华阳股份(600348) - 2025 Q2 - 季度财报

Important Notice The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, which is unaudited, with no profit distribution or capital reserve conversion to share capital during the reporting period, and forward-looking statements do not constitute a substantive commitment to investors - The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions[3] - This semi-annual report is unaudited[5] - No profit distribution or capital reserve conversion to share capital occurred during the reporting period[6] - Forward-looking statements regarding future plans and development strategies in this report do not constitute a substantive commitment to investors; investors are advised to be aware of investment risks[7] Section I Definitions This section defines common terms used in the report, such as "CSRC," "SSE," "Huayang Group," and abbreviations for the company and its subsidiaries, ensuring clear understanding of the report content - This section primarily explains common terms used in the report, such as "CSRC," "SSE," "Huayang Group," and abbreviations for the company and its subsidiaries, to ensure clear understanding of the report content[13][14] Section II Company Profile and Key Financial Indicators This section provides the company's basic information, contact details, changes in registration, information disclosure, stock overview, and a summary of key financial data and indicators, highlighting the impact of market conditions on performance I. Company Information This section discloses the company's basic registration information, including its Chinese name, abbreviation, foreign name and abbreviation, and legal representative - The company's Chinese name is Shanxi Huayang Group Xinneng Co., Ltd., abbreviated as Huayang Shares, with Wang Yuming as the legal representative[16] II. Contact Person and Information This section provides the name, address, telephone number, and email of the company's Board Secretary for investor and public communication - The Board Secretary is Lu Xinbao, contact number 0353-7078618, email hygf600348@sina.com[17] III. Brief Introduction to Changes in Basic Information This section details changes in the company's registered and office addresses, along with its postal code and website - The company's registered and office addresses are both No. 2 Taobei West Street, Yangquan City, Shanxi Province, and the company website is https://yqmy.ymjt.com.cn[18](index=18&type=chunk) IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section specifies the company's designated newspapers for information disclosure, the website for semi-annual reports, and the report storage location - The company's information disclosure newspapers are "China Securities Journal," "Shanghai Securities News," and "Securities Daily," with reports published on www.sse.com.cn[19](index=19&type=chunk) V. Company Stock Profile This section provides the company's stock type, listing exchange, stock abbreviation, code, and previous stock abbreviation - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation Huayang Shares and stock code 600348[20] VII. Company's Key Accounting Data and Financial Indicators During the reporting period, the company experienced significant declines in operating revenue, total profit, and net profit attributable to parent company shareholders, primarily due to coal mine safety regulations and weak coal market demand Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,239,594,090.35 | 12,198,928,752.69 | -7.86 | | Total Profit | 1,268,956,416.93 | 1,919,393,536.75 | -33.89 | | Net Profit Attributable to Parent Company Shareholders | 782,636,331.30 | 1,298,886,234.29 | -39.75 | | Net Profit Attributable to Parent Company Shareholders (Excl. Non-recurring Gains/Losses) | 824,113,353.42 | 1,215,200,294.52 | -32.18 | | Net Cash Flow from Operating Activities | 51,817,267.07 | 140,094,169.67 | -63.01 | | Net Assets Attributable to Parent Company Shareholders (Period-end) | 33,250,077,659.72 | 33,277,589,256.26 | -0.08 | | Total Assets (Period-end) | 82,204,974,697.40 | 80,971,454,001.07 | 1.52 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.22 | 0.36 | -38.89 | | Diluted Earnings Per Share (yuan/share) | 0.22 | 0.36 | -38.89 | | Basic Earnings Per Share (Excl. Non-recurring Gains/Losses) (yuan/share) | 0.23 | 0.34 | -32.35 | | Weighted Average Return on Equity (%) | 2.81 | 4.53 | Decreased by 1.72 percentage points | | Weighted Average Return on Equity (Excl. Non-recurring Gains/Losses) (%) | 2.96 | 4.24 | Decreased by 1.28 percentage points | - The main reason for the year-on-year decrease in the company's net profit was the decline in the comprehensive selling price of its main coal products, influenced by coal mine safety production supervision and weak coal market demand[24] IX. Non-recurring Gains and Losses Items and Amounts This section lists non-recurring gains and losses for the reporting period, totaling -41.48 million yuan, primarily including government subsidies, reversal of impairment provisions for receivables, and other non-operating income and expenses Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Non-current asset disposal gains/losses | -84,173.72 | | Government subsidies included in current profit/loss | 29,819,233.43 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 10,168,549.61 | | Custody fee income from entrusted operations | -259,464.09 | | Other non-operating income and expenses apart from the above | -93,080,455.64 | | Less: Income tax impact | 4,580,671.62 | | Minority interest impact (after tax) | -16,539,959.91 | | Total | -41,477,022.12 | Section III Management Discussion and Analysis This section discusses the company's industry and main business operations, analyzes operating performance, core competitiveness, and key financial changes, and outlines potential risks and strategic responses I. Description of the Company's Industry and Main Business Operations during the Reporting Period In the first half of 2025, China's coal industry saw strong supply and weak demand, leading to increased coal production but soft downstream demand, pushing coal prices to a multi-year low, while the company's main business diversified across coal, power, heating, and new energy (1) Overall Industry Overview In H1 2025, national coal output grew by 5.4%, but weak demand from power, construction, and steel sectors led to a supply-demand imbalance and record low coal prices, with a short-term price rebound expected in July-August due to high temperatures and supply constraints - From January to June 2025, national coal output above designated size reached 2.40 