东南网架(002135) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides important notices, the report's table of contents, and definitions of key terms used throughout the document Important Notice The company's board, supervisory board, and senior management guarantee the accuracy and completeness of the semi-annual report, taking legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[4] - The company plans not to distribute cash dividends, not to send bonus shares, and not to convert capital reserves into share capital[5] Table of Contents The report is structured into nine main sections covering company profile, management discussion, governance, significant events, share changes, bond information, financial reports, and other data - The report's main sections include Company Profile and Key Financial Indicators, Management Discussion and Analysis, Corporate Governance, Environment and Society, Significant Matters, Share Changes and Shareholder Information, Bond-Related Information, Financial Report, and Other Submitted Data[7] Definitions This section defines key terms and entities, including the company, its controlling shareholder, major subsidiaries, and the reporting period - "The Company" refers to Zhejiang Southeast Steel Structure Co., Ltd., and "Controlling Shareholder" refers to Zhejiang Southeast Steel Structure Group Co., Ltd[10] - The reporting period is from January 1, 2025, to June 30, 2025[10] - A list of wholly-owned and controlled subsidiaries, including Tianjin Southeast Company, Zhejiang Southeast Company, and Southeast New Materials Company, is provided[10] Part II Company Profile and Key Financial Indicators This section introduces the company's basic information and presents a summary of its key accounting data and financial performance for the reporting period Company Profile The company, listed on the Shenzhen Stock Exchange as "Southeast Steel Structure" (stock code 002135), maintains unchanged legal representative and contact information - The company's stock abbreviation is "Southeast Steel Structure," stock code 002135, listed on the Shenzhen Stock Exchange[13] - The company's legal representative is Xu Chunxiang[13] - The company's contact information, registered address, office address, and information disclosure channels remained unchanged during the reporting period[15][16] Key Accounting Data and Financial Indicators The company experienced significant year-on-year declines in revenue, net profit, and operating cash flow, while total assets grew and net assets slightly decreased Key Accounting Data and Financial Indicators (This Reporting Period vs. Prior Year Period) | Indicator | This Reporting Period (yuan) | Prior Year Period (Adjusted) (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,537,766,289.06 | 6,240,013,311.63 | -27.28% | | Net Profit Attributable to Shareholders of Listed Company | 42,154,531.41 | 128,821,193.15 | -67.28% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 24,521,605.76 | 107,255,085.95 | -77.14% | | Net Cash Flow from Operating Activities | -1,094,340,325.21 | 234,491,390.92 | -566.69% | | Basic Earnings Per Share (yuan/share) | 0.04 | 0.11 | -63.64% | | Diluted Earnings Per Share (yuan/share) | 0.04 | 0.11 | -63.64% | | Weighted Average Return on Net Assets | 0.65% | 2.01% | -1.36% | | Total Assets (yuan) | 20,690,247,160.13 | 19,616,334,342.02 | 5.47% | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 6,464,678,078.25 | 6,500,601,922.98 | -0.55% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reports no differences in net profit or net assets between domestic and international/overseas accounting standards for the period - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and those under Chinese Accounting Standards[19] - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and those under Chinese Accounting Standards[20] Non-Recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 17.63 million yuan, primarily from asset disposals, government grants, and investment income Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 7,734,926.10 | | Government grants included in current profit/loss | 7,208,055.52 | | Gains/losses from entrusted investment or asset management | 2,985,166.07 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 550,000.00 | | Other non-operating income and expenses apart from the above | 1,623,176.60 | | Less: Income tax impact | 2,465,635.81 | | Minority interest impact (after tax) | 2,762.83 | | Total | 17,632,925.65 | Part III Management Discussion and Analysis This section provides an in-depth analysis of the company's business operations, core competencies, financial performance, investment activities, and risk factors during the reporting period Main Businesses During the Reporting Period The company operates in steel structure, chemical fiber, and new energy sectors, with overall revenue and net profit declining, but new energy showing strong growth Company's Main Businesses, Products, and Uses The company's core businesses include steel structure EPC, polyester filament production, and BIPV new energy solutions - The company's steel structure segment primarily involves the design, manufacturing, installation of steel structure buildings and enclosure systems, as well as general contracting for housing construction and municipal infrastructure projects, providing