丽臣实业(001218) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The board and senior management guarantee the semi-annual report's accuracy and completeness, with no plans for cash dividends or bonus share distributions - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[3] - Company head Liu Maolin, chief accountant Zheng Gang, and head of accounting department Zhou Zhuang declare the financial report in this semi-annual report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[3] Table of Contents This report is structured into nine main chapters, providing a comprehensive overview of the company's operations and financial status - The report has a clear structure with nine main chapters, facilitating a comprehensive understanding of the company's operations for investors[5] Definitions This section defines key terms, including company entities, industry organizations, legal frameworks, and financial units, for accurate report interpretation - Defines the company, subsidiaries (e.g., Lichen Aowei, Liao Technology, Daily Chemical Research Institute), and industry organizations (e.g., China Detergent Association, PCSD)[8] - Explains laws and regulations such as the Company Law, Securities Law, and Articles of Association, along with industry standards and certifications like EU REACH, HALAL, RSPO, EFfCI GMP, and COSMOS[8] - Clarifies financial measurement units (yuan, ten thousand yuan, and hundred million yuan, all in RMB) and the reporting period (January 1, 2025, to June 30, 2025)[8] Part II Company Profile and Key Financial Indicators Company Profile Hunan Lichen Industrial Co., Ltd., stock code 001218, is listed on the Shenzhen Stock Exchange, with its legal representative as Liu Maolin and no changes in contact information during the reporting period - Company stock abbreviation: Lichen Industrial, stock code: 001218, listed on: Shenzhen Stock Exchange[11] - The company's legal representative is Liu Maolin, board secretary is Zhong Cheng, and securities affairs representative is Liu Zenghui[11][12] - During the reporting period, there were no changes in the company's registered address, office address, website, email, or information disclosure location[13][14] Key Accounting Data and Financial Indicators The company's 2025 semi-annual operating revenue increased by 31.43% to 2.21 billion yuan, with net profit attributable to shareholders growing by 5.70% to 55.07 million yuan 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,210,279,834.78 | 1,681,754,419.20 | 31.43% | | Net Profit Attributable to Shareholders of the Listed Company | 55,069,773.95 | 52,099,272.40 | 5.70% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 50,865,130.20 | 48,497,383.30 | 4.88% | | Net Cash Flow from Operating Activities | 111,343,972.01 | 188,498,064.84 | -40.93% | | Basic Earnings Per Share (yuan/share) | 0.4230 | 0.3800 | 11.32% | | Diluted Earnings Per Share (yuan/share) | 0.4202 | 0.3800 | 10.58% | | Weighted Average Return on Net Assets | 2.55% | 2.42% | 0.13% | | Period-end Indicators | Current Reporting Period-end (yuan) | Prior Year-end (yuan) | Period-end vs. Prior Year-end Change | | Total Assets | 2,947,641,596.84 | 2,863,914,472.60 | 2.92% | | Net Assets Attributable to Shareholders of the Listed Company | 2,207,424,147.18 | 2,205,487,215.87 | 0.09% | - Net profit after deducting the impact of share-based payments was 62.36 million yuan[17] Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and Chinese accounting standards during the reporting period[18] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[19] Non-recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the reporting period amounted to 4.20 million yuan, primarily from disposal of non-current assets, government grants, fair value changes of financial assets and liabilities, and entrusted investment income 2025 Semi-Annual Non-recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 52,089.19 | | Government grants recognized in current profit or loss | 2,916,117.33 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities | 924,008.04 | | Gains and losses from entrusted investment or asset management | 1,187,982.25 | | Other non-operating income and expenses apart from the above | 267,010.88 | | Less: Income tax impact | 1,142,563.94 | | Total | 4,204,643.75 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring profit or loss items[23][24] Part III Management Discussion and Analysis Main Business Activities During the Reporting Period The company primarily engages in R&D, production, and sales of surfactants and detergents, operating in the fine chemical industry with three production bases and achieving growth in revenue and net profit Industry Development The fine chemical industry, particularly surfactants and detergents, is driven by policy support for green development, with steady market demand and growth in production and sales - The company's main business involves the R&D, production, and sales of surfactants and detergents, belonging to the chemical raw materials and chemical products manufacturing industry (code C26)[26] - The surfactant industry is supported by policies promoting green and sustainable development, with continuous market demand growth; in 2024, China's total surfactant production reached approximately 4.75 million tons, an increase of about 22.27% from 2021, and sales totaled approximately 4.70 million tons, up about 24.17% from 2021[27][30] - The detergent market continues to grow steadily, with domestic synthetic detergent production reaching 11.50 million tons in 2024, a year-on-year increase of approximately 3.98%, and expanding into high-value-added industrial cleaning agents[31][32] Main Business Activities During the Reporting Period The company specializes in R&D, production, and sales of surfactants and detergents, operating three production bases with annual capacities exceeding 600,000 tons for surfactants and 250,000 tons for detergents, utilizing a sales-driven production model - The company operates