billion tons, a year-on-year increase of 5.4%[30] - Downstream demand was weak, with thermal power, crude steel, and cement output decreasing by 2.4%, 3.0%, and 4.3% year-on-year, respectively[30] - The coal market continued to show a strong supply and weak demand pattern, with prices for all coal types reaching multi-year lows[30] (2) Description of the Company's Main Business Operations Huayang Shares, as the listed energy arm of Huayang Group, primarily engages in coal production, washing, processing, and sales, power and heat generation and sales, as well as manufacturing of photovoltaic equipment and sodium-ion batteries, and new energy technology promotion, leveraging rich coal resources and the "Yangyou" brand - The company primarily engages in coal production, washing, processing, and sales; power generation and sales; heat production and sales; manufacturing of photovoltaic equipment and components, and sodium-ion batteries; and new energy technology promotion services[31] - The company possesses abundant coal resource reserves and has established significant competitiveness in the industry with its "Yangyou" brand[31] II. Discussion and Analysis of Operating Performance In the first half of 2025, the company's raw coal output and commercial coal sales increased, but a significant year-on-year drop in the comprehensive coal selling price led to a substantial decline in operating revenue and net profit, while power generation decreased and heating supply increased 2025 H1 Key Operating Data | Indicator | Current Period (10,000 tons/10,000 kWh/10,000 million kilojoules) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Raw Coal Output | 2,076 | 11.25 | | Purchased and Sold Coal | 184 | 14.28 | | Commercial Coal Sales | 1,928 | 12.79 | | Power Generation | 231,652.86 | -21.09 | | Heat Supply | 200.92 | 21.13 | | Comprehensive Coal Selling Price (yuan/ton) | 460.84 | -19.50 | | Operating Revenue (billion yuan) | 112.40 | -7.86 | | Total Profit (billion yuan) | 12.69 | -33.89 | | Net Profit Attributable to Parent Company Owners (billion yuan) | 7.83 | -39.75 | - The comprehensive coal selling price decreased by 19.50% year-on-year, which was the main reason for the decline in operating revenue and total profit[32] III. Analysis of Core Competitiveness during the Reporting Period The company's core competitiveness stems from its vast coal reserves (6.68 billion tons), rare anthracite coal types and "Yangyou" brand reputation, intelligent mine construction, full coal washing strategy for quality and efficiency, consistent shareholder returns, and strategic exploration in new energy and materials like sodium-ion batteries and carbon fiber (1) Total Resources and Resource Succession Potential The company's total controlled coal resources reached 6.68 billion tons after acquiring new resources through bidding, with several mines increasing capacity or nearing production, expected to boost approved capacity to over 45 million tons per year - In 2024, the company acquired approximately 630 million tons of new resources in the Yujiazhuang block, Shouyang County, Shanxi Province, through bidding, bringing the company's total controlled coal resources to 6.68 billion tons[33] - With the capacity increase of Yushupo and Pingshu mines, coupled with Qiyuan and Boli mines entering joint trial operation, the approved capacity is expected to increase to over 45 million tons per year after official production[33] (2) Rarity of Coal Type and Brand Reputation Over 90% of the company's coal resources are rare anthracite, known for high fixed carbon, smokelessness, low sulfur, and low ash, with its "Yangyou" brand enjoying a strong reputation for quality in the market - Over 90% of the company's coal resources are anthracite, a rare coal type widely used in power, chemical, metallurgy, and other industries[33] - The company's "Yangyou" brand enjoys a strong reputation for its excellent quality in markets such as Northeast China, North China, and Shandong[33] (3) Intelligent Mines and Technology Application By the end of 2024, the company had built 7 intelligent mines and 127 intelligent working faces, becoming the first in Shanxi Province to achieve full mine intelligence, leveraging 5G, IoT, and AI to enhance efficiency and safety - As of the end of 2024, the company had cumulatively built 7 intelligent mines, 127 intelligent working faces, and 1 intelligent coal washing plant, with all production mines passing acceptance by the Shanxi Provincial Energy Bureau, becoming the first enterprise in Shanxi Province to achieve full mine intelligence[33] - The company widely applies advanced technologies such as 5G, IoT, and AI to achieve remote monitoring, fault early warning, and unmanned operation of underground equipment[33] (4) "Full Washing, Premium Coal" and Quality Improvement & Efficiency Enhancement The company's coal washing plant upgrades enable full coal washing, improving commercial coal quality and calorific value, while new de-dusting processes reduce coal slime and a precise coal blending system increases clean coal yield, enhancing quality and efficiency - The company implemented coal washing plant technical upgrades to achieve full coal washing, improving the quality and calorific value of commercial coal[34] - Through technical upgrades, new de-dusting processes reduce coal slime, increasing economic benefits, and a precise coal blending system optimizes blending solutions, increasing clean coal yield[34] (5) Shareholder Returns and Stable Dividends The company prioritizes shareholder returns, having distributed a cumulative cash dividend of 12.931 billion yuan since listing, with dividend payout ratios exceeding 50% in both 2023 and 2024, demonstrating a consistent and stable cash dividend policy - The company has cumulatively distributed 12.931 billion yuan in cash dividends since its listing[34] - The dividend payout ratio reached over 50% in 2023 and 2024, reflecting the company's emphasis on shareholder returns[34] (6) Transformation Exploration and New Energy & New Materials The company is actively transforming into new energy and materials, with sodium-ion coal mine emergency power systems moving from demonstration to commercial batch deployment, and a high-performance carbon fiber demonstration line completing equipment installation and entering joint commissioning, indicating promising prospects for new energy and materials industries - The company is advancing sodium-ion coal mine emergency power systems from individual mine demonstrations to commercial batch deployment[34] - The company's first phase 200 tons/year T1000-grade