full-process services[26] - The company's chemical fiber segment primarily focuses on the production and sale of polyester filament, with products including POY, FDY, DTY, and polyester chips, boasting a designed annual production capacity of 500,000 tons[29] - The company's new energy segment mainly operates in the photovoltaic building sector, covering EPC for photovoltaic power stations, operation of photovoltaic power stations, and energy storage, adopting an "assembly + EPC + BIPV" construction model[33] Industry Development Overview The steel structure industry faces pressure but has policy support, chemical fiber is challenged by oversupply, and the BIPV sector is rapidly expanding due to "carbon neutrality" policies - The steel structure industry is under pressure due to slowing global economic growth and domestic real estate adjustments, but national policies support prefabricated buildings and "dual carbon" goals, with steel consumption expected to reach 140 million tons by 2025, accounting for over 15% of crude steel output[37] - The chemical fiber industry experienced a "strong supply, weak demand" situation in H1 2025, with polyester product market prices fluctuating downwards and profitability under pressure, though export volume increased by 14.73% year-on-year[43][44] - Photovoltaic Building Integrated Photovoltaics (BIPV) is rapidly developing under national "carbon neutrality" policies, with national new grid-connected photovoltaic capacity reaching 212 GW in H1 2025, and cumulative installed capacity reaching 1.1 TW, a 54.1% year-on-year increase[48] - China's BIPV market size is projected to reach 400 billion yuan by 2030, with a compound annual growth rate exceeding 20%[49] Main Business Operations During the Reporting Period H1 2025 saw a 27.28% revenue decrease and 67.28% net profit decline, driven by reduced construction orders and chemical fiber losses, while new energy projects offer future growth 2025 H1 Main Business Operating Overview | Indicator | Amount (ten thousand yuan) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 453,776.63 | -27.28% | | Net Profit Attributable to Shareholders of Listed Company | 4,215.45 | -67.28% | - The construction segment actively optimized business orders to reduce accounts receivable collection risk, leading to a decrease in new orders and a reversal in operating revenue and profit[53] - The chemical fiber segment experienced a continuous market downturn in H1, with reduced product price differences, resulting in a significant year-on-year increase in business losses[54] - The new energy segment signed an investment cooperation agreement with the Puyang Town People's Government of Xiaoshan District, Hangzhou, for the "Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Project," expected to be completed and grid-connected in 2026, creating an integrated development demonstration project[55] Analysis of Core Competencies The company leverages "green, low-carbon, healthy, and smart development" strategies to build core competencies in business models, technology, digitalization, talent, and brand image Business Model Advantages The company integrates prefabricated steel structures with EPC general contracting, aiming to be a leading brand in new prefabricated hospitals and schools - The company unswervingly implements a "EPC General Contracting + No. 1 Project" dual-engine development strategy, integrating prefabricated steel structures with EPC general contracting[58] - The company is committed to becoming the leading brand for new prefabricated hospitals and schools in China[58] Technological R&D Advantages Adhering to a "quality-first, high-end winning" strategy, the company has developed ten core technologies, holds over 500 patents, and received numerous national and provincial awards - The company has developed ten core technologies, including structural construction technology for major national scientific facilities, rotating retractable roof technology, and integrated construction technology for large public buildings, with five of these being world-leading[59] - As of now, the company holds over 500 patents (including 2 international patents and 136 invention patents), 48 software copyrights, and has received 60 provincial and ministerial-level science and technology awards including the National Science and Technology Progress First Prize[60] Digital and Intelligent Development Advantages By integrating BIM, cloud computing, and AI, the company has achieved digital management and construction, establishing an industry-first 200,000-ton digital factory for prefabricated steel structures - The company integrates BIM, cloud computing, and artificial intelligence technologies to achieve digital management and construction, utilizing information tools such as CRM, ERP, OA, WMS, SRM, BIM, and production management systems[62] - The company invested in and built the industry's first "200,000-ton New Prefabricated Steel Structure Digital Factory," listed as a key implementation project in Hangzhou, which is expected to reduce labor demand by approximately 20% and significantly improve product quality and management efficiency upon completion[62] Innovative Team Advantages The company has established 15 national and provincial innovation platforms, collaborates with universities, and boasts a nearly 400-strong