 | 86.10% | II. Analysis of Core Competencies The company's core competencies span internet marketing with extensive media resources and AIGC tools, ink chemicals with strong product and innovation capabilities, and forest chemicals with full-产业链 advantages and R&D expertise 1. Competitive Advantages in Internet Marketing The company's internet marketing competitive advantages include a comprehensive media resource matrix, intelligent content production and precise targeting via the Tianlong AIGC Engine, and full-scenario services - The company possesses a comprehensive media resource matrix covering mainstream information flow media, search engine media, and smart terminal manufacturer media, maintaining strategic partnerships with top traffic media platforms like ByteDance Engine, Tencent, Baidu, Huawei, Xiaomi, vivo, and 360[40] - The Tianlong AIGC Engine deeply applies generative AI technology to achieve automated content production and intelligent placement optimization, significantly reducing operating costs and improving conversion efficiency[40] - Pinzhong Innovation's “Pinxue·Jianyou” AIGC tool matrix integrates mainstream domestic and international AI large models to automate the generation of marketing materials such as copy, images, and videos[41] - The company's internet marketing segment holds 316 valid software copyrights[42] - The company provides full-scenario services including brand creative services, performance ad optimization, integrated brand marketing, and short video live streaming operations, and has received multiple industry awards[42] 2. Competitive Advantages in Ink Chemical Segment The ink chemical segment's competitive advantages stem from strong product quality (BRCGS PM certification), innovation (60 patents), comprehensive service (three production bases), and a leading brand position in China's liquid ink market - The company possesses globally advanced fully automated production equipment from Bühler and Amcor, achieving efficient production through a refined digital production management system[43] - Subsidiary Guangdong Tianlong obtained the BRCGS Global Standard for Packaging Materials certification, becoming the first water-based ink producer for food contact packaging materials in China to receive this certification[43] - The company holds 60 authorized patents in the ink chemical field, including 17 invention patents[43] - The company operates three ink production bases in Zhaoqing (Guangdong), Chengdu (Sichuan), and Hangzhou (Zhejiang), establishing a nationwide sales and service network and implementing a “zero distance, zero loss, zero inventory” on-site ink blending sales service model[44] - The company is a leader in China's liquid ink industry, having received titles such as “Outstanding Enterprise in China's Ink Industry”, with “Tianlong Brand” water-based inks and environmentally friendly solvent inks consistently ranking among the top in national production and sales revenue for many years[44] 3. Competitive Advantages in Forest Chemical Segment The forest chemical segment boasts full-产业链 scale advantages, advanced deep processing technology with 15 patents, stable raw material supply from resource-rich regions, and an experienced management team - The company has built a complete industrial chain system in rosin and turpentine deep processing, forming a full-chain synergistic development pattern from basic processing to deep conversion and high-barrier products, with dihydromyrcene products having significant market entry barriers[44] - The company possesses mature production process systems for deep-processed forest chemical products such as disproportionated rosin, pinene, camphene, myrcene, and dihydromyrcene, and has achieved breakthroughs in R&D and process innovation for products like dihydromyrcenol[45] - The company holds 15 valid authorized patents in the forest chemical field, including 7 invention patents[45] - The company has established subsidiaries in pine forest-rich regions like Yunnan and Guangxi, forming long-term stable raw material supply channels[46] - The company's forest chemical team possesses rich production management experience, keen market insight, and efficient strategic execution capabilities, and has established long-term, trusting cooperative relationships with overseas clients[46] III. Analysis of Principal Businesses This section analyzes the company's principal business financial performance, noting a 10.99% decrease in operating revenue, but significant increases in net cash flow from investing and financing activities, while internet marketing revenue