海天味业(603288) - 2025 Q2 - 季度财报

Section I Definitions This section defines key terms used throughout the report for clarity - Key terms such as 'Haitian Group', 'the Company', and 'reporting period' are defined to ensure clear understanding of the report content[15] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's profile and key financial performance metrics I. Company Information This section provides basic information about Foshan Haitian Flavouring & Food Co., Ltd., including its Chinese name, abbreviation, foreign name, and legal representative - The company's full name is Foshan Haitian Flavouring & Food Co., Ltd., abbreviated as Haitian Flavouring, with Cheng Xue as the legal representative[17] II. Contact Persons and Information This section lists the company's contact details, including names, addresses, phone numbers, fax, and email for key personnel - The Board Secretary is Ke Ying, the Securities Affairs Representative is Wu Weiming, and the contact address for both is No. 16 Wensha Road, Foshan City, Guangdong Province[18] III. Overview of Basic Information Changes This section outlines the company's registered and office addresses, postal code, and website, noting no changes during the reporting period - The company's registered and office address is No. 16 Wensha Road, Foshan City, Guangdong Province, postal code 528000, and website www.haitian-food.com[19](index=19&type=chunk) IV. Overview of Information Disclosure and Document Custody Location Changes This section details the company's chosen information disclosure newspapers, website for semi-annual reports, and document custody location, with no changes noted - The company's information disclosure newspapers include China Securities Journal, the website address is www.sse.com.cn, and the report custody location is the Board Office at No. 16 Wensha Road, Chancheng District, Foshan City, Guangdong Province[20] V. Company Stock Overview This section provides information on the company's A-shares and H-shares, including listing exchanges, stock abbreviations, and codes Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-shares | Shanghai Stock Exchange | Haitian Flavouring | 603288 | | H-shares | Hong Kong Stock Exchange | Haitian Flavouring | 03288 | VII. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for H1 2025, showing year-on-year growth in revenue, total profit, net profit attributable to parent, and operating cash flow (I) Key Accounting Data In H1 2025, the company's operating revenue reached 15.23 billion yuan, net profit attributable to shareholders was 3.914 billion yuan, and net operating cash flow increased by 33.56% Key Accounting Data for H1 2025 | Key Accounting Data (Jan-Jun) | Current Period (yuan) | Prior Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 15,229,923,077.90 | 14,155,910,142.91 | 7.59 | | Total Profit | 4,651,340,550.25 | 4,076,137,912.99 | 14.11 | | Net Profit Attributable to Shareholders of Listed Company | 3,914,005,023.88 | 3,453,049,852.16 | 13.35 | | Net Cash Flow from Operating Activities | 1,504,938,083.15 | 1,126,773,137.01 | 33.56 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 39,187,210,517.36 | 30,895,407,856.81 | 26.84 | | Total Assets (Period-end) | 46,808,702,370.19 | 40,858,435,135.91 | 14.56 | (II) Key Financial Indicators In H1 2025, the company's basic and diluted earnings per share both increased by 12.90%, and the weighted average return on net assets rose by 0.37 percentage points Key Financial Indicators for H1 2025 | Key Financial Indicators (Jan-Jun) | Current Period | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (yuan/share) | 0.70 | 0.62 | 12.90 | | Diluted EPS (yuan/share) | 0.70 | 0.62 | 12.90 | | Basic EPS after Non-recurring Gains and Losses (yuan/share) | 0.69 | 0.60 | 15.00 | | Weighted Average ROE (%) | 12.22 | 11.85 | Increase of 0.37 percentage points | | Weighted Average ROE after Non-recurring Gains and Losses (%) | 11.91 | 11.41 | Increase of 0.50 percentage points | IX. Non-recurring Gains and Losses Items and Amounts In H1 2025, the company's total non-recurring gains and losses amounted to 97.46 million yuan, primarily from government grants and fair value changes of financial assets Non-recurring Gains and Losses Items for H1 2025 | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | -247,094.99 | | Government Grants Recognized in Current Profit or Loss | 42,089,772.87 | | Gains and Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-financial Enterprises, and from Disposal of Financial Assets and Liabilities | 90,708,896.43 | | Other Non-operating Income and Expenses Apart from the Above | -7,639,339.99 | | Less: Income Tax Impact | 24,713,381.48 | | Impact on Minority Interests (After Tax) | 2,736,342.62 | | Total | 97,462,510.22 | Section III Management Discussion and Analysis This section provides management's perspective on the company's operations, financial performance, and future outlook I. Industry and Principal Business Overview During the Reporting Period This section details the characteristics and trends of the seasoning industry, the company's principal business, core products, market position, and operating models (I) Industry and Industry Development The seasoning industry, characterized by essential demand and entry barriers, faces challenges from technological innovation, intense competition, and evolving consumer demands - The seasoning industry