R&D team with a high proportion of senior professionals - The company has established 15 innovation platforms, including a national enterprise technology center, a postdoctoral research workstation, and an academician expert workstation, and has built close technical cooperation relationships with multiple universities and research institutions[63] - The company has nearly 400 design and R&D personnel, including nearly 300 senior and mid-level talents such as professor-level senior engineers, doctors, and masters[65] Brand Image Advantages With a market positioning of "high-end, precision, cutting-edge, difficult," the company has completed major national projects and received numerous prestigious awards, establishing a high-quality brand image - The company has completed major national projects such as the world's largest 500-meter aperture spherical radio telescope "China Sky Eye" and the 2022 Hangzhou Asian Games main stadium[66] - The company has received numerous awards, including the National Science and Technology Progress First Prize, 58 Luban Awards, 8 Zhan Tianyou Awards, 22 National Quality Engineering Awards, and 169 China Steel Structure Gold Awards[67] Main Business Analysis Main business revenue declined 27.28% due to the construction sector, though photovoltaic revenue surged 186.36% and EPC general contracting grew 6.53% Year-on-Year Changes in Key Financial Data Revenue and cost decreased by approximately 27%, while sales and R&D expenses significantly dropped. Operating cash flow deteriorated sharply due to trade payments, and financing cash flow increased from higher borrowings Key Financial Data Year-on-Year Changes | Indicator | This Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,537,766,289.06 | 6,240,013,311.63 | -27.28% | | | Operating Cost | 4,176,669,350.95 | 5,742,483,004.11 | -27.27% | | | Selling Expenses | 7,515,601.75 | 15,000,741.63 | -49.90% | Primarily due to reduced selling expenses in this period | | R&D Investment | 108,717,415.06 | 178,667,340.85 | -39.15% | Primarily due to reduced R&D expenses in this period | | Net Cash Flow from Operating Activities | -1,094,340,325.21 | 234,491,390.92 | -566.69% | Primarily due to payments for trade activities in this period | | Net Cash Flow from Financing Activities | 1,698,863,838.24 | 617,369,756.95 | 175.18% | Primarily due to increased borrowings in this period | Composition of Operating Revenue Total operating revenue decreased by 27.28%. Construction revenue, accounting for 68.92%, fell 31.18%, chemical fiber revenue dropped 21.02%, while photovoltaic revenue surged 186.36%. EPC general contracting revenue grew 6.53%, contrasting with a 53.20% decline in steel structure subcontracting Operating Revenue Composition (by Industry) | Industry | Amount This Reporting Period (yuan) | Proportion of Operating Revenue | Amount Prior Year Period (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Industry | 3,127,282,658.84 | 68.92% | 4,544,371,595.85 | 72.83% | -31.18% | | Chemical Fiber Industry | 1,237,695,737.60 | 27.28% | 1,567,106,366.37 | 25.11% | -21.02% | | Photovoltaic Industry | 68,970,830.00 | 1.52% | 24,085,561.41 | 0.39% | 186.36% | Operating Revenue Composition (by Product) | Product | Amount This Reporting Period (yuan) | Proportion of Operating Revenue | Amount Prior Year Period (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | EPC General Contracting | 1,784,461,201.14 | 39.32% | 1,675,083,765.03 | 26.84% | 6.53% | | Steel Structure Subcontracting | 1,342,821,457.70 | 29.59% | 2,869,287,830.82 | 45.98% | -53.20% | | Chemical Fiber | 1,237,695,737.60 | 27.28% | 1,567,106,366.37 | 25.11% | -21.02% | | Photovoltaic Power Generation | 68,970,830.00 | 1.52% | 24,085,561.41 | 0.39% | 186.36% | Main Business Gross Profit Margin Changes | Business Type | Gross Profit Margin This Reporting Period | Gross Profit Margin Prior Year Period | Change in Gross Profit Margin from Prior Year Period | | :--- | :--- | :--- | :--- | | Construction Industry | 9.84% | 9.37% | 0.47% | | Chemical Fiber Industry | 0.46% | 2.08% | -1.62% | | EPC General Contracting | 9.26% | 8.91% | 0.35% | | Steel Structure Subcontracting | 10.60% | 9.64% | 0.96% | | Chemical Fiber | 0.46% | 2.08% | -1.62% | Non-Core Business Analysis Non-core businesses, including investment income, asset impairment, and other gains/losses, contributed marginally to total profit and are generally not sustainable Impact of Non-Core Businesses on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | 6,113,747.53 | 7.24% | No | | Credit Impairment Losses | 18,868,742.47 | 22.36% | No | | Gains from Asset Disposal | 8,047,825.56 | 9.54% | No | | Other Income | 14,158,118.56 | 16.78% | No | Analysis of Assets and Liabilities Total assets increased by 5.47% YoY. Significant changes include increased cash, prepayments, and short-term borrowings, while accounts receivable and contract assets decreased. Over 2 billion yuan in assets are restricted due to guarantees and legal freezes Significant Changes in Asset Composition Total assets increased by 5.47%. Cash, prepayments, and short-term borrowings significantly increased, while accounts receivable and contract assets decreased Significant Changes in Asset Composition | Item | Amount at End of Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 2,910,729,903.61 | 14.07% | 2,359,528,257.48 | 12.03% | 2.04% | | Accounts Receivable | 4,124,449,569.71 | 19.93% | 4,531,957,835.33 | 23.10% | -3.17% | | Contract Assets | 7,185,003,794.48 | 34.73% | 7,349,591,033.43 | 37.47% | -2.74% | | Prepayments | 1,286,729,347.19 | 6.22% | 346,610,862.66 | 1.77% | 4.45% | | Short-term Borrowings | 4,604,718,608.13 | 22.26% | 3,152,583,281.27 | 16.07% | 6.19% | | Long-term Borrowings | 753,161,734.27 | 3.64% | 379,879,878.91 | 1.94% | 1.70% | - Prepayments significantly increased by 4.45%, primarily due to trade activities of subsidiary Southeast International Trade (Hainan) Co., Ltd[76] - Short-term borrowings increased by 6.19%, primarily due to increased short-term borrowings in this period[76] Assets and Liabilities Measured at Fair Value Fair value measured financial assets, totaling 309.87 million yuan, primarily include other equity instrument investments and accounts receivable financing Fair Value Measured Financial Assets at Period-End | Item | Period-End Amount (yuan) | | :--- | :--- | | Other equity instrument investments | 30,000,001.00 | | Accounts receivable financing | 279,873,663.63 | | Total | 309,873,664.63 | Asset Restrictions as of the End of the Reporting Period As of the reporting period end, 2.02 billion yuan in assets are restricted, mainly cash, accounts receivable, and fixed assets, due to guarantees, legal freezes, and pledges Asset Restrictions at Period-End | Item | Period-End Book Balance (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 927,000,951.41 | Margin deposits, judicial freeze due to litigation | | Accounts Receivable | 563,803,617.18 | Pledge for borrowings | | Other Non-current Assets | 303,131,479.31 | Pledge for borrowings | | Fixed Assets | 169,629,121.00 | Mortgage for borrowings and notes | | Intangible Assets | 17,466,937.35 | Mortgage for borrowings and notes | | Total | 2,022,405,910.40 | | Analysis of Investment Status Total investment decreased by 7.62% YoY. Major non-equity investment is the "Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Project," with 69.11 million yuan invested. Raised funds are 75.37% utilized, primarily for two EPC projects Overall Situation Total investment for the reporting period was 57.30 million yuan, a 7.62% decrease from the previous year Reporting Period Investment Amount | Indicator | Amount (yuan) | | :--- | :--- | | Investment amount for the reporting period | 57,295,335.72 | | Investment amount for the prior year period | 62,020,961.18 | | Change percentage | -7.62% | Significant Non-Equity Investments in Progress During the Reporting Period The "Xiaoshan (Puyang) Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Power Station Project" is a major non-equity investment with a total budget of 6.81 billion yuan, 69.11 million yuan invested, and 2.19% progress Major Non-Equity Investment Project Overview | Project Name | Investment Method | Total Investment (ten thousand yuan) | Cumulative Investment Amount as of Period-End (ten thousand yuan) | Investment Progress as of Period-End | | :--- | :--- | :--- | :--- | :--- | | Xiaoshan (Puyang) Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Power Station Project | Self-built | 681,151.028 | 6,910.566.88 | 2.19% | Use of Raised Funds The company issued 2 billion yuan in convertible bonds in January 2024, with 1.50 billion yuan (75.37%) utilized by the end of the reporting period, mainly for two EPC projects Overall Use of Raised Funds | Total Raised Funds (ten thousand yuan) | Net Raised Funds (ten thousand yuan) | Cumulative Amount of Raised Funds Used (ten thousand yuan) | Proportion of Raised Funds Used at Period-End | | :--- | :--- | :--- | :--- | | 200,000 | 198,623.15 | 149,702.87 | 75.37% | - The Xiaoshan Xidian Electronic Technology Industrial Park EPC General Contracting Project achieved a cumulative gross profit margin of 14.75%, meeting expected benefits[92] - The Hangzhou International Expo Center Phase II Plot EPC General Contracting Project achieved a cumulative gross profit margin of 12.48%, but has not yet met expected benefits[92] - The company used idle raised funds not exceeding 400 million yuan to temporarily supplement working capital, with 400 million yuan utilized as of the end of the reporting period[94] Analysis of Major Holding and Participating Companies Key subsidiaries include Guangzhou Wuyang, Tianjin Southeast, Chengdu Southeast, Zhejiang Southeast, Zhejiang Southeast Green Building, and Southeast New Materials. Southeast New Materials' loss significantly increased, while Zhejiang Southeast Green Building and Zhejiang Southeast Steel Structure reported higher net profits Major Holding and Participating Companies Financial Overview | Company Name | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | | Guangzhou Wuyang Steel Structure Co., Ltd. | 23,436,503.04 | 3,091,236.57 | | Tianjin Southeast Steel Structure Co., Ltd. | 213,851,792.15 | 5,699,219.11 | | Chengdu Southeast Steel Structure Co., Ltd. | 262,516,187.03 | -7,313,154.31 | | Zhejiang Southeast Steel Structure Co., Ltd. | 218,522,190.23 | 15,403,035.21 | | Zhejiang Southeast Green Building Integrated Technology Co., Ltd. | 598,657,463.48 | 16,916,633.00 | | Southeast New Materials (Hangzhou) Co., Ltd. | 1,248,836,758.01 | -47,635,812.11 | - Southeast New Materials (Hangzhou) Co., Ltd. reported a net profit of -47,635,812.11 yuan in H1, with