high-performance carbon fiber demonstration line has completed equipment installation and entered the joint commissioning phase[34] IV. Main Operating Performance during the Reporting Period During the reporting period, the company's operating revenue and costs both decreased, but the cost reduction outpaced revenue decline, leading to an improved gross margin. Coal product sales revenue and power supply revenue decreased, while heating supply revenue increased. The asset-liability structure changed, with increases in prepayments and development expenditures, decreases in notes payable, and an increase in dividends payable. The company held a small amount of financial assets measured at fair value and analyzed its major controlled and investee companies (1) Analysis of Main Business Operations The company's main business revenue decreased by 1.046 billion yuan year-on-year, primarily due to lower coal selling prices. Operating costs decreased by 9.49% due to enhanced internal management and cost control. Selling, general and administrative, and R&D expenses all increased, while financial expenses rose due to lower deposit interest rates 1. Analysis Table of Changes in Financial Statement Items Operating revenue decreased by 7.86% year-on-year, mainly due to lower coal product prices. Operating costs decreased by 9.49% due to strengthened internal management and cost control. Selling, general and administrative, R&D, and financial expenses all increased to varying degrees Financial Statement Item Changes (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,239,594,090.35 | 12,198,928,752.69 | -7.86 | | Operating Cost | 7,512,658,707.88 | 8,300,770,169.54 | -9.49 | | Selling Expenses | 70,345,521.32 | 56,098,858.40 | 25.40 | | Administrative Expenses | 674,104,518.83 | 628,352,055.84 | 7.28 | | Financial Expenses | 264,480,501.23 | 235,356,539.71 | 12.37 | | R&D Expenses | 304,653,472.56 | 240,839,216.26 | 26.50 | | Net Cash Flow from Operating Activities | 51,817,267.07 | 140,094,169.67 | -63.01 | | Net Cash Flow from Investing Activities | -2,589,688,987.12 | -1,945,814,432.89 | -33.09 | | Net Cash Flow from Financing Activities | 2,450,817,256.14 | 3,346,558,187.30 | -26.77 | - Operating revenue change was mainly due to a year-on-year decrease in the company's coal product prices, leading to lower commercial coal revenue[37] - Operating cost change was mainly due to the company strengthening internal management, promoting intelligent mine construction, and comprehensively enhancing cost control[38] - Selling expenses increased mainly due to a year-on-year increase in coal blending and loading/unloading fees, and an increase in bidding service fees[38] - Financial expenses increased mainly due to lower deposit interest rates, resulting in reduced interest income[38] Revenue and Cost Analysis The company's main business revenue decreased by 1.046 billion yuan year-on-year, with coal sales revenue down by 901 million yuan due to lower selling prices. Power supply revenue decreased, while heating supply revenue increased. Gross margins for coal, power, and heating businesses all changed to varying degrees - The company's main business revenue decreased by 1.046 billion yuan year-on-year, with coal sales revenue decreasing by 901 million yuan, power supply decreasing by 151 million yuan, and heating supply increasing by 6 million yuan[39] - Coal sales volume increased by 2.19 million tons year-on-year, increasing sales revenue by 1.252 billion yuan, but the comprehensive coal selling price decreased by 111.63 yuan/ton, reducing sales revenue by 2.153 billion yuan[39] Main Business by Industry (Jan-Jun 2025) | Industry | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 8,887,279,402.54 | 5,573,659,196.55 | 37.28 | -9.21 | -7.92 | Decreased by 0.87 percentage points | | Power Supply | 830,212,646.32 | 543,041,174.17 | 34.59 | -15.42 | -40.07 | Increased by 26.90 percentage points | | Heating Supply | 36,866,412.85 | 61,925,519.89 | -67.97 | 22.17 | 17.23 | Increased by 7.08 percentage points | | Subtotal | 9,754,358,461.71 | 6,178,625,890.61 | 36.66 | -9.68 | -11.89 | Increased by 1.59 percentage points | Main Business by Product (Jan-Jun 2025) | Product | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Washed Lump Coal | 1,105,421,911.74 | 558,640,089.52 | 49.46 | -24.38 | -10.59 | Decreased by 7.79 percentage points | | Washed Slack Coal | 680,288,014.95 | 310,056,735.12 | 54.42 | 69.87 | 57.19 | Increased by 3.68 percentage points | | Slack Coal | 5,882,314,689.45 | 3,662,293,978.41 | 37.74 | -10.05 | -10.83 | Increased by 0.55 percentage points | | Coal Slime | 151,182,842.96 | | 100.00 | -31.99 | | Increased by 0.00 percentage points | | Purchased and Sold Coal | 1,068,071,943.44 | 1,042,668,393.50 | 2.38 | -8.28 | -7.24 | Decreased by 1.09 percentage points | Production and Sales Volume Analysis Table During the reporting period, coal production and sales volumes both increased year-on-year, but inventory decreased. Power generation and sales volumes decreased, while heating production and sales volumes both increased Main Product Production and Sales Volume (Jan-Jun 2025) | Main Product | Production Volume | Sales Volume | Inventory Volume | Production Volume Year-on-Year Change (%) | Sales Volume Year-on-Year Change (%) | Inventory Volume Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal (10,000 tons) | 2,076 | 1,928 | 44 | 11.25 | 12.79 | -11.90 | | Power Supply (10,000 kWh) | 251,260.26 | 231,652.86 | - | -21.80 | -21.09 | - | | Heating Supply (10,000 million kilojoules) | 200.92 | 200.92 | - | 21.13 | 21.13 | - | Cost Analysis Table During the reporting period, the company's coal sales cost and unit sales cost both decreased year-on-year, power supply costs significantly decreased, while heating supply costs increased. Coal business remains the primary component of the company's total costs Main Business by Industry Cost (Jan-Jun 2025) | Industry | Current Period Amount (yuan) | Current Period % of Total Cost | Prior Year Period Amount (yuan) | Prior Year Period % of Total Cost | Current Period Amount Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 5,573,659,196.55 | 90.21 | 6,053,378,206.96 | 86.33 | -7.92 | | Power Supply | 543,041,174.17 | 8.79 | 906,096,628.77 | 12.92 | -40.07 | | Heating Supply | 61,925,519.89 | 1.00 | 52,821,917.11 | 0.75 | 17.23 | | Subtotal | 6,178,625,890.61 | 100.00 | 7,012,296,752.84 | 100.00 | -11.89 | Main Business by Product Cost (Jan-Jun 2025) | Product | Current Period Amount (yuan) | Current Period % of Total Cost | Prior Year Period Amount (yuan) | Prior Year Period % of Total