features essential demand and high entry barriers, but must address diversified, health-conscious, high-value-for-money consumer demands and fragmented online channels[29][31] - Industry concentration is low, competition is fierce, but leading enterprises are expected to expand their advantages through technology, capacity, capital, and efficiency barriers[30] (II) Principal Business, Core Products, and Market Position Haitian Flavouring, a leading Chinese seasoning enterprise, offers a diverse product line including soy sauce and oyster sauce, which consistently rank first in sales, meeting varied consumer demands through continuous innovation - The company boasts a rich product line, including soy sauce, oyster sauce, seasoning sauces, vinegar, cooking wine, and compound seasonings, catering to diverse needs[32] - Based on 2024 sales volume, the company has been China's largest seasoning enterprise for 28 consecutive years, with soy sauce and oyster sauce consistently ranking first in the Chinese market for many years[32] - Soy sauce products adhere to natural brewing processes and unique microbial strain technology, covering mass-market to high-end demands, with new products like Songrongxian and Light Salt Ginger & Scallion Juice launched[33] - Oyster sauce products, through comprehensive research, achieve a 'rich yet not fishy, one-step freshness' advantage, and marketing activities like 'Haitian Meal Festival × Talk Show' enhance exposure among younger demographics[36] - The seasoning sauce product system is extensive, including general basic sauces and specialty sauces, continuously meeting diverse cooking methods and regional tastes[38] - Specialty seasonings like vinegar and cooking wine are also accelerating development, enhancing market influence through 'authentic fermentation' and a rich product series[40] (III) Business Model The company's business model integrates stringent supply chain management, digitalized production, a distribution-centric sales network, traditional brewing, and proactive brand strategies to ensure quality, efficiency, and competitiveness - The procurement model emphasizes supply chain quality and risk control, achieving cost reduction and efficiency gains through digitalization and technological innovation, fostering healthy supplier relationships, and supporting rural revitalization[42][43] - The production model focuses on creating high-quality, stable products, with multiple production bases, digital control over processes for flexible delivery, and the Gaoming factory recognized as a 'Lighthouse Factory'[44] - The sales model is primarily distribution-based, building a full-link digital ecosystem connecting distributors, sales personnel, and end-users through digital marketing to enhance sales efficiency and accuracy[45] - The production process combines traditional brewing with modern technology, achieving full-chain automation, informatization, and digitalization to ensure healthy, nutritious, and stable product quality[46] - Brand strategy involves promotion through authoritative media, sponsorship of cultural and sports events, and 'sunshine factory' visits, continuously enhancing brand reputation and consumer trust[46] II. Discussion and Analysis of Operations In H1 2025, the company achieved steady growth in revenue and net profit, driven by a user-centric approach, global expansion, enhanced competitiveness, and a robust supply chain - In H1 2025, the company's operating revenue was 15.23 billion yuan, a 7.59% YoY increase; seasoning business revenue was 14.56 billion yuan, a 10.45% YoY increase; net profit attributable to shareholders was 3.91 billion yuan, a 13.35% YoY increase[48] - The company deepens its presence in the Chinese market, offering high-value-for-money products and services, accelerating channel penetration, and steadily advancing its international strategy to enhance global user service capabilities[48] - The company is committed to enhancing systemic comprehensive competitiveness, strengthening its ultimate supply chain, and advocating for win-win cooperation across the entire industry chain[48] H1 2025 Principal Business Segment Performance | Segment | Operating Revenue (Current Period, yuan) | Operating Revenue YoY Change (%) | Gross Margin (%) | Gross Margin YoY Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Food Manufacturing | 14,561,730,523.77 | 10.45 | 41.45 | 2.82 | | By Product | | | | | | Soy Sauce | 7,927,942,766.07 | 9.14 | | | | Oyster Sauce | 2,502,329,945.16 | 7.74 | | | | Seasoning Sauce | 1,625,950,770.20 | 12.01 | | | | Others | 2,505,507,042.34 | 16.73 | | | | By Region | | | | | | Eastern Region | 2,860,033,028.56 | 13.59 | | | | Southern Region | 3,022,657,047.43 | 13.76 | | | | Central Region | 3,182,252,785.82 | 9.06 | | | | Northern Region | 3,647,681,357.05 | 8.01 | | | | Western Region | 1,849,106,304.91 | 7.86 | | | | By Channel | | | | | | Offline Channels | 13,719,625,207.17 | 9.07 | | | | Online Channels | 842,105,316.60 | 38.97 | | | III. Analysis of Core Competitiveness During the Reporting Period The company has built multi-dimensional core competitive advantages through technological innovation, an ultimate supply chain, diversified channels, a rich product matrix, and sustainable development strategies, laying a foundation for long-term growth (I) Technology-Driven Leadership in Fermentation Brewing Technology, Equipment, and Digital