the loss significantly increasing year-on-year[99] - During the reporting period, the company established Zhejiang Wenchao New Energy Co., Ltd., Zhejiang Qihang Intelligent Manufacturing Co., Ltd., and Hangzhou Linkai Thermal Power Co., Ltd., absorbed and merged Zhejiang Southeast Steel Structure Foster Carbon Neutral Technology Co., Ltd., and transferred equity of Hangzhou Changrui Construction Engineering Co., Ltd[100] Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic cycles, market competition, raw material price fluctuations, and accounts receivable collection. Countermeasures include policy adjustments, innovation, refined management, and enhanced collection efforts Macroeconomic Cycle Risk The steel structure industry is sensitive to macroeconomic policies and fixed asset investment, currently facing a downturn, which may impact profitability. The company will adjust operations and enhance competitiveness - Changes in macroeconomic policies and slowing economic growth will impact the company's long-term development, as the construction steel structure industry enters a downturn, with overall efficiency at a relatively low level in recent years[100] - The company will closely monitor changes in domestic and international macroeconomic conditions and policies, timely adjust its operating policies, and enhance market competitiveness and operational management capabilities[101] Intensified Market Competition Risk The highly competitive and fragmented steel structure industry poses risks to business growth and profitability. The company will focus on innovation, new quality productive forces, and refined management for cost reduction - The construction steel structure industry is a fully competitive industry with a large number of small and medium-sized enterprises and low industry concentration, leading to intense market competition[102] - The company will increase R&D in upgraded prefabricated integrated technology, intelligent construction technology, photovoltaic energy storage technology, etc., to enhance core competitiveness, and strengthen refined management to focus on cost reduction and efficiency improvement[103] Risk of Significant Fluctuations in Raw Material Prices Fluctuations in steel and polyester filament prices significantly impact costs and profitability. The company will enhance procurement, manage strategic suppliers, and use EPC models to mitigate this risk - The main raw material for the company's steel structure production is steel, and price fluctuations of PTA and MEG for polyester filament business directly affect costs and profits[104] - The company will continuously track raw material price trends, increase the proportion of centralized procurement, strengthen strategic supplier management, and reduce the proportion of steel costs in total costs to 5-10% through the EPC model, thereby lowering sensitivity[105] Accounts Receivable Collection Risk Large accounts receivable balances pose a risk to cash flow and performance if collection is unsuccessful or customer credit deteriorates. The company will strengthen project management, collection efforts, and integrate collection into performance reviews - The company has a large balance of accounts receivable, and the net amount of accounts receivable accounts for a high proportion of total assets; unfavorable collection will affect cash flow and operating cash flow[106] - The company will strengthen project management and contract performance, establish a sound accounts receivable management system, intensify collection efforts, and incorporate collection tasks into sales personnel's key performance indicators[108] Implementation of Market Value Management System and Valuation Enhancement Plan The company approved its "Zhejiang Southeast Steel Structure Co., Ltd. Valuation Enhancement Plan" on April 18, 2025, to improve investment value - The company held a board meeting on April 18, 2025, and approved the "Proposal on Formulating the <Zhejiang Southeast Steel Structure Co., Ltd. Valuation Enhancement Plan>"[109] Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period[110] Part IV Corporate Governance, Environment, and Society This section covers changes in company governance, profit distribution, employee incentives, environmental information disclosure, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - The company's directors, supervisors, and senior management experienced no changes during the reporting period[111] Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions for the semi-annual period - The company plans not to distribute cash dividends, not to send bonus shares, and not to convert capital reserves into share capital for the semi-annual period[112] Implementation of 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 in place during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[113] Environmental Information Disclosure The company and three major subsidiaries are listed as legally required environmental information disclosure enterprises, with reports available on provincial ecological environment department systems - The company and its 3 major subsidiaries are included in the list of enterprises required to disclose environmental information by law[114] - Environmental information disclosure reports for Zhejiang Southeast Steel Structure Co., Ltd., Southeast