three production bases in Changsha, Shanghai, and Dongguan, with an annual surfactant production capacity exceeding 600,000 tons and detergent production capacity of approximately 250,000 tons[33] - Surfactant products, including AES, LAS, and K12 series, are the company's primary source of revenue and profit, ranking among the top two in national production and sales in 2024, used in daily detergents, cosmetics, and other fields[34] - Detergent products include proprietary brands (e.g., "Matou," "Guanghui") and OEM services for companies like P&G and Hutchison Whitecat, with expansion into industrial cleaning agents[35] - The company adopts a make-to-order production model, primarily sourcing raw materials like natural oils and petrochemical products, and employs a direct sales model for surfactants (over 90%), while detergents use a mix of distribution, direct sales, and OEM[36][37][38] Market Position The company holds a leading position in the anionic surfactant market, ranking among the top two nationally in production and sales for key products in 2024, and maintains brand influence in regional detergent markets - The company primarily competes in the anionic surfactant market, ranking among the top two nationally in production and sales for key surfactant products in 2024[39] - The detergent industry is highly competitive, but the company's proprietary brands like "Matou" and "Guanghui" have established a certain brand influence in Hunan, Hubei, and surrounding regions[39] Major Industry Policies and Impacts During the Reporting Period The surfactant industry benefits from national policy support for green development, with recent standard revisions aimed at enhancing product safety, environmental protection, and promoting low-carbon practices - The "14th Five-Year Plan Guidance for High-Quality Development of the Surfactant Industry" emphasizes the vigorous development of natural oil-derived surfactants to promote green and sustainable industry growth[40] - In July 2025, the National Standardization Administration approved 12 recommended national standard revision plans for surfactants and detergents, aiming to optimize technical indicators and strengthen safety and environmental attributes[40] - Policy and standard revisions collectively drive the surfactant industry towards resource circularity, precise testing, and standardized labeling, injecting new momentum into low-carbon development[40] Overview of Main Operations Despite raw material price volatility and increased market competition, the company achieved revenue growth of 31.43% to 2.21 billion yuan and net profit growth of 5.70% to 55.07 million yuan in the first half of 2025 through strategic procurement and market expansion - The company achieved operating performance growth in the first half of 2025 by strengthening raw material procurement and inventory management, expanding domestic and international markets, and promoting "lean management"[41] 2025 Semi-Annual Key Operating Performance | Indicator | Amount (billion yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 2.21 | 31.43% | | Net Profit Attributable to Shareholders of the Listed Company | 0.05507 | 5.70% | | Total Assets | 2.95 | 2.92% | | Total Liabilities | 0.74 | 12.42% | | Owners' Equity Attributable to Shareholders of the Listed Company | 2.21 | 0.09% | | Asset-Liability Ratio | 25.11% | Increased by 2.12 percentage points | 2025 Semi-Annual Business Segment Performance | Business Segment | Operating Revenue (billion yuan) | Year-on-year Change | Sales Gross Margin | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | | Surfactants | 2.08 | 34.62% | 8.64% | Decreased by 2.41 percentage points | | Detergents | 0.11 | 2.03% | 23.96% | Increased by 0.77 percentage points | Core Competitiveness Analysis The company's core competitiveness stems from its technological leadership, strategic location, strong customer base, economies of scale, established brand, and integrated industrial chain advantages Technological and Product Quality Advantages The company maintains a strong focus on R&D and innovation, holding numerous patents and international certifications, with subsidiaries recognized as "National Specialized, Refined, and New Little Giant Enterprises" or "National Green Factories" - The company holds 39 invention patents and 117 utility model patents, with key products certified by EFfCI GMP, HALAL, RSPO, and COSMOS international standards[44] - Subsidiaries Lichen Aowei, Shanghai Aowei, and Guangdong Aowei have been recognized as "National Specialized, Refined, and New Little Giant Enterprises" or "National Green Factories"[44] - The company's dioxane control and color control technologies are domestically leading, with an internal dioxane content standard of no more than 30ppm, significantly lower than the national standard of 100ppm[45] Geographical and Customer Resource Advantages With three strategically located production bases, the company effectively serves major domestic markets and facilitates international trade, fostering long-term partnerships with leading daily chemical enterprises - The company's three production bases (Changsha, Shanghai, Dongguan) are strategically located in Central China, the Pearl River Delta, and the Yangtze River Delta, serving the major domestic demand markets in Central, East, and South China, while gradually increasing market share in Southwest and North China[46] - Subsidiaries Shanghai Aowei and Guangdong Aowei are located near ports, effectively improving efficiency in foreign trade transactions[46] - The company has become a key surfactant supplier to renowned daily chemical enterprises such as P&G, Blue Moon, Nice, Yihai Kerry, Colgate, Hutchison Whitecat, and Amway[47] Economies of Scale and Cost Advantages With an annual surfactant production capacity exceeding 600,000 tons and a top-two national ranking in production and sales, the company leverages significant economies of scale, centralized procurement, and enhanced production