富淼科技(688350) - 2025 Q2 - 季度财报

Important Notice This section confirms report integrity, highlights operating risks, and clarifies the absence of profit distribution, special governance, or unauthorized related-party transactions Overview The board and management affirm the report's accuracy, detail operating risks, and confirm no profit distribution, special governance, or unauthorized related-party fund usage - The board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness[4][5] - Significant risk disclosures are detailed in Section III, 'Management Discussion and Analysis,' under 'IV. Risk Factors'[4] - No profit distribution or capital reserve capitalization plan is applicable for this reporting period[6] - There are no special corporate governance arrangements, non-operating fund occupations by controlling shareholders or related parties, or unauthorized external guarantees[7] - Forward-looking statements do not constitute a substantive commitment to investors, who are advised to be aware of investment risks[6] Section I Definitions This section provides definitions for key terms used throughout the report, ensuring clarity and accurate understanding of company-specific, financial, and industry-related terminology Overview This section defines key terms used in the report, covering company details, reporting period, currency, subsidiaries, and industry-specific concepts like water-based industries and membrane materials - Feymer Technology / (the) Company refers to Jiangsu Feymer Technology Co., Ltd[11] - The reporting period refers to January 1, 2025, to June 30, 2025[11] - Water-based industries include water treatment and water-borne industrial production processes, as well as industrial and civil products, covering pulp and paper, industrial and municipal wastewater treatment, mineral processing, and oil and gas extraction[11] - Membrane materials are selectively permeable materials, including microfiltration, ultrafiltration, nanofiltration, and reverse osmosis types[12] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, disclosure channels, stock information, and a comprehensive analysis of its key financial performance and indicators for the reporting period I. Company Basic Information This section outlines the company's fundamental details, including its Chinese and English names, legal representative, registered address, website, and email - Company's Chinese name: Jiangsu Feymer Technology Co., Ltd., abbreviation: Feymer Technology[14] - Company's legal representative: Xiong Yixin[14] - Company website: http://www.feymer.com, email: IR@feymer.com[14] II. Contact Persons and Information This section provides contact details for the Board Secretary and Securities Affairs Representative, facilitating investor communication and inquiries - Board Secretary: Xing Yan, contact number: 0512-58110625, email: IR@feymer.com[15] - Securities Affairs Representative: Gu Yuxuan, contact number: 0512-58110625, email: IR@feymer.com[15] III. Information Disclosure and Document Storage Location Changes This section specifies the company's official information disclosure channels and the location for semi-annual report storage, confirming no changes during the reporting period - Designated information disclosure newspaper: "Shanghai Securities News"[16] - Website for semi-annual report publication: www.sse.com.cn[16](index=16&type=chunk) - Location for company's semi-annual report storage: Company Board Secretary's Office[16] IV. Company Stock/Depositary Receipt Summary This section briefly describes the company's A-share listing on the Shanghai Stock Exchange STAR Market, including its stock ticker and code, and confirms the absence of depositary receipts - Company stock type: A-shares, listed on: Shanghai Stock Exchange STAR Market[17] - Stock abbreviation: Feymer Technology, stock code: 688350[17] - The company has no depositary receipts[18] VI. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the first half of 2025, explaining changes in revenue, net profit, cash flow, and asset growth, alongside non-recurring gains and losses 2025 Semi-Annual Key Accounting Data | Indicator | Current Period (Jan-Jun) (yuan) | Prior Period (yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 721,070,074.00 | 765,431,330.36 | -5.80 | | Total Profit | 22,390,726.02 | 24,076,475.35 | -7.00 | | Net Profit Attributable to Shareholders of Listed Company | 20,515,272.19 | 25,379,261.47 | -19.17 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 14,815,994.30 | 20,031,265.19 | -26.04 | | Net Cash Flow from Operating Activities | 41,329,137.58 | 76,231,918.56 | -45.78 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,427,161,418.09 | 1,406,574,687.42 | 1.46 | | Total Assets (Period-end) | 2,746,725,877.06 | 2,700,018,947.74 | 1.73 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.17 | 0.21 | -19.05% | | Diluted Earnings Per Share (yuan/share) | 0.17 | 0.21 | -19.05% | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | 0.12 | 0.17 | -29.41% | | Weighted Average Return on Net Assets (%) | 1.45 | 1.71 | Decrease of 0.26 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 1.05 | 1.35 | Decrease of 0.3 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 5.07 | 4.68 | Increase of 0.39 percentage points | - Operating revenue decreased by 5.80%, mainly due to reduced sales volume as the company actively divested low-margin chemical businesses to focus on high-value-added markets, though overseas chemical business saw significant growth[21] - Net profit attributable to shareholders of the listed company decreased by 19.17%, primarily impacted by lower revenue, convertible bond interest, and increased management and R&D expenses[22] - Net cash flow from operating activities decreased by 45.78%, mainly due to increased tax payments, reduced cash received from sales and services, decreased cash paid for goods and services, lower other operating-related cash receipts, reduced tax refunds, and decreased employee compensation payments[22] Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 12,130.76 | | Government grants recognized in current profit or loss | 4,327,699.46 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 1,822,436.70 | | Other non-operating income and expenses apart from the above | 396,912.15 | | Other gains and losses meeting the definition of non-recurring | 92,015.77 | | Less: Income tax impact | 920,087.73 | | Minority interest impact (after tax) | 31,829.22 | | Total | 5,699,277.89 | Section III Management Discussion and Analysis This section discusses the company's strategic transformation, operational performance, core competencies, risk factors, and key financial results for the reporting period, highlighting strategic adjustments