declined, and forest and ink chemical sectors saw revenue and gross margin growth Key Financial Data Year-on-Year Changes | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,483,157,131.18 | 3,913,357,789.98 | -10.99% | | | Operating Cost | 3,255,945,938.47 | 3,683,110,836.34 | -11.60% | | | Selling Expenses | 67,910,451.97 | 90,621,508.73 | -25.06% | | | Administrative Expenses | 65,728,328.15 | 62,926,022.87 | 4.45% | | | Financial Expenses | 13,156,132.44 | 11,900,012.13 | 10.56% | | | Income Tax Expense | 16,571,269.69 | 14,098,768.73 | 17.54% | | | R&D Investment | 8,534,087.09 | 8,482,597.79 | 0.61% | | | Net Cash Flow from Operating Activities | -64,275,532.36 | -66,259,160.54 | 2.99% | | | Net Cash Flow from Investing Activities | -16,976,539.41 | -49,534,536.04 | 65.73% | Primarily due to increased cash received from disposal of subsidiaries and decreased cash paid for investments in associate companies during this period | | Net Cash Flow from Financing Activities | 48,854,628.16 | 34,657,053.09 | 40.97% | Primarily due to increased cash received from borrowings by the company and its subsidiaries, and decreased cash paid for debt repayment and other financing activities during this period | | Net Increase in Cash and Cash Equivalents | -31,816,745.93 | -79,357,127.35 | 59.91% | | Products or Services Accounting for Over 10% | By Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Internet Marketing Industry | 2,804,643,187.30 | 2,694,937,248.01 | 3.91% | -15.27% | -15.02% | -0.29% | | Forest Chemical Industry | 364,577,866.36 | 321,215,641.94 | 11.89% | 5.38% | 3.19% | 1.87% | | Ink Chemical Industry | 306,346,643.19 | 234,258,067.09 | 23.53% | 20.81% | 17.95% | 1.86% | IV. Analysis of Non-Principal Businesses This section analyzes the impact of non-principal businesses on total profit, with investment income accounting for 28.27% due to subsidiary disposal, while asset impairment, credit impairment losses, and non-operating income/expenses had minor and unsustainable impacts Non-Principal Businesses Impact on Total Profit | Item | Amount (CNY) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 26,396,349.57 | 28.27% | Primarily due to gains from the disposal of a wholly-owned subsidiary by the company | No | | Gains or losses from changes in fair value | 0.00 | 0.00% | | No | | Asset Impairment | -135,901.55 | -0.15% | Primarily due to increased provision for inventory impairment by the company's subsidiaries during this period | No | | Non-operating Income | 304,469.53 | 0.33% | Primarily due to the write-off of accounts payable no longer required to be paid, breach of contract compensation income, and gains/losses from disposal of non-current assets by the company and its subsidiaries during this period | No | | Non-operating Expenses | 406,841.12 | 0.44% | Primarily due to external donations, gains/losses from disposal of non-current assets, and late payment fees by the company and its subsidiaries during this period | No | | Credit Impairment Loss | -2,001,307.70 | -2.14% | Primarily due to increased provision for bad debts by the company and its subsidiaries based on expected credit loss assessment during this period | No | | Gains from Asset Disposal | 104,580.61 | 0.11% | Primarily due to decreased gains from disposal of fixed assets and right-of-use assets by the company and its subsidiaries during this period | No | V. Analysis of Assets and Liabilities This section analyzes the company's asset and liability structure and changes, showing a 5.39% increase in total assets, with accounts receivable and short-term borrowings increasing their proportions, and details assets restricted in rights, totaling CNY 402.02 million Significant Changes in Asset Composition | Item | End of Current Period Amount (CNY) | Proportion of Total Assets (%) | End of Prior Year Amount (CNY) | Proportion Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 162,366,649.07 | 4.71% | 192,934,256.88 | -1.19% | | Accounts Receivable | 1,808,597,322.32 | 52.44% | 1,650,399,018.57 | 2.01% | | Inventories | 357,818,465.89 | 10.37% | 364,359,553.02 | -0.76% | | Construction in Progress | 171,731,314.46 | 4.98% | 152,787,588.86 | 0.31% | | Short-term Borrowings | 545,012,377.22 | 15.80% | 462,014,753.43 | 1.68% | | Contract Liabilities | 103,799,964.76 | 3.01% | 112,763,836.88 | -0.44% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | | Investments in Other Equity Instruments | 23,100,000.00 | 23,100,000.00 | | Other (Financing for Accounts Receivable) | 54,744,925.19 | 53,978,028.14 | | Financial Liabilities | -54,047.25 (Change) | 63,585.00 | | Total | 77,844,925.19 | 77,078,028.14 | Asset Restrictions | Item | Period-end Book Balance (CNY) | Period-end Book Value (CNY) | Restriction Status | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 14,381,890.50 | 14,381,890.50 | Frozen bank deposits, loan guarantees, performance bonds, etc. | | Accounts Receivable | 124,217,359.59 | 124,217,359.59 | Pledged for bank loans | | Fixed Assets | 214,350,308.88 | 57,188,941.89 | Mortgaged for bank loans | | Intangible Assets | 69,760,841.91 | 52,666,090.41 | Mortgaged for bank loans | | Construction in Progress | 153,561,319.07 | 153,561,319.07 | Mortgaged for bank loans | | Total | 576,271,719.95 | 402,015,601.46 | | VI. Analysis of Investment Status Total investment for the reporting period was CNY 32.44 million, a 35.81% decrease year-on-year, with the company engaging in hedging derivative investments (futures and forward foreign exchange) to mitigate raw material price and exchange rate risks, resulting in a CNY 0.23 million actual gain Investment Amount During Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Current Period Investment Amount | 32,442,678.08 | | Prior Year Period Investment Amount | 50,538,370.80 | | Change | -35.81% | Financial Assets Measured at Fair Value | Asset Category | Amount Purchased During Reporting Period (CNY) | Amount Sold During Reporting Period (CNY) | Accumulated Investment Income (CNY) | Period-end Amount (CNY) | | :--- | :--- | :--- | :--- | :--- | | Futures | 88.03 | 0.00 | 0.00 | 60.67 | | Financial Derivatives | 3,030.76 | 3,030.76 | 23.24 | 0.00 | | Total | 3,118.79 | 3,030.76 | 23.24 | 60.67 | - The company engaged in hedging activities, with an actual gain of CNY 0.23 million, aiming to mitigate raw material price fluctuations and exchange rate risks, thereby enhancing financial stability[65] - During the reporting period, the company had no use of raised funds, entrusted wealth management, or speculative derivative investments[63][64][67] VII. Disposal of Significant Assets and Equity During the reporting period, the company did not dispose of significant assets but completed the transfer of 100% equity in its wholly-owned subsidiary Shanghai Yalian Ink Chemical Co., Ltd. for CNY 38.19 million, contributing CNY 26.25 million to current net profit, representing 28.11% of total net profit - The company did not dispose of significant assets during the reporting period[68] Disposal of Significant Equity | Item | Content | | :--- | :--- | | Transaction Counterparty | Taicang Chenghuoyue Machinery Equipment Co., Ltd. | | Equity Disposed | 100% equity of Shanghai Yalian Ink Chemical Co., Ltd. | | Disposal Date | June 11, 2025 | | Transaction Price (CNY 10,000) | 3,819.49 | | Net Profit Contributed by This Equity to the Listed Company from Beginning of Period to Disposal Date (CNY 10,000) | -55.62 | | Impact of Disposal on the Company (Increase in Current Net Profit in CNY 10,000) | 2,624.66 | | Proportion of Net Profit Contributed by Equity Disposal to Total Net Profit of Listed Company | 28.11% | | Pricing Principle for Equity Disposal | Based on asset-based valuation, negotiated by transaction parties | | Is it a Related Party Transaction | No | | Has All Involved Equity Been Transferred | Yes | VIII. Analysis of Major Holding and Associate Companies This section analyzes the financial performance of key subsidiaries Pinzhong Innovation, Tianlong Fine Chemical, and Guangdong Tianlong, and notes the establishment of three new subsidiaries and the disposal of 100% equity in Shanghai Yalian Ink Chemical Co., Ltd. during the reporting period Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (CNY 10,000) | Total Assets (CNY 10,000) | Net Assets (CNY 10,000) | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Pinzhong Innovation | Subsidiary | Internet Marketing Services | 5,000.00 | 165,029.64 | 96,081.61 | 240,917.55 | 2,551.67 | 1,915.41 | | Tianlong Fine Chemical | Subsidiary | Turpentine Deep Processing Products | 9,000.00 | 28,293.97 | 14,723.13 | 19,504.22 | 1,671.03 | 1,259.03 | | Guangdong Tianlong | Subsidiary | Water-based Inks, Resins, Solvent Inks | 27,570.61 | 62,830.64 | 36,033.08 | 20,252.50 | 1,373.93 | 1,224.04 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shanxi Pinzhong Interactive Technology Co., Ltd. | Established | No significant impact | | Guangdong Chengyi Enterprise Management Service Co., Ltd. | Established | No significant impact | | PT TLOONG INK INDONESIA (Tianlong Ink Indonesia Co., Ltd.) | Established | No significant impact | | Shanghai Yalian Ink Chemical Co., Ltd. | 100% equity transfer | This