Section I Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=Important%20Notice) The board, supervisory board, and senior management guarantee the report's accuracy, with no plans for cash dividends or capital reserve conversions - The company's board, supervisory board, and senior management guarantee the semi-annual report's **truthfulness, accuracy, and completeness**, assuming individual and joint legal responsibility[4](index=4&type=chunk) - Company head Zheng Jingchang, chief accountant Fu Wenda, and accounting department head Zhan Huilu declare the financial report's **truthfulness, accuracy, and completeness**[4](index=4&type=chunk) - The company plans **no cash dividends, no bonus shares, and no capital reserve conversions**[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section presents the report's structured table of contents, outlining nine main chapters for a comprehensive overview - The report's table of contents includes **nine main chapters**, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data[7](index=7&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company names, exchanges, regulations, currency units, reporting periods, and key business models like EPC, ensuring clear understanding - “Company,” “the Company,” “China Wuyi,” and “Wuyi Company” refer to **China Wuyi Industrial Co, Ltd**[11](index=11&type=chunk) - “Reporting Period” refers to **January 1, 2025, to June 30, 2025**[11](index=11&type=chunk) - “EPC” refers to **Engineering, Procurement, and Construction**, a model where the company undertakes the entire or partial process of project design, procurement, construction, and commissioning as per contract[11](index=11&type=chunk) Section II Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=Company%20Profile) China Wuyi Industrial Co, Ltd (stock code: 000797) is listed on the Shenzhen Stock Exchange, with Zheng Jingchang as its legal representative - The company's stock abbreviation is “China Wuyi,” stock code “000797,” listed on the **Shenzhen Stock Exchange**[13](index=13&type=chunk) - The company's legal representative is **Zheng Jingchang**[13](index=13&type=chunk) [Contact Person and Contact Information](index=6&type=section&id=Contact%20Person%20and%20Contact%20Information) Huang Cheng serves as both the Board Secretary and Securities Affairs Representative, with the office located at 4th Floor, Zhidi Plaza, 89 Wusi Road, Fuzhou, Fujian Province, and contact details including phone, fax, and email provided - The Board Secretary and Securities Affairs Representative are both **Huang Cheng**[14](index=14&type=chunk) - Contact address is 4th Floor, Zhidi Plaza, 89 Wusi Road, Fuzhou, Fujian Province, phone **0591-88323721**, fax **0591-88323811**, email **gzb@chinawuyi.com.cn**[14](index=14&type=chunk) [Other Information](index=6&type=section&id=Other%20Information) The company's registered address, office address, postal code, website, email, information disclosure, and document storage locations remained unchanged during the reporting period, with details available in the 2024 annual report - The company's registered address, office address, postal code, website, and email remained **unchanged** during the reporting period[15](index=15&type=chunk) - The company's designated website and media for semi-annual report disclosure, along with the report's storage location, also remained **unchanged** during the reporting period[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2025, the company's operating revenue significantly decreased by 51.96% year-on-year, and net profit attributable to shareholders turned from profit to loss, decreasing by 146.34% to -92.99 million yuan, while net cash flow from operating activities improved, and total assets increased by 4.51% with net assets decreasing by 1.88% 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,581,150,004.28 | 3,291,277,438.39 | -51.96% | | Net Profit Attributable to Shareholders of the Listed Company | -92,995,611.66 | 200,666,256.79 | -146.34% | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | -97,571,224.46 | 219,107,695.56 | -144.53% | | Net Cash Flow from Operating Activities | -243,496,190.99 | -346,765,329.45 | 29.78% | | Basic Earnings Per Share (yuan/share) | -0.0592 | 0.1278 | -146.32% | | Diluted Earnings Per Share (yuan/share) | -0.0592 | 0.1278 | -146.32% | | Weighted Average Return on Net Assets | -1.80% | 3.86% | -5.66% | | **End of Current Reporting Period (yuan)** | **End of Prior Year (yuan)** | **Change from End of Prior Year** | | | Total Assets | 25,132,075,473.85 | 24,047,944,517.32 | 4.51% | | Net Assets Attributable to Shareholders of the Listed Company | 5,111,616,732.97 | 5,209,658,895.76 | -1.88% | [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under International Accounting Standards or overseas accounting standards and those prepared under Chinese Accounting Standards - The company reported **no differences** in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[18](index=18&type=chunk) - The company reported **no differences** in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[19](index=19&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to 4.5756 million yuan, primarily including gains/losses from disposal of non-current assets, government subsidies, fair value changes of financial assets, and other non-operating income/expenses 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 342,089.75 | | Government Subsidies Included in Current Profit and Loss | 3,208,213.83 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-Financial Enterprises | 724,954.44 | | Reversal of Impairment Provisions for Accounts Receivable Subject to Separate Impairment Testing | 156,318.39 | | Other Non-Operating Income and Expenses Apart from the Above | 1,364,521.02 | | Other Gains and Losses Meeting the Definition of Non-Recurring Gains and Losses | 77,699.54 | | Less: Income Tax Impact | 1,126,690.50 | | Impact on Minority Interests (After Tax) | 171,493.67 | | **Total** | **4,575,612.80** | - Other gains and losses meeting the definition of non-recurring gains and losses primarily include **individual income tax handling fee refunds and tax reductions**, totaling **77,699.54 yuan**[21](index=21&type=chunk) Section III Management Discussion and Analysis [Company's Main Businesses During the Reporting Period](index=9&type=section&id=Company%27s%20Main%20Businesses%20During%20the%20Reporting%20Period) The company's core businesses encompass international engineering contracting, real estate development, commercial trade, and property services, forming a diversified "two main, two auxiliary, one support" development structure, with a focus on optimizing growth, revitalizing existing assets, and mitigating risks - During the reporting period, the company's main businesses included **international engineering contracting, real estate development, commercial trade, and property services**[24](index=24&type=chunk) - The company has gradually established a business portfolio with **integrated real estate and international engineering as core, supply chain comprehensive services as support, and property services and innovative investments as auxiliary**, forming a diversified and strategically synergistic development pattern[26](index=26&type=chunk) - In the first half of 2025, the company actively focused on **optimizing incremental growth, revitalizing existing assets, and mitigating risks** to steadily enhance operational quality and efficiency[35](index=35&type=chunk) [International Engineering Contracting Business](index=9&type=section&id=International%20Engineering%20Contracting%20Business) China's overseas contracting engineering sector maintained steady growth amidst fierce competition, with China Wuyi, a pioneer in Fujian Province's "going out" strategy, deeply integrating into the "dual circulation" development pattern and consistently ranking among ENR's Top 250 International Contractors, primarily operating through bidding for construction general contracting and EPC projects - From January to June 2025, China's overseas contracting engineering business completed an operating turnover of **561.21 billion yuan**, a year-on-year increase of **9.3%**, with new contract value reaching **933.19 billion yuan**, up **13.7%**[25](index=25&type=chunk) - China Wuyi has consistently ranked among the **Top 250 International Contractors** by Engineering News-Record (ENR), was rated as an AAA-level credit enterprise for overseas contracting, and was honored among the **Top 100 Chinese Overseas Contracting Enterprises**[26](index=26&type=chunk) - The company's international engineering contracting business primarily secures projects through **bidding**, with construction general contracting as the main operating model, and some projects adopting the **EPC model**[26](index=26&type=chunk) [Real Estate Development Business](index=10&type=section&id=Real%20Estate%20Development%20Business) In the first half of 2025, national real estate development investment decreased by 11.2% year-on-year, indicating a market still in adjustment but with narrowing declines, while the company's real estate business primarily acquires land through public markets for development, sales, and operation, covering diverse property types and expanding into precision medicine and cultural tourism real estate, both domestically and internationally - From January to June 2025, national real estate development investment totaled **4.6658 trillion yuan**, a year-on-year decrease of **11.2%**[30](index=30&type=chunk) - The company's real estate development and operation model primarily involves **acquiring land from the open market for development, sales, and operation**[31](index=31&type=chunk) - The company's real estate business covers diverse property types including **residential, villas, apartments, shopping malls, office buildings, and hotels**, and has recently expanded into areas such as **precision medicine and cultural tourism real estate**[31](index=31&type=chunk) [Commercial Trade Business](index=10&type=section&id=Commercial%20Trade%20Business) The company's commercial trade business, primarily conducted by Zhongwu E-commerce, focuses on cross-border supply chain operation services, with China's goods trade import and export value increasing by 2.9% in the first half of the year, and Zhongwu E-commerce deepening its expertise in cross-border two-way trade of bulk commodities, providing full lifecycle supply chain services to domestic and international clients, and earning multiple industry accolades - The company's commercial trade business primarily refers to the **cross-border supply chain operation services** provided by Zhongwu E-commerce[32](index=32&type=chunk) - In the first half of this year, China's total goods trade import and export value reached **21.79 trillion yuan**, a year-on-year increase of **2.9%**[33](index=33&type=chunk) - Zhongwu E-commerce specializes in cross-border supply chain operation services, covering bulk commodities such as **engineering machinery and equipment, building materials, agricultural products, energy materials, and rare dispersed metals**, and has received honors including **UN procurement project orders and Fujian Province's "Little Giant" leading technology enterprise**[34](index=34&type=chunk) [Main Work Carried Out by the Company During the Reporting Period](index=11&type=section&id=Main%20Work%20Carried%20Out%20by%20the%20Company%20During%20the%20Reporting%20Period) In the first half of 2025, the company focused on market expansion, reform and innovation, and comprehensive strict party governance, accelerating real estate sales and product R&D, optimizing international engineering layout, exploring new trade models with Zhongwu E-commerce, expanding property management, deepening lean management, reducing "two funds" (receivables and inventory), advancing "three systems" reform, and strengthening party leadership and integrity culture - The real estate business actively utilized housing voucher policies and "construction-offsetting properties" to achieve **sales contract value of 1.529 billion yuan**, sales area of **73,400 square meters**, and cash回笼 of **1.054 billion yuan**[36](index=36&type=chunk) - The international engineering business intensified its **Southeast Asia expansion**, establishing the Philippines as a development hub, with Malaysian and Indonesian offices entering operational phases[36](index=36&type=chunk) - The company actively promoted the **reduction of "two funds" (receivables and inventory)**, strengthening accounts receivable management in the international engineering sector and establishing a commercial management department for unified commercial operations in the real estate sector[38](index=38&type=chunk) - The company continued to deepen the **"three systems" reform**, completed talent inventory, formulated management team tenure and contractual management methods, and solidly advanced compliance management[38](index=38&type=chunk) [Company's Operating Performance During the Reporting Period](index=12&type=section&id=Company%27s%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue was 1.581 billion yuan, a year-on-year decrease of 51.96%, with net profit attributable to the parent company at a loss of 92.9956 million yuan, a year-on-year decrease of 146.34%, primarily due to a decrease in real estate development business revenue, while international engineering contracting business revenue also saw a slight decline, and the company continued to optimize its land reserves and disclosed key project development, sales, leasing, and financing information - During the reporting period, the company achieved operating revenue of **1.581 billion yuan**, a year-on-year decrease of **51.96%**; net profit attributable to parent company shareholders was **-92.9956 million yuan**, a year-on-year decrease of **146.34%**[40](index=40&type=chunk) - International engineering contracting business operating revenue was **518 million yuan**, a year-on-year decrease of **10.82%**; completed construction output was **941 million yuan**[42](index=42&type=chunk) - Real estate development business operating revenue was **395 million yuan**, a year-on-year decrease of **80.47%**; new construction area was **56,200 square meters**, pre-sale (sales) area was **73,400 square meters**, and recognized sales area was **32,500 square meters**[50](index=50&type=chunk) 2025 Semi-Annual Real Estate Development Business Financing Channels | Financing Channel | Ending Financing Balance (10,000 yuan) | Financing Cost Range/Average Financing Cost | Within 1 Year (10,000 yuan) | 1-2 Years (10,000 yuan) | 2-3 Years (10,000 yuan) | Over 3 Years (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 1,000,520.45 | 2.5%-4.75% | 613,119.96 | 147,033.24 | 218,617.99 | 21,749.26 | | Bills | 19,542.3 | 2%-3% | 19,542.30 | | | | | Trust Financing | 9,029 | 8.35% | 9,029.00 | | | | | Other | 269.06 | 3.5% | 98.47 | 170.59 | | | | **Total** | **1,029,360.81** | | **641,789.73** | **147,203.83** | **218,617.99** | **21,749.26** | [Analysis of Core Competitiveness](index=18&type=section&id=Analysis%20of%20Core%20Competitiveness) The