and future outlook I. Description of the Company's Industry and Main Business Operations During the Reporting Period The company initiated a strategic transformation, restructuring its business into "Water-based Chemicals" and "Industrial Water Treatment" to enhance water resource efficiency and environmental sustainability 1.1 Business Overview and Strategic Transformation Feymer Technology initiated a strategic transformation focused on water resource efficiency and environmental sustainability, reorganizing into water-based chemicals and industrial water treatment segments - The company's strategic goal is "making every water footprint more meaningful," with core objectives to "improve water resource utilization efficiency" and "promote environmental sustainable development"[28] - Business segments are reorganized into "Water-based Chemicals Business" and "Industrial Water Treatment Business"[28][29] - The water-based chemicals business primarily targets customers using chemicals as raw materials, focusing on scaled production and product/application development[28] - The industrial water treatment business provides various water solutions for industrial clients within their facilities, with "full-process, one-stop" system solutions as its core competency[29] 1.2 Water-based Chemicals Business The global polyacrylamide (PAM) market is growing, with China as the largest producer and consumer, and the company maintains a leading position through supply chain integration and R&D, targeting high-end markets Global PAM Market Size Forecast | Year | Market Size (billion USD) | CAGR (2025-2031) | | :--- | :--- | :--- | | 2024 (Est.) | 80 | | | 2031 (Est.) | >110 | Approx. 5.2% | - China's PAM market size was approximately 24.48 billion yuan in 2023, accounting for 35% to 40% of the global market[31] - In the first half of 2025, China's PAM output is expected to exceed 1.55 million tons, with demand approaching 1.35 million tons, representing increases of approximately 3.3% and 3.5%, respectively[31] - PAM is primarily applied in: water treatment (approx. 45%), oil extraction (approx. 30% to 40%), and pulp and paper (approx. 12% to 13%)[31] - The company maintains a leading position in the chemical business through supply chain integration, scaled production, and technological R&D advantages, focusing on high molecular weight and functional PAM product development to accelerate breakthroughs in high-end market technical barriers[33] 1.3 Industrial Water Treatment Business The global industrial water treatment market is expanding, with the company offering integrated "one-stop" solutions, including engineering design, membrane technology, and smart O&M, to become a leading service provider in China Global Industrial Water Treatment Market Size Forecast | Year | Market Size (billion USD) | CAGR (2025-2030) | | :--- | :--- | :--- | | 2024 (Est.) | 350 | | | 2030 (Est.) | >480 | 5.5%~6.0% | - China's industrial water treatment market size was approximately 53 billion yuan in 2024, with an expected year-on-year growth of 5.5% to 6.5% in 2025, potentially reaching approximately 56 billion yuan[35] - The operation and maintenance service market accounts for 25% to 30% of the overall market and shows a rapid expansion trend[35] - The company's water treatment business has formed a "one-stop" integrated solution with significant technical depth and service advantages by integrating engineering design, membrane technology, specialized water treatment chemicals, and intelligent operation and maintenance services[36] - In the future, the company will continue to deepen its integrated capabilities in "system design + chemicals + membrane products + digital O&M" and prioritize market布局 in key regions such as the Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu-Chongqing Economic Circle[37] II. Discussion and Analysis of Operations The company optimized its business portfolio, focusing on high-value markets, which led to improved gross profit margin, a return to profitability, and stable cash flow, with a new production base nearing operation - The company actively optimized its business portfolio, decisively avoiding inefficient "involutionary" price competition, and focused resources on expanding into emerging markets and upgrading high-end product services for core strategic customers[38] - During the reporting period, the company achieved operating revenue of 721 million yuan, a year-on-year decrease of 5.80%, primarily due to the strategic decision to actively divest low-margin businesses and focus on high-value-added markets[39] - The company's sales gross profit margin increased to 15.27%, a year-on-year increase of 0.84 percentage points and a quarter-on-quarter increase of 3.11 percentage points, benefiting from continuous business portfolio optimization and a higher proportion of high-value-added products[40] - The company's operating net profit was 19.52 million yuan, a year-on-year decrease of 10.14%, but achieved a quarter-on-quarter increase of 52.31 million yuan, returning to profitability[41] - Period-end cash and cash equivalents balance was 487 million yuan, a year-on-year increase of 63.59 million yuan, and net cash flow from operating activities was 41.33 million yuan, indicating healthy operation of the company's main business[42] - Construction of the Anqing new production base's first phase and installation and commissioning of production equipment are largely complete, with subsequent testing and trial production of related products to commence[43] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness is driven by a "dual-engine" business structure, modular R&D, and an international leadership team, despite recent changes in ownership and management, which are expected to enhance long-term growth and profitability - The company's "dual-engine" growth model (chemicals business and water treatment business) achieves revenue diversification and effective risk dispersion, providing stable growth momentum and strategic flexibility[45] - The modular R&D system focuses on intelligent production, green processes, special-purpose PAM, and specialized membrane technology, providing strong technical support for the "dual-engine" model[46] - The newly introduced international leadership team possesses global vision and deep industry experience, driving business model innovation and penetration into high-end markets[47] - Significant changes in controlling shareholders, the board of directors, and senior management during the reporting period brought potential positive impacts such as strategic vision and management optimization, enhanced market competitiveness, and strengthened sustainable development and brand value[51] - The company has