Cost | Current Period Amount Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Washed Lump Coal | 558,640,089.52 | 9.04 | 624,819,938.98 | 8.91 | -10.59 | | Washed Slack Coal | 310,056,735.12 | 5.02 | 197,250,504.36 | 2.81 | 57.19 | | Slack Coal | 3,662,293,978.41 | 59.27 | 4,107,209,246.47 | 58.58 | -10.83 | | Purchased and Sold Coal | 1,042,668,393.50 | 16.88 | 1,124,098,517.15 | 16.03 | -7.24 | - In the first half of 2025, coal sales cost was 5.574 billion yuan, a decrease of 479 million yuan year-on-year; unit sales cost was 289.02 yuan, a decrease of 65.01 yuan year-on-year[43] (3) Analysis of Assets and Liabilities At the end of the reporting period, the company's prepayments and development expenditures significantly increased, mainly due to higher advance payments for goods and increased investment in the high-performance carbon fiber project. Notes payable and non-current liabilities due within one year decreased, while other payables and dividends payable increased due to cash dividend recognition 1. Asset and Liability Status Prepayments increased by 36.15% due to higher advance payments for goods. Development expenditures increased by 201.98% due to increased investment in the first phase of the thousand-ton high-performance carbon fiber project. Notes payable decreased by 57.66%, dividends payable increased by 234.41%, and other payables increased by 42.38% Asset and Liability Status Changes (Period-end vs. Prior Year-end) | Item Name | Current Period-end Amount (yuan) | Current Period-end % of Total Assets | Prior Year-end Amount (yuan) | Prior Year-end % of Total Assets | Current Period-end Amount Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Prepayments | 401,261,269.75 | 0.49 | 294,730,672.83 | 0.36 | 36.15 | | Development Expenditures | 150,988,100.00 | 0.18 | 50,000,000.00 | 0.06 | 201.98 | | Notes Payable | 930,920,819.98 | 1.13 | 2,198,488,368.20 | 2.72 | -57.66 | | Other Payables | 3,051,347,848.51 | 3.71 | 2,143,110,066.79 | 2.65 | 42.38 | | Dividends Payable | 1,261,717,500.00 | 1.53 | 377,300,000.00 | 0.47 | 234.41 | | Non-current Liabilities Due Within One Year | 542,845,199.31 | 0.66 | 929,731,607.35 | 1.15 | -41.61 | - The increase in prepayments was mainly due to an increase in advance payments for goods[45] - The increase in development expenditures was mainly due to increased investment in the first phase of the thousand-ton high-performance carbon fiber project (200 tons/year demonstration project)[45] - The increase in dividends payable was mainly due to the recognition of increased cash dividends during the reporting period[45] 3. Major Asset Restrictions as of the End of the Reporting Period As of the end of the reporting period, the company's restricted monetary funds and accounts receivable totaled 2.017 billion yuan, primarily due to litigation freezes, guarantees, and loan pledges Major Asset Restrictions (Period-end) | Item | Period-end Book Value (yuan) | Restriction Reason | | :--- | :--- | :--- | | Monetary Funds | 1,869,823,195.78 | Bank deposits frozen by litigation, special accounts for land reclamation fees and mine environmental governance and restoration funds, bank acceptance bill margins, performance bonds, credit guarantees | | Accounts Receivable | 147,652,411.59 | Loan pledge | | Total | 2,017,475,607.37 | / | (4) Analysis of Investment Status The company's financial assets measured at fair value primarily include stocks and private equity funds, totaling 215 million yuan at period-end, with a slight increase in private equity funds during the current period (3). Financial Assets Measured at Fair Value The company's total financial assets measured at fair value at period-end were 215 million yuan, comprising 36 million yuan in stocks and 179 million yuan in private equity funds, with a small amount of private equity funds purchased during the current period Financial Assets Measured at Fair Value (Period-end) | Asset Category | Beginning Balance (yuan) | Current Period Purchase Amount (yuan) | Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | | Stocks | 36,000,000.00 | | 36,000,000.00 | | Private Equity Funds | 179,202,992.90 | 174,300.00 | 179,377,292.90 | | Total | 215,202,992.90 | 174,300.00 | 215,377,292.90 | (6) Analysis of Major Controlled and Investee Companies The company disclosed financial information for its major controlled subsidiaries and investee companies with a net profit impact exceeding 10%, covering coal mining, sales, power, heating, and new energy sectors, with some subsidiaries reporting losses during the period - The company's main subsidiaries include Kaiyuan Company, Xinjing Company, Yushupo Company, Qiyuan Company, Boli Company, etc., with businesses covering coal mining, sales, power, heating, and new energy[52] - Some subsidiaries, such as Jingfu Company, Pingshu Company, and Xinyang Energy Company, reported negative net profits during the reporting period[52] - Investee company Financial Company achieved a net profit of 111.8325 million yuan during the reporting period[52] V. Other Disclosure Matters The company identified cyclical risks in the coal industry and technological iteration risks in new energy and materials, developing corresponding strategies, and actively implemented its "Quality Improvement, Efficiency Enhancement, and Return" action plan, making progress in safety management, coal main business, new energy and materials development, information disclosure, investor relations, shareholder returns, and corporate governance (1) Potential Risks The company faces cyclical risks in the coal industry (supply-demand fluctuations, price drops) and technological iteration risks in new energy and materials (uncertainty of investment recovery), and has developed strategies including stable operations, dynamic production, cost reduction, stable revenue, full industry chain synergy, scenario-based application breakthroughs, and technological innovation cooperation - Coal industry cyclical risk: Demand fluctuations due to macroeconomic conditions, policy adjustments, and energy structure transformation may lead to price drops and overcapacity[53] - Response strategies include: enhancing coal quality through "full coal washing," comprehensive budget management for cost control, relying on "eight special teams" to strengthen production efficiency; flexibly adjusting output and product structure based on market changes; strictly executing expense budgets and continuously implementing cost reduction initiatives; adopting a "railway-first, long-term contract-first" sales strategy to stabilize revenue[53] - New energy and new materials industry