efficiency to achieve cost advantages - The company's annual surfactant production capacity exceeds 600,000 tons, ranking among the top two nationally in production and sales for key surfactant products in 2024, demonstrating significant economies of scale[48] - The company employs a centralized procurement model, giving it bargaining power with suppliers of fatty alcohols and other raw materials, and adjusts procurement strategies based on market conditions to reduce costs[48] - Through capital raised, the company has added multiple large-scale production facilities, enhancing capacity and production efficiency, thereby reducing unit production costs[48][49] Brand and Industry Position Advantages The company has established a strong brand presence in mid-to-high-end surfactants, with "AW" recognized as a China Well-known Trademark, and holds a prominent industry position through participation in national standard drafting - The company has built the "AW" brand for its surfactant products, establishing a leading position in the mid-to-high-end product segment[50] - The "AW" trademark has been recognized as a China Well-known Trademark by the State Administration for Industry and Commerce, and the "Matou" brand has been designated a "Changsha Time-honored Brand"[50] - The company serves as a Vice Chairman Unit of the China Detergent and Cleaning Products Industry Association and has participated in drafting multiple national and industry standards, enjoying high brand recognition and industry status[50] Industrial Chain Advantages Leveraging decades of experience in both surfactant and detergent businesses, the company integrates its upstream and downstream operations to ensure product quality, enhance customer loyalty, and strengthen overall market competitiveness and risk resilience - The company's detergent business has decades of development experience, with a current annual production capacity of approximately 250,000 tons[51] - Through upstream and downstream business integration, the company utilizes its self-produced high-quality surfactant raw materials to ensure the stability and cost-effectiveness of detergent products, enhancing customer loyalty[51] - The industrial chain advantage helps the company achieve stronger product market competitiveness and overall risk resilience[51] Main Business Analysis In the first half of 2025, the company's operating revenue increased by 31.43% to 2.21 billion yuan due to sales growth and rising raw material prices, while operating costs rose by 34.99%, and cash flow from operating activities decreased by 40.93% Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,210,279,834.78 | 1,681,754,419.20 | 31.43% | Growth in production and sales scale, and rising raw material prices driving product price increases | | Operating Cost | 2,002,476,656.98 | 1,483,438,151.45 | 34.99% | Growth in production and sales scale, and rising raw material prices | | Selling Expenses | 29,519,373.89 | 32,297,432.98 | -8.60% | Decrease in share-based payment expenses | | Administrative Expenses | 48,112,942.52 | 57,903,512.47 | -16.91% | Decrease in share-based payment expenses | | Financial Expenses | -6,624,556.74 | -12,088,521.52 | 45.20% | Decrease in interest income and foreign exchange gains | | Income Tax Expense | -3,378,773.40 | 3,443,896.70 | -198.11% | Recognition of deferred income tax assets | | R&D Expenses | 82,574,016.34 | 65,032,336.29 | 26.97% | Increase in R&D investment | | Net Cash Flow from Operating Activities | 111,343,972.01 | 188,498,064.84 | -40.93% | Increase in cash paid for goods purchased | | Net Cash Flow from Investing Activities | -159,853,835.23 | -139,847,721.86 | -14.31% | Increase in cash paid for investments | | Net Cash Flow from Financing Activities | -788,621.77 | -82,683,480.00 | 99.05% | No cash dividends paid | | Net Increase in Cash and Cash Equivalents | -49,947,559.82 | -32,532,706.87 | -53.53% | Decrease in net cash flow from operating activities and no cash dividends paid for 2024 | Operating Revenue Composition | Category | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 2,210,279,834.78 | 100% | 1,681,754,419.20 | 100% | 31.43% | | By Industry | | | | | | | Fine Chemical Industry | 2,185,846,668.17 | 98.89% | 1,649,115,033.69 | 98.06% | 32.55% | | Other Businesses | 24,433,166.61 | 1.11% | 32,639,385.51 | 1.94% | -25.14% | | By Product | | | | | | | Surfactants | 2,078,842,441.35 | 94.05% | 1,544,237,893.65 | 91.82% | 34.62% | | Detergents | 107,004,226.82 | 4.84% | 104,877,140.04 | 6.24% | 2.03% | | Other Businesses | 24,433,166.61 | 1.11% | 32,639,385.51 | 1.94% | -25.14% | | By Region | | | | | | | Domestic Sales | 1,791,915,221.22 | 81.07% | 1,408,441,412.46 | 83.75% | 27.23% | | Export Sales | 418,364,613.56 | 18.93% | 273,313,006.74 | 16.25% | 53.07% | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[55] Non-Main Business Analysis Non-main business activities, including positive contributions from investment income and fair value changes, and negative impacts from asset impairment, influenced the company's total profit during the reporting period, but these are not sustainable Impact of Non-Main Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,187,982.25 | 2.30% | Income generated from purchasing wealth management products with idle funds | No | | Fair Value Change Gains and Losses | 924,008.04 | 1.79% | Accrual of interest on structured deposits | No | | Asset Impairment | -4,666,539.26 | -9.03% | Provision for inventory impairment | No | | Non-operating Income | 323,527.57 | 0.63% | Receipt of performance compensation and customer sponsorship fees | No | | Non-operating Expenses | 45,135.46 | 0.09% | Donation expenses | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets reached 2.95 billion yuan, a 2.92% increase from the previous year-end, with notable changes in cash, fixed assets, and other non-current assets, and an asset-liability ratio of 25.11% Significant Changes in Asset Composition | Item | Period-end Amount (yuan) | Proportion of Total Assets | Prior Year-end Amount (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 563,700,406.98 | 19.12% | 662,540,491.85 | 23.13% | -4.01% | Purchase of wealth management products and large-denomination certificates of deposit | | Accounts Receivable | 422,096,454.11 | 14.32% | 397,495,697.66 | 13.88% | 0.44% | Increase in operating revenue | | Inventories | 387,527,059.04 | 13.15% | 446,966,139.05 | 15.61% | -2.46% | Decrease in raw material and finished goods inventory | | Fixed Assets | 817,137,804.68 | 27.72% | 734,015,916.43 | 25.63% | 2.09% | Phase II of the 250,000-ton project transferred to fixed assets | | Construction in Progress | 35,374,336.53 | 1.20% | 91,409,408.97 | 3.19% | -1.99% | Phase II of the 250,000-ton project transferred to fixed assets | | Trading Financial Assets | 115,995,410.78 | 3.94% | 80,251,402.74 | 2.80% | 1.14% | Purchase of wealth management products | | Other Non-current Assets | 227,372,828.48 | 7.71% | 96,764,853.06 | 3.38% | 4.33% | Purchase of large-denomination certificates of deposit maturing in over one year | | Notes Payable | 141,879,041.40 | 4.81% | 88,789,619.59 | 3.10% | 1.71% | Increase in settlement of goods with bank acceptance bills | | Other Payables | 103,119,840.67 | 3.50% | 43,499,803.72 | 1.52% | 1.98% | Accrual of 2024 cash dividends | - At the end of the reporting period, the company's restricted cash and bank balances amounted to 4.71 million yuan, primarily for unexpired interest and deposits[65] - The company's main asset measurement attributes did not undergo significant changes during the reporting period[65] Investment Analysis The company's total investment increased by 82.41% year-on-year, with ongoing non-equity projects facing challenges in meeting expected returns due to market competition and raw material price fluctuations, while derivative investments for hedging proved effective Overall Situation During the reporting period, the company's total investment amounted to 584.02 million yuan, representing an 82.41% increase compared to the same period last year Reporting Period Investment Amount | Indicator | Amount (yuan) | | :--- | :--- | | Investment Amount for the Reporting Period | 584,022,398.86 | | Investment Amount for the Prior Year Period | 320,165,305.93 | | Change Percentage | 82.41% | Significant Non-Equity Investments in Progress During the Reporting Period The company's major non-equity investment projects, including green surfactant production bases in Guangdong and Shanghai, are progressing, but some have not met expected profit targets due to intensified market competition and raw material price volatility Progress and Earnings of Major Non-Equity Investment Projects | Project Name | Investment Method | Investment Progress | Expected Earnings (yuan) | Cumulative Earnings as of Reporting Period-end (yuan) | Reasons for Not Meeting Planned Progress and Expected Earnings | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Lichen Aowei Industrial Co., Ltd. 150,000-ton Green Surfactant Project | Self-built | 78.58% | 26,629,350.00 | 90,386,536.28 | Due to intensified market competition and raw material price fluctuations, the project achieved a net profit of 11.97 million yuan, reaching 44.95% of expected earnings | | Shanghai Aowei Daily Chemical Co., Ltd. 80,000-ton New Green Surfactant Material Construction Project | Self-built | 91.45% | 11,042,600.00 | 69,422,026.04 | Due to intensified market competition and raw material price fluctuations, the project achieved a net profit of 2.56 million yuan, reaching 23.18% of expected earnings | | Annual 250,000-ton New Green Surfactant Production Base and Headquarters Construction Project (Phase I) | Self-built | 95.92% | 25,051,500.00 | 3,213,771.99 | Still requires time to reach full production; in the first half of 2025, it achieved a net profit of 3.74 million yuan, reaching 14.92% of expected earnings | | Annual 250,000-ton New Green Surfactant Production Base and Headquarters Construction Project (Phase II) | Self-built | 92.09% | 3,416,550.00 | 2,924,659.10 | Still requires time to reach full production; in the first half of 2025, the project achieved a net profit of 2.92 million yuan, reaching 85.60% of expected earnings | Financial Asset Investments The company did not engage in securities investments but utilized foreign exchange options for hedging purposes, effectively mitigating foreign exchange market risks and improving capital efficiency, while adhering to a robust risk management framework - The company had no securities investments during the reporting period[71] Derivative Investments for Hedging Purposes | Derivative Investment Type | Initial Investment Amount (million yuan) | Fair Value Change Gains and Losses for the Period (million yuan) | Amount Purchased During the Reporting Period (million yuan) | Amount Sold During the Reporting Period (million yuan) | Period-end Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Foreign Exchange Options | 7.19 | 0.03 | 7.19 | 7.19 | 0.00 | - During the reporting period, the actual gain from foreign exchange options was 30,770.23 yuan, effectively hedging foreign exchange market risks and improving foreign exchange capital utilization efficiency[73][74] - The company has established a "Futures and Derivatives Trading Management System" and implemented various risk control measures, including market research, risk exposure assessment, hierarchical management, personnel training, and audit supervision[74] - The company had no derivative investments for speculative purposes during the reporting period[75][76] Use of Raised Funds As of June 30, 2025, the company has utilized 802.56 million yuan of raised funds, with several projects completed or terminated, and remaining funds allocated to permanent working capital Overall Use of Raised Funds | Indicator | Amount (million yuan) | | :--- | :--- | | Net Raised Funds | 936.70 | | Total Raised Funds Cumulatively Used | 802.56 | | Total Unused Raised Funds | 55.09 | | Total Raised Funds with Changed Use Cumulatively | 383.72 | | Proportion of Raised Funds with Changed Use | 40.97% | - As of June 30, 2025, the company had cumulatively used 802.56 million yuan of raised funds, with 55.09 million yuan of unused funds held in a special regulatory account for raised funds[78] - The Guangdong Lichen Aowei 150,000-ton Green Surfactant Project, Shanghai Aowei Daily Chemical 80,000-ton New Green Surfactant Material Construction Project, and the Annual 250,000-ton New Green Surfactant Production Base and Headquarters Construction Project (Phase I) have all been successfully completed and closed[84] - The company terminated certain production lines of the Annual 250,000-ton New Green Surfactant Production Base and Headquarters Construction Project (Phase II) and the Hunan Lichen Industrial Co., Ltd. Information System Construction Project, permanently allocating 114.82 million yuan of remaining raised funds to working capital[84] - The implementation locations and methods of raised fund investment projects have been changed to optimize capacity layout and improve capital utilization efficiency[83] Disposal of Major Assets and Equity The company did not engage in any disposal of major assets or equity during the reporting period - The company did not dispose of major assets during the reporting period[89] - The company did not dispose of major equity during the reporting period[90] Analysis of Major Holding and Invested Companies The company's main subsidiaries, including Hunan Lichen Aowei, Shanghai Aowei Daily Chemical, and Guangdong Lichen Aowei, primarily produce and sell surfactants, significantly contributing to the company's net profit, with no acquisitions or disposals of subsidiaries during the period Financial Performance of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (million yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hunan Lichen Aowei Industrial Co., Ltd. | Subsidiary | Production and sales of surfactants | 10.00 | 332,751,494.19 | 228,199,166.74 | 448,302,637.08 | 19,799,372.42 | 18,180,541.70 | | Shanghai Aowei Daily Chemical Co., Ltd. | Subsidiary | Production and sales of surfactants | 100.00 | 961,226,814.69 | 304,112,493.86 | 968,375,919.14 | 9,241,651.39 | 12,849,943.52 | | Guangdong Lichen Aowei Industrial Co., Ltd. | Subsidiary | Production and sales of surfactants | 100.00 | 637,280,941.35 | 339,172,215.58 | 1,086,060,077.31 | 16,914,086.12 | 19,306,810.92 | - During the reporting period, the company had no important holding or invested company information to disclose, nor did it acquire or dispose of any subsidiaries[92] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[93] Risks Faced by the Company and Countermeasures The company addresses risks such as raw material price fluctuations, market competition, safety, environmental protection, and exchange rates through strategic partnerships, market expansion, lean management, strict compliance, and hedging activities - Raw material price fluctuation risk: The company mitigates this by strengthening strategic cooperation with suppliers, linking product sales prices to raw material procurement prices, and reasonably adjusting raw material inventory[93] - Market competition environment change risk: The company addresses this by increasing supply to existing customers, developing new customers, expanding international markets, and penetrating other downstream application areas[94] - Production safety risk: The company adheres to a "safe production, green operation" policy, strictly complies with regulations, establishes a comprehensive safety production management system, develops emergency plans, conducts regular drills, and increases safety investments[95] - Environmental protection risk: The company strictly follows national and local safety and environmental protection policies, implements risk assessment and prevention measures, builds environmental protection facilities, improves monitoring systems, and effectively treats pollutants[96][97] - Exchange rate risk: The company strengthens research and analysis of exchange rate trends, reasonably conducts foreign exchange hedging, and engages in futures and derivative transactions based on actual business needs and exchange rate fluctuations[98] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period[99] - The company did not disclose a valuation enhancement plan during the reporting period[99] Implementation of "Quality and Return Dual Enhancement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period[99] Part IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management of the Company During the reporting period, the company experienced several changes in its board of directors, supervisors, and senior management due to re-election and term expirations - Xu Jiangde was elected as a director, and Liu Aiju was elected as an employee representative director[100] - Liu Xialing and Zhou Zhuang resigned as directors due to term expiration; Liu Guobiao, Ou Shengqiang, and Zhang Lixiang resigned as supervisors due to term expiration[100] - Zheng Gang resigned as board secretary due to term expiration, and Zhong Cheng was appointed as board secretary[100] Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 2025 semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[102] Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company's 2023 restricted stock incentive plan continues to be implemented, with the second vesting period conditions met, allowing 1.70 million shares to be unlocked for 74 grantees and listed for trading on July 28, 2025 - The conditions for the second vesting period of the 2023 restricted stock incentive plan have been met[106] - 74 eligible grantees can unlock 1,699,890 shares, representing 1.3058% of the company's total share capital[106] - These restricted shares were listed for trading on July 28, 2025[106] - The company had no employee stock ownership plans or other employee incentive measures during the