Intelligence Decades of dedication to fermentation brewing have enabled the company to establish high technological barriers in core techniques, equipment, nutrition, raw materials, and formulas, consolidating its leading position in product quality and efficiency through digitalization - The company has accumulated numerous core technologies in key areas such as fermentation brewing core techniques, critical brewing equipment, nutrition, raw materials, and formulas, forming high barriers[52] - Technological innovation supports the expansion of the business from soy sauce to fermentation-related categories like vinegar and cooking wine, deeply integrating traditional brewing expertise with modern production through digital tools[52][53] (II) Ultimate Supply Chain The company continuously optimizes its end-to-end supply chain for quality and efficiency, rigorously selecting raw materials, driving digital transformation, developing flexible production, and achieving 'Lighthouse Factory' status for superior quality and cost advantages - The company rigorously selects high-quality upstream raw materials, optimizes resource allocation, drives supply chain transformation through digitalization, and cultivates flexible production capacity[55] - In January 2025, Haitian Gaoming Factory was successfully included in the World Economic Forum's 'Lighthouse Factory' list, demonstrating its leading position and ultimate efficiency in intelligent manufacturing[57] (III) Multi-dimensional Channels The company continuously optimizes its traditional distribution network, expands rural coverage, and strengthens multi-scenario sales, building a full-link digital ecosystem through digital marketing to enhance market responsiveness and user experience - The company possesses an extensive and high-quality dealer network, utilizing digital marketing tools to build a full-link digital ecosystem and strengthen market responsiveness[59] - Extensive and deep channel coverage helps the company obtain sensitive, accurate, and broad market feedback, achieving efficient product promotion and sales[59] (IV) Nationally Recognized and Continuously Enriched Product Matrix with Taste Memory Leveraging deep insights and continuous innovation, the company has developed a rich product matrix of core seasonings like soy sauce and oyster sauce, expanding into cooking wine, vinegar, and compound seasonings to meet all user seasoning needs - The company has established a rich product matrix, with Haitian flavors becoming a taste memory for generations, and core advantageous products continuously innovating[60] - As of June 30, 2025, the company's product types include soy sauce, oyster sauce, seasoning sauce, vinegar, cooking wine, and others[60][61][63] (V) Sustainable Development Layout The company maintains steady operations and high-quality development, building future competitive advantages through multi-base capacity layout and intelligent industrial park construction, while actively fulfilling social responsibilities and promoting green, low-carbon practices - The company lays the foundation for future competition through multi-base capacity layout and the construction of intelligent industrial parks[64] - The company has established a comprehensive sustainable development system and management framework, integrating green and low-carbon principles into performance incentives and extending them throughout the supply chain[64] - The company contributes to consolidating poverty alleviation achievements and rural revitalization through various forms of assistance, including paired assistance, educational support, employment aid, and industrial development support[64] IV. Key Operating Performance During the Reporting Period This section provides a detailed analysis of the company's key operating performance, including changes in financial statement items, asset and liability status, external investments, and the operations of major subsidiaries (I) Analysis of Principal Business This section analyzes changes in financial statement items, noting increases in selling, general and administrative, and R&D expenses, and net operating cash flow, while finance expenses varied due to reduced interest income and increased exchange losses Analysis Table of Financial Statement Items Changes | Item | Current Period (yuan) | Prior Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 15,229,923,077.90 | 14,155,910,142.91 | 7.59 | | Operating Cost | 9,120,042,880.10 | 8,937,779,769.72 | 2.04 | | Selling Expenses | 971,989,602.04 | 849,466,926.69 | 14.42 | | Administrative Expenses | 316,088,691.21 | 261,301,710.97 | 20.97 | | Finance Expenses | -211,157,493.30 | -250,286,783.44 | N/A | | R&D Expenses | 411,399,588.04 | 380,127,907.43 | 8.23 | | Net Cash Flow from Operating Activities | 1,504,938,083.15 | 1,126,773,137.01 | 33.56 | | Net Cash Flow from Investing Activities | -1,271,573,806.79 | -2,182,704,036.67 | N/A | | Net Cash Flow from Financing Activities | 5,451,696,480.26 | -3,346,327,589.77 | N/A | - The increase in selling and administrative expenses was primarily due to higher personnel costs; finance expenses changed mainly due to reduced interest income and increased exchange losses; the increase in net cash flow from operating activities was driven by revenue growth[67] - The change in net cash flow from financing activities was primarily influenced by the proceeds from H-share