New Materials (Hangzhou) Co., Ltd., and Chengdu Southeast Steel Structure Co., Ltd. can be found on the respective provincial ecological environment department systems[114] Social Responsibility The company actively pursues "carbon peaking and carbon neutrality" goals by developing new energy businesses, exemplified by the "Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Project" to promote integrated green development and rural revitalization - The company actively fulfills its social responsibilities, practices "carbon peaking and carbon neutrality" goals, continuously pursues a path of green and low-carbon development, and vigorously develops new energy businesses through multiple measures[115] - The company's wholly-owned grandchild company, Zhejiang Xingneng Technology Co., Ltd., plans to invest in and construct the "Xiaoshan (Puyang) Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Project," exploring integrated development of "green building + photovoltaic energy storage + modern agriculture + modern service industry"[115] Part V Significant Matters This section details commitments, related party transactions, guarantees, litigation, and other significant events affecting the company during the reporting period Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period As of the end of the reporting period, there were no overdue unfulfilled commitments by the company's controlling shareholder, shareholders, related parties, acquirers, or the company - The company's reporting period shows no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled during the reporting period or overdue and unfulfilled as of the end of the reporting period[117] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties - The company's reporting period shows no non-operating funds occupied by the controlling shareholder or other related parties of the listed company[118] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company's reporting period shows no irregular external guarantees[119] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[120] Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for This Reporting Period As the semi-annual report was unaudited, there is no non-standard audit report to explain - The company's semi-annual report was unaudited, so this explanation is not applicable[121] Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year The company did not have a non-standard audit report for the previous year - The company had no non-standard audit report for the previous year, so this explanation is not applicable[121] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company experienced no bankruptcy or reorganization matters during the reporting period[121] Litigation Matters The company had no major litigation or arbitration during the period, but was involved in multiple other construction contract disputes. As of the reporting period end, the company was a plaintiff in cases totaling 689.94 million yuan and a defendant in cases totaling 34.75 million yuan - The company had no major litigation or arbitration matters during the reporting period[122] - As of the end of the reporting period, the total amount involved in unadjudicated litigation cases where the company was the plaintiff was 689.9411 million yuan, with some cases still in the trial stage or awaiting hearing[126] - As of the end of the reporting period, the total amount involved in unadjudicated litigation cases where the company was the defendant was 34.7527 million yuan, with some cases still in the trial stage or awaiting hearing[126] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company experienced no penalties or rectification situations during the reporting period[127] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller had no unfulfilled court judgments or significant overdue debts during the reporting period - The company, its controlling shareholder, and actual controller had no unfulfilled court judgments or significant overdue debts as of the end of the reporting period[128] Significant Related Party Transactions The company engaged in routine related party transactions for procurement, sales, and services, all within approved limits. No other significant related party transactions, such as asset/equity acquisitions, joint investments, or debt transfers, occurred Routine Related Party Transactions Overview | Related Party | Related Transaction Content | Amount This Period (ten thousand yuan) | Approved Transaction Limit (ten thousand yuan) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Southeast Steel Structure Group Co., Ltd. | Procurement of raw materials | 16,556.28 | 60,000 | No | | Zhejiang Southeast Steel Structure Group Co., Ltd. | Sale of goods, provision of services | 4,050.11 | 20,000 | No | | Hangzhou Haotian Property Management Co., Ltd. | Acceptance of property services | 370.75 | 600 | No | | Hangzhou Aoming Trade Co., Ltd. | Procurement of raw materials | 198.51 | 1,000 | No | | Zhejiang Southeast New Material Technology Co., Ltd. | Sale of goods, provision of services | 353.55 | 1,200 | No | | Total | | 21,529.2 | 82,800 | | - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[131] - The company had no related party transactions involving joint external investment during the reporting period[132] - The company had no related party debt transactions