company's core competitiveness stems from its scientific strategic planning, strong brand reputation, experienced talent pool, and significant financing advantages, aiming to become a globally competitive enterprise with sustained value creation through diversified business, standardized management, and technological innovation - The company consistently aims to be an **excellent enterprise with global competitiveness and sustained value creation**, having formulated a scientific and reasonable medium-to-long-term development strategy[63](index=63&type=chunk) - The company has consistently ranked among the **Top 250 International Contractors** by Engineering News-Record (ENR), was rated as an AAA-level credit enterprise for overseas contracting, and was selected among the **Top 100 Chinese Overseas Contracting Enterprises**[65](index=65&type=chunk) - The company has built an **experienced, highly professional, and internationally-minded team** of management and technical personnel with a reasonable age structure[67](index=67&type=chunk) - As a state-owned enterprise-backed listed company, it possesses **high-quality assets, stable financial conditions, and a strong market reputation**, giving it significant financing capabilities[68](index=68&type=chunk) [Analysis of Main Business](index=20&type=section&id=Analysis%20of%20Main%20Business) During the reporting period, the company's operating revenue decreased by 51.96% year-on-year, primarily due to reduced real estate project recognition, with real estate development revenue declining by 80.47% while property services and other businesses saw growth, and no significant changes occurred in the company's profit composition or sources 2025 Semi-Annual Main Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,581,150,004.28 | 3,291,277,438.39 | -51.96% | Primarily due to reduced recognition of real estate projects in the current period | | Operating Cost | 1,441,382,757.07 | 2,201,269,495.48 | -34.52% | Primarily due to reduced recognition of real estate projects in the current period | | Selling Expenses | 38,744,840.52 | 76,651,496.34 | -49.45% | Primarily due to reduced recognition of real estate projects in the current period, leading to a decrease in corresponding agency sales expenses | | Financial Expenses | 55,972,677.85 | -54,751,303.13 | 202.23% | Primarily due to increased exchange losses year-on-year | | Income Tax Expense | 30,348,059.04 | 225,633,062.66 | -86.55% | Primarily due to reduced recognition of real estate projects in the current period, leading to a decrease in corresponding income tax expense | | Net Cash Flow from Operating Activities | -243,496,190.99 | -346,765,329.45 | 29.78% | Primarily due to a year-on-year decrease in various taxes and fees paid in the current period | | Net Cash Flow from Investing Activities | -2,791,369.07 | -7,827,136.90 | 64.34% | Primarily due to increased cash received from investment recovery in the current period | | Net Cash Flow from Financing Activities | 568,754,650.14 | 357,421,267.47 | 59.13% | Primarily due to a year-on-year decrease in debt repayment in the current period | | Net Increase in Cash and Cash Equivalents | 336,791,581.05 | 9,948,626.67 | 3,285.31% | Primarily due to an increase in net cash flow from financing activities in the current period | 2025 Semi-Annual Operating Revenue Composition (by Industry) | By Industry | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Engineering Contracting Business | 517,754,931.87 | 32.75% | 580,589,034.29 | 17.64% | -10.82% | | Real Estate Development Business | 395,285,019.16 | 25.00% | 2,024,000,800.40 | 61.50% | -80.47% | | Commercial Trade Business | 616,130,559.73 | 38.97% | 655,205,242.62 | 19.91% | -5.96% | | Property Services | 30,439,274.38 | 1.93% | 22,688,822.01 | 0.69% | 34.16% | | Leasing and Other Businesses | 21,540,219.14 | 1.36% | 8,793,539.07 | 0.27% | 144.96% | - The company's **profit composition or sources of profit did not undergo significant changes** during the reporting period[70](index=70&type=chunk) [Analysis of Non-Main Business](index=22&type=section&id=Analysis%20of%20Non-Main%20Business) During the reporting period, the company's non-main businesses contributed some profit, primarily from investment income, asset impairment reversals, and non-operating income, though these gains are not sustainable 2025 Semi-Annual Non-Main Business Profit Composition | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 4,430,917.10 | 5.94% | Primarily due to higher income from associate Fujian Zhongfu Labor Cooperation Co, Ltd in the current period | No | | Fair Value Change Gains/Losses | 67,785.86 | 0.09% | | No | | Asset Impairment | 4,615,346.72 | 6.18% | Primarily due to reversal of contract asset impairment in the current period | No | | Non-Operating Income | 2,423,476.70 | 3.25% | Primarily insurance claims and penalties for buyer withdrawals after online housing registration | No | | Non-Operating Expenses | 721,806.31 | 0.97% | Primarily losses from disposal of non-current assets | No | [Analysis of Assets and Liabilities](index=22&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets increased by 4.51% year-on-year to 25.132 billion yuan, mainly due to an increase in contract liabilities and non-current liabilities due within one year, with inventory still accounting for 62.18% of total assets, and the company holding multiple overseas assets, while the total restricted assets amounted to 4.516 billion yuan - At the end of the reporting period, total assets were **25.132 billion yuan**, an increase of **4.51%** compared to the end of the previous year[17](index=17&type=chunk) - Contract liabilities increased by **37.4%**, primarily due to an increase in pre-sale housing payments[75](index=75&type=chunk) - Non-current liabilities due within one year increased by **63.47%**, primarily due to an increase in long-term loans transferred to this category in the current period[75](index=75&type=chunk) - As of the end of the first half of 2025, the company's total restricted assets amounted to **4.516 billion yuan**[80](index=80&type=chunk) [Analysis of Investment Status](index=25&type=section&id=Analysis%20of%20Investment%20Status) During the reporting period, the company's investment amounted to -9.75 million yuan, a year-on-year change of 320.08%, mainly due to the establishment of a subsidiary and capital reduction, with financial asset investments including securities and derivatives for hedging purposes, primarily forward foreign exchange transactions to mitigate exchange rate risks 2025 Semi-Annual Investment Amount Changes | Indicator | Investment Amount in Current Period (yuan) | Investment Amount in Prior Year Period (yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Investment Amount | -9,750,000.00 | -2,321,005.00 | 320.08% | - During the reporting period, Nanan Zhongwu Real Estate Co, Ltd was established with a registered capital investment of **15 million yuan**; Nanping Zhaoheng Wuyi Real Estate Development Co, Ltd reduced its capital by **24.75 million yuan**[81](index=81&type=chunk) - The company's wholly-owned subsidiary, Zhongwu E-commerce, conducts forward foreign exchange transactions with banks and other financial institutions using its own funds for production and hedging purposes, with a total transaction amount not exceeding **50 million US dollars**[85](index=85&type=chunk) - The company had **no derivative investments for speculative purposes** during the reporting period[87](index=87&type=chunk) [Major Asset and Equity Sales](index=29&type=section&id=Major%20Asset%20and%20Equity%20Sales) The company did not undertake any major asset or equity sales during the reporting period - The company did **not sell any major assets** during the reporting period[89](index=89&type=chunk) - The company did **not sell any major equity** during the reporting period[90](index=90&type=chunk) [Analysis of Major Holding and Participating Companies](index=29&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company consolidated 77 subsidiaries in the current period, with Beijing Wuyi Real Estate Development Co, Ltd, Fuzhou Guiwu Real Estate Co, Ltd, and China Wuyi Kenya Construction Industrialization Co, Ltd among those significantly impacting the company's net profit - The company consolidated a total of **77 subsidiaries** in the current period[180](index=180&type=chunk) 2025 Semi-Annual Major Subsidiaries and Associate Companies with Net Profit Impact Exceeding 10% | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Wuyi Real Estate Development Co, Ltd | Subsidiary | Real Estate Development | 41,847,134.27 | 7,625,277,520.25 | 2,428,385,311.20 | 169,452,256.59 | 52,365,104.19 | 39,827,257.20 | | Fuzhou Guiwu Real Estate Co, Ltd | Subsidiary | Real Estate Development | 50,000,000.00 | 911,968,771.47 | -287,149,134.17 | 5,017.61 | -26,276,579.24 | -26,276,579.24 | | China Wuyi Kenya Construction Industrialization Co, Ltd | Subsidiary | Construction and Installation | 660,000.00 | 409,102,306.62 | -255,110,687.25 | 16,284,298.20 | -12,647,109.14 | -12,647,109.14 | | China Wuyi Congo (Brazzaville) Co, Ltd | Subsidiary | Engineering Contracting | 127,000.00 | 96,366,981.09 | -178,333,676.09 | 5,702,126.80 | 29,608,284.13 | 29,608,284.13 | | Fuzhou Wuyi Binhai Real Estate Development Co, Ltd | Subsidiary | Real Estate Development | 50,000,000.00 | 1,316,654,271.38 | -383,323,853.60 | | -40,404,319.87 | -40,404,319.87 | | Fuzhou Fuyin Precision Medicine Development Co, Ltd | Subsidiary | Scientific Research and Technical Services | 100,000,000.00 | 272,654,856.66 | -26,896,648.78 | 1,177,963.64 | -16,848,104.37 | -16,848,104.37 | | Chongqing Tianren Real Estate Co, Ltd | Subsidiary | Real Estate Development | 30,000,000.00 | 555,932,739.46 | -84,279,878.11 | 4,455,034.33 | -21,061,629.08 | -21,063,048.38 | | Fuding Wuyi Real Estate Development Co, Ltd | Subsidiary | Real Estate Development | 30,000,000.00 | 592,750,503.54 | -3,143,176.27 | 135,869,780.72 | -26,754,452.29 | -26,801,519.59 | [Structured Entities Controlled by the Company](index=30&type=section&id=Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company had **no structured entities under its control** during the reporting period[93](index=93&type=chunk) [Risks Faced by the Company and Countermeasures](index=30&type=section&id=Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks related to the macroeconomic environment, real estate market, and international business operations, which it plans to address through optimizing market layout, adjusting marketing strategies, strengthening cost control, and managing foreign exchange risks to ensure sustainable development and financial security - The company primarily faces **macroeconomic environment risks, real estate industry market risks, and international business operating risks**[93](index=93&type=chunk) - The company will strengthen in-depth research on macroeconomic policies, industry policies, and industry development trends, **optimize market layout**, and steadily implement a regionalized operation strategy[94](index=94&type=chunk) - The company will closely monitor market trends, adhere to a sustainable development strategy, build a new real estate development model, and implement **multiple measures to adjust marketing strategies** to accelerate real estate sales and cash回笼[95](index=95&type=chunk) - To prevent operating risks in international business, the company will further **optimize market layout, improve project bidding decision-making procedures, strengthen full-cycle cost process control, and enhance foreign exchange risk management**[97](index=97&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=31&type=section&id=Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has not disclosed its market value management system or valuation enhancement plan - The company has **not disclosed a market value management system**[98](index=98&type=chunk) - The company has **not disclosed a valuation enhancement plan**[98](index=98&type=chunk) ["Quality and Return Dual Enhancement" Action Plan Implementation Status](index=31&type=section&id=Quality%20and%20Return%20Dual%20Enhancement%20Action%20Plan%20Implementation%20Status) The company has not disclosed an announcement regarding its "Quality and Return Dual Enhancement" action plan - The company has **not disclosed an announcement regarding its "Quality and Return Dual Enhancement" action plan**[98](index=98&type=chunk) Section IV Corporate Governance, Environment, and Society [Changes in Company Directors, Supervisors, and Senior Management](index=32&type=section&id=Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were changes in the company's senior management: Fu Wenda was appointed Chief Financial Officer, Chen Yuqing resigned from her roles as Chief Financial Officer, Board Secretary, and General Counsel due to work relocation, Guo Shen was appointed Deputy General Manager, and Huang Cheng was appointed Board Secretary - **Fu Wenda** was appointed Chief Financial Officer on **June 16, 2025**[104](index=104&type=chunk) - **Chen Yuqing** resigned as Chief Financial Officer, Board Secretary, and General Counsel due to work relocation on **June 16, 2025**[104](index=104&type=chunk) - **Guo Shen** was appointed Deputy General Manager on **July 25, 2025**[104](index=104&type=chunk) - **Huang Cheng** was appointed Board Secretary on **July 25, 2025**[104](index=104&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=32&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20This%20Reporting%20Period) The company plans no cash dividends, no bonus shares, and no capital reserve conversions to share capital for the semi-annual period - The company plans **no cash dividends, no bonus shares, and no capital reserve conversions to share capital** for the semi-annual period[101](index=101&type=chunk) [Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=32&type=section&id=Implementation%20of%20Company%27s%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had **no equity incentive plans, employee stock ownership plans, or other employee incentive measures** and their implementation during the reporting period[102](index=102&type=chunk) [Environmental Information Disclosure](index=32&type=section&id=Environmental%20Information%20Disclosure) The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are **not included in the list of enterprises required to disclose environmental information by law**[103](index=103&type=chunk) [Social Responsibility Status](index=32&type=section&id=Social%20Responsibility%20Status) The company adheres to the national rural revitalization strategy, actively fulfilling its corporate leadership responsibilities, and contributing its vitality and wisdom to rural revitalization - The company adheres to the national rural revitalization strategy, actively fulfilling its corporate leadership responsibilities, and contributing its **vitality and wisdom to rural revitalization**[103](index=103&type=chunk) Section V Significant Matters [Commitment Matters Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During the Reporting Period and Those Overdue and Unfulfilled