浔兴股份(002098) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[4] - Company head Ding Chaoquan, chief accountant Lu Zhiqiang, and head of accounting department Wu Hongzhan declare the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the structured table of contents for the report, including major chapters and their corresponding page numbers List of Reference Documents This section lists the reference documents for the reporting period, available at the company's securities affairs department - Reference documents include financial statements signed and sealed by the company head, chief accountant, and head of accounting department[9] - Reference documents also include originals of all publicly disclosed company documents and announcements during the reporting period[10] - All reference documents are kept at the company's securities affairs department[12] Definitions This section provides definitions for common terms used in the report to ensure clear understanding of the content - "Company", "the Company", "Xunxing Stock" all refer to Fujian Xunxing Zipper Science & Technology Co., Ltd[14] - "Reporting Period", "this Reporting Period" refer to January 1, 2025, to June 30, 2025[14] - "Prior Year Period" refers to January 1, 2024, to June 30, 2024[14] Company Profile and Key Financial Indicators Company Profile Fujian Xunxing Zipper Science & Technology Co., Ltd. (stock code: 002098) is listed on the Shenzhen Stock Exchange, with Ding Chaoquan as its legal representative - The company's stock abbreviation is "Xunxing Stock", stock code "002098", listed on the Shenzhen Stock Exchange[16] - The company's legal representative is Ding Chaoquan[16] Contact Person and Contact Information The company's board secretary is Xie Jingbo, and securities affairs representative is Lin Yiteng, with contact details provided - The board secretary is Xie Jingbo, and the securities affairs representative is Lin Yiteng[17] - The contact address is Wulougou East Industrial Zone, Shenhu Town, Jinjiang City[17] Other Information The company's registered address, office address, website, and information disclosure channels remained unchanged during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[18] - Information disclosure and storage locations remained unchanged during the reporting period[19] Key Accounting Data and Financial Indicators In H1 2025, revenue grew by 11.59% to 1.338 billion CNY, net profit attributable to shareholders increased by 1.39% to 124.73 million CNY, while non-recurring net profit decreased 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,338,528,401.93 | 1,199,491,790.93 | 11.59% | | Net Profit Attributable to Shareholders of Listed Company | 124,732,617.51 | 123,019,717.71 | 1.39% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 122,518,796.23 | 123,675,629.15 | -0.94% | | Net Cash Flow from Operating Activities | 104,709,332.96 | 111,253,352.51 | -5.88% | | Basic Earnings Per Share (CNY/share) | 0.3484 | 0.3436 | 1.40% | | Diluted Earnings Per Share (CNY/share) | 0.3484 | 0.3436 | 1.40% | | Weighted Average Return on Net Assets | 9.16% | 10.29% | -1.13% | | Period-End Indicators | Current Period-End (CNY) | Prior Year-End (CNY) | Period-End vs. Prior Year-End Change | | Total Assets | 2,200,980,817.45 | 2,098,477,469.94 | 4.88% | | Net Assets Attributable to Shareholders of Listed Company | 1,411,629,246.61 | 1,323,221,145.68 | 6.68% | Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets under international or overseas accounting standards compared to Chinese accounting standards - The company reported no differences in net profit and net assets under international accounting standards compared to Chinese accounting standards during the reporting period[23] - The company reported no differences in net profit and net assets under overseas accounting standards compared to Chinese accounting standards during the reporting period[24] Non-Recurring Gains and Losses and Amounts The company's H1 2025 non-recurring gains and losses totaled 2.21 million CNY, primarily from government subsidies and asset disposal losses 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -2,382,702.65 | | Government Subsidies Recognized in Current Profit/Loss | 3,045,444.06 | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises and from Disposal of Financial Assets and Liabilities | 266,579.99 | | Other Non-Operating Income and Expenses Apart from the Above | 1,456,453.14 | | Other Income/Loss Items Meeting the Definition of Non-Recurring Gains/Losses (Individual Income Tax Handling Fee Refund) | 343,043.23 | | Less: Income Tax Impact | 503,581.73 | | Minority Interest Impact (After Tax) | 11,414.76 | | Total | 2,213,821.28 | - The company does not classify non-recurring gains and losses listed in "Interpretive Announcement No. 1 for Information Disclosure by Companies Issuing Securities to the Public - Non-Recurring Gains and Losses" as recurring gains and losses[28] Management