issuance and the payment of A-share cash dividends[67] (III) Analysis of Assets and Liabilities This section analyzes period-end asset and liability changes, noting significant increases in monetary funds, notes receivable, taxes payable, and capital reserves, while inventory, contract liabilities, and short-term borrowings decreased Changes in Assets and Liabilities | Item Name | Period-end Amount (yuan) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | | Monetary Funds | 29,998,694,826.32 | 35.65 | Primarily due to proceeds from H-share issuance in the current period | | Notes Receivable | 1,100,000.00 | 196.63 | Primarily due to an increase in bank acceptance bills received in the current period | | Inventories | 1,733,896,513.68 | -31.34 | Primarily due to increased inventory reserves at the end of last year to meet distributor demand for Chinese New Year stocking, returning to normal at the end of the current period | | Notes Payable | 1,869,533,149.15 | 218.77 | Primarily due to increased bill settlements in the current period | | Contract Liabilities | 1,184,044,539.64 | -72.69 | Primarily due to large deferred output VAT at the beginning of the year from distributor prepayments for Chinese New Year stocking at the end of last year, returning to normal at the end of the current period | | Taxes Payable | 607,808,059.71 | 46.78 | Primarily due to increased VAT and income tax payable at the end of the current period | | Capital Reserve | 9,011,831,627.44 | 6224.15 | Primarily due to share premium from H-share issuance in the current period | - Overseas assets accounted for 14.25% of total assets, amounting to 6.67 billion yuan[72] (IV) Analysis of Investment Status The company actively pursued overseas equity investments by establishing wholly-owned subsidiaries to advance its globalization strategy, while also holding fair-value-measured financial assets and derivatives, with disclosed changes and risk control measures - The company's subsidiary, Haitian International Investment, established wholly-owned subsidiaries Haday Food (AM) Holding Limited in Hong Kong, Haday US Inc. in the United States, and PT HADAY GROUP INDONESIA in Indonesia to expand overseas markets[73] Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (million yuan) | Fair Value Change Gains/Losses for Current Period (million yuan) | Purchases for Current Period (million yuan) | Sales/Redemptions for Current Period (million yuan) | Period-end Balance (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Others | 7617.68 | 90.71 | 6183.00 | 7391.40 | 6500.00 | | Total | 7617.68 | 90.71 | 6183.00 | 7391.40 | 6500.00 | - The company engages in derivative investments for hedging purposes, primarily foreign exchange contracts, with an actual gain/loss of 2.13 million yuan during the reporting period, aiming to mitigate exchange rate fluctuation risks[78][80] (VI) Analysis of Major Holding and Associate Companies This section discloses financial information for major holding subsidiaries, including Gaoming Haitian, Xingzhao Global, and Haitian International Investment, noting the addition of newly established subsidiaries to the consolidation scope Financial Information of Major Holding Subsidiaries (Unit: billion yuan) | Company Name | Total Assets (billion yuan) | Net Assets (billion yuan) | Operating Revenue (billion yuan) | Operating Profit (billion yuan) | Net Profit (billion yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gaoming Haitian | 74.57 | 56.84 | 95.76 | 34.26 | 29.21 | | Xingzhao Global | 83.56 | 83.38 | 0.36 | 9.37 | 9.28 | | Haitian International Investment | 46.71 | 0.15 | 0.00045 | -0.09 | -0.12 | - During the reporting period, the company incorporated new subsidiaries through establishment but did not dispose of any subsidiaries[82] V. Other Disclosures This section discloses potential risks such as food safety, raw material price fluctuations, and market competition, alongside the company's implementation of the 'Quality Improvement, Efficiency Enhancement, and Returns Focus' action plan (I) Potential Risks The company faces challenges including food safety, raw material price volatility, industry downturns, intensified market competition, talent shortages, and foreign exchange risks, for which it has implemented management and response measures - Food safety is paramount for food processing enterprises; the company strictly implements quality control, with particular focus on technological breakthroughs and applications[84] - Fluctuations in raw material prices may impact the company's product gross margin; the company's procurement team develops purchasing plans in advance to mitigate this[85] - The seasoning industry's prosperity is influenced by the catering sector, and mass consumer product growth may face downside risks, though this also favors industry consolidation[86] - Intensified market competition is addressed by the company through offering high-value-for-money products and enhancing operational capabilities and efficiency to counter homogenization[87] - The company's business expansion increases demand for R&D talent, potentially leading to risks of talent shortage or attrition[88] - Foreign exchange risk primarily stems from transactions denominated in USD, EUR, HKD, and RMB; the company continuously monitors exchange rate fluctuations and uses financial instruments for hedging[89] (II) Other Disclosure Matters The