as of the End of the Reporting Period](index=33&type=section&id=Commitment%20Matters%20Fulfilled%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20Other%20Committed%20Parties%20During%20the%20Reporting%20Period%20and%20Those%20Overdue%20and%20Unfulfilled%20as%20of%20the%20End%20of%20the%20Reporting%20Period) Fujian Construction Engineering Group Co, Ltd's commitments regarding horizontal competition, related party transactions, and fund occupation were all fulfilled normally, with no overdue or unfulfilled situations - Fujian Construction Engineering Group Co, Ltd's commitments regarding **horizontal competition, related party transactions, and fund occupation** were all fulfilled normally[106](index=106&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company](index=34&type=section&id=Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20of%20the%20Listed%20Company) During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - During the reporting period, there was **no non-operating fund occupation** by the controlling shareholder or other related parties of the listed company[107](index=107&type=chunk) [Illegal External Guarantees](index=34&type=section&id=Illegal%20External%20Guarantees) The company had no illegal external guarantees during the reporting period - The company had **no illegal external guarantees** during the reporting period[108](index=108&type=chunk) [Appointment and Dismissal of Accounting Firms](index=34&type=section&id=Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual report was not audited - The company's semi-annual report was **not audited**[109](index=109&type=chunk) [Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for This Reporting Period](index=34&type=section&id=Explanation%20by%20the%20Board%20of%20Directors%20and%20Supervisory%20Board%20on%20the%20Accounting%20Firm%27s%20%22Non-Standard%20Audit%20Report%22%20for%20This%20Reporting%20Period) The company has no explanation from the board of directors or supervisory board regarding the accounting firm's "non-standard audit report" for this reporting period - Not applicable[110](index=110&type=chunk) [Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=34&type=section&id=Explanation%20by%20the%20Board%20of%20Directors%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company has no explanation from the board of directors regarding the "non-standard audit report" for the previous year - Not applicable[110](index=110&type=chunk) [Bankruptcy and Reorganization Related Matters](index=34&type=section&id=Bankruptcy%20and%20Reorganization%20Related%20Matters) The company did not experience any bankruptcy or reorganization related matters during the reporting period - The company did **not experience any bankruptcy or reorganization related matters** during the reporting period[110](index=110&type=chunk) [Litigation Matters](index=35&type=section&id=Litigation%20Matters) The company is involved in several significant litigation and arbitration cases, including a land dispute in Kenya, a cooperation agreement dispute with Fujian Fuyin, and an engineering subcontract dispute in Uganda, with substantial amounts involved, some cases still pending or having had re-trial applications rejected - The Kenya branch's land dispute with Belgo Company, arising from the Red Hill Road construction project, involved **28.27 million yuan**, with the first-instance judgment dismissing all plaintiff's claims and becoming effective[111](index=111&type=chunk) - The company's cooperation agreement dispute with Fujian Fuyin Precision Medicine Development Co, Ltd, involving **55.3581 million yuan**, had its re-trial application rejected by the Fujian Provincial High People's Court, and the company has applied for enforcement[111](index=111&type=chunk) - The Uganda branch's engineering subcontract dispute with Shixin Construction Company, involving **62.0407 million yuan**, is still pending, with a final ruling expected by November 14, 2025[113](index=113&type=chunk) - Zhongwu E-commerce's sales contract dispute with Fujian Construction Engineering Yayang Construction Technology Development Co, Ltd, involving **16.9547 million yuan**, has been ruled upon by the Xiamen Arbitration Commission, with Yayang Company scheduled to begin repayments in September[115](index=115&type=chunk) [Penalties and Rectification Status](index=38&type=section&id=Penalties%20and%20Rectification%20Status) The company had no penalties or rectification situations during the reporting period - The company had **no penalties or rectification situations** during the reporting period[117](index=117&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=38&type=section&id=Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The integrity status of the company, its controlling shareholder, and actual controller is not applicable - Not applicable[118](index=118&type=chunk) [Significant Related Party Transactions](index=39&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in daily related party transactions totaling 339.8382 million yuan, including 293.7791 million yuan from public bidding and 46.0591 million yuan from non-public bidding projects, all within approved limits, and subsidiary Nanan Zhongwu signed a general contracting agreement with Fujian Construction Engineering Group Quanzhou Engineering Co, Ltd for the Wuyi Yunshang Tianyi project 2025 Semi-Annual Related Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | Amount in Current Period (10,000 yuan) | Approved Transaction Limit (10,000 yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Fujian Construction Investment Group Co, Ltd and its Subsidiaries | Receiving services (design, general contracting, management consulting, engineering supervision, and other) | 239.02 | 2,300.00 | No | | Fujian Construction Engineering Group Co, Ltd and its Subsidiaries | Receiving services (design, general contracting, leasing, management consulting, decoration, real estate project layout, testing, construction drawing review, and other) | 33,700.22 | 28,700.00 | No | | Fujian Construction Investment Group Co, Ltd or Fujian Construction Engineering Group Co, Ltd and its Subsidiaries | Providing services (property services, leasing) | 44.58 | 1,000.00 | No | | **Total** | | **33,983.82** | **32,000.00** | | - Subsidiary Nanan Zhongwu publicly tendered for the Wuyi Yunshang Tianyi Design, Procurement, and Construction General Contracting Project, which was awarded to Fujian Construction Engineering Group Quanzhou Engineering Co, Ltd (consortium member and subcontractor: Fujian Construction Engineering Group Co, Ltd) with a winning bid price of **538.78 million yuan**[125](index=125&type=chunk) - The estimated daily related party transaction limit for 2025, including receiving and providing services with Fujian Construction Investment Group and Fujian Construction Engineering and their subsidiaries, is **320 million yuan**, which can be adjusted internally among related parties and different categories[126](index=126&type=chunk) [Significant Contracts and Their Performance](index=41&type=section&id=Significant%20Contracts%20and%20Their%20Performance) The company had no托管, contracting, or leasing matters during the reporting period, and its subsidiaries provide phased guarantees for homebuyers' mortgage loans as per industry practice, with a total outstanding guarantee balance of 1.332 billion yuan at the end of the reporting period - The company had **no托管 situations** during the reporting period[128](index=128&type=chunk) - The company had **no contracting situations** during the reporting period[129](index=129&type=chunk) - The company had **no leasing situations** during the reporting period[130](index=130&type=chunk) - The company's subsidiaries provide mortgage loan guarantees for homebuyers as per industry practice, primarily phased guarantees, effective until the property deed is issued, mortgage registration completed, and documents delivered to the bank; the outstanding guarantee balance at the end of the reporting period was **1.332 billion yuan**[61](index=61&type=chunk) [Explanation of Other Significant Matters](index=44&type=section&id=Explanation%20of%20Other%20Significant%20Matters) Yangzhou Wuyi's financial assistance of 12.6 million yuan in principal and interest to a shareholder remains overdue but with controllable overall risk, while the company has recovered 50 million yuan from the Congo (Brazzaville) Mongo Potash Fertilizer Project agreement, and controlling subsidiary Nanan Fanjia signed a state-owned land use rights recovery compensation agreement for 40.4408 million yuan, with property rights transfer completed - Yangzhou Wuyi has **not yet received the principal of 12.6 million yuan and corresponding interest** from Beijing Shuncheng for the aforementioned financial assistance, but the overall risk of this financial assistance is controllable[137](index=137&type=chunk) - The company signed the "Congo (Brazzaville) Mongo 1200kt/a Potash Fertilizer Project Agreement" with Donghua Technology, and the remaining **50 million yuan** due to the company was recovered during this reporting period[138](index=138&type=chunk) - The company's controlling subsidiary, Nanan Wuyi Fanjia Real Estate Co, Ltd, signed a "State-Owned Land Use Rights Recovery Compensation Agreement" with Nanan City Land Reserve Center, with a compensation price of **40.4408 million yuan**, and the property rights transfer registration has been completed[139](index=139&type=chunk) [Significant Matters of Company Subsidiaries](index=44&type=section&id=Significant%20Matters%20of%20Company%20Subsidiaries) The company had no significant matters concerning its subsidiaries during the reporting period - Not applicable[140](index=140&type=chunk) Section VI Changes in Shares and Shareholder Information [Changes in Share Capital](index=45&type=section&id=Changes%20in%20Share%20Capital) At the end of the reporting period, the company's total share capital remained unchanged, with restricted shares increasing by 1,560 shares and unrestricted shares decreasing by 1,560 shares, primarily due to changes in senior management lock-up shares 2025 Semi-Annual Share Capital Changes | Item | Number Before This Change (shares) | Proportion Before This Change | Net Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 180,188 | 0.01% | 1,560 | 181,748 | 0.01% | | 3. Other Domestic Holdings | 180,188 | 0.01% | 1,560 | 181,748 | 0.01% | | Domestic Natural Persons' Holdings | 180,188 | 0.01% | 1,560 | 181,748 | 0.01% | | II. Unrestricted Shares | 1,570,574,029 | 99.99% | -1,560 | 1,570,572,469 | 99.99% | | 1. RMB Ordinary Shares | 1,570,574,029 | 99.99% | -1,560 | 1,570,572,469 | 99.99% | | III. Total Shares | 1,570,754,217 | 100.00% | 0 | 1,570,754,217 | 100.00% | 2025 Semi-Annual Restricted Share Changes | Shareholder Name | Initial Restricted Shares | Unrestricted Shares in Current Period | Increased Restricted Shares in Current Period | Ending Restricted Shares | Reason for Restriction | Unrestriction Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Ping | 152,107 | | | 152,107 | Senior Management Lock-up | 2027/9/24 | | Chen Jiandong | 23,401 | | | 23,401 | Senior Management Lock-up | 2027/9/24 | | Chen Yuqing | 4,680 | | 1,560 | 6,240 | Senior Management Lock-up | 2027/9/24 | | **Total** | **180,188** | | **1,560** | **181,748** | | | [Issuance and Listing of Securities](index=46&type=section&id=Issuance%20and%20Listing%20of%20Securities) The company had no issuance or listing of securities during the reporting period - The company had **no issuance or listing of securities** during the reporting period[146](index=146&type=chunk) [Number of Shareholders and Shareholding Information](index=47&type=section&id=Number%20of%20Shareholders%20and%20Shareholding%20Information) At the end of the reporting period, the total number of ordinary shareholders was 41,164, with Fujian Construction Engineering Group Co, Ltd holding 34.34% and Fujian Energy Group Co, Ltd holding 20.55% among the top ten shareholders, both under the supervision of the Fujian Provincial State-owned Assets Supervision and Administration Commission - At the end of the reporting period, the total number of ordinary shareholders was **41,164**[148](index=148&type=chunk) 2025 Semi-Annual Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period | Change in Current Period | Number of Unrestricted Shares Held | | :--- | :--- | :--- | :--- | :--- | :--- | | Fujian Construction Engineering Group Co, Ltd | State-owned Legal Person | 34.34% | 539,335,010 | 0 | 539,335,010 | | Fujian Energy Group Co, Ltd | State-owned Legal Person | 20.55% | 322,733,638 | 0 | 322,733,638 | | Guosen Securities Co, Ltd | State-owned Legal Person | 0.71% | 11,088,517 | -1,412,596 | 11,088,517 | | Industrial and Commercial Bank of China - Southern CSI All-Share Real Estate ETF | Other | 0.64% | 10,006,118 | 334,200 | 10,006,118 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.38% | 5,937,962 | 489,174 | 5,937,962 | | Zhao Decai | Domestic Natural Person | 0.35% | 5,490,047 | 0 | 5,490,047 | | Meng Lei | Domestic Natural Person | 0.33% | 5,213,131 | 0 | 5,213,131 | | Ding Chunlin | Domestic Natural Person | 0.31% | 4,935,000 | -50,000 | 4,935,000 | | Lai Huaxin | Domestic Natural Person | 0.29% | 4,600,000 | 0 | 4,600,000 | | Zhao Zhenghong | Domestic Natural Person | 0.29% | 4,500,000 | New Entry | 4,500,000 | - Fujian Construction Engineering Group Co, Ltd and Fujian Energy Group Co, Ltd are both **supervised by the Fujian Provincial State-owned Assets Supervision and Administration Commission**[148](index=148&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=49&type=section&id=Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, with details available in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management **remained unchanged** during the reporting period[151](index=151&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=49&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller both remained unchanged during the reporting period - The company's controlling shareholder **remained unchanged** during the reporting period[152](index=152&type=chunk) - The company's actual controller **remained unchanged** during the reporting period[152](index=152&type=chunk) [Preferred Shares Related Information](index=49&type=section&id=Preferred%20Shares%20Related%20Information) The company had no preferred shares during the reporting period - The company had **no preferred shares** during the reporting period[152](index=152&type=chunk) Section VII Bond Related Information The company had no bond-related information during the reporting period - Not applicable[154](index=154&type=chunk) Section VIII Financial Report [Audit Report](index=51&type=section&id=Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was **not audited**[156](index=156&type=chunk) [Financial Statements](index=51&type=section&id=Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively reflecting the financial position and operating results at the end of the reporting period - Financial statements include the **consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity**[158](index=158&type=chunk)[160](index=160&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk) [Company Basic Information](index=64&type=section&id=Company%20Basic%20Information) China Wuyi Industrial Co, Ltd, listed in 1997 with a registered capital of 1.571 billion yuan, primarily engages in international engineering contracting, real estate development, commercial trade, and property management, with its ultimate actual controller being the Fujian Provincial People's Government State-owned Assets Supervision and Administration Commission - China Wuyi Industrial Co, Ltd was listed on the Shenzhen Stock Exchange on **July 15, 1997**, with a registered capital of **1.570754217 billion yuan**[177](index=177&type=chunk) - The company primarily engages in **overseas civil engineering contracting, construction and decoration; domestic and overseas investment; international and domestic trade, and export of construction materials and equipment for contracting projects; comprehensive real estate development and property management**[178](index=178&type=chunk) - The group's ultimate actual controller is the **Fujian Provincial People's Government State-owned Assets Supervision and Administration Commission**[177](index=177&type=chunk) [Basis for Preparation of Financial Statements](index=65&type=section&id=Basis%20for%20Preparation%20of%20Financial%20Statements) The company's financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, based on the going concern assumption, and its ability to continue as a going concern for 12 months from the end of the reporting period has been evaluated - The company prepares its financial statements in accordance with the **Accounting Standards for Business Enterprises** issued by the Ministry of Finance, specific accounting standards, application guidelines, interpretations, and other relevant regulations[182](index=182&type=chunk) - The company evaluated its **ability to continue as a going concern for 12 months** from the end of the reporting period and found no significant doubts regarding its going concern ability[183](index=183&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=65&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section details the company's accounting policies and estimates for business combinations, financial instruments, inventories, revenue recognition, and government grants, along with materiality criteria, ensuring transparency and accuracy in financial reporting - The financial statements prepared by the company comply with the requirements of accounting standards for business enterprises, accurately and completely reflecting the company's **financial position, operating results, cash flows**, and other relevant information for the reporting period[184](index=184&type=chunk) - The company classifies financial assets into those measured at **amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss**, based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets[213](index=213&type=chunk) - The company recognizes revenue when it **satisfies a performance obligation** under a contract, meaning when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[314](index=314&type=chunk) - The company performs impairment accounting and recognizes loss provisions for financial assets measured at amortized cost, financial assets classified as at fair value through other comprehensive income, lease receivables, and contract assets, based on **expected credit losses**[230](index=230&type=chunk) [Taxes](index=111&type=section&id=Taxes) This section discloses the company's main tax types and rates, including value-added tax, corporate income tax, land value-added tax, and business tax, with different rates applicable domestically and internationally, and lists the corporate income tax rates for various tax entities 2025 Semi-Annual Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Domestic: Calculated based on sales of goods, provision of taxable services, sales of services, intangible assets, or real estate as stipulated by tax law, after deducting input VAT, the difference is VAT payable; rates from April 1, 2019, are 3%, 5%, 6%, 9%, 13%. Overseas: Kenya company VAT rate 16%; Ethiopia project VAT rate 15%, Philippines project VAT rate 12%, South Sudan project VAT rate 15%; all calculated based on the corresponding tax rate of taxable VAT income, after deducting input VAT. | Multiple Rates | | Corporate Income Tax | Domestic: Corporate income tax applicable rate is 25%. Overseas: Hong Kong company income tax rate 16.5%, Kenya company income tax rate 30%, Kenya project income tax rate 30%, Equatorial Guinea project income tax rate 35%, Philippines project income tax rate 30%, South Sudan project income tax rate 20%, Tanzania project income tax rate 30%, Ethiopia project income tax rate 30%, Papua New Guinea income tax rate 30%. According to the Ministry of Finance and State Taxation Administration Announcement [2023] No. 6: From January 1, 2023, to December 31, 2027, for small low-profit enterprises, the portion of annual taxable income not exceeding 1 million yuan is subject to a 25% reduction in taxable income, taxed at a 20% rate. Subsidiaries Beijing Wuyi Property Management Co, Ltd, Fuzhou Wuyi Wanrong Property Services Co, Ltd, Beijing Wuyi Rongyu Property Services Co, Ltd, etc., apply this policy. | Multiple Rates | | Land Value-Added Tax | Prepaid at 1%-5% of taxable income; when development projects meet national liquidation conditions, land value-added tax is reconciled and settled at progressive rates of 30%-60% on real estate sales income less deductible items. If liquidation conditions are not met, and local land value-added tax liquidation methods are clear, it is accrued based on the reconciliation method; otherwise, it is accrued at the prepayment rate. | | | Business Tax | Equatorial Guinea project business tax rate 3%. | | [Notes to Consolidated Financial Statements](index=112&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details the ending and beginning balances, as well as current period changes, for each item in the consolidated financial statements, including monetary funds, accounts receivable, inventories, fixed assets, short-term borrowings, operating revenue, and costs, providing comprehensive financial data and explanations of changes - The ending balance of monetary funds was **3.69465701897 billion yuan**, of which restricted monetary funds amounted to **177.39205724 million yuan**[368](index=368&type=chunk) - The ending book value of accounts receivable was **1.37914453958 billion yuan**, with a bad debt provision of **255.35978418 million yuan**[375](index=375&type=chunk) - The ending book value of inventory was **15.62734863593 billion yuan**, primarily comprising development costs and developed products[423](index=423&type=chunk) - Current period operating revenue was **1.58115000428 billion yuan**, and operating cost was **1.44138275707 billion yuan**[543](index=543&type=chunk) [Research and Development Expenses](index=160&type=section&id=Research%20and%20Development%20Expenses) During the reporting period, the company's total R&D expenditure was 2.8401 million yuan, comprising 1.9867 million yuan in expensed R&D and 0.8534 million yuan in capitalized R&D, primarily for the Zhongwu Cross-border E-commerce Transaction and Supply Chain Comprehensive Service Platform project, which has reached 93% completion 2025 Semi-Annual R&D Expenditure | Item | Amount in Current Period (yuan) | Amount in Prior Period (yuan) | | :--- | :--- | :--- | | Zhongwu Cross-border E-commerce Transaction and Supply Chain Comprehensive Service Platform | 2,840,111.78 | 3,850,188.19 | | **Total** | **2,840,111.78** | **3,850,188.19** | | Of which: Expensed R&D Expenditure | 1,986,745.42 | 1,552,190.33 | | Capitalized R&D Expenditure | 853,366.36 | 2,297,997.86 | - The Zhongwu Cross-border E-commerce Transaction and Supply Chain Comprehensive Service Platform project's R&D progress is **93%**[602](index=602&type=chunk) [Changes in Consolidation Scope](index=160&type=section&id=Changes%20in%20Consolidation%20Scope) During this reporting period, the company established a new subsidiary, China Wuyi (Malaysia) Co, Ltd, leading to a change in the scope of consolidation - During this reporting period, a new subsidiary was established: **China Wuyi (Malaysia) Co, Ltd**[604](index=604&type=chunk) [Interests in Other Entities](index=162&type=section&id=Interests%20in%20Other%20Entities) This section discloses the composition, shareholding percentages, and acquisition methods of the company's 77 subsidiaries, as well as key financial information for significant non-wholly-owned subsidiaries, and explains reasons for differences between shareholding and voting rights percentages for some subsidiaries - The company consolidated a total of **77 subsidiaries** in the current period[180](index=180&type=chunk) - The company holds **80% equity in Changchun Baocheng Real Estate Co, Ltd**, which is managed under a contracting agreement and included in the consolidated financial statements, with the company bearing all profits and losses[612](index=612&type=chunk) - Wuyi (USA) Co, Ltd and Hong Kong Fukushima Construction Co, Ltd have been out of business for over 5 years and deregistered locally, but their liquidation has not been completed due to **state-owned asset disposal approval restrictions**[612](index=612&type=chunk) [Government Grants](index=169&type=section&id=Government%20Grants) During the reporting period, government grants recognized in other income amounted to 3.2082 million yuan, primarily income-related, with a deferred income balance of 0.156 million yuan still remaining for asset-related government grants 2025 Semi-Annual Liability Items Involving Government Grants | Accounting Account | Beginning Balance (yuan) | New Grants in Current Period (yuan) | Amount Included in Non-Operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Other Changes in Current Period (yuan) | Ending Balance (yuan) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 160,000.00 | | | 4,000.00 | | 156,000.00 | Related to Assets | 2025 Semi-Annual Government Grants Included in Current Profit and Loss | Accounting Account | Amount in Current Period (yuan) | Amount in Prior Period (yuan) | | :--- | :--- | :--- | | Government Grants Included in Other Income | 3,208,213.83 | 42,691.72 | | Government Grants Included in Non-Operating Income | | 338,453.68 | | **Total** | **3,208,213.83** | **381,145.40** | [Risks Related to Financial Instruments](index=169&type=section&id=Risks%20Related%20to%20Financial%20Instruments) The company faces credit risk, liquidity risk, and market risk (exchange rate risk, price risk), which it manages through diversified financing, centralized fund management, and hedging measures to ensure efficient fund utilization and financial stability - The company's credit risk primarily arises from **monetary funds, accounts receivable, other receivables, and contract assets**[632](index=632&type=chunk) - As of June 30, 2025, the company had bank credit lines totaling **21.25 billion yuan** from multiple domestic banks, of which **11.624 billion yuan** had been utilized[634](index=634&type=chunk) - Most of the company's overseas business is settled in foreign currencies, exposing it to **restrictions on free convertibility and exchange rate fluctuation risks** between RMB and settlement currencies, and the company is currently researching the feasibility of hedging[635](index=635&type=chunk) - Overseas construction contracts constitute an increasing proportion of the company's business, and the **political and economic environments in the contract locations** may impact the company[637](index=637&type=chunk) [Disclosure of Fair Value](index=172&type=section&id=Disclosure%20of%20Fair%20Value) This section discloses the fair value of assets and liabilities measured at fair value at the end of the period, primarily including trading financial assets and other equity instrument investments, and explains the determination basis and valuation techniques for Level 1 and Level 3 fair value measurements 2025 Semi-Annual Fair Value of Assets and Liabilities Measured at Fair Value at Period End | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | I. Recurring Fair Value Measurement | | | | | | (I) Trading Financial Assets | 7,805,937.49 | | | 7,805,937.49 | | 1. Financial Assets Measured at Fair Value Through Profit or Loss | 7,805,937.49 | | | 7,805,937.49 | | (1) Equity Instrument Investments | 7,734,000.00 | | | 7,734,000.00 | | (2) Derivative Financial Assets | 71,937.49 | | | 71,937.49 | | (II) Other Equity Instrument Investments | | | 9,350,535.73 | 9,350,535.73 | | (III) Other Current Assets | | | 3,300,000.00 | 3,300,000.00 | | **Total Liabilities Measured at Fair Value on a Recurring Basis** | **7,805,937.49** | | **12,650,535.73** | **20,456,473.22** | - For financial instruments traded in active markets, the company determines their fair value based on their **active market quotations**[641](index=641&type=chunk) - The **17.5% equity in Beijing Yanshan Ho

1 深圳万润科技股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人龚道夷、主管会计工作负责人王锴及会计机构负责人(会计主 管人员)郑楚泽声明：保证本半年度报告中财务报告的真实、准确、完整。 深圳万润科技股份有限公司 2025 年半年度报告全文 深圳万润科技股份有限公司 2025 年半年度报告 2025 年 8 月 30 日 所有董事均已出席了审议本次半年报的董事会会议。 如本报告涉及未来计划等前瞻性陈述，则该计划不构成公司对投资者的实 质承诺，投资者及相关人士均应对此保持足够的风险认识，并且应当理解计 划、预测与承诺之间的差异。 公司存在的风险因素详见本报告"第三节 管理层讨论与分析"中"十、 公司面临的风险和应对措施"，提请广大投资者注意阅读。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 深圳万润科技股份有限公司 2025 年半年度报告全文 | | | | 第一节 重要提示、目录和释义 | | --- | ...

华创云信数字技术股份有限公司2025 年半年度报告 公司代码：600155 公司简称：华创云信 华创云信数字技术股份有限公司 2025 年半年度报告 二〇二五年八月二十八日 华创云信数字技术股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确性、 完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 本报告经公司第八届董事会第十四次会议审议通过，公司全体董事出席董事会会议，未有董事 对本报告提出异议。 三、 本半年度报告未经审计。 四、 公司负责人陶永泽、主管会计工作负责人张小艾及会计机构负责人（会计主管人员）曲溪声明： 保证半年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 公司2025年半年度不进行利润分配或公积金转增股本。 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性陈述不构成公司对投资者的实质承诺，敬请投 资者注意投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、 是否存在 ...

澜起科技股份有限公司 2025 年半年度报告 公司代码：688008 公司简称：澜起科技 澜起科技股份有限公司 2025 年半年度报告 1 / 188 澜起科技股份有限公司 2025 年半年度报告 重要提示 一、 本公司董事会及董事、高级管理人员保证半年度报告内容的真实性、准确性、完整性，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 重大风险提示 公司已在本报告中描述可能存在的相关风险，敬请查阅本报告"第三节 管理层讨论与分析"之"四、 风险因素"。 三、 公司全体董事出席董事会会议。 四、 本半年度报告未经审计。 五、 公司负责人杨崇和、主管会计工作负责人苏琳及会计机构负责人（会计主管人员）苏琳声 明：保证半年度报告中财务报告的真实、准确、完整。 六、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 公司2025年半年度利润分配方案为：拟以实施权益分派股权登记日登记的总股本扣除公司回 购专用账户上已回购股份后的股份余额为基数，每10股派发现金红利2.00元（含税）。截至2025 年8月29日，公司的总股本1,145,151,330股，其中回购专用账户的股数为10,45 ...

2025 半年度报告 中國國際金融股份有限公司 （ 于中华人民共和國註冊成立的股份有限公司 ） 股份代號：601995 中国国际金融股份有限公司 半年度报告 2025 目录 | 释义 | 002 | | --- | --- | | 重要提示 | 006 | | 公司简介 | 007 | | 会计数据及财务指标摘要 | 009 | | 管理层讨论与分析 | 012 | | 公司治理 | 056 | | 环境与社会责任 | 060 | | 重要事项 | 063 | | 股份变动及股东情况 | 069 | | 债券相关情况 | 074 | | 财务报告 | 087 | | 备查文件目录 | 250 | | 证券公司信息披露 | 251 | | 附录一：公司主要业务资格 | 252 | | 附录二：分支机构变更情况 | 260 | | 附录三：信息披露索引 | 264 | 在本报告内，除非文义另有所指，否则下列词汇具有以下涵义 ： | "本公司""公司"或"中金公司" | 指 | 中国国际金融股份有限公司 | | --- | --- | --- | | "本集团""集团"或"我们" | 指 | 本公司及其子公司（或按 ...