technological iteration risk: Rapid technological updates in sodium-ion batteries, carbon fiber, etc., pose risks of uncertain investment recovery[53] - Response strategies include: leveraging anthracite resource advantages to build a full industry chain; focusing on niche markets like coal mine emergency power and low-speed electric vehicles to promote batch delivery; deeply binding with Zhongke Hainan and strengthening cooperation with research institutes and universities to drive technological innovation and achievement transformation[54] (2) Other Disclosure Matters In the first half of 2025, the company actively implemented its "Quality Improvement, Efficiency Enhancement, and Return" action plan, achieving significant progress in safety management, optimizing coal main business, innovating new energy and materials technologies, enhancing information disclosure and investor relations, ensuring shareholder returns, and standardizing corporate governance - Strengthened safety management, with Yushupo successfully passing the national first-level standardization mine re-inspection; the company allocated 614.84 million yuan for safety expenses this year, using 373.01 million yuan in the first half[55] - Focused on the coal main business, promoting high-yield and high-efficiency operations, strengthening process control in coal washing and processing, and Yujiazhuang obtained a mineral resource exploration permit[56] - Significant technological achievements in new energy and new materials development, such as the "High-Power Sodium-Ion Battery Coal Mine Emergency Power System" reaching international leading levels, and Huana Xinneng being listed among the 2025 Top 10 Innovative Energy Storage Applications[57] - Continuously optimized information disclosure and investor relations management, publishing 46 announcements in the first half with "zero errors," actively interacting with investors through online and offline platforms, receiving 297 investor visits, and answering 421 phone calls[58] - Firmly committed to shareholder return policy, distributing a cash dividend of 3.09 yuan per 10 shares (including tax) to all shareholders in 2025, with a dividend payout ratio of 50.11%, and cumulative dividends totaling 12.931 billion yuan[60] - Strengthened corporate governance structure, holding 4 board meetings, 1 supervisory board meeting, and 2 general meetings of shareholders in the first half, and enhancing the responsibility and performance capabilities of "key minorities"[61][63] Section IV Corporate Governance, Environment, and Society This section covers the company's corporate governance, including profit distribution plans, environmental information disclosure for its subsidiaries, and specific efforts in consolidating poverty alleviation achievements and rural revitalization II. Profit Distribution or Capital Reserve Conversion Plan The company did not distribute profits or convert capital reserves into share capital during the reporting period - During the reporting period, the company did not distribute profits or convert capital reserves into share capital[65] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law Nine of the company's subsidiaries are on the list of enterprises required to disclose environmental information by law, with query indexes provided for their respective environmental information disclosure reports - Nine of the company's subsidiaries are included in the list of enterprises required to disclose environmental information by law[66] - Environmental information disclosure reports for each enterprise can be queried through the Enterprise Environmental Information Disclosure System (Shanxi)[66][67] V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization In the first half of 2025, Huayang Shares systematically advanced poverty alleviation consolidation and rural revitalization through a "resident assistance + industrial assistance + consumption assistance" model, including dynamic monitoring to prevent relapse into poverty,慰问 activities, assistance project construction, increased industrial support, expanded employment channels, and enhanced effectiveness of consumption assistance - In terms of resident assistance, 1,000 person-times were surveyed for dynamic monitoring to prevent relapse into poverty, identifying 50 "three-category households" with no large-scale relapse; 406,300 yuan in relief supplies were distributed to 2,158 households; 8 assistance projects were completed[68][69] - In terms of industrial assistance, approximately 1.5 million catties of local and surrounding agricultural products were purchased, cold storage services were provided for approximately 4.3 million catties, and information-assisted sales of approximately 680,000 catties of fruit were facilitated; 9 employment positions were provided, absorbing 289 temporary workers, generating approximately 480,000 yuan in income[69] - In terms of consumption assistance, over 60 types of agricultural products, totaling 5.5858 million catties, were purchased; 5.6674 million catties of various assisted agricultural products were sold, with a consumption amount of 52.4305 million yuan[69] Section V Important Matters This section details the fulfillment of commitments, particularly regarding related party transactions and guarantees, addresses the impact of regulatory penalties on the controlling shareholder, and outlines the progress of major construction and new energy projects I. Fulfillment of Commitments Since 2000, the company's controlling shareholder, Huayang Group, has committed to avoiding horizontal competition and ensuring the listed company's priority rights to acquire assets, businesses, or interests. Huayang Group strictly fulfilled these commitments during the reporting period - Huayang Group committed to avoiding competition with the listed company's products or businesses and granting the listed company priority rights to produce or acquire new products or technologies, and to purchase assets, businesses, or interests[71] - During the reporting period, Huayang Group strictly fulfilled its commitment to avoid horizontal competition[71] VIII. Alleged Violations, Penalties, and Rectification of Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller The company's controlling shareholder received an investigation notice and a pre-penalty notice from the CSRC, but this penalty does not involve Huayang Shares and will not affect the company's daily operations. The company will maintain market trust and shareholder rights through improved governance, strengthened internal controls, timely information disclosure, and active