company actively implements its 'Quality Improvement, Efficiency Enhancement, and Returns Focus' plan, concentrating on its core seasoning business, driving quality through innovation and digitalization, and prioritizing investor returns and information disclosure - The company focuses on its core seasoning business, has established a comprehensive product category layout, and successfully developed 7 major product series with annual revenues exceeding 1 billion yuan[90][92] - The company achieved full-chain digital and intelligent transformation through AI, IoT, big data, and other technologies; Haitian Gaoming Factory was selected as a 'Lighthouse Factory' and certified as the 'China Light Industry Seasoning Intelligent Manufacturing Engineering Technology Research Center'[93] - The company implements an active and stable profit distribution policy, with a cash dividend ratio of 80.19% for 2024, and a proposed cash dividend of 1.519 billion yuan (tax inclusive) for 2025[94] - The company highly values information disclosure quality, receiving an A-rating from the Shanghai Stock Exchange, and strictly adheres to A+H dual-listing information disclosure rules to ensure fair access to information for investors[95] - The company has improved its governance structure and internal control systems, revising the Articles of Association and other regulations, and plans to abolish the Supervisory Board, with its functions to be undertaken by the Audit Committee[97] Section IV Corporate Governance, Environment, and Society This section covers the company's corporate governance practices, environmental initiatives, and social responsibility efforts II. Profit Distribution or Capital Reserve Conversion Plan The Board approved the H1 2025 profit distribution plan, proposing a cash dividend of 2.60 yuan (tax inclusive) per 10 shares, totaling 1.519 billion yuan, in line with the Articles of Association and shareholder authorization H1 2025 Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Distribution or Conversion | Yes | | Bonus Shares per 10 Shares (shares) | 0 | | Cash Dividend per 10 Shares (yuan) (tax inclusive) | 2.60 | | Capitalized Shares per 10 Shares (shares) | 0 | - The proposed cash dividend of 1.519 billion yuan (tax inclusive) represents approximately 38.80% of the company's H1 2025 net profit attributable to shareholders[8][100] - This profit distribution plan was authorized by the General Meeting of Shareholders on May 9, 2025, for the Board to decide[101] IV. Environmental Information of Listed Company and Major Subsidiaries Included in the Legally Mandated Environmental Information Disclosure List Five of the company's subsidiaries, including Gaoming Haitian and Nanning Haitian, are on the legally mandated environmental information disclosure list, with reports available for query in the designated system - The company has 5 subsidiaries included in the legally mandated environmental information disclosure list: Gaoming Haitian, Nanning Haitian, Haitian Vinegar Industry (Wuhan) Co., Ltd., Zhenjiang Danhe Vinegar Industry Co., Ltd., and Hefei Yanzhuang Edible Oil Co., Ltd[103] - Haitian Vinegar Industry (Wuhan) Co., Ltd. was first included in the list on March 4, 2025, and its annual environmental information disclosure report is not yet due for disclosure[103] V. Specific Actions for Consolidating Poverty Alleviation Achievements and Rural Revitalization Adhering to its 'Three Hearts Culture', the company actively fulfills social responsibilities through targeted assistance, industrial empowerment, and a national nutrition improvement plan, contributing to poverty alleviation and rural revitalization, earning multiple accolades - The company actively collaborates with government and social resources to aid earthquake-stricken areas in Tibet, benefiting approximately 50,000 people[104] - The company supports rural revitalization through a 'industry + public welfare' dual-driven model, acquiring raw materials in mushroom and soybean producing areas, and donating 5 million yuan to support rural revitalization efforts in Guangdong Province[104] - The company, in collaboration with Kangze Foundation, launched the 'Pink Cap for Love' nutrition and health support program, providing nutritional support to special populations and improving iron-deficiency anemia among rural students, benefiting over 27,000 students[105] - During the reporting period, the company received multiple honors, including the '2024 Guangdong Poverty Alleviation and Charity Kapok Silver Cup'[105] Section V Significant Matters This section details significant events and commitments, including the fulfillment of promises by controlling shareholders and the actual controller I. Fulfillment of Commitments The company's controlling shareholder and actual controller made long-term effective commitments regarding avoiding horizontal competition, prospectus disclosure, and financial subsidies, which were strictly fulfilled during the reporting period - Haitian Group and the actual controller committed to avoiding horizontal competition, strictly adhering to relevant laws and regulations, and not engaging in businesses identical or similar to the company's[107] - Haitian Group, the listed company, and the actual controller committed to compensating investors for losses in accordance with the law if the prospectus contains false records or similar issues[107] - Haitian Group