transaction increased the company's current net profit by CNY 26.25 million | IX. Structured Entities Controlled by the Company This section states that the company had no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[73] X. Risks Faced by the Company and Countermeasures The company faces risks from industry regulation, media cooperation, customer changes, accounts receivable, technological iteration, and chemical market volatility, which are addressed through policy monitoring, media resource diversification, service quality improvement, risk control, R&D investment, and market analysis - The company faces risks from policy changes in the internet marketing industry, addressed by monitoring policies and adhering to compliant operations[73][74] - The company faces risks from upstream media cooperation in internet marketing, addressed by building a comprehensive media resource matrix and deepening cooperation[74][75] - The company faces customer change risks, addressed by enhancing marketing technology and service quality[75] - The company faces accounts receivable risks, addressed by accumulating industry management experience, upgrading business management systems, and establishing risk control mechanisms[75] - The company faces technological iteration risks, addressed by building R&D teams and actively developing and introducing new technologies[76] - The company faces market volatility risks in its chemical business, addressed by in-depth analysis of industry trends, increasing sales of high-demand products, and advancing industrial chain layout[76] XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period This section records the company's investor relations activities during the reporting period, including an online exchange on May 12, 2025, discussing operations, strategy, and financial status Registration Form for Research Activities During the Reporting Period | Reception Date | Reception Location | Reception Method | Type of Recipient | Main Topics Discussed and Materials Provided | | :--- | :--- | :--- | :--- | :--- | | May 12, 2025 | Panorama Network “Investor Relations Interactive Platform” | Online exchange on network platform | Other (Investors) | Company's operating status, strategic direction, financial condition, etc. | XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan This section states that the company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[78] - The company has not disclosed a valuation enhancement plan[78] XIII. Implementation of the 'Quality and Return Dual Enhancement' Action Plan This section states that 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[78] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's directors, supervisors, and senior management, profit distribution plans, equity incentive schemes, environmental information disclosure, and social responsibility initiatives I. Changes in Company Directors, Supervisors, and Senior Management This section states that there were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[80] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Current Reporting Period This section states that 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[81] III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section discloses that 6.972 million restricted shares from the 2021 equity incentive plan were forfeited due to employee departures and unmet performance targets, with no other employee incentive measures in place during the reporting period - During the fourth vesting period of the company's 2021 restricted stock incentive plan, a total of 6.972 million restricted shares, already granted but not yet vested, were forfeited due to the departure of 8 incentive recipients and the company's failure to meet performance targets[82] - During the reporting period, the company had no employee stock ownership plans or other employee incentive measures[83] IV. Environmental Information Disclosure This section discloses that the company and its four major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with corresponding reports available for query - The company and its 4 major subsidiaries are included in the list of enterprises required to disclose environmental information by law[83] Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Guangdong Tianlong Ink Co., Ltd. | Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 2 | Guangdong Tianlong Fine Chemical Co., Ltd. | Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 3 | Chengdu Tianlong Ink Co., Ltd. | Enterprise Environmental Information Disclosure System (Sichuan) | | 4 | Hangzhou