reporting period[107] Environmental Information Disclosure The company and its three major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with their respective reports available through local environmental information disclosure systems - The company and its 3 major subsidiaries are included in the list of enterprises required to disclose environmental information by law[107] - Changsha Economic and Technological Development Zone Liao Technology Co., Ltd., Shanghai Aowei Daily Chemical Co., Ltd., and Guangdong Lichen Aowei Industrial Co., Ltd. have all disclosed environmental information in accordance with the law[107] Social Responsibility The company actively fulfills its social responsibilities by promoting green and low-carbon development, ensuring production safety, safeguarding employee rights, and engaging in various public welfare and charitable activities - The company actively responds to the "carbon peak and carbon neutrality" strategy, with Lichen Aowei, Shanghai Aowei, and Guangdong Aowei recognized as "National Green Factories"[108] - The company organizes various safety training and emergency drills to enhance employee safety awareness and skills[108] - The company safeguards employees' legitimate rights and interests, provides a safe and comfortable working environment, and organizes activities such as office software and AI application training, and online book clubs[108] - The company actively participates in social welfare and charitable causes, donating 30,000 yuan to a charity foundation and engaging in consumer assistance, voluntary blood donation, and community volunteer services[109] Part V Significant Matters Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period All commitments made by the company's actual controllers, directors, supervisors, senior management, and the company during its initial public offering or refinancing, including share lock-up, prospectus accuracy, anti-dilution measures, non-competition, related party transaction regulation, and dividend policies, are being fulfilled on time, with no overdue unfulfilled commitments - The company's joint actual controllers (Jia Qizheng, Sun Jianxiong, Hou Bingyang, Liu Guobiao, Ye Jiyong, Zheng Gang) committed to voluntary share lock-up and to transferring no more than 25% of their total shares annually during their tenure[111] - The company, its joint actual controllers, and its directors, supervisors, and senior management committed that the prospectus contains no false statements, misleading representations, or material omissions[111] - All directors, supervisors, and senior management committed to measures to compensate for diluted immediate returns, ensuring no harm to the company's interests[111] - The joint actual controllers committed to eliminating or avoiding horizontal competition, refraining from engaging in activities that compete with the company's main business[111][112] - The company and all directors, supervisors, and senior management committed to regulating and reducing related party transactions, ensuring fairness and impartiality[112][113] - The company committed to implementing a continuous and stable profit distribution policy for the next three years (2024-2026), prioritizing cash dividends, with annual cash dividends not less than 20% of the distributable profit for the year[113] - All commitments are being fulfilled on time, with no overdue unfulfilled situations; some locked shares of senior management cannot be actually traded because the company's stock price is below the ex-dividend and ex-right issue price[111][113][114] Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties of the listed company - During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties of the listed company[115] 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[116] Appointment and Dismissal of Accounting Firms The company's 2025 semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[117] Explanation by the Board of Directors and Supervisory Board on "Non-Standard Audit Report" for This Reporting Period As there was no non-standard audit report during the reporting period, the board of directors and supervisory board do not need to provide an explanation - The company had no non-standard audit report during the reporting period[118] Explanation by the Board of Directors on "Non-Standard Audit Report" for the Previous Year As there was no non-standard audit report during the reporting period, the board of directors does not need to provide an explanation for the previous year - The company had no non-standard audit report during the reporting period[118] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization-related matters during the reporting period - The company had no bankruptcy or reorganization-related matters during the reporting period[118] Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the reporting period - The company had no significant litigation or arbitration matters during this reporting period[119] - The company had no other litigation matters during the reporting period[120] 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[121] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts[122] Significant Related Party Transactions During the reporting period, the company had no significant related party transactions, including those related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor/debtor relationships, or financial company dealings - The company had no related party transactions related to daily operations during the reporting period[123] - The company had no related party transactions involving asset or equity acquisition or disposal during the reporting period[124] - The company had no related party transactions involving joint external investments during the reporting period[125] - The company had no related party creditor-debtor relationships during the reporting period[126] - The company and its related financial companies had no deposits, loans, credit lines, or other financial