committed to timely and full compensation if the company incurs losses due to financial subsidies or equity litigation[109] - All commitments have fulfillment periods and were strictly adhered to during the reporting period[107][109] VIII. Alleged Violations, Penalties, and Rectification by the Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller Company employee representative supervisor He Tao engaged in short-swing trading of company shares between September and October 2024, resulting in administrative regulatory measures from the Guangdong Securities Regulatory Bureau, with rectification completed by February 2025 through full repurchase of sold shares - Company employee representative supervisor He Tao was ordered by the Guangdong Securities Regulatory Bureau to repurchase shares sold due to short-swing trading[111] - As of February 2025, He Tao had fully repurchased the company shares he sold, completing the rectification[111] Section VI Share Changes and Shareholder Information This section details changes in share capital and shareholder structure, including the impact of H-share issuance and post-reporting period over-allotment on key financial metrics I. Share Capital Changes The company's share capital increased during the reporting period due to H-share issuance, leading to a corresponding rise in the total number of unrestricted tradable shares, with the impact of post-reporting period over-allotment on EPS and net assets also disclosed 1. Table of Share Capital Changes As of June 30, 2025, the company's total share capital increased by 279,031,700 shares, all being overseas listed foreign shares (H-shares), bringing the total unrestricted tradable shares to 5,839,632,244 shares Table of Share Capital Changes (As of June 30, 2025) | Item | Quantity Before Change | Change (+,-) | Quantity After Change | | :--- | :--- | :--- | :--- | | II. Unrestricted Tradable Shares | 5,560,600,544 | 279,031,700 | 5,839,632,244 | | 3. Overseas Listed Foreign Shares | 0 | 279,031,700 | 279,031,700 | | III. Total Shares | 5,560,600,544 | 279,031,700 | 5,839,632,244 | 2. Explanation of Share Capital Changes On June 19, 2025, 279,031,700 H-shares were listed on the Hong Kong Stock Exchange; post-reporting period, the overall coordinator partially exercised over-allotment options for 12,192,700 H-shares, which were listed on July 21, 2025 - On June 19, 2025, 279,031,700 H-shares of the company were listed and traded on the Main Board of the Hong Kong Stock Exchange[121] - On July 16, 2025, the overall coordinator partially exercised the over-allotment option, involving 12,192,700 H-shares, which commenced trading on July 21, 2025[122] 3. Impact of Share Changes on Financial Indicators such as EPS and Net Assets per Share from Post-Reporting Period to Semi-Annual Report Disclosure Date (If Any) Considering the post-reporting period over-allotment of 12,192,700 shares, the company's total share capital increased to 5,851,824,944 shares, with adjusted EPS of 0.67 yuan and net assets per share of 6.70 yuan Impact of Share Changes on EPS and Net Assets per Share | Indicator | Calculated Based on Total Share Capital as of June 30, 2025 | Calculated Based on Total Share Capital After Considering Over-allotment Shares | | :--- | :--- | :--- | | Total Share Capital | 5,839,632,244 shares | 5,851,824,944 shares | | EPS | 0.67 yuan | 0.67 yuan | | Net Assets per Share | 6.71 yuan | 6.70 yuan | II. Shareholder Information This section discloses the shareholding of the top ten shareholders and top ten unrestricted tradable share shareholders as of the reporting period end, with Guangdong Haitian Group Co., Ltd. as the largest shareholder and HKSCC NOMINEES LIMITED becoming a significant shareholder due to H-share listing (II) Shareholding of Top Ten Shareholders and Top Ten Tradable Shareholders (or Unrestricted Shareholders) as of the Reporting Period End As of June 30, 2025, Guangdong Haitian Group Co., Ltd. held 55.47% of shares, being the largest shareholder, while HKSCC NOMINEES LIMITED became the third largest shareholder with 4.78% due to H-share listing Shareholding of Top Ten Shareholders as of June 30, 2025 | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Guangdong Haitian Group Co., Ltd. | 3,239,509,183 | 55.47 | Domestic Non-state-owned Legal Person | | Pang Kang | 532,115,177 | 9.11 | Domestic Natural Person | | HKSCC NOMINEES LIMITED | 279,029,700 | 4.78 | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | 195,493,977 | 3.35 | Overseas Legal Person | | Cheng Xue | 176,365,478 | 3.02 | Domestic Natural Person | - Pang Kang, Cheng Xue, and four other natural person shareholders of the company are parties acting in concert, and Pang Kang, Cheng Xue, Pan Laican, and Lai Jianping are shareholders of Haitian Group[126] III. Information on Directors, Supervisors, and Senior Management This section discloses changes in shareholdings of the company's directors, supervisors, and senior management, noting that most personnel's holdings remained unchanged, while employee representative supervisor He Tao increased his holdings by 5,500 shares through secondary market purchases (I) Shareholding Changes of Current and Resigned Directors, Supervisors, and Senior Management During the Reporting Period During the reporting period, most directors, supervisors, and senior management, including Chairman Cheng Xue and Director/President Guan Jianghua, saw