1 / 238 上海卓然工程技术股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确 性、完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 重大风险提示 上海卓然工程技术股份有限公司2025 年半年度报告 公司代码：688121 公司简称：卓然股份 上海卓然工程技术股份有限公司 2025 年半年度报告 公司已在本报告中详细阐述公司在经营过程中可能面临的各种风险，敬请查阅本报告第三节 "管理层讨论与分析"中"风险因素"相关的内容。 三、 公司全体董事出席董事会会议。 四、 本半年度报告未经审计。 五、 公司负责人张锦红、主管会计工作负责人吴玉同及会计机构负责人（会计主管人员）吴玉 同声明：保证半年度报告中财务报告的真实、准确、完整。 六、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 七、 是否存在公司治理特殊安排等重要事项 □适用 √不适用 八、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述，不构成公司对投资者的实质承诺，敬 请投资者注意投资风 ...

青岛国恩科技股份有限公司 2025 年半年度报告全文 青岛国恩科技股份有限公司 2025 年半年度报告 2025-039 2025 年 8 月 1 青岛国恩科技股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会及董事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法 律责任。 公司负责人王爱国、主管会计工作负责人于垂柏及会计机构负责人(会计 主管人员)赵彦英声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 公司已在本报告中详细描述可能存在的相关风险，敬请查阅"第三节管理 层讨论与分析"之"十、公司面临的风险和应对措施"等内容。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 | 重要提示、目录和释义 | | 2 | | --- | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | | 7 | | 第九节 | 其他报送数据 | | 168 | 青岛国恩科技股份有限公司 2025 年半年度报告全文 备查文件目录 一 ...

广东光华科技股份有限公司 2025 年半年度报告全文 广东光华科技股份有限公司 2025 年半年度报告 2025 年 08 月 1 广东光华科技股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人郑靭、主管会计工作负责人蔡雯及会计机构负责人(会计主管 人员)黄启秀声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 公司半年度报告涉及的未来计划等前瞻性陈述，不构成公司对投资者的 实质承诺，投资者及相关人士均应当对此保持足够的风险认识，并请理解计 划、预测与承诺之间的差异。 公司发展过程中，存在市场竞争加剧风险、原材料价格波动风险、环保 风险等，详细内容见本报告"第三节、管理层讨论与分析"中"十、公司面 临的风险和应对措施"。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 | 重要提示、目录和释义 | 1 | | --- | --- | --- | | 第 ...

特变电工股份有限公司2025 年半年度报告 公司代码：600089 公司简称：特变电工 特变电工股份有限公司 2025 年半年度报告 1 / 308 特变电工股份有限公司2025 年半年度报告 重要提示 一、本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告 内容的真实性、准确性、完整性，不存在虚假记载、误导性陈述或重大遗漏， 并承担个别和连带的法律责任。 二、公司全体董事出席董事会会议。 三、本半年度报告未经审计。 四、公司负责人张新、主管会计工作负责人白云罡及会计机构负责人（会 计主管人员）李爱华声明：保证半年度报告中财务报告的真实、准确、完整。 五、董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 六、前瞻性陈述的风险声明 √适用 □不适用 本报告所涉及的公司未来计划、发展战略等前瞻性陈述，不构成公司对投资 者的实质承诺，请投资者注意投资风险。 七、是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、是否存在违反规定决策程序对外提供担保的情况 否 九、是否存在半数以上董事无法保证公司所披露半年度报告的真实性、准 确性和完整性 否 十、重大风险提示 无 十一、其他 □适用 √ ...

[Definitions](index=5&type=section&id=Section%201%20Definitions) This section provides definitions of common terms used in the report, including company names, major investors, and key customer names, clarifying the reporting period from January 1, 2025, to June 30, 2025 - Clarifies that "Huaguang New Materials/Company/This Company/Joint Stock Company" refers to "Hangzhou Huaguang Welding New Materials Co., Ltd"[12](index=12&type=chunk) - Defines the reporting period as **January 1, 2025, to June 30, 2025**[12](index=12&type=chunk) - Lists major customer names including Midea Group, Gree Electric, Haier, and Carrier[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information, contact details, stock overview, and key accounting data and financial indicators for the first half of 2025, showing significant growth in operating revenue and net profit, but negative net cash flow from operating activities [Company Basic Information](index=6&type=section&id=I.%20Company%20Basic%20Information) Introduces basic information about Hangzhou Huaguang Welding New Materials Co., Ltd., including its Chinese and English names, legal representative, registered and office addresses, company website, and email - The company's Chinese name is Hangzhou Huaguang Welding New Materials Co., Ltd., abbreviated as Huaguang New Materials[14](index=14&type=chunk) - The legal representative is Jin Limei, with the registered address in Yuhang District, Hangzhou, Zhejiang Province[14](index=14&type=chunk) [Contacts and Contact Information](index=6&type=section&id=II.%20Contacts%20and%20Contact%20Information) Provides contact details including address, phone, fax, and email for the company's Board Secretary (domestic representative for information disclosure) Hu Ling and Securities Affairs Representative Li Meijuan - Contact information for Board Secretary Hu Ling and Securities Affairs Representative Li Meijuan has been disclosed[15](index=15&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=6&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) Specifies the company's designated information disclosure newspapers (e.g., Shanghai Securities News), the website for semi-annual reports (www.sse.com.cn), and the location for report storage (Board Secretary's Office) - The company designates "Shanghai Securities News" and others for information disclosure, with the report website being **www.sse.com.cn**[16](index=16&type=chunk) [Brief Introduction to Company Shares/Depositary Receipts](index=6&type=section&id=IV.%20Brief%20Introduction%20to%20Company%20Shares%2FDepositary%20Receipts) Discloses that the company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange, with the stock abbreviation Huaguang New Materials and stock code 688379 - The company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange, stock code **688379**[17](index=17&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Details the company's key accounting data and financial indicators for H1 2025, showing significant growth in operating revenue and net profit, but negative net cash flow from operating activities, with non-recurring gains contributing significantly to net profit Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,206,223,590.12 | 867,628,688.83 | 39.03 | | Total Profit | 140,053,647.82 | 49,469,677.77 | 183.11 | | Net Profit Attributable to Shareholders of Listed Company | 123,211,716.56 | 44,964,059.14 | 174.02 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 44,017,304.54 | 43,547,133.25 | 1.08 | | Net Cash Flow from Operating Activities | -119,427,807.23 | -145,238,736.69 | Not Applicable | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 1.43 | 0.53 | 169.81 | | Diluted Earnings Per Share (Yuan/share) | 1.42 | 0.52 | 173.08 | | Basic EPS Excluding Non-Recurring Gains/Losses (Yuan/share) | 0.51 | 0.51 | 0.00 | | Weighted Average Return on Net Assets (%) | 11.71 | 4.76 | Increased by 6.95 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains/Losses (%) | 4.18 | 4.61 | Decreased by 0.43 percentage points | | R&D Investment as % of Operating Revenue (%) | 2.70 | 3.19 | Decreased by 0.49 percentage points | - Operating revenue increased by **39.03%** year-on-year, primarily due to the company's expansion into new sectors like electronics and new energy vehicles, as well as increased product sales and rising raw material prices[20](index=20&type=chunk) - Net profit increased by **174.02%** year-on-year, mainly attributable to the recognition of demolition gains and growth in operating revenue in H1 2025[21](index=21&type=chunk) - Net cash flow from operating activities was negative, primarily due to cash settlements with suppliers, longer credit terms for bill settlements with customers, and some discounted notes receivable being reported as cash flow from financing activities[21](index=21&type=chunk) Non-Recurring Gains/Losses Items and Amounts for H1 2025 | Non-Recurring Gain/Loss Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 87,998,708.47 | | Government Grants Recognized in Current Profit/Loss | 5,496,286.29 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | -21,123.64 | | Other Non-Recurring Gains/Losses | -274,332.76 | | Less: Income Tax Impact | 14,005,126.34 | | Total | 79,194,412.02 | [Net Profit After Deducting Impact of Share-Based Payments](index=9&type=section&id=VIII.%20Net%20Profit%20After%20Deducting%20Impact%20of%20Share-Based%20Payments) Discloses the net profit after deducting the impact of share-based payments, which was 124.94 million Yuan for the current period, representing a 172.20% year-on-year increase Net Profit After Deducting Impact of Share-Based Payments | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments | 124,941,416.56 | 45,901,059.14 | 172.20 | [Management Discussion and Analysis](index=9&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry, main business, operating model, performance, core competitiveness, and risk factors, highlighting steady growth in traditional businesses, expansion into emerging sectors, increased R&D, internationalization, and digital transformation [Industry and Main Business Overview](index=9&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview) Details the development stage, technical characteristics, and industry position of the special functional welding materials sector, along with the company's main businesses, products, and application areas, emphasizing its leading position in brazing materials and diversified product portfolio [(I) Industry Overview](index=9&type=section&id=(I)%20Industry%20Overview) Describes the technology-intensive nature of the special functional welding materials industry, its broad applications, and key technical barriers, noting the company's recognition as a "China Manufacturing Single Champion Demonstration Enterprise" - The company operates in the new materials sector, specifically special functional welding materials, with products widely used for brazing connections between similar metals, dissimilar metals, and metals with non-metals[27](index=27&type=chunk) - Industry technical barriers include customized design and mass production capabilities, stable batch quality control, and comprehensive solution service capabilities[27](index=27&type=chunk)[28](index=28&type=chunk) - The company is a leading enterprise in China's brazing materials industry, having received the National Science and Technology Progress Award (Second Prize) and recognized as a **China Manufacturing Single Champion Demonstration Enterprise**[29](index=29&type=chunk)[30](index=30&type=chunk) - The company participates in developing multiple national, industry, and group standards, holding **128 authorized patents** (including **48 invention patents**), demonstrating strong R&D capabilities[31](index=31&type=chunk) - The brazing materials industry benefits from investments in new energy vehicles, wind/solar/storage power equipment, aerospace, electronics and semiconductors, and AI industries, with future trends towards green, low-temperature, composite, low-cost, flexible, and high-reliability solutions, integrating with AI technology[32](index=32&type=chunk) [(II) Main Business, Products, or Services](index=10&type=section&id=(II)%20Main%20Business%2C%20Products%2C%20or%20Services) Introduces Huaguang New Materials' focus on R&D, manufacturing, and sales of welding and joining materials and technologies, with main products including copper-based, silver, aluminum-based, silver paste, and tin-based brazing materials, widely applied in smart homes, energy, and new energy vehicles, also offering smart welding solutions - The company's main products include copper-based brazing materials, silver brazing materials, aluminum-based brazing materials, silver paste, and tin-based brazing materials for electronic connections[33](index=33&type=chunk) - Products and technologies are widely applied in smart homes, energy and power, rail transit, new energy vehicles, electronic semiconductors, aerospace, and AI industries[33](index=33&type=chunk) - The company possesses design and production capabilities for thousands of specifications of brazing materials in various forms, such as welding rods, wires, rings, strips (sheets), flux-cored, flux-coated, and pastes[33](index=33&type=chunk) - The company boasts a high-quality customer base including Midea Group, Gree Electric, Haier, Carrier, CRRC, and Hikvision[35](index=35&type=chunk) - The company is progressively building smart welding solution service capabilities, offering integrated services including welding materials, smart welding equipment, welding tools, welded component processing, and welding technology[35](index=35&type=chunk) [(III) Main Operating Model](index=14&type=section&id=(III)%20Main%20Operating%20Model) Explains the company's R&D model (independent, market-oriented, industry-academia collaboration), procurement model (primarily self-procurement, supplemented by outsourced processing, based on open market prices), production model (combination of make-to-stock and make-to-order), and sales model (primarily direct sales, supplemented by distribution) - The R&D model is guided by market demand and industry trends, establishing a comprehensive independent R&D system and engaging in industry-academia-research collaboration[39](index=39&type=chunk) - The procurement model primarily involves self-procurement of non-ferrous metals like silver and copper, combined with outsourced processing, with prices based on open market rates[39](index=39&type=chunk) - The production model combines "make-to-stock" and "make-to-order" approaches, maintaining reasonable inventory to meet customer demand[40](index=40&type=chunk) - The sales model is primarily direct sales, supplemented by distribution, providing product and technical service support[40](index=40&type=chunk) [Discussion and Analysis of Operations](index=14&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company achieved significant growth in operating revenue and net profit, driven by steady growth in traditional businesses, accelerated expansion into emerging sectors, increased R&D investment, international development, digital transformation, and ESG practices Operating Performance for H1 2025 | Indicator | Amount (Million Yuan) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 1,206.22 | 39.03 | | Net Profit Attributable to Shareholders of Listed Company | 123.21 | 174.02 | | Net Profit Excluding Non-Recurring Gains/Losses | 44.02 | 1.08 | - Traditional advantageous businesses (refrigeration and HVAC, power and electrical) achieved steady growth, while emerging sectors (electronics, new energy vehicles, AI industry) accelerated expansion, becoming the **second growth curve**[41](index=41&type=chunk)[42](index=42&type=chunk) Growth in Main Business Revenue by Industry Sector for H1 2025 | Industry Sector | Operating Revenue Year-on-Year Growth (%) | | :--- | :--- | | Refrigeration and HVAC | 22.47 | | Power and Electrical | 66.95 | | Electronics | 75.92 | | New Energy Vehicles | 50.01 | | Silver Paste Products in Electronics | 42.69 | | Tin-based Brazing Materials | 1180.81 | - Increased R&D investment to build a **"medium-temperature + low-temperature + high-temperature" full-temperature brazing material system**, with new products like welding materials for liquid-cooled plates in computing servers and composite aluminum-based brazing materials for new energy vehicles achieving internationally advanced performance[45](index=45&type=chunk)[46](index=46&type=chunk) - Seized the opportunity of growing thermal management demand in the AI industry, achieving **batch revenue in the liquid-cooled computing server sector, accounting for 2.4% of H1 revenue**[47](index=47&type=chunk) - Actively deployed in the robotics sector, with products already applied in the welding of circuit boards for robotic dexterous hands[47](index=47&type=chunk) - Overseas business covers **over 50 countries**, with operating revenue increasing by **37.96%** year-on-year, becoming a new growth engine[48](index=48&type=chunk) - Continuously advanced digital transformation, intelligent manufacturing, and lean management, accelerating the construction of "Future Factories" and national-level green factories[49](index=49&type=chunk) - Achieved **Wind AA and Huazheng A ESG ratings**, demonstrating