implemented countermeasures including strengthening management team synergy and strategic execution, deepening technological innovation and R&D investment, optimizing supply chain and cost management, accelerating market diversification and international expansion, and reinforcing brand and sustainable development commitments to consolidate core competitiveness[53][54] (I) Core Competitiveness Analysis The company's core competitiveness stems from its "dual-engine" business model, modular R&D, international leadership, and distinct advantages in water-based chemicals and industrial water treatment - The company's "dual-engine" growth model (chemicals business and water treatment business) achieves revenue diversification and effective risk dispersion, providing stable growth momentum and strategic flexibility[45] - The modular R&D system comprises three modules: advanced production technology development, high-end product development, and basic research and knowledge transfer, focusing on intelligent production, green processes, special-purpose PAM, and specialized membrane technology[46] - The international leadership team possesses extensive senior management experience in multinational corporations and a global perspective, enhancing global strategic execution and accelerating penetration into high-end and international markets[47] - The core competitiveness of the water-based chemicals business lies in its supply chain integration and scaled production advantages, diversified market layout and global expansion, and technology innovation driving high-end transformation[48] - The core competitiveness of the industrial water treatment business lies in providing "one-stop" integrated solutions, high-end membrane technology and intelligent operation and maintenance capabilities, and resource reorganization and synergy driving growth[49] (II) Events During the Reporting Period That Severely Affected the Company's Core Competitiveness, Impact Analysis, and Countermeasures Significant changes in controlling shareholders and management during the reporting period brought potential strategic benefits and risks, which the company addresses through enhanced collaboration, R&D, supply chain optimization, and international expansion - During the reporting period, the company experienced significant changes in its controlling shareholder, board of directors, and senior management team, profoundly impacting its core competitiveness[50] - Potential positive impacts include optimized strategic vision and management, enhanced market competitiveness (gross profit margin increased to 15.27%, net profit returned to profitability), and strengthened sustainable development and brand value[51] - Potential risks and challenges include short-term uncertainties during the management transition period, a technological gap with international giants in high-end markets, price competition in low-end markets, and raw material price fluctuations and global supply chain uncertainties[52] - Countermeasures include strengthening management team synergy and strategic execution, deepening technological innovation and R&D investment, optimizing supply chain and cost management, accelerating market diversification and international expansion, and reinforcing brand and sustainable development commitments[53][54] - Future outlook: Under the "dual-engine" model, the company possesses high growth potential (China's industrial water treatment market expected to grow by 6.5%, global PAM market CAGR of 5.2%), enhanced profitability, risk diversification, and strategic value in leading sustainable development[55] (III) Core Technologies and R&D Progress The company strengthened its "dual-engine" core technology system, adding three new core technologies, increasing R&D investment, achieving significant progress in ongoing projects, and expanding its patent portfolio - During the reporting period, the company added three new core technologies: "Membrane-based Water Treatment Engineering Design Technology," "Chemical Manufacturing Technology for Circulating Water Treatment," and "Intelligent Water Treatment Operation and Maintenance Technology," increasing the total number of core technologies to 25[56] - In addition to chemical and membrane product development, the company initiated new product development plans in high-end application fields, such as ultra-low residual monomer polyquaternium products in daily chemical applications, achieving preliminary results[62] - During the reporting period, the company obtained 8 new authorized patents (3 invention patents, 2 utility model patents), accumulating a total of 298 authorized patents (122 invention patents), and participated in the formulation and revision of 36 national/industry standards[63][64][65] R&D Investment Situation | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 36,559,941.09 | 35,820,182.72 | 2.07 | | Total R&D Investment | 36,559,941.09 | 35,820,182.72 | 2.07 | | Total R&D Investment as Percentage of Operating Revenue (%) | 5.07 | 4.68 | Increase of 0.39 percentage points | - Research projects such as "Process Optimization of Emulsion Retention and Drainage Aids" and "Development and Application of Compound Sludge Deep Dewatering Agents" achieved breakthrough progress, with products meeting market requirements, and preliminary results were also obtained in circulating water treatment O&M technology[70] R&D Personnel Situation | Indicator | Current Period | Prior Period | | :--- | :--- | :--- | | Number of company R&D personnel (persons) | 99 | 131 | | R&D personnel as percentage of total company headcount (%) | 11.69% | 13.60% | | Total R&D personnel compensation (yuan) | 12,901,264.28 | 15,736,311.92 | | Average R&D personnel compensation (yuan) | 130,315.80 | 120,124.52 | IV. Risk Factors The company faces diverse risks, including technological obsolescence, personnel loss, and R&D failure; operational risks like safety, environmental compliance, and new business expansion; industry risks such as policy changes and market competition; and macroeconomic risks - Core competitiveness risks include risks of technological updates and advancements, loss of core technical personnel, and R&D failure[73] - Operating risks include safety production risks, environmental risks, new business expansion risks, import/export business and exchange rate fluctuation risks, and risks associated with the implementation of fundraising projects and new construction projects (capacity digestion and new depreciation)[74][75][76] - Industry risks include risks of changes in industry regulatory policies, supply and price fluctuations of major raw materials, intensified market competition, and accounts receivable and bad debt risks[77][78][79] - Macro-environmental