during the reporting period[133] Significant Contracts and Their Performance The company had no trust, contracting, or leasing arrangements. It provided significant joint liability guarantees for subsidiaries and engaged in 100 million yuan in bank wealth management. No other significant contracts existed - The company had no trust, contracting, or leasing arrangements during the reporting period[137][138][139][140] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (ten thousand yuan) | Actual Guarantee Amount (ten thousand yuan) | Guarantee Type | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Taizhou Southeast Steel Structure Fangyuan Education Investment Co., Ltd. | 31,500 | 16,900 | Joint and several liability guarantee | No | | Pan'an Southeast Steel Structure Medical Investment Co., Ltd. | 17,000 | 10,400 | Joint and several liability guarantee | No | | Southeast New Materials (Hangzhou) Co., Ltd. | 65,000 | 26,559.64 | Joint and several liability guarantee | No | | Tianjin Southeast Steel Structure Co., Ltd. | 25,000 | 3,082.69 | Joint and several liability guarantee | No | | Chengdu Southeast Steel Structure Co., Ltd. | 38,000 | 14,685.29 | Joint and several liability guarantee | No | | Zhejiang Southeast Green Building Integrated Technology Co., Ltd. | 36,200 | 13,660.72 | Joint and several liability guarantee | No | | Zhejiang Southeast Steel Structure Co., Ltd. | 15,960 | 3,407.57 | Joint and several liability guarantee | No | | Zhejiang Southeast Steel Products Co., Ltd. | 7,400 | 4,726.7 | Joint and several liability guarantee | No | | Zhejiang Southeast Carbon Neutral Technology Co., Ltd. | 6,963.5 | 2,827.11 | Joint and several liability guarantee | No | | Total Approved Guarantee Limit for Subsidiaries at Period-End | 300,023.5 | | | | | Total Actual Guarantee Balance at Period-End | | 170,982 | | | Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (ten thousand yuan) | Unmatured Balance (ten thousand yuan) | | :--- | :--- | :--- | :--- | | Bank wealth management products | Own funds | 100,000 | 0 | - The company had no other significant contracts during the reporting period[148] Explanation of Other Significant Matters The company approved the investment in the "Xiaoshan (Puyang) Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Power Station Project" on February 10, 2025, with a total investment of approximately 500 million yuan, currently under construction - The company's wholly-owned grandchild company, Zhejiang Xingneng Technology Co., Ltd., plans to invest in and construct the Xiaoshan (Puyang) Zero-Carbon Taoyuanli 110MW Agro-Photovoltaic Power Station Project[149] - The project has a total investment of approximately 500 million yuan, adopts an "agro-photovoltaic complementary" development model, has commenced construction, and is expected to be completed and grid-connected in 2026[149] Significant Matters of Company Subsidiaries There were no significant matters concerning the company's subsidiaries during the reporting period - The company's subsidiaries had no significant matters during the reporting period[150] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and changes in holdings by directors, supervisors, and senior management Share Change Status The company's total shares increased by 1,443 due to convertible bond conversions, with the proportion of restricted and unrestricted shares remaining unchanged Share Change Status | Share Class | Quantity Before This Change (shares) | Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 71,650,418 | 0 | 71,650,418 | | II. Unrestricted Shares | 1,043,865,269 | 1,443 | 1,043,866,712 | | III. Total Shares | 1,115,515,687 | 1,443 | 1,115,517,130 | - During the reporting period, a total of 8,200.00 yuan of Southeast Convertible Bonds were converted into 1,443 company shares, leading to an increase in total shares[154] Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[154] Number of Shareholders and Shareholding Status As of the reporting period end, the company had 50,036 common shareholders. The controlling shareholder, Zhejiang Southeast Steel Structure Group Co., Ltd., held 28.19%, and together with its subsidiary, held 34.90% - The total number of common shareholders at the end of the reporting period was 50,036[155] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Southeast Steel Structure Group Co., Ltd. | Domestic non-state-owned legal person | 28.19% | 314,515,000 | 314,515,000 | | Hangzhou Haotian Property Management Co., Ltd. | Domestic non-state-owned legal person | 6.71% | 74,860,000 | 74,860,000 | | Guo Mingming | Domestic natural person | 4.52% | 50,445,991 | 12,611,498 | - The controlling shareholder, Zhejiang Southeast Steel Structure Group Co., Ltd., directly and indirectly held a total of 34.90% of the company's shares[157] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - The shareholdings of the company's directors, supervisors, and senior management experienced no changes during the reporting period[158] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder experienced no changes during the reporting period[159] - The company's actual controller experienced no changes during the reporting period[159] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[160] Part VII Bond-Related Information This section provides details on the company's convertible bonds, including