business dealings with related parties[127] - The company had no other significant related party transactions during the reporting period[129] Significant Contracts and Their Performance The company engaged in asset leasing and provided guarantees for subsidiaries, with total guarantees representing 6.42% of net assets, and utilized idle funds for bank wealth management products, with no other significant contracts during the reporting period - The company had no trusteeship or contracting situations during the reporting period[130][131] - During the reporting period, the company leased properties and other assets for daily production and operations, and leased out standard factory buildings and other assets to generate income[132] - During the reporting period, the company had no leasing projects where the profit or loss generated for the company exceeded 10% of its total profit for the reporting period[133] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Hunan Lichen Aowei Industrial Co., Ltd. | 130.00 | 2.27 | Joint and Several Liability Guarantee | February 27, 2019, to December 31, 2027 | No | | Guangdong Lichen Aowei Industrial Co., Ltd. | 100.00 | 27.46 | Joint and Several Liability Guarantee | For a series of contracts, agreements, and other legal documents and their amendments or supplements signed between March 27, 2023, and March 26, 2027 | No | | Hunan Lichen Aowei Industrial Co., Ltd. | 90.00 | 36.63 | Joint and Several Liability Guarantee | From October 9, 2024, to October 8, 2025 | No | | Guangdong Lichen Aowei Industrial Co., Ltd. | 80.00 | 64.00 | Joint and Several Liability Guarantee | From December 6, 2023, to December 6, 2025 | No | | Shanghai Aowei Daily Chemical Co., Ltd. | 50.00 | 0.00 | Joint and Several Liability Guarantee | From the date of signing the master contract for a single credit business until three years after the maturity date of the debt under that master contract | No | | Shanghai Aowei Daily Chemical Co., Ltd. | 100.00 | 11.28 | Joint and Several Liability Guarantee | Providing maximum guarantee for all master contracts signed between October 22, 2024, and October 22, 2027 | No | | Total Actual Guarantee Balance for Subsidiaries at Period-end | 550.00 | 141.63 | | | | - The total actual guarantee amount represents 6.42% of the company's net assets[137] Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (million yuan) | Unexpired Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 204.82 | 114.82 | 0 | - The company had no other significant contracts during the reporting period[140] 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[141] Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[142] Part VI Share Changes and Shareholder Information Share Changes During the reporting period, the company's restricted shares decreased by 17.40 million shares, while unrestricted shares increased by the same amount, primarily due to the lifting of restrictions on pre-IPO shares held by six shareholders Share Changes | Share Type | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in This Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 55,714,230 | 42.80% | -17,395,750 | 38,318,480 | 29.44% | | 3. Other Domestic Shares | 55,714,230 | 42.80% | -17,395,750 | 38,318,480 | 29.44% | | II. Unrestricted Shares | 74,464,030 | 57.20% | 17,395,750 | 91,859,780 | 97.39% | | 1. RMB Ordinary Shares | 74,464,030 | 57.20% | 17,395,750 | 91,859,780 | 97.39% | | III. Total Shares | 130,178,260.00 | 100.00% | 0 | 130,178,260 | 100.00% | - This share change primarily resulted from the lifting of restrictions on pre-IPO shares held by 6 shareholders, totaling 43.01 million shares released from restriction, of which 17.40 million shares became unrestricted[146][147] - Some unrestricted shares cannot be actually traded because the company's stock price is below the ex-dividend and ex-right issue price[150] - The lifting of restrictions on pre-IPO shares held by 6 joint actual controller shareholders was completed during the reporting period[148] 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[153] Shareholder Numbers and Shareholding Structure At the end of the reporting period, the company had 14,412 ordinary shareholders, with Jia Qizheng holding the largest stake at 16.78%, and several key shareholders acting in concert - At the end of the reporting period, the total number of ordinary shareholders was 14,412[153] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-end (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jia Qizheng | Domestic Natural Person | 16.78% | 21,840,000 | 16,380,000 | 5,460,000 | Not Applicable | 0 | | Hou Bingyang | Domestic Natural Person | 4.52% | 5,880,000 | 0 | 5,880,000 | Not Applicable | 0 | | Sun Jianxiong | Domestic Natural Person | 4.52% | 5,880,000 | 0 | 5,880,000 | Not Applicable | 0 | | Liu Maolin | Domestic Natural Person | 2.77% | 3,600,000 | 2,700,000 | 900,000 | Pledged | 700,000 | | Liu Guobiao | Domestic Natural Person | 2.65% | 3,444,000 | 3,444,000 | 0 | Not Applicable | 0 | | Ye Jiyong | Domestic Natural Person | 2.65% | 3,444,000 | 2,583,000 | 861,000 | Not Applicable | 0 | | Zheng Gang | Domestic Natural Person | 1.94% | 2,520,000 | 1,890,000 | 630,000 | Not Applicable | 0 | | Gong Xiaozhong | Domestic Natural Person | 1.93% | 2,512,000 | 0 | 2,512,000 | Not Applicable | 0 | | Ou Sha | Domestic Natural Person | 1.56% | 2,030,000 | 0 | 2,030,000 | Not Applicable | 0 | | Liu Xialing | Domestic Natural Person | 1.53% | 1,988,000 | 1,988,000 | 0 | Not Applicable | 0 | - Jia Qizheng, Sun Jianxiong, Hou Bingyang, Liu Guobiao, Ye Jiyong, and Zheng Gang are parties acting in concert; Zeng Xuedong and Gao Yan are a married couple[154] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[156] 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[157] - The company's actual controller remained unchanged during the reporting period[160] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[161] Part VII Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company