risks include risks of supply chain disruptions due to frequent extreme weather events and risks of company performance decline due to macroeconomic and downstream industry fluctuations[80][81] V. Main Operating Conditions During the Reporting Period The company reported a decrease in revenue and net profit but an increase in total assets and net assets, with detailed analysis of financial statement changes, asset-liability status, investments, and subsidiary operations - During the reporting period, the company achieved operating revenue of 721 million yuan, a 5.8% decrease year-on-year; net profit attributable to shareholders of the listed company was 20.52 million yuan, a 19.17% decrease year-on-year[82] - As of the end of the reporting period, the company's total assets were 2.75 billion yuan, a 1.73% increase year-on-year; net assets attributable to shareholders of the listed company were 1.43 billion yuan, a 1.46% increase year-on-year[82] Financial Statement Related Item Changes | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 721,070,074.00 | 765,431,330.36 | -5.80 | | Operating Cost | 610,994,020.48 | 655,021,413.85 | -6.72 | | Selling Expenses | 23,157,896.46 | 24,944,564.12 | -7.16 | | Administrative Expenses | 27,114,508.00 | 26,508,160.32 | 2.29 | | Financial Expenses | 5,685,069.08 | 748,763.12 | Not applicable | | R&D Expenses | 36,559,941.09 | 35,820,182.72 | 2.07 | | Net Cash Flow from Operating Activities | 41,329,137.58 | 76,231,918.56 | -45.78 | | Net Cash Flow from Investing Activities | -101,874,372.62 | 29,180,164.22 | Not applicable | | Net Cash Flow from Financing Activities | 72,830,178.61 | -5,244,143.34 | Not applicable | - The decrease in operating revenue was mainly due to reduced sales of chemicals and externally supplied steam and hydrogen, as the company actively divested low-margin chemical businesses[84] - The change in financial expenses was primarily due to the increased expensed interest on convertible bonds after the fundraising project was capitalized, combined with reduced interest income as the balance of raised funds decreased[84] - Total restricted assets at period-end amounted to 122.72 million yuan, primarily used for loan collateral[89] Main Operating Conditions of Key Holding and Invested Companies (Unit: ten thousand yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Feymer Technology (Rudong) Co., Ltd. | Subsidiary | Production and sales of acrylamide | 6,500.00 | 16,425.05 | 13,864.60 | 11,200.84 | 56.56 | 73.45 | | Suzhou Feymer Membrane Technology Co., Ltd. | Subsidiary | R&D, production, and sales of membrane products | 12,000.00 | 20,535.17 | -4,879.59 | 1,667.55 | -1,156.24 | -1,156.42 | | Suzhou Jinqu Environmental Protection Technology Co., Ltd. | Subsidiary | Deep wastewater treatment engineering and operation | 3,000.00 | 6,446.58 | 2,202.82 | 352.90 | -90.47 | -34.42 | | Suzhou Jingchang Technology Development Co., Ltd. | Subsidiary | Equity investment, enterprise management consulting, etc. | 9,500.00 | 19,402.69 | 14,677.05 | 13,618.61 | -255.69 | -220.12 | | Feymer Technology (Anhui) Co., Ltd. | Subsidiary | Manufacturing and sales of synthetic materials, etc. | 20,000.00 | 57,340.91 | 16,162.68 | - | -123.53 | -123.51 | Section IV Corporate Governance, Environment, and Society This section details significant changes in the company's board, supervisory board, and senior management, clarifies profit distribution plans, outlines employee incentive programs, and provides comprehensive environmental information for its key facilities I. Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel The company underwent significant changes in its board, supervisory board, and senior management during the reporting period, with new members elected and appointed to ensure stable governance and operations - On May 7, 2025, the company convened its 2024 Annual General Meeting, electing six non-independent directors and three independent directors to form the Sixth Board of Directors; two non-employee representative supervisors were elected to the Sixth Supervisory Board, which, together with one employee representative supervisor elected at the Third Employee Representative Congress on April 27, 2025, formed the Sixth Supervisory Board[100] - On the same day, the company held the First Meeting of the Sixth Board of Directors and the First Meeting of the Sixth Supervisory Board, electing the Chairman, members of various special committees, and the Chairman of the Supervisory Board, and appointing senior management personnel and the Securities Affairs Representative[100] Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change Type | | :--- | :--- | :--- | | Qian Xin | Chairman | Election | | Liu Changfeng | Director | Election | | Yang Kai | Director | Election | | Zhang Liuyu | Director | Election | | Han Jiangwen | Director | Election | | Xiong Yixin | Director | Election | | Wang Jing | Independent Director | Election | | Hang Xuefang | Independent Director | Election | | Qian Yizhang | Chairman of Supervisory Board | Election | | Ai Changting | Supervisor | Election | II. Profit Distribution or Capital Reserve Capitalization Plan The company has no proposed profit distribution or capital reserve capitalization plan for this semi-annual reporting period, meaning no dividends or bonus shares will be issued - The proposed profit distribution plan and capital reserve capitalization plan for this semi-annual period is "No"[102] - The number of bonus shares, cash dividends, and shares converted from capital reserves per 10 shares is 0[102] III. Information on the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact The company's 2022 employee stock ownership plan progressed, with partial allocation of reserved shares and partial unlocking of the first vesting period, aiming to incentivize employees and foster long-term development - The company's 2022 employee stock ownership plan completed the transfer of 2,529,000 shares to the "Jiangsu Feymer Technology Co., Ltd. — 2022 Employee Stock Ownership Plan" dedicated securities account on January 9, 2023[106] - On January 26, 2024, the company completed the transfer of 768,000 reserved shares to the employee stock ownership plan's dedicated securities account[107] - The first vesting period conditions for the 2022 employee stock ownership plan have been partially met, with a company-level vesting ratio of 25.35%, corresponding to 629,688 shares[107] IV. Environmental Information of Listed Companies and Their Main Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information The company and its four main subsidiaries are on the environmental disclosure list, detailing their pollutant emissions, pollution control facilities, environmental