investor communication - The company's controlling shareholder received an investigation notice and a pre-penalty notice from the China Securities Regulatory Commission on June 25 and July 2, 2025, respectively[72] - The aforementioned administrative penalty does not involve Huayang Shares and will not affect the company's daily production and business activities[72] - The company will maintain market trust and shareholder rights by improving governance, strengthening internal controls, timely information disclosure, and actively communicating with investors[72] X. Significant Related Party Transactions The company engaged in related party transactions related to daily operations and conducted financial business, including deposits, loans, and credit facilities, with an affiliated financial company. At period-end, deposits with the affiliated financial company totaled 5.205 billion yuan, and loans totaled 150 million yuan (1) Related Party Transactions Related to Daily Operations The company has disclosed resolutions regarding the execution of daily related party transactions for 2024 and the estimated daily related party transactions for 2025 in its interim announcements - The company disclosed the "Announcement on the Execution of Daily Related Party Transactions in 2024 and the Estimated Daily Related Party Transactions in 2025 of Shanxi Huayang Group Xinneng Co., Ltd." on April 26, 2025[73] (5) Financial Business Between the Company and Affiliated Financial Companies, and Between the Company's Controlled Financial Company and Related Parties The company conducted deposit, loan, and credit facility businesses with an affiliated financial company. At period-end, deposits with the financial company totaled 5.205 billion yuan, loans totaled 150 million yuan, actual credit facility usage was 150 million yuan, and entrusted loans were 3.369 billion yuan Deposit Business with Financial Company (Unit: 10,000 yuan) | Related Party | Related Relationship | Maximum Daily Deposit Limit | Deposit Interest Rate Range | Beginning Balance | Total Deposits This Period | Total Withdrawals This Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Company | Holding subsidiary of parent company | 1,700,000.00 | 0.2%-1.9% | 572,599.94 | 4,448,400.42 | 4,500,481.91 | 520,518.44 | Loan Business with Financial Company (Unit: 10,000 yuan) | Related Party | Related Relationship | Loan Limit | Loan Interest Rate Range | Beginning Balance | Total Loans This Period | Total Repayments This Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Company | Holding subsidiary of parent company | 400,000.00 | 2.19%-3.45% | 4,000.00 | 15,000.00 | 4,000.00 | 15,000.00 | Credit Facility and Other Financial Business with Financial Company (Unit: 10,000 yuan) | Related Party | Related Relationship | Business Type | Total Amount | Actual Amount | | :--- | :--- | :--- | :--- | :--- | | Financial Company | Holding subsidiary of parent company | Credit Facility | 400,000.00 | 15,000.00 | | Financial Company | Holding subsidiary of parent company | Entrusted Loans | 336,926.00 | 336,926.00 | | Financial Company | Holding subsidiary of parent company | Issuance of Performance Guarantees | 200.00 | 200.00 | XI. Significant Contracts and Their Fulfillment The company had multiple significant guarantees during the reporting period, primarily providing joint liability guarantees for subsidiaries' bank loans, totaling 7.733 billion yuan, representing 23.26% of the company's net assets, with 6.905 billion yuan for guaranteed entities with a debt-to-asset ratio exceeding 70% (2) Significant Guarantees Performed and Not Yet Performed During the Reporting Period At the end of the reporting period, the company's total guarantee balance for subsidiaries was 7.733 billion yuan, accounting for 23.26% of its net assets. Of this, 6.905 billion yuan was for guaranteed entities with a debt-to-asset ratio exceeding 70%. Major guaranteed entities include Boli Company, Qiyuan Company, Yangquan Thermal Power Company, Pingshu Railway Company, and Huana Xinneng Company Company's Total Guarantee Amount (Including Guarantees for Subsidiaries) | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Guarantee Amount for Subsidiaries During Reporting Period | 192,131.28 | | Total Guarantee Balance for Subsidiaries at Period-end (B) | 773,276.60 | | Total Guarantee Amount (A+B) | 773,276.60 | | Percentage of Net Assets (%) | 23.26 | | Of which: Guarantees for Shareholders, Actual Controllers, and Their Related Parties (C) | | | Debt Guarantees for Entities with Debt-to-Asset Ratio Exceeding 70% (D) | 690,460.18 | | Total of the Above Three Guarantee Amounts (C+D+E) | 690,460.18 | - The company provided multiple joint liability guarantees for bank loans of subsidiaries such as Boli Company, Qiyuan Company, Yangquan Thermal Power Company, Pingshu Railway Company, Huachuang Optoelectronics Company, New Energy Sales Company, Huana Xinneng Company, and Huana Technology Management Company[84][85][87][88][89] - Some guarantees were counter-guaranteed by the controlling shareholder Huayang Group with mining rights, or by subsidiaries with power tariff collection rights, land, plant, and equipment as pledges/mortgages[84][85][87][89] XIII. Explanation of Other Significant Matters The company's ongoing coal mine construction projects (Qiyuan Company, Boli Company) are progressing smoothly with substantial cumulative investments. Sodium-ion battery cathode and anode material projects, cell and Pack battery projects, Yujiazhuang coal mine project, and high-performance carbon fiber project are all advancing as planned, with some having completed plant construction or entered commissioning, demonstrating the company's active strategic layout in new energy and new materials 1. Progress of Coal Mine Construction Projects Under Construction The Qiyuan Company coal mine construction project achieved joint trial operation on December 15, 2024, with a cumulative investment of 5.637 billion yuan. The Boli Company coal mine construction project had a cumulative investment of 4.55 billion yuan, completing 6,334 meters of tunneling in the first half of 2025 - Qiyuan Company coal mine construction project, with an approved production capacity of 5 million tons/year, achieved joint trial operation on December 15, 2024, with a cumulative investment of 5.637 billion yuan[90] - Boli Company coal mine construction project, with an approved production capacity of 5 million tons/year, had a cumulative investment of 4.55 billion yuan, completing 6,334 meters of tunneling in the first half of 2025[90] 2. Sodium-Ion Battery Cathode and Anode Material