Tianlong Ink Co., Ltd. | Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | V. Social Responsibility The company actively fulfills its social responsibilities by upholding its mission and values, safeguarding shareholder rights, fostering partner collaboration, prioritizing talent development, emphasizing safety and environmental protection, and participating in public welfare donations - The company strictly adheres to regulations, improves internal controls, enhances governance, safeguards shareholder rights, and communicates with investors through various channels[85] - The company adheres to a customer-first principle, maintaining long-term good cooperative relationships with clients and suppliers to achieve mutual benefit and win-win outcomes[85] - The company is people-oriented, providing multi-dimensional training, implementing equity incentive and performance-based compensation systems, and focusing on employee physical and mental well-being[86] - The company highly values safety and environmental protection in its traditional chemical segment, continuously promoting safety and environmental training and drills[86] - The company actively participates in the rural revitalization strategy, making donations in areas such as education, poverty alleviation, and rural infrastructure, and contributing to post-disaster reconstruction in flood-affected regions[87] Section V Significant Matters This section details significant matters including commitments, related party transactions, litigation, and guarantees, providing insights into the company's operational and financial integrity I. Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period This section states that there were no commitments fulfilled or overdue unfulfilled by the actual controller, shareholders, related parties, acquirers, or the company during or as of the end of the reporting period - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company as of the end of the reporting period[90] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties This section states that there was no non-operating occupation of listed company funds by the controlling shareholder or other related parties during the reporting period - During the reporting period, there was no non-operating occupation of listed company funds by the controlling shareholder or other related parties[91] III. Irregular External Guarantees This section states that there were no irregular external guarantees by the company during the reporting period - The company had no irregular external guarantees during the reporting period[92] IV. Appointment and Dismissal of Accounting Firms This section states that the company's semi-annual report was unaudited - The company's semi-annual report was unaudited[93] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee Regarding the Accounting Firm's 'Non-Standard Audit Report' for the Current Period This section states that there were no explanations by the Board of Directors, Supervisory Board, or Audit Committee regarding a 'non-standard audit report' for the current period - During the reporting period, there were no explanations by the Board of Directors, Supervisory Board, or Audit Committee regarding the accounting firm's 'non-standard audit report' for the current period[94] VI. Explanations by the Board of Directors Regarding the 'Non-Standard Audit Report' for the Prior Year This section states that there were no explanations by the Board of Directors regarding the 'non-standard audit report' for the prior year - During the reporting period, there were no explanations by the Board of Directors regarding the 'non-standard audit report' for the prior year[94] VII. Bankruptcy and Reorganization Matters This section states that no bankruptcy and reorganization matters occurred during the reporting period - No bankruptcy and reorganization matters occurred during the reporting period[94] VIII. Litigation Matters This section discloses no major litigation or arbitration matters during the reporting period, but notes ongoing cases, including a CNY 24.38 million service fee case where Beijing Pinzhong won on appeal and is now in enforcement, and a CNY 17.41 million case in its first instance - The company had no major litigation or arbitration matters during the current reporting period[96] Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (CNY 10,000) | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Enforcement Status | | :--- | :--- | :--- | :--- | :--- | | Beijing Pinzhong sued Shanghai Tushi Technology and other companies, demanding payment for service fees. | 