Discussion and Analysis Main Business Activities During the Reporting Period In H1 2025, the company focused on zipper and cross-border e-commerce businesses, achieving stable operations and growth through strategic initiatives - The company's main businesses are zipper and cross-border e-commerce, with stable operating models[30] - The zipper business covers metal, nylon, and plastic steel series, targeting the mid-to-high-end market, using a direct sales model combined with order and planned production[30] - The cross-border e-commerce business, operated by Shenzhen Jiazhi Chain, uses a B2C model on platforms like Amazon and TEMU to sell cost-effective Chinese goods such as 3C electronics and home furnishings[31] 2025 Semi-Annual Key Operating Performance | Indicator | Amount (billion CNY) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 1.338 | 11.59% | | Total Profit | 0.141 | -0.55% | | Net Profit Attributable to Shareholders of Listed Company | 0.125 | 1.39% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 0.123 | -0.94% | - The company's operating management focuses on dual-driven growth in cross-border e-commerce, dual-driven efficiency in capacity and management, and synergistic efforts in market, management, and brand[32][33][34] Company's Main Business Overview The company's main businesses are zipper and cross-border e-commerce, maintaining stable operating models and product offerings - The zipper business products cover metal, nylon, and plastic steel series, targeting the mid-to-high-end market, adopting a direct sales model combined with order and planned production[30] - The cross-border e-commerce business, operated by its controlling subsidiary Shenzhen Jiazhi Chain, uses a B2C model on platforms like Amazon and TEMU to sell cost-effective Chinese goods such as 3C electronics, home furnishings, and automotive accessories[31] Company's Main Operating Performance During the Reporting Period In H1 2025, the company achieved 1.338 billion CNY in operating revenue, a 11.59% YoY increase, and 125 million CNY in net profit attributable to shareholders, up 1.39% YoY 2025 Semi-Annual Key Operating Performance | Indicator | Amount (billion CNY) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 1.338 | 11.59% | | Total Profit | 0.141 | -0.55% | | Net Profit Attributable to Shareholders of Listed Company | 0.125 | 1.39% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 0.123 | -0.94% | - Cross-border e-commerce business achieved breakthrough growth by expanding to new platforms, deepening cooperation, developing original products, and optimizing supply chain management[32] - The company enhanced capacity and management efficiency by increasing production equipment upgrades, implementing lean management, deepening supply chain integration, and introducing an IoT platform[33] - The company improved market competitiveness through strategic market and customer布局, focusing on key accounts, implementing classified and tiered management, and leveraging organizational optimization, digital marketing, and brand promotion[34] Retail Industry Information Disclosure Requirements Shenzhen Jiazhi Chain's cross-border e-commerce business saw a 52.63% increase in private-label sales, primarily through B2C platforms like Amazon, supported by advanced data-driven management systems - In H1 2025, the global cross-border e-commerce market continued to expand but with slower growth, while China's cross-border e-commerce imports and exports increased by 5.7%[35] - Shenzhen Jiazhi Chain's private-label product sales revenue reached 271 million CNY, a 52.63% YoY increase, primarily through B2C sales on third-party platforms like Amazon and Shopify[36] - Key sales categories include 3C electronic products (62.22%), kitchen and dining products (14.42%), and automotive accessories (8.88%)[36] - The procurement model features small batches and multiple shipments, with sales forecasting and inventory allocation managed through big data and SAP HANA systems[36] - Over 90.04% of inventory is stored in Amazon FBA warehouses, mainly in the US, UK, and Japan, with logistics primarily relying on third-party service providers[39] Information Disclosure Requirements for Textile and Apparel Related Businesses The zipper industry is closely linked to textiles and apparel, with the company maintaining its leadership position as a high-tech enterprise with extensive production bases and brand influence - The development of the zipper industry is closely linked to the terminal consumption demand of the textile, apparel, and accessories industries, as well as the macroeconomic environment[40] - From January to June 2025, retail sales of clothing, footwear, hats, and knitwear by enterprises above designated size nationwide increased by 3.1% YoY, with cumulative textile and apparel exports reaching 144 billion USD, up 0.8% YoY[41] - The company is a leading enterprise in China's zipper industry, serving