assessments, emergency plans, and monitoring, alongside efforts to reduce carbon emissions - The company and its four subsidiaries, Rudong Factory, Feymer Membrane Technology, and Jiangsu Changjiu Factory, are included in the list of enterprises required to disclose environmental information[109] - The Phoenix Factory achieved zero wastewater discharge through a wastewater treatment plant and zero-discharge upgrade project for reclaimed water reuse; its main pollutants are atmospheric pollutants and hazardous waste, all discharged in compliance with standards[110][111] - The Membrane Factory's pollutant emissions primarily consist of atmospheric pollutants, water pollutants, and hazardous waste; exhaust gas is organized and discharged after multi-stage treatment, and wastewater is pre-treated and then connected to the Phoenix Factory's wastewater treatment plant for zero discharge[112] - Pollutant emissions from both the Rudong Factory and Jiangsu Changjiu Factory comply with national or local regulations, and both have installed online monitoring equipment[113][114][117] - All of the company's construction projects strictly adhere to the "Environmental Impact Assessment Law" and the "Three Simultaneities" system, obtaining EIA approvals and environmental acceptance[118] - The company has prepared and filed its "Emergency Response Plan for Environmental Incidents" and formulated an environmental self-monitoring plan[119][120] - During the reporting period, the Phoenix Factory reduced carbon dioxide emissions by 22.3 tons through measures such as replacing claw vacuum pumps and energy-saving transformer upgrades[122] Section V Significant Matters This section covers the company's fulfillment of various commitments, confirms the absence of unauthorized fund occupation or illegal guarantees, reports no major lawsuits, details related-party transactions, and outlines significant contracts and fundraising progress I. Fulfillment of Commitments This section details the timely and strict fulfillment of various commitments by the company, its controlling shareholders, and related parties, covering share lock-ups, competition avoidance, related-party transactions, and prospectus accuracy - Controlling shareholder Yongzhuo Holdings committed not to directly or indirectly transfer the acquired listed company shares within 18 months from the completion date of the share transfer[128] - Feixiang Chemical committed to maintaining its shareholding in Feymer Technology at no less than 5% of the total share capital for three years after the completion of this share transfer[128] - Yongzhuo Holdings and its controlling shareholders and actual controllers committed to avoiding horizontal competition and regulating related-party transactions, with these commitments being long-term effective[129][130] - The company and relevant parties committed that the prospectus and its summary contain no false records, misleading statements, or major omissions, and they will bear compensation or indemnification liabilities in accordance with the law[151][152][153] - The company committed that its profit distribution policy will adhere to principles of continuity and stability, with annual cash dividends not less than 10% of the distributable profit for the year[154] - All commitments were fulfilled promptly and strictly during the reporting period, with no instances of uncompleted or untimely fulfillment[125] II. Non-Operating Occupation of Funds by Controlling Shareholders and Other Related Parties During the Reporting Period The company confirms that there was no non-operating occupation of funds by controlling shareholders or other related parties during the reporting period - During the reporting period, the company had no non-operating occupation of funds by controlling shareholders or other related parties[163] III. Illegal Guarantees The company confirms that there were no instances of illegal external guarantees provided without proper decision-making procedures during the reporting period - During the reporting period, the company had no instances of providing external guarantees in violation of prescribed decision-making procedures[163] VII. Major Litigation and Arbitration Matters The company confirms that there were no major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during this reporting period[164] X. Significant Related-Party Transactions This section discloses the company's routine related-party transactions, including procurement and sales of goods/services with various affiliates, all conducted within approved transaction limits - The company's 34th meeting of the Fifth Board of Directors approved the "Proposal on Estimating the Company's Daily Related-Party Transactions for 2025"; details of related-party transactions during the reporting period are provided in Section VIII, Financial Report (XIV) 5 "Related-Party Transactions"[164] Related-Party Transactions for Purchase of Goods/Acceptance of Services (Unit: ten thousand yuan) | Related Party | Related Transaction Content | Amount Incurred in Current Period | Approved Transaction Limit (if applicable) | Exceeded Transaction Limit (if applicable) | | :--- | :--- | :--- | :--- | :--- | | Zhangjiagang Kaipu Property Service Co., Ltd. | Property management related services | 2.81 | | | | Jiangsu Feixiang Chemical Co., Ltd. | Centralized area management fees | 6.29 | 325 | No | | Zhangjiagang Feixiang Environmental Protection Technology Co., Ltd. | Solid waste treatment and other service fees | 42.79 | | | | Kailing Chemical (Zhangjiagang) Co., Ltd. | Other material purchases | 25.34 | 30.00 | No | | Zhangjiagang Feixiang Environmental Protection Technology Co., Ltd. | Steam | 88.93 | 450.00 | No | | Feixiang Japan Co., Ltd. | Consulting service fees | 16.52 | 30.00 | No | | Zhangjiagang Phoenix Town Feixiang Land Share Professional Cooperative | Other material purchases | | 5.00 | No | Related-Party Transactions for Sale of Goods/Provision of Services (Unit: ten thousand yuan) | Related Party | Related Transaction Content | Amount Incurred in Current Period | | :--- | :--- | :--- | | Jiangsu Feixiang Chemical Co., Ltd. | Energy supply | 0.22 | | Zhangjiagang Feixiang Environmental Protection Technology Co., Ltd. | Energy supply | 102.27 | | Beinuo (Zhangjiagang) New Material Co., Ltd. | Energy supply | 32.55 | | Yongzhuo Holdings Co., Ltd. and other related enterprises controlled by its actual controllers Wu Yaofang, Wu Huifang, Wu Huiying | Water-soluble polymers | 67.63 | XI. Significant Contracts and Their Fulfillment This section primarily discloses the company's significant guarantee for its wholly-owned subsidiary, Feymer Technology (Anhui) Co., Ltd., for a project loan, representing 