commitment to sustainable development[50](index=50&type=chunk) [Analysis of Core Competitiveness](index=17&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness) The company's core competitiveness lies in technological innovation, a diverse product portfolio, high-quality and stable customer resources, professional technical services, and an efficient management system, collectively supporting its leading position and sustained development in the brazing materials industry [(I) Core Competitiveness Analysis](index=17&type=section&id=(I)%20Core%20Competitiveness%20Analysis) Leveraging 30 years of technical accumulation, the company holds a leading edge in product formula R&D, process innovation, and automated manufacturing, forming a multi-variety, multi-specification product system, possessing high-quality and stable customer resources, providing customized technical services and comprehensive solutions, and maintaining a stable management team and robust management system - Technological innovation advantage: Possesses strong product formula R&D and process innovation capabilities, forming a leading technical system capable of precise and efficient customized product development[52](index=52&type=chunk)[53](index=53&type=chunk) - Multi-specification product advantage: Offers **thousands of product specifications**, having developed silver-saving brazing materials, lead-free and cadmium-free green brazing materials, vacuum brazing materials, and composite brazing materials, meeting diverse market demands[54](index=54&type=chunk)[55](index=55&type=chunk) - High-quality and stable customer resources and strong market development capabilities: Serves renowned customers like Gree Electric, Midea Group, Haier, and CRRC, and is experiencing **high growth in new sectors** such as electronics and new energy vehicles[56](index=56&type=chunk) - Technical service advantage: Customer-centric, providing innovative technical ideas and comprehensive solutions to optimize welding performance and reduce production costs, assisting customers in shortening new product R&D cycles[57](index=57&type=chunk) - Management advantage: Stable management team with a "three-tier" technical talent梯队, certified with **ISO9001, ISO14001, IATF16949**, and actively promoting lean and information-based management[58](index=58&type=chunk)[59](index=59&type=chunk) [(III) Core Technologies and R&D Progress](index=19&type=section&id=(III)%20Core%20Technologies%20and%20R%26D%20Progress) The company's core technology system encompasses silver-saving, green, vacuum, composite brazing materials, as well as low/high-temperature silver paste and tin-based brazing materials, continuously innovating preparation processes and advanced welding solutions. During the reporting period, the company achieved multiple R&D results in full-temperature range materials, silver paste products, high-temperature materials, and advanced welding solutions, with R&D investment continuously growing - The core technology system includes silver-saving brazing materials, green brazing materials, vacuum brazing materials, composite brazing materials, low/high-temperature silver paste, tin-based brazing material formulation technologies, as well as preparation processes such as preformed brazing material manufacturing, horizontal continuous casting, automatic cleaning, and integrated forming[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - During the reporting period, the company achieved iterative upgrades and digital R&D for precision components in medium-temperature materials such as copper-based, silver, and aluminum brazing materials[65](index=65&type=chunk) - For electronic connections and semiconductor fields, the company continuously developed high-reliability, high-activity, and environmentally friendly low-temperature brazing materials, including preformed tin solder sheets and solder paste products[65](index=65&type=chunk) - Optimized the performance of silver paste for electronic components, developing new glass powders, low-odor solvents, low-silver products adaptable to different sintering temperatures, and new low-temperature silver pastes[66](index=66&type=chunk)[67](index=67&type=chunk) - Expanded high-temperature material products, developing copper-based solder pastes, high-purity nickel-based solders, and successfully developed high-precision, micro-sized bronze solder rings[67](index=67&type=chunk) - In advanced welding solutions, developed multi-tube simultaneous induction brazing equipment for copper-copper, aluminum-aluminum, copper-aluminum, and stainless steel, and conducted in-depth research on intelligent laser brazing, laser cladding, and vacuum brazing application technologies[67](index=67&type=chunk) Intellectual Property Status | IP Type | New Applications in Current Period (units) | New Grants in Current Period (units) | Cumulative Applications (units) | Cumulative Grants (units) | | :--- | :--- | :--- | :--- | :--- | | Invention Patents | 8 | 0 | 98 | 48 | | Utility Model Patents | 1 | 5 | 82 | 79 | | Design Patents | 0 | 0 | 1 | 1 | | Software Copyrights | 0 | 2 | 8 | 8 | | Total | 9 | 7 | 189 | 136 | R&D Investment Status | Indicator | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 32,598,833.16 | 27,706,608.51 | 17.66 | | Total R&D Investment | 32,598,833.16 | 27,706,608.51 | 17.66 | | Total R&D Investment as % of Operating Revenue | 2.70 | 3.19 | -0.49 | R&D Personnel Status | Indicator | Current Period | Prior Period | | :--- | :--- | :--- | | Number of R&D Personnel (persons) | 87 | 77 | | R&D Personnel as % of Total Company Staff (%) | 13.30 | 11.88 | | Total R&D Personnel Compensation (Yuan) | 7,508,217.71 | 6,922,760.29 | [Risk Factors](index=25&type=section&id=IV.%20Risk%20Factors) The company faces operational and core competitiveness risks, including raw material price fluctuations, large inventory, significant accounts receivable and notes receivable leading to negative operating cash flow, new product R&D and trial production, technology leakage, and technological changes in downstream customers, also affected by macroeconomic and downstream industry cyclical fluctuations [(I) Operational Risks](index=25&type=section&id=(I)%20Operational%20Risks) Key operational risks include raw material price volatility impacting profitability, large inventory balances potentially leading to impairment provisions and cash flow pressure, and significant accounts receivable and notes receivable combined with negative operating cash flow, posing risks of bad debts and working capital strain - Raw material price fluctuation risk: Prices of commodities like silver and copper fluctuate frequently, and the company's pricing mechanism may not fully absorb price volatility, potentially leading to a **significant decline in profits** during sharp price drops[76](index=76&type=chunk) - Risk of large inventory: A substantial inventory balance, coupled with a significant drop in raw material prices, could lead to **inventory impairment provisions** and impact cash turnover and operating cash flow[78](index=78&type=chunk) - Risk of large accounts receivable and notes receivable and negative net cash flow from operating activities: Cash settlements with suppliers and longer credit terms for bill settlements with customers result in **negative operating cash flow**, posing risks of bad debts and working capital strain[79](index=79&type=chunk) [(II) Core Competitiveness Risks](index=26&type=section&id=(II)%20Core%20Competitiveness%20Risks) Core competitiveness risks include long and potentially unsuccessful new product R&D and trial production cycles, loss of core technical personnel or technology leakage, and potential sales reductions of existing products due to technological changes in downstream customers - New product R&D and trial production risk: Long development cycles for new products may lead to **development failure**, inability to meet customer needs promptly, or difficulty in maintaining technological leadership[80](index=80&type=chunk) - Technology leakage risk: The company's core technologies rely on specialized talent, posing risks of **loss of core technical personnel or technology leakage**[81](index=81&type=chunk) - Sales fluctuation risk due to technological changes in downstream customers: Technological innovations downstream may lead to **reduced sales of existing products**, adversely impacting the company if new products or customers are not developed in a timely manner[82](index=82&type=chunk) [(III) Macroeconomic Environment Risks](index=26&type=section&id=(III)%20Macroeconomic%20Environment%20Risks) The company's business is closely tied to downstream markets such as refrigeration and HVAC, power and electrical, electronics, and new energy vehicles; macroeconomic changes and cyclical fluctuations in these industries may lead to reduced orders and difficulties in collecting payments, thereby affecting company performance - Macroeconomic changes and cyclical fluctuations in downstream industries risk: The company's performance is significantly affected by macroeconomic conditions and the development of downstream industries (refrigeration and HVAC, power and electrical, electronics, new energy vehicles), potentially leading to **reduced orders and difficulties in collecting payments**[83](index=83&type=chunk)[84](index=84&type=chunk) [Key Operating Performance During the Reporting Period](index=27&type=section&id=V.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue reached 1,206.22 million Yuan, a 39.03% year-on-year increase; net profit attributable to shareholders of the listed company was 123.21 million Yuan, a 174.02% year-on-year increase Key Operating Performance for H1 2025 | Indicator | Amount (Million Yuan) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 1,206.22 | 39.03 | | Net Profit Attributable to Shareholders of Listed Company | 123.21 | 174.02 | [(IV) Analysis of Main Business](index=27&type=section&id=(IV)%20Analysis%20of%20Main%20Business) Both operating revenue and operating costs significantly increased this period, primarily due to the company's expansion into new sectors, increased product sales, and rising raw material prices. Selling expenses decreased, while administrative, financial, and R&D expenses all increased. Net cash flow from operating activities was negative, net cash flow from investing activities turned positive, and net cash flow from financing activities decreased Analysis of Changes in Financial Statement Items | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,206,223,590.12 | 867,628,688.83 | 39.03 | | Operating Cost | 1,072,761,512.76 | 737,160,178.54 | 45.53 | | Selling Expenses | 9,565,804.27 | 10,237,618.75 | -6.56 | | Administrative Expenses | 26,089,161.82 | 21,782,556.39 | 19.77 | | Financial Expenses | 18,885,773.07 | 16,367,130.08 | 15.39 | | R&D Expenses | 32,598,833.16 | 27,706,608.51 | 17.66 | | Net Cash Flow from Operating Activities | -119,427,807.23 | -145,238,736.69 | Not Applicable | | Net Cash Flow from Investing Activities | 9,907,203.82 | -37,331,133.51 | Not Applicable | | Net Cash Flow from Financing Activities | 62,487,769.05 | 77,039,335.96 | -18.89 | - Operating revenue growth was primarily due to expansion into new sectors, increased product sales, and rising raw material prices[87](index=87&type=chunk) - Net cash flow from investing activities turned positive mainly due to the receipt of gains from the disposal of fixed assets at the Gouzhuang plant[87](index=87&type=chunk) - Net cash flow from financing activities decreased primarily due to an increase in the company's cash dividend payout[87](index=87&type=chunk) [(VI) Analysis of Assets and Liabilities](index=28&type=section&id=(VI)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets and net assets attributable to shareholders of the listed company both increased. Significant increases were observed in notes receivable financing, contract assets, construction in progress, other non-current assets, notes payable, and long-term borrowings, while deferred income tax assets and other current liabilities decreased Changes in Assets and Liabilities | Item Name | Current Period End Amount (Yuan) | Current Period End % of Total Assets (%) | Prior Year End Amount (Yuan) | Prior Year End % of Total Assets (%) | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable Financing | 83,367,867.30 | 3.21 | 42,101,659.53 | 1.77 | 98.02 | | Contract Assets | 10,465,879.22 | 0.40 | 6,436,793.73 | 0.27 | 62.59 | | Construction in Progress | 160,119,780.69 | 6.16 | 93,324,816.68 | 3.93 | 71.57 | | Deferred Income Tax Assets | 4,690,061.51 | 0.18 | 10,453,291.77 | 0.44 | -55.13 | | Other Non-Current Assets | 12,899,793.19 | 0.50 | 6,119,830.68 | 0.26 | 110.79 | | Notes Payable | 368,649,029.59 | 14.17 | 174,454,949.91 | 7.35 | 111.31 | | Other Current Liabilities | 13,408,793.89 | 0.52 | 169,607,391.13 | 7.15 | -92.09 | | Long-Term Borrowings | 216,163,894.33 | 8.31 | 83,578,107.24 | 3.52 | 158.64 | - Notes receivable financing increased by **98.02%**, primarily due to an increase in high-credit bank acceptance bills held at period-end[89](index=89&type=chunk) - Construction in progress increased by **71.57%**, mainly due to increased investment in the construction of the comprehensive building and research building, and equipment[89](index=89&type=chunk) - Deferred income tax assets decreased by **55.13%**, primarily because a significant increase in net profit this period led to a reduction in deferred income tax assets recognized from deductible temporary differences in prior periods[89](index=89&type=chunk) - Notes payable increased by **111.31%**, mainly due to increased procurement scale and continuous optimization of payment methods, leading to an increase in outstanding letters of credit and "Xin E Lian" balances at period-end[89](index=89&type=chunk) - Long-term borrowings increased by **158.64%**, primarily due to the need for plant construction and operations, leading to an increase in long-term bank loans[89](index=89&type=chunk) Major Asset Restrictions as of Report End | Item | Period End Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Bank Balances | 13,912,344.00 | Acceptance bill margin, Alipay margin, ETC margin, futures margin | | Notes Receivable | 4,404,638.71 | Pledged for borrowings | | Notes Receivable Financing | 4,768,052.28 | Pledged for borrowings | | Fixed Assets | 234,506,859.81 | Mortgaged for borrowings | | Intangible Assets | 44,691,700.00 | Mortgaged for borrowings | | Total | 302,283,594.80 | | [(VII) Analysis of Investment Status](index=30&type=section&id=(VII)%20Analysis%20of%20Investment%20Status) The company had no significant equity or non-equity investments during the reporting period. Derivative investments were primarily for hedging purposes, with a period-end book value of 0, but generated fair value change gains/losses, effectively reducing raw material price fluctuation risks Derivative Investments for Hedging Purposes During the Reporting Period | Derivative Investment Type | Initial Investment Amount (Million Yuan) | Beginning Book Value (Million Yuan) | Fair Value Change Gains/Losses in Current Period (Million Yuan) | Amount Purchased in Reporting Period (Million Yuan) | Amount Sold in Reporting Period (Million Yuan) | Period End Book Value (Million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hedging | 0.00 | 0.00 | -0.02 | 52.45 | 52.35 | 0.00 | - The effective portion of hedging activities was recognized in other