鲁信创投(600783) - 2025 Q2 - 季度财报

Important Notice Board Statement and Responsibility The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility. - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[3] - All company directors attended the board meeting, and this semi-annual report is unaudited[3] Forward-Looking Statements and Risk Disclosure Forward-looking statements regarding future plans and strategies are not substantive commitments, cautioning investors about investment risks, with no significant adverse risks identified during the reporting period. - Forward-looking descriptions of future plans and development strategies in this report do not constitute substantive commitments by the company to investors, who should be aware of investment risks[3] - During the reporting period, the company found no significant risks that would adversely affect its future development strategy or ongoing operations[4] Section I Definitions Definitions of Common Terms This section defines common terms used in the report, including abbreviations for the company, its controlling shareholder, major subsidiaries, and various funds, ensuring accurate understanding. - This section primarily lists common terms and their corresponding full names or meanings, such as "Luxin Venture" referring to "Luxin Venture Capital Group Co., Ltd." and "Luxin Group" referring to "Shandong Luxin Investment Holdings Group Co., Ltd."[8][9][10] Section II Company Profile and Key Financial Indicators Company Basic Information This section outlines the company's Chinese name, abbreviation, foreign name, and legal representative. - The company's Chinese name is Luxin Venture Capital Group Co., Ltd., abbreviated as Luxin Venture, with Wang Xudong as the legal representative[12] Contact Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email. - Han Jun is the Board Secretary, He Yanan is the Securities Affairs Representative, both located at Tower A, No. 2788 Aoti West Road, Jinan City, Shandong Province[13] Registered and Office Address The company's registered address is in Zibo City, and its office address is in Jinan City, with no changes during the reporting period. - The company's registered address is No. 129 Yumin Road, High-tech Industrial Development Zone, Zibo City, and its office address is Tower A, No. 2788 Aoti West Road, Jinan City, Shandong Province[14] Information Disclosure Channels The company designates "Shanghai Securities News" and other newspapers for information disclosure, publishes reports on the SSE website, and keeps them at the Board Secretary's office. - The company designates "Shanghai Securities News," "China Securities Journal," and "Securities Times" for information disclosure, with reports published on www.sse.com.cn[15](index=15&type=chunk) Stock Information The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation "Luxin Venture" and code 600783. - The company's stock type is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation Luxin Venture and stock code 600783[16] Key Accounting Data and Financial Indicators During the reporting period, operating revenue increased by 3.67% year-on-year, but total profit and net profit attributable to parent company decreased by 21.29% and 7.97% respectively, mainly due to the combined impact of investment income and fair value changes. Major Accounting Data (Jan-Jun 2025 vs. Prior Year) | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Year (Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 41,043,487.87 | 39,590,483.16 | 3.67 | | Total Profit | 243,430,901.62 | 309,283,357.18 | -21.29 | | Investment Income | 251,721,113.76 | 50,242,658.76 | 401.01 | | Fair Value Change Income | 63,534,957.42 | 350,584,788.30 | -81.88 | | Net Profit Attributable to Listed Company Shareholders | 217,405,040.88 | 236,241,400.91 | -7.97 | | Net Cash Flow from Operating Activities | -16,449,725.15 | -1,521,525.39 | Not Applicable | | Net Assets Attributable to Listed Company Shareholders (Period-End) | 4,552,870,386.26 | 4,697,377,654.42 | -3.08 | | Total Assets (Period-End) | 9,140,437,299.53 | 8,974,147,453.89 | 1.85 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year) | Indicator | Current Period (Jan-Jun) | Prior Year | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.29 | 0.32 | -9.38 | | Diluted Earnings Per Share (Yuan/share) | 0.29 | 0.32 | -9.38 | | Basic EPS After Non-Recurring Gains and Losses (Yuan/share) | 0.28 | 0.32 | -12.50 | | Weighted Average Return on Net Assets (%) | 4.68 | 5.01 | Decrease of 0.33 percentage points | | Weighted Average ROE After Non-Recurring Gains and Losses (%) | 4.52 | 5.00 | Decrease of 0.48 percentage points | - Investment income increased by 401.01% this period compared to the prior period, primarily due to gains from the termination of Longli Bio equity measurement and increased fund distribution income[18] - Fair value change income decreased by 81.88% this period compared to the prior period, mainly due to reduced project valuation gains and secondary market fluctuations[18] Analysis of Non-Recurring Gains and Losses The company disclosed non-recurring gains and losses totaling 7,646,534.34 Yuan, while classifying equity investment disposal gains and fair value changes as normal operating income. Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 8,194,611.40 | | Government grants recognized in current profit or loss | 88,821.56 | | Fund occupation fees received from non-financial enterprises recognized in current profit or loss | 1,676,533.21 | | Other non-operating income and expenses | -14,663.91 | | Other items meeting the definition of non-recurring gains and losses | 70,921.33 | | Less: Income tax impact | 2,356,588.65 | | Impact on minority interests (after tax) | 13,100.60 | | Total | 7,646,534.34 | - The company classifies gains from equity investment disposal, fair value changes, and entrusted asset management as normal operating income, not non-recurring gains and losses[21] Section III Management Discussion and Analysis Industry and Main Business Overview The company's main businesses are venture capital and abrasive manufacturing, with venture capital being the primary profit driver, while the abrasive industry's revenue and profit continue to decline. - The company's main businesses are venture capital and abrasive manufacturing, with venture capital being the primary source of profit[24] - The venture capital business model involves equity investment through self-owned funds or by initiating private equity investment funds, aiming for capital appreciation through equity transfer[25] - In the first half of 2025, China's equity investment market saw a 12.1% increase in new funds raised and 12.0% in scale year-on-year, with investment cases up 21.9%, and hard technology sectors (IT, semiconductors, biomedicine, etc.) were market hotspots[26] - In the first half of 2025, the abrasive industry's operating revenue and total profit continued to decline, with cumulative imports of $360 million and cumulative exports of $1.58 billion[25] Operating Performance Analysis The company's equity investment business募资规模达222.02亿元, completed 14 primary investments totaling 514 million Yuan, with 2 IPOs and 20 planned IPO projects, while the abrasive business revenue grew to 27.2626 million Yuan. - As of the end of the reporting period, the company, as a lead initiator, had established 59 funds and investment platforms, with a total subscribed capital of 22.202 billion Yuan and paid-in capital of 15.073 billion Yuan[27] - During the reporting period, the company completed 14 primary investment projects with a total investment of 514 million Yuan, primarily in biomedicine, medical equipment, and high-end equipment manufacturing industries[27] Funded Projects During the Reporting Period (Partial) | No. | Industry | Project Name | Region | Fund Investment Amount (100 million Yuan) | | :--- | :--- | :--- | :--- | :--- | | 3 | Biomedicine and Medical Equipment | Beijing Weimai Medical Technology Co., Ltd. | Beijing | 0.30 | | 5 | High-end Chemicals | Xinyuan Chemical (Shandong) Co., Ltd. | Weihai | 0.26 | | 7 | High-end Equipment Manufacturing | Lingong Heavy Machinery Co., Ltd. | Jinan | 2.88 | | 13 | Information Technology Hardware and Equipment | Chengdu Hongke Electronic Technology Co., Ltd. | Chengdu | 0.60 | | 14 | Transportation and Storage | Shandong Baogang International Port Co., Ltd. | Dongying | 1.00 | | Total | | | | 5.14 | - During the reporting period, two of the company's invested projects, Baize Medical and Jiaoda TIEFA, successfully completed their initial public offerings[29] - As of the end of the reporting period, funds or investment platforms initiated by the company have 20 planned IPO projects, with 3 projects accepted by exchanges and 17 projects in the coaching period[31] - From January to June 2025, the company and its controlled subsidiaries recovered 222 million Yuan from exits, including 54 million Yuan from primary market transfers, 4 million Yuan from secondary market reductions, and 164 million Yuan from participating funds[33] - The abrasive segment achieved operating revenue of 27.2626 million Yuan in the first half of 2025, an increase of 1.7998 million Yuan year-on-year[33] Core Competencies The company's core competencies include 25 years of industry experience, a strong brand, robust investment management and risk control, a highly qualified team, strategic regional layout, and the resource advantages of its controlling shareholder. - The company possesses 25 years of venture capital business experience, accumulating rich investment expertise and a strong reputation, earning honors such as "Annual State-owned Investment Institution" and "Outstanding Investment Institution in Semiconductor Industry"[34] - The company has established standardized and rigorous investment decision-making procedures and internal management systems to effectively control investment risks[34] - The venture capital division has 108 employees, over 89% with master's degrees or higher, 40% holding professional qualifications like CFA and ACCA, and 60% of the investment team members having over ten years of venture capital experience[35] - The company is based in Shandong, operates nationwide, and has established regional funds and wholly-owned/controlled subsidiaries in the Yangtze River Delta, Greater Bay Area, Southwest, and Central regions, forming a nationwide business layout[35] - Controlling shareholder Luxin Group, as a key investment and financing entity and asset management platform in Shandong Province, provides synergistic advantages for the company to expand project resources and enhance negotiation power[36] Key Operating Performance This section analyzes financial statement changes, asset-liability status, and investment activities, noting a 3.67% revenue increase, a 401.01% rise in investment income, an 81.88% drop in fair value change income, and a 473 million Yuan increase in external equity investments. Financial Statement Item Fluctuation Analysis Operating revenue increased by 3.67% due to higher abrasive sales, while investment income surged 401.01% and fair value change income dropped 81.88%, leading to a 21.29% decrease in total profit. Financial Statement Item Changes (Jan-Jun 2025 vs. Prior Year) | Item | Current Period (Yuan) | Prior Year (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 41,043,487.87 | 39,590,483.16 | 3.67 | | Operating Cost | 24,047,964.55 | 22,877,155.69 | 5.12 | | Selling Expenses | 2,079,624.82 | 1,584,023.65 | 31.29 | | Administrative Expenses | 37,023,984.14 | 40,654,053.38 | -8.93 | | R&D Expenses | 1,701,961.83 | 1,317,126.32 | 29.22 | | Financial Expenses | 51,183,826.20 | 63,262,963.49 | -19.09 | | Investment Income | 251,721,113.76 | 50,242,658.76 | 401.01 | | Fair Value Change Income | 63,534,957.42 | 350,584,788.30 | -81.88 | | Net Cash Flow from Operating Activities | -16,449,725.15 | -1,521,525.39 | Not Applicable | | Net Cash Flow from Investing Activities | -192,636,097.34 | -263,817,257.63 | Not Applicable | | Net Cash Flow from Financing Activities | 313,153,045.78 | -82,647,130.11 | Not Applicable | - Operating revenue increased by 3.67%, mainly due to increased abrasive sales[39] - Financial expenses decreased by 19.09%, primarily due to partial bond repurchases and resales in the current and prior year, leading to lower average financing interest rates[39] - Net cash flow from financing activities increased, mainly due to the issuance of 500 million Yuan in sci-tech innovation bonds this period[39] Asset and Liability Status Analysis Cash increased by 40.38% to 513 million Yuan due to sci-tech innovation bond issuance, while accounts payable and other receivables rose significantly, and taxes payable surged 454.59% due to corporate income tax accrual. Asset and Liability Status Changes (End of Period vs. End of Prior Year) | Item Name | Current Period-End (Yuan) | Current Period-End % of Total Assets | Prior Year-End (Yuan) | Prior Year-End % of Total Assets | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 513,340,488.76 | 5.62 | 365,681,232.54 | 4.07 | 40.38 | | Accounts Receivable | 23,323,465.37 | 0.26 | 17,825,916.96 | 0.20 | 30.84 | | Other Receivables | 24,580,760.16 | 0.27 | 12,734,604.20 | 0.14 | 93.02 | | Non-Current Assets Due Within One Year | 111,221,128.74 | 1.22 | 36,879,643.84 | 0.41 | 201.58 | | Debt Investments | - | - | 60,161,906.84 | 0.67 | -100.00 | | Taxes Payable | 16,077,059.71 | 0.18 | 2,898,922.35 | 0.03 | 454.59 | | Long-Term Borrowings | 223,569,027.63 | 2.45 | 330,863,168.64 | 3.69 | -32.43 | | Provisions | - | - | 2,293,967.57 | 0.03 | -100.00 | - Cash and cash equivalents at period-end increased by 40.38% compared to prior year-end, mainly due to the issuance of 500 million Yuan in sci-tech innovation bonds this period[40] - Taxes payable at period-end increased by 454.59% compared to prior year-end, mainly due to the accrual of corporate income tax this period[41] - Long-term borrowings at period-end decreased by 32.43% compared to prior year-end, mainly due to repayment of bank loans[41] Overseas Asset Status The company's overseas assets total 438 million Yuan, accounting for 4.79% of total assets. - The company's overseas assets amount to 437,976,461.49 Yuan, representing 4.79% of total assets[42] Overall Analysis of External Equity Investments From January to June 2025, external investments increased by 473 million Yuan, including direct equity, private equity/venture capital funds, and private securities investment funds, with significant investments in specific projects and a large portfolio of financial assets measured at fair value. - From January to June 2025, the company increased external investments by 472,551,032.35 Yuan, including direct equity investments, private equity/venture capital funds, and private securities investment funds[44] Major Equity Investments (Partial) | Investee Company Name | Investment Amount (Yuan) | Shareholding Ratio | Impact on Current Period Profit/Loss (Yuan) | | :--- | :--- | :--- | :--- | | Anhui Luxin Wanneng Green Kinetic Energy Equity Investment Fund Partnership (Limited Partnership) | 59,100,000.00 | 46.64% | 11,157,892.66 | | Chengdu Hongke Electronic Technology Co., Ltd. | 60,000,000.00 | 2.00% | - | | Chengdu Luxin Jingrong Phase II Venture Capital Center (Limited Partnership) | 30,007,032.35 | 47.83% | 48,208,799.20 | | Shandong Baogang International Port Co., Ltd. | 80,000,000.00 | 3.82% | 2,082,992.88 | | Shandong Luxin Industrial High-Quality Development Fund Partnership (Limited Partnership) | 70,000,000.00 | 35.00% | 3,469,309.36 | Financial Assets Measured at Fair Value (End of Period) | Asset Category | Period-End Amount (Yuan) | | :--- | :--- | | Stocks | 1,176,075,431.66 | | Private Equity Funds | 3,820,893,821.63 | | Other | 696,711,788.50 | | Total | 5,693,681,041.79 | - The company's venture capital business primarily operates by initiating private equity investment funds or investment platforms for equity investments[52] Analysis of Major Holding and Participating Companies Gaoxin Investment, a subsidiary, contributed significantly to net profit with 200.496 million Yuan, while Luxin Gaoxin's net profit was 3.4377 million Yuan. Qingdao Luxin Jingshi Private Equity Investment Fund was deregistered without major impact. Major Subsidiary Financial Data (H1 2025) | Company Name | Company Type | Main Business | Registered Capital (10,000 Yuan) | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Operating Revenue (10,000 Yuan) | Operating Profit (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gaoxin Investment | Subsidiary | Investment and Management | 117,572.00 | 549,905.00 | 275,114.05 | 1,302.06 | 21,384.90 | 20,049.60 | | Luxin Gaoxin | Subsidiary | Manufacturing | 18,174.56 | 26,732.31 | 24,050.50 | 3,096.98 | 336.98 | 343.77 | - Qingdao Luxin Jingshi Private Equity Investment Fund Partnership (Limited Partnership) has been deregistered, with no significant impact on overall operations and performance[54] Other Disclosures The company faces risks from macroeconomic changes, venture capital project