no change in their shareholdings, while employee representative supervisor He Tao increased his holdings by 5,500 shares through secondary market purchases Shareholding Changes of Directors, Supervisors, and Senior Management | Name | Position | Beginning Shareholding (shares) | Period-end Shareholding (shares) | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cheng Xue | Chairman | 176,365,478 | 176,365,478 | 0 | | | Guan Jianghua | Director, President | 15,409,690 | 15,409,690 | 0 | | | He Tao | Employee Representative Supervisor | 24,700 | 30,200 | 5,500 | Secondary market purchase | | Ke Ying | Board Secretary | 59,421 | 59,421 | 0 | | Section VII Bond-Related Information This section confirms that the company had no corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds), non-financial enterprise debt financing instruments, or convertible corporate bonds[131] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[7] II. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for H1 2025, providing a comprehensive view of its financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 46.81 billion yuan, a 14.56% increase from the prior year-end; total liabilities were 7.11 billion yuan, and total owner's equity was 39.70 billion yuan Key Consolidated Balance Sheet Data (As of June 30, 2025) | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Monetary Funds | 29,998,694,826.32 | 22,114,735,922.46 | | Financial Assets Held for Trading | 6,499,881,190.03 | 7,617,576,114.87 | | Inventories | 1,733,896,513.68 | 2,525,273,760.73 | | Fixed Assets | 5,193,868,716.12 | 5,055,455,572.92 | | Total Assets | 46,808,702,370.19 | 40,858,435,135.91 | | Short-term Borrowings | 137,000,000.00 | 293,464,953.68 | | Contract Liabilities | 1,184,044,539.64 | 4,335,313,046.53 | | Total Liabilities | 7,107,189,714.28 | 9,456,491,552.41 | | Total Equity Attributable to Parent Company Owners | 39,187,210,517.36 | 30,895,407,856.81 | | Total Owners' Equity | 39,701,512,655.91 | 31,401,943,583.50 | Consolidated Income Statement In H1 2025, the company's consolidated total operating revenue was 15.23 billion yuan, a 7.59% YoY increase; net profit was 3.922 billion yuan, up 13.19%; and net profit attributable to parent company shareholders was 3.914 billion yuan, up 13.35% Key Consolidated Income Statement Data (Jan-Jun 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 15,229,923,077.90 | 14,155,910,142.91 | | Total Operating Costs | 10,738,735,598.73 | 10,291,711,771.50 | | Total Profit | 4,651,340,550.25 | 4,076,137,912.99 | | Net Profit | 3,921,771,435.74 | 3,465,187,579.98 | | Net Profit Attributable to Parent Company Shareholders | 3,914,005,023.88 | 3,453,049,852.16 | | Basic EPS (yuan/share) | 0.70 | 0.62 | Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities was 1.505 billion yuan,同比增长33.56%；net cash flow from financing activities significantly increased to 5.452 billion yuan, primarily due to H-share issuance proceeds Key Consolidated Cash Flow Statement Data (Jan-Jun 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,504,938,083.15 | 1,126,773,137.01 | | Net Cash Flow from Investing Activities | -1,271,573,806.79 | -2,182,704,036.67 | | Net Cash Flow from Financing Activities | 5,451,696,480.26 | -3,346,327,589.77 | | Net Increase in Cash and Cash Equivalents | 5,717,580,859.47 | -4,401,908,155.06 | | Period-end Balance of Cash and Cash Equivalents | 17,624,412,184.97 | 8,439,172,341.96 | - Cash inflows from financing activities primarily included 9.18 billion yuan received from investments[151] Consolidated Statement of Changes in Owners' Equity In H1 2025, total equity attributable to parent company owners increased by 8.292 billion yuan, primarily due to significant increases in share capital and capital reserves from H-share issuance, net profit contribution, and profit distribution - Share capital increased by 279.03 million yuan, and capital reserve increased by 8.869 billion yuan in the current period, primarily due to H-share issuance[158] - Total comprehensive income attributable to parent company owners was 3.912 billion yuan[158] - Cash dividends of 4.769 billion yuan were distributed in the current period[158] - Total equity attributable to parent company owners at period-end was 39.187 billion yuan[160] III. Company Basic Information Foshan Haitian Flavouring & Food Co., Ltd. listed A-shares on the Shanghai Stock Exchange in 2014 and H-shares on the Hong Kong Stock Exchange in 2025, primarily engaging in the production and operation of seasonings, soy products, food, and beverages - The company's A-shares were listed on the Main Board of the Shanghai Stock Exchange on February 11, 2014, and H-shares were listed on the Main Board of the Hong Kong Stock Exchange on June 19, 2025[168] - The company and its subsidiaries primarily engage in the production and operation of seasonings, soy products, food, beverages, and packaging materials; processing of agricultural and sideline products; import and export of goods and technology; information consulting services, transportation services, and wholesale and retail of pre-packaged food[168] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis - The company's financial statements are prepared on a going concern basis[169][170] V. Significant Accounting Policies and Estimates This section details the company's adherence to accounting standards, covering accounting periods, business