comprehensive income as **-28,800.00 Yuan**, while the ineffective portion was recognized in investment income as **-56,070.00 Yuan**, aiming to mitigate the adverse impact of large-scale raw material price fluctuations on operations[94](index=94&type=chunk) - The company formulated the "Futures Hedging Management System" to manage price volatility, capital, liquidity, and operational risks through measures such as scale control, trading plans, and stop-loss limits[94](index=94&type=chunk) [Corporate Governance, Environment, and Society](index=33&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section discloses changes in the company's directors, supervisors, senior management, and core technical personnel, profit distribution plan, employee stock ownership plan progress, environmental information disclosure, and rural revitalization efforts [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=33&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, Mr. Fan Zhonghua, a core technical personnel, resigned due to retirement but continues to serve as a company consultant. The company's criteria for identifying core technical personnel include contributions, positions, education, experience, and research achievements - Core technical personnel Mr. Fan Zhonghua resigned due to retirement on **April 2, 2025**, but continues to serve as a company consultant[98](index=98&type=chunk) - The company's criteria for identifying core technical personnel include outstanding contributions to the company's development, important positions, educational background, work experience, qualifications, research achievements, and awards[99](index=99&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=33&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company proposes to distribute a cash dividend of 1.50 Yuan (tax inclusive) per 10 shares to all shareholders, based on the total share capital registered on the equity distribution record date, after deducting repurchased shares, totaling 13,169,533.50 Yuan, which represents 10.69% of the net profit attributable to shareholders of the listed company in H1 2025 - The company proposes a cash dividend of **1.50 Yuan (tax inclusive) per 10 shares**, with no capital reserve conversion to share capital and no bonus shares[100](index=100&type=chunk) - As of August 29, 2025, based on the share capital of **87,796,890 shares** after deducting repurchased shares, a total cash dividend of **13,169,533.50 Yuan (tax inclusive)** will be distributed[100](index=100&type=chunk) - The profit distribution plan accounts for **10.69%** of the net profit attributable to shareholders of the listed company in the H1 2025 consolidated financial statements[100](index=100&type=chunk) - The plan has been approved by the Board of Directors and is subject to shareholder approval[101](index=101&type=chunk) [Equity Incentive and Employee Stock Ownership Plan](index=33&type=section&id=III.%20Equity%20Incentive%20and%20Employee%20Stock%20Ownership%20Plan) The company has completed the share registration for the third vesting period of the 2021 restricted stock incentive plan's initial grant and the second vesting period of the reserved grant. The 2024 employee stock ownership plan was approved by the Board and shareholders, with the non-trading transfer of initially acquired shares completed in September 2024 - On January 14, 2025, the company completed the share registration for the **third vesting period of the 2021 restricted stock incentive plan's initial grant** and the **second vesting period of the reserved grant**[102](index=102&type=chunk) - The **2024 employee stock ownership plan** was approved by the Board of Directors and Supervisory Committee in July 2024, and by the Shareholders' Meeting in August[103](index=103&type=chunk)[104](index=104&type=chunk) - On September 20, 2024, **1.6 million shares** of the company's stock from the company's dedicated repurchase securities account were non-trading transferred to the 2024 employee stock ownership plan securities account[104](index=104&type=chunk) [Environmental Information Disclosure](index=34&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company is included in the list of enterprises required to disclose environmental information by law, with a query index provided for the Zhejiang Provincial Department of Ecology and Environment's enterprise environmental information disclosure system - Hangzhou Huaguang Welding New Materials Co., Ltd. is included in the list of enterprises required to disclose environmental information by law[105](index=105&type=chunk) - The environmental information disclosure report can be queried on the Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[105](index=105&type=chunk) [Rural Revitalization Work](index=35&type=section&id=V.%20Rural%20Revitalization%20Work) The company actively participates in rural revitalization efforts, partnering with Gangnan Village in Liangzhu Street and Puning Village in Renhe Street, Yuhang District, Hangzhou City, to visit struggling families and procure agricultural products to support rural economic development - The company engaged in paired assistance and co-construction with Gangnan Village in Liangzhu Street and Puning Village in Renhe Street, Yuhang District, Hangzhou City[106](index=106&type=chunk) - Actively visited struggling families in Gangnan Village, providing comfort funds and materials[106](index=106&type=chunk) - Assisted farmers by purchasing agricultural products from Puning Village, contributing to rural economic development[106](index=106&type=chunk) [Significant Matters](index=36&type=section&id=Section%205%20Significant%20Matters) This section details the company's fulfillment of various commitments, including those related to initial public offering such as dividend distribution, related-party transactions, share repurchases, and information disclosure, as well as Huaguang Investment's share lock-up commitment. During the reporting period, the company had no significant lawsuits, arbitrations, illegal guarantees, or occupation of funds by controlling shareholders, maintaining a good credit standing [Fulfillment of Commitments](index=36&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's actual controller, directors, and the company itself made long-term commitments regarding profit distribution, related-party transactions, share repurchases, and the truthfulness of information disclosure, which were strictly fulfilled during the reporting period. Huaguang Investment also fulfilled its share lock-up commitment - Actual controller Jin Limei committed to urging the proposal of profit distribution plans and voting in favor, with company directors making similar commitments[110](index=110&type=chunk)[111](index=111&type=chunk) - Jin Limei committed to avoiding and reducing related-party transactions, ensuring fair dealings, and not using her shareholder position to harm the company or minority shareholders' interests[112](index=112&type=chunk)[113](index=113&type=chunk) - The company committed to prudently formulating and legally implementing share repurchase plans when conditions are met, ensuring no harm to company interests[114](index=114&type=chunk) - The company and Jin Limei committed that the prospectus and information disclosure materials are true, accurate, and complete, and will initiate share repurchase procedures and compensate investors for losses if any false statements are found[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - All company directors, supervisors, and senior management committed to the truthfulness of information disclosure and will bear compensation liabilities[126](index=126&type=chunk) - Jin Limei committed that the share reduction price will not be lower than the offering price within **24 months** after the lock-up period expires, and will comply with share reduction regulations[127](index=127&type=chunk)[128](index=128&type=chunk) - Tongzhou Investment committed that the number of shares reduced will not exceed its total holdings in the company within **24 months** after the lock-up period expires, and will comply with share reduction regulations[129](index=129&type=chunk) - Huaguang Investment committed not to change the substantive operating activities of the restructured assets (8.65 million shares of Huaguang New Materials equity) and not to implement share reductions within **12 consecutive months** after the share transfer is completed[132](index=132&type=chunk) [Explanation of Credit Standing](index=44&type=section&id=IX.%20Explanation%20of%20Credit%20Standing) During the reporting period, the company, its controlling shareholder, and actual controller maintained a good credit standing, with no adverse records such as unfulfilled court judgments or overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained a **good credit standing**[134](index=134&type=chunk) - There were no adverse credit records such as unfulfilled effective court judgments or overdue large debts[134](index=134&type=chunk) [Share Changes and Shareholder Information](index=46&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This section discloses that the company's share capital structure remained unchanged during the reporting period, along with the total number of shareholders, top ten shareholders' holdings, and changes in shareholdings of directors, supervisors, senior management, and core technical personnel [Share Capital Changes](index=46&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total ordinary share capital and share capital structure remained unchanged - During the reporting period, the company's total ordinary share capital and share capital structure remained unchanged[138](index=138&type=chunk) [Shareholder Information](index=46&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had 6,068 ordinary shareholders. The top ten shareholders' holdings are disclosed, with Jin Limei holding 36.54% and Hangzhou Huaguang Investment Co., Ltd. holding 9.60% - As of the end of the reporting period, the total number of ordinary shareholders was **6,068**[139](index=139&type=chunk) Top Ten Shareholders' Holdings as of Report End | Shareholder Name | Period End Holding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Jin Limei | 32,918,000 | 36.54 | Domestic Natural Person | | Hangzhou Huaguang Investment Co., Ltd. | 8,650,000 | 9.60 | Domestic Non-State-Owned Legal Person | | Wang Xiaorong | 4,080,000 | 4.53 | Domestic Natural Person | | Zhang Leilei | 942,029 | 1.05 | Domestic Natural Person | | Hangzhou Tongzhou Investment Management Co., Ltd. | 700,000 | 0.78 | Domestic Non-State-Owned Legal Person | | Lu Xifang | 665,697 | 0.74 | Domestic Natural Person | | Yao Lianrong | 659,699 | 0.73 | Domestic Natural Person | | Wu Yanhui | 566,691 | 0.63 | Domestic Natural Person | | Lu Fuquan | 564,380 | 0.63 | Domestic Natural Person | | China Minsheng Bank Co., Ltd. - Guojin Independent Innovation Mixed Securities Investment Fund | 562,520 | 0.62 | Domestic Non-State-Owned Legal Person | - Among the top ten shareholders is the dedicated repurchase account "Hangzhou Huaguang Welding New Materials Co., Ltd. Repurchase Special Securities Account", holding **2,688,630 ordinary shares**, accounting for **2.98% of the total share capital** at period-end[142](index=142&type=chunk) - Jin Limei holds **90%** of Hangzhou Tongzhou Investment Management Co., Ltd. and **35.86%** of Hangzhou Huaguang Investment Co., Ltd.; Wang Xiaorong holds **10%** of Hangzhou Tongzhou Investment Management Co., Ltd. and **12.60%** of Hangzhou Huaguang Investment Co., Ltd[143](index=143&type=chunk) [Information on Directors, Supervisors, Senior Management, and Core Technical Personnel](index=48&type=section&id=III.%20Information%20on%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) Discloses changes in shareholdings of core technical personnel Fan Zhonghua and Huang Shisheng during the reporting period, both due to secondary market transactions resulting in a decrease in holdings Changes in Shareholdings of Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position | Beginning Holding (shares) | Period End Holding (shares) | Change in Holdings During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Fan Zhonghua | Core Technical Personnel | 40,000 | 7,500 | -32,500 | Secondary market transactions | | Huang Shisheng | Core Technical Personnel | 55,000 | 41,250 | -13,750 | Secondary market transactions | [Bond-Related Information](index=50&type=section&id=Section%207%20Bond-Related%20Information) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[148](index=148&type=chunk) - During the reporting period, the company had no convertible corporate bonds[148](index=148&type=chunk) [Financial Report](index=51&type=section&id=Section%208%20Financial%20Report) This section includes the company's unaudited consolidated and parent company financial statements, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, along with detailed disclosures on the company's basic information, significant accounting policies and estimates, taxation, notes to various financial statement items, and supplementary information related to financial instrument risks, fair value disclosures, related parties and related-party transactions, commitments and contingencies, and post-balance sheet events [Audit Report](index=51&type=section&id=I.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[4](index=4&type=chunk)[150](index=150&type=chunk) [Financial Statements](index=51&type=section&id=II.%20Financial%20Statements) Provides the company's consolidated and parent company balance sheets as of June 30, 2025, consolidated and parent company income statements for January-June 2025, consolidated and parent company cash flow statements, and consolidated and parent company statements of changes in owners' equity - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[150](index=150&type=chunk)[154](index=154&type=chunk)[157](index=157&type=chunk)[161](index=161&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk)[171](index=171&type=chunk)[178](index=178&type=chunk) [Company Basic Information](index=73&type=section&id=III.