management, and earnings volatility, with market fluctuations potentially impacting operating performance. - The company's main operating business is venture capital, facing risks from macroeconomic environment changes that may affect funding, project selection, and investment returns[54] - Venture capital project management involves execution risks, as invested projects' operations are influenced by policy, market, and technological factors, potentially underperforming expectations[54] - The company's operating performance is highly correlated with stock market price fluctuations, and secondary market volatility may impact its operating results[55][56] Section IV Corporate Governance, Environment and Social Changes in Directors and Senior Management During the reporting period, Mr. Rong Hui was appointed as Chief Risk and Compliance Officer, with his term consistent with the current board of directors. - On June 30, 2025, Mr. Rong Hui was appointed as Chief Risk and Compliance Officer, with his term consistent with the current board of directors[58] Profit Distribution Plan The company's semi-annual profit distribution or capital reserve capitalization plan is not applicable. - The company's proposed semi-annual profit distribution plan or capital reserve capitalization plan is "No," indicating no distribution or capitalization will occur[59] Section V Significant Matters Fulfillment of Commitments The controlling shareholder fulfilled multiple commitments during the reporting period, including asset value guarantees, property defect resolution, avoiding competition, and managing related-party transactions. - The controlling shareholder committed that if the transfer price of equity in Renkang Pharmaceutical and three other companies by Gaoxin Investment is lower than the approved floor price, the difference will be compensated in cash[62] - The controlling shareholder committed to resolving land and other property title defects, bearing any expenses or losses arising from incomplete titles[62] - The controlling shareholder committed to resolving horizontal competition, ensuring no use of knowledge about the listed company to assist third parties in competitive businesses[62] - The controlling shareholder committed to resolving related-party transactions, reducing and avoiding them, ensuring fairness and impartiality, and preventing non-operating occupation of listed company funds[62][63] Explanation of Integrity Status The company, its controlling shareholder, and actual controller maintained good integrity during the reporting period, with no unfulfilled major debts, commitments, court judgments, or regulatory penalties. - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled major debts, unfulfilled commitments, unfulfilled effective court judgments, or penalties from securities regulatory agencies[65] Significant Related-Party Transactions The company engaged in several significant related-party transactions, including proposed transfers of fund shares and equity, and a loan to an associate, with some transactions completed during the period. - The company and its subsidiaries plan to acquire 18.20% of Luxin New and Old Kinetic Energy Venture Capital Mother Fund and 8% of Anhui Luxin Wanhe Technology Innovation Venture Capital Fund, with transactions incomplete as of June 30, 2025[66] - The company plans to transfer its 10.0581% equity in Shandong Luxin Huijin Holdings Co., Ltd. to Shandong Investment Co., Ltd. for 203.0274 million Yuan, with the transaction incomplete as of June 30, 2025[66] - The company's wholly-owned subsidiary Gaoxin Investment transferred the income rights of its 9.79% stake in Longli Bio to Shandong Financial Asset Management Co., Ltd., a subsidiary of the controlling shareholder Luxin Group, and entrusted voting rights; this transaction has been completed[67] - The company, through its wholly-owned subsidiary Sichuan Luxin and controlled subsidiary Shenzhen Huaxin, plans to acquire a total of 3% equity in Chengdu Hongke Electronic Technology Co., Ltd. from participating funds, with 2% already acquired as of June 30, 2025[67][68] - In May 2025, Gaoxin Investment, a wholly-owned subsidiary, provided an interest-free loan of 50 million Yuan to its associate Shanghai Longyi Investment Management Co., Ltd. for a term not exceeding six months[69] Section VI Share Changes and Shareholder Information Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share capital structure. - During the reporting period, there were no changes in the company's total share capital or share capital structure[72] Shareholder Information As of the end of the reporting period, the company had 29,508 common shareholders, with Shandong Luxin Investment Holdings Group Co., Ltd. holding 69.57% as the controlling shareholder. - As of the end of the reporting period, the total number of common shareholders was 29,508[73] Top Ten Shareholders' Holdings (As of End of Reporting Period) | Shareholder Name | Period-End Shareholding (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shandong Luxin Investment Holdings Group Co., Ltd. | 517,861,877 | 69.57 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 5,152,795 | 0.69 | Overseas Legal Person | | Yao Yonghai | 4,060,789 | 0.55 | Domestic Natural Person | | Zhuang Jingping | 3,576,228 | 0.48 | Domestic Natural Person | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 2,748,175 | 0.37 | Other | - Shandong Luxin Investment Holdings Group Co., Ltd. directly holds 69.41% of the company's shares and 0.16% through a targeted asset management plan, totaling 69.57%, making it the controlling shareholder[76] Section VII Bond-Related Information Corporate Bonds and Debt Financing