issuance, changes, conversion, and credit ratings, as well as other debt instruments Corporate Bonds The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[162] Company Bonds The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[163] Non-Financial Enterprise Debt Financing Instruments The company had no non-financial enterprise debt financing instruments during the reporting period - The company had no non-financial enterprise debt financing instruments during the reporting period[164] Convertible Corporate Bonds The company issued 2 billion yuan in "Southeast Convertible Bonds" in January 2024. During the period, 8,200 yuan was converted into 1,443 shares. The conversion price was adjusted multiple times to 5.60 yuan/share. The company and bond maintain an "AA" stable credit rating, with sufficient cash flow for repayment Convertible Bond Issuance The company issued 20 million convertible bonds totaling 2 billion yuan in January 2024, which began trading on the Shenzhen Stock Exchange as "Southeast Convertible Bonds" (code 127103) - The company issued 20 million convertible bonds on January 3, 2024, raising a total of 2 billion yuan, with net proceeds of 1,986,231,480.13 yuan[165] - The company's convertible bonds began trading on the Shenzhen Stock Exchange on January 24, 2024, with the bond abbreviation "Southeast Convertible Bonds" and bond code "127103"[165] Convertible Bond Guarantor and Top Ten Holders During the Reporting Period "Southeast Convertible Bonds" have no guarantor. As of the reporting period end, there were 18,976 holders, with Zhejiang Southeast Steel Structure Group Co., Ltd. being the largest holder at 16.33% - "Southeast Convertible Bonds" have no guarantor[166] - The number of convertible bond holders at period-end was 18,976[166] - Zhejiang Southeast Steel Structure Group Co., Ltd. held 3,265,281 convertible bonds, accounting for 16.33%, making it the largest holder[167] Convertible Bond Changes During the Reporting Period During the reporting period, the company's convertible bonds decreased by 8,200 yuan due to conversions into shares Convertible Corporate Bond Changes | Convertible Corporate Bond Name | Amount Before This Change (yuan) | Increase/Decrease in This Change (Conversion) (yuan) | Amount After This Change (yuan) | | :--- | :--- | :--- | :--- | | Zhejiang Southeast Steel Structure Co., Ltd. Convertible Bonds Issued to Unspecified Objects | 1,999,910,300.00 | 8,200.00 | 1,999,902,100.00 | Cumulative Conversion Status As of the reporting period end, cumulative conversions for "Southeast Convertible Bonds" totaled 97,900 yuan, resulting in 17,336 shares, with 1,999,902,100 yuan (100.00% of total issuance) yet to be converted Southeast Convertible Bonds Cumulative Conversion Status | Convertible Corporate Bond Name | Total Issued Amount (bonds) | Total Issued Amount (yuan) | Cumulative Conversion Amount (yuan) | Cumulative Converted Shares (shares) | Unconverted Amount (yuan) | Proportion of Unconverted Amount to Total Issued Amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Southeast Steel Structure Co., Ltd. Convertible Bonds Issued to Unspecified Objects | 20,000,000 | 2,000,000,000.00 | 97,900.00 | 17,336 | 1,999,902,100.00 | 100.00% | History of Conversion Price Adjustments and Revisions The conversion price of "Southeast Convertible Bonds" was adjusted from an initial 5.73 yuan/share to 5.60 yuan/share due to profit distributions and share cancellations - On May 30, 2024, the conversion price was adjusted from 5.73 yuan/share to 5.63 yuan/share due to the 2023 annual profit distribution[172] - On November 12, 2024, the conversion price was adjusted from 5.63 yuan/share to 5.67 yuan/share due to the cancellation of repurchased shares[172] - On May 23, 2025, the conversion price was adjusted from 5.67 yuan/share to 5.60 yuan/share due to the 2024 annual profit distribution[172] Company's Debt, Credit Changes, and Cash Arrangements for Future Debt Repayment as of the End of the Reporting Period The company maintains an "AA" stable credit rating for both itself and "Southeast Convertible Bonds." With stable operations, ample cash flow, and reasonable asset-liability ratios, the company has made arrangements for future bond interest and principal repayments - Shanghai New Century Credit Rating Investment Services Co., Ltd. maintained the company's corporate credit rating at "AA" with a "stable" outlook, and maintained the credit rating of "Southeast Convertible Bonds" at "AA"[174] - The company's operations are stable, cash flow is ample, asset scale and profitability are steadily growing, and the asset-liability ratio remains at a reasonable level, indicating good credit standing and arrangements for future payment of convertible bond interest and principal[174] Consolidated Statement Scope Loss Exceeding 10% of Net Assets at Year-End The company did not experience a consolidated statement scope loss exceeding 10% of net assets at the previous year-end during the reporting period - The company's reporting period shows no consolidated statement scope loss exceeding 10% of net assets at the previous year-end[175] Key Accounting Data and Financial Indicators for the Past Two Years as of the End of the Reporting Period As of the reporting period end, the company's current ratio and asset-liability ratio slightly increased, while