Projects The thousand-ton sodium-ion battery cathode and anode material project is completed, and the plant construction for the ten-thousand-ton project is finished, with basement wall masonry, foundation pit backfilling, exterior wall waterproofing, protective layer completed, and dormitory building main structure finished - The thousand-ton sodium-ion battery cathode and anode material project, with a total investment of approximately 130 million yuan, has been completed[91] - The ten-thousand-ton sodium-ion battery cathode and anode material project, with a total investment of approximately 1.14 billion yuan, as of the first half of 2025, has completed all plant construction, basement wall masonry, foundation pit backfilling, exterior wall waterproofing, protective layer, and the main structure of the dormitory building[91] 3. Sodium-Ion Battery Cell Project and Pack Battery Project The sodium-ion battery cell and Pack battery projects are implemented by Shanxi Huana Xinneng Technology Co., Ltd., which operates the world's first production line for sodium-ion cells, Pack batteries, and energy storage integration, and its independently developed sodium-ion coal mine emergency power system has successfully operated and reached international leading levels - The sodium-ion battery cell project has a total investment of approximately 316 million yuan, and the Pack battery project has a total investment of approximately 73 million yuan, both implemented by Shanxi Huana Xinneng Technology Co., Ltd[92] - Huana Xinneng Company owns the world's first production lines for sodium-ion cells (1GWh), sodium-ion Pack batteries (1GWh), and energy storage integration (1GWh)[92] - The independently developed sodium-ion coal mine emergency power system has successfully operated in Jingfu Mine and Kaiyuan Mine, was selected as one of the "Top 10 Innovative Energy Storage Applications" in the International Energy Storage Innovation Competition, and has reached an overall international leading level[92] 4. Yujiazhuang Coal Mine Project In August 2024, the company successfully bid for the coal exploration right of the Yujiazhuang block in Shouyang County, Shanxi Province, with geological reserves of approximately 630 million tons. As of June 30, 2025, the company has obtained the exploration permit for Yujiazhuang, and exploration engineering and feasibility study report preparation are progressing orderly - On August 22, 2024, the company successfully bid for the coal exploration right of the Yujiazhuang block in Shouyang County, Shanxi Province, for 6.8 billion yuan, with geological reserves of approximately 630 million tons[93] - As of June 30, 2025, the company has obtained the Yujiazhuang mineral resource exploration permit, and exploration engineering is being organized and implemented as planned, with the project feasibility study report also being prepared concurrently[94] 5. High-Performance Carbon Fiber Project The high-performance carbon fiber project, with a total investment of approximately 608 million yuan, is implemented by Shanxi Huayang Carbon Material Technology Co., Ltd. The project commenced full construction on June 15, 2024, and as of the first half of 2025, the public auxiliary workshop completed unit joint debugging, the polymerization workshop completed hot commissioning, the spinning workshop initiated wire drawing joint debugging, and the carbonization workshop continued full-line trial operation - The high-performance carbon fiber project has a total investment of approximately 608 million yuan, implemented by the company's controlled subsidiary Shanxi Huayang Carbon Material Technology Co., Ltd[95] - The project commenced full construction on June 15, 2024; as of the first half of 2025, the public auxiliary workshop completed unit joint debugging, the polymerization workshop completed hot commissioning, the spinning workshop initiated wire drawing joint debugging, and the carbonization workshop continued full-line trial operation[95] Section VI Share Changes and Shareholder Information This section details the company's share capital structure, which remained unchanged during the reporting period, and provides an overview of its shareholders, including the controlling shareholder and top ten shareholders I. Share Capital Changes The company's total share capital and share structure remained unchanged during the reporting period 1. Table of Share Capital Changes The company's total share capital and share structure remained unchanged during the reporting period - During the reporting period, the company's total share capital and share structure remained unchanged[97] II. Shareholder Information As of the end of the reporting period, the company had 104,228 common shareholders. The controlling shareholder, Huayang New Materials Technology Group Co., Ltd., held 55.52% of shares and pledged a portion of its holdings. The top ten shareholders included several institutional investors (1) Total Number of Shareholders: As of the end of the reporting period, the total number of common shareholders was 104,228 - As of the end of the reporting period, the total number of common shareholders was 104,228[98] (2) Table of Top Ten Shareholders and Top Ten Circulating Shareholders (or Shareholders with No Restricted Shares) as of the End of the Reporting Period As of the end of the reporting period, Huayang New Materials Technology Group Co., Ltd. was the controlling shareholder, holding 55.52% of the company's shares and pledging 13.76% of its holdings. The top ten shareholders also included institutional investors such as Hong Kong Securities Clearing Company Limited and ICBC – Guotai CSI Coal ETF Top Ten Shareholders' Holdings (As of Period-end) | Shareholder Name | Period-end Holding Quantity (shares) | Percentage (%) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | | Huayang New Materials Technology Group Co., Ltd. | 2,003,021,367 | 55.52 | Pledged | 275,559,560 | | Hong Kong Securities Clearing Company Limited | 29,676,217 | 0.82 | Unrestricted | 0 | | Industrial and Commercial Bank of China Co., Ltd. – Guotai CSI Coal Exchange Traded Open-ended Index Securities Investment Fund | 28,016,267 | 0.78 | Unrestricted | 0 | | Agricultural Bank of China Co., Ltd. – CSI 500 Exchange Traded Open-ended Index Securities Investment Fund | 26,754,512 | 0.74 | Unrestricted | 0 | | Guoxin Securities Co., Ltd. | 22,668,911 | 0.63 | Unrestricted | 0 | - Huayang New Materials Technology Group Co., Ltd. pledged 275,559,560 shares, accounting for 13.76% of its total holdings in the company and 7.64% of the company's total share capital[101] Section