Instruments The company issued multiple corporate bonds and medium-term notes, totaling 3.50 billion Yuan, with some undergoing interest rate adjustments and resale, and sci-tech innovation bonds primarily investing in hard technology startups. Basic Information on Corporate Bonds (Partial) | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (100 million Yuan) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luxin Venture Capital Group Co., Ltd. 2019 Public Issuance of Corporate Bonds to Qualified Investors (Tranche 1) | 19 Luxin 01 | 155271 | 2019.4.3 | 2029.4.3 | 5.00 | 3.13 | | Luxin Venture Capital Group Co., Ltd. 2020 Public Issuance of Innovation and Entrepreneurship Corporate Bonds to Qualified Investors (Tranche 1) | 20 Luxin 01 | 163115 | 2020.1.17 | 2027.1.17 | 5.00 | 2.28 | | Luxin Venture Capital Group Co., Ltd. 2022 Public Issuance of Sci-Tech Innovation Corporate Bonds to Professional Investors (Tranche 1) | 22 Luxin K1 | 137784 | 2022.9.9 | 2032.9.9 | 6.00 | 3.39 | | Luxin Venture Capital Group Co., Ltd. 2024 Public Issuance of Sci-Tech Innovation Corporate Bonds to Professional Investors (Tranche 1) | 24 Luxin K1 | 240884 | 2024.4.18 | 2034.4.18 | 4.00 | 2.70 | - The "19 Luxin 01" corporate bond's coupon rate was adjusted to 3.13% in February 2024, with 185 million Yuan in repurchased and resold bonds[110] - The "20 Luxin 01" innovation and entrepreneurship corporate bond's coupon rate was adjusted to 2.28% in December 2024, with 165 million Yuan in resold bonds[110][111] - The company issued the first tranche of 2025 sci-tech innovation bonds (25 Luxin Investment MTN001) with an issuance size of 500 million Yuan and a coupon rate of 2.60%[111] - Sci-tech innovation corporate bond proceeds are primarily invested in equity of seed-stage, early-stage, and growth-stage innovative and entrepreneurial companies in hard technology fields such as SiC semiconductor devices, special electronic information equipment, new-generation information technology, high-end equipment, new energy, advanced materials, and biomedicine[83][84][85][86] Interbank Debt Financing Instruments The company issued medium-term notes in the interbank market, including "Luxin Venture 19 MTN001," "Luxin Investment 21 MTN001," and "Luxin Investment 25 MTN001 (Sci-tech Innovation Bond)," totaling 1.50 billion Yuan, all with annual simple interest and principal repayment at maturity. Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (100 million Yuan) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luxin Venture Capital Group Co., Ltd. 2019 First Tranche Medium-Term Note | Luxin Venture 19 MTN001 | 101901170 | 2019.8.27-2019.8.28 | 2029.8.29 | 6.00 | 2.30 | | Luxin Venture Capital Group Co., Ltd. 2021 First Tranche Medium-Term Note | Luxin Investment 21 MTN001 | 102100002 | 2021.1.4-2021.1.5 | 2028.1.6 | 4.00 | 4.45 | | Luxin Venture Capital Group Co., Ltd. 2025 First Tranche Sci-Tech Innovation Bond | Luxin Investment 25 MTN001 (Sci-tech Innovation Bond) | 102501362 | 2025.5.12 | 2030.5.13 | 5.00 | 2.60 | - All interbank debt financing instruments accrue simple interest annually, with interest paid once a year and principal repaid at maturity[96] Bond-Related Financial Indicators At period-end, liquidity and quick ratios increased due to sci-tech innovation bond issuance, while the asset-liability ratio rose to 49.66%, and net profit after non-recurring items, EBITDA to total debt, and cash interest coverage ratio all declined. Key Financial Indicator Changes (End of Period/Current Period vs. End of Prior Year/Prior Period) | Key Indicator | Current Period-End/Current Period (Jan-Jun) | Prior Year-End/Prior Period | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 8.12 | 7.87 | 3.18 | Increase in current assets due to sci-tech innovation bond issuance exceeded increase in current liabilities | | Quick Ratio | 8.04 | 7.78 | 3.34 | Increase in quick assets due to sci-tech innovation bond issuance exceeded increase in current liabilities | | Asset-Liability Ratio (%) | 49.66 | 47.14 | 2.52 | Increase in liabilities due to sci-tech innovation bond issuance exceeded increase in assets | | Net Profit After Non-Recurring Gains and Losses | 209,758,506.54 | 235,876,285.05 | -11.07 | Combined impact of reduced project valuation gains, increased project disposal gains, and reduced income tax expenses | | EBITDA to Total Debt | 0.0689 | 0.0939 | -26.62 | Combined impact of reduced EBITDA and increased total debt | | Cash Interest Coverage Ratio | 0.79 | 1.00 | -21.00 | Impact of decreased net cash flow from operating activities | Section VIII Financial Report Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, providing a comprehensive view of its financial position, operating results, and cash flows. - The consolidated balance sheet shows total assets of 9,140,437,299.53 Yuan, total liabilities of 4,539,545,273.42 Yuan, and total owners' equity of 4,600,892,026.11 Yuan as of June 30, 2025[103] - The consolidated income statement shows total operating revenue of 41,043,487.87 Yuan, total profit of 243,430,901.62 Yuan, and net profit attributable to parent company shareholders of 217,405,040.88 Yuan for January-June 2025[108][109] - The consolidated cash flow statement shows net cash flow from operating activities of -16,449,725.15 Yuan, from investing activities of -192,636,097.34 Yuan, and from financing activities of 313,153,045.78 Yuan for January-June 2025[115][116] Company Basic Information The company, formerly "Shandong Taishan Abrasives Co., Ltd.," was listed on the Shanghai Stock Exchange in 1996 and renamed "Luxin Venture Capital Group Co., Ltd." in 2011, primarily engaging in venture capital and abrasive manufacturing. - The