2,438.1 | Second instance judgment became effective | Judgment ordered Shanghai Tushi Technology and other companies to pay service fees to Beijing Pinzhong, with Shanghai Lingyi Technology bearing joint liability. | Entered enforcement procedure | | Beijing Pinzhong sued Guangzhou Maiji Information Technology and other companies, demanding payment for service fees. | 1,740.05 | First instance | Not applicable | Not applicable | | Other small unsettled cases | 803.84 | Not applicable | Not applicable | Not applicable | IX. Penalties and Rectification This section states that there were no penalties or rectification situations for the company during the reporting period - The company had no penalties or rectification situations during the reporting period[97] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller This section states that there were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[98] XI. Significant Related Party Transactions This section discloses no significant related party transactions related to daily operations, asset/equity acquisition/disposal, or joint external investments, but notes non-operating related party debt where controlling shareholder Feng Yi provided CNY 103.5 million in loans to the company - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisition/disposal, or joint external investments[98][99][100][104] Payables to Related Parties | Related Party | Related Party Relationship | Reason for Formation | Beginning Balance (CNY 10,000) | Amount Newly Added This Period (CNY 10,000) | Amount Repaid This Period (CNY 10,000) | Interest Rate | Interest This Period (CNY 10,000) | Ending Balance (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Feng Yi | Controlling Shareholder, Actual Controller, Chairman, General Manager | Mr. Feng Yi provided loans to the company | 10,350 | 0 | 0 | LPR | 160.11 | 10,350 | - Controlling shareholder Mr. Feng Yi provided loans to the company, demonstrating support for the company and its subsidiaries, which is beneficial for business development and sustained growth[101] - There are no deposits, loans, credit lines, or other financial transactions between the company and related financial companies, or between financial companies controlled by the company and related parties[102][103] XII. Significant Contracts and Their Performance This section states no significant contracts for entrustment, contracting, or leasing, but details company guarantees for subsidiaries, with approved guarantee limits totaling CNY 1.475 billion and actual outstanding guarantees of CNY 611.84 million at period-end, representing 36.02% of net assets - During the reporting period, the company had no significant contracts for entrustment, contracting, leasing, or major daily operations[105][106][114] Company Guarantees for Subsidiaries | Guaranteed Party Name | Guaranteed Limit (CNY 10,000) | Actual Guaranteed Amount (CNY 10,000) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Tianlong Fine Chemical (Bank of Communications Zhaoqing Branch Loan) | 1,140 | 1,000 | Joint and several liability guarantee | Three years after the expiration of the main debt's performance period | No | | Guangdong Tianlong (Bank of China Zhaoqing Branch Loan) | 12,000 | 9,642.17 | Joint and several liability guarantee | Three years from the expiration of the debt performance period | No | | Tianlong Fine Chemical (Bank of China Zhaoqing Branch Loan) | 4,750 | 4,750 | Joint and several liability guarantee | Three years from the expiration of the main creditor's rights period | No | | Beijing Youli (China Merchants Bank Beijing Branch Loan) | 500 | 500 | Joint and several liability guarantee | Three years after the date of debt repayment | No | | Beijing Pinzhong (Bank of Beijing Zhongguancun Branch Loan) | 2,000 | 2,000 | Joint and several liability guarantee | Three years after the date of debt repayment | No | | Beijing Jishi (Bank of Beijing Zhongguancun Branch Loan) | 1,000 | 1,000 | Joint and several liability guarantee | Three years after the date of debt repayment | No | | Guangdong Tianlong (Huishang Bank Zhaoqing Branch Loan) | 2,000 | 1,800 | Joint and several liability guarantee | Three years from the day after the loan maturity date | No | | Beijing Pinzhong (Xiamen International Bank Beijing Branch Loan) | 1,000 | 1,000 | Joint and several liability guarantee | Three years from the expiration of the debt performance period | No | | Beijing Pinzhong (Bank of Beijing Zhongguancun Branch Loan) | 3,000 | 3,000 | Joint and several liability guarantee | Three years after the date of debt repayment | No