as the lead unit for national and industry standard setting, and is a national high-tech enterprise and intellectual property demonstration unit[43] - The company operates five major production bases in Fujian, Shanghai, Tianjin, Chengdu, and Dongguan, making it the largest zipper manufacturer in China with the most comprehensive range of products and specifications[43] Analysis of Core Competitiveness The company's core competitiveness remains stable, driven by technology, brand, and efficient management in zipper business, and synergistic effects in cross-border e-commerce - The company's core competitiveness remained stable with no significant changes[44] - The core competitiveness of the zipper business encompasses technology, brand, product design, marketing network, and an efficient management team[44] - The core competitiveness of the cross-border e-commerce business is reflected in the synergistic effect of "brand e-commerce + e-commerce software + e-commerce community", high-quality community services, a "boutique and branded" operational strategy, and advanced IT management systems[44] Analysis of Main Business In H1 2025, main business revenue increased by 11.59%, with cross-border e-commerce revenue up 49.33% and zipper business revenue up 4.63% 2025 Semi-Annual Major Financial Data YoY Changes | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,338,528,401.93 | 1,199,491,790.93 | 11.59% | | Operating Cost | 886,741,719.96 | 785,068,194.20 | 12.95% | | Selling Expenses | 165,342,547.94 | 135,788,443.40 | 21.76% | | Administrative Expenses | 77,605,152.83 | 68,617,036.13 | 13.10% | | Financial Expenses | 2,100,033.27 | 3,044,705.75 | -31.03% | | R&D Investment | 52,546,900.92 | 48,948,983.99 | 7.35% | | Net Cash Flow from Operating Activities | 104,709,332.96 | 111,253,352.51 | -5.88% | | Net Cash Flow from Financing Activities | -25,152,673.85 | 41,013,781.67 | -161.33% | | Net Increase in Cash and Cash Equivalents | -522,646.28 | 71,136,997.41 | -100.73% | - Financial expenses decreased by 31.03% YoY, primarily due to reduced loan interest and increased exchange gains[47] - Net cash flow from financing activities decreased by 161.33% YoY, mainly due to cash dividend payments and reduced loan borrowings in the current period[47] 2025 Semi-Annual Operating Revenue Composition | Category | Current Period Amount (CNY) | Proportion of Operating Revenue | Prior Year Period Amount (CNY) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | Zipper Business | 1,059,663,337.38 | 79.17% | 1,012,747,766.30 | 84.43% | 4.63% | | Cross-Border E-commerce Business | 278,865,064.55 | 20.83% | 186,744,024.63 | 15.57% | 49.33% | | By Product | | | | | | | Finished Zippers | 778,154,724.18 | 58.13% | 720,665,490.12 | 60.08% | 7.98% | | Continuous Zippers | 120,547,154.03 | 9.01% | 121,299,568.62 | 10.11% | -0.62% | | Sliders | 125,258,037.04 | 9.36% | 133,982,757.32 | 11.17% | -6.51% | | Buttons | 9,838,234.17 | 0.74% | 11,783,852.97 | 0.98% | -16.51% | | Others (Zipper Business) | 25,865,187.96 | 1.93% | 25,016,097.27 | 2.09% | 3.39% | | Cross-Border E-commerce Products | 278,865,064.55 | 20.83% | 186,744,024.63 | 15.57% | 49.33% | | By Region | | | | | | | Total Domestic Transaction Revenue | 872,410,504.72 | 65.18% | 840,507,059.77 | 70.07% | 3.80% | | Total International Transaction Revenue | 466,117,897.21 | 34.82% | 358,984,731.16 | 29.93% | 29.84% | 2025 Semi-Annual Main Business Gross Profit Margin by Industry, Product, and Region | Category | Operating Revenue | Operating Cost | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Zipper Business | 1,059,663,337.38 | 715,984,452.32 | 32.43% | 4.63% | 6.28% | -1.05% | | Cross-Border E-commerce Business | 278,865,064.55 | 170,757,267.64 | 38.77% | 49.33% | 53.26% | -1.57% | | By Product | | | | | | | | Finished Zippers | 778,154,724.18 | 508,128,689.01 | 34.70% | 7.98% | 8.86% | -0.53% | | Continuous Zippers | 120,547,154.03 | 91,598,957.46 | 24.01% | -0.62% | 1.39% | -1.51% | | Sliders | 125,258,037.04 | 95,803,304.38 | 23.52% | -6.51% | 1.91% | -6.32% | | Buttons | 9,838,234.17 | 7,605,827.79 | 22.69% | -16.51% | -22.27% | 5.73% | | Others (Zipper Business) | 25,865,187.96 | 12,847,673.68 | 50.33% | 3.39% | 0.84% | 1.26% | | Cross-Border E-commerce Products | 278,865,064.55 | 170,757,267.64 | 38.77% | 49.33% | 53.26% | -1.57% | | By Region | | | | | | | | Total Domestic Transaction Revenue | 872,410,504.72 | 609,542,939.62 | 30.13% | 3.80% | 5.29% | -0.99% | | Total International Transaction Revenue | 466,117,897.21 | 277,198,780.34 | 40.53% | 29.84% | 34.48% | -2.05% | Other Information Required by Information Disclosure Guidelines for Textile and Apparel Related Industries The company's zipper business saw increased total capacity but slightly lower utilization for continuous zippers, with selling expenses up 21.76% due to direct sales 2025 Semi-Annual Zipper Business Capacity Overview | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | Total