company was approved by the China Securities Regulatory Commission and listed on the Shanghai Stock Exchange on December 25, 1996[133] - On March 15, 2011, the company's registered name changed to "Luxin Venture Capital Group Co., Ltd.," with abbreviation "Luxin Venture" and stock code: 600783[134] - The company primarily engages in venture capital, with a business scope including venture capital, investment management and consulting, and the production and sales of abrasives and coated abrasives[135] Basis of Financial Statement Preparation The group's financial statements are prepared in accordance with "Enterprise Accounting Standards" and CSRC regulations, presented on a going concern basis, with no significant doubts about its ability to continue as a going concern. - The group's financial statements are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations[136] - These financial statements are presented on a going concern basis, with no significant doubts or circumstances identified regarding the ability to continue as a going concern[137] Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates for financial statement preparation, covering accounting standards, periods, cycles, currency, materiality, business combinations, financial instruments, long-term equity investments, fixed assets, intangible assets, revenue recognition, and government grants. - The company identifies individual accounts receivable exceeding 500,000 Yuan as significant accounts receivable[143] - The company's financial assets are classified as financial assets measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[154] - The company performs impairment testing and recognizes loss provisions for financial assets measured at amortized cost, debt investments measured at fair value through other comprehensive income, and contract assets, using the expected credit loss model[159] - The company recognizes revenue when customers obtain control of related goods or services, based on the nature of the performance obligation (over time or at a point in time)[202][203] - The company determines the fair value of unlisted equity investments and fund investments using valuation techniques such as the recent financing price method, comparable company method, and discounted cash flow method[143] Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, with varying rates based on business nature and region, and it benefits from several tax incentives. Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 13%, 9%, 6%, 3% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7% | | Corporate Income Tax | Taxable Income | See table below | Corporate Income Tax Rates for Different Taxable Entities | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | The Company | 25% | | Kechuangtou | 20% | | Qilu Investment | 8.25%/16.50% | | Blue Economy Investment | Tax Exempt | - The company and its subsidiaries are eligible for a tax incentive allowing a 70% deduction from taxable income for corporate partners in limited partnership venture capital enterprises investing in unlisted small and medium-sized high-tech enterprises[226] - Some subsidiaries enjoy preferential corporate income tax policies for small and micro-enterprises, where taxable income is calculated at 25% and taxed at 20%, extended until December 31, 2027[227] - Some subsidiaries benefit from VAT exemption policies for small-scale VAT taxpayers, exempting VAT for quarterly sales not exceeding 300,000 Yuan and reducing the 3% collection rate to 1%[228] Notes to Consolidated Financial Statement Items This section detailed consolidated financial statement items and their changes, including cash, financial assets, receivables/payables, long-term equity investments, fixed assets, intangible assets, deferred taxes, liabilities, revenue, costs, and gains/losses. - Cash and cash equivalents at period-end totaled 513 million Yuan, with 120 million Yuan held overseas[235] - Trading financial assets at period-end totaled 1.056 billion Yuan, including 180 million Yuan in equity instrument investments and 876 million Yuan in other assets[233] - Accounts receivable at period-end had a book balance of 84.2064 million Yuan, bad debt provision of 60.8829 million Yuan, and book value of 23.3235 million Yuan[242] - Long-term equity investments at period-end had a book value of 2.229 billion Yuan, increasing by 124 million Yuan this period due to additional investments and investment income recognized under the equity method[286] - Other non-current financial assets at period-end totaled 3.642 billion Yuan, primarily comprising 352 million Yuan in direct equity investment projects and 3.29 billion Yuan in equity investment funds[288] - Bonds payable at period-end totaled 3.544 billion Yuan, an increase of 481 million Yuan from the beginning of the period, mainly due to the issuance of 500 million Yuan in sci-tech innovation bonds this period[333] - Investment income for the current period was 252 million Yuan, a significant increase from the prior period, mainly due to the disposal of Longli Bio equity and increased fund distribution income[364] - Fair value change income for the current period was 63.535 million Yuan, a significant decrease from the prior period, mainly due to reduced project valuation gains and secondary market fluctuations[366] Research and Development Expenses Total R&D expenses for the reporting period were 1.702 million Yuan, a 29.22% increase, primarily for abrasive product and process development, such as elastic modulus method for hardness testing and grinding wheel development. R&D Expenses by Nature of Expense | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 757,456.36 | 622,512.58 | | Amortization