%20Company%20Basic%20Information) Introduces Hangzhou Huaguang Welding New Materials Co., Ltd.'s establishment history, changes in registered capital (due to multiple increases from equity incentive plans), total share capital and share structure, basic organizational structure, and business scope - The company, formerly Hangzhou Huaguang Solder Co., Ltd., was registered on November 19, 1997, and listed on the STAR Market of the Shanghai Stock Exchange on August 19, 2020[185](index=185&type=chunk) - As of June 30, 2025, the company's total share capital was **90,085,520.00 shares**, with a par value of **1 Yuan per share**, all being unrestricted tradable A-shares[189](index=189&type=chunk) - Business scope includes manufacturing of non-ferrous metal alloys, electronic special materials, new material technology R&D, and technical services[191](index=191&type=chunk) [Basis of Financial Statement Preparation](index=74&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company prepares its financial statements on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, and states that there are no significant doubts about the going concern assumption for the 12 months from the end of the reporting period - The company prepares its financial statements on a going concern basis, in accordance with enterprise accounting standards and the China Securities Regulatory Commission's "Reporting Rules for Information Disclosure by Companies Issuing Securities No. 15 - General Provisions for Financial Reports (Revised 2023)"[192](index=192&type=chunk) - There are no matters or circumstances that cause significant doubt about the going concern assumption for the 12 months from the end of the reporting period[193](index=193&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=74&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section details the company's statement of compliance with enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, cash and cash equivalents, foreign currency transactions and translation of foreign currency financial statements, financial instruments, notes receivable, accounts receivable, notes receivable financing, other receivables, inventories, contract assets, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee compensation, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, and other significant accounting policies and estimates - The company complies with enterprise accounting standards, accurately and completely reflecting its financial position[196](index=196&type=chunk) - The accounting year is from January 1 to December 31 of the Gregorian calendar, with the actual reporting period for this report being **January 1, 2025, to June 30, 2025**[197](index=197&type=chunk) - Detailed provisions are made for the classification, recognition, measurement, impairment, and derecognition of financial instruments, including financial assets and liabilities measured at amortized cost, or at fair value with changes recognized in other comprehensive income or current profit/loss[213](index=213&type=chunk)[214](index=214&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - Revenue recognition is based on the transfer of control, categorized into performance obligations satisfied over time and performance obligations satisfied at a point in time, with specific recognition principles differentiated by settlement models (periodic settlement, single-transaction settlement) and domestic/international sales[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk) - Government grants are classified as asset-related or income-related, accounted for using the gross method; asset-related grants are recognized as deferred income and amortized to profit/loss over time, while income-related grants are recognized as deferred income or current profit/loss depending on the compensation object[293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk) - Deferred income tax assets and liabilities are recognized based on temporary differences between the carrying amounts of assets and liabilities and their tax bases, considering the probability of future taxable income[297](index=297&type=chunk)[298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk) [Taxation](index=108&type=section&id=VI.%20Taxation) Discloses the company's main tax types and rates, including VAT, property tax, urban maintenance and construction tax, education surcharges, local education surcharges, and corporate income tax. The company benefits from tax incentives for high-tech enterprises, small low-profit enterprises, and advanced manufacturing enterprises Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Value-added amount generated from sales of goods or provision of taxable services | 13% etc | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original property value; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Corporate Income Tax | Taxable income | Applicable tax rate as required by tax laws of different countries and regions | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | The Company | 15 | | Hangzhou Fujing Welding Technology Co., Ltd. | 20 | | Overseas Subsidiaries | Applicable local tax rate | - As a high-tech enterprise, the company paid corporate income tax at a rate of **15%** for January-June 2025[317](index=317&type=chunk) - Subsidiary Hangzhou Fujing Welding Technology Co., Ltd. applies the small low-profit enterprise policy, calculating taxable income at **25%** and paying corporate income tax at a rate of **20%**[317](index=317&type=chunk) - The company applies the VAT additional deduction policy for advanced manufacturing enterprises, allowing an additional **5%** deduction of current deductible input VAT from payable VAT[318](index=318&type=chunk) [Notes to Consolidated Financial Statement Items](index=109&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes to various asset, liability, owners' equity, revenue, expense, profit, and cash flow items in the consolidated financial statements, including period-end balances, beginning balances, reasons for changes, impairment provisions, impairment tests, and restricted conditions - Cash and bank balances at period-end were **154,729,879.89 Yuan**, including **13,912,344.00 Yuan** of restricted funds[320](index=320&type=chunk)[321](index=321&type=chunk) - Notes receivable at period-end were **268,230,097.90 Yuan**, of which **4,404,638.71 Yuan** were pledged, and **135,232,034.90 Yuan** were endorsed or discounted but not derecognized[322](index=322&type=chunk)[324](index=324&type=chunk)[326](index=326&type=chunk) - Accounts receivable at period-end were **552,944,246.96 Yuan**, with bad debt provisions of **31,663,167.35 Yuan**[334](index=334&type=chunk) - Inventory book value at period-end was **815,117,805.61 Yuan**, with inventory impairment provisions of **3,913,442.82 Yuan**[379](index=379&type=chunk) - Construction in progress book value at period-end was **160,119,780.69 Yuan**, mainly for the Renhe Phase II project and equipment awaiting installation[401](index=401&type=chunk) - Short-term borrowings at period-end were **544,970,094.49 Yuan**, and long-term borrowings at period-end were **216,163,894.33 Yuan**[422](index=422&type=chunk)[439](index=439&type=chunk) - Operating revenue was **1,206,223,590.12 Yuan**, and operating cost was **1,072,761,512.76 Yuan**[455](index=455&type=chunk) - Net cash flow from operating activities was **-119,427,807.23 Yuan**[484](index=484&type=chunk) [R&D Expenses](index=163&type=section&id=VIII.%20R%26D%20Expenses) During the reporting period, the company's total R&D investment was 32,598,833.16 Yuan, all expensed, primarily including direct input, personnel costs, depreciation, and amortization R&D Expenses by Nature of Expense | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Direct Input | 20,443,302.60 | 14,831,278.89 | | Personnel Costs | 7,508,217.71 | 6,922,760.29 | | Depreciation and Amortization of Long-Term Expenses | 3,744,154.88 | 3,820,874.86 | | Share-Based Payments | 326,229.99 | 251,523.60 | | Entrusted Development Fees | 155,000.00 | 1,598,490.57 | | Other Expenses | 421,927.98 | 281,680.30 | | Total | 32,598,833.16 | 27,706,608.51 | | Of which: Expensed R&D Investment | 32,598,833.16 | 27,706,608.51 | [Changes in Consolidation Scope](index=164&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company established four new subsidiaries, including Huaguang (Hong Kong) Holdings Co., Ltd., and included them in the scope of consolidation - During the reporting period, the company established **four new subsidiaries**, including Huaguang (Hong Kong) Holdings Co., Ltd., and included them in the scope of consolidation[496](index=496&type=chunk) [Interests in Other Entities](index=165&type=section&id=X.%20Interests%20in%20Other%20Entities) Discloses the company's interests in subsidiaries, including wholly-owned subsidiaries like Hangzhou Fujing Welding Technology Co., Ltd. and Fuhui International Trading Co., Ltd., as well as the book value of investment and share of net profit in associate Guangdong Hoer Laser Technology Co., Ltd Composition of the Enterprise Group | Subsidiary Name | Registered Place | Business Nature | Shareholding (%) Direct | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Hangzhou Fujing Welding Technology Co., Ltd. | Hangzhou | Commodity Trading | 100.00 | Direct Establishment | | Fuhui International Trading Co., Ltd. | Hong Kong | Commodity Trading | 100.00 | Direct Establishment | | Huaguang (Hong Kong) Holdings Co., Ltd. | Hong Kong | Investment Management | 100.00 | Direct Establishment | Summarized Financial Information of Insignificant Joint Ventures and Associates | Item | Period End Balance/Current Period Amount (Yuan) | Beginning Balance/Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Book Value of Investment in Associates | 4,337,287.82 | 4,420,350.75 | | Net Profit of Associates | -83,062.93 | -204,352.63 | [Government Grants](index=168&type=section&id=XI.%20Government%20Grants) During the reporting period, government grants in deferred income had a period-end balance of 18,199,796.79 Yuan, with 4,646,900.00 Yuan added in the current period and 2,672,928.29 Yuan transferred to other income. Total government grants recognized in current profit/loss amounted to 5,810,330.85 Yuan Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (Yuan) | New Grants in Current Period (Yuan) | Transferred to Other Income in Current Period (Yuan) | Period End Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Government Grants | 16,225,825.08 | 4,646,900.00 | 2,672,928.29 | 18,199,796.79 | Asset-related and Income-related | Government Grants Recognized in Current Profit/Loss | Type | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Asset-related | 1,262,150.78 | 1,015,052.16 | | Income-related | 4,548,180.07 | 1,726,218.97 | | Total | 5,810,330.85 | 2,741,271.13 | [Risks Related to Financial Instruments](index=168&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company faces credit risk, market risk (foreign exchange risk, interest rate risk, other price risks), and liquidity risk. These risks are managed through a risk management framework, policies, and diversified investments, with hedging activities undertaken to manage raw material price fluctuation risks - The company's main financial instrument risks include credit risk, market risk (foreign exchange risk, interest rate risk, other price risks), and liquidity risk[505](index=505&type=chunk) - Within market risk, foreign exchange risk primarily arises from financial assets and liabilities denominated in USD, KRW, JPY, EUR, and HKD; interest rate risk is mainly associated with floating-rate borrowings; there are no other price risks[506](index=506&type=chunk)[507](index=507&type=chunk) - Credit risk primarily arises from bank deposits and receivables, managed by assessing debtor creditworthiness, setting credit limits, and regular monitoring[507](index=507&type=chunk)[509](index=509&type=chunk) - Liquidity risk is managed by monitoring cash balances, marketable securities, and cash flow forecasts, and by mitigating cash flow pressure through supplier financing arrangements[512](index=512&type=chunk)[513](index=513&type=chunk) - The company conducts hedging activities, primarily managing the price fluctuation risk of anticipated future silver purchases through commodity futures contracts, applying cash flow hedge accounting[518](index=518&type=chunk)[519](index=519&type=chunk) Analysis of Financial Liabilities and Off-Balance Sheet Guarantees by Undiscounted Remaining Contractual Cash Flow Maturity (Period End) | Item | Within One Year (Yuan) | One to Two Years (Yuan) | Two to Three Years (Yuan) | Over Three Years (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Short-Term Borrowings | 553,520,741.55 | - | - | - | 553,520,741.55 | | Notes Payable | 368,649,029.59 | - | - | - | 368,649,029.59 | | Accounts Payable | 107,842,023.20 | - | - | - | 107,842,023.20 | | Other Payables | 18,078,086.81 | - | - | - | 18,078,086.81 | | Other Current Liabilities | 13,075,388.47 | - | - | - | 13,075,388.47 | | Long-Term Borrowings (Including Non-Current Liabilities Due Within One Year) | 224,366,494.41 | 172,163,894.33 | 44,000,000.00 | - | 440,530,388.74 | | Total Financial Liabilities and Contingent Liabilities | 1,285,531,764.03 | 172,163,894.33 | 44,000,000.00 | - | 1,501,695,658.36 | - As of June 30, 2025, the company's **asset-liability ratio was 57.70%** (December 31, 2024: 58.02%)[516](index=516&type=chunk) Financial Asset Transfer Status | Transfer Method | Nature of Transferred Financial Assets | Amount of Transferred Financial Assets (Yuan) | Derecognition Status | Basis for Derecognition Judgment | | :--- | :--- | :--- | :--- | :--- | | Endorsement and Discounting | Notes Receivable | 135,232,034.90 | Not Derecognized | Significant credit risk and deferred payment risk, with primary risks and rewards of ownership not transferred | | Endorsement and Discounting | Notes Receivable Financing | 265,645,437.82 | Derecognized | High credit rating, minimal credit risk and deferred payment risk, with primary risks and rewards of ownership transferred | Financial Assets Derecognized Due to Transfer | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets (Yuan) | Gains or Losses Related to Derecognition (Yuan) | | :--- | :--- | :--- | :--- | | Notes Receivable Financing | Endorsement and Discounting | 265,645,437.82 | -482,818.32 | [Fair Value Disclosures](index=174&type=section&id=XIII.%20Fair%20Value%20Disclosures) Discloses the period-end fair values of the company's assets and liabilities measured at fair value, primarily including other equity instrument investments and notes receivable financing. Notes receivable financing uses face value to determine fair value, while other equity instrument investments use investment cost as a reasonable estimate of fair value Period End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (Yuan) | Level 2 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | - | - | 7,000,000.00 | 7,000,000.00 | | Notes Receivable Financing | - | 83,367,867.30 | - | 83,367,867.30 | | Total Assets Continuously Measured at Fair Value | - | 83,367,867.30 | 7,000,000.00 | 90,367,867.30 | - For trading financial assets and liabilities with active market prices, their fair value is determined by the closing price and market value revaluation at the balance sheet date[528](index=528&type=chunk) - Notes receivable financing uses its face value to determine fair value due to its short remaining maturity[529](index=529&type=chunk) - Other equity instrument investments use their investment cost as a reasonable estimate of fair value because there have been no significant changes in the operating environment or financial condition of the investee[530](index=530&type=chunk) - The carrying amounts of financial assets and liabilities not measured at fair value (such as cash and bank balances, notes receivable, borrowings, etc.) differ minimally from their fair values[531](index=531&type=chunk) [Related Parties and Related-Party Transactions](index=176&type=section&id=XIV.%20Related%20Parties%20and%20Related-Party%20Transactions) Discloses the company's main subsidiaries, other related parties (e.g., Hangzhou Huaguang Investment Co., Ltd., Wang Xiaorong, Huang Weiqing), and related-party transactions during the reporting period, including purchases of goods, related-party leases, and related-party guarantees Main Subsidiaries of the Company | Subsidiary Name | Registered Capital | Registered Place | Business Nature | Shareholding (%) Direct | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Fujing Welding Technology Co., Ltd. | RMB 3.2 Million | Hangzhou | Commodity Trading | 100.00 | Direct Establishment | | Fuhui International Trading Co., Ltd. | HKD 1 Million | Hong Kong | Commodity Trading |