Capacity | | | | Sliders | 376,697 million units | 369,328 million units | | Continuous Zippers | 57,653 million yards | 56,891 million yards | | Finished Zippers | 137,816 million pieces | 140,384 million pieces | | Capacity Utilization Rate | | | | Slider Utilization Rate | 81% | 78% | | Continuous Zipper Utilization Rate | 87% | 91% | | Finished Zipper Utilization Rate | 80% | 80% | - The company's products are primarily sold through direct sales, with zipper business selling expenses totaling 77.81 million CNY[56][58] 2025 Semi-Annual Zipper Business Selling Expenses Composition | Item | Current Period Amount (CNY) | | :--- | :--- | | Employee Compensation | 51,060,620.51 | | Advertising and Exhibition Fees | 3,446,642.40 | | Business Entertainment Expenses | 2,349,669.28 | | Depreciation and Amortization Expenses | 1,129,994.68 | | Consulting Service Fees | 139,887.29 | | Travel Expenses | 4,126,410.43 | | Rent, Property Management, and Utilities | 2,010,348.72 | | Others | 13,550,750.44 | | Total | 77,814,323.75 | - Inventory turnover days were 62 days, with period-end inventory balance increasing by 9.10% YoY, primarily for moderate stocking to meet customer delivery requirements[60] - Inventory impairment provision of 2.84 million CNY was recognized in the current period[61] Analysis of Non-Core Business Non-core business primarily included investment income of 0.27 million CNY, asset impairment of 2.84 million CNY, non-operating income of 1.73 million CNY, and non-operating expenses of 2.66 million CNY 2025 Semi-Annual Non-Core Business Gains and Losses | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 266,579.99 | 0.19% | Wealth management income | No | | Asset Impairment | 2,842,935.53 | 2.01% | Provision for inventory impairment | No | | Non-Operating Income | 1,734,656.04 | 1.23% | Primarily unpayable amounts | No | | Non-Operating Expenses | 2,663,844.93 | 1.89% | Primarily losses from disposal of non-current assets | No | Analysis of Assets and Liabilities At period-end, total assets were 2.201 billion CNY, up 4.88% from year-end, with increased receivables and inventory, and decreased long-term borrowings 2025 Semi-Annual Major Changes in Asset Composition | Item | Current Period-End Amount (CNY) | Proportion of Total Assets | Prior Year-End Amount (CNY) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 325,262,837.96 | 14.78% | 326,349,435.97 | 15.55% | -0.77% | | Accounts Receivable | 520,263,938.54 | 23.64% | 479,631,300.77 | 22.86% | 0.78% | | Inventories | 334,537,075.40 | 15.20% | 310,701,859.20 | 14.81% | 0.39% | | Fixed Assets | 654,451,057.89 | 29.73% | 645,592,521.85 | 30.76% | -1.03% | | Short-Term Borrowings | 163,861,225.51 | 7.44% | 157,173,769.44 | 7.49% | -0.05% | | Long-Term Borrowings | 0 | 0% | 19,400,000.00 | 0.92% | -0.92% | 2025 Semi-Annual Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Purchases in Current Period (CNY) | Sales in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Financial Institution Wealth Management Products | 7,053,692.25 | 148,397,549.71 | 145,951,241.96 | 9,500,000.00 | | Receivables Financing | 4,544,868.65 | 80,554,567.63 | 79,188,795.69 | 5,910,640.59 | | Total Above | 11,598,560.90 | 228,952,117.34 | 225,140,037.65 | 15,410,640.59 | 2025 Semi-Annual Asset Rights Restriction Status | Item | Period-End Book Value (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 4,296,782.60 | Bank acceptance margin, futures margin | | Investment Property - Land Use Rights | 6,555,640.73 | Mortgage | | Fixed Assets | 167,422,483.27 | Mortgage | | Intangible Assets | 22,242,516.00 | Mortgage | | Long-Term Equity Investments | 181,250,000.00 | Pledge | | Total | 381,767,422.60 | -- | Analysis of Investment Status During the reporting period, the company did not engage in significant equity investments, non-equity investments, securities investments, or derivative investments - The company had no securities investments during the reporting period[71] - The company had no derivative investments during the reporting period[72] - The company had no use of raised funds during the reporting period[73] Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell significant assets during the reporting period[74] Analysis of Major Holding and Participating Companies The company's major subsidiaries include Shanghai Xunxing and Shenzhen Jiazhi Chain, with the latter achieving 279 million CNY in revenue and 6.41 million CNY in net profit 2025 Semi-Annual Financial Data of Major Subsidiaries | Company Name | Main Business | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | | Shanghai Xunxing | Apparel accessories | 230,203,112.06 | 11,598,108.82 | 8,986,575.96 | | Tianjin Xunxing | Apparel accessories | 38,877,551.12 | 3,315,341.97 | 2,699,959.58 | | Dongguan Xunxing | Apparel accessories | 72,826,764.24 | 2,549,234.53 | 2,453,926.09 | | Chengdu Xunxing | Apparel accessories | 13,308,312.13 | 224,419.09 | 182,987.24 | | Xunxing International | Apparel accessories | 6,266,795.00 | 1,820,447.85 | 1,819,638.62 | | Shenzhen Jiazhi Chain | Cross-border e-commerce products, services | 278,865,064.55 | 7,903,648.47 | 6,413,448.68 | - The company did not acquire or dispose of subsidiaries during the reporting period[77] Status of Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[78] Risks Faced by the Company and Countermeasures The company faces risks including control change, macroeconomic shifts, accounts receivable impairment, raw material price volatility, rising labor costs, exchange rate fluctuations, and e-commerce platform dependence - The controlling shareholder's entire stake is judicially frozen, and future judicial disposal may lead to a change in company control[79] - The zipper industry is affected by the macroeconomic environment and the textile and apparel industry, with a decline in economic prosperity potentially impacting sales volume[80] - As of the end of the reporting period, accounts receivable had a book value of 520 million CNY, accounting for 41.48% of current assets, posing a risk of bad debts[81] - Raw material price fluctuations may affect product gross profit and operating performance; the company will mitigate risks through procurement adjustments, standardization, and futures hedging[82] - As a labor-intensive enterprise, rising human resource costs may adversely affect operating performance; the company will respond by implementing lean management to improve efficiency[83] - Cross-border e-commerce business is primarily settled in USD, and RMB exchange rate fluctuations may lead to exchange losses; the company will closely monitor exchange rate changes and conduct forward foreign exchange transactions[85] - The cross-border e-commerce business faces platform dependence risk on third-party platforms like Amazon, and the company will explore new platforms and business models[86] 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[87] - The company did not disclose a valuation enhancement plan during the reporting period[87] Implementation of "Dual Enhancement of Quality and Returns" Action Plan The company did not disclose an announcement regarding the "Dual Enhancement of Quality and Returns" action plan during the reporting period - The company did not disclose an announcement regarding the "Dual Enhancement of Quality and Returns" action plan during the reporting period[87] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management On February 18, 2025, the company completed the re-election of its board of directors, supervisory board, and senior management, with new members appointed - On February 18, 2025, the company completed the re-election of its board of directors, supervisory board, and senior management[88] - Former Chairman Zhang Guogen, Director Zhang Jingcai, Independent Directors Lin Junguo, Zhang Zhong, and Lin Lin resigned[88] - Ding Chaoquan was elected as Chairman, and Shi Xiongmeng was elected as Vice Chairman and appointed as Executive President[88][89] Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 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[90] Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[91] Environmental Information Disclosure The company and its major subsidiaries are included in the list of enterprises required to disclose environmental information, with no environmental accidents reported - The listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental information, totaling 2 enterprises (actually listing 4 departments/subsidiaries)[92] - The listed company had no environmental accidents during the reporting period[92] Social Responsibility The company actively fulfills its social responsibilities, balancing shareholder value with the interests of employees, customers, and society - The company actively fulfills its corporate obligations and social responsibilities, balancing the interests of employees, customers, and society[93] - During the reporting period, the company has not yet carried out work to consolidate poverty alleviation achievements or rural revitalization, and has no related plans for the future[93] Significant Matters Commitments During the reporting period, the company had no unfulfilled or overdue commitments from its actual controller, shareholders, or other related parties - During the reporting period, the company had no commitments from its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue as of the end of the reporting period[95] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties - During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties[96] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[97] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[98] Board of Directors' and Supervisory Board's Explanation of "Non-Standard Audit Report" for the Current Period During the reporting period, the company did not receive a "non-standard audit report" from