21.53% of the company's net assets - The company provides joint liability guarantee for its wholly-owned subsidiary, Feymer Technology (Anhui) Co., Ltd., for project loan credit from banks[169] Company and its Subsidiaries' Guarantees for Subsidiaries (Unit: yuan) | Guarantor | Guaranteed Party | Guarantee Amount | Guarantee Start Date | Guarantee End Date | Guarantee Type | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Company Headquarters | Anhui Feymer | 321,599,732.27 | January 31, 2024 | January 31, 2034 | Joint liability guarantee | No | - As of the end of the reporting period, the total guarantee balance for subsidiaries was 321.60 million yuan, accounting for 21.53% of the company's net assets[168] XII. Explanation of Progress in the Use of Raised Funds This section details the overall progress and specific allocation of the company's raised funds, including initial public offering and convertible bond proceeds, with a cumulative investment progress of 76.76% and effective cash management Overall Use of Raised Funds (Unit: ten thousand yuan) | Source of Raised Funds | Net Raised Funds | Total Committed Investment in Prospectus or Offering Document | Cumulative Raised Funds Invested as of Period-end | Cumulative Investment Progress as of Period-end (%) | Amount Invested in Current Year | | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 36,692.32 | 60,000.00 | 37,858.92 | 103.18 | 1,114.10 | | Issuance of Convertible Bonds | 44,035.92 | 45,000.00 | 24,106.91 | 54.74 | 377.33 | | Total | 80,728.24 | 105,000.00 | 61,965.83 | 76.76 | 1,491.43 | - The company has used raised funds to replace self-raised funds previously invested in fundraising projects and for paid issuance expenses, including funds from the initial public offering and convertible corporate bonds[179] - The company used a maximum of 86 million yuan of idle raised funds to temporarily supplement working capital, with a term of 12 months from the date of board approval[180] - The company used a maximum of 130 million yuan of temporarily idle raised funds for cash management, investing in highly secure and liquid investment products[183] Section VI Share Changes and Shareholder Information This section details the minor changes in the company's share capital due to convertible bond conversions, provides an overview of its shareholder structure, including the top ten shareholders, and discloses share lending activities I. Share Capital Changes The company's share capital experienced a minor increase of 108 shares due to the conversion of "Feymer Convertible Bonds," increasing the total number of unrestricted shares Share Change Table (Unit: shares) | | Quantity Before This Change | Proportion Before This Change (%) | Increase/Decrease in This Change (+,-) | Quantity After This Change | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0 | 0 | 0 | 0 | | II. Unrestricted Shares | 122,150,099 | 100 | +108 | 122,150,207 | 100 | | 1. RMB Ordinary Shares | 122,150,099 | 100 | +108 | 122,150,207 | 100 | | III. Total Shares | 122,150,099 | 100 | +108 | 122,150,207 | 100 | - The company's convertible corporate bonds, "Feymer Convertible Bonds," issued to unspecified investors, entered the conversion period on June 21, 2023, with 108 shares converted during this reporting period[188] - As a result, the number of the company's unrestricted shares increased from 122,150,099 to 122,150,207[188] II. Shareholder Information As of the reporting period end, the company had 4,500 common shareholders, with Yongzhuo Holdings Co., Ltd. as the largest shareholder, and details on share lending by certain shareholders - Total number of common shareholders at the end of the reporting period: 4,500 households[190] Top Ten Shareholders' Shareholding (Excluding Shares Lent via Securities Lending) | Shareholder Name | Increase/Decrease During Reporting Period | Shares Held at Period-end (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Yongzhuo Holdings Co., Ltd. | +36,620,000 | 36,620,000 | 29.98 | Domestic Non-State-Owned Legal Person | | Jiangsu Feixiang Chemical Co., Ltd. | -36,620,000 | 22,818,310 | 18.68 | Domestic Non-State-Owned Legal Person | | Jiangsu Feymer Technology Co., Ltd. – 2022 Employee Stock Ownership Plan | 0 | 3,297,000 | 2.70 | Other | | Beijing Ruishibang Fine Chemical Technology Co., Ltd. | -174,239 | 2,812,483 | 2.30 | Domestic Non-State-Owned Legal Person | | Qian Wensheng | 0 | 2,468,548 | 2.02 | Domestic Natural Person | | Zhangjiagang Yinuo Juhuiyuan Investment Enterprise (Limited Partnership) | 0 | 1,854,534 | 1.52 | Other | | Jiang Haidong | -888,100 | 1,460,591 | 1.20 | Domestic Natural Person | | Zhang Haiyun | -315,200 | 1,400,000 | 1.15 | Domestic Natural Person | | Yu Yuming | 0 | 964,360 | 0.79 | Domestic Natural Person | | Sun Liang | +960,500 | 960,500 | 0.79 | Domestic Natural Person | Shareholding of Shareholders Holding 5% or More, Top Ten Shareholders, and Top Ten Unrestricted Shareholders Participating in Securities Lending (Unit: shares) | Shareholder Name (Full Name) | Total Shares Held in Ordinary and Credit Accounts at Period Start | Total Shares Lent via Securities Lending and Not Yet Returned at Period Start | Total Shares Held in Ordinary and Credit Accounts at Period End | Total Shares Lent via Securities Lending and Not Yet Returned at Period End | | :--- | :--- | :--- | :--- | :--- | | Beijing Ruishibang Fine Chemical Technology Co., Ltd. | 2,986,722 | 81,000 | 2,812,483 | 81,000 | IV. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder changed to Yongzhuo Holdings Co., Ltd., with Wu Yaofang, Wu Huifang, and Wu Huiying becoming the actual controllers, effective April 15, 2025 - New controlling shareholder name: Yongzhuo Holdings Co., Ltd[198] - New actual controller names: Wu Yaofang, Wu Huifang, Wu Huiying[198] - Change date: April 15, 2025[198] - Information disclosure website query index and date: Shanghai Stock Exchange official website (www.sse.com.cn), Announcement No.: 2025-031[198] Section VII Bond-Related Information This section provides a comprehensive overview of the company's "Feymer Convertible Bonds," including issuance details, holder information, conversion status, and credit ratings, confirming a stable financial position II. Convertible Corporate Bonds This section details the "Feymer Convertible Bonds" issuance, holder information, conversion status (99.9991% unconverted), adjusted conversion price, and stable A-rated credit profile, indicating no repayment risk - On December 15, 2022, the company issued 4.5 million convertible corporate bonds to unspecified investors, raising a total of 450 million yuan, with a term of six years[201] - "Feymer Convertible Bonds" became convertible into the company's shares starting from