cycles, functional currency, consolidation, financial instruments, revenue recognition, government grants, deferred income tax, and other key policies and estimates to ensure accurate financial reporting - The company's financial statements comply with the Enterprise Accounting Standards issued by the Ministry of Finance and the information disclosure requirements of the China Securities Regulatory Commission, accurately and completely reflecting its financial position and operating results[172] - The company defines its normal operating cycle as the period from the purchase of assets for processing to the realization of cash or cash equivalents, typically less than 12 months[175] - The company's financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[185] - The company recognizes revenue when performance obligations are satisfied, meaning the customer obtains control of the related goods or services, and revenue is recognized over time or at a point in time based on the type of performance obligation[231][232] - The company uses estimates and assumptions in preparing financial statements, continuously assessing key assumptions and uncertainties related to inventory impairment provisions, long-term asset impairment, investment properties, fixed assets, and depreciation and amortization of intangible assets[245][246] VI. Taxation This section outlines the company's main tax categories and rates, along with detailed explanations of corporate income tax preferential policies enjoyed by its subsidiaries, including high-tech enterprise status and Western Development policies 1. Major Tax Categories and Rates The company's main taxes include China VAT (13%, 9%, 6%), Vietnam VAT (10%), China Property Tax (1.2%, 12%), China Urban Maintenance and Construction Tax (7%, 5%), China Education Surcharge (3%), China Local Education Surcharge (2%), and Corporate Income Tax Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | China VAT | Calculated based on sales of goods and taxable services as stipulated by tax laws, with output VAT calculated and input VAT deducted to determine VAT payable | 13%、9%、6% | | Vietnam VAT | Calculated based on sales of goods and taxable services as stipulated by Vietnamese tax laws, with output VAT calculated and input VAT deducted to determine VAT payable | 10% | | China Property Tax | Assessed ad valorem at 1.2% of the property's original value after a one-time 30% deduction; assessed ad rentum at 12% of rental income | 1.2%、12% | | China Urban Maintenance and Construction Tax | Levied on actual turnover taxes paid | 7%、5% | | China Education Surcharge | Levied on actual turnover taxes paid | 3% | | China Local Education Surcharge | Levied on actual turnover taxes paid | 2% | | Corporate Income Tax | Levied on taxable income | Note VI.2 | 2. Tax Incentives Several of the company's subsidiaries benefit from corporate income tax incentives, including a 15% preferential rate for high-tech enterprises, a 20% rate for small low-profit enterprises, and 15% or 9% rates under the Western Development policy - Subsidiaries including Gaoming Haitian, Guangdong Guangzhonghuang, Vinegar Industry Group, Danhe Vinegar Industry, Suqian Haitian, Guangdong Vinegar Industry, and Zhejiang Jiusheng are recognized as high-tech enterprises, applying a 15% preferential corporate income tax rate[249][250][251][252][254] - Subsidiaries including Foshan Haisheng, Guangdong Haiqin, Foshan Yuncang, Hangzhou Jiusheng, Jiusheng Da Jiankang, Guangdong Aiguozhe, Hainan Investment, Tianzhi Engineering, Qianhai Tianyi, Maolong Sauce Factory, and Jiangxi Jiusheng qualify for small low-profit enterprise tax incentives, paying corporate income tax at a 20% preferential rate[253][255][256] - Subsidiaries including Nanning Haitian, Guizhou Jiusheng, Honghe Hongbin, and Laotugan benefit from the Western Development corporate income tax policy, applying a 15% preferential tax rate, with Nanning Haitian also exempt from the local share, effectively paying 9%[256][259] - Xingzhao Global is recognized as a non-domestically registered resident enterprise, applying a 25% corporate income tax rate, and is exempt from corporate income tax on dividends, bonuses, and other equity investment income received from other resident enterprises within China[254] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for consolidated financial statement items, explaining period-end balances, changes, and accounting treatments for monetary funds, financial assets, receivables, payables, inventory, fixed assets, and other key accounts - Period-end monetary funds totaled 29.999 billion yuan, including 11.771 billion yuan in large-denomination certificates of deposit and time deposits with maturities over three months, and 20.57 million yuan in restricted funds[260][262] - Period-end financial assets held for trading totaled 6.499 billion yuan, primarily debt instrument investments, with equity instrument investments amounting to 6.51 million yuan[262] - Period-end accounts receivable totaled 276 million yuan, with bad debt provisions of 13.39 million yuan, primarily accrued based on credit risk characteristics portfolios[269][271] - Period-end inventories totaled 1.734 billion yuan, a 31.34% decrease from the beginning of the period, mainly because large reserves at the start of the year due to Chinese New Year stocking demand at the end of last year returned to normal by the