its accounting firm Board of Directors' Explanation of "Non-Standard Audit Report" for the Prior Year During the reporting period, the company did not provide an explanation regarding a "non-standard audit report" for the prior year Bankruptcy and Reorganization Related Matters During the reporting period, the company had no bankruptcy or reorganization related matters - The company had no bankruptcy or reorganization related matters during the reporting period[99] Litigation Matters The company won a significant 1.015 billion CNY equity transfer dispute and is involved in other minor contract disputes, with most resolved favorably 2025 Semi-Annual Major Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million CNY) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Transfer Agreement Dispute between the Company and Gan Qingcao, Zhu Ling, Shenzhen Gongtong Mengxiang Technology Enterprise (Limited Partnership) | 1,014.5165 | No | Judgment Rendered | Won | Enforcement | - The company is also involved in multiple sales contract disputes, most of which have been ruled in its favor or settled and withdrawn, with no significant impact on the company[102] Penalties and Rectification Status The company, its controlling shareholder, and second-largest shareholder received administrative penalties from the CSRC for information disclosure violations, with fines paid but rectification ongoing 2025 Semi-Annual Penalty Status | Name | Type | Reason | Investigation and Penalty Type | Conclusion (if any) | | :--- | :--- | :--- | :--- | :--- | | Fujian Xunxing Zipper Science & Technology Co., Ltd. | Other | Information Disclosure Violation | Disciplinary Action by Stock Exchange | Circulated criticism and recorded in the listed company's integrity file | | Tianjin Huizefeng Enterprise Management Co., Ltd. | Controlling Shareholder | Information Disclosure Violation | Disciplinary Action by Stock Exchange | Public condemnation and recorded in the listed company's integrity file | | Fujian Xunxing Group Co., Ltd. | Other | Information Disclosure Violation | Disciplinary Action by Stock Exchange | Public condemnation and recorded in the listed company's integrity file | | Wang Lijun | Actual Controller | Information Disclosure Violation | Disciplinary Action by Stock Exchange | Public condemnation and recorded in the listed company's integrity file | - The company and shareholder Fujian Xunxing Group Co., Ltd. fully paid the fines in January 2025[106] - As of the end of the reporting period, the rectification work for information disclosure documents by the company and relevant parties is still ongoing and has not been completed[107] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company fulfilled its legal obligations, but its controlling shareholder and actual controller had unfulfilled court-ordered obligations and overdue large debts - During the reporting period, the company had no unfulfilled court-ordered obligations or large overdue debts[108] - The company's controlling shareholder, Tianjin Huizefeng Enterprise Management Co., Ltd., and Mr. Wang Lijun, the actual controller, had unfulfilled court-ordered obligations and large overdue debts[108] Significant Related Party Transactions During the reporting period, the company had no significant related party transactions involving daily operations, asset/equity acquisitions/disposals, joint investments, or related party debts - The company had no significant related party transactions related to daily operations during the reporting period[109] - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[110] - The company had no related party creditor-debtor relationships during the reporting period[112] Significant Contracts and Their Performance The company had no trust or contracting arrangements, but a significant land lease contract with annual rent of 5.71 million CNY, no major guarantees, and 77.76 million CNY in wealth management products - The company had no trust arrangements during the reporting period[116] - The company had no contracting arrangements during the reporting period[117] - The company leased land use rights located at No. 1111 Huijin Road, Qingpu Industrial Park, Shanghai, to Shanghai Fengdun Enterprise Management Consulting Co., Ltd. for a term of 15 years, with an annual rent of 5.71 million CNY[118] - The company approved a guarantee limit of 50 million CNY for its subsidiary Shenzhen Jiazhi Chain during the reporting period, but no actual guarantee business occurred[122] 2025 Semi-Annual Wealth Management Status | Specific Type | Wealth Management Amount (million CNY) | Unmatured Balance (million CNY) | | :--- | :--- | :--- | | Bank Wealth Management Products | 77.7642 | 9.5 | Explanation of Other Significant Matters The company completed board re-election, increased capital in its Bangladesh subsidiary by 100 million CNY, gained 12 new patents, and faces potential control change due to its controlling shareholder's