had no bonds during the reporting period[163] Part VIII Financial Report Audit Report The company's 2025 semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[165] Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, providing a comprehensive view of its financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 2.95 billion yuan, total liabilities 740.22 million yuan, and total owners' equity 2.21 billion yuan, with significant components including cash, trading financial assets, accounts receivable, and fixed assets Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 2,947,641,596.84 | 2,863,914,472.60 | | Cash and Bank Balances | 563,700,406.98 | 662,540,491.85 | | Trading Financial Assets | 115,995,410.78 | 80,251,402.74 | | Accounts Receivable | 422,096,454.11 | 397,495,697.66 | | Inventories | 387,527,059.04 | 446,966,139.05 | | Fixed Assets | 817,137,804.68 | 734,015,916.43 | | Construction in Progress | 35,374,336.53 | 91,409,408.97 | | Other Non-current Assets | 227,372,828.48 | 96,764,853.06 | | Total Liabilities | 740,217,449.66 | 658,427,256.73 | | Notes Payable | 141,879,041.40 | 88,789,619.59 | | Accounts Payable | 330,253,437.82 | 356,401,939.01 | | Other Payables | 103,119,840.67 | 43,499,803.72 | | Total Owners' Equity | 2,207,424,147.18 | 2,205,487,215.87 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 1.72 billion yuan, total liabilities 130 million yuan, and total owners' equity 1.59 billion yuan, with significant components including cash, trading financial assets, and other receivables Parent Company Balance Sheet Key Data (June 30, 2025) | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 1,718,680,643.34 | 1,701,698,991.01 | | Cash and Bank Balances | 377,566,123.21 | 406,579,388.17 | | Trading Financial Assets | 115,995,410.78 | 80,251,402.74 | | Other Receivables | 777,973,254.45 | 835,172,316.11 | | Long-term Equity Investments | 296,085,808.85 | 290,478,583.67 | | Other Non-current Assets | 121,631,809.55 | 70,431,438.34 | | Total Liabilities | 129,658,752.42 | 133,226,608.53 | | Accounts Payable | 22,592,317.18 | 83,085,909.05 | | Other Payables | 99,961,535.01 | 35,177,394.56 | | Total Owners' Equity | 1,589,021,890.92 | 1,568,472,382.48 | Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was 2.21 billion yuan, a 31.43% increase, with net profit of 55.07 million yuan, up 5.70%, and basic earnings per share of 0.4230 yuan Consolidated Income Statement Key Data (2025 Semi-Annual) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 2,210,279,834.78 | 1,681,754,419.20 | | Total Operating Costs | 2,164,348,088.86 | 1,635,119,702.63 | | Operating Profit | 51,412,608.44 | 55,943,397.10 | | Total Profit | 51,691,000.55 | 55,543,169.10 | | Income Tax Expense | -3,378,773.40 | 3,443,896.70 | | Net Profit | 55,069,773.95 | 52,099,272.40 | | Net Profit Attributable to Parent Company Shareholders | 55,069,773.95 | 52,099,272.40 | | Basic Earnings Per Share | 0.4230 | 0.3800 | | Diluted Earnings Per Share | 0.4202 | 0.3800 | Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 312.02 million yuan, a 20.19% increase, with net profit of 76.63 million yuan, up 16.74%, driven by investment income and fair value changes Parent Company Income Statement Key Data (2025 Semi-Annual) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Operating Revenue | 312,019,392.38 | 259,609,063.87 | | Operating Cost | 300,629,176.41 | 245,400,470.54 | | Administrative Expenses | 16,782,415.83 | 24,388,098.05 | | Financial Expenses | -4,402,920.50 | -7,524,553.28 | | Investment Income | 77,898,406.89 | 70,658,714.88 | | Fair Value Change Gains | 924,008.04 | 375,997.27 | | Operating Profit | 76,754,694.68 | 67,207,729.74 | | Total Profit | 76,754,239.68 | 67,182,998.84 | | Income Tax Expense | 125,068.06 | 1,541,025.24 | | Net Profit | 76,629,171.62 | 65,641,973.60 | Consolidated Cash Flow Statement For the first half of 2025, net cash flow from operating activities decreased by 40.93% to 111.34 million yuan, while net cash flow from investing activities decreased by 14.31% to -159.85 million yuan, and net cash flow from financing activities significantly increased by 99.05% to -0.79 million yuan due to no cash dividend payments Consolidated Cash Flow Statement Key Data (2025 Semi-Annual) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 111,343,972.01 | 188,498,064.84 | | Net Cash Flow from Investing Activities | -159,853,835.23 | -139,847,721.86 | | Net Cash Flow from Financing Activities | -788,621.77 | -82,683,480.00 | | Net Increase in Cash and Cash Equivalents | -49,947,559.82 | -32,532,706.87 | | Period-end Cash and Cash Equivalents Balance | 538,992,735.32 | 435,805,571.39 | - The decrease in net cash flow from operating activities was primarily due to an increase in cash paid for goods purchased during the reporting period[54] - The significant increase in net cash flow from financing activities was primarily due to no cash dividends paid during the reporting period[54] Parent Company Cash Flow Statement For the first half of 2025, the parent company's net cash flow from operating activities significantly decreased to -4.55 million yuan, while net cash flow from investing activities saw a reduced outflow, and net cash flow from financing activities was 0 yuan Parent Company Cash Flow Statement Key Data (2025 Semi-Annual) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4,554,675.62 | 237,788,166.53 | | Net Cash Flow from Investing Activities | -28,346,144.62 | -174,495,851.99 | | Net Cash Flow from Financing Activities | 0.00 | -82,783,480.00 | | Net Increase in Cash and Cash Equivalents | -33,580,778.18 | -20,721,628.65 | | Period-end Cash and Cash Equivalents Balance | 356,143,563.83 | 237,816,088.38 | Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's consolidated owners' equity totaled 2.21 billion yuan, showing a slight increase from the beginning of the period, with comprehensive income of 55.07 million yuan and share-based payment expenses of 8.58 million yuan Consol