VII Bond-Related Information This section details the company's issuance of multiple tranches of technology innovation perpetual corporate bonds to professional investors, totaling 6 billion yuan, with interest rates ranging from 2.51% to 2.95%, none of which had their options exercised. It also covers the company's debt structure and key financial indicators related to debt I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company issued multiple tranches of technology innovation perpetual corporate bonds to professional investors, totaling 6 billion yuan, with interest rates between 2.51% and 2.95%, none of which had their options exercised. These bonds were classified as innovation-driven enterprise issuers. At period-end, the company's consolidated interest-bearing debt balance was 25.993 billion yuan, a year-on-year change of 17.26% (1) Corporate Bonds (Including Enterprise Bonds) The company issued multiple tranches of technology innovation perpetual corporate bonds to professional investors, totaling 6 billion yuan, with interest rates between 2.51% and 2.95%, none of which had their renewal, deferred interest payment, or redemption options exercised 1. Basic Information of Corporate Bonds The company issued five tranches of perpetual corporate bonds to professional investors, totaling 6 billion yuan, with interest rates ranging from 2.51% to 2.95%, all listed and traded on the Shanghai Stock Exchange Basic Information of Corporate Bonds (As of Period-end) | Bond Name | Abbreviation | Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance (billion yuan) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 Publicly Issued Technology Innovation Perpetual Corporate Bonds (Tranche 1) to Professional Investors | Huayang YK01 | 240807.SH | 2024-3-25 | 2024-3-27 | 2026-3-27 | 20.00 | 2.88 | Shanghai Stock Exchange | | 2024 Publicly Issued Technology Innovation Perpetual Corporate Bonds (Tranche 2) to Professional Investors | Huayang YK02 | 240929.SH | 2024-4-18 | 2024-4-22 | 2026-4-22 | 10.00 | 2.57 | Shanghai Stock Exchange | | 2024 Publicly Issued Perpetual Corporate Bonds (Tranche 1) (Type 1) to Professional Investors | 24 Huayang Y1 | 241770.SH | 2024-10-22 | 2024-10-24 | 2026-10-24 | 5.00 | 2.51 | Shanghai Stock Exchange | | 2024 Publicly Issued Perpetual Corporate Bonds (Tranche 1) (Type 2) to Professional Investors | 24 Huayang Y2 | 241771.SH | 2024-10-22 | 2024-10-24 | 2027-10-24 | 10.00 | 2.95 | Shanghai Stock Exchange | | 2024 Publicly Issued Perpetual Corporate Bonds (Tranche 2) (Type 2) to Professional Investors | 24 Huayang Y4 | 241972.SH | 2024-11-21 | 2024-11-25 | 2027-11-25 | 15.00 | 2.71 | Shanghai Stock Exchange | 2. Triggering and Execution of Company or Investor Option Clauses and Investor Protection Clauses During the reporting period, none of the company's perpetual corporate bonds had their renewal, deferred interest payment, or redemption options exercised, nor were any investor protection clauses triggered - Bonds such as Huayang YK01, Huayang YK02, 24 Huayang Y1, 24 Huayang Y2, and 24 Huayang Y4 all include issuer renewal options, deferred interest payment options, issuer redemption options, as well as issuer credit maintenance commitments and remedy clauses[106] - During the reporting period, none of the aforementioned bonds had any options exercised[106] (3) Other Matters to be Disclosed for Special Category Bonds The company's multiple tranches of perpetual corporate bonds were classified as innovation-driven enterprise issuers, all in their first cycle during the reporting period, with no interest rate step-ups or deferred interest, and were accounted for as equity instruments 3. The Company as an Issuer of Perpetual Corporate Bonds Huayang YK01, Huayang YK02, 24 Huayang Y1, 24 Huayang Y2, and 24 Huayang Y4 are all perpetual corporate bonds issued by the company, all in their first cycle during the reporting period, with fixed interest rates, no deferred interest or mandatory interest payments, and are accounted for as other equity instruments - Huayang YK01, Huayang YK02, 24 Huayang Y1, 24 Huayang Y2, and 24 Huayang Y4 are all perpetual corporate bonds, all in their first cycle during the reporting period, with fixed interest rates[108][109] - All perpetual bonds did not involve deferred interest or mandatory interest payments during the reporting period and were accounted for as other equity instruments[108][109] 7. The Company as an Issuer of Technology Innovation Corporate Bonds or Innovation and Entrepreneurship Corporate Bonds The company's Huayang YK01 and Huayang YK02 bonds were classified as innovation-driven enterprise issuers, but the use of proceeds does not involve disclosure of progress in innovation projects or the effect of promoting technological innovation - The issuer category for Huayang YK01 and Huayang YK02 bonds is "innovation-driven enterprise"[111] - These bonds do not involve the progress of innovation projects, and the use of proceeds does not involve the effect of promoting technological innovation[111] (4) Important Matters Related to Corporate Bonds During the Reporting Period At the end of the reporting period, the company's consolidated non-operating receivables and intercompany borrowings totaled 569 million yuan, not exceeding 10% of consolidated net assets. Consolidated interest-bearing debt was 25.993 billion yuan, a year-on-year change of 17.26%, with bank loans accounting for 99% 1. Non-Operating Receivables and Intercompany Borrowings At the end of the reporting period, the company's consolidated non-operating receivables and intercompany borrowings totaled 569 million yuan, accounting for 1.50% of consolidated net assets, not exceeding 10% Non-Operating Receivables and Intercompany Borrowings Balance (Period-end) | Unit Name | Period-end Balance (yuan) | Nature of Payment | Age | Impairment Provision Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Yangquan Coal Industry (Group) Pingding Taichang Coal Industry Co., Ltd. | 547,055,470.20 | Borrowing from former controlled subsidiary | Over 5 years | 547,055,470.20 | | China Railway Taiyuan Bureau Group Co., Ltd. - Shanxi Joint Venture Railway Transportation Dispatching Coordination Center Project Management Department | 22,000,000.00 | Dispatching Coordination Center Project Funds | Over 5 years | 22,000,000.00 | | Total | 569,055,470.20 | | | 569,055,470.20 | - At the end of the reporting period, the proportion of unrecovered consolidated non-operating receivables and intercompany borrowings to consolidated net assets was 1.50%, not exceeding 10%[114] 2. Liability Status At the end of the reporting period,