frozen shares - On February 18, 2025, the company completed the re-election of its board of directors and supervisory board, electing members for the eighth board and supervisory board, and appointing a new senior management team[127] - The company and its wholly-owned subsidiary Xunxing International Development Co., Ltd. increased capital in their Bangladesh subsidiary by 100 million CNY, raising the total investment to 149.5 million CNY[128] - From January to June 2025, the company obtained 12 new authorized patents (4 invention patents, 7 utility model patents, 1 design patent), bringing the cumulative total of valid patents to 675[129] - As of June 30, 2025, the company's controlling shareholder, Tianjin Huizefeng, held 89.5 million shares (25% of total share capital), all of which were pledged and judicially frozen, potentially leading to a change in the largest shareholder if judicially disposed of[130] - The company and its shareholders received administrative penalties from the China Securities Regulatory Commission for information disclosure violations; fines have been paid, but related rectification work is still actively progressing and has not been completed[131] Significant Matters of Company Subsidiaries During the reporting period, the company had no significant matters concerning its subsidiaries - The company had no significant matters concerning its subsidiaries during the reporting period[132] Share Changes and Shareholder Information Share Change Status During the reporting period, the company's total shares remained at 358 million, with a decrease in restricted shares and an increase in unrestricted shares due to a departing executive 2025 Semi-Annual Share Change Status | Share Class | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 15,000 | 0.00% | -3,750 | 11,250 | 0.00% | | Of which: Shares Held by Domestic Natural Persons | 15,000 | 0.00% | -3,750 | 11,250 | 0.00% | | II. Unrestricted Shares | 357,985,000 | 100.00% | 3,750 | 357,988,750 | 100.00% | | Of which: RMB Ordinary Shares | 357,985,000 | 100.00% | 3,750 | 357,988,750 | 100.00% | | III. Total Shares | 358,000,000 | 100.00% | 0 | 358,000,000 | 100.00% | - Share changes were primarily due to a reduction in restricted shares held by a departing senior executive[135] 2025 Semi-Annual Restricted Share Change Status | Shareholder Name | Beginning Restricted Shares (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Ending Restricted Shares (shares) | Reason for Restriction | Date of Release from Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Jianqun | 15,000 | 3,750 | 0 | 11,250 | Restricted shares of departing senior executive | Released from restriction according to regulations after the lock-up period for departing executives expires | Securities Issuance and Listing Status During the reporting period, the company had no securities issuance or listing activities - The company had no securities issuance during the reporting period[138] Company Shareholder Numbers and Shareholding Status As of period-end, the company had 23,472 common shareholders, with Tianjin Huizefeng, Fujian Xunxing Group, and Chengxing Development International as top shareholders, and the controlling shareholder's shares fully pledged and frozen - As of the end of the reporting period, the total number of common shareholders was 23,472[140] 2025 Semi-Annual Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Period-End Shareholding Quantity (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Tianjin Huizefeng Enterprise Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 25.00% | 89,500,000 | Pledged, Frozen 89,500,000 | | Fujian Xunxing Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 19.18% | 68,662,682 | N/A 0 | | Chengxing Development International Co., Ltd. | Overseas Legal Person | 13.49% | 48,300,000 | N/A 0 | | Xiamen Shiwei Hongyuan Equity Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.14% | 7,674,717 | Pledged 7,674,717, Frozen 7,674,119 | | Zhang Xin | Domestic Natural Person | 1.61% | 5,780,000 | N/A 0 | | Zhou Xingying | Domestic Natural Person | 0.95% | 3,406,000 | N/A 0 | | Zhang Desheng | Domestic Natural Person | 0.54% | 1,925,400 | N/A 0 | | Du Dequan | Domestic Natural Person | 0.52% | 1,875,400 | N/A 0 | | Xu Yuanlin | Domestic Natural Person | 0.46% | 1,643,163 | N/A 0 | | Xu Junqing | Domestic Natural Person | 0.37% | 1,328,800 | N/A 0 | - The company is unaware if the above shareholders have any associated relationships or are acting in concert[140] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, former CFO Zhang Jianqun's shareholding decreased by 3,750 shares, while other directors, supervisors, and senior management had no changes 2025 Semi-Annual Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Beginning Shareholding (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Ending Shareholding (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Jianqun | CFO | Departed | 15,000 | 0 | 3,750 | 11,250 | | Total | -- | -- | 15,000 | 0 | 3,750 | 11,250 | Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[144] - The company's actual controller did not change during the reporting period[144] Preferred Share Related Matters During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[145] Bond Related Matters Bond Related Matters During the reporting period, the company had no bond-related matters - The company had no bond-related matters during the reporting period[147] Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[149] Financial Statements This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were 2.201 billion CNY, with total liabilities of 782.19 million CNY and total owners' equity of 1.419 billion CNY June 30, 2025 Consolidated Balance Sheet Key Data | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 1,254,155,189.47 | 1,179,734,009.91 | | Total Non-Current Assets | 946,825,627.98 | 918,743,460.03 | | Total Assets | 2,200,980,817.45 | 2,098,477,469.94 | | Total Current Liabilities | 738,684,372.51 | 701,428,239.62 | | Total Non-Current Liabilities | 43,504,023.17 | 66,811,350.31 | | Total Liabilities | 782,188,395.68 | 768,239,589.93 | | Total Owners' Equity Attributable to Parent Company | 1,411,629,246.61 | 1,323,221,145.68 | | Minority Interests | 7,163,175.16 | 7,016,734.33 | | Total Owners' Equity | 1,418,792,421.77 | 1,330,237,880.01 | | Total Liabilities and Owners' Equity | 2,200,980,817.45 | 2,098,477,469.94 | Parent Company Balance Sheet As of June 30, 2025, parent company total assets were 1.926 billion CNY, with total liabilities of 843.90 million CNY and total owners' equity of 1.082 billion CNY June 30, 2025 Parent Company Balance Sheet Key Data | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 776,220,759.59 | 752,467,061.02 | | Total Non-Current Assets | 1,149,888,002.93 | 1,083,930,092.17 | | Total Assets | 1,926,108,762.52 | 1,836,397,153.19 | | Total Current Liabilities | 839,670,171.80 | 799,446,940.82 | | Total Non-Current Liabilities | 4,229,489.54 | 24,523,877.73 | | Total Liabilities | 843,899,661.34 | 823,970,818.55 | | Total Owners' Equity | 1,082,209,101.18 | 1,012,426,334.64 | | Total Liabilities and Owners' Equity | 1,926,108,762.52 | 1,836,397,153.19 | Consolidated Income Statement In H1 2025, the company achieved 1.339 billion CNY in total operating revenue, a 11.59% YoY increase, with net profit of 124.88 million CNY 2025 Semi-Annual Consolidated Income Statement Key Data | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 1,338,528,401.93 | 1,199,491,790.93 | | Total Operating Cost | 1,195,618,166.40 | 1,052,532,229.81 | | Operating Profit | 142,135,252.00 | 145,173,236.93 | | Total Profit | 141,206,063.11 | 141,986,955.64 | | Income Tax Expense | 16,321,557.24 | 17,799,850.86 | | Net Profit | 124,884,505.87 | 124,187,104.78 | | Net Profit Attributable to Parent Company Shareholders | 124,732,617.51 | 123,019,717.71 | | Minority Interest Income/Loss | 151,888.36 | 1,167,387.07 | | Net Other Comprehensive Income After Tax | -529,964.11 | 216,171.64 | | Total Comprehensive Income | 124,354,541.76 | 124,403,276.42 | | Basic Earnings Per Share (CNY/share) | 0.3484 | 0.3436 | | Diluted Earnings Per Share (CNY/share) | 0.3484 | 0.3436 | Parent Company Income Statement In H1 2025, the parent company achieved 783 million CNY in operating revenue and 106 million CNY in net profit 2025 Semi-Annual Parent Company Income Statement Key Data | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 782,531,092.27 | 752,995,100.70 | | Operating Profit | 117,978,848.11 | 121,893,797.31 | | Total Profit | 117,991,101.26 | 118,958,625.57 | | Income Tax Expense | 12,408,334.72 | 13,244,558.44 | | Net Profit | 105,582,766.54 | 105,714,067.13 | | Total Comprehensive Income | 105,582,766.54 | 105,714,067.13 | | Basic Earnings Per Share (CNY/share) | 0.2949 | 0.2953 | | Diluted Earnings Per Share (CNY/share) | 0.2949 | 0.2953 | Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities was 105 million CNY, while net cash flow from investing and financing activities were negative 2025 Semi-Annual Consolidated Cash Flow Statement Key Data | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 104,709,332.96 | 111,253,352.51 | | Net Cash Flow from Investing Activities | -81,919,594.28 | -83,564,746.33 | | Net Cash Flow from Financing Activities | -25,152,673.85 | 41,013,781.67 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,840,288.89 | 2,434,609.56 | | Net Increase in Cash and Cash Equivalents | -522,646.28 | 71,136,997.41 | | Period-End Cash and Cash Equivalents Balance | 320,966,055.36 | 341,036,049.06 | Parent Company Cash Flow Statement In H1 2025, parent company net cash flow from operating activities was 114 million CNY, with negative net cash flows from investing and financing activities 2025 Semi-Annual Parent Company Cash Flow Statement Key Data | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from