and Depreciation | 79,798.52 | 74,195.11 | | Energy and Power Costs | 150,843.61 | 116,799.95 | | Labor Costs | 18,600.00 | 37,200.00 | | Direct Materials | 653,750.49 | 464,368.67 | | Other | 41,512.85 | 2,050.01 | | Total | 1,701,961.83 | 1,317,126.32 | - Current period R&D expenses were mainly for projects such as research on the elastic modulus method for testing abrasive hardness and development of grinding wheels for bearing rollers[360] Changes in Consolidation Scope Qingdao Luxin Jingshi Private Equity Investment Fund Partnership (Limited Partnership) was deregistered during the reporting period and is no longer included in the consolidation scope. - Qingdao Luxin Jingshi Private Equity Investment Fund Partnership (Limited Partnership) completed its industrial and commercial deregistration on June 4, 2025, and is no longer included in the consolidation scope[395] Interests in Other Entities The company holds interests in various subsidiaries (e.g., Luxin Gaoxin, Shenzhen Huaxin, Gaoxin Investment) and significant associates (e.g., New Kinetic Energy Venture Capital Mother Fund, Shanghai Longyi, Tiandiren), with some associates having accumulated unrecognized excess losses. Major Subsidiary Composition | Subsidiary Name | Registered Place | Business Nature | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | Luxin Gaoxin | Zibo, Shandong | Manufacturing | 100.00 | | Shenzhen Huaxin | Shenzhen, Guangdong | Investment and Management | 70.00 | | Gaoxin Investment | Jinan, Shandong | Investment and Management | 100.00 | | Qilu Investment | Hong Kong | Investment and Management | 100.00 (Indirect) | Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio (%) | Current Period Profit/Loss Attributable to Minority Shareholders (Yuan) | Period-End Minority Interest Balance (Yuan) | | :--- | :--- | :--- | :--- | | Shenzhen Huaxin | 30.00 | 1,250,902.18 | 45,008,046.05 | | Abrasive Company | 14.50 | 25,954.97 | 3,013,593.80 | Significant Associates (Partial) | Associate Name | Registered Place | Business Nature | Shareholding Ratio (%) | Accounting Method | | :--- | :--- | :--- | :--- | :--- | | Luxin Huijin | Jinan | External Investment and Management | 10.06 | Equity Method | | Shanghai Longyi | Shanghai | Investment Management, Investment Consulting | 50.00 | Equity Method | | New Kinetic Energy Venture Capital Mother Fund | Jinan | Equity Investment | 47.00 (Direct) / 2.00 (Indirect) | Equity Method | | Tiandiren | Hefei | Technical Services, Technology Development, etc. | 26.80 | Equity Method | - The company has appointed directors to the investees and holds substantive decision-making power, thereby exerting significant influence over them[404] - Some associates, such as Yantai Gaoying, Ouhua Egg Industry, and Beijing Chalian, have accumulated unrecognized excess losses[415] Government Grants During the reporting period, government grants recognized in profit or loss amounted to 88,821.56 Yuan, primarily from the amortization of asset-related deferred income. Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (Yuan) | Amount Recognized in Other Income This Period (Yuan) | Ending Balance (Yuan) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,121,874.61 | 88,821.56 | 1,033,053.05 | Asset-related | - Government grants recognized in profit or loss for the current period amounted to 88,821.56 Yuan[420] Financial Instrument Risk Management The company manages market risks (exchange rate, interest rate, price), credit risk, and liquidity risk through various strategies, including monitoring currency fluctuations, balancing debt, diversifying investments, credit approvals, and cash flow management. - The company faces exchange rate risk (primarily related to USD, HKD), interest rate risk (bank borrowings and bonds payable), and equity instrument investment price risk[420][421][423] - The company manages credit risk by establishing credit limits, approving credit, monitoring procedures, and reviewing receivables recovery and accruing bad debt provisions at each balance sheet date[424] - The company manages liquidity risk by ensuring sufficient funding, regularly analyzing liability structure and maturity, and monitoring bank borrowings and financing negotiations[426] - During the reporting period, the company transferred 4,249,280.48 Yuan of accounts receivable financing through bill endorsement and derecognized them, based on the judgment that substantially all risks and rewards were transferred[433] Fair Value Disclosure The company's assets measured at fair value total 5.694 billion Yuan, primarily trading financial assets, other non-current financial assets, and other equity instruments, using Level 1, 2, and 3 valuation techniques, with no inter-level transfers during the period. Fair Value of Assets Measured at Fair Value (End of Period) | Item | Level 1 Fair Value Measurement (Yuan) | Level 2 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 180,363,452.46 | 875,668,737.20 | - | 1,056,032,189.66 | | Other Non-Current Financial Assets | - | - | 3,641,936,872.93 | 3,641,936,872.93 | | Other Equity Instruments Investment | - | 995,711,979.20 | - | 995,711,979.20 | | Total Assets Continuously Measured at Fair Value | 180,363,452.46 | 1,871,380,716.40 | 3,641,936,872.93 | 5,693,681,041.79 | - Level 1 fair value measurements are for listed tradable stocks, using publicly traded market prices[437] - Restricted tradable stocks, asset management plans, private equity funds, and trust plan investments are measured using Level 2 fair value[438] - Unlisted equity investments and fund investments are measured using Level 3 fair value techniques, such as the recent financing price method, comparable company method, and discounted cash flow method[439] - No transfers between fair value hierarchy levels occurred during the reporting period[441] Related Parties and Related-Party Transactions The company's controlling shareholder is Shandong Luxin Investment Holdings Group Co., Ltd., with the ultimate control by Shandong Provincial People's Government. The company engaged in various related-party transactions, including sales, services, leases, and guarantees. - The company's controlling shareholder is Shandong Luxin Investment Holdings Group Co., Ltd., holding 69.57% of shares, with the ultimate controlling party being the Shandong Provincial People's Government[444][445] Related-Party Transactions for Sales of Goods/Provision of Services | Related Party | Related Transaction Content | Current Period Amount (Yuan) | | :--- | :--- | :--- | | New Kinetic Energy Venture Capital Mother Fund | Management Fee Income | 4,074,360.66 | | Industrial High-Quality Development Fund | Management Fee Income | 3,934,272.42 | | Shanghai Longyi | Interest Income | 1,676,533.21 | Related-Party Leases (Company as Lessee) | Lessor Name | Type of Leased Asset | Rent Paid (Yuan) | Interest Expense on Lease Liabilities (Yuan) | | :--- | :--- | :--- | :--- | | Luxin Assets | Office Building | 4,819,397.61 | 1,478,666.96 | | Luxin Assets | Parking Lot | 842,201.83 | 258,400.77 | - Controlling shareholder Luxin Group provides full, unconditional, and irrevocable joint and several liability guarantees for multiple corporate bonds and medium-term notes, including "19 Luxin 01," "20 Luxin 01," "22 Luxin K1," and "24 Luxin K1"[452][453][454][455][456] Commitments and Contingencies As of the end of the reporting period, the company had no significant commitments or contingencies requiring disclosure. - The company has no significant commitments requiring disclosure[148] - The company has no significant contingencies requiring disclosure[148] Events After the Balance Sheet Date From the reporting period-end to the report disclosure date, the company had no significant non-adjusting events, profit distribution, or sales returns requiring disclosure. - The company has no significant non-adjusting events requiring disclosure[148] - The company has no profit distribution information requiring disclosure[148] - The company has no sales returns requiring disclosure[148] Other Significant Matters The company's operations are divided into investment and abrasive segments for management and performance evaluation, with segment reporting consistent with financial statement accounting. - The company's operating businesses are divided into investment and abrasive segments, with management regularly evaluating their operating results[465] Segment Reporting Financial Information (H1 2025) | Item | Investment Segment (Yuan) | Abrasive Segment (Yuan) | Inter-Segment Eliminations (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business Revenue | 11,592,602.01 | 27,272,929.32 | - | 38,865,531.33 | | Main Business Cost | - | 20,990,462.81 | - | 20,990,462.81 | | Investment Income | 251,455,275.59 | 265,838.17 | - | 251,721,113.76 | | Fair Value Change Income | 63,534,957.42 | - | - | 63,534,957.42 | | Total Assets | 9,236,207,390.30 | 267,323,111.68 | -363,093,202.45 | 9,140,437,299.53 | | Total Liabilities | 4,694,727,161.30 | 26,818,112.12 | -182,000,000.00 | 4,539,545,273.42 | Notes to Parent Company Financial Statement Items This section details the parent company's key financial statement items, including other receivables, long-term equity investments, operating revenue, operating costs, and investment income, with significant intercompany balances. - The parent company's other receivables at period-end totaled 1,781,630,457.11 Yuan, including 100 million Yuan in dividends receivable and 1.682 billion Yuan in other receivables[471] - The parent company's long-term equity investments at period-end had a book value of 3,301,448,349.80 Yuan, comprising 1.882 billion Yuan in investments in subsidiaries and 1.420 billion Yuan in investments in associates and joint ventures[483] - The parent company's operating revenue for the current period was 25,440,666.56 Yuan, primarily from internal enterprises[486] - The parent company's investment income for the current period was 165,543,377.20 Yuan, mainly including 100 million Yuan from long-term equity investments accounted for using the cost method and -7.1714 million Yuan from those accounted for using the equity method[487] Supplementary Information This section provides details on non-recurring gains and losses, totaling 7.6465 million Yuan, and clarifies that certain investment-related gains are considered normal operating income. Details of Non-Recurring Gains and Losses for the Current Period | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 8,194,611.40 | | Government grants recognized in current profit or loss | 88,821.56 | | Fund occupation fees received from non-financial enterprises recognized in current profit or loss | 1,676,533.21 | | Other non-operating income and expenses | -14,663.91 | | Other items meeting the definition of non-recurring gains and losses | 70,921.33 | | Less: Income tax impact | 2,356,588.65 | | Minority interests impact (after tax) | 13,100.60 | | Total | 7,646,534.34 | - The company classifies gains from equity, wealth management investments, and fair value changes as normal operating income, not non-recurring gains and losses[491] Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share | Diluted Earnings Per Share | | :--- | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders of the company | 4.68 | 0.29 | 0.29 | | Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses | 4.52 | 0.28 | 0.28 |