June 21, 2023, with the conversion period extending until December 14, 2028[201] Convertible Bond Holders and Guarantor Information for the Reporting Period | Convertible Corporate Bond Name | Feymer Convertible Bonds | | :--- | :--- | | Number of convertible bond holders at period-end | 4,569 | | Guarantor of the company's convertible bonds | None | Convertible Bond Changes During the Reporting Period (Unit: yuan) | Convertible Corporate Bond Name | Before This Change | Conversion | After This Change | | :--- | :--- | :--- | :--- | | Feymer Convertible Bonds | 449,998,000 | 2,000 | 449,996,000 | Cumulative Convertible Bond Conversion During the Reporting Period | Convertible Corporate Bond Name | Feymer Convertible Bonds | | :--- | :--- | | Conversion amount during reporting period (yuan) | 2,000 | | Number of shares converted during reporting period (shares) | 108 | | Cumulative number of shares converted (shares) | 207 | | Cumulative shares converted as percentage of total shares issued before conversion (%) | 0.0001 | | Unconverted amount (yuan) | 449,996,000 | | Unconverted convertible bonds as percentage of total issued convertible bonds (%) | 99.9991 | - The conversion price has been adjusted multiple times, with the latest conversion price being 18.43 yuan/share[207] - The company's main credit rating was adjusted to A, with a stable outlook, and the credit rating of "Feymer Convertible Bonds" was adjusted to A[209] - As of June 30, 2025, the company's asset-liability ratio was 45.62%, operations were normal, and the asset structure was relatively reasonable, with no repayment risk[208][209] Section VIII Financial Report This section presents the company's consolidated and parent company financial statements for the first half of 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies and financial items II. Financial Statements This section presents the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity III. Company Basic Information Jiangsu Feymer Technology Co., Ltd., established in 2010 and listed in 2021, specializes in polyacrylamide, water treatment membranes, and energy supply, operating in environmental protection and chemical manufacturing - Jiangsu Feymer Technology Co., Ltd. was established on December 16, 2010, and its shares were listed on the Shanghai Stock Exchange STAR Market on January 28, 2021[247] - As of June 30, 2025, the company's registered capital was 122,150,207.00 yuan, and its total share capital was 122,150,207 shares[247] - The company belongs to the "Ecological Protection and Environmental Governance Industry" and "Chemical Raw Materials and Chemical Products Manufacturing Industry"[248] - Its main business activities include: production, processing, and sales of polyacrylamide monomers and polymers; sales of water treatment membrane products, membrane separation equipment, and environmental protection equipment; production and sales of steam and electricity; industrial wastewater treatment; production, processing, and sales of hydrogen, etc[248] IV. Basis for Preparation of Financial Statements The financial statements are prepared on a going concern basis, adhering to enterprise accounting standards, and accurately reflect the company's financial position, operating results, and cash flows, with no significant going concern uncertainties - The company's financial statements are prepared on a going concern basis[249] - The financial statements prepared by the company comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows, among other relevant information[252] - The company has no matters or circumstances that would cause significant doubt about its ability to continue as a going concern for the 12 months from the end of the reporting period[251] V. Significant Accounting Policies and Accounting Estimates This section details the company's key accounting policies and estimates, covering financial instrument classification, impairment provisions for receivables and inventory, fixed asset depreciation, intangible asset amortization, revenue recognition, and government grants - The company classifies financial assets into financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss, based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets[261] - The company accrues bad debt provisions for financial instruments such as notes receivable, accounts receivable, and contract assets based on expected credit losses[270][274][277][282][290] - Inventories are measured at the lower of cost and net realizable value, with inventory impairment provisions accrued at period-end for individual inventory items[287] - Fixed assets are depreciated using the straight-line method, with depreciation periods of 10-30 years for buildings and structures, and 5-10 years for machinery and equipment[301] - Expenditures for internal research and development projects are distinguished between research phase expenditures and development phase expenditures, with development phase expenditures recognized as intangible assets when specific conditions are met simultaneously[309][310] - The company uses the transfer of control as the criterion for revenue recognition, recognizing revenue when performance obligations in the contract are fulfilled, i.e., when the customer obtains control of the relevant goods[328] VI. Taxation This section outlines the company's main tax categories and rates, including VAT and corporate income tax, noting that the company and certain subsidiaries benefit from a 15% high-tech enterprise income tax rate and VAT refunds for specific businesses Main Tax Categories and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value added during sales of goods or provision of taxable services | Levied at rates such as 3%, 5%, 6%, 9%, 13%. Export goods enjoy a 13% tax refund rate | | Property Tax | For value-based assessment, levied at 1.2% of the original value of the property after a 30% deduction; for rent-based assessment, levied at 12% of rental income | 1.2%, 12% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Enterprise Income Tax | Taxable income | 25%, 15% | - The company, Feymer Technology (Rudong) Co., Ltd., Suzhou Feymer Membrane Technology Co., Ltd., and Jiangsu Changjiu Nongke Chemical Co., Ltd. have all been recognized as high-tech enterprises and enjoy a 15% preferential enterprise income tax rate[347] - The company and its subsidiary, Suzhou Jinqu Environmental Protection Technology Co., Ltd., meet the requirements for immediate refund of VAT on comprehensive resource utilization products and services, enjoying immediate VAT refunds for relevant businesses[348] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including cash, financial assets, receivables, inventory, fixed assets, and payables, offering specific data and explanations for changes and balances Cash and Bank Balances (Unit: yuan) | Item | Period-end Balance | Period-start Balance | | :--- | :--- | :--- | | Bank Deposits | 486,780,324.83 | 472,961,074.97 | | Other Cash and Bank Balances | 172.10 | 298,198.56 | | Total | 486,780,496.93 | 473,259,278.53 | - The company's trading financial assets consist of structured deposits and bank wealth management products, with a period-end balance of 60.12 million yuan[352] - The period-end balance of notes receivable was 135.74 million yuan, including 132.40 million yuan in bank acceptance notes and 3.34 million yuan in commercial acceptance notes[354] - The period-end book value of accounts receivable was 329.69 million yuan, with a bad debt provision ratio of 5.69%[366][368] - The period-end book value of inventory was 177.54 million yuan, with total inventory impairment provisions and contract performance cost impairment provisions amounting to 14.83 million yuan[397] - The period-end book value of fixed assets was 730.26 million yuan, and the book value of construction in progress was 474.19 million yuan[414][423] - The period-end balance of bonds payable was 408.92 million yuan, primarily convertible corporate bonds[481] - The period-end total equity attributable to parent company owners was 1.43 billion yuan, with undistributed profits of 407.28 million yuan[214][500] VIII. Research and Development Expenses This section details the company's R&D expenditures for the reporting period, totaling 36.56 million yuan, entirely expensed, with an increase compared to the previous year, primarily comprising staff costs, direct inputs, and depreciation R&D Expenses by Nature of Expense (Unit: yuan) | Item | Amount Incurred in Current Period | Amount Incurred in Prior Period | | :--- | :--- | :--- | | Employee Compensation | 11,552,559.24 | 16,376,121.90 | | Direct Input | 18,220,393.47 | 16,197,278.95 | | Depreciation and Amortization | 5,269,875.87 | 2,284,594.72 | | Equity Incentive Expenses | | -2,058,444.15 | | Other | 1,517,112.51 | 3,020,631.30 | | Total | 36,559,941.09 | 35,820,182.72 | | Of which: Expensed R&D Expenditures | 36,559,941.09 | 35,820,182.72 | | Capitalized R&D Expenditures | 0 | 0 | - Total R&D investment for the current period increased by 2.07% compared to the prior period[537] IX. Changes in Consolidation Scope The company confirms no changes in its consolidation scope during the reporting period, with no non-same-control or same-control business combinations, reverse acquisitions, or loss of control over subsidiaries - During the reporting period, the company had no non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries leading to loss of control[538] - During the reporting period, the company had no changes in consolidation scope due to other reasons[539] X. Interests in Other Entities This section details the company's equity interests in its subsidiaries, listing their operational locations, registered capital, business nature, and 100% direct or indirect ownership, with no significant non-wholly-owned subsidiaries Composition of the Enterprise Group (Unit: ten thousand yuan) | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding (%) Direct | Shareholding (%) Indirect | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Rudong Factory | Nantong | 6,500.00 | Manufacturing | 100 | - | Acquisition | | Feymer Membrane Technology | Zhangjiagang | 12,000.00 | Manufacturing | 100 | - | Direct establishment | | Jinqu Environmental Protection | Zhangjiagang | 3,000.00 | Ecological protection and environmental governance | 100 | - | Direct establishment | | Suzhou Jingchang | Zhangjiagang | 9,500.00 | Software and information technology services | 100 | - | Acquisition | | Jiangxi Changjiu | Nanchang, Jiangxi | 3,000.00 | Manufacturing | - | 54.6067 | Acquisition | | Jiangsu Changjiu | Nantong | 8,000.00 | Manufacturing | - | 54.6067 | Acquisition | | Nanchang Liangjiang | Nanchang, Jiangxi | 100.00 | Wholesale | - | 27.85 | Acquisition | | Anhui Feymer | Anqing, Anhui | 20,000.00 | Manufacturing | 100 | - | New establishment | | Zhangjiagang Feymer | Zhangjiagang | 50.00 | Technology promotion and application services, wholesale | 100 | - | New establishment | - The company has no situations where its shareholding percentage in subsidiaries differs from its voting rights percentage[539] - The company has no significant non-wholly-owned subsidiaries[540] XI. Government Grants This section discloses the company's government grants, with 48.58 million yuan in asset-related deferred income and 5.66 million yuan in grants recognized in current profit or loss during the reporting period Liability Items Involving Government Grants (Unit: yuan) | Financial Statement Item | Period-start Balance | New Grants in Current Period | Transferred to Other Income in Current Period | Period-end Balance | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 42,917,191.56 | 8,100,000.00 | 2,440,876.26 | 48,576,315.30 | Related to assets | Government Grants Recognized in Current Profit or Loss (Unit: yuan) | Type | Amount Incurred in Current Period | Amount Incurred in Prior Period | | :--- | :--- | :--- | | Related to Assets | 2,440,876.26 | 1,432,917.89 | | Related to Income | 3,216,400.71 | 2,378,806.50 | | Total | 5,657,276.97 | 3,811,724.39 | XII. Risks Related to Financial Instruments The company faces financial instrument risks, including credit, market, and liquidity risks, managed by the board through diversified investments, business portfolios, and internal audit oversight to mitigate concentration risks - The company faces various financial instrument risks in its daily activities, primarily including credit risk, market risk, and liquidity risk[543] - The company's main financial instruments include cash and bank balances, equity investments, debt investments, borrowings, accounts receivable, and accounts payable[543] - The board of directors is responsible for planning and establishing the company's risk management framework, formulating risk management policies and guidelines, and supervising the implementation of risk management measures[543] - The company diversifies financial instrument risks through appropriate diversified investments and business portfolios, and reduces concentration risks in a single industry, specific region, or specific counterparty by formulating corresponding risk management policies[545] XIII. Disclosure of Fair Value This section discloses the fair values of the company's financial assets and liabilities, including